JUNIPER NETWORKS INC, 10-K filed on 2/20/2015
Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Feb. 13, 2015
Jun. 30, 2014
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
JUNIPER NETWORKS INC 
 
 
Entity Central Index Key
0001043604 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2014 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
406,988,819 
 
Entity Public Float
 
 
$ 11,331 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net revenues:
 
 
 
Product
$ 3,408.7 
$ 3,519.9 
$ 3,262.1 
Service
1,218.4 
1,149.2 
1,103.3 
Total net revenues
4,627.1 
4,669.1 
4,365.4 
Cost of revenues:
 
 
 
Product
1,286.8 
1,276.6 
1,204.0 
Service
482.1 
451.1 
452.6 
Total cost of revenues
1,768.9 
1,727.7 
1,656.6 
Gross margin
2,858.2 
2,941.4 
2,708.8 
Operating expenses:
 
 
 
Research and development
1,006.2 
1,043.2 
1,101.6 
Sales and marketing
1,023.6 
1,075.9 
1,045.5 
General and administrative
231.1 
217.3 
206.8 
Restructuring and other charges
167.0 
39.1 
46.8 
Impairment of goodwill
850.0 
Total operating expenses
3,277.9 
2,375.5 
2,400.7 
Operating (loss) income
(419.7)
565.9 
308.1 
Other income (expense), net
333.4 
(40.4)
(16.6)
(Loss) income before income taxes
(86.3)
525.5 
291.5 
Income tax provision
248.0 
85.7 
105.0 
Net (loss) income
$ (334.3)
$ 439.8 
$ 186.5 
Net (loss) income per share:
 
 
 
Basic (in dollars per share)
$ (0.73)
$ 0.88 
$ 0.36 
Diluted (in dollars per share)
$ (0.73)
$ 0.86 
$ 0.35 
Shares used in computing net income per share:
 
 
 
Basic (in shares)
457.4 
501.8 
520.9 
Diluted (in shares)
457.4 
510.3 
526.2 
Cash dividends declared per common stock (in dollars per share)
$ 0.20 
$ 0 
$ 0 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Net (loss) income
$ (334.3)
$ 439.8 
$ 186.5 
Available-for-sale securities:
 
 
 
Unrealized gains on available-for-sale securities, net of tax provision of ($29.5), ($37.9) and ($0.6) for 2014, 2013 and 2012, respectively
48.7 
65.1 
3.2 
Reclassification adjustment for realized net gains on available-for- sale securities included in net (loss) income, net of tax provision of $61.8, $0.4 and $0.2 for 2014, 2013 and 2012, respectively
(106.5)
(1.0)
(1.2)
Net change in unrealized gains on available-for-sale securities, net of taxes
(57.8)
64.1 
2.0 
Cash flow hedges:
 
 
 
Unrealized (losses) gains on cash flow hedges, net of tax (provision) benefit of ($0.7), $1.7 and $0.2 for 2014, 2013 and 2012, respectively
(4.1)
0.7 
7.4 
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net (loss) income, net of tax provision (benefit) of $1.1, ($0.8) and ($1.0) for 2014, 2013 and 2012, respectively
(2.3)
(1.5)
6.5 
Net change in unrealized (losses) gains on cash flow hedges, net of taxes
(6.4)
(0.8)
13.9 
Change in foreign currency translation adjustments
(14.2)
(3.4)
6.4 
Other comprehensive (loss) income, net of tax
(78.4)
59.9 
22.3 
Comprehensive (loss) income
$ (412.7)
$ 499.7 
$ 208.8 
Consolidated Statements of Comprehensive Income Parenthetical (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Tax provision on change in unrealized gains on available-for-sale securities
$ (29.5)
$ (37.9)
$ (0.6)
Tax provision on reclassification adjustment for realized net gains on available-for-sale securities included in net income
61.8 
0.4 
0.2 
Tax benefit on change in unrealized gains (losses) on cash flow hedges
(0.7)
1.7 
0.2 
Tax benefit on reclassification adjustment for realized losses (gains) included in net income
$ 1.1 
$ (0.8)
$ (1.0)
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 1,639.6 
$ 2,284.0 
Short-term investments
332.2 
561.9 
Accounts receivable, net of allowance for doubtful accounts of $4.7 and $5.4 as of December 31, 2014 and 2013, respectively
598.9 
578.3 
Deferred tax assets, net
147.0 
79.8 
Prepaid expenses and other current assets
254.2 
199.9 
Total current assets
2,971.9 
3,703.9 
Property and equipment, net
904.3 
882.3 
Long-term investments
1,133.1 
1,251.9 
Restricted cash and investments
46.0 
89.5 
Purchased intangible assets, net
62.4 
106.9 
Goodwill
2,981.5 
4,057.7 
Other long-term assets
303.9 
233.8 
Total assets
8,403.1 
10,326.0 
Current liabilities:
 
 
Accounts payable
234.6 
200.4 
Accrued compensation
225.0 
273.9 
Deferred revenue
780.8 
705.8 
Other accrued liabilities
287.3 
261.3 
Total current liabilities
1,527.7 
1,441.4 
Long-term debt
1,349.0 
999.3 
Long-term deferred revenue
294.9 
363.5 
Long-term income tax payable
177.5 
114.4 
Other long-term liabilities
134.9 
105.2 
Total liabilities
3,484.0 
3,023.8 
Commitments and contingencies (Note 16)
   
   
Juniper Networks 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; 416.2 shares and 495.2 shares issued and outstanding as of December 31, 2014 and 2013, respectively
Additional paid-in capital
8,794.0 
9,868.9 
Accumulated other comprehensive (loss) income
(13.8)
64.6 
Accumulated deficit
(3,861.1)
(2,631.3)
Total stockholders' equity
4,919.1 
7,302.2 
Total liabilities and stockholders' equity
$ 8,403.1 
$ 10,326.0 
Consolidated Balance Sheets Parentheticals (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Consolidated Balance Sheet Parenthetical [Abstract]
 
 
Convertible preferred stock - par value
$ 0.00001 
$ 0.00001 
Convertible preferred stock - shares authorized
10,000,000 
10,000,000 
Convertible preferred stock - issued
Convertible preferred stock - outstanding
Common stock - par value
$ 0.00001 
$ 0.00001 
Common stock - shares authorized
1,000,000,000 
1,000,000,000 
Common stock - issued
416,200,000 
495,200,000 
Common stock - outstanding
416,200,000 
495,200,000 
Allowance for doubtful accounts receivable, current
$ 4.7 
$ 5.4 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net (loss) income
$ (334.3)
$ 439.8 
$ 186.5 
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
 
 
 
Share-based compensation expense
240.0 
244.6 
242.7 
Depreciation, amortization, and accretion
186.1 
189.9 
187.9 
Restructuring and other charges
208.5 
47.5 
99.7 
Deferred income taxes
(16.9)
72.2 
(18.2)
Impairment of goodwill
850.0 
Gain on sale of Junos Pulse
(19.6)
(Gain) loss on investments, net
(167.9)
(11.3)
(26.7)
Gain on legal settlement, net
(121.1)
Excess tax benefits from share-based compensation
(9.4)
(1.9)
(7.2)
Loss on disposal of fixed assets
1.7 
1.4 
0.6 
Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
 
Accounts receivable, net
(16.8)
(139.9)
139.1 
Prepaid expenses and other assets
(24.5)
(126.0)
(11.4)
Accounts payable
38.3 
(8.9)
(133.6)
Accrued compensation
(46.0)
(5.4)
54.8 
Income tax payable
51.0 
(38.5)
(7.5)
Other accrued liabilities
(100.8)
36.5 
(15.4)
Deferred revenue
45.1 
145.9 
(53.6)
Net cash provided by operating activities
763.4 
845.9 
637.7 
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(192.9)
(230.0)
(347.7)
Proceeds from Divestiture of Businesses
105.7 
Purchases of available-for-sale investments
(2,440.7)
(1,776.0)
(1,496.5)
Proceeds from sales of available-for-sale investments
2,627.7 
1,167.2 
894.2 
Proceeds from maturities of available-for-sale investments
337.6 
334.6 
559.7 
Purchases of trading investments
(4.1)
(3.7)
(4.1)
Proceeds from the sales of privately-held investments
4.9 
9.4 
36.5 
Purchases of privately-held investments
(21.7)
(41.3)
(12.2)
Payment for business acquisitions, net of cash and cash equivalents acquired
(27.1)
(10.0)
(139.4)
Purchase of licensed software
(10.0)
(65.3)
Changes in restricted cash
44.6 
(1.2)
(20.8)
Net cash used in investing activities
434.0 
(561.0)
(595.6)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of common stock
159.8 
141.7 
99.1 
Purchases and retirement of common stock
(2,262.5)
(577.8)
(650.6)
Issuance of long-term debt, net
346.5 
Payment for capital lease obligation
(0.4)
(1.4)
(1.4)
Customer financing arrangements
9.0 
33.9 
(2.6)
Excess tax benefits from share-based compensation
9.4 
1.9 
7.2 
Payment of cash dividends
(86.0)
Net cash (used in) provided by financing activities
(1,824.2)
(401.7)
(548.3)
Effect of foreign currency exchange rates on cash and cash equivalents
(17.6)
(7.0)
3.6 
Net (decrease) increase in cash and cash equivalents
(644.4)
(123.8)
(502.6)
Cash and cash equivalents at beginning of period
2,284.0 
2,407.8 
2,910.4 
Cash and cash equivalents at end of period
1,639.6 
2,284.0 
2,407.8 
Supplemental disclosures of cash flow information:
 
 
 
Cash paid for interest, net of amounts capitalized
44.9 
57.4 
50.1 
Cash paid (received) for income taxes, net
206.0 
105.1 
118.7 
Non-cash investing activities:
 
 
 
Receipt of a promissory note in connection with the sale of Junos Pulse
125.0 
Issuance of common stock and equity awards assumed in business acquisitions
16.5 
Property and equipment acquired under capital lease
3.7 
Licensed software acquired
$ 0 
$ 0 
$ 19.0 
Consolidated Statements of Changes in Stockholders' Equity (USD $)
In Millions, unless otherwise specified
Total
USD ($)
Common Stock [Member]
Additional Paid-In Capital [Member]
USD ($)
Accumulated Other Comprehensive Income (Loss) [Member]
USD ($)
Accumulated Deficit [Member]
USD ($)
Noncontrolling Interest [Member]
USD ($)
Stockholders' equity, Beginning balance at Dec. 31, 2011
$ 7,089.7 
 
$ 10,079.2 
$ (17.6)
$ (2,972.4)
$ 0.5 
Number of shares, Beginning balance at Dec. 31, 2011
 
526.4 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Consolidated net income (loss)
186.5 
 
 
 
186.5 
 
Other comprehensive income (loss), net
22.3 
 
 
22.3 
 
 
Shares issued in connection with share-based compensation (in number of shares)
 
12.2 
 
 
 
 
Shares issued in connection with share-based compensation
99.2 
 
99.2 
 
 
 
Shares assumed In connection with business acquisition, shares (in number of shares)
 
5.8 
 
 
 
 
Shares assumed in connection with business acquisitions
16.5 
 
16.5 
 
 
 
Repurchase and retirement of common stock and net issuances (in number of shares)
 
(36.0)
 
 
 
 
Repurchase and retirement of common stock and net issuances
(650.6)
 
(525.1)
 
(125.5)
 
Share-based compensation expense
242.7 
 
242.7 
 
 
 
Tax benefit from employee stock option plans
(6.8)
 
(6.8)
 
 
 
Stockholders' equity, Ending balance at Dec. 31, 2012
6,999.5 
 
9,905.7 
4.7 
(2,911.4)
0.5 
Number of shares, Ending balance at Dec. 31, 2012
 
508.4 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Consolidated net income (loss)
439.8 
 
 
 
439.8 
 
Other comprehensive income (loss), net
59.9 
 
 
59.9 
 
 
Shares issued in connection with share-based compensation (in number of shares)
 
16.0 
 
 
 
 
Shares issued in connection with share-based compensation
142.2 
 
142.2 
 
 
 
Dissolution of non-controlling interest
(0.5)
 
 
 
 
(0.5)
Repurchase and retirement of common stock and net issuances (in number of shares)
 
(29.2)
 
 
 
 
Repurchase and retirement of common stock and net issuances
(577.8)
 
(418.1)
 
(159.7)
 
Share-based compensation expense
244.9 
 
244.9 
 
 
 
Tax benefit from employee stock option plans
(5.8)
 
(5.8)
 
 
 
Stockholders' equity, Ending balance at Dec. 31, 2013
7,302.2 
 
9,868.9 
64.6 
(2,631.3)
Number of shares, Ending balance at Dec. 31, 2013
 
495.2 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Consolidated net income (loss)
(334.3)
 
 
 
(334.3)
 
Other comprehensive income (loss), net
(78.4)
 
 
(78.4)
 
 
Shares issued in connection with share-based compensation (in number of shares)
 
17.7 
 
 
 
 
Shares issued in connection with share-based compensation
159.1 
 
159.1 
 
 
 
Repurchase and retirement of common stock and net issuances (in number of shares)
 
(96.7)
 
 
 
 
Repurchase and retirement of common stock and net issuances
(2,262.5)
 
(1,367.0)
 
(895.5)
 
Share-based compensation expense
240.0 
 
240.0 
 
 
 
Tax benefit from employee stock option plans
(21.0)
 
(21.0)
 
 
 
Payment of cash dividends
(86.0)
 
(86.0)
 
 
 
Stockholders' equity, Ending balance at Dec. 31, 2014
$ 4,919.1 
 
$ 8,794.0 
$ (13.8)
$ (3,861.1)
$ 0 
Number of shares, Ending balance at Dec. 31, 2014
 
416.2 
 
 
 
 
Description of Business and Basis of Presentation (Notes)
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation

Description of Business

Juniper Networks, Inc. (the “Company” or “Juniper”) designs, develops, and sells products and services for high-performance networks, to enable customers to build scalable, reliable, secure and cost-effective networks for their businesses, while achieving agility, efficiency and value through automation. The Company serves the high-performance networking requirements for global service providers, cloud environments, enterprises, governments, and research and public sector organizations that view the network as critical to their success. In addition to the Company's products, the Company offers technical support and professional services, as well as education and training programs to its customers. Together, the high-performance product and service offerings help the Company's customers convert legacy networks that provide commoditized services into more valuable assets that provide differentiation, value, and increased performance, reliability, and security to end-users.

Basis of Presentation

The Consolidated Financial Statements, which include the Company and its wholly-owned subsidiaries, are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All intercompany balances and transactions have been eliminated. Certain amounts in the prior years' Consolidated Financial Statements have been reclassified to conform to the current year presentation.

In 2014, the Company realigned its organization into a One-Juniper structure which includes consolidating each of the Company's research and development ("R&D") and go-to-market functions to reduce complexity, increase clarity of responsibilities, and improve efficiency. As a result of these changes, the Company's consolidated business is considered to be one reportable segment. In fiscal 2013, the Company operated under two reportable segments: Platform Systems Division ("PSD") and Software Solutions Division ("SSD"). This change did not impact previously reported consolidated results of operations. See Note 13, Segments, for further discussion of the Company's segment reorganization.
Significant Accounting Policies (Notes)
Significant Accounting Policies
Significant Accounting Policies

Use of Estimates

The preparation of the financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent there are material differences between the Company's estimates and the actual results, the Company's future consolidated results of operation may be affected.

Cash, Cash Equivalents and Investments

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, demand deposits with banks, highly liquid investments in money market funds, commercial paper, government securities, certificates of deposit, and corporate debt securities, which are readily convertible into cash. All highly liquid investments purchased with original maturities of three months or less are classified as cash and cash equivalents.

Investments in Available-for-Sale and Trading Securities

The Company's investments in publicly-traded debt and equity securities are classified as available-for-sale. Available-for-sale investments are initially recorded at cost and periodically adjusted to fair value in the Consolidated Balance Sheets. Unrealized gains and losses on these investments are reported as a separate component of accumulated other comprehensive income. Realized gains and losses are determined based on the specific identification method and are reported in the Consolidated Statements of Operations.

The Company periodically evaluates its investments to determine if impairment charges are required. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time the investment has been in a loss position, the extent to which the fair value has been less than the Company's cost basis, the investment's financial condition, and near-term prospects of the investee. If the Company determines that the decline in an investment's fair value is other than temporary, the difference is recognized as an impairment loss in its Consolidated Statements of Operations. The Company's non-qualified compensation plan is invested in mutual funds which are classified as trading securities and reported at fair value in the Consolidated Balance Sheets. The realized and unrealized holding gains and losses are reported in the Consolidated Statements of Operations.

Privately-Held Investments

The Company has privately-held investments, which are included in other long-term assets in the Consolidated Balance Sheets. These investments include debt and redeemable preferred stock securities that are carried at fair value, and non-redeemable preferred stock securities that are carried at cost. The investments carried at cost are adjusted for any impairment, as the Company does not have a controlling interest and does not have the ability to exercise significant influence over these companies. These investments are inherently high risk as the market for technologies or products manufactured by these companies are usually in their early stages at the time of the investment by the Company and such markets may never be significant. The Company measures the fair value of privately-held investments using an analysis of the financial conditions and near term prospects of the investees, including recent financing activities and their capital structure. Realized gains and losses, if any, are reported in the Consolidated Statements of Operations.

Fair Value

Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it transacts, and considers assumptions that market participants would use when pricing the asset or liability. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. These inputs are valued using market based approaches.

Level 3 – Inputs are unobservable inputs based on the Company’s assumptions. These inputs, if any, are valued using internal financial models.

Derivatives

The Company uses derivatives to partially offset its market exposure to fluctuations in certain foreign currencies. The Company does not enter into derivatives for speculative or trading purposes.

The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to operating expenses. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of one year or less. These derivatives are carried at fair value and the effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income, and upon occurrence of the forecasted transaction, is subsequently reclassified into the costs of services or operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments in other income (expense), net, on its Consolidated Statements of Operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income are expected to be reclassified into earnings within the next twelve months.

The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the remeasurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives are carried at fair value with changes recorded in other income (expense), net in the Consolidated Statements of Operations. Changes in the fair value of these derivatives are largely offset by remeasurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. These foreign exchange forward contracts have maturities of one year or less.

Inventory
Inventory consists primarily of component parts to be used in the manufacturing process and finished goods in-transit, and is stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. A charge is recorded to cost of product when inventory is determined to be in excess of anticipated demand or considered obsolete. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in the newly established cost basis.

Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method, over the estimated useful lives of the following assets:
 
Estimated Useful Life (years)
Computers, equipment, and software
3 to 7
Furniture and fixtures
5
Building and building improvements
7 to 40
Land improvements
5 to 40
Leasehold improvements
Lease term, not to exceed 10 years


Construction in progress is related to the construction or development of property and equipment that have not yet been placed in service for their intended use. Depreciation for equipment commences once it is placed in service and depreciation for buildings and leasehold improvements commences once they are ready for their intended use.

Goodwill and Other Long-Lived Assets

Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition that are not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Goodwill is tested for impairment annually during the fourth quarter or more frequently if certain circumstances change that would more likely than not indicate that the fair value of a reporting unit is below its carrying value. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the asset's implied fair value. Other intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized but are assessed for potential impairment annually or when events or circumstances indicate that their carrying amounts might be impaired.

Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset, or asset group, to estimated undiscounted future cash flows expected to be generated by the asset, or asset group. An impairment charge is recognized by the amount by which the carrying amount of the asset, or asset group, exceeds its fair value.

The Company amortizes intangible assets with estimable useful lives on a straight-line basis over their useful lives.

Revenue Recognition

Revenue is recognized when all of the following criteria have been met:

Persuasive evidence of an arrangement exists. The Company generally relies upon sales contracts or agreements, and customer purchase orders to determine the existence of an arrangement.

Delivery has occurred. The Company uses shipping terms and related documents, or written evidence of customer acceptance, when applicable, to verify delivery or performance.

Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment.

Collectability is reasonably assured. The Company assesses collectability based on creditworthiness of customers as determined by its credit checks, their payment histories, or changes in circumstances that indicate that collectability is not reasonably assured.

When sales arrangements contain multiple elements the Company allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on either vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“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 largely interchangeable competitor products or services in stand-alone sales to similar 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 third-party products with similar functionality typically cannot be obtained and therefore TPE is not used. ESP is established considering multiple factors including, but not limited to pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles.

In multiple element arrangements where software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the residual method when VSOE of fair value of the undelivered items exists. Under the residual method, the amount of revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. If VSOE of one or more undelivered items does not exist, revenue from the entire arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless maintenance services is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the maintenance service period.

The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or subject to customer-specific return or refund privileges.

The Company records reductions to revenue for estimated product returns and pricing adjustments, such as rebates and price protection, in the same period that the related revenue is recorded. The amount of these reductions is based on historical sales returns and price protection credits, specific criteria outlined in rebate agreements, and other factors known at the time.

A portion of the Company's sales is made through distributors under agreements allowing for pricing credits or rights of return. As reliable estimates of these credits or returns cannot be made, product revenue on sales made through these distributors is recognized upon sell-through as reported by the distributors to the Company. Deferred revenue on shipments to distributors reflects the effects of distributor pricing credits given and the amount of gross margin expected to be realized upon sell-through. Deferred revenue is recorded net of the related product costs of revenue.

Service revenues include revenue from maintenance, training, and professional services. Maintenance is offered under renewable contracts. Revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period, which is generally one to three years. Revenue from training and professional services is recognized as services are completed or ratably over the contractual period, which is generally one year or less.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based on the Company's assessment of the collectability of customer accounts. The Company regularly reviews its receivables that remain outstanding past their applicable payment terms and establishes an allowance by considering factors such as historical experience, credit quality, and age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay.

Warranty Reserves

The Company generally offers a one-year warranty on most of its hardware products, and a 90-day warranty on the media that contains the software embedded in the products. Warranty costs are recognized as part of the Company's cost of sales based on associated material costs, logistics costs, labor costs, and overhead at the time revenue is recognized. Material costs are estimated primarily based upon the historical costs to repair or replace product returns within the warranty period. Labor, logistics and overhead costs are estimated primarily based upon historical trends in the cost to support customer cases within the warranty period.

Contract Manufacturer Liabilities

The Company establishes a liability for non-cancelable, non-returnable purchase commitments with its contract manufacturers for carrying charges, quantities in excess of its demand forecasts, or obsolete material charges for components purchased by the contract manufacturers to meet the Company’s demand forecast or customer orders. The demand forecasts are based upon historical trends and analysis from the Company's sales and marketing organizations, adjusted for overall market conditions.

Research and Development

Costs to research, design, and develop the Company's products are expensed as incurred.

Software Development Costs

Capitalization of software development costs for software to be sold, leased, or otherwise marketed begins when a product's technological feasibility has been established and ends when a product is available for general release to customers. Generally, the Company's products are released soon after technological feasibility has been established. As a result, costs incurred between achieving technological feasibility and product general availability have not been significant.

The Company capitalizes costs associated with internal-use software systems that have reached the application development stage and are primarily attributable to the Company's enterprise resource planning ("ERP") implementation. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related costs for employees, who are directly associated with the development of the applications.

Advertising

Advertising costs are charged to sales and marketing expense as incurred. Advertising expense was $19.2 million, $20.1 million, and $20.0 million, for 2014, 2013, and 2012, respectively.

Foreign Currency

Assets and liabilities of foreign operations with non-U.S. Dollar functional currency are translated to U.S. Dollars using exchange rates in effect at the end of the period. Revenue and expenses are translated to U.S. Dollars using average exchange rates for the period. The resulting translation adjustments are included in the Company’s Consolidated Balance Sheets in the stockholders’ equity section as a component of accumulated other comprehensive income. For the Company’s international subsidiaries in which the functional currency is the U.S. dollar, the Company records foreign exchange gains and losses for assets and liabilities denominated in non-US dollar currencies. These remeasurement adjustments are recorded in other income (expense), net in the Consolidated Statements of Operations.

Loss Contingencies

The Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. Management considers the likelihood of loss related to an asset, or the incurrence of a liability, as well as its ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to determine whether such accruals should be adjusted and whether new accruals are required.

Share-Based Compensation

The Company measures and recognizes compensation cost for all share-based awards made to employees and directors, including employee stock options, stock awards, stock units, and employee stock purchases related to the Employee Stock Purchase Plan ("ESPP"). Share-based compensation expense is based on the fair value of the underlying awards and amortized on a straight-line basis, net of estimated forfeitures.

The Company utilizes the Black-Scholes-Merton (“BSM”) option-pricing model to estimate the fair value of its stock options and Employee Stock Purchase Plan ("ESPP") shares. The BSM model requires various highly subjective assumptions that represent management's best estimates of volatility, risk-free interest rate, expected life, and dividend yield. The Company estimates expected volatility based on the implied volatility of market-traded options, on the Company's common stock, adjusted for other relevant factors including historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options and ESPP. The expected life of a stock option is based on historical experience of employee exercises and post-vesting termination behavior as well as the potential effect from options that have not been exercised. The expected life of ESPP approximates the offering period.

The Company determines the fair value of its restricted stock units ("RSUs"), restricted stock awards ("RSAs"), and performance share awards ("PSAs") based on the closing market price of the Company’s common stock on the date of grant, adjusted by the present value of the expected dividend.

For market-based RSUs, the Company estimates the fair value and derived service period using the Monte Carlo simulation option pricing model ("Monte Carlo model"). The determination of the grant date fair value and derived service periods using the Monte Carlo model is affected by our stock price as well as various highly subjective assumptions that represent management's best estimates of volatility, risk-free interest rate, and dividend yield. The Company estimates expected volatility based on the implied volatility of market-traded options, on the Company's common stock, adjusted for other relevant factors including historical volatility of the Company’s common stock over the contractual life of the Company's market-based RSUs.

Provision for Income Taxes

Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized.
The Company accounts for uncertainty in income taxes using a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.

Concentrations of Risk

Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company invests only in high-quality credit instruments and maintains its cash, cash equivalents and available-for-sale investments in fixed income securities with several high-quality institutions. Deposits held with banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and, therefore, bear minimal credit risk.

The Company’s derivatives expose it to credit risk to the extent that counterparties may be unable to meet the terms of the agreement. To mitigate concentration of risk related to its derivatives, the Company establishes counterparty limits to major credit-worthy financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored and the derivatives transacted with these entities are relatively short in duration. Therefore, the Company does not expect material losses as a result of defaults by counterparties.

Generally, credit risk with respect to accounts receivable is diversified due to the number of entities comprising the Company's customer base and their dispersion across different geographic locations throughout the world. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. During the years ended December 31, 2014 and December 31, 2013, no single customer accounted for 10% or more of net revenues. During the year ended December 31, 2012, Verizon Communications, Inc. ("Verizon") accounted for 10.3% of net revenues.

The Company relies on sole suppliers for certain of its components such as application-specific integrated circuits ("ASICs") and custom sheet metal. Additionally, the Company relies primarily on a limited number of significant independent contract manufacturers and outside design manufacturers for the production of its products. The inability of any supplier or manufacturer to fulfill supply requirements of the Company could negatively impact future operating results.

Recent Accounting Pronouncements

In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01 (Subtopic 225-20) - Income Statement - Extraordinary and Unusual Items, which eliminates the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In December 2014, the FASB issued ASU No. 2014-17 (Topic 805) - Business Combinations, which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. ASU 2014-17 is effective on November 18, 2014. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In November 2014, the FASB issued ASU No. 2014-16 (Topic 815) - Derivatives and Hedging, which provides clarification on how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features in evaluating the host contract and that no single term or feature would necessarily determine the economic characteristics and risks of the host contract ASU 2014-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendment should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the year for which the amendments are effective. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements.

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15 (Subtopic 205-40) - Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ("ASU 2014-15") which provides guidance about management's responsibility to evaluate whether or not there is substantial doubt about the Company's ability to continue as a going concern and to provide related footnote disclosure. ASU 2014-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early application is permitted. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In June 2014, the FASB issued ASU No. 2014-12 (Topic 718) - Compensation - Stock Compensation ("ASU 2014-12") which provides guidance that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period is a performance condition. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost for such an award would be recognized over the required service period, if it is probable that the performance condition will be achieved. ASU 2014-12 is effective for all entities for annual periods beginning after December 15, 2015 and interim periods within those annual periods. ASU 2014-12 should be applied on a prospective basis to awards that are granted or modified on or after the effective date. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers ("ASU 2014-09") which provides guidance for revenue recognition. This ASU affects all contracts that the Company enters into with customers to transfer goods and services or for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard's core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so, the Company will need to use additional judgment and estimates than under the existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. Accordingly, the ASU will be effective for the Company beginning fiscal year 2017. The Company is currently evaluating the impact of the adoption on its Consolidated Financial Statements.

In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08") which raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Company has determined that this pronouncement would not have a material impact on the Company's financial position or results of operations.
Business Combinations (Notes)
Business Combinations
Business Combinations

The Company's Consolidated Financial Statements include the operating results of acquired businesses from the date of each acquisition. Pro forma results of operations for these acquisitions have not been presented as the financial impact to the Company's consolidated results of operations, both individually and in aggregate, is not material. Additional information, if any, existing as of the acquisition dates but unknown to the Company may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded.

The Company completed one business combination in 2014, one business combination in 2013, and three business combinations in 2012 for cash consideration including the fair value of vested share-based awards assumed, if any, of approximately $28.7 million, $10.0 million, and $187.3 million, respectively.

The following table presents the purchase consideration allocations for these acquisitions based upon acquisition-date fair values, including cash and cash equivalents acquired (in millions):
 
2014 Acquisitions
 
2013 Acquisitions
 
2012 Acquisitions
Net tangible assets acquired
$

 
$
0.1

 
$
3.5

Net liabilities acquired
(2.7
)
 

 

Intangible assets acquired
17.8

 
9.9

 
54.1

Goodwill
13.6

 

 
129.7

    Total
$
28.7

 
$
10.0

 
$
187.3



The goodwill recognized for the 2014 and 2012 acquisitions was primarily attributable to expected synergies and was not deductible for U.S. federal income tax purposes.

2014 Acquisition

On January 7, 2014, the Company acquired 100% of the equity securities of WANDL, Inc. ("WANDL"), for $28.7 million of cash and stock consideration. WANDL, a provider of software solutions for advanced planning, management, design and optimization of next-generation multi-layer networks, provides the Company with technology and experience in traffic engineering, multi-layer optimization and path computation to help service provider customers optimize the performance and cost of their networks.

Under the terms of the purchase agreement, the Company assumed share-based awards for employees with a fair value of $34.9 million, which were granted in contemplation of future services and will be expensed as share-based compensation over the remaining service period.

Intangible Assets Acquired

The following table presents details of the Company's intangible assets acquired through the business combination completed during the twelve months ended December 31, 2014 (in millions, except years):
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
Existing technology
7
 
$
10.7

Customer relationships
7
 
6.0

Trade name
4
 
0.6

Backlog
1
 
0.2

Non-compete agreements
2
 
0.3

Total
7
 
$
17.8



2013 Acquisition

During 2013, the Company completed a business combination for approximately $10.0 million in cash consideration of which $0.1 million was allocated to net tangible assets acquired and $9.9 million to intangible assets. Intangible assets acquired consisted of existing technology with a weighted-average estimated useful life of five years.

2012 Acquisitions

Contrail

On December 14, 2012, the Company acquired the remaining ownership interest in Contrail, increasing its ownership from 12% to 100%, in a cash and stock transaction for approximately $91.7 million. Contrail, a privately-held software networking company, provides software-defined networking solutions technology that augments Juniper's portfolio of products and services.
The aggregate consideration of $91.7 million was allocated as follows: net tangible assets acquired of $3.6 million, including cash and cash equivalents of $8.6 million; intangible assets of $17.4 million; and recognized goodwill of $70.7 million.
The Company previously accounted for its investment in Contrail at cost, which was $3.0 million prior to the acquisition. As of the acquisition date, the fair value of the Company's previous equity interest in Contrail was remeasured to its fair value of $17.7 million, which was based upon adjustments market participants would consider when estimating the fair value of the previously held interest in Contrail. This resulted in a $14.7 million gain, which was reported within other income (expense), net in the Consolidated Statements of Operations.
Mykonos Software, Inc.

On February 13, 2012, the Company acquired 100% of the equity securities of Mykonos Software, Inc. ("Mykonos") for $82.6 million in cash. In connection with this acquisition, the Company acquired net tangible liabilities of $0.2 million, intangible assets of $24.3 million, and recognized goodwill of $58.5 million.
BitGravity, Inc.

On March 8, 2012, the Company acquired a source code license and patent joint-ownership related to the service management layer of BitGravity, Inc.'s ("BitGravity") Content Delivery Network ("CDN") technology for $13.0 million in cash. In connection with this acquisition, the Company acquired net tangible assets of $0.1 million, intangible assets of $12.4 million, and recognized goodwill of $0.5 million.

Intangible Assets Acquired

The following table presents details of the intangible assets acquired for the business combinations completed during 2012 as of their respective acquisition dates (in millions, except years):
 
Contrail
 
Mykonos
 
BitGravity
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
Existing technology
 
$

 
6
 
$
19.3

 
3
 
$
12.4

Trade name and trademarks
 

 
7
 
1.0

 
 

In-process research and development
N/A
 
17.4

 
N/A
 
4.0

 
 

Total
 
$
17.4

 
6
 
$
24.3

 
3
 
$
12.4



Acquired in-process research and development (“IPR&D”) consists of existing research and development projects at the time of the acquisition. Projects that qualify as IPR&D assets represent those that have not yet reached technological feasibility and have no alternative future use. After initial recognition, acquired IPR&D assets are accounted for as indefinite-lived intangible assets. Development costs incurred after acquisition on acquired development projects are expensed as incurred. Upon completion of development, acquired IPR&D assets are considered amortizable intangible assets. If the IPR&D project is abandoned, the related purchased intangible asset is written-off in the period abandoned.
Cash Equivalents and Investments (Notes)
Cash Equivalents and Investments
Cash Equivalents and Investments

Investments in Available-for-Sale and Trading Securities

The following tables summarize the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of December 31, 2014 and December 31, 2013 (in millions):
 
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 includes the Company's non-qualified deferred compensation plan assets.

 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
As of December 31, 2013
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
Asset-backed securities
$
249.9

 
$
0.1

 
$
(0.1
)
 
$
249.9

Certificates of deposit
27.6

 

 

 
27.6

Commercial paper
6.9

 

 

 
6.9

Corporate debt securities
813.6

 
2.0

 
(0.3
)
 
815.3

Foreign government debt securities
10.7

 

 

 
10.7

Government-sponsored enterprise obligations
306.2

 
0.1

 
(0.1
)
 
306.2

U.S. government securities
303.3

 
0.1

 
(0.1
)
 
303.3

Total fixed income securities
1,718.2

 
2.3

 
(0.6
)
 
1,719.9

Money market funds
1,043.7

 

 

 
1,043.7

Mutual funds
3.9

 
0.1

 

 
4.0

Publicly-traded equity securities
12.0

 
104.5

 
(1.9
)
 
114.6

Total available-for-sale securities
2,777.8

 
106.9

 
(2.5
)
 
2,882.2

Trading securities in mutual funds(1)
15.4

 

 

 
15.4

Total
$
2,793.2

 
$
106.9

 
$
(2.5
)
 
$
2,897.6

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
996.2

 
$

 
$

 
$
996.2

Restricted investments
87.5

 
0.1

 

 
87.6

Short-term investments
459.0

 
104.9

 
(2.0
)
 
561.9

Long-term investments
1,250.5

 
1.9

 
(0.5
)
 
1,251.9

Total
$
2,793.2

 
$
106.9

 
$
(2.5
)
 
$
2,897.6


_______________________________
(1)
Balance includes the Company's non-qualified deferred compensation plan assets.

The following table presents the contractual maturities of the Company's total fixed income securities as of December 31, 2014 (in millions):
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
Due in less than one year
$
337.5

 
$
0.1

 
$
(0.2
)
 
$
337.4

Due between one and five years
1,134.2

 
0.4

 
(1.4
)
 
1,133.2

Total
$
1,471.7

 
$
0.5

 
$
(1.6
)
 
$
1,470.6



The Company had 437 and 178 investments in unrealized loss positions as of December 31, 2014 and December 31, 2013, respectively. The gross unrealized losses related to these investments were primarily due to changes in market interest rates and stock prices. The Company periodically reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company aggregates its investments by category and length of time the securities have been in a continuous unrealized loss position to facilitate its evaluation.

For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) it has the intention to sell any of these investments and (ii) whether it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. As of December 31, 2014, the Company anticipates that it will recover the entire amortized cost basis of such available-for-sale debt securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the year ended December 31, 2014, 2013, and 2012.

For available-for-sale equity securities that have unrealized losses, the Company evaluates whether there is an indication of other-than-temporary impairments. This determination is based on several factors, including the financial condition and near-term prospects of the issuer and the Company’s intent and ability to hold the publicly-traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value. During the year ended December 31, 2014, the Company determined that certain available-for-sale equity securities were other-than temporarily impaired, resulting in an impairment charge of $1.1 million that was recorded within other income (expense), net, in the Consolidated Statement of Operations. During the years ended December 31, 2013 and December 31, 2012 the Company did not recognize other-than-temporary impairments associated with these investments.

During the year ended December 31, 2014, gross realized gains from available-for-sale securities were $166.8 million and gross realized losses were not material, excluding the impairment charge noted above. There were no material gross realized gains or losses from trading securities during the year ended December 31, 2014, and there were no material gross realized gains or losses from available-for-sale and trading securities during the years ended December 31, 2013, and December 31, 2012.
 
The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of December 31, 2014 and December 31, 2013 (in millions):
 
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.

 
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, 2013
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities(1)
$
153.0

 
$
(0.1
)
 
$
0.6

 
$

 
$
153.6

 
$
(0.1
)
Corporate debt securities(1)
156.1

 
(0.3
)
 
9.7

 

 
165.8

 
(0.3
)
Foreign government debt securities(2)
10.0

 

 

 

 
10.0

 

Government-sponsored enterprise obligations
123.1

 
(0.1
)
 

 

 
123.1

 
(0.1
)
U.S. government securities
119.7

 
(0.1
)
 

 

 
119.7

 
(0.1
)
Total fixed income securities
561.9

 
(0.6
)
 
10.3

 

 
572.2

 
(0.6
)
Publicly-traded equity securities
6.8

 
(1.9
)
 

 

 
6.8

 
(1.9
)
Total available-for-sale securities
$
568.7

 
$
(2.5
)
 
$
10.3

 
$

 
$
579.0

 
$
(2.5
)
 ________________________________
(1) 
Balances 12 months or greater include investments that were in an immaterial unrealized loss position as of December 31, 2013.
(2) 
Balances less than 12 months include investments that were in an immaterial unrealized loss position as of December 31, 2013.

Restricted Cash and Investments

The Company classifies certain cash and investments as restricted cash and investments on its Consolidated Balance Sheets for: (i) amounts held in escrow accounts, as required in connection with certain acquisitions completed between 2005 and 2014; (ii) the India Gratuity Trust and Israel Retirement Trust, which cover statutory severance obligations in the event of termination of any of the Company's India and Israel employees, respectively; and (iii) the Directors and Officers indemnification trust ("D&O Trust"). The restricted investments are designated as available-for-sale securities.

Privately-Held Investments

As of December 31, 2014 and December 31, 2013, the carrying values of the Company's privately-held investments of $89.9 million and $57.2 million, respectively, were included in other long-term assets in the Consolidated Balance Sheets. As of December 31, 2014, the carrying value of the privately-held investments includes debt and redeemable preferred stock securities of $47.5 million. For the year ended December 31, 2014, the Company recorded $15.0 million in other comprehensive income for unrealized gains associated with its privately-held debt securities. During the year ended December 31, 2013, there were $102.7 million unrealized gains associated with its privately-held securities in other comprehensive income.

The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company adjusts the carrying value for its privately-held investments for any impairment if the fair value is less than the carrying value of the respective assets on an other-than-temporary basis.

During the years ended December 31, 2014, 2013, and 2012, the Company determined that certain privately-held investments were other-than-temporarily impaired, resulting in impairment charges of $1.1 million, $2.8 million, and $20.0 million, respectively, that were recorded within other income (expense), net in the Consolidated Statements of Operations.
Fair Value Measurements (Notes)
Fair Value Measurements
Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables provide a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Consolidated Balance Sheets (in millions):
 
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 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 acquisitions related escrows.
(2) 
Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust.
(3) 
Balance relates to the investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.
 
Fair Value Measurements at December 31, 2013 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
$

 
$
249.9

 
$

 
$
249.9

Certificates of deposit

 
27.6

 

 
27.6

Commercial paper

 
6.9

 

 
6.9

Corporate debt securities

 
815.3

 

 
815.3

Foreign government debt securities

 
10.7

 

 
10.7

Government-sponsored enterprise obligations

 
306.2

 

 
306.2

Money market funds (1)
1,043.7

 

 

 
1,043.7

Mutual funds (2)
4.0

 

 

 
4.0

Publicly-traded equity securities
114.6

 

 

 
114.6

U.S. government securities
197.2

 
106.1

 

 
303.3

Total available-for-sale securities
1,359.5

 
1,522.7

 

 
2,882.2

Trading securities in mutual funds (3)
15.4

 

 

 
15.4

Privately-held debt securities

 

 
28.1

 
28.1

Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts

 
3.0

 

 
3.0

Total assets measured at fair value
$
1,374.9

 
$
1,525.7

 
$
28.1

 
$
2,928.7

Liabilities measured at fair value:
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
Foreign exchange contracts
$

 
$
(0.7
)
 
$

 
$
(0.7
)
Total liabilities measured at fair value
$

 
$
(0.7
)
 
$

 
$
(0.7
)
 
 
 
 
 
 
 
 
Total assets measured at fair value, reported as:
 
 
 
 
 
 
 
Cash equivalents
$
965.1

 
$
31.1

 
$

 
$
996.2

Restricted investments
87.6

 

 

 
87.6

Short-term investments
246.5

 
315.4

 

 
561.9

Long-term investments
75.7

 
1,176.2

 

 
1,251.9

Prepaid expenses and other current assets

 
3.0

 

 
3.0

Other long-term assets

 

 
28.1

 
28.1

Total assets measured at fair value
$
1,374.9

 
$
1,525.7

 
$
28.1

 
$
2,928.7

 
 
 
 
 
 
 
 
Total liabilities measured at fair value, reported as:
 
 
 
 
 
 
 
Other accrued liabilities
$

 
$
(0.7
)
 
$

 
$
(0.7
)
Total liabilities measured at fair value
$

 
$
(0.7
)
 
$

 
$
(0.7
)
_______________________________
(1) 
Balance includes $83.6 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 the restricted investments measured at fair market value of the Company's India Gratuity Trust.
(3) 
Balance relates to the investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.

The Company's Level 2 available-for-sale fixed income securities are priced using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, or alternative pricing sources with reasonable levels of price transparency which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets. The Company's derivative instruments are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 at the beginning of the quarter in which a change in circumstances resulted in a transfer. During the year ended December 31, 2014, the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value. During the year ended December 31, 2013, the Company transferred approximately $287.4 million of government agency bonds within government sponsored enterprise obligations from Level 1 to Level 2 primarily due to the use of additional valuation inputs more appropriately classified as Level 2 inputs. During the year ended December 31, 2013, the Company had no transfers to Level 3.

All of the Company's privately-held debt securities are classified as Level 3 assets due to the absence of quoted market prices and an inherent lack of liquidity. The Company estimates the fair value of its privately-held debt investments on a recurring basis using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. During the year ended December 31, 2014, there were purchases of $5.0 million related to privately-held debt securities.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain of the Company's assets, including intangible assets, goodwill, and privately-held equity investments, are measured at fair value on a nonrecurring basis, only if impairment is indicated. Privately-held equity investments, which are normally carried at cost, are measured at fair value on a nonrecurring basis due to events and circumstances that the Company identified as significantly impacting the fair value of investments. The Company estimates the fair value of its privately-held equity investments using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure.
As of December 31, 2014, the Company recorded a goodwill impairment charge of $850.0 million for its Security reporting unit measured at fair value on a nonrecurring basis. The remeasurement of goodwill is classified as Level 3 value assessment due to the significance of unobservable inputs developed using company-specific information. Refer to Note 7 Goodwill and Purchased Intangible Assets for further information on the goodwill impairment charge and the unobservable inputs used.

As of December 31, 2014, the Company had no significant privately-held equity investments measured at fair value on a nonrecurring basis. As of December 31, 2013, the Company had $2.0 million of privately-held equity investments measured at fair value on a nonrecurring basis and were classified as Level 3 assets due to the absence of quoted market prices and inherent lack of liquidity. The impairment charges of $2.8 million, representing the difference between the net book value and the fair value, are recorded to other income (expense), net in the Consolidated Statements of Operations.

As of December 31, 2012, certain purchased intangible assets with a carrying value of $5.4 million, were impaired and were written-down to their fair value of zero. The impairment charge of $5.4 million was recorded within cost of revenues on the Consolidated Statement of Operations and was classified as Level 3. The Company measured the fair value of these assets primarily using discounted cash flow projections. As of December 31, 2014, the Company had no impairments associated with purchased intangible assets.

As of December 31, 2014 and 2013, the Company had no liabilities measured at fair value on a nonrecurring basis.
Assets and Liabilities Not Measured at Fair Value

The carrying amounts of the Company's accounts receivable, financing receivables, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. As of December 31, 2014, the estimated fair value of the Company's promissory note in connection with the sale of Junos Pulse recorded in other long term assets in the Consolidated Balance Sheet was $125.0 million classified as Level 3 assets due to the absence of quoted market prices and inherent lack of liquidity. As of December 31, 2014 and December 31, 2013, the estimated fair value of the Company's long-term debt in the Consolidated Balance Sheets was approximately $1,395.2 million and $1,023.5 million, respectively, based on observable market inputs (Level 2).
Derivative Instruments (Notes)
Derivative Instruments
Derivative Instruments

The Company uses derivatives to partially offset its market exposure to fluctuations in certain foreign currencies and does not enter into derivatives for speculative or trading purposes.

The notional amount of the Company's foreign currency derivatives are summarized as follows (in millions):
 
As of December 31,
 
2014
 
2013
Cash flow hedges
$
160.7

 
$
137.6

Non-designated derivatives
78.0

 
144.4

     Total
$
238.7

 
$
282.0



Cash Flow Hedges

The Company uses foreign currency forward or option contracts to hedge the Company's planned cost of services and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of one year or less.

See Note 5, Fair Value Measurements, for the fair values of the Company’s derivative instruments in the Consolidated Balance Sheets.

As of December 31, 2014, the Company recognized a loss of $3.4 million in accumulated other comprehensive (loss) income for the effective portion of its derivative instruments and reclassified a gain of $3.4 million during the year ended December 31, 2014 from other comprehensive income to operating expense in the Consolidated Statements of Operations. As of December 31, 2013, the Company recognized a loss of $1.0 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a gain of $0.7 million during the year ended December 31, 2013 from other comprehensive income to operating expense in the Consolidated Statements of Operations. As of December 31, 2012, the Company recognized a gain of $7.2 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a loss of $7.5 million during the year ended December 31, 2012 from other comprehensive income to operating expense in the Consolidated Statements of Operations.

The ineffective portion of the Company's derivative instruments recognized in its Consolidated Statements of Operations was not material during the years ended December 31, 2014, 2013, and 2012.

Non-Designated Derivatives

During the years ended December 31, 2014, 2013, and 2012, the Company recognized a net loss of $2.4 million, a net gain of $0.9 million, and a gain of $1.0 million, respectively, on non-designated derivative instruments within other income (expense), net, in its Consolidated Statements of Operations.

Offsetting of Derivatives

The Company presents its derivative assets and derivative liabilities on a gross basis in the Consolidated Balance Sheets. However, under agreements containing provisions on netting with certain counterparties of foreign exchange contracts, subject to applicable requirements, the Company is allowed to net-settle transactions on the same date in the same currency, with a single net amount payable by one party to the other. As of December 31, 2014 and December 31, 2013, the potential effect of rights of setoff associated with derivative instruments was not material. The Company is neither required to pledge nor entitled to receive cash collateral related to these derivative transactions.
Goodwill and Purchased Intangible Assets (Notes)
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets

Goodwill
The following table presents the goodwill activity (in millions):
 
Total
December 31, 2012
$
4,057.8

Foreign currency translation adjustment
(0.1
)
December 31, 2013
4,057.7

Additions due to business combination
13.6

Impairment
(850.0
)
Divestiture
(239.8
)
December 31, 2014
$
2,981.5



In the fourth quarter of 2014, the Company performed its annual goodwill impairment test for the Company's three reporting units: Routing, Switching, and Security. The Company compared each reporting units’ fair value to their current value to determine whether an impairment exists. The fair value was determined by using a combination of the income approach and the market approach.

Under the income approach, the fair value of each reporting unit was based on the present value of the estimated future cash flows that the reporting unit is expected to generate over its remaining life. Cash flow projections were based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rates used were based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit’s ability to execute on the projected cash flows. Under the market approach, the Company estimated the fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting units. The income approach and the market approach were equally weighted to derive the fair value of each reporting unit.

The fair value of the Company’s Routing and Switching reporting units significantly exceeded their carrying value. However the fair value of the Security reporting unit did not exceed its carrying value and therefore the Company determined the Security reporting unit’s goodwill was impaired. In 2014, the Company re-aligned its go-to-market and research and development resources on projects with the highest potential for growth and continued to leverage its engineering efforts across its Routing, Switching, and Security products. In the fourth quarter of 2014, the Company began to implement a new Security strategy focused on network resiliency and performance based on the SRX platform. As a result, the Company rationalized its Security product portfolio including developing a new product roadmap and exiting certain point products, including the divestiture of Junos Pulse. These factors decreased the Company's short term and near term revenue and profitability forecasts of the Security reporting unit.

In determining the impairment amount, the fair value of the Security reporting unit was allocated to its assets and liabilities, including any unrecognized intangible assets, based on their respective fair values. Assumptions used in measuring the value of these assets and liabilities included the discount rates, customer renewal rates, and technology obsolescence rates used in valuing the intangible assets, and pricing of comparable transactions in the market in valuing the tangible assets. Based on this allocation, the Security reporting unit's carrying value of goodwill exceeded the implied fair value of goodwill, resulting in a goodwill impairment charge of $850.0 million which was recorded in the Consolidated Statement of Operations.

There were no impairments to goodwill during the years ended December 31, 2013, and 2012.

Purchased Intangible Assets

The Company’s purchased intangible assets were as follows (in millions):
 
Gross
 
Accumulated
Amortization
 

Impairments and
Other Charges
 
Net
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

 
 
 
 
 
 
 
 
As of December 31, 2013
 
 
 
 
 
 
 
Intangible assets with finite lives:
 
 
 
 
 
 
 
Technologies and patents
$
581.4

 
$
(453.4
)
 
$
(30.5
)
 
$
97.5

Customer contracts, support agreements, and
   related relationships
74.3

 
(62.7
)
 
(2.2
)
 
9.4

Total purchased intangible assets
$
655.7

 
$
(516.1
)
 
$
(32.7
)
 
$
106.9



The following table presents the amortization of intangible assets included in the Consolidated Statements of Operations (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Cost of revenues
$
30.9

 
$
27.3

 
$
27.6

Operating expenses:
 
 
 
 
 
Sales and marketing
4.2

 
3.4

 
3.5

General and administrative
1.2

 
1.2

 
1.2

Total operating expenses
5.4

 
4.6

 
4.7

Total
$
36.3

 
$
31.9

 
$
32.3



In connection with the restructuring plan in 2014 and 2012 discussed in Note 9, Restructuring and Other Charges, the Company determined certain intangible assets of $20.0 million and $10.7 million, respectively, were no longer utilized. Additionally, in 2012 the Company recorded a $5.4 million impairment charge as a result of the fair value assessment. During the year ended December 31, 2014, the Company recorded charges of $19.3 million in cost of revenues and $0.7 million in restructuring and other charges in the Consolidated Statements of Operations. During the year ended December 31, 2012, the Company recorded charges of $16.1 million in cost of revenues in the Consolidated Statements of Operations. There were no impairment charges to purchased intangible assets during the years ended December 31, 2013.

As of December 31, 2014, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):
Years Ending December 31,
Amount
2015
$
24.2

2016
13.8

2017
8.9

2018
5.2

2019
4.9

Thereafter
5.4

Total
$
62.4

Other Financial Information (Notes)
Other Financial Information
Other Financial Information

Inventories

The Company purchases and holds inventory to provide adequate component supplies over the life of the underlying products. The majority of the Company's inventory is production components to be used in the manufacturing process and finished goods inventory in transit. Inventories are reported within prepaid expenses and other current assets and other long-term assets in the Consolidated Balance Sheets. Total inventories consisted of the following (in millions):
 
As of December 31,
 
2014
 
2013
Production materials
$
38.3

 
$
51.3

Finished goods
24.2

 
1.4

Inventories
$
62.5

 
$
52.7



During the year ended December 31, 2014, the Company recorded $15.5 million to cost of revenues, related to the acceleration of the end-of-life of certain products in connection with the 2014 Restructuring Plan discussed in Note 9, Restructuring and Other Charges. There were no such charges during the year ended December 31, 2013.

During the year ended December 31, 2012, the Company recorded charges of $44.3 million, to cost of revenues, representing inventory held in excess of forecasted demand, of which $36.3 million was in connection with the restructuring plan in 2012 discussed in Note 9, Restructuring and Other Charges.

Property and Equipment, Net

Property and equipment, net, consisted of the following (in millions):
 
As of December 31,
 
2014
 
2013
Computers and equipment
$
806.1

 
$
794.6

Software
161.2

 
108.4

Leasehold improvements
179.5

 
202.6

Furniture and fixtures
33.7

 
42.5

Building and building improvements
238.4

 
242.6

Land and land improvements
241.0

 
238.9

Construction-in-process
70.3

 
79.5

Property and equipment, gross
1,730.2

 
1,709.1

Accumulated depreciation
(825.9
)
 
(826.8
)
Property and equipment, net
$
904.3

 
$
882.3


 
Depreciation expense was $141.9 million, $148.2 million, and $154.7 million in 2014, 2013, and 2012, respectively. Property and equipment is periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Other Long-Term Assets

Other long-term assets consisted of the following (in millions):
 
As of December 31,
 
2014
 
2013
Privately-held investments
$
89.9

 
$
57.2

Licensed software
8.6

 
90.4

Federal income tax receivable
20.0

 
20.0

Customer financing receivable
16.9

 
19.9

Inventory
8.0

 
15.2

Prepaid costs, deposits, and other
35.5

 
31.1

Promissory note in connection with the sale of Junos Pulse(1)
125.0

 

Other long-term assets
$
303.9

 
$
233.8


_______________________________
(1) 
Refer to Other Income (Expense), net below for further information on the promissory note.

In connection with the 2014 Restructuring Plan discussed in Note 9, Restructuring and Other Charges, the Company reviewed its product portfolio and determined to cease development of the application delivery controller software technology licensed in July 2012 as well as development of another technology, for which the Company has a prepaid license. As a result, the Company recognized a total charge of $85.4 million recorded within operating expenses in the Consolidated Statements of Operations during the year ended December 31, 2014. There were no revenues associated with this technology.

Warranties

The Company accrues for warranty costs based on associated material, labor for customer support, and overhead at the time revenue is recognized. This accrual is reported as accrued warranty within current liabilities in the Consolidated Balance Sheets. Changes in the Company’s warranty reserve were as follows (in millions):
 
As of December 31,
 
2014
 
2013
Beginning balance
$
28.0

 
$
29.7

Provisions made during the period, net
28.6

 
28.8

Adjustments related to pre-existing warranties

 
(2.1
)
Actual costs incurred during the period
(27.9
)
 
(28.4
)
Ending balance
$
28.7

 
$
28.0



Deferred Revenue

Details of the Company's deferred revenue, as reported in the Consolidated Balance Sheets, were as follows (in millions):
 
As of December 31,
 
2014
 
2013
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
180.3

 
$
184.9

Distributor inventory and other sell-through items
103.7

 
118.7

Deferred gross product revenue
284.0

 
303.6

Deferred cost of product revenue
(58.4
)
 
(58.6
)
Deferred product revenue, net
225.6

 
245.0

Deferred service revenue
850.1

 
824.3

Total
$
1,075.7

 
$
1,069.3

Reported as:
 
 
 
Current
$
780.8

 
$
705.8

Long-term
294.9

 
363.5

Total
$
1,075.7

 
$
1,069.3



Deferred product revenue represents unrecognized revenue related to shipments to distributors that have not sold through to end-users, undelivered product commitments, and other shipments that have not met all revenue recognition criteria. Deferred product revenue is recorded net of the related costs of product revenue. Deferred service revenue represents billable amounts for service contracts, which include technical support, hardware and software maintenance, professional services, and training, for which services have not been rendered.

Other Income (Expense), Net

Other income (expense), net consisted of the following (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Interest income
$
10.0

 
$
8.7

 
$
11.0

Interest expense
(66.9
)
 
(58.4
)
 
(52.9
)
Net gain on legal settlement
196.1

 

 

Gain on investments
167.9

 
11.3

 
26.7

Gain on sale of Junos Pulse
19.6

 

 

Other
6.7

 
(2.0
)
 
(1.4
)
Other income (expense), net
$
333.4

 
$
(40.4
)
 
$
(16.6
)


Interest income primarily includes interest earned on the Company’s cash, cash equivalents, and investments. Interest expense primarily includes interest, net of capitalized interest expense, from long-term debt and customer financing arrangements. Other typically consists of investment and foreign exchange gains and losses and other non-operational income and expense items.

Interest Expense

For the years ended December 31, 2014, 2013 and 2012, interest expense included $57.5 million, net of $2.7 million capitalized, $45.2 million, net of $1.9 million capitalized, and $40.0 million, net of $7.1 million capitalized, respectively, related to the Company's outstanding long-term debt issued in March 2011 and in February 2014 discussed in Note 10, Long-Term Debt and Financing.

Gain on Legal Settlement

During the year ended December 31, 2014, the Company entered into a settlement agreement with Palo Alto Networks, Inc. ("PAN") resolving a patent litigation between the two companies, which resulted in a realized gain on legal settlement and subsequent sale of related securities of $196.1 million, net of legal fees.

Gain on Investments

During the year ended December 31, 2014, the Company recorded a gain of $163.0 million, primarily related to the sale of investments which were converted from privately-held investments to publicly-traded equity upon IPO and subsequently sold.

During the year ended December 31, 2013, net gain on investments was primarily comprised of a gain of $7.1 million related to the Company's privately-held investments.

Gain on Sale of Junos Pulse

On October 1, 2014, the Company completed the sale of its Junos Pulse product portfolio. The Company received total consideration of $230.7 million, of which $105.7 million was in cash, net of a $19.3 million working capital adjustment, and $125.0 million was in the form of an 18-month non-contingent interest bearing promissory note issued to the Company. As a result of the sale, the Company recorded a gain of $19.6 million in other income (expense), net in the Consolidated Statement of Operations. The Company's sale of Junos Pulse is driven by product rationalization in connection with the Company's initiative to focus on projects with the highest potential for growth.
Restructuring and Other Charges (Notes)
Restructuring and Other Charges
Restructuring and Other Charges

The following table presents restructuring and other charges included in cost of revenues and restructuring and other charges in the Consolidated Statements of Operations under the Company's restructuring plans (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Severance
$
52.6

 
$
22.9

 
$
36.7

Facilities
14.4

 
10.0

 
5.8

Contract terminations and other
2.3

 
14.6

 
57.2

Asset impairments and write-downs
139.2

 

 

Total
$
208.5

 
$
47.5

 
$
99.7

 
 
 
 
 
 
Reported as:
 
 
 
 
 
Cost of revenues
$
41.5

 
$
8.4

 
$
52.9

Restructuring and other charges
167.0

 
39.1

 
46.8

Total
$
208.5

 
$
47.5

 
$
99.7



Restructuring and other charges noted above are based on the Company's 2014 Restructuring Plan and Other Restructuring Plans that were committed to by management. Any changes in the estimates of executing the approved plans are reflected in the Company's results of operations.

2014 Restructuring Plan

In the first quarter of 2014, the Company initiated a restructuring plan (the “2014 Restructuring Plan”) designed to refocus the Company's strategy, optimize its structure, and improve operational efficiencies. The 2014 Restructuring Plan consists of workforce reductions, facility consolidations and closures, asset write-downs, contract terminations and other charges.

During the year ended December 31, 2014, the Company recorded $52.0 million of severance costs, $14.2 million of facility consolidation and closures costs, $85.4 million of impairment charges related to licensed software, $12.3 million of asset write-downs, and $2.3 million of charges related to contract terminations, which were recorded to restructuring and other charges in the Consolidated Statements of Operations. In connection with the facility consolidation and closures charge of $14.2 million, the Company, with the consent of its landlord and the administrative agent for the holder of certain liens secured upon the buildings on the leased premises, assigned certain of its real property leases, totaling approximately 0.4 million square feet, to a third party. Concurrently with the assignments, the Company executed a sublease with the assignee for one of the properties of approximately 0.1 million square feet, for a period of two years, with one-time right to extend the term for up to six months. Under these arrangements, the Company paid $12.3 million to the landlord and was released from all future lease obligations following the date of the assignments. The Company also incurred $5.3 million of transaction fees, which were recorded to restructuring and other charges in the Consolidated Statements of Operations. Offsetting these charges was an adjustment relating to deferred rent liability relating to these premises of $9.8 million.

The Company also recorded inventory write-downs of $15.5 million, intangibles write-downs of $19.3 million, and a charge related to products with contract manufacturers of $6.7 million for acceleration of the end-of-service life of certain products to cost of revenues in the Consolidated Statements of Operations during the year ended December 31, 2014.

The 2014 Restructuring Plan has been substantially completed as of December 31, 2014, and the Company does not expect to record significant future charges under this restructuring plan.

2013 Restructuring Plan

During 2013, the Company initiated a restructuring plan (the "2013 Restructuring Plan") to continue to improve its cost structure and rationalize its product portfolio and rebalance its investments. The 2013 Restructuring Plan consists of workforce reductions, contract terminations, and project cancellations. The Company recorded $0.6 million in severance costs related to the 2013 Restructuring Plan during the year ended December 31, 2014. Under the 2013 Restructuring Plan, total costs incurred through December 31, 2014 were $28.9 million, of which $3.3 million was recorded within cost of revenues and $25.6 million was recorded within restructuring and other charges in the Consolidated Statements of Operations. The restructuring activities related to this plan are substantially complete, and the Company does not expect to record significant future charges under this plan.

2012 Restructuring Plan

During 2012, the Company initiated a restructuring plan (the "2012 Restructuring Plan") to bring its cost structure more in line with its desired long-term financial and strategic model. The 2012 Restructuring Plan consists of workforce reductions, facility consolidations or closures, and supply chain and procurement efficiencies. During the year ended December 31, 2014, the Company continued to implement restructuring activities under the 2012 Restructuring Plan and recorded $0.2 million in charges for facility consolidations or closures. Under the 2012 Restructuring Plan, total costs incurred through December 31, 2014 were $112.8 million, of which $58.0 million was recorded within cost of revenues, primarily related to certain inventory and intangible asset impairment charges, and $54.8 million was recorded within restructuring and other charges in the Consolidated Statements of Operations. The restructuring activities related to this plan are substantially complete, and the Company does not expect to record significant future charges under this plan.

Restructuring Liability

Restructuring liabilities are reported within other accrued liabilities and other long-term liabilities in the Consolidated Balance Sheets. The following table provides a summary of changes in the restructuring liability related to the Company's plans during the year ended December 31, 2014 (in millions):
 
December 31,
2013
 
Charges
 
Cash
Payments
 
Non-cash
Settlements and
Other
 
December 31,
2014
Severance
$
5.6

 
$
52.6

 
$
(47.4
)
 
$
(1.4
)
 
$
9.4

Facilities
5.1

 
14.4

 
(20.2
)
 
8.1

 
7.4

Contract terminations and other
7.1

 
2.3

 
(8.3
)
 
(0.9
)
 
0.2

Total
$
17.8

 
$
69.3

 
$
(75.9
)
 
$
5.8

 
$
17.0


As of December 31, 2014, the Company's restructuring liability was $17.0 million, of which $9.6 million is related to severance and other charges expected to be settled by the first quarter of 2015. The remaining $7.4 million related to facility closures is expected to be paid through March 2018.
Long-Term Debt and Financing (Notes)
Long-Term Debt and Financing
Long-Term Debt and Financing

Long-Term Debt

The following table summarizes the Company's long-term debt (in millions, except percentages):
 
As of December 31, 2014
 
Amount
 
Effective Interest
Rates
Senior notes:
 
 
 
3.10% fixed-rate notes, due 2016
$
300.0

 
3.25
%
4.60% fixed-rate notes, due 2021
300.0

 
4.69
%
4.50% fixed-rate notes, due 2024
350.0

 
4.63
%
5.95% fixed-rate notes, due 2041
400.0

 
6.03
%
Total senior notes
1,350.0

 
 
Unaccreted discount
(1.0
)
 
 
Total
$
1,349.0

 
 


In March 2011, the Company issued $300.0 million aggregate principal amount of 3.10% senior notes due 2016 ("2016 Notes"), $300.0 million aggregate principal amount of 4.60% senior notes due 2021 ("2021 Notes"), and $400.0 million aggregate principal amount of 5.95% senior notes due 2041 ("2041 Notes"). In February 2014, the Company issued $350.0 million aggregate principal amount of 4.50% senior notes due 2024 ("2024 Notes" and, collectively the "Notes").

The 2024 Notes are senior unsecured obligations and rank equally with all of the Company's other existing and future senior unsecured indebtedness. Interest on the Notes is payable in cash semiannually. The Company may redeem the Notes, at any time in whole or from time to time in part, subject to a make-whole premium, and, in the event of a change in control, the holders of the Notes may require the Company to repurchase for cash all or part of the Notes at a purchase price equal to 101% of the aggregate principle amount, plus accrued and unpaid interest, if any. The indenture that governs the Notes also contains various covenants, including limitations on the Company's ability to incur liens or enter into sale-leaseback transactions over certain dollar thresholds.

The effective interest rates for the Notes include the interest on the Notes, accretion of the discount, and amortization of issuance costs. As of December 31, 2014, the Company was in compliance with all of its covenants in the indentures governing the Company's notes.

Revolving Credit Facility

On June 27, 2014, the Company entered into a Credit Agreement ("Credit Agreement") with certain institutional lenders and Citibank, N.A., as administrative agent, that provides for a $500.0 million unsecured revolving credit facility, with an option of the Company to increase the amount of the credit facility by up to an additional $200.0 million, subject to certain conditions. Proceeds of loans made under the Credit Agreement may be used by the Company for working capital and general corporate purposes. Revolving loans may be borrowed, repaid and reborrowed until June 27, 2019, at which time all amounts borrowed must be repaid. Borrowing may be denominated, at the Company's option in U.S. dollars, Pounds Sterling or Euro.

Borrowings under the Credit Agreement will bear interest, at either i) a floating rate per annum equal to the base rate plus a margin of between 0.00% and 0.50%, depending on the Company's public debt rating or ii) a per annum rate equal to the reserve adjusted Eurocurrency rate, plus a margin of between 0.90% and 1.50%, depending on the Company's public debt rating. Base rate is defined as the greatest of (A) Citibank's base rate, (B) the Federal Funds rate plus 0.50% or (C) the ICE Benchmark Administration Settlement Rate applicable to dollars for a period of one month plus 1.00%. The Eurocurrency rate is determined for U.S. dollars and Pounds Sterling as the rate at which deposits in such currency are offered in the London interbank market for the applicable interest period and for Euro as the rate specified for deposits in Euro with a maturity comparable to the applicable interest period.

As of December 31, 2014, the Company was in compliance with all covenants in the Credit Agreement, and no amounts were outstanding.

Customer Financing Arrangements

The Company provides certain distribution partners access to extended financing arrangements for certain end-user customers that require longer payment terms than those typically provided by the Company through factoring accounts receivable to third-party financing providers ("financing providers"). The program does not and is not intended to affect the timing of the Company's revenue recognition. Under the financing arrangements, proceeds from the financing provider are due to the Company within 30 to 90 days from the sale of the receivable. In these transactions with the financing provider, the Company surrenders control over the transferred assets. The factored accounts receivable are isolated from the Company and put beyond the reach of the Company's creditors, even in the event of bankruptcy. The Company does not maintain effective control over the transferred assets through obligations or rights to redeem, transfer, or repurchase the receivables after they have been transferred. In 2014, the Company transitioned certain distribution partners from the third party financing program to the Company's commercial payment terms. As a result the Company's customer financing activities significantly declined from fiscal year 2013 to 2014.

Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $440.3 million, $898.4 million and $677.8 million during the years ended December 31, 2014, 2013, and 2012, respectively.

The Company received cash proceeds from the financing provider of $602.1 million, $843.9 million, and $679.8 million during the years ended December 31, 2014, 2013, and 2012, respectively. As of December 31, 2014 and December 31, 2013, the amounts owed by the financing provider were $28.0 million and $189.8 million, respectively, and were recorded in accounts receivable on the Company’s Consolidated Balance Sheets.

The Company has provided guarantees to third-party financing companies for certain third-party financing arrangements extended to certain end-user customers, which have terms of up to four years. The Company is liable for the aggregate unpaid payments to the third-party financing company in the event of customer default. As of December 31, 2014, the Company has not been required to make any payments under these arrangements. Pursuant to these arrangements, the Company has guarantees for third-party financing arrangements of $22.2 million as of December 31, 2014.

The portion of the receivable financed that has not been recognized as revenue is accounted for as a financing arrangement and is included in other accrued liabilities and other long-term liabilities in the Consolidated Balance Sheets. As of December 31, 2014 and 2013, the estimated cash received from the financing provider not recognized as revenue from distributors was $67.5 million and $62.3 million, respectively.
Equity (Notes)
Equity
Equity

Cash Dividends on Shares of Common Stock

During 2014, the Company declared two quarterly cash dividends of $0.10 per share on July 22, 2014 and on October 23, 2014, paid on September 23, 2014 and on December 23, 2014 to stockholders of record as of the close of business on September 2, 2014 and December 2, 2014, respectively, in the aggregate amount of $86.0 million. Any future dividends, and the establishment of record and payment dates, are subject to approval by the Board of Directors (the "Board") of Juniper Networks or authorized committee thereof. See Note 18, Subsequent Events, for discussion of the Company's dividend declaration subsequent to December 31, 2014.

Stock Repurchase Activities

In February 2014, the Company's Board approved a stock repurchase program that authorized the Company to repurchase up to $2.1 billion of its common stock, including $1.2 billion pursuant to an accelerated share repurchase program ("2014 Stock Repurchase Program"). In October 2014, the Board authorized a $1.3 billion increase to the 2014 Stock Repurchase Program for a total of $3.4 billion. As of December 31, 2014, there was $1.2 billion of authorized funds remaining under the 2014 Stock Repurchase Program. In addition to repurchases under the Company’s stock repurchase program, the Company also repurchases common stock from certain employees in connection with the net issuance of shares to satisfy minimum tax withholding obligations upon the vesting of certain stock awards issued to such employees.

The following table summarizes the Company's repurchases and retirements of its common stock under its stock repurchase programs and accelerated share repurchase, and repurchases associated with minimum tax withholdings (in millions, except per share amounts):
 
Shares
Repurchased 
 
Average price
per share
 
Amount
Repurchased 
2014
 
 
 
 
 
Repurchases under stock repurchase program
46.8

 
$
22.42

 
$
1,050.0

Accelerated share repurchase(1)
49.3

 
$
24.35

 
$
1,200.0

Repurchases for tax withholding
0.6

 
$
19.69

 
$
12.5

2013
 
 
 
 
 
Repurchases under stock repurchase program
28.9

 
$
19.76

 
$
570.6

Repurchases for tax withholding
0.4

 
$
20.23

 
$
7.2

2012
 
 
 
 
 
Repurchases under stock repurchase program
35.8

 
$
18.05

 
$
645.6

Repurchases for tax withholding
0.2

 
$
23.40

 
$
5.0


_______________________________
(1) 
As part of the 2014 Stock Repurchase Program, the Company entered into two separate accelerated share repurchase agreements (collectively, the "ASR") with two financial institutions to repurchase $1.2 billion of the Company's common stock. The Company made an up-front payment of $1.2 billion pursuant to the ASR to repurchase the Company's common stock. The aggregate number of shares ultimately purchased was determined based on a volume weighted average repurchase price, less an agreed upon discount. The shares received with respect to the ASR have been retired. Retired shares return to authorized but unissued shares of common stock.

The Company intends to repurchase $1.0 billion of its common stock by the end of the second quarter of 2015, as part of its three year capital return program. Future share repurchases under the Company’s stock repurchase programs will be subject to a review of the circumstances 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. The Company's stock repurchase programs may be discontinued at any time. See Note 18, Subsequent Events, for discussion of the Company's stock repurchase activity subsequent to December 31, 2014.

Accumulated Other Comprehensive (Loss) Income, Net of Tax

The components of accumulated other comprehensive income, net of related taxes, for the years ended December 31, 2014 and December 31, 2013 were as follows (in millions):
 
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, 2012
$
2.1

 
$
3.0

 
$
(0.4
)
 
$
4.7

Other comprehensive gain (loss) before reclassifications
65.1

 
0.7

 
(3.4
)
 
62.4

Amount reclassified from accumulated other
   comprehensive income
(1.0
)
 
(1.5
)
 

 
(2.5
)
Other comprehensive gain (loss)
64.1

 
(0.8
)
 
(3.4
)
 
59.9

Balance as of December 31, 2013
$
66.2

 
$
2.2

 
$
(3.8
)
 
$
64.6

Other comprehensive gain (loss) before reclassifications
48.7

 
(4.1
)
 
(14.2
)
 
30.4

Amount reclassified from accumulated other
   comprehensive income
(106.5
)
 
(2.3
)
 

 
(108.8
)
Other comprehensive loss, net
(57.8
)
 
(6.4
)
 
(14.2
)
 
(78.4
)
Balance as of December 31, 2014
$
8.4

 
$
(4.2
)
 
$
(18.0
)
 
$
(13.8
)
________________________________
(1) 
The reclassifications out of accumulated other comprehensive income during the years ended December 31, 2014 and December 31, 2013 for realized gains on available-for-sale securities of $104.3 million and $1.0 million, respectively, are included in other income (expense), net, in the Consolidated Statements of Operations.
(2) 
The reclassifications out of accumulated other comprehensive income during the year ended December 31, 2014 for realized gains on cash flow hedges are included within research and development of $1.4 million, sales and marketing of $0.3 million, and general and administrative of $0.7 million and for realized losses within cost of revenues of $0.1 million for which the hedged transactions relate in the Consolidated Statements of Operations. The reclassifications out of accumulated other comprehensive income during the year ended December 31, 2013 for realized gains on cash flow hedges are included within cost of revenues of $1.1 million and sales and marketing of $4.3 million and for realized losses within research and development of $3.4 million and general and administrative of $0.5 million for which the hedged transactions relate in the Consolidated Statements of Operations.
Employee Benefit Plans (Notes)
Employee Benefit Plans
Employee Benefit Plans

Equity Incentive Plans

The Company’s equity incentive plans include the 2006 Equity Incentive Plan (the “2006 Plan”), the 2000 Nonstatutory Stock Option Plan (the “2000 Plan”), the Amended and Restated 1996 Stock Plan (the “1996 Plan”), various equity incentive plans assumed through acquisitions, and the 2008 Employee Stock Purchase Plan (the "ESPP"). Under these plans, the Company has granted (or, in the case of acquired plans, assumed) stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), and performance share awards ("PSAs").

As of December 31, 2014, a total of approximately 82.3 million shares of common stock were reserved for future issuance upon exercise of stock options and vesting of RSUs, RSAs, and PSAs, and for the future grant of share-based compensation awards under the Company's equity incentive plans.

The 2006 Plan was adopted and approved by the Company’s stockholders in May 2006. To date, the Company's stockholders have approved a share reserve of 149.5 million shares of common stock plus the addition of any shares subject to options under the 2000 Plan and the 1996 Plan that were outstanding as of May 18, 2006, and that subsequently expire unexercised, up to a maximum of an additional 75.0 million shares. As of December 31, 2014, the 2006 Plan had 27.1 million shares subject to currently outstanding equity awards and 47.8 million shares available for future issuance. Options granted under the 2006 Plan have a maximum term of seven years from the date of grant, and generally vest and become exercisable over a four-year period. Subject to the terms of change of control severance agreements, and except for a limited number of shares allowed under the 2006 Plan, RSUs or PSAs that vest solely based on continuing employment or provision of services will vest in full no earlier than three years from the grant date, or in the event vesting is based on factors other than continued future provision of services, such awards will vest in full no earlier than one year from the grant date.

During 2012 through 2014, the Company completed the acquisitions of Mykonos, Contrail, and WANDL and assumed their respective plans: Mykonos Software, Inc. 2010 Stock Plan; Contrail Systems Inc. 2012 Stock Plan, and WANDL, Inc. 2013 Restricted Stock Unit Plan. In connection with these plans, the Company assumed stock options, RSUs, RSAs, and PSAs and exchanged the assumed awards for Juniper Networks' stock options, RSUs, RSAs, and PSAs, respectively. No additional awards can be granted under these plans. The Company assumed an aggregate of 8.5 million shares of stock options, RSUs, RSAs, and PSAs in connection with the acquisitions of Mykonos, Contrail, and WANDL. As of December 31, 2014 stock options, RSUs, RSAs, and PSAs representing approximately 4.1 million shares of common stock were outstanding under all awards assumed through the Company's acquisitions.

The ESPP was adopted in May 2008. To date, the Company's stockholders have approved a share reserve of 19.0 million shares of the Company's common stock for issuance under the ESPP. The ESPP permits eligible employees to acquire shares of the Company’s common stock at a 15% discount to the offering price (as determined in the ESPP) through periodic payroll deductions of up to 10% of base compensation, subject to individual purchase limits of 6,000 shares in any twelve-month period or $25,000 worth of stock, determined at the fair market value of the shares at the time the stock purchase option is granted, in one calendar year. As of December 31, 2014, approximately 15.7 million shares have been issued and 3.3 million shares remain available for future issuance under the ESPP.

Stock Option Activities

Since 2006, the Company has granted stock option awards that have a maximum contractual life of seven years from the date of grant. Prior to 2006, stock option awards generally had a ten-year contractual life from the date of grant.

The following table summarizes the Company’s stock option activity and related information as of and for the three years ended December 31, 2014 (in millions, except for per share amounts and years):
 
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, 2011
38.6

 
$
23.98

 
3.7
 
$
75.3

Granted
3.1

 
22.81

 
 
 
 
Assumed(*)
0.9

 
0.57

 
 
 
 
Canceled
(2.8
)
 
26.64

 
 
 
 
Exercised
(3.6
)
 
11.71

 
 
 
 
Expired
(2.1
)
 
26.97

 
 
 
 
Balance as of December 31, 2012
34.1

 
$
24.13

 
3.1
 
$
52.5

Canceled
(1.3
)
 
29.56

 
 
 
 
Exercised
(5.6
)
 
15.58

 
 
 
 
Expired
(4.1
)
 
28.35

 
 
 
 
Balance as of December 31, 2013
23.1

 
$
25.15

 
2.4
 
$
44.6

Canceled
(0.6
)
 
30.15

 
 
 
 
Exercised
(5.4
)
 
19.76

 
 
 
 
Expired
(7.2
)
 
29.11

 
 
 
 
Balance as of December 31, 2014
9.9

 
$
24.87

 
2.0
 
$
24.7

 
 
 
 
 
 
 
 
As of December 31, 2014:
 
 
 
 
 
 
 
Vested and expected-to-vest options
9.8

 
$
25.00

 
2.0
 
$
23.6

Exercisable options
9.1

 
$
25.88

 
1.7
 
$
15.9

_____________________________
(*) 
Stock options assumed in connection with the acquisition of Contrail.

Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $22.32 per share as of December 31, 2014 and the exercise price, multiplied by the number of related options. The pre-tax intrinsic value of options exercised, representing the difference between the fair market value of the Company’s common stock on the date of the exercise and the exercise price of each option, was $33.4 million, $29.4 million, and $27.9 million for 2014, 2013, and 2012, respectively. Total fair value of options vested during 2014, 2013, and 2012 was $20.8 million, $45.2 million, and $70.9 million, respectively.

The following table summarizes additional information regarding outstanding and exercisable options as of December 31, 2014:
 
 
Options Outstanding 
 
Options Exercisable 
Range of Exercise Price
(In dollars)
 
Number Outstanding
(In millions)
 
Weighted Average
Remaining
Contractual Life
(In years)
 
Weighted Average
Exercise Price
(In dollars)
 
Number
Exercisable
(In millions)
 
Weighted Average
Exercise Price
(In dollars)
$0.03 - $15.09
 
1.7

 
3.6
 
$
9.58

 
1.3

 
$
12.23

$16.39 - $22.59
 
1.4

 
1.5
 
20.36

 
1.2

 
20.34

$22.74 - $24.61
 
1.1

 
2.0
 
23.85

 
0.9

 
23.81

$24.73 - 24.73
 
0.1

 
0.4
 
24.73

 
0.1

 
24.73

$25.16- $25.16
 
1.2

 
0.2
 
25.16

 
1.2

 
25.16

$25.19 - $26.90
 
1.0

 
1.3
 
26.24

 
1.0

 
26.24

$26.97 - $29.89
 
1.6

 
1.8
 
28.71

 
1.6

 
28.70

$30.01 - $38.93
 
0.7

 
2.9
 
33.57

 
0.7

 
33.60

$40.26 - $40.26
 
0.7

 
2.8
 
40.26

 
0.7

 
40.26

$44.00 - $44.00
 
0.4

 
3.0
 
44.00

 
0.4

 
44.00

$0.03 - $44.00
 
9.9

 
2.0
 
$
24.87

 
9.1

 
$
25.88


 
Restricted Stock Unit, Restricted Stock Award, and Performance Share Award Activities

RSUs and RSAs generally vest over a period of three to four years from the date of grant and PSAs generally vest over a period of two to three years provided that certain annual performance targets and other vesting criteria are met. Until vested, RSUs and PSAs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding.

The following table summarizes the Company’s RSU, RSA, and PSA activity and related information as of and for the three years ended December 31, 2014 (in millions, except per share amounts and years):
 
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, 2011
19.6

 
$
30.27

 
1.5
 
$
400.5

RSUs granted
9.9

 
20.79

 
 
 
 
RSUs assumed(1)(2)
0.2

 
22.21

 
 
 
 
PSAs granted(3)
2.2

 
23.07

 
 
 
 
RSAs assumed(2)
5.8

 
19.59

 
 
 
 
RSUs vested(8)
(3.1
)
 
27.04

 
 
 
 
PSAs vested(8)
(1.9
)
 
18.21

 
 
 
 
RSAs vested(8)
(0.7
)
 
19.59

 
 
 
 
RSUs canceled
(2.9
)
 
27.77

 
 
 
 
     PSAs canceled
(2.3
)
 
29.71

 
 
 
 
Balance as of December 31, 2012
26.8

 
$
27.76

 
1.7
 
$
565.0

RSUs granted
10.3

 
20.32

 
 
 
 
PSAs granted(4)
2.2

 
21.27

 
 
 
 
RSUs vested(8)
(6.1
)
 
26.15

 
 
 
 
PSAs vested(8)
(1.1
)
 
28.52

 
 
 
 
RSAs vested(8)
(1.6
)
 
19.59

 
 
 
 
RSUs canceled
(3.4
)
 
22.99

 
 
 
 
     PSAs canceled
(1.7
)
 
29.10

 
 
 
 
Balance as of December 31, 2013
25.4

 
$
23.44

 
1.1
 
$
573.5

RSUs granted(5)(9)
10.0

 
22.52

 
 
 
 
RSUs assumed(6)
0.4

 
22.66

 
 
 
 
RSAs assumed(6)
0.9

 
22.66

 
 
 
 
PSAs granted(7)(9)
1.4

 
24.25

 
 
 
 
PSAs assumed(6)
0.2

 
22.66

 
 
 
 
RSUs vested(8)
(7.3
)
 
22.98

 
 
 
 
RSAs vested(8)
(1.4
)
 
19.59

 
 
 
 
PSAs vested(8)
(1.1
)
 
36.19

 
 
 
 
RSUs canceled
(4.0
)
 
21.63

 
 
 
 
PSAs canceled
(3.2
)
 
30.43

 
 
 
 
Balance at December 31, 2014
21.3

 
$
22.05

 
1.1
 
$
475.0

 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
 
 
 
 
 
     Vested and expected-to-vest RSUs, RSAs,
       and PSAs
17.7

 
$
21.99

 
1.0
 
$
395.2

________________________________
(1) 
RSUs assumed in connection with the acquisition of Mykonos
(2)
RSUs and RSAs assumed in connection with the acquisition of Contrail.
(3)
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 0.9 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.2 million shares.
(4)
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 1.1 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.2 million shares.
(5) 
Includes service-based and market-based RSUs granted under the 2006 Plan according to its terms.
(6)
RSUs, RSAs, and PSAs assumed in connection with the acquisition of WANDL.
(7)
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 0.9 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 1.4 million shares.
(8)
Total fair value of RSUs, RSAs, and PSAs vested during 2014, 2013, and 2012 was $210.1 million, $221.5 million, and $132.0 million, respectively.
(9)
On February 20, 2014, the Company announced its intention to initiate a quarterly cash dividend of $0.10 per share of common stock in the third quarter of 2014. As a result of the Company's announcement, the grant date fair value of RSUs and PSAs granted after the announcement date were reduced by the present value of the 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. The Company paid quarterly cash dividends in the third and fourth quarter of 2014 of $0.10 per share totaling $86.0 million. The declaration and amount of any future cash dividends are at the discretion of the Board of Directors and will depend on the Company's financial performance, economic outlook, and any other relevant considerations.

Shares Available for Grant

The following table presents the stock activity and the total number of shares available for grant under the 2006 Plan as of December 31, 2014 (in millions):
 
Number of Shares
Balance as of December 31, 2013
49.1

RSUs and PSAs granted (1)
(24.1
)
RSUs and PSAs canceled (1)
15.0

Options canceled (2)
0.6

Options expired (2)
7.2

Balance as of December 31, 2014
47.8

________________________________
(1) 
RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted represents the maximum number of shares that may be issued pursuant to the award over its full term.
(2) 
Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired after May 18, 2006, which become available for grant under the 2006 Plan according to its terms.

Employee Stock Purchase Plan

The Company's ESPP is implemented in a series of offering periods, each six months in duration, or a shorter period as determined by the Board. Employees purchased approximately 2.9 million, 3.3 million, and 3.5 million shares of common stock through the ESPP at an average exercise price of $19.30, $16.53, and $16.26 per share during 2014, 2013, and 2012, respectively.

Valuation Assumptions

The weighted-average assumptions used and the resulting estimates of fair value for stock options, ESPP, and market-based RSUs were as follows:
 
Years Ended December 31,
 
2014
 
2013
 
2012
Stock Options(1):
 
 
 
 
 
Volatility
 
 
45%
Risk-free interest rate
 
 
0.7%
Expected life (years)
 
 
4.2
Dividend yield
 
 
Weighted-average fair value per share
 
 
$8.47
 
 
 
 
 
 
ESPP(1):
 
 
 
 
 
Volatility
30%
 
36%
 
47%
Risk-free interest rate
0.1%
 
0.1%
 
0.1%
Expected life (years)
0.5
 
0.5
 
0.5
Dividend yield
0% - 1.8%
 
 
Weighted-average fair value per share
$5.72
 
$5.54
 
$5.53
 
 
 
 
 
 
Market-based RSUs(2)
 
 
 
 
 
Volatility
36%
 
 
Risk-free interest rate
1.6%
 
 
Dividend yield
0% - 2.0%
 
 
Weighted-average fair value per share
$16.89
 
 
________________________________
(1) 
The Black-Scholes-Merton option-pricing model is utilized to estimate the fair value of stock options and ESPP.
(2) 
The fair value of market-based RSUs utilizes the Monte Carlo simulation option pricing model. 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.

Share-Based Compensation Expense

Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Company's Consolidated Statements of Operations (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Cost of revenues - Product
$
5.0

 
$
4.7

 
$
4.6

Cost of revenues - Service
14.2

 
15.4

 
17.0

Research and development
134.5

 
127.6

 
109.1

Sales and marketing
60.2

 
70.9

 
81.6

General and administrative
26.1

 
26.0

 
31.1

Total
$
240.0

 
$
244.6

 
$
243.4



The following table summarizes share-based compensation expense by award type (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Stock options
$
14.9

 
$
31.5

 
$
58.9

RSUs, RSAs, and PSAs
209.7

 
196.8

 
163.7

ESPP
15.4

 
16.3

 
20.8

Total
$
240.0

 
$
244.6

 
$
243.4



The following table presents unrecognized compensation cost, adjusted for estimated forfeitures, recognized over a weighted-average period related to unvested stock options, RSUs, RSAs, and PSAs as of December 31, 2014 (in millions, except years):
 
Unrecognized
Compensation Cost
 
Weighted Average
Period
(In Years)
Stock options
$
11.4

 
1.3
RSUs, RSAs, and PSAs
$
257.8

 
1.7


401(k) Plan

The Company maintains a savings and retirement plan qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended (the "IRC"). Employees meeting the eligibility requirements, as defined under the IRC, may contribute up to the statutory limits each year. The Company currently matches 30% of all eligible employee contributions which vest immediately. The Company’s matching contributions to the plan totaled $20.2 million, $20.7 million, and $20.2 million during the years ended December 31, 2014, 2013, and 2012, respectively.

Deferred Compensation Plan

The Company’s non-qualified deferred compensation (“NQDC”) plan is an unfunded and unsecured deferred compensation arrangement. Under the NQDC plan, officers and other senior employees may elect to defer a portion of their compensation and contribute such amounts to one or more investment funds. The NQDC plan assets are included within short-term investments and offsetting obligations are included within accrued compensation in the Consolidated Balance Sheets. The investments are considered trading securities and are reported at fair value. The realized and unrealized holding gains and losses related to these investments are recorded in other income (expense), net, and the offsetting compensation expense is recorded as operating expenses in the Consolidated Statements of Operations. The deferred compensation liability under the NQDC plan was approximately $16.3 million and $15.4 million as of December 31, 2014 and December 31, 2013, respectively.
Segments (Notes)
Segments
Segments

In 2014, the Company realigned its organization into a One-Juniper structure which includes consolidating each of the Company's R&D and go-to-market functions to reduce complexity, increase clarity of responsibilities, and improve efficiency. As a result of these changes, the consolidated business is considered to be one reportable segment, consistent with how the Company’s chief operating decision maker ("CODM") views the business, allocates resources, and assesses the performance of the Company.

The Company continues to sell its high-performance network products and service offerings across routing, switching, and security to service provider and enterprise markets.

The following table presents net revenues by product and service (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Routing
$
2,223.9

 
$
2,318.0

 
$
2,037.6

Switching
721.2

 
638.0

 
554.8

Security
463.6

 
563.9

 
669.7

Total product
3,408.7

 
3,519.9

 
3,262.1

 
 
 
 
 
 
Total service
1,218.4

 
1,149.2

 
1,103.3

Total
$
4,627.1

 
$
4,669.1

 
$
4,365.4


The Company attributes revenues to geographic region based on the customer’s ship-to location. The following table presents net revenues by geographic region (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Americas:
 
 
 
 
 
United States
$
2,410.6

 
$
2,381.5

 
$
2,067.5

Other
219.7

 
232.0

 
218.4

Total Americas
2,630.3

 
2,613.5

 
2,285.9

Europe, Middle East, and Africa
1,263.3

 
1,256.9

 
1,266.3

Asia Pacific
733.5

 
798.7

 
813.2

Total
$
4,627.1

 
$
4,669.1

 
$
4,365.4



During the years ended December 31, 2014 and 2013, no customer accounted for greater than 10% of the Company's net revenues. During the year ended December 31, 2012, Verizon accounted for 10.3% of the Company's net revenues.

The following table presents geographic information for property and equipment, net and purchased intangible assets, net (in millions):
 
As of December 31,
 
2014
 
2013
United States
$
871.7

 
$
885.6

International
95.0

 
103.6

Property and equipment, net and purchased intangible assets, net
$
966.7

 
$
989.2



The Company tracks assets by physical location. The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of December 31, 2014 and December 31, 2013, were attributable to U.S. operations.
Income Taxes (Notes)
Income Taxes
Income Taxes
 
The components of pretax (loss) income and noncontrolling interest are summarized as follows (in millions):  
 
Years Ended December 31,
 
2014
 
2013
 
2012
Domestic
$
(509.7
)
 
$
248.7

 
$
114.1

Foreign
423.4

 
276.8

 
177.4

Total pretax (loss) income
$
(86.3
)
 
$
525.5

 
$
291.5



The provision for income taxes is summarized as follows (in millions):  
 
Years Ended December 31,
 
2014
 
2013
 
2012
Current provision (benefit):
 

 
 

 
 

Federal
$
180.1

 
$
(12.9
)
 
$
94.3

States
15.2

 
(5.0
)
 
8.4

Foreign
33.7

 
32.5

 
37.1

Total current provision (benefit)
229.0

 
14.6

 
139.8

Deferred provision (benefit):
 
 
 
 
 
Federal
17.3

 
51.2

 
(28.8
)
States
1.2

 
(2.7
)
 
(1.5
)
Foreign
0.5

 
22.6

 
3.5

Total deferred provision (benefit)
19.0

 
71.1

 
(26.8
)
Income tax benefits attributable to employee stock plan activity

 

 
(8.0
)
Total provision (benefit) for income taxes
$
248.0

 
$
85.7

 
$
105.0



The provision for income taxes differs from the amount computed by applying the federal statutory rate to pretax (loss) income as follows (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Expected (benefit) provision at 35% rate
$
(30.2
)
 
$
184.0

 
$
102.0

State taxes (benefit), net of federal benefit
9.5

 
(3.6
)
 
2.0

Foreign income at different tax rates
(90.2
)
 
(37.7
)
 
(11.6
)
Research and development credits
(17.1
)
 
(32.5
)
 
(0.5
)
Share-based compensation
25.3

 
25.6

 
22.4

Non-deductible goodwill impairment
297.5

 

 

Gain on sale of Junos Pulse
75.6

 

 

Release of valuation allowance
(22.8
)
 

 
(3.4
)
Settlement with tax authorities

 
(28.3
)
 

Domestic production activities
(6.8
)
 
(26.3
)
 

Non-deductible compensation
3.2

 
1.5

 
0.6

Equity investment gain on acquisition

 

 
(5.3
)
Other
4.0

 
3.0

 
(1.2
)
Total provision for income taxes
$
248.0

 
$
85.7

 
$
105.0



In 2014, the Company has provided tax on a pre-tax loss primarily due to the non-deductible goodwill charge. In 2013, the Company recorded $64.2 million of net income tax benefit related to items unique to the year. These amounts included $19.7 million for a multi-year claim related to the U.S. production activities deduction, $28.3 million for a tax settlement with the IRS, and $16.2 million of U.S. federal R&D tax credit resulting from the American Taxpayer Relief Act of 2012 signed on January 2, 2013, which retroactively reinstated the U.S. federal R&D tax credit from January 1, 2012 to December 31, 2013.

Deferred income taxes reflect the net tax effects of tax carry-forward items and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows (in millions):
 
As of December 31,
 
2014
 
2013
Deferred tax assets:
 

 
 

Net operating loss carry-forwards
$
1.3

 
$
1.1

Foreign tax credit carry-forwards
69.7

 
63.4

Research and other credit carry-forwards
122.5

 
106.6

Deferred revenue
104.9

 
71.0

Stock-based compensation
55.8

 
86.1

Reserves and accruals not currently deductible
129.8

 
153.9

Other
19.8

 
13.7

Total deferred tax assets
503.8

 
495.8

Valuation allowance
(144.5
)
 
(155.7
)
Deferred tax assets, net of valuation allowance
359.3

 
340.1

Deferred tax liabilities:
 
 
 
Property and equipment basis differences
(35.6
)
 
(3.1
)
Purchased intangibles
(16.7
)
 
(10.1
)
Unremitted foreign earnings
(260.6
)
 
(258.9
)
Deferred compensation and other
(5.1
)
 
(38.7
)
Other

 
(0.4
)
Total deferred tax liabilities
(318.0
)
 
(311.2
)
Net deferred tax assets
$
41.3

 
$
28.9


 
The breakdown between current and long-term deferred tax assets and deferred tax liabilities are as follows (in millions):
 
As of December 31,
 
2014
 
2013
Current deferred tax assets
$
147.0

 
$
79.8

Long-term deferred tax assets
1.7

 
2.4

Long-term deferred tax liabilities
(107.4
)
 
(53.3
)
Total net deferred tax assets
$
41.3

 
$
28.9



As of December 31, 2014, and 2013, the Company had a valuation allowance on its U.S. domestic deferred tax assets of approximately $144.5 million and $155.7 million, respectively. The balance at December 31, 2014 consisted of approximately $125.2 million and $9.7 million against the Company's California and Massachusetts deferred tax assets, respectively, which the Company believes are not more likely than not to be utilized in future years. The remaining deferred tax assets on which the Company recorded a valuation allowance are approximately $9.6 million related to losses that are capital in nature and may carry forward to offset future capital gains only. The valuation allowance decreased $11.2 million in 2014 related to utilization of losses that are capital in nature offset by the increase in the California R&D credit. Valuation allowance increased in 2013 by $14.7 million related to an increase in the California R&D credit.
 
As of December 31, 2014, the Company had federal and California net operating loss carry-forwards of approximately $1.6 million and $27.8 million, respectively. The Company also had California tax credit carry-forwards of approximately $231.9 million. Approximately $16.2 million of the benefit from the California tax credit carry-forwards will be credited to additional paid-in capital when realized on the Company's income tax returns. Unused net operating loss carry-forwards will expire at various dates beginning in the year 2021. The California tax credit carry-forwards will carry forward indefinitely.
 
The Company provides U.S. income taxes on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered indefinitely reinvested outside of the United States. The Company has made no provision for U.S. income taxes on approximately $1.9 billion of cumulative undistributed earnings of certain foreign subsidiaries through December 31, 2014. These earnings are considered indefinitely invested in operations outside of the U.S., as the Company intends to utilize these amounts to fund future expansion of its international operations. If these earnings were distributed to the United States in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, the Company would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Determination of the amount of unrecognized deferred income tax liability related to these earnings is not practicable.

As of December 31, 2014, 2013, and 2012 the total amount of gross unrecognized tax benefits was $199.2 million, $137.6 million, and $136.1 million, respectively. As of December 31, 2014, approximately $164.9 million of the $199.2 million gross unrecognized tax benefits, if recognized, would affect the effective tax rate.
 
A reconciliation of the beginning and ending amount of the Company's total gross unrecognized tax benefits was as follows (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Balance at beginning of year
$
137.6

 
$
136.1

 
$
132.2

Tax positions related to current year:
 
 
 
 
 
Additions
62.5

 
15.8

 
8.8

Tax positions related to prior years:
 
 
 
 
 
Additions
0.6

 
22.6

 
0.9

Reductions

 
(2.2
)
 

Settlements

 
(31.1
)
 
(1.2
)
Lapses in statutes of limitations
(1.5
)
 
(3.6
)
 
(4.6
)
Balance at end of year
$
199.2

 
$
137.6

 
$
136.1


 
As of December 31, 2014, 2013, and 2012 the Company had accrued interest and penalties related to unrecognized tax benefits of $22.3 million, $18.4 million, and $16.7 million, respectively, within other long-term liabilities in the Consolidated Balance Sheets. The Company recognized an expense for net interest and penalties of $2.8 million and $0.6 million, and a benefit of $0.6 million in its Consolidated Statements of Operations during the years ended December 31, 2014, 2013, and 2012, respectively.
 
The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. There is a greater than remote likelihood that the balance of the gross unrecognized tax benefits will decrease by approximately $3.2 million within the next twelve months due to lapses of applicable statutes of limitations and the completion of tax review cycles in various tax jurisdictions.

In 2013, the Company executed a closing agreement with the Appeals Division of the IRS related to its intercompany R&D cost sharing arrangement for the license of intangibles acquired in 2004, 2005, and 2006. The Company reached a final resolution with the IRS on all proposed adjustments for all tax years through 2006, which resulted in a settlement of approximately $19.6 million, including interest.

The Company conducts business globally and, as a result, Juniper Networks or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as the Netherlands, U.K., France, Germany, Japan, China, Australia, India, and the U.S. With few exceptions, the Company is no longer subject to U.S. federal, state and local, and non-U.S. income tax examinations for years before 2004.
 
The Company is currently under examination by the IRS for the 2007 through 2009 tax years and the California Franchise Tax Board for the 2004 through 2006 tax years. The Company is also subject to separate ongoing examinations by the India tax authorities for the 2004 tax year, 2004 through 2008 tax years, and the 2008 through 2010 tax years. The Company is not aware of any other examinations by tax authorities in any other major jurisdictions in which it files income tax returns as of December 31, 2014.

In 2008, the Company received a proposed adjustment from the India tax authorities related to the 2004 tax year. In 2009, the India tax authorities commenced a separate investigation of our 2004 through 2008 tax returns and are disputing the Company's determination of taxable income due to the cost basis of certain fixed assets. The Company accrued $4.6 million in penalties and interest in 2009 related to this matter. The Company understands that in accordance with the administrative and judicial process in India, the Company may be required to make payments that are substantially higher than the amount accrued in order to ultimately settle this issue. The Company strongly believes that any assessment it may receive in excess of the amount accrued would be inconsistent with applicable India tax laws and intends to defend this position vigorously.
 
The Company is pursuing all available administrative remedies relative to these matters. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to these proposed adjustments and the ultimate resolution of these matters is unlikely to have a material effect on its consolidated financial condition or results of operations; however there is still a possibility that an adverse outcome of these matters could have a material effect on its consolidated financial condition and results of operations.
Net Income per Share (Notes)
Net Income Per Share
Net Income per Share

The Company computed basic and diluted net (loss) income per share attributable to Juniper Networks common stockholders as follows (in millions, except per share amounts):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Numerator:
 
 
 
 
 
Net (loss) income
$
(334.3
)
 
$
439.8

 
$
186.5

Denominator:
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
457.4

 
501.8

 
520.9

Dilutive effect of employee stock awards

 
8.5

 
5.3

Weighted-average shares used to compute diluted net income
   per share
457.4

 
510.3

 
526.2

Net (loss) income per share attributable to Juniper Networks common
   stockholders:
 
 
 
 
 
Basic
$
(0.73
)
 
$
0.88

 
$
0.36

Diluted
$
(0.73
)
 
$
0.86

 
$
0.35

 
 
 
 
 
 
Anti-dilutive:
 
 
 
 
 
Potential anti-dilutive shares
20.8

 
13.2

 
32.3



Basic net income per share is computed using net (loss) income available to common stockholders and the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed using net (loss) income available to common stockholders and the weighted-average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Dilutive potential common shares consist of common shares issuable upon exercise of stock options, issuances of ESPP, and vesting of RSUs, RSAs, and PSAs. The Company includes the common shares underlying PSAs in the calculation of diluted net income per share when they become contingently issuable and excludes such shares when they are not contingently issuable. Potentially dilutive common shares were excluded from the computation of diluted net loss per share because their effect would be anti-dilutive.
Commitments and Contingencies (Notes)
Commitments and Contingencies
Commitments and Contingencies

Operating Leases

The following table summarizes the Company’s future minimum payments under non-cancelable operating leases for each of the next five years and thereafter as of December 31, 2014 (in millions):
Years Ending December 31,
Amount
2015
$
41.2

2016
30.1

2017
22.0

2018
14.3

2019
7.5

Thereafter
22.0

Total
$
137.1



The Company leases its facilities and certain equipment under non-cancelable operating leases that expire at various dates through October 31, 2024. Certain leases require the Company to pay variable costs such as taxes, maintenance, and insurance and include renewal options and escalation clauses. Rent expense for 2014, 2013, and 2012 was approximately $46.0 million, $52.8 million, and $63.2 million, respectively.

Purchase Commitments with Contract Manufacturers and Suppliers

In order to reduce manufacturing lead times and ensure adequate component supply, the Company enters into agreements with contract manufacturers and certain suppliers to procure inventory based on the Company's requirements. A significant portion of the Company's purchase commitments arising from these agreements consists of firm and non-cancelable commitments. These purchase commitments totaled $476.2 million as of December 31, 2014.

The Company establishes a liability in connection with purchase commitments related to quantities in excess of its demand forecasts or obsolete materials charges for components purchased by the contract manufacturers based on the Company’s demand forecast or customer orders. As of December 31, 2014, the Company had accrued $25.3 million based on its estimate of such charges. This includes $9.4 million related to net losses on firm and non-cancelable purchase commitments.

Long-Term Debt and Interest Payment on Long-Term Debt

As of December 31, 2014, the Company held long-term debt consisting of senior notes with a carrying value of $1,349.0 million. Of these Notes, $300.0 million will mature in 2016 and bears interest at a fixed rate of 3.10%, $300.0 million will mature in 2021 and bears interest at a fixed rate of 4.60%, $350.0 million will mature in 2024 and bears interest at a fixed rate of 4.50%, and $400.0 million will mature in 2041 and bears interest at a fixed rate of 5.95%. Interest on the Notes is payable semiannually. See Note 10, Long-Term Debt and Financing, for further discussion of the Company's long-term debt.

Other Contractual Obligations

As of December 31, 2014, other contractual obligations primarily consisted of $46.0 million in indemnity-related and service related escrows, as required in connection with certain asset purchases and acquisitions completed between 2005 and 2014, campus build-out obligations of $3.5 million, and $19.2 million of agreements that are firm, non-cancelable and specify terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of payment.
Tax Liabilities

As of December 31, 2014, the Company had $177.5 million included in long-term income taxes payable in the Consolidated Balance Sheets for unrecognized tax positions. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to this amount due to uncertainties in the timing of tax audit outcomes.

Guarantees

The Company enters into agreements with customers that contain indemnification provisions relating to potential situations where claims could be alleged that the Company’s products infringe the intellectual property rights of a third-party. The Company also has financial guarantees consisting of guarantees of product and service performance, guarantees related to third-party customer-financing arrangements, custom and duty guarantees, and standby letters of credit for certain lease facilities. As of December 31, 2014 and December 31, 2013, the Company had $26.2 million and $40.1 million, respectively, in financing arrangements, bank guarantees, and standby letters of credit related to these financial guarantees, of which $22.2 million in financing guarantees was recorded in other accrued liabilities and other long-term liabilities in the Consolidated Balance Sheets as of December 31, 2014. See Note 10, Long-Term Debt and Financing, for further discussion of the Company's third-party customer financing arrangements that contain guarantee provisions.

Legal Proceedings

Investigations

The U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) are conducting investigations into possible violations by the Company of the U.S. Foreign Corrupt Practices Act (FCPA). The Company is cooperating with these agencies regarding these matters. The Company’s Audit Committee, with the assistance of independent advisors, has been investigating and conducting a thorough review of possible violations of the FCPA, and has made recommendations for remedial measures, including employee disciplinary actions in foreign jurisdictions, which the Company has implemented and continues to implement. The Company is unable to predict the duration, scope or outcome of the SEC and DOJ investigations, but believes that an adverse outcome is reasonably possible. However, the Company is not able to estimate a reasonable range of possible loss. The SEC and/or DOJ could take action against us or we could agree to settle. In such event, we could be required to pay substantial fines and sanctions and/or implement additional remedial measures; in addition, it may be determined that we violated the FCPA.

Other Litigation

In addition to the investigations discussed above, the Company is involved in other disputes, litigation, and other legal actions. The Company is aggressively defending these current litigation matters, and while there can be no assurances and the outcome of these matters is currently not determinable, and the Company currently believes that none of these existing claims or proceedings are likely to have a material adverse effect on its financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could adversely affect gross margins in future periods. If any of those events were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, if any, which could result in the need to adjust the liability and record additional expenses.

We record an accrual for loss contingencies for legal proceedings when we believe that an unfavorable outcome is both (a) probable and (b) the amount or range of any possible loss is reasonably estimable. We have not recorded any accrual for loss contingencies associated with such legal proceedings or the investigations discussed above.
Selected Quarterly Financial Data (Unaudited) (Notes)
Selected Quarterly Financial Data (Unaudited)
Selected Quarterly Financial Data (Unaudited)
 

The tables below set forth selected unaudited financial data for each quarter of the two years ended December 31, 2014 (in millions, except per share amounts):
 
Year Ended December 31, 2014
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 

 
 

 
 

 
 

Product
$
876.0

 
$
929.2

 
$
809.5

 
$
794.0

Service
294.1

 
300.3

 
316.4

 
307.6

Total net revenues
1,170.1

 
1,229.5

 
1,125.9

 
1,101.6

Cost of revenues:
 
 
 
 
 
 
 
Product
326.6

 
359.3

 
290.0

 
310.9

Service
123.4

 
122.0

 
121.1

 
115.6

Total cost of revenues (1)
450.0

 
481.3

 
411.1

 
426.5

Gross margin
720.1

 
748.2

 
714.8

 
675.1

Operating expenses:
 
 
 
 
 
 
 
Research and development
264.0

 
255.5

 
253.2

 
233.5

Sales and marketing
273.4

 
258.0

 
249.2

 
243.0

General and administrative
74.9

 
60.6

 
55.0

 
40.6

Restructuring and other (credit) charges(1)
114.0

 
58.2

 
(15.0
)
 
9.8

Impairment of goodwill(2)

 

 

 
850.0

Total operating expenses
726.3

 
632.3

 
542.4

 
1,376.9

Operating (loss) income
(6.2
)
 
115.9

 
172.4

 
(701.8
)
Other income (expense), net(3)
154.2

 
178.6

 
(6.8
)
 
7.4

Income (loss) before income taxes
148.0

 
294.5

 
165.6

 
(694.4
)
Income tax provision
37.4

 
73.4

 
62.0

 
75.2

Net income (loss)
$
110.6

 
$
221.1

 
$
103.6

 
$
(769.6
)
 
 
 
 
 
 
 
 
Net income (loss) per share:(4)
 
 
 
 
 
 
 
Basic
$
0.23

 
$
0.47

 
$
0.23

 
$
(1.81
)
Diluted
$
0.22

 
$
0.46

 
$
0.23

 
$
(1.81
)
Cash dividends declared per common stock(5)
$

 
$

 
$
0.10

 
$
0.10

_______________________________
(1) 
In the first quarter of 2014, the company initiated a 2014 Restructuring Plan, which consisted of $84.7 million asset write-downs, $28.0 million of severance costs, and $0.8 million of contract terminations that were recorded in restructuring and other charges. In addition, the Company recorded inventory write-downs related to the acceleration of the end-of-service life of certain products totaling $8.4 million to cost of revenues. In the second quarter, the Company recorded $9.9 million of severance costs, $37.6 million of facility consolidation and closures, $8.9 million of asset write-downs, and $1.5 million of contract terminations that were recorded to restructuring and other charges. The Company also recorded inventory write-downs of $11.5 million and a charge related to products with contract manufacturers of $2.3 million for acceleration of the end-of-life service of certain products to cost of revenues. In the third quarter, the Company recorded $7.1 million of severance costs, a benefit of $25.0 million of facility consolidation and closures as a result of a lease assignment, and $2.9 million of asset write-downs, that were recorded to restructuring and other (credit) charges. In the fourth quarter, the Company recorded $6.9 million in severance costs, $1.6 million of facility consolidation and closures, and $20.6 million in asset impairment and write-downs.
(2) 
During the fourth quarter of 2014, the Company recorded an $850.0 million goodwill impairment charge related to its Security reporting unit.
(3) 
In the first quarter of 2014, the Company recorded a gain of $163.0 million related to the sale of investments which were converted from privately-held investments to publicly-traded equity upon IPO. In the second quarter, the Company entered into a settlement agreement with PAN, which resulted in a realized gain on legal settlement of $195.3 million, net of legal fees. All such PAN securities were sold in the third quarter, and the Company recorded an additional $0.8 million gain. In the fourth quarter, the Company recorded a gain of $19.6 million on the sale of Junos Pulse.
(4)  
Net income (loss) per share is computed independently. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year or any cumulative interim period.
(5) 
On July 22, 2014 and October 23, 2014 the company declared a quarterly cash dividend of $0.10 per share of common stock to stockholders on record as of the close of business September 2, 2014 and December 2, 2014, respectively.
Year Ended December 31, 2013
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 

 
 

 
 

 
 

Product
$
781.8

 
$
863.8

 
$
900.8

 
$
973.5

Service
277.4

 
286.9

 
284.8

 
300.1

Total net revenues
1,059.2

 
1,150.7

 
1,185.6

 
1,273.6

Cost of revenues:
 
 
 
 
 
 
 
Product
278.2

 
321.3

 
325.5

 
351.6

Service
110.2

 
108.9

 
113.6

 
118.4

Total cost of revenues(2)
388.4

 
430.2

 
439.1

 
470.0

Gross margin
670.8

 
720.5

 
746.5

 
803.6

Operating expenses:
 
 
 
 
 
 
 
Research and development(1)
262.2

 
257.7

 
264.6

 
258.7

Sales and marketing(4)
256.1

 
267.1

 
269.5

 
283.2

General and administrative(4)
58.5

 
49.2

 
61.4

 
48.2

Restructuring and other charges(2)
7.0

 
8.0

 
6.0

 
18.1

Total operating expenses
583.8

 
582.0

 
601.5

 
608.2

Operating income
87.0

 
138.5

 
145.0

 
195.4

Other expense, net
(10.1
)
 
(12.6
)
 
(7.5
)
 
(10.2
)
Income before income taxes
76.9

 
125.9

 
137.5

 
185.2

Income tax (benefit) provision
(14.1
)
 
28.0

 
38.4

 
33.4

Net income
$
91.0

 
$
97.9

 
$
99.1

 
$
151.8

 
 
 
 
 
 
 
 
Net income per share(3)
 
 
 
 
 
 
 
Basic
$
0.18

 
$
0.19

 
$
0.20

 
$
0.30

Diluted
$
0.18

 
$
0.19

 
$
0.19

 
$
0.30

_______________________________
(1) 
In the second quarter of 2013, the Company extended the useful lives of certain computers and equipment based on actual historical usage, which demonstrated longer useful lives, as well as the planned use of these assets. The change was accounted for as a change in estimate and applied prospectively. This change in accounting estimate decreased depreciation expense within research and development expense by approximately $11.0 million or $0.01 per diluted share for the second quarter of 2013, $9.4 million or $0.01 for the third quarter of 2013, and $7.9 million or $0.01 for the fourth quarter of 2013.
(2)  
In the third quarter of 2013, the Company implemented the 2013 Restructuring Plan for workforce reductions, contract terminations, and project cancellations and recorded restructuring charges of $7.4 million and $3.7 million to operating expenses and cost of revenues, respectively. In the fourth quarter of 2013, the Company continued to implement restructuring activities under the 2013 Restructuring Plan and primarily recorded charges to operating expenses of $17.6 million.
(3)  
Net income per share is computed independently. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year or any cumulative interim period.
(4) 
Certain amounts in the prior quarters' Condensed Consolidated Statements of Operations have been reclassified to conform to the current year presentation.
Subsequent Events (Notes)
Subsequent Events
Subsequent Events

Dividend Declaration

On January 27, 2015, the Company announced that it had declared a quarterly cash dividend of $0.10 per share of common stock payable on March 24, 2015 to stockholders of record as of the close of business on March 3, 2015.

Stock Repurchase Activities

Subsequent to December 31, 2014, through the filing of this Report, the Company repurchased 10.9 million shares of its common stock, for an aggregate purchase price of $248.1 million at an average price of $22.75 per share, under the 2014 Stock Repurchase Program and were settled prior to the filing of this Report. Under the 2014 Stock Repurchase Program, the Company has $926.9 million authorized funds remaining as of the filing date.
Schedule II- Valuation and Qualifying Account
Schedule II - Valuation and Qualifying Account
Allowance for Doubtful Accounts
Balance at
Beginning of
Year
 
Charged to
(Reversed from)
Costs and
Expenses
 
Write-offs,
Net of
Recoveries
 
Balance at
End of
Year
2014
$
5.4

 
$
(0.7
)
 
$

 
$
4.7

2013
$
9.5

 
$
(3.8
)
 
$
(0.3
)
 
$
5.4

2012
$
9.5

 
$
0.1

 
$
(0.1
)
 
$
9.5



 
 
 
Additions
 
 
 
 
Sales Return Reserve
Balance at
Beginning of
Year
 
Charged as a
Reduction in
Revenues
 
Charged to
Other Accounts
 
Used
 
Balance at
End of
Year
2014
$
49.0

 
$
53.2

 
$
80.9

 
$
(132.9
)
 
$
50.2

2013
$
52.7

 
$
35.0

 
$
61.5

 
$
(100.2
)
 
$
49.0

2012
$
52.0

 
$
40.0

 
$
48.6

 
$
(87.9
)
 
$
52.7

Significant Accounting Policies (Policies)
Use of Estimates

The preparation of the financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent there are material differences between the Company's estimates and the actual results, the Company's future consolidated results of operation may be affected.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, demand deposits with banks, highly liquid investments in money market funds, commercial paper, government securities, certificates of deposit, and corporate debt securities, which are readily convertible into cash. All highly liquid investments purchased with original maturities of three months or less are classified as cash and cash equivalents.
Investments in Available-for-Sale and Trading Securities

The Company's investments in publicly-traded debt and equity securities are classified as available-for-sale. Available-for-sale investments are initially recorded at cost and periodically adjusted to fair value in the Consolidated Balance Sheets. Unrealized gains and losses on these investments are reported as a separate component of accumulated other comprehensive income. Realized gains and losses are determined based on the specific identification method and are reported in the Consolidated Statements of Operations.

The Company periodically evaluates its investments to determine if impairment charges are required. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time the investment has been in a loss position, the extent to which the fair value has been less than the Company's cost basis, the investment's financial condition, and near-term prospects of the investee. If the Company determines that the decline in an investment's fair value is other than temporary, the difference is recognized as an impairment loss in its Consolidated Statements of Operations. The Company's non-qualified compensation plan is invested in mutual funds which are classified as trading securities and reported at fair value in the Consolidated Balance Sheets. The realized and unrealized holding gains and losses are reported in the Consolidated Statements of Operations.
Privately-Held Investments

The Company has privately-held investments, which are included in other long-term assets in the Consolidated Balance Sheets. These investments include debt and redeemable preferred stock securities that are carried at fair value, and non-redeemable preferred stock securities that are carried at cost. The investments carried at cost are adjusted for any impairment, as the Company does not have a controlling interest and does not have the ability to exercise significant influence over these companies. These investments are inherently high risk as the market for technologies or products manufactured by these companies are usually in their early stages at the time of the investment by the Company and such markets may never be significant. The Company measures the fair value of privately-held investments using an analysis of the financial conditions and near term prospects of the investees, including recent financing activities and their capital structure. Realized gains and losses, if any, are reported in the Consolidated Statements of Operations.
Fair Value

Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it transacts, and considers assumptions that market participants would use when pricing the asset or liability. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. These inputs are valued using market based approaches.

Level 3 – Inputs are unobservable inputs based on the Company’s assumptions. These inputs, if any, are valued using internal financial models.

Derivatives

The Company uses derivatives to partially offset its market exposure to fluctuations in certain foreign currencies. The Company does not enter into derivatives for speculative or trading purposes.

The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to operating expenses. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of one year or less. These derivatives are carried at fair value and the effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income, and upon occurrence of the forecasted transaction, is subsequently reclassified into the costs of services or operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments in other income (expense), net, on its Consolidated Statements of Operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income are expected to be reclassified into earnings within the next twelve months.

The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the remeasurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives are carried at fair value with changes recorded in other income (expense), net in the Consolidated Statements of Operations. Changes in the fair value of these derivatives are largely offset by remeasurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. These foreign exchange forward contracts have maturities of one year or less.
Inventory
Inventory consists primarily of component parts to be used in the manufacturing process and finished goods in-transit, and is stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. A charge is recorded to cost of product when inventory is determined to be in excess of anticipated demand or considered obsolete. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in the newly established cost basis.
Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method, over the estimated useful lives of the following assets:
 
Estimated Useful Life (years)
Computers, equipment, and software
3 to 7
Furniture and fixtures
5
Building and building improvements
7 to 40
Land improvements
5 to 40
Leasehold improvements
Lease term, not to exceed 10 years


Construction in progress is related to the construction or development of property and equipment that have not yet been placed in service for their intended use. Depreciation for equipment commences once it is placed in service and depreciation for buildings and leasehold improvements commences once they are ready for their intended use.

Goodwill and Other Long-Lived Assets

Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition that are not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Goodwill is tested for impairment annually during the fourth quarter or more frequently if certain circumstances change that would more likely than not indicate that the fair value of a reporting unit is below its carrying value. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the asset's implied fair value. Other intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized but are assessed for potential impairment annually or when events or circumstances indicate that their carrying amounts might be impaired.

Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset, or asset group, to estimated undiscounted future cash flows expected to be generated by the asset, or asset group. An impairment charge is recognized by the amount by which the carrying amount of the asset, or asset group, exceeds its fair value.

The Company amortizes intangible assets with estimable useful lives on a straight-line basis over their useful lives.
Revenue Recognition

Revenue is recognized when all of the following criteria have been met:

Persuasive evidence of an arrangement exists. The Company generally relies upon sales contracts or agreements, and customer purchase orders to determine the existence of an arrangement.

Delivery has occurred. The Company uses shipping terms and related documents, or written evidence of customer acceptance, when applicable, to verify delivery or performance.

Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment.

Collectability is reasonably assured. The Company assesses collectability based on creditworthiness of customers as determined by its credit checks, their payment histories, or changes in circumstances that indicate that collectability is not reasonably assured.

When sales arrangements contain multiple elements the Company allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on either vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“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 largely interchangeable competitor products or services in stand-alone sales to similar 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 third-party products with similar functionality typically cannot be obtained and therefore TPE is not used. ESP is established considering multiple factors including, but not limited to pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles.

In multiple element arrangements where software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the residual method when VSOE of fair value of the undelivered items exists. Under the residual method, the amount of revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. If VSOE of one or more undelivered items does not exist, revenue from the entire arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless maintenance services is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the maintenance service period.

The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or subject to customer-specific return or refund privileges.

The Company records reductions to revenue for estimated product returns and pricing adjustments, such as rebates and price protection, in the same period that the related revenue is recorded. The amount of these reductions is based on historical sales returns and price protection credits, specific criteria outlined in rebate agreements, and other factors known at the time.

A portion of the Company's sales is made through distributors under agreements allowing for pricing credits or rights of return. As reliable estimates of these credits or returns cannot be made, product revenue on sales made through these distributors is recognized upon sell-through as reported by the distributors to the Company. Deferred revenue on shipments to distributors reflects the effects of distributor pricing credits given and the amount of gross margin expected to be realized upon sell-through. Deferred revenue is recorded net of the related product costs of revenue.

Service revenues include revenue from maintenance, training, and professional services. Maintenance is offered under renewable contracts. Revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period, which is generally one to three years. Revenue from training and professional services is recognized as services are completed or ratably over the contractual period, which is generally one year or less.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based on the Company's assessment of the collectability of customer accounts. The Company regularly reviews its receivables that remain outstanding past their applicable payment terms and establishes an allowance by considering factors such as historical experience, credit quality, and age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay.
Warranty Reserves

The Company generally offers a one-year warranty on most of its hardware products, and a 90-day warranty on the media that contains the software embedded in the products. Warranty costs are recognized as part of the Company's cost of sales based on associated material costs, logistics costs, labor costs, and overhead at the time revenue is recognized. Material costs are estimated primarily based upon the historical costs to repair or replace product returns within the warranty period. Labor, logistics and overhead costs are estimated primarily based upon historical trends in the cost to support customer cases within the warranty period.
Contract Manufacturer Liabilities

The Company establishes a liability for non-cancelable, non-returnable purchase commitments with its contract manufacturers for carrying charges, quantities in excess of its demand forecasts, or obsolete material charges for components purchased by the contract manufacturers to meet the Company’s demand forecast or customer orders. The demand forecasts are based upon historical trends and analysis from the Company's sales and marketing organizations, adjusted for overall market conditions.
Research and Development

Costs to research, design, and develop the Company's products are expensed as incurred.
Software Development Costs

Capitalization of software development costs for software to be sold, leased, or otherwise marketed begins when a product's technological feasibility has been established and ends when a product is available for general release to customers. Generally, the Company's products are released soon after technological feasibility has been established. As a result, costs incurred between achieving technological feasibility and product general availability have not been significant.

The Company capitalizes costs associated with internal-use software systems that have reached the application development stage and are primarily attributable to the Company's enterprise resource planning ("ERP") implementation. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related costs for employees, who are directly associated with the development of the applications.
Advertising

Advertising costs are charged to sales and marketing expense as incurred. Advertising expense was $19.2 million, $20.1 million, and $20.0 million, for 2014, 2013, and 2012, respectively.
Foreign Currency

Assets and liabilities of foreign operations with non-U.S. Dollar functional currency are translated to U.S. Dollars using exchange rates in effect at the end of the period. Revenue and expenses are translated to U.S. Dollars using average exchange rates for the period. The resulting translation adjustments are included in the Company’s Consolidated Balance Sheets in the stockholders’ equity section as a component of accumulated other comprehensive income. For the Company’s international subsidiaries in which the functional currency is the U.S. dollar, the Company records foreign exchange gains and losses for assets and liabilities denominated in non-US dollar currencies. These remeasurement adjustments are recorded in other income (expense), net in the Consolidated Statements of Operations.
Loss Contingencies

The Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. Management considers the likelihood of loss related to an asset, or the incurrence of a liability, as well as its ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to determine whether such accruals should be adjusted and whether new accruals are required.
Share-Based Compensation

The Company measures and recognizes compensation cost for all share-based awards made to employees and directors, including employee stock options, stock awards, stock units, and employee stock purchases related to the Employee Stock Purchase Plan ("ESPP"). Share-based compensation expense is based on the fair value of the underlying awards and amortized on a straight-line basis, net of estimated forfeitures.

The Company utilizes the Black-Scholes-Merton (“BSM”) option-pricing model to estimate the fair value of its stock options and Employee Stock Purchase Plan ("ESPP") shares. The BSM model requires various highly subjective assumptions that represent management's best estimates of volatility, risk-free interest rate, expected life, and dividend yield. The Company estimates expected volatility based on the implied volatility of market-traded options, on the Company's common stock, adjusted for other relevant factors including historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options and ESPP. The expected life of a stock option is based on historical experience of employee exercises and post-vesting termination behavior as well as the potential effect from options that have not been exercised. The expected life of ESPP approximates the offering period.

The Company determines the fair value of its restricted stock units ("RSUs"), restricted stock awards ("RSAs"), and performance share awards ("PSAs") based on the closing market price of the Company’s common stock on the date of grant, adjusted by the present value of the expected dividend.

For market-based RSUs, the Company estimates the fair value and derived service period using the Monte Carlo simulation option pricing model ("Monte Carlo model"). The determination of the grant date fair value and derived service periods using the Monte Carlo model is affected by our stock price as well as various highly subjective assumptions that represent management's best estimates of volatility, risk-free interest rate, and dividend yield. The Company estimates expected volatility based on the implied volatility of market-traded options, on the Company's common stock, adjusted for other relevant factors including historical volatility of the Company’s common stock over the contractual life of the Company's market-based RSUs.

Provision for Income Taxes

Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized.
The Company accounts for uncertainty in income taxes using a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.

Concentrations of Risk

Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company invests only in high-quality credit instruments and maintains its cash, cash equivalents and available-for-sale investments in fixed income securities with several high-quality institutions. Deposits held with banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and, therefore, bear minimal credit risk.

The Company’s derivatives expose it to credit risk to the extent that counterparties may be unable to meet the terms of the agreement. To mitigate concentration of risk related to its derivatives, the Company establishes counterparty limits to major credit-worthy financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored and the derivatives transacted with these entities are relatively short in duration. Therefore, the Company does not expect material losses as a result of defaults by counterparties.

Generally, credit risk with respect to accounts receivable is diversified due to the number of entities comprising the Company's customer base and their dispersion across different geographic locations throughout the world. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. During the years ended December 31, 2014 and December 31, 2013, no single customer accounted for 10% or more of net revenues. During the year ended December 31, 2012, Verizon Communications, Inc. ("Verizon") accounted for 10.3% of net revenues.

The Company relies on sole suppliers for certain of its components such as application-specific integrated circuits ("ASICs") and custom sheet metal. Additionally, the Company relies primarily on a limited number of significant independent contract manufacturers and outside design manufacturers for the production of its products. The inability of any supplier or manufacturer to fulfill supply requirements of the Company could negatively impact future operating results.
Recent Accounting Pronouncements

In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01 (Subtopic 225-20) - Income Statement - Extraordinary and Unusual Items, which eliminates the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In December 2014, the FASB issued ASU No. 2014-17 (Topic 805) - Business Combinations, which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. ASU 2014-17 is effective on November 18, 2014. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In November 2014, the FASB issued ASU No. 2014-16 (Topic 815) - Derivatives and Hedging, which provides clarification on how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features in evaluating the host contract and that no single term or feature would necessarily determine the economic characteristics and risks of the host contract ASU 2014-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendment should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the year for which the amendments are effective. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements.

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15 (Subtopic 205-40) - Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ("ASU 2014-15") which provides guidance about management's responsibility to evaluate whether or not there is substantial doubt about the Company's ability to continue as a going concern and to provide related footnote disclosure. ASU 2014-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early application is permitted. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In June 2014, the FASB issued ASU No. 2014-12 (Topic 718) - Compensation - Stock Compensation ("ASU 2014-12") which provides guidance that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period is a performance condition. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost for such an award would be recognized over the required service period, if it is probable that the performance condition will be achieved. ASU 2014-12 is effective for all entities for annual periods beginning after December 15, 2015 and interim periods within those annual periods. ASU 2014-12 should be applied on a prospective basis to awards that are granted or modified on or after the effective date. The adoption of this standard is not expected to have an impact on the Company's Consolidated Financial Statements.

In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers ("ASU 2014-09") which provides guidance for revenue recognition. This ASU affects all contracts that the Company enters into with customers to transfer goods and services or for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard's core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so, the Company will need to use additional judgment and estimates than under the existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. Accordingly, the ASU will be effective for the Company beginning fiscal year 2017. The Company is currently evaluating the impact of the adoption on its Consolidated Financial Statements.

In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08") which raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Company has determined that this pronouncement would not have a material impact on the Company's financial position or results of operations.
Significant Accounting Policies Significant Accounting Policies (Tables)
Property and equipment useful life
Depreciation is calculated using the straight-line method, over the estimated useful lives of the following assets:
 
Estimated Useful Life (years)
Computers, equipment, and software
3 to 7
Furniture and fixtures
5
Building and building improvements
7 to 40
Land improvements
5 to 40
Leasehold improvements
Lease term, not to exceed 10 years
Business Combinations (Tables)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2012
Business Combinations [Abstract]
 
 
Schedule of purchase consideration allocation for acquisitions
 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The following table presents the purchase consideration allocations for these acquisitions based upon acquisition-date fair values, including cash and cash equivalents acquired (in millions):
 
2014 Acquisitions
 
2013 Acquisitions
 
2012 Acquisitions
Net tangible assets acquired
$

 
$
0.1

 
$
3.5

Net liabilities acquired
(2.7
)
 

 

Intangible assets acquired
17.8

 
9.9

 
54.1

Goodwill
13.6

 

 
129.7

    Total
$
28.7

 
$
10.0

 
$
187.3

The following table presents details of the Company's intangible assets acquired through the business combination completed during the twelve months ended December 31, 2014 (in millions, except years):
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
Existing technology
7
 
$
10.7

Customer relationships
7
 
6.0

Trade name
4
 
0.6

Backlog
1
 
0.2

Non-compete agreements
2
 
0.3

Total
7
 
$
17.8

The following table presents details of the intangible assets acquired for the business combinations completed during 2012 as of their respective acquisition dates (in millions, except years):
 
Contrail
 
Mykonos
 
BitGravity
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
Existing technology
 
$

 
6
 
$
19.3

 
3
 
$
12.4

Trade name and trademarks
 

 
7
 
1.0

 
 

In-process research and development
N/A
 
17.4

 
N/A
 
4.0

 
 

Total
 
$
17.4

 
6
 
$
24.3

 
3
 
$
12.4

Cash Equivalents and Investments (Tables)

The following tables summarize the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of December 31, 2014 and December 31, 2013 (in millions):
 
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 includes the Company's non-qualified deferred compensation plan assets.

 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
As of December 31, 2013
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
Asset-backed securities
$
249.9

 
$
0.1

 
$
(0.1
)
 
$
249.9

Certificates of deposit
27.6

 

 

 
27.6

Commercial paper
6.9

 

 

 
6.9

Corporate debt securities
813.6

 
2.0

 
(0.3
)
 
815.3

Foreign government debt securities
10.7

 

 

 
10.7

Government-sponsored enterprise obligations
306.2

 
0.1

 
(0.1
)
 
306.2

U.S. government securities
303.3

 
0.1

 
(0.1
)
 
303.3

Total fixed income securities
1,718.2

 
2.3

 
(0.6
)
 
1,719.9

Money market funds
1,043.7

 

 

 
1,043.7

Mutual funds
3.9

 
0.1

 

 
4.0

Publicly-traded equity securities
12.0

 
104.5

 
(1.9
)
 
114.6

Total available-for-sale securities
2,777.8

 
106.9

 
(2.5
)
 
2,882.2

Trading securities in mutual funds(1)
15.4

 

 

 
15.4

Total
$
2,793.2

 
$
106.9

 
$
(2.5
)
 
$
2,897.6

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
996.2

 
$

 
$

 
$
996.2

Restricted investments
87.5

 
0.1

 

 
87.6

Short-term investments
459.0

 
104.9

 
(2.0
)
 
561.9

Long-term investments
1,250.5

 
1.9

 
(0.5
)
 
1,251.9

Total
$
2,793.2

 
$
106.9

 
$
(2.5
)
 
$
2,897.6


_______________________________
(1)
Balance includes the Company's non-qualified deferred compensation plan assets.
The following table presents the contractual maturities of the Company's total fixed income securities as of December 31, 2014 (in millions):
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
Due in less than one year
$
337.5

 
$
0.1

 
$
(0.2
)
 
$
337.4

Due between one and five years
1,134.2

 
0.4

 
(1.4
)
 
1,133.2

Total
$
1,471.7

 
$
0.5

 
$
(1.6
)
 
$
1,470.6

The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of December 31, 2014 and December 31, 2013 (in millions):
 
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.

 
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, 2013
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities(1)
$
153.0

 
$
(0.1
)
 
$
0.6

 
$

 
$
153.6

 
$
(0.1
)
Corporate debt securities(1)
156.1

 
(0.3
)
 
9.7

 

 
165.8

 
(0.3
)
Foreign government debt securities(2)
10.0

 

 

 

 
10.0

 

Government-sponsored enterprise obligations
123.1

 
(0.1
)
 

 

 
123.1

 
(0.1
)
U.S. government securities
119.7

 
(0.1
)
 

 

 
119.7

 
(0.1
)
Total fixed income securities
561.9

 
(0.6
)
 
10.3

 

 
572.2

 
(0.6
)
Publicly-traded equity securities
6.8

 
(1.9
)
 

 

 
6.8

 
(1.9
)
Total available-for-sale securities
$
568.7

 
$
(2.5
)
 
$
10.3

 
$

 
$
579.0

 
$
(2.5
)
 ________________________________
(1) 
Balances 12 months or greater include investments that were in an immaterial unrealized loss position as of December 31, 2013.
(2) 
Balances less than 12 months include investments that were in an immaterial unrealized loss position as of December 31, 2013.
Fair Value Measurements (Tables)
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables provide a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Consolidated Balance Sheets (in millions):
 
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 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 acquisitions related escrows.
(2) 
Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust.
(3) 
Balance relates to the investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.
 
Fair Value Measurements at December 31, 2013 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
$

 
$
249.9

 
$

 
$
249.9

Certificates of deposit

 
27.6

 

 
27.6

Commercial paper

 
6.9

 

 
6.9

Corporate debt securities

 
815.3

 

 
815.3

Foreign government debt securities

 
10.7

 

 
10.7

Government-sponsored enterprise obligations

 
306.2

 

 
306.2

Money market funds (1)
1,043.7

 

 

 
1,043.7

Mutual funds (2)
4.0

 

 

 
4.0

Publicly-traded equity securities
114.6

 

 

 
114.6

U.S. government securities
197.2

 
106.1

 

 
303.3

Total available-for-sale securities
1,359.5

 
1,522.7

 

 
2,882.2

Trading securities in mutual funds (3)
15.4

 

 

 
15.4

Privately-held debt securities

 

 
28.1

 
28.1

Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts

 
3.0

 

 
3.0

Total assets measured at fair value
$
1,374.9

 
$
1,525.7

 
$
28.1

 
$
2,928.7

Liabilities measured at fair value:
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
Foreign exchange contracts
$

 
$
(0.7
)
 
$

 
$
(0.7
)
Total liabilities measured at fair value
$

 
$
(0.7
)
 
$

 
$
(0.7
)
 
 
 
 
 
 
 
 
Total assets measured at fair value, reported as:
 
 
 
 
 
 
 
Cash equivalents
$
965.1

 
$
31.1

 
$

 
$
996.2

Restricted investments
87.6

 

 

 
87.6

Short-term investments
246.5

 
315.4

 

 
561.9

Long-term investments
75.7

 
1,176.2

 

 
1,251.9

Prepaid expenses and other current assets

 
3.0

 

 
3.0

Other long-term assets

 

 
28.1

 
28.1

Total assets measured at fair value
$
1,374.9

 
$
1,525.7

 
$
28.1

 
$
2,928.7

 
 
 
 
 
 
 
 
Total liabilities measured at fair value, reported as:
 
 
 
 
 
 
 
Other accrued liabilities
$

 
$
(0.7
)
 
$

 
$
(0.7
)
Total liabilities measured at fair value
$

 
$
(0.7
)
 
$

 
$
(0.7
)
_______________________________
(1) 
Balance includes $83.6 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 the restricted investments measured at fair market value of the Company's India Gratuity Trust.
(3) 
Balance relates to the investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.
Derivative Instruments (Tables)
Schedule of Derivative Instruments
The notional amount of the Company's foreign currency derivatives are summarized as follows (in millions):
 
As of December 31,
 
2014
 
2013
Cash flow hedges
$
160.7

 
$
137.6

Non-designated derivatives
78.0

 
144.4

     Total
$
238.7

 
$
282.0

Goodwill and Purchased Intangible Assets (Tables)
The following table presents the goodwill activity (in millions):
 
Total
December 31, 2012
$
4,057.8

Foreign currency translation adjustment
(0.1
)
December 31, 2013
4,057.7

Additions due to business combination
13.6

Impairment
(850.0
)
Divestiture
(239.8
)
December 31, 2014
$
2,981.5

The Company’s purchased intangible assets were as follows (in millions):
 
Gross
 
Accumulated
Amortization
 

Impairments and
Other Charges
 
Net
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

 
 
 
 
 
 
 
 
As of December 31, 2013
 
 
 
 
 
 
 
Intangible assets with finite lives:
 
 
 
 
 
 
 
Technologies and patents
$
581.4

 
$
(453.4
)
 
$
(30.5
)
 
$
97.5

Customer contracts, support agreements, and
   related relationships
74.3

 
(62.7
)
 
(2.2
)
 
9.4

Total purchased intangible assets
$
655.7

 
$
(516.1
)
 
$
(32.7
)
 
$
106.9

The following table presents the amortization of intangible assets included in the Consolidated Statements of Operations (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Cost of revenues
$
30.9

 
$
27.3

 
$
27.6

Operating expenses:
 
 
 
 
 
Sales and marketing
4.2

 
3.4

 
3.5

General and administrative
1.2

 
1.2

 
1.2

Total operating expenses
5.4

 
4.6

 
4.7

Total
$
36.3

 
$
31.9

 
$
32.3

As of December 31, 2014, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):
Years Ending December 31,
Amount
2015
$
24.2

2016
13.8

2017
8.9

2018
5.2

2019
4.9

Thereafter
5.4

Total
$
62.4

Other Financial Information (Tables)
Total inventories consisted of the following (in millions):
 
As of December 31,
 
2014
 
2013
Production materials
$
38.3

 
$
51.3

Finished goods
24.2

 
1.4

Inventories
$
62.5

 
$
52.7

Property and equipment, net, consisted of the following (in millions):
 
As of December 31,
 
2014
 
2013
Computers and equipment
$
806.1

 
$
794.6

Software
161.2

 
108.4

Leasehold improvements
179.5

 
202.6

Furniture and fixtures
33.7

 
42.5

Building and building improvements
238.4

 
242.6

Land and land improvements
241.0

 
238.9

Construction-in-process
70.3

 
79.5

Property and equipment, gross
1,730.2

 
1,709.1

Accumulated depreciation
(825.9
)
 
(826.8
)
Property and equipment, net
$
904.3

 
$
882.3

Other long-term assets consisted of the following (in millions):
 
As of December 31,
 
2014
 
2013
Privately-held investments
$
89.9

 
$
57.2

Licensed software
8.6

 
90.4

Federal income tax receivable
20.0

 
20.0

Customer financing receivable
16.9

 
19.9

Inventory
8.0

 
15.2

Prepaid costs, deposits, and other
35.5

 
31.1

Promissory note in connection with the sale of Junos Pulse(1)
125.0

 

Other long-term assets
$
303.9

 
$
233.8


_______________________________
(1) 
Refer to Other Income (Expense), net below for further information on the promissory note.
Changes in the Company’s warranty reserve were as follows (in millions):
 
As of December 31,
 
2014
 
2013
Beginning balance
$
28.0

 
$
29.7

Provisions made during the period, net
28.6

 
28.8

Adjustments related to pre-existing warranties

 
(2.1
)
Actual costs incurred during the period
(27.9
)
 
(28.4
)
Ending balance
$
28.7

 
$
28.0

Details of the Company's deferred revenue, as reported in the Consolidated Balance Sheets, were as follows (in millions):
 
As of December 31,
 
2014
 
2013
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
180.3

 
$
184.9

Distributor inventory and other sell-through items
103.7

 
118.7

Deferred gross product revenue
284.0

 
303.6

Deferred cost of product revenue
(58.4
)
 
(58.6
)
Deferred product revenue, net
225.6

 
245.0

Deferred service revenue
850.1

 
824.3

Total
$
1,075.7

 
$
1,069.3

Reported as:
 
 
 
Current
$
780.8

 
$
705.8

Long-term
294.9

 
363.5

Total
$
1,075.7

 
$
1,069.3

Other income (expense), net consisted of the following (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Interest income
$
10.0

 
$
8.7

 
$
11.0

Interest expense
(66.9
)
 
(58.4
)
 
(52.9
)
Net gain on legal settlement
196.1

 

 

Gain on investments
167.9

 
11.3

 
26.7

Gain on sale of Junos Pulse
19.6

 

 

Other
6.7

 
(2.0
)
 
(1.4
)
Other income (expense), net
$
333.4

 
$
(40.4
)
 
$
(16.6
)
Restructuring and Other Charges (Tables)
The following table presents restructuring and other charges included in cost of revenues and restructuring and other charges in the Consolidated Statements of Operations under the Company's restructuring plans (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Severance
$
52.6

 
$
22.9

 
$
36.7

Facilities
14.4

 
10.0

 
5.8

Contract terminations and other
2.3

 
14.6

 
57.2

Asset impairments and write-downs
139.2

 

 

Total
$
208.5

 
$
47.5

 
$
99.7

 
 
 
 
 
 
Reported as:
 
 
 
 
 
Cost of revenues
$
41.5

 
$
8.4

 
$
52.9

Restructuring and other charges
167.0

 
39.1

 
46.8

Total
$
208.5

 
$
47.5

 
$
99.7

The following table provides a summary of changes in the restructuring liability related to the Company's plans during the year ended December 31, 2014 (in millions):
 
December 31,
2013
 
Charges
 
Cash
Payments
 
Non-cash
Settlements and
Other
 
December 31,
2014
Severance
$
5.6

 
$
52.6

 
$
(47.4
)
 
$
(1.4
)
 
$
9.4

Facilities
5.1

 
14.4

 
(20.2
)
 
8.1

 
7.4

Contract terminations and other
7.1

 
2.3

 
(8.3
)
 
(0.9
)
 
0.2

Total
$
17.8

 
$
69.3

 
$
(75.9
)
 
$
5.8

 
$
17.0


Long-Term Debt and Financing (Tables)
Long-term Debt
The following table summarizes the Company's long-term debt (in millions, except percentages):
 
As of December 31, 2014
 
Amount
 
Effective Interest
Rates
Senior notes:
 
 
 
3.10% fixed-rate notes, due 2016
$
300.0

 
3.25
%
4.60% fixed-rate notes, due 2021
300.0

 
4.69
%
4.50% fixed-rate notes, due 2024
350.0

 
4.63
%
5.95% fixed-rate notes, due 2041
400.0

 
6.03
%
Total senior notes
1,350.0

 
 
Unaccreted discount
(1.0
)
 
 
Total
$
1,349.0

 
 
Equity (Tables)
The following table summarizes the Company's repurchases and retirements of its common stock under its stock repurchase programs and accelerated share repurchase, and repurchases associated with minimum tax withholdings (in millions, except per share amounts):
 
Shares
Repurchased 
 
Average price
per share
 
Amount
Repurchased 
2014
 
 
 
 
 
Repurchases under stock repurchase program
46.8

 
$
22.42

 
$
1,050.0

Accelerated share repurchase(1)
49.3

 
$
24.35

 
$
1,200.0

Repurchases for tax withholding
0.6

 
$
19.69

 
$
12.5

2013
 
 
 
 
 
Repurchases under stock repurchase program
28.9

 
$
19.76

 
$
570.6

Repurchases for tax withholding
0.4

 
$
20.23

 
$
7.2

2012
 
 
 
 
 
Repurchases under stock repurchase program
35.8

 
$
18.05

 
$
645.6

Repurchases for tax withholding
0.2

 
$
23.40

 
$
5.0


_______________________________
(1) 
As part of the 2014 Stock Repurchase Program, the Company entered into two separate accelerated share repurchase agreements (collectively, the "ASR") with two financial institutions to repurchase $1.2 billion of the Company's common stock. The Company made an up-front payment of $1.2 billion pursuant to the ASR to repurchase the Company's common stock. The aggregate number of shares ultimately purchased was determined based on a volume weighted average repurchase price, less an agreed upon discount. The shares received with respect to the ASR have been retired. Retired shares return to authorized but unissued shares of common stock.
The components of accumulated other comprehensive income, net of related taxes, for the years ended December 31, 2014 and December 31, 2013 were as follows (in millions):
 
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, 2012
$
2.1

 
$
3.0

 
$
(0.4
)
 
$
4.7

Other comprehensive gain (loss) before reclassifications
65.1

 
0.7

 
(3.4
)
 
62.4

Amount reclassified from accumulated other
   comprehensive income
(1.0
)
 
(1.5
)
 

 
(2.5
)
Other comprehensive gain (loss)
64.1

 
(0.8
)
 
(3.4
)
 
59.9

Balance as of December 31, 2013
$
66.2

 
$
2.2

 
$
(3.8
)
 
$
64.6

Other comprehensive gain (loss) before reclassifications
48.7

 
(4.1
)
 
(14.2
)
 
30.4

Amount reclassified from accumulated other
   comprehensive income
(106.5
)
 
(2.3
)
 

 
(108.8
)
Other comprehensive loss, net
(57.8
)
 
(6.4
)
 
(14.2
)
 
(78.4
)
Balance as of December 31, 2014
$
8.4

 
$
(4.2
)
 
$
(18.0
)
 
$
(13.8
)
________________________________
(1) 
The reclassifications out of accumulated other comprehensive income during the years ended December 31, 2014 and December 31, 2013 for realized gains on available-for-sale securities of $104.3 million and $1.0 million, respectively, are included in other income (expense), net, in the Consolidated Statements of Operations.
(2) 
The reclassifications out of accumulated other comprehensive income during the year ended December 31, 2014 for realized gains on cash flow hedges are included within research and development of $1.4 million, sales and marketing of $0.3 million, and general and administrative of $0.7 million and for realized losses within cost of revenues of $0.1 million for which the hedged transactions relate in the Consolidated Statements of Operations. The reclassifications out of accumulated other comprehensive income during the year ended December 31, 2013 for realized gains on cash flow hedges are included within cost of revenues of $1.1 million and sales and marketing of $4.3 million and for realized losses within research and development of $3.4 million and general and administrative of $0.5 million for which the hedged transactions relate in the Consolidated Statements of Operations.

Employee Benefit Plans (Tables)
The following table summarizes the Company’s stock option activity and related information as of and for the three years ended December 31, 2014 (in millions, except for per share amounts and years):
 
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, 2011
38.6

 
$
23.98

 
3.7
 
$
75.3

Granted
3.1

 
22.81

 
 
 
 
Assumed(*)
0.9

 
0.57

 
 
 
 
Canceled
(2.8
)
 
26.64

 
 
 
 
Exercised
(3.6
)
 
11.71

 
 
 
 
Expired
(2.1
)
 
26.97

 
 
 
 
Balance as of December 31, 2012
34.1

 
$
24.13

 
3.1
 
$
52.5

Canceled
(1.3
)
 
29.56

 
 
 
 
Exercised
(5.6
)
 
15.58

 
 
 
 
Expired
(4.1
)
 
28.35

 
 
 
 
Balance as of December 31, 2013
23.1

 
$
25.15

 
2.4
 
$
44.6

Canceled
(0.6
)
 
30.15

 
 
 
 
Exercised
(5.4
)
 
19.76

 
 
 
 
Expired
(7.2
)
 
29.11

 
 
 
 
Balance as of December 31, 2014
9.9

 
$
24.87

 
2.0
 
$
24.7

 
 
 
 
 
 
 
 
As of December 31, 2014:
 
 
 
 
 
 
 
Vested and expected-to-vest options
9.8

 
$
25.00

 
2.0
 
$
23.6

Exercisable options
9.1

 
$
25.88

 
1.7
 
$
15.9

_____________________________
(*) 
Stock options assumed in connection with the acquisition of Contrail.

The following table summarizes additional information regarding outstanding and exercisable options as of December 31, 2014:
 
 
Options Outstanding 
 
Options Exercisable 
Range of Exercise Price
(In dollars)
 
Number Outstanding
(In millions)
 
Weighted Average
Remaining
Contractual Life
(In years)
 
Weighted Average
Exercise Price
(In dollars)
 
Number
Exercisable
(In millions)
 
Weighted Average
Exercise Price
(In dollars)
$0.03 - $15.09
 
1.7

 
3.6
 
$
9.58

 
1.3

 
$
12.23

$16.39 - $22.59
 
1.4

 
1.5
 
20.36

 
1.2

 
20.34

$22.74 - $24.61
 
1.1

 
2.0
 
23.85

 
0.9

 
23.81

$24.73 - 24.73
 
0.1

 
0.4
 
24.73

 
0.1

 
24.73

$25.16- $25.16
 
1.2

 
0.2
 
25.16

 
1.2

 
25.16

$25.19 - $26.90
 
1.0

 
1.3
 
26.24

 
1.0

 
26.24

$26.97 - $29.89
 
1.6

 
1.8
 
28.71

 
1.6

 
28.70

$30.01 - $38.93
 
0.7

 
2.9
 
33.57

 
0.7

 
33.60

$40.26 - $40.26
 
0.7

 
2.8
 
40.26

 
0.7

 
40.26

$44.00 - $44.00
 
0.4

 
3.0
 
44.00

 
0.4

 
44.00

$0.03 - $44.00
 
9.9

 
2.0
 
$
24.87

 
9.1

 
$
25.88

The following table summarizes the Company’s RSU, RSA, and PSA activity and related information as of and for the three years ended December 31, 2014 (in millions, except per share amounts and years):
 
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, 2011
19.6

 
$
30.27

 
1.5
 
$
400.5

RSUs granted
9.9

 
20.79

 
 
 
 
RSUs assumed(1)(2)
0.2

 
22.21

 
 
 
 
PSAs granted(3)
2.2

 
23.07

 
 
 
 
RSAs assumed(2)
5.8

 
19.59

 
 
 
 
RSUs vested(8)
(3.1
)
 
27.04

 
 
 
 
PSAs vested(8)
(1.9
)
 
18.21

 
 
 
 
RSAs vested(8)
(0.7
)
 
19.59

 
 
 
 
RSUs canceled
(2.9
)
 
27.77

 
 
 
 
     PSAs canceled
(2.3
)
 
29.71

 
 
 
 
Balance as of December 31, 2012
26.8

 
$
27.76

 
1.7
 
$
565.0

RSUs granted
10.3

 
20.32

 
 
 
 
PSAs granted(4)
2.2

 
21.27

 
 
 
 
RSUs vested(8)
(6.1
)
 
26.15

 
 
 
 
PSAs vested(8)
(1.1
)
 
28.52

 
 
 
 
RSAs vested(8)
(1.6
)
 
19.59

 
 
 
 
RSUs canceled
(3.4
)
 
22.99

 
 
 
 
     PSAs canceled
(1.7
)
 
29.10

 
 
 
 
Balance as of December 31, 2013
25.4

 
$
23.44

 
1.1
 
$
573.5

RSUs granted(5)(9)
10.0

 
22.52

 
 
 
 
RSUs assumed(6)
0.4

 
22.66

 
 
 
 
RSAs assumed(6)
0.9

 
22.66

 
 
 
 
PSAs granted(7)(9)
1.4

 
24.25

 
 
 
 
PSAs assumed(6)
0.2

 
22.66

 
 
 
 
RSUs vested(8)
(7.3
)
 
22.98

 
 
 
 
RSAs vested(8)
(1.4
)
 
19.59

 
 
 
 
PSAs vested(8)
(1.1
)
 
36.19

 
 
 
 
RSUs canceled
(4.0
)
 
21.63

 
 
 
 
PSAs canceled
(3.2
)
 
30.43

 
 
 
 
Balance at December 31, 2014
21.3

 
$
22.05

 
1.1
 
$
475.0

 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
 
 
 
 
 
     Vested and expected-to-vest RSUs, RSAs,
       and PSAs
17.7

 
$
21.99

 
1.0
 
$
395.2

________________________________
(1) 
RSUs assumed in connection with the acquisition of Mykonos
(2)
RSUs and RSAs assumed in connection with the acquisition of Contrail.
(3)
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 0.9 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.2 million shares.
(4)
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 1.1 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.2 million shares.
(5) 
Includes service-based and market-based RSUs granted under the 2006 Plan according to its terms.
(6)
RSUs, RSAs, and PSAs assumed in connection with the acquisition of WANDL.
(7)
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 0.9 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 1.4 million shares.
(8)
Total fair value of RSUs, RSAs, and PSAs vested during 2014, 2013, and 2012 was $210.1 million, $221.5 million, and $132.0 million, respectively.
(9)
On February 20, 2014, the Company announced its intention to initiate a quarterly cash dividend of $0.10 per share of common stock in the third quarter of 2014. As a result of the Company's announcement, the grant date fair value of RSUs and PSAs granted after the announcement date were reduced by the present value of the 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. The Company paid quarterly cash dividends in the third and fourth quarter of 2014 of $0.10 per share totaling $86.0 million. The declaration and amount of any future cash dividends are at the discretion of the Board of Directors and will depend on the Company's financial performance, economic outlook, and any other relevant considerations.

The following table presents the stock activity and the total number of shares available for grant under the 2006 Plan as of December 31, 2014 (in millions):
 
Number of Shares
Balance as of December 31, 2013
49.1

RSUs and PSAs granted (1)
(24.1
)
RSUs and PSAs canceled (1)
15.0

Options canceled (2)
0.6

Options expired (2)
7.2

Balance as of December 31, 2014
47.8

________________________________
(1) 
RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted represents the maximum number of shares that may be issued pursuant to the award over its full term.
(2) 
Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired after May 18, 2006, which become available for grant under the 2006 Plan according to its terms
The weighted-average assumptions used and the resulting estimates of fair value for stock options, ESPP, and market-based RSUs were as follows:
 
Years Ended December 31,
 
2014
 
2013
 
2012
Stock Options(1):
 
 
 
 
 
Volatility
 
 
45%
Risk-free interest rate
 
 
0.7%
Expected life (years)
 
 
4.2
Dividend yield
 
 
Weighted-average fair value per share
 
 
$8.47
 
 
 
 
 
 
ESPP(1):
 
 
 
 
 
Volatility
30%
 
36%
 
47%
Risk-free interest rate
0.1%
 
0.1%
 
0.1%
Expected life (years)
0.5
 
0.5
 
0.5
Dividend yield
0% - 1.8%
 
 
Weighted-average fair value per share
$5.72
 
$5.54
 
$5.53
 
 
 
 
 
 
Market-based RSUs(2)
 
 
 
 
 
Volatility
36%
 
 
Risk-free interest rate
1.6%
 
 
Dividend yield
0% - 2.0%
 
 
Weighted-average fair value per share
$16.89
 
 
________________________________
(1) 
The Black-Scholes-Merton option-pricing model is utilized to estimate the fair value of stock options and ESPP.
(2) 
The fair value of market-based RSUs utilizes the Monte Carlo simulation option pricing model. 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.
se

Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Company's Consolidated Statements of Operations (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Cost of revenues - Product
$
5.0

 
$
4.7

 
$
4.6

Cost of revenues - Service
14.2

 
15.4

 
17.0

Research and development
134.5

 
127.6

 
109.1

Sales and marketing
60.2

 
70.9

 
81.6

General and administrative
26.1

 
26.0

 
31.1

Total
$
240.0

 
$
244.6

 
$
243.4


The following table summarizes share-based compensation expense by award type (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Stock options
$
14.9

 
$
31.5

 
$
58.9

RSUs, RSAs, and PSAs
209.7

 
196.8

 
163.7

ESPP
15.4

 
16.3

 
20.8

Total
$
240.0

 
$
244.6

 
$
243.4

The following table presents unrecognized compensation cost, adjusted for estimated forfeitures, recognized over a weighted-average period related to unvested stock options, RSUs, RSAs, and PSAs as of December 31, 2014 (in millions, except years):
 
Unrecognized
Compensation Cost
 
Weighted Average
Period
(In Years)
Stock options
$
11.4

 
1.3
RSUs, RSAs, and PSAs
$
257.8

 
1.7
Segments (Tables)
The following table presents net revenues by product and service (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Routing
$
2,223.9

 
$
2,318.0

 
$
2,037.6

Switching
721.2

 
638.0

 
554.8

Security
463.6

 
563.9

 
669.7

Total product
3,408.7

 
3,519.9

 
3,262.1

 
 
 
 
 
 
Total service
1,218.4

 
1,149.2

 
1,103.3

Total
$
4,627.1

 
$
4,669.1

 
$
4,365.4


The Company attributes revenues to geographic region based on the customer’s ship-to location. The following table presents net revenues by geographic region (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Americas:
 
 
 
 
 
United States
$
2,410.6

 
$
2,381.5

 
$
2,067.5

Other
219.7

 
232.0

 
218.4

Total Americas
2,630.3

 
2,613.5

 
2,285.9

Europe, Middle East, and Africa
1,263.3

 
1,256.9

 
1,266.3

Asia Pacific
733.5

 
798.7

 
813.2

Total
$
4,627.1

 
$
4,669.1

 
$
4,365.4

The following table presents geographic information for property and equipment, net and purchased intangible assets, net (in millions):
 
As of December 31,
 
2014
 
2013
United States
$
871.7

 
$
885.6

International
95.0

 
103.6

Property and equipment, net and purchased intangible assets, net
$
966.7

 
$
989.2

Income Taxes (Tables)
The components of pretax (loss) income and noncontrolling interest are summarized as follows (in millions):  
 
Years Ended December 31,
 
2014
 
2013
 
2012
Domestic
$
(509.7
)
 
$
248.7

 
$
114.1

Foreign
423.4

 
276.8

 
177.4

Total pretax (loss) income
$
(86.3
)
 
$
525.5

 
$
291.5

The provision for income taxes is summarized as follows (in millions):  
 
Years Ended December 31,
 
2014
 
2013
 
2012
Current provision (benefit):
 

 
 

 
 

Federal
$
180.1

 
$
(12.9
)
 
$
94.3

States
15.2

 
(5.0
)
 
8.4

Foreign
33.7

 
32.5

 
37.1

Total current provision (benefit)
229.0

 
14.6

 
139.8

Deferred provision (benefit):
 
 
 
 
 
Federal
17.3

 
51.2

 
(28.8
)
States
1.2

 
(2.7
)
 
(1.5
)
Foreign
0.5

 
22.6

 
3.5

Total deferred provision (benefit)
19.0

 
71.1

 
(26.8
)
Income tax benefits attributable to employee stock plan activity

 

 
(8.0
)
Total provision (benefit) for income taxes
$
248.0

 
$
85.7

 
$
105.0

The provision for income taxes differs from the amount computed by applying the federal statutory rate to pretax (loss) income as follows (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Expected (benefit) provision at 35% rate
$
(30.2
)
 
$
184.0

 
$
102.0

State taxes (benefit), net of federal benefit
9.5

 
(3.6
)
 
2.0

Foreign income at different tax rates
(90.2
)
 
(37.7
)
 
(11.6
)
Research and development credits
(17.1
)
 
(32.5
)
 
(0.5
)
Share-based compensation
25.3

 
25.6

 
22.4

Non-deductible goodwill impairment
297.5

 

 

Gain on sale of Junos Pulse
75.6

 

 

Release of valuation allowance
(22.8
)
 

 
(3.4
)
Settlement with tax authorities

 
(28.3
)
 

Domestic production activities
(6.8
)
 
(26.3
)
 

Non-deductible compensation
3.2

 
1.5

 
0.6

Equity investment gain on acquisition

 

 
(5.3
)
Other
4.0

 
3.0

 
(1.2
)
Total provision for income taxes
$
248.0

 
$
85.7

 
$
105.0

Significant components of the Company's deferred tax assets and liabilities are as follows (in millions):
 
As of December 31,
 
2014
 
2013
Deferred tax assets:
 

 
 

Net operating loss carry-forwards
$
1.3

 
$
1.1

Foreign tax credit carry-forwards
69.7

 
63.4

Research and other credit carry-forwards
122.5

 
106.6

Deferred revenue
104.9

 
71.0

Stock-based compensation
55.8

 
86.1

Reserves and accruals not currently deductible
129.8

 
153.9

Other
19.8

 
13.7

Total deferred tax assets
503.8

 
495.8

Valuation allowance
(144.5
)
 
(155.7
)
Deferred tax assets, net of valuation allowance
359.3

 
340.1

Deferred tax liabilities:
 
 
 
Property and equipment basis differences
(35.6
)
 
(3.1
)
Purchased intangibles
(16.7
)
 
(10.1
)
Unremitted foreign earnings
(260.6
)
 
(258.9
)
Deferred compensation and other
(5.1
)
 
(38.7
)
Other

 
(0.4
)
Total deferred tax liabilities
(318.0
)
 
(311.2
)
Net deferred tax assets
$
41.3

 
$
28.9

The breakdown between current and long-term deferred tax assets and deferred tax liabilities are as follows (in millions):
 
As of December 31,
 
2014
 
2013
Current deferred tax assets
$
147.0

 
$
79.8

Long-term deferred tax assets
1.7

 
2.4

Long-term deferred tax liabilities
(107.4
)
 
(53.3
)
Total net deferred tax assets
$
41.3

 
$
28.9

A reconciliation of the beginning and ending amount of the Company's total gross unrecognized tax benefits was as follows (in millions):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Balance at beginning of year
$
137.6

 
$
136.1

 
$
132.2

Tax positions related to current year:
 
 
 
 
 
Additions
62.5

 
15.8

 
8.8

Tax positions related to prior years:
 
 
 
 
 
Additions
0.6

 
22.6

 
0.9

Reductions

 
(2.2
)
 

Settlements

 
(31.1
)
 
(1.2
)
Lapses in statutes of limitations
(1.5
)
 
(3.6
)
 
(4.6
)
Balance at end of year
$
199.2

 
$
137.6

 
$
136.1

Net Income per Share (Tables)
Schedule of Calculation of Basic and Diluted Net Income Per Share
The Company computed basic and diluted net (loss) income per share attributable to Juniper Networks common stockholders as follows (in millions, except per share amounts):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Numerator:
 
 
 
 
 
Net (loss) income
$
(334.3
)
 
$
439.8

 
$
186.5

Denominator:
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
457.4

 
501.8

 
520.9

Dilutive effect of employee stock awards

 
8.5

 
5.3

Weighted-average shares used to compute diluted net income
   per share
457.4

 
510.3

 
526.2

Net (loss) income per share attributable to Juniper Networks common
   stockholders:
 
 
 
 
 
Basic
$
(0.73
)
 
$
0.88

 
$
0.36

Diluted
$
(0.73
)
 
$
0.86

 
$
0.35

 
 
 
 
 
 
Anti-dilutive:
 
 
 
 
 
Potential anti-dilutive shares
20.8

 
13.2

 
32.3

Commitments and Contingencies (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases
The following table summarizes the Company’s future minimum payments under non-cancelable operating leases for each of the next five years and thereafter as of December 31, 2014 (in millions):
Years Ending December 31,
Amount
2015
$
41.2

2016
30.1

2017
22.0

2018
14.3

2019
7.5

Thereafter
22.0

Total
$
137.1



Selected Quarterly Financial Data (Unaudited) (Tables)
Schedule of Selected Quarterly Financial Data (Unaudited)
The tables below set forth selected unaudited financial data for each quarter of the two years ended December 31, 2014 (in millions, except per share amounts):
 
Year Ended December 31, 2014
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 

 
 

 
 

 
 

Product
$
876.0

 
$
929.2

 
$
809.5

 
$
794.0

Service
294.1

 
300.3

 
316.4

 
307.6

Total net revenues
1,170.1

 
1,229.5

 
1,125.9

 
1,101.6

Cost of revenues:
 
 
 
 
 
 
 
Product
326.6

 
359.3

 
290.0

 
310.9

Service
123.4

 
122.0

 
121.1

 
115.6

Total cost of revenues (1)
450.0

 
481.3

 
411.1

 
426.5

Gross margin
720.1

 
748.2

 
714.8

 
675.1

Operating expenses:
 
 
 
 
 
 
 
Research and development
264.0

 
255.5

 
253.2

 
233.5

Sales and marketing
273.4

 
258.0

 
249.2

 
243.0

General and administrative
74.9

 
60.6

 
55.0

 
40.6

Restructuring and other (credit) charges(1)
114.0

 
58.2

 
(15.0
)
 
9.8

Impairment of goodwill(2)

 

 

 
850.0

Total operating expenses
726.3

 
632.3

 
542.4

 
1,376.9

Operating (loss) income
(6.2
)
 
115.9

 
172.4

 
(701.8
)
Other income (expense), net(3)
154.2

 
178.6

 
(6.8
)
 
7.4

Income (loss) before income taxes
148.0

 
294.5

 
165.6

 
(694.4
)
Income tax provision
37.4

 
73.4

 
62.0

 
75.2

Net income (loss)
$
110.6

 
$
221.1

 
$
103.6

 
$
(769.6
)
 
 
 
 
 
 
 
 
Net income (loss) per share:(4)
 
 
 
 
 
 
 
Basic
$
0.23

 
$
0.47

 
$
0.23

 
$
(1.81
)
Diluted
$
0.22

 
$
0.46

 
$
0.23

 
$
(1.81
)
Cash dividends declared per common stock(5)
$

 
$

 
$
0.10

 
$
0.10

_______________________________
(1) 
In the first quarter of 2014, the company initiated a 2014 Restructuring Plan, which consisted of $84.7 million asset write-downs, $28.0 million of severance costs, and $0.8 million of contract terminations that were recorded in restructuring and other charges. In addition, the Company recorded inventory write-downs related to the acceleration of the end-of-service life of certain products totaling $8.4 million to cost of revenues. In the second quarter, the Company recorded $9.9 million of severance costs, $37.6 million of facility consolidation and closures, $8.9 million of asset write-downs, and $1.5 million of contract terminations that were recorded to restructuring and other charges. The Company also recorded inventory write-downs of $11.5 million and a charge related to products with contract manufacturers of $2.3 million for acceleration of the end-of-life service of certain products to cost of revenues. In the third quarter, the Company recorded $7.1 million of severance costs, a benefit of $25.0 million of facility consolidation and closures as a result of a lease assignment, and $2.9 million of asset write-downs, that were recorded to restructuring and other (credit) charges. In the fourth quarter, the Company recorded $6.9 million in severance costs, $1.6 million of facility consolidation and closures, and $20.6 million in asset impairment and write-downs.
(2) 
During the fourth quarter of 2014, the Company recorded an $850.0 million goodwill impairment charge related to its Security reporting unit.
(3) 
In the first quarter of 2014, the Company recorded a gain of $163.0 million related to the sale of investments which were converted from privately-held investments to publicly-traded equity upon IPO. In the second quarter, the Company entered into a settlement agreement with PAN, which resulted in a realized gain on legal settlement of $195.3 million, net of legal fees. All such PAN securities were sold in the third quarter, and the Company recorded an additional $0.8 million gain. In the fourth quarter, the Company recorded a gain of $19.6 million on the sale of Junos Pulse.
(4)  
Net income (loss) per share is computed independently. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year or any cumulative interim period.
(5) 
On July 22, 2014 and October 23, 2014 the company declared a quarterly cash dividend of $0.10 per share of common stock to stockholders on record as of the close of business September 2, 2014 and December 2, 2014, respectively.
Year Ended December 31, 2013
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 

 
 

 
 

 
 

Product
$
781.8

 
$
863.8

 
$
900.8

 
$
973.5

Service
277.4

 
286.9

 
284.8

 
300.1

Total net revenues
1,059.2

 
1,150.7

 
1,185.6

 
1,273.6

Cost of revenues:
 
 
 
 
 
 
 
Product
278.2

 
321.3

 
325.5

 
351.6

Service
110.2

 
108.9

 
113.6

 
118.4

Total cost of revenues(2)
388.4

 
430.2

 
439.1

 
470.0

Gross margin
670.8

 
720.5

 
746.5

 
803.6

Operating expenses:
 
 
 
 
 
 
 
Research and development(1)
262.2

 
257.7

 
264.6

 
258.7

Sales and marketing(4)
256.1

 
267.1

 
269.5

 
283.2

General and administrative(4)
58.5

 
49.2

 
61.4

 
48.2

Restructuring and other charges(2)
7.0

 
8.0

 
6.0

 
18.1

Total operating expenses
583.8

 
582.0

 
601.5

 
608.2

Operating income
87.0

 
138.5

 
145.0

 
195.4

Other expense, net
(10.1
)
 
(12.6
)
 
(7.5
)
 
(10.2
)
Income before income taxes
76.9

 
125.9

 
137.5

 
185.2

Income tax (benefit) provision
(14.1
)
 
28.0

 
38.4

 
33.4

Net income
$
91.0

 
$
97.9

 
$
99.1

 
$
151.8

 
 
 
 
 
 
 
 
Net income per share(3)
 
 
 
 
 
 
 
Basic
$
0.18

 
$
0.19

 
$
0.20

 
$
0.30

Diluted
$
0.18

 
$
0.19

 
$
0.19

 
$
0.30

_______________________________
(1) 
In the second quarter of 2013, the Company extended the useful lives of certain computers and equipment based on actual historical usage, which demonstrated longer useful lives, as well as the planned use of these assets. The change was accounted for as a change in estimate and applied prospectively. This change in accounting estimate decreased depreciation expense within research and development expense by approximately $11.0 million or $0.01 per diluted share for the second quarter of 2013, $9.4 million or $0.01 for the third quarter of 2013, and $7.9 million or $0.01 for the fourth quarter of 2013.
(2)  
In the third quarter of 2013, the Company implemented the 2013 Restructuring Plan for workforce reductions, contract terminations, and project cancellations and recorded restructuring charges of $7.4 million and $3.7 million to operating expenses and cost of revenues, respectively. In the fourth quarter of 2013, the Company continued to implement restructuring activities under the 2013 Restructuring Plan and primarily recorded charges to operating expenses of $17.6 million.
(3)  
Net income per share is computed independently. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year or any cumulative interim period.
(4) 
Certain amounts in the prior quarters' Condensed Consolidated Statements of Operations have been reclassified to conform to the current year presentation.
Description of Business and Basis of Presentation (Details)
12 Months Ended
Dec. 31, 2014
segment
Dec. 31, 2013
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
Number of reportable segments
Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Significant Accounting Policies [Line Items]
 
 
 
Original maturity of highly liquid investments classified as cash and cash equivalents
3 months 
 
 
Maturity period of cash flow hedge derivatives
1 year 
 
 
Maturity period of non designated hedges derivatives
1 year 
 
 
Contractual period
1 year 
 
 
Warranty period for hardware products (in years)
1 year 
 
 
Warranty period for software (in days)
90 days 
 
 
Advertising expense
$ 19.2 
$ 20.1 
$ 20.0 
More than likely percentage of being realized upon settlement, tax benefit
50.00% 
 
 
Liability for unrecognized tax benefits as current
1 year 
 
 
Sales Revenue, Segment [Member] |
Customer Concentration Risk [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Number of customers accounting for more than 10% of revenues
 
Verizon [Member] |
Sales Revenue, Segment [Member] |
Customer Concentration Risk [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Percent of net revenues
 
 
10.30% 
Minimum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Contractual support period
1 year 
 
 
Maximum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Contractual support period
3 years 
 
 
Computer, Equipment and Software [Member] |
Minimum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
3 years 
 
 
Computer, Equipment and Software [Member] |
Maximum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
7 years 
 
 
Furniture and fixtures [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
5 years 
 
 
Building and building Improvements [Member] |
Minimum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
7 years 
 
 
Building and building Improvements [Member] |
Maximum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
40 years 
 
 
Land Improvements [Member] |
Minimum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
5 years 
 
 
Land Improvements [Member] |
Maximum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
40 years 
 
 
Leasehold improvements [Member] |
Maximum [Member]
 
 
 
Significant Accounting Policies [Line Items]
 
 
 
Useful life
10 years 
 
 
Business Combinations, Purchase Price Allocation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
2014 Acquisitions [Member]
Dec. 31, 2013
2013 Acquisitions [Member]
Dec. 31, 2012
2012 Acquisitions [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
Net tangible assets acquired
 
 
 
$ 0 
$ 0.1 
$ 3.5 
Net tangible liabilities acquired
 
 
 
(2.7)
Intangible assets acquired
 
 
 
17.8 
9.9 
54.1 
Goodwill
2,981.5 
4,057.7 
4,057.8 
13.6 
129.7 
Consideration Transferred
 
 
 
$ (28.7)
$ (10.0)
$ (187.3)
Business Combinations, Intangible Assets Acquired (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2014
WANDL, Inc, [Member]
Dec. 31, 2012
Business Acquisitions 2012 [Member]
Dec. 31, 2012
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity BitGravity [Member]
Mar. 8, 2012
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity BitGravity [Member]
Dec. 31, 2012
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Contrail [Member]
Dec. 14, 2012
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Contrail [Member]
Dec. 31, 2012
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Mykonos [Member]
Feb. 13, 2012
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Mykonos [Member]
Dec. 31, 2012
In Process Research and Development [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity BitGravity [Member]
Dec. 31, 2012
In Process Research and Development [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Contrail [Member]
Dec. 31, 2012
In Process Research and Development [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Mykonos [Member]
Dec. 31, 2014
Existing technology [Member]
WANDL, Inc, [Member]
Dec. 31, 2012
Existing technology [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity BitGravity [Member]
Dec. 31, 2012
Existing technology [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Contrail [Member]
Dec. 31, 2012
Existing technology [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Mykonos [Member]
Dec. 31, 2014
Customer Relationships [Member]
WANDL, Inc, [Member]
Dec. 31, 2014
Trade Names [Member]
WANDL, Inc, [Member]
Dec. 31, 2014
Backlog [Member]
WANDL, Inc, [Member]
Dec. 31, 2014
Non-compete Agreements [Member]
WANDL, Inc, [Member]
Dec. 31, 2012
Trade Name and Trademarks [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity BitGravity [Member]
Dec. 31, 2012
Trade Name and Trademarks [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Contrail [Member]
Dec. 31, 2012
Trade Name and Trademarks [Member]
Business Acquisitions 2012 [Member]
Business Acquisition Acquired Entity Mykonos [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired intangible asset, weighted average estimated useful life (in years)
7 years 
 
3 years 
 
 
 
6 years 
 
 
 
 
7 years 
3 years 
 
6 years 
7 years 
4 years 
1 year 
2 years 
 
 
7 years 
Intangible assets acquired
$ 17.8 
$ 54.1 
$ 12.4 
$ 12.4 
$ 17.4 
$ 17.4 
$ 24.3 
$ 24.3 
$ 0 
$ 17.4 
$ 4.0 
$ 10.7 
$ 12.4 
$ 0 
$ 19.3 
$ 6.0 
$ 0.6 
$ 0.2 
$ 0.3 
$ 0 
$ 0 
$ 1.0 
Business Combinations, Textuals (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2014
Acquisition
Dec. 31, 2013
Acquisition
Dec. 31, 2012
Acquisition
Dec. 31, 2014
2014 Acquisitions [Member]
Dec. 31, 2013
2013 Acquisitions [Member]
Dec. 31, 2012
2012 Acquisitions [Member]
Dec. 31, 2014
WANDL, Inc, [Member]
Jan. 7, 2014
WANDL, Inc, [Member]
2014 Acquisitions [Member]
Dec. 14, 2012
Business Acquisition Acquired Entity Contrail [Member]
2012 Acquisitions [Member]
Dec. 31, 2012
Business Acquisition Acquired Entity Contrail [Member]
2012 Acquisitions [Member]
Dec. 14, 2012
Business Acquisition Acquired Entity Contrail [Member]
2012 Acquisitions [Member]
Dec. 13, 2012
Business Acquisition Acquired Entity Contrail [Member]
2012 Acquisitions [Member]
Feb. 13, 2012
Business Acquisition Acquired Entity Mykonos [Member]
2012 Acquisitions [Member]
Dec. 31, 2012
Business Acquisition Acquired Entity Mykonos [Member]
2012 Acquisitions [Member]
Feb. 13, 2012
Business Acquisition Acquired Entity Mykonos [Member]
2012 Acquisitions [Member]
Mar. 8, 2012
Business Acquisition Acquired Entity BitGravity [Member]
2012 Acquisitions [Member]
Dec. 31, 2012
Business Acquisition Acquired Entity BitGravity [Member]
2012 Acquisitions [Member]
Mar. 8, 2012
Business Acquisition Acquired Entity BitGravity [Member]
2012 Acquisitions [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Length of time subsequent to acquisition date may result in changes of additional information
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Businesses Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration Transferred
 
 
 
$ 28.7 
$ 10.0 
$ 187.3 
 
$ 28.7 
$ 91.7 
 
 
 
 
 
 
 
 
 
Percentage of interests acquired
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
100.00% 
 
 
 
Share-based awards assumed, fair value
 
 
 
 
 
 
 
34.9 
 
 
 
 
 
 
 
 
 
 
Net tangible assets acquired
 
 
 
0.1 
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets acquired
 
 
 
17.8 
9.9 
54.1 
17.8 
 
 
17.4 
17.4 
 
 
24.3 
24.3 
 
12.4 
12.4 
Acquired intangible asset, weighted average estimated useful life (in years)
 
 
 
 
5 years 
 
7 years 
 
 
 
 
 
 
6 years 
 
 
3 years 
 
Percentage of interests acquired, original
 
 
 
 
 
 
 
 
 
 
12.00% 
 
 
 
 
 
 
 
Percentage of interest acquired, subsequent
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
Net tangible assets acquired
 
 
 
 
 
 
 
 
 
 
3.6 
 
 
 
0.2 
 
 
0.1 
Cash and cash equivalents acquired
 
 
 
 
 
 
 
 
 
 
8.6 
 
 
 
 
 
 
 
Goodwill
2,981.5 
4,057.7 
4,057.8 
13.6 
129.7 
 
 
 
 
70.7 
 
 
 
58.5 
 
 
0.5 
Privately-held investments
47.5 
 
 
 
 
 
 
 
 
 
 
3.0 
 
 
 
 
 
 
Fair value of equity interest, original
 
 
 
 
 
 
 
 
 
 
17.7 
 
 
 
 
 
 
 
Remeasurement gain
 
 
 
 
 
 
 
 
 
14.7 
 
 
 
 
 
 
 
 
Cash paid for business acquisition
 
 
 
 
 
 
 
 
 
 
 
 
$ 82.6 
 
 
$ 13.0 
 
 
Cash Equivalents and Investments - Available for Sale Securities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
$ 2,071.9 
$ 2,777.8 
Available-for-sale Securities, gross unrealized gain
0.6 
106.9 
Available-for-sale securities, gross unrealized loss
(1.7)
(2.5)
Available-for-sale securities, estimated fair value
2,070.8 
2,882.2 
Trading securities:
 
 
Trading securities, amortized cost
16.3 
15.4 
Trading securities, gross unrealized gain
Trading securities, gross unrealized loss
Trading securities, estimated fair value
16.3 
15.4 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
2,088.2 
2,793.2 
Total investments, gross unrealized gains
0.6 
106.9 
Total investments, gross unrealized losses
(1.7)
(2.5)
Total investments, estimated fair value
2,087.1 
2,897.6 
Cash equivalents [Member]
 
 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
576.6 
996.2 
Total investments, gross unrealized gains
Total investments, gross unrealized losses
Total investments, estimated fair value
576.6 
996.2 
Restricted investments [Member]
 
 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
45.2 
87.5 
Total investments, gross unrealized gains
0.1 
Total investments, gross unrealized losses
Total investments, estimated fair value
45.2 
87.6 
Short-term investments [Member]
 
 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
332.2 
459.0 
Total investments, gross unrealized gains
0.2 
104.9 
Total investments, gross unrealized losses
(0.2)
(2.0)
Total investments, estimated fair value
332.2 
561.9 
Long-term investments [Member]
 
 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
1,134.2 
1,250.5 
Total investments, gross unrealized gains
0.4 
1.9 
Total investments, gross unrealized losses
(1.5)
(0.5)
Total investments, estimated fair value
1,133.1 
1,251.9 
Fixed Income Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
1,471.7 
1,718.2 
Available-for-sale Securities, gross unrealized gain
0.5 
2.3 
Available-for-sale securities, gross unrealized loss
(1.6)
(0.6)
Available-for-sale securities, estimated fair value
1,470.6 
1,719.9 
Asset-backed securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
269.3 
249.9 
Available-for-sale Securities, gross unrealized gain
0.1 
Available-for-sale securities, gross unrealized loss
(0.3)
(0.1)
Available-for-sale securities, estimated fair value
269.0 
249.9 
Certificates of deposit [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
10.6 
27.6 
Available-for-sale Securities, gross unrealized gain
Available-for-sale securities, gross unrealized loss
Available-for-sale securities, estimated fair value
10.6 
27.6 
Commercial Paper [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
20.3 
6.9 
Available-for-sale Securities, gross unrealized gain
Available-for-sale securities, gross unrealized loss
Available-for-sale securities, estimated fair value
20.3 
6.9 
Corporate debt securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
738.6 
813.6 
Available-for-sale Securities, gross unrealized gain
0.5 
2.0 
Available-for-sale securities, gross unrealized loss
(1.1)
(0.3)
Available-for-sale securities, estimated fair value
738.0 
815.3 
Foreign government debt securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
24.6 
10.7 
Available-for-sale Securities, gross unrealized gain
Available-for-sale securities, gross unrealized loss
Available-for-sale securities, estimated fair value
24.6 
10.7 
Government-sponsored enterprise obligations [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
162.2 
306.2 
Available-for-sale Securities, gross unrealized gain
0.1 
Available-for-sale securities, gross unrealized loss
(0.1)
(0.1)
Available-for-sale securities, estimated fair value
162.1 
306.2 
US government securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
246.1 
303.3 
Available-for-sale Securities, gross unrealized gain
0.1 
Available-for-sale securities, gross unrealized loss
(0.1)
(0.1)
Available-for-sale securities, estimated fair value
246.0 
303.3 
Money market funds [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
594.2 
1,043.7 
Available-for-sale Securities, gross unrealized gain
Available-for-sale securities, gross unrealized loss
Available-for-sale securities, estimated fair value
594.2 
1,043.7 
Mutual funds [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
3.9 
3.9 
Available-for-sale Securities, gross unrealized gain
0.1 
0.1 
Available-for-sale securities, gross unrealized loss
Available-for-sale securities, estimated fair value
4.0 
4.0 
Publicly-traded equity securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
2.1 
12.0 
Available-for-sale Securities, gross unrealized gain
104.5 
Available-for-sale securities, gross unrealized loss
(0.1)
(1.9)
Available-for-sale securities, estimated fair value
$ 2.0 
$ 114.6 
Cash Equivalents and Investments - Maturities of Available for Sale Investments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Cash Equivalents and Investments [Abstract]
 
Amortized cost due within one year
$ 337.5 
Gross unrealized gains due within one year
0.1 
Gross unrealized losses due within one year
(0.2)
Estimated fair value due within one year
337.4 
Amortized cost due between one and five years
1,134.2 
Gross unrealized gains due between one and five years
0.4 
Gross unrealized losses due between one and five years
(1.4)
Estimated fair value due between one and five year
1,133.2 
Total investments, amortized cost
1,471.7 
Total investments, gross unrealized gains
0.5 
Total investments, gross unrealized losses
(1.6)
Total investments, estimated fair value
$ 1,470.6 
Cash Equivalents and Investments - Unrealized Loss for Trading and Available for Sale Investments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
$ 1,067.2 
$ 568.7 
Unrealized loss, less than 12 months
(1.7)
(2.5)
Fair value, 12 months or greater
10.3 
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
1,067.2 
579.0 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(1.7)
(2.5)
Fixed Income Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
1,065.2 
561.9 
Unrealized loss, less than 12 months
(1.6)
(0.6)
Fair value, 12 months or greater
10.3 
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
1,065.2 
572.2 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(1.6)
(0.6)
Asset-backed securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
221.9 
153.0 
Unrealized loss, less than 12 months
(0.3)
(0.1)
Fair value, 12 months or greater
0.6 
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
221.9 
153.6 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0.3)
(0.1)
Corporate debt securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
515.9 
156.1 
Unrealized loss, less than 12 months
(1.1)
(0.3)
Fair value, 12 months or greater
9.7 
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
515.9 
165.8 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(1.1)
(0.3)
Foreign government debt securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
24.6 
10.0 
Unrealized loss, less than 12 months
Fair value, 12 months or greater
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
24.6 
10.0 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
Government-sponsored enterprise obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
113.8 
123.1 
Unrealized loss, less than 12 months
(0.1)
(0.1)
Fair value, 12 months or greater
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
113.8 
123.1 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0.1)
(0.1)
US government securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
189.0 
119.7 
Unrealized loss, less than 12 months
(0.1)
(0.1)
Fair value, 12 months or greater
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
189.0 
119.7 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0.1)
(0.1)
Publicly-traded equity securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
2.0 
6.8 
Unrealized loss, less than 12 months
(0.1)
(1.9)
Fair value, 12 months or greater
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
2.0 
6.8 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
$ (0.1)
$ (1.9)
Cash Equivalents and Investments - Textuals (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Investment
Dec. 31, 2013
Investment
Dec. 31, 2012
Cash Equivalents and Investments [Abstract]
 
 
 
Total investments In unrealized loss position
437 
178 
 
Available-for-sale securities, gross realized gains
$ 166.8 
 
 
Privately-held investments
89.9 
57.2 
 
Debt and redeemable preferred stock securities included in privately held investments
47.5 
 
 
Unrealized gains, privately-held debt securities
15.0 
 
 
Unrealized gain on privately held investments
 
102.7 
 
Other than temporary impairment of privately held equity investments
$ 1.1 
$ 2.8 
$ 20.0 
Fair Value Measurements (Details) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2014
Asset-backed securities [Member]
Dec. 31, 2013
Asset-backed securities [Member]
Dec. 31, 2014
Certificates of deposit [Member]
Dec. 31, 2013
Certificates of deposit [Member]
Dec. 31, 2014
Commercial Paper [Member]
Dec. 31, 2013
Commercial Paper [Member]
Dec. 31, 2014
Corporate debt securities [Member]
Dec. 31, 2013
Corporate debt securities [Member]
Dec. 31, 2014
Foreign government debt securities [Member]
Dec. 31, 2013
Foreign government debt securities [Member]
Dec. 31, 2014
Government-sponsored enterprise obligations [Member]
Dec. 31, 2013
Government-sponsored enterprise obligations [Member]
Dec. 31, 2014
Money market funds [Member]
Dec. 31, 2013
Money market funds [Member]
Dec. 31, 2014
Mutual funds [Member]
Dec. 31, 2013
Mutual funds [Member]
Dec. 31, 2014
Publicly-traded equity securities [Member]
Dec. 31, 2013
Publicly-traded equity securities [Member]
Dec. 31, 2014
US Government Securities [Member]
Dec. 31, 2013
US Government Securities [Member]
Dec. 31, 2014
Debt Securities [Member]
Dec. 31, 2013
Debt Securities [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2014
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign exchange contract [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Available-for-sale Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Asset-backed securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Certificates of deposit [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Commercial Paper [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Corporate debt securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Foreign government debt securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Government-sponsored enterprise obligations [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Money market funds [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Mutual funds [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Publicly-traded equity securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
US Government Securities [Member]
Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Debt Securities [Member]
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities, estimated fair value
$ 2,882,200,000 
$ 2,070,800,000 
$ 269,000,000 
$ 249,900,000 
$ 10,600,000 
$ 27,600,000 
$ 20,300,000 
$ 6,900,000 
$ 738,000,000 
$ 815,300,000 
$ 24,600,000 
$ 10,700,000 
$ 162,100,000 
$ 306,200,000 
$ 594,200,000 
$ 1,043,700,000 
$ 4,000,000 
$ 4,000,000 
$ 2,000,000 
$ 114,600,000 
$ 246,000,000 
$ 303,300,000 
$ 1,470,600,000 
$ 1,719,900,000 
 
 
 
 
$ 2,070,800,000 
$ 2,882,200,000 
$ 269,000,000 
$ 249,900,000 
$ 10,600,000 
$ 27,600,000 
$ 20,300,000 
$ 6,900,000 
$ 738,000,000 
$ 815,300,000 
$ 24,600,000 
$ 10,700,000 
$ 162,100,000 
$ 306,200,000 
$ 594,200,000 
$ 1,043,700,000 
$ 4,000,000 
$ 4,000,000 
$ 2,000,000 
$ 114,600,000 
$ 246,000,000 
$ 303,300,000 
 
 
 
 
 
 
$ 846,200,000 
$ 1,359,500,000 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 594,200,000 
$ 1,043,700,000 
$ 4,000,000 
$ 4,000,000 
$ 2,000,000 
$ 114,600,000 
$ 246,000,000 
$ 197,200,000 
 
 
 
 
 
 
$ 1,224,600,000 
$ 1,522,700,000 
$ 269,000,000 
$ 249,900,000 
$ 10,600,000 
$ 27,600,000 
$ 20,300,000 
$ 6,900,000 
$ 738,000,000 
$ 815,300,000 
$ 24,600,000 
$ 10,700,000 
$ 162,100,000 
$ 306,200,000 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 106,100,000 
 
 
 
 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
Trading securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading securities, estimated fair value
15,400,000 
16,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,300,000 
15,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,300,000 
15,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately-held debt securities, estimated fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,500,000 
28,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,500,000 
28,100,000 
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets measured at fair value on a recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities measured at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,900,000)
(700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,900,000)
(700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other accrued liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,900,000)
(700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,900,000)
(700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities measured at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,900,000)
(700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,900,000)
(700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets measured at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,134,700,000 
2,928,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
862,500,000 
1,374,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,224,700,000 
1,525,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,500,000 
28,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
576,600,000 
996,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
552,900,000 
965,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23,700,000 
31,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45,200,000 
87,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45,200,000 
87,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
332,200,000 
561,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
87,000,000 
246,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
245,200,000 
315,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,133,100,000 
1,251,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
177,400,000 
75,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
955,700,000 
1,176,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prepaid expenses and other current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other long-term assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,500,000 
28,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,500,000 
28,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted investments
83,600,000 
41,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of assets transferred from Level 1 to Level 2
287,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value assets transferred to Level 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of privately held investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 5,000,000 
 
Fair Value Measurements, Assets and Liabilities Measured On A Nonrecurring Basis (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
Impairment of goodwill
$ (850.0)
$ 0 
$ 0 
$ 0 
$ (850.0)
$ 0 
$ 0 
Other than temporary impairment of privately held equity investments
 
 
 
 
(1.1)
(2.8)
(20.0)
Impairment of intangible assets (excluding goodwill)
 
 
 
 
 
(5.4)
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
Fair value promissory note
125.0 
 
 
 
125.0 
 
 
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
Fair value of long term debt
1,395.2 
 
 
 
1,395.2 
1,023.5 
 
Fair Value, Measurements, Nonrecurring [Member]
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
Liability measured at non-recurring basis
 
 
 
 
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
Fair value of intangible asset subsequent to impairment
 
 
 
 
 
 
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Cost Method Investment, Privately Held Companies [Member]
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
Privately-held investments measured on nonrecurring basis
 
 
 
 
 
2.0 
 
Other than temporary impairment of privately held equity investments
 
 
 
 
 
(2.8)
 
Security [Member]
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
Impairment of goodwill
$ (850.0)
 
 
 
$ (850.0)
 
 
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Notional amount of foreign currency derivative
$ 238.7 
$ 282.0 
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional amount of foreign currency derivative
160.7 
137.6 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional amount of foreign currency derivative
$ 78.0 
$ 144.4 
Derivative Instruments, Cash Flow Hedges (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
 
Maximum cash flow hedge derivative term
1 year 
 
 
Foreign exchange contract [Member] |
Cash flow hedging [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Gain (loss) on derivative instruments recognized in AOCI
$ (3.4)
$ (1.0)
 
Gain on derivative instruments recognized in AOCI
 
 
7.2 
Operating expenses [Member] |
Foreign exchange contract [Member] |
Cash flow hedging [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Gain (loss) on derivative instruments reclassified out of AOCI
3.4 
0.7 
 
Loss on derivative instruments reclassified out of AOCI
 
 
$ 7.5 
Derivative Instruments, Non-Designated Hedges (Details) (Foreign exchange contract [Member], Other (expense) income, net [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Foreign exchange contract [Member] |
Other (expense) income, net [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (loss) on non-designated derivatives
$ (2.4)
$ 0.9 
$ 1.0 
Goodwill and Purchased Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2014
ReportingUnit
Dec. 31, 2013
Dec. 31, 2012
Goodwill [Roll Forward]
 
 
 
 
 
 
 
Goodwill, beginning of period
 
 
 
$ 4,057.7 
$ 4,057.7 
$ 4,057.8 
 
Foreign currency translation adjustment
 
 
 
 
 
(0.1)
 
Additions due to business combination
 
 
 
 
13.6 
 
 
Impairment
(850.0)
(850.0)
Divestiture
 
 
 
 
(239.8)
 
 
Goodwill, end of period
2,981.5 
 
 
 
2,981.5 
4,057.7 
4,057.8 
Number of reporting units
 
 
 
 
 
 
Security [Member]
 
 
 
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
 
 
 
Impairment
$ (850.0)
 
 
 
$ (850.0)
 
 
Goodwill and Purchased Intangible Assets, Finite Lived Intangible Assets by Class (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Purchased Intangible Assets [Line Items]
 
 
 
Net
$ 62.4 
 
 
Total purchased intangible assets, gross
646.9 
655.7 
 
Total purchased intangible assets, accumulated amortization
(531.8)
(516.1)
 
Accumulated intangible asset impairment and other charges
(52.7)
(32.7)
 
Total purchased intangible assets, net
62.4 
106.9 
 
Amortization of intangible assets
36.3 
31.9 
32.3 
Intangible assets no longer utilized
20.0 
 
10.7 
Impairment of intangible assets
 
5.4 
Cost of revenues [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Amortization of intangible assets
30.9 
27.3 
27.6 
Impairment of intangible assets
 
 
16.1 
Selling and marketing [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Amortization of intangible assets
4.2 
3.4 
3.5 
General and administrative [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Amortization of intangible assets
1.2 
1.2 
1.2 
Operating expenses [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Amortization of intangible assets
5.4 
4.6 
4.7 
Technologies and patents [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Gross
567.7 
581.4 
 
Accumulated amortization
(466.1)
(453.4)
 
Impairment and other charges
(49.9)
(30.5)
 
Net
51.7 
97.5 
 
Customer Contracts, Support Agreements, and Related Relationships [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Gross
78.1 
74.3 
 
Accumulated amortization
(65.2)
(62.7)
 
Impairment and other charges
(2.8)
(2.2)
 
Net
10.1 
9.4 
 
Other [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Gross
1.1 
 
 
Accumulated amortization
(0.5)
 
 
Impairment and other charges
 
 
Net
0.6 
 
 
Intangible Asset Write-Down [Member] |
Restructuring Plan 2014 [Member] |
Cost of revenues [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Impairment of intangible assets
19.3 
 
 
Intangible Asset Write-Down [Member] |
Restructuring Plan 2014 [Member] |
Restructuring and Other Charges [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Impairment of intangible assets
$ 0.7 
 
 
Goodwill and Purchased Intangible Assets, Estimated Future Amortization Expense Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
2015
$ 24.2 
2016
13.8 
2017
8.9 
2018
5.2 
2019
4.9 
Thereafter
5.4 
Net
$ 62.4 
Other Financial Information, Inventories (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2014
Restructuring Plan 2012 [Member]
Dec. 31, 2012
Restructuring Plan 2012 [Member]
Dec. 31, 2013
Inventory Write-down [Member]
Jun. 30, 2014
Inventory Write-down [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Inventory Write-down [Member]
Restructuring Plan 2014 [Member]
Schedule of Inventory [Line Items]
 
 
 
 
 
 
 
 
Production materials
$ 38.3 
 
$ 51.3 
 
 
 
 
 
Finished goods
24.2 
 
1.4 
 
 
 
 
 
Total inventories, net
62.5 
 
52.7 
 
 
 
 
 
Restructuring charges, inventory write-down
69.3 
 
 
0.2 
36.3 
11.5 
15.5 
Inventory Write-down
 
$ 44.3 
 
 
 
 
 
 
Other Financial Information, Property and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
$ 1,730.2 
$ 1,709.1 
 
Construction-in-process, gross
70.3 
79.5 
 
Accumulated depreciation
(825.9)
(826.8)
 
Property and equipment, net
904.3 
882.3 
 
Depreciation expense
141.9 
148.2 
154.7 
Computers and equipment [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
806.1 
794.6 
 
Software [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
161.2 
108.4 
 
Leasehold improvements [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
179.5 
202.6 
 
Furniture and fixtures [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
33.7 
42.5 
 
Building and building Improvements [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
238.4 
242.6 
 
Land and land improvements [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
$ 241.0 
$ 238.9 
 
Other Financial Information, Other Long-Term Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Other Financial Information [Abstract]
 
 
Privately-held investments
$ 89.9 
$ 57.2 
Licensed software
8.6 
90.4 
Federal income tax receivable
20.0 
20.0 
Customer financing receivable
16.9 
19.9 
Inventory
8.0 
15.2 
Prepaid costs, deposits, and other
35.5 
31.1 
Promissory note in connection with the sale of Junos Pulse
125.0 
Other long-term assets
303.9 
233.8 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
69.3 
 
Impairment charges related to licensed software [Member] |
Restructuring Plan 2014 [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
$ 85.4 
 
Other Financial Information, Warranties (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Warranty Reserve [Roll Forward]
 
 
Beginning balance
$ 28.0 
$ 29.7 
Provisions made during the period, net
28.6 
28.8 
Adjustments related to pre-existing warranties
(2.1)
Actual costs incurred during the period
(27.9)
(28.4)
Ending balance
$ 28.7 
$ 28.0 
Other Financial Information, Deferred Revenue (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Deferred Revenue [Abstract]
 
 
Deferred revenue, net
$ 1,075.7 
$ 1,069.3 
Deferred Revenue Reported as [Abstract]
 
 
Deferred revenue, current
780.8 
705.8 
Deferred revenue, long-term
294.9 
363.5 
Deferred product revenue [Member]
 
 
Deferred Revenue [Abstract]
 
 
Undelivered product commitments and other product deferrals
180.3 
184.9 
Distributor inventory and other sell-through items
103.7 
118.7 
Deferred gross product revenue
284.0 
303.6 
Deferred cost of product revenue
(58.4)
(58.6)
Deferred revenue, net
225.6 
245.0 
Deferred service revenue [Member]
 
 
Deferred Revenue [Abstract]
 
 
Deferred revenue, net
$ 850.1 
$ 824.3 
Other Financial Information, Other Income (Expense), Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Oct. 1, 2014
Junos Pulse [Member]
Other Financial Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
 
$ 10.0 
$ 8.7 
$ 11.0 
 
Interest expense
 
 
 
 
 
 
 
 
(66.9)
(58.4)
(52.9)
 
Net gain on legal settlement
 
0.8 
195.3 
 
 
 
 
 
196.1 
 
Gain on investments
 
 
 
 
 
 
 
 
167.9 
11.3 
26.7 
 
Gain on sale of Junos Pulse
 
 
 
 
 
 
 
 
19.6 
 
Other
 
 
 
 
 
 
 
 
6.7 
(2.0)
(1.4)
 
Other income (expense), net
7.4 
(6.8)
178.6 
154.2 
(10.2)
(7.5)
(12.6)
(10.1)
333.4 
(40.4)
(16.6)
 
Interest expense, long-term debt
 
 
 
 
 
 
 
 
57.5 
45.2 
40.0 
 
Capitalized interest
 
 
 
 
 
 
 
 
2.7 
1.9 
7.1 
 
Publicly-traded equity and privately-held investments, net realized gain
 
 
 
163.0 
 
 
 
 
163.0 
 
 
 
Cost-method investments, realized gains (loss)
 
 
 
 
 
 
 
 
 
7.1 
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Consideration
 
 
 
 
 
 
 
 
 
 
 
230.7 
Cash consideration
 
 
 
 
 
 
 
 
 
 
 
105.7 
Working capital adjustment
 
 
 
 
 
 
 
 
 
 
 
19.3 
Promissory note in connection with the sale of Junos Pulse
$ 125.0 
 
 
 
$ 0 
 
 
 
$ 125.0 
$ 0 
 
$ 125.0 
Restructuring and Other Charges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Sep. 30, 2014
sqft
right
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Restructuring Plan 2013 [Member]
Dec. 31, 2014
Restructuring Plan 2012 [Member]
Dec. 31, 2012
Restructuring Plan 2012 [Member]
Dec. 31, 2014
Cost of revenues [Member]
Dec. 31, 2013
Cost of revenues [Member]
Dec. 31, 2012
Cost of revenues [Member]
Dec. 31, 2014
Cost of revenues [Member]
Restructuring Plan 2013 [Member]
Dec. 31, 2014
Cost of revenues [Member]
Restructuring Plan 2012 [Member]
Dec. 31, 2014
Restructuring and other charges [Member]
Dec. 31, 2013
Restructuring and other charges [Member]
Dec. 31, 2012
Restructuring and other charges [Member]
Dec. 31, 2014
Restructuring and other charges [Member]
Restructuring Plan 2013 [Member]
Dec. 31, 2014
Restructuring and other charges [Member]
Restructuring Plan 2012 [Member]
Dec. 31, 2014
Severance [Member]
Dec. 31, 2013
Severance [Member]
Dec. 31, 2012
Severance [Member]
Dec. 31, 2014
Severance [Member]
Restructuring Plan 2014 [Member]
Sep. 30, 2014
Severance [Member]
Restructuring Plan 2014 [Member]
Jun. 30, 2014
Severance [Member]
Restructuring Plan 2014 [Member]
Mar. 31, 2014
Severance [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Severance [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Severance [Member]
Restructuring Plan 2013 [Member]
Dec. 31, 2014
Facilities [Member]
Dec. 31, 2013
Facilities [Member]
Dec. 31, 2012
Facilities [Member]
Dec. 31, 2014
Facilities [Member]
Restructuring Plan 2014 [Member]
Sep. 30, 2014
Facilities [Member]
Restructuring Plan 2014 [Member]
Jun. 30, 2014
Facilities [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Facilities [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Contract termination and other [Member]
Dec. 31, 2013
Contract termination and other [Member]
Dec. 31, 2012
Contract termination and other [Member]
Jun. 30, 2014
Contract termination and other [Member]
Restructuring Plan 2014 [Member]
Mar. 31, 2014
Contract termination and other [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Contract termination and other [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Asset impairments and write-down [Member]
Dec. 31, 2013
Asset impairments and write-down [Member]
Dec. 31, 2012
Asset impairments and write-down [Member]
Dec. 31, 2014
Asset impairments and write-down [Member]
Restructuring Plan 2014 [Member]
Sep. 30, 2014
Asset impairments and write-down [Member]
Restructuring Plan 2014 [Member]
Jun. 30, 2014
Asset impairments and write-down [Member]
Restructuring Plan 2014 [Member]
Mar. 31, 2014
Asset impairments and write-down [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Asset impairments and write-down [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Impairment charges related to licensed software [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2013
Inventory Write-down [Member]
Jun. 30, 2014
Inventory Write-down [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Inventory Write-down [Member]
Restructuring Plan 2014 [Member]
Jun. 30, 2014
Acceleration of Certain End of Life Products [Member]
Restructuring Plan 2014 [Member]
Mar. 31, 2014
Acceleration of Certain End of Life Products [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Acceleration of Certain End of Life Products [Member]
Restructuring Plan 2014 [Member]
Dec. 31, 2014
Employee Severance and Contract Terminations [Member]
Restructuring Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other charges
 
$ 208.5 
$ 47.5 
$ 99.7 
 
 
 
$ 41.5 
$ 8.4 
$ 52.9 
 
 
$ 167.0 
$ 39.1 
$ 46.8 
 
 
$ 52.6 
$ 22.9 
$ 36.7 
 
 
 
 
 
 
$ 14.4 
$ 10.0 
$ 5.8 
 
 
 
 
$ 2.3 
$ 14.6 
$ 57.2 
 
 
 
$ 139.2 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
69.3 
 
 
 
0.2 
36.3 
 
 
 
 
 
 
 
 
 
 
52.6 
 
 
6.9 
7.1 
9.9 
28.0 
52.0 
 
14.4 
 
 
1.6 
25.0 
37.6 
14.2 
2.3 
 
 
1.5 
0.8 
2.3 
 
 
 
20.6 
2.9 
8.9 
84.7 
12.3 
85.4 
11.5 
15.5 
2.3 
8.4 
6.7 
 
Area subject to Restructuring Activities
400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Area subject to Sublease
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Duration of sublease
2 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewal Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Duration of renewal period
6 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount paid to Landlord
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction Fees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred rent liability adjustment
 
9.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring cost incurred to date
 
 
 
 
28.9 
112.8 
 
 
 
 
3.3 
58.0 
 
 
 
25.6 
54.8 
 
 
 
 
 
 
 
 
0.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
17.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.6 
 
 
 
 
 
 
 
 
5.1 
 
 
 
 
 
 
7.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9.6 
Restructuring charges
 
69.3 
 
 
 
0.2 
36.3 
 
 
 
 
 
 
 
 
 
 
52.6 
 
 
6.9 
7.1 
9.9 
28.0 
52.0 
 
14.4 
 
 
1.6 
25.0 
37.6 
14.2 
2.3 
 
 
1.5 
0.8 
2.3 
 
 
 
20.6 
2.9 
8.9 
84.7 
12.3 
85.4 
11.5 
15.5 
2.3 
8.4 
6.7 
 
Cash Payments
 
(75.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(47.4)
 
 
 
 
 
 
 
 
(20.2)
 
 
 
 
 
 
(8.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-cash Settlements and Other
 
5.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1.4)
 
 
 
 
 
 
 
 
8.1 
 
 
 
 
 
 
(0.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
$ 17.0 
$ 17.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 9.4 
$ 5.6 
 
 
 
 
 
 
 
$ 7.4 
$ 5.1 
 
 
 
 
 
$ 0.2 
$ 7.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 9.6 
Long-Term Debt and Financing (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Fixed Rate Note Due 2016 [Member]
Mar. 31, 2011
Fixed Rate Note Due 2016 [Member]
Dec. 31, 2014
Fixed Rate Note Due 2021 [Member]
Mar. 31, 2011
Fixed Rate Note Due 2021 [Member]
Dec. 31, 2014
Fixed Rate Note Due 2024 [Member]
Feb. 28, 2014
Fixed Rate Note Due 2024 [Member]
Dec. 31, 2014
Fixed Rate Note Due 2041 [Member]
Mar. 31, 2011
Fixed Rate Note Due 2041 [Member]
Dec. 31, 2014
Financing guarantee with recourse [Member]
Jun. 27, 2014
Revolving Credit Facility [Member]
Jun. 27, 2014
Federal Funds Rate [Member]
Revolving Credit Facility [Member]
Jun. 27, 2014
ICE Benchmark Administration Settlement Rate [Member]
Revolving Credit Facility [Member]
Dec. 31, 2014
Minimum [Member]
Jun. 27, 2014
Minimum [Member]
Base Rate [Member]
Revolving Credit Facility [Member]
Jun. 27, 2014
Minimum [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Dec. 31, 2014
Maximum [Member]
Jun. 27, 2014
Maximum [Member]
Base Rate [Member]
Revolving Credit Facility [Member]
Jun. 27, 2014
Maximum [Member]
Eurodollar [Member]
Revolving Credit Facility [Member]
Long-Term Debt [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
$ 1,350,000,000 
 
 
$ 300,000,000 
$ 300,000,000 
$ 300,000,000 
$ 300,000,000 
$ 350,000,000 
$ 350,000,000 
$ 400,000,000 
$ 400,000,000 
 
 
 
 
 
 
 
 
 
 
Effective interest rate
 
 
 
3.25% 
 
4.69% 
 
4.63% 
 
6.03% 
 
 
 
 
 
 
 
 
 
 
 
Maturity date
 
 
 
Mar. 15, 2016 
 
Mar. 15, 2021 
 
 
 
Mar. 15, 2041 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
 
 
3.10% 
4.60% 
 
4.50% 
4.50% 
5.95% 
 
 
 
 
 
 
 
 
 
 
 
Repurchase price percentage related to change in control
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaccreted Discount
(1,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
1,349,000,000 
999,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
500,000,000.0 
 
 
 
 
 
 
 
 
Additional borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
1.00% 
 
0.00% 
0.90% 
 
0.50% 
1.50% 
Financing Arrangements [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of days due from receivable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 days 
 
 
90 days 
 
 
Sale of receivables
440,300,000 
898,400,000 
677,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale and collection of receivables
602,100,000 
843,900,000 
679,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Receivables from sale of receivables
28,000,000 
189,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum term for guarantees relating to third-party financing arrangements
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor obligations, current carrying value
 
 
 
 
 
 
 
 
 
 
 
22,200,000 
 
 
 
 
 
 
 
 
 
Cash received from financing provider that has not been recognized as revenue
$ 67,500,000 
$ 62,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity, Stock Repurchase Activities (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 12 Months Ended
Jul. 22, 2014
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2014
institution
Dividend
Dec. 31, 2013
Dec. 31, 2012
Feb. 28, 2014
Dec. 31, 2014
Stock Repurchase Program 2014 [Member]
Oct. 31, 2014
Stock Repurchase Program 2014 [Member]
Feb. 28, 2014
Stock Repurchase Program 2014 [Member]
Number of quarterly cash dividends declared
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per common stock
$ 0.10 
$ 0.10 
$ 0.10 
$ 0 
$ 0 
$ 0.20 
$ 0 
$ 0 
 
 
 
 
Dividends paid
 
 
 
 
 
$ 86,000,000 
$ 0 
$ 0 
 
 
 
 
Stock repurchase program, authorized amount
 
 
 
 
 
 
 
 
2,100,000,000 
 
 
1,200,000,000 
Additional amount authorized under Stock Repurchase Plan
 
 
 
 
 
 
 
 
 
 
1,300,000,000 
 
Stock repurchase program, remaining authorized repurchase amount
 
 
 
 
 
 
 
 
 
1,200,000,000 
 
 
Repurchases under stock repurchase programs, shares repurchased
 
 
 
 
 
46.8 
28.9 
35.8 
 
 
 
 
Repurchases under stock repurchase programs, average price per share (in dollar per share)
 
 
 
 
 
$ 22.42 
$ 19.76 
$ 18.05 
 
 
 
 
Repurchases under stock repurchase programs, amount repurchased
 
 
 
 
 
1,050,000,000 
570,600,000 
645,600,000 
 
 
 
 
Repurchases under accelerated share repurchase programs, shares repurchased
 
 
 
 
 
49.3 
 
 
 
 
 
 
Repurchases under accelerated share repurchase programs, average price per share (in dollar per share)
 
 
 
 
 
$ 24.35 
 
 
 
 
 
 
Repurchases for tax withholding, shares repurchased
 
 
 
 
 
0.6 
0.4 
0.2 
 
 
 
 
Repurchases for tax withholding, average price per share (in dollar per share)
 
 
 
 
 
$ 19.69 
$ 20.23 
$ 23.40 
 
 
 
 
Repurchases for tax withholding, amount repurchased
 
 
 
 
 
12,500,000 
7,200,000 
5,000,000 
 
 
 
 
Number of accelerated share repurchase programs
 
 
 
 
 
 
 
 
 
 
 
Number of participating financial institutions in accelerated share repurchase programs
 
 
 
 
 
 
 
 
 
 
 
Accelerated Share Repurchases, Settlement (Payment) or Receipt
 
(1,200,000,000)
 
 
 
(1,200,000,000)
 
 
 
 
 
 
Intent, Stock Repurchases
 
 
 
 
 
$ 1,000,000,000 
 
 
 
 
 
 
Equity, Accumulated Other Comprehensive Income, Net of Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
$ 64.6 
 
 
 
$ 4.7 
$ 64.6 
$ 4.7 
 
Other comprehensive gain (loss) before reclassifications
 
 
 
 
 
 
 
 
30.4 
62.4 
 
Amount reclassified from accumulated other comprehensive income
 
 
 
 
 
 
 
 
(108.8)
(2.5)
 
Other comprehensive loss, net
 
 
 
 
 
 
 
 
(78.4)
59.9 
22.3 
Ending Balance
(13.8)
 
 
 
64.6 
 
 
 
(13.8)
64.6 
4.7 
Other expense
7.4 
(6.8)
178.6 
154.2 
(10.2)
(7.5)
(12.6)
(10.1)
333.4 
(40.4)
(16.6)
Research and development expense
233.5 
253.2 
255.5 
264.0 
258.7 
264.6 
257.7 
262.2 
1,006.2 
1,043.2 
1,101.6 
Selling and marketing expense
243.0 
249.2 
258.0 
273.4 
283.2 
269.5 
267.1 
256.1 
1,023.6 
1,075.9 
1,045.5 
General and administrative expense
40.6 
55.0 
60.6 
74.9 
48.2 
61.4 
49.2 
58.5 
231.1 
217.3 
206.8 
Cost of revenues
426.5 
411.1 
481.3 
450.0 
470.0 
439.1 
430.2 
388.4 
1,768.9 
1,727.7 
1,656.6 
Unrealized Gains (Losses) on Available-for- Sale Securities [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
66.2 
 
 
 
2.1 
66.2 
2.1 
 
Other comprehensive gain (loss) before reclassifications
 
 
 
 
 
 
 
 
48.7 
65.1 
 
Amount reclassified from accumulated other comprehensive income
 
 
 
 
 
 
 
 
(106.5)
(1.0)
 
Other comprehensive loss, net
 
 
 
 
 
 
 
 
(57.8)
64.1 
 
Ending Balance
8.4 
 
 
 
66.2 
 
 
 
8.4 
66.2 
 
Other expense
 
 
 
 
 
 
 
 
104.3 
1.0 
 
Unrealized Gains (Losses) on Cash Flow Hedges [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
2.2 
 
 
 
3.0 
2.2 
3.0 
 
Other comprehensive gain (loss) before reclassifications
 
 
 
 
 
 
 
 
(4.1)
0.7 
 
Amount reclassified from accumulated other comprehensive income
 
 
 
 
 
 
 
 
(2.3)
(1.5)
 
Other comprehensive loss, net
 
 
 
 
 
 
 
 
(6.4)
(0.8)
 
Ending Balance
(4.2)
 
 
 
2.2 
 
 
 
(4.2)
2.2 
 
Research and development expense
 
 
 
 
 
 
 
 
1.4 
3.4 
 
Selling and marketing expense
 
 
 
 
 
 
 
 
0.3 
4.3 
 
General and administrative expense
 
 
 
 
 
 
 
 
0.7 
0.5 
 
Cost of revenues
 
 
 
 
 
 
 
 
0.1 
1.1 
 
Foreign Currency Translation Adjustments [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
 
(3.8)
 
 
 
(0.4)
(3.8)
(0.4)
 
Other comprehensive gain (loss) before reclassifications
 
 
 
 
 
 
 
 
(14.2)
(3.4)
 
Amount reclassified from accumulated other comprehensive income
 
 
 
 
 
 
 
 
 
Other comprehensive loss, net
 
 
 
 
 
 
 
 
(14.2)
(3.4)
 
Ending Balance
$ (18.0)
 
 
 
$ (3.8)
 
 
 
$ (18.0)
$ (3.8)
 
Employee Benefit Plans (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 36 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2014
Equity Incentive Plan 2006 [Member]
Dec. 31, 2013
Equity Incentive Plan 2006 [Member]
Dec. 31, 2014
Plan 1996 and 2000 [Member]
Dec. 31, 2014
Equity Incentive Plan 1996, 2000, and 2006 [Member]
Dec. 31, 2014
Employee Stock Purchase Plan 2008 [Member]
Dec. 31, 2014
Stock Compensation Plan [Member]
Dec. 31, 2014
Stock Options [Member]
Equity Incentive Plan 2006 [Member]
Dec. 31, 2014
RSUs and PSAs [Member]
Equity Incentive Plan 2006 [Member]
Dec. 31, 2014
From 2006 [Member]
Stock Options [Member]
Equity Incentive Plan 2006 [Member]
Dec. 31, 2014
Prior to 2006 [Member]
Stock Options [Member]
Dec. 31, 2014
Mykonos, Contrail and WANDL [Member]
Share-Based Compensation Plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock reserved for future issuance for equity incentive plans
 
 
 
 
 
 
 
 
19,000,000 
82,300,000 
 
 
 
 
 
Number of shares in authorized
 
 
 
 
149,500,000.0 
 
 
 
 
 
 
 
 
 
 
Maximum Additional Shares Expire Unexercised, Under 1996 and 2000 Plan
 
 
 
 
 
 
75,000,000.0 
 
 
 
 
 
 
 
 
Shares outstanding under 2006 plan
 
 
 
 
 
 
 
27,100,000 
 
 
 
 
 
 
 
Number of Shares Available for Future Issuance
 
 
 
 
47,800,000 
49,100,000 
 
 
3,300,000 
 
 
 
 
 
 
Maximum Term for Options
 
 
 
 
 
 
 
 
1 year 
 
 
 
7 years 
10 years 
 
Option Vest Period
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
 
 
Vest period for share based compensation that vests solely based on continued employment
 
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
 
Vest period for share based compensation that vests based on other factors
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
Options Assumed, Number of Shares
 
 
900,000 
 
 
 
 
 
 
 
 
 
 
 
8,500,000 
Common shares outstanding from equtiy awards through acquisition
4,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price
 
 
 
 
 
 
 
 
15.00% 
 
 
 
 
 
 
Periodic Payroll Deduction - Percentage of Base Salary
 
 
 
 
 
 
 
 
10.00% 
 
 
 
 
 
 
Maximum Purchase of Common Stock, Shares
 
 
 
 
 
 
 
 
6,000 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Offering Period
 
 
 
 
 
 
 
 
12 months 
 
 
 
 
 
 
Maximum Purchase of Common Stock, Value
 
 
 
 
 
 
 
 
$ 25,000 
 
 
 
 
 
 
Common stock - issued
416,200,000 
495,200,000 
 
 
 
 
 
 
15,700,000 
 
 
 
 
 
 
Stock Option Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Number of Shares
23,100,000 
34,100,000 
38,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
Options Granted, Number of Shares
 
 
3,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
Options Assumed, Number of Shares
 
 
900,000 
 
 
 
 
 
 
 
 
 
 
 
8,500,000 
Options Canceled, Number of Shares
(600,000)
(1,300,000)
(2,800,000)
 
(600,000)
 
 
 
 
 
 
 
 
 
 
Options Exercised, Number of Shares
(5,400,000)
(5,600,000)
(3,600,000)
 
 
 
 
 
 
 
 
 
 
 
 
Options Expired, Number of Shares
(7,200,000)
(4,100,000)
(2,100,000)
 
(7,200,000)
 
 
 
 
 
 
 
 
 
 
Ending Balance, Number of Shares
9,900,000 
23,100,000 
34,100,000 
38,600,000 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Weighted Average Exercise Price
$ 25.15 
$ 24.13 
$ 23.98 
 
 
 
 
 
 
 
 
 
 
 
 
Options Granted, Weighted Average Exercise Price
 
 
$ 22.81 
 
 
 
 
 
 
 
 
 
 
 
 
Options Assumed, Weighted Average Exercise Price
 
 
$ 0.57 
 
 
 
 
 
 
 
 
 
 
 
 
Options Canceled, Weighted Average Exercise Price
$ 30.15 
$ 29.56 
$ 26.64 
 
 
 
 
 
 
 
 
 
 
 
 
Options Exercised, Weighted Average Exercise Price
$ 19.76 
$ 15.58 
$ 11.71 
 
 
 
 
 
 
 
 
 
 
 
 
Options Expired, Weighted Average Exercise Price
$ 29.11 
$ 28.35 
$ 26.97 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance, Weighted Average Exercise Price
$ 24.87 
$ 25.15 
$ 24.13 
$ 23.98 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Remaining Contractual Term at Period End
2 years 
2 years 4 months 24 days 
3 years 1 month 6 days 
3 years 8 months 12 days 
 
 
 
 
 
 
 
 
 
 
 
Aggregate Intrinsic Value at Period End
24,700,000 
44,600,000 
52,500,000 
75,300,000 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected-to-Vest Options, Number of Shares at Period End
9,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected-to-Vest Options, Weighted Average Exercise Price at Period End
$ 25.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest Options, Weighted Average Remaining Contractual Term at Period End
2 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected-to-Vest Options, Aggregate Intrinsic Value at Period End
23,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable Options, Number of Shares at Period End
9,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable Options, Weighted Average Exercise Price at Period End
$ 25.88 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable Options, Weighted Average Remaining Contractual Term at Period End
1 year 8 months 12 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable Options, Aggregate Intrinsic Value at Period End
15,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share Price
$ 22.32 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value
33,400,000 
29,400,000 
27,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
Total Fair Value of Options Vested
$ 20,800,000 
$ 45,200,000 
$ 70,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Benefit Plans, Options Outstanding Exercise Price Range (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Number Outstanding (in number of shares)
9.9 
 
 
 
Weighted Average Remaining Contractual Life (in years)
2 years 
 
 
 
Weighted Average Exercise (in dollars)
$ 24.87 
$ 25.15 
$ 24.13 
$ 23.98 
Number Exercisable (in number of shares)
9.1 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 25.88 
 
 
 
$0.03 - $15.09
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 0.03 
 
 
 
Exercise Price Range, Upper Range Limit
$ 15.09 
 
 
 
Number Outstanding (in number of shares)
1.7 
 
 
 
Weighted Average Remaining Contractual Life (in years)
3 years 7 months 6 days 
 
 
 
Weighted Average Exercise (in dollars)
$ 9.58 
 
 
 
Number Exercisable (in number of shares)
1.3 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 12.23 
 
 
 
$16.39 - $22.59
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 16.00 
 
 
 
Exercise Price Range, Upper Range Limit
$ 21.12 
 
 
 
Number Outstanding (in number of shares)
1.4 
 
 
 
Weighted Average Remaining Contractual Life (in years)
1 year 6 months 
 
 
 
Weighted Average Exercise (in dollars)
$ 20.36 
 
 
 
Number Exercisable (in number of shares)
1.2 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 20.34 
 
 
 
$22.74 - $24.61
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 21.43 
 
 
 
Exercise Price Range, Upper Range Limit
$ 23.84 
 
 
 
Number Outstanding (in number of shares)
1.1 
 
 
 
Weighted Average Remaining Contractual Life (in years)
2 years 
 
 
 
Weighted Average Exercise (in dollars)
$ 23.85 
 
 
 
Number Exercisable (in number of shares)
0.9 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 23.81 
 
 
 
$24.73 - $24.73
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 23.89 
 
 
 
Exercise Price Range, Upper Range Limit
$ 24.20 
 
 
 
Number Outstanding (in number of shares)
0.1 
 
 
 
Weighted Average Remaining Contractual Life (in years)
4 months 24 days 
 
 
 
Weighted Average Exercise (in dollars)
$ 24.73 
 
 
 
Number Exercisable (in number of shares)
0.1 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 24.73 
 
 
 
$25.16- $25.16
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 24.25 
 
 
 
Exercise Price Range, Upper Range Limit
$ 25.49 
 
 
 
Number Outstanding (in number of shares)
1.2 
 
 
 
Weighted Average Remaining Contractual Life (in years)
2 months 12 days 
 
 
 
Weighted Average Exercise (in dollars)
$ 25.16 
 
 
 
Number Exercisable (in number of shares)
1.2 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 25.16 
 
 
 
$25.19 - $26.90
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 25.50 
 
 
 
Exercise Price Range, Upper Range Limit
$ 26.90 
 
 
 
Number Outstanding (in number of shares)
1.0 
 
 
 
Weighted Average Remaining Contractual Life (in years)
1 year 3 months 18 days 
 
 
 
Weighted Average Exercise (in dollars)
$ 26.24 
 
 
 
Number Exercisable (in number of shares)
1.0 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 26.24 
 
 
 
$26.97 - $29.89
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 26.97 
 
 
 
Exercise Price Range, Upper Range Limit
$ 29.89 
 
 
 
Number Outstanding (in number of shares)
1.6 
 
 
 
Weighted Average Remaining Contractual Life (in years)
1 year 9 months 18 days 
 
 
 
Weighted Average Exercise (in dollars)
$ 28.71 
 
 
 
Number Exercisable (in number of shares)
1.6 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 28.70 
 
 
 
$30.01 - $38.93
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 29.93 
 
 
 
Exercise Price Range, Upper Range Limit
$ 38.93 
 
 
 
Number Outstanding (in number of shares)
0.7 
 
 
 
Weighted Average Remaining Contractual Life (in years)
2 years 10 months 24 days 
 
 
 
Weighted Average Exercise (in dollars)
$ 33.57 
 
 
 
Number Exercisable (in number of shares)
0.7 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 33.60 
 
 
 
$40.26 - $40.26
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 40.26 
 
 
 
Exercise Price Range, Upper Range Limit
$ 40.26 
 
 
 
Number Outstanding (in number of shares)
0.7 
 
 
 
Weighted Average Remaining Contractual Life (in years)
2 years 9 months 18 days 
 
 
 
Weighted Average Exercise (in dollars)
$ 40.26 
 
 
 
Number Exercisable (in number of shares)
0.7 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 40.26 
 
 
 
$44.00 - $44.00
 
 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
 
 
Exercise Price Range, Lower Range Limit
$ 44.00 
 
 
 
Exercise Price Range, Upper Range Limit
$ 44.00 
 
 
 
Number Outstanding (in number of shares)
0.4 
 
 
 
Weighted Average Remaining Contractual Life (in years)
3 years 
 
 
 
Weighted Average Exercise (in dollars)
$ 44.00 
 
 
 
Number Exercisable (in number of shares)
0.4 
 
 
 
Weighted Average Exercise Price (in dollars)
$ 44.00 
 
 
 
Employee Benefit Plans, Share Based Compensation, Equity Instruments Other Than Options (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 12 Months Ended
Feb. 20, 2014
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2012
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2014
Restricted Stock Units (RSUs) [Member]
Minimum [Member]
Dec. 31, 2014
Restricted Stock Units (RSUs) [Member]
Maximum [Member]
Dec. 31, 2014
Performance Shares (PSAs) [Member]
Dec. 31, 2013
Performance Shares (PSAs) [Member]
Dec. 31, 2012
Performance Shares (PSAs) [Member]
Dec. 31, 2014
Performance Shares (PSAs) [Member]
Minimum [Member]
Dec. 31, 2014
Performance Shares (PSAs) [Member]
Maximum [Member]
Dec. 31, 2014
RSUs, RSAs, and PSAs [Member]
Dec. 31, 2013
RSUs, RSAs, and PSAs [Member]
Dec. 31, 2012
RSUs, RSAs, and PSAs [Member]
Dec. 31, 2011
RSUs, RSAs, and PSAs [Member]
Dec. 31, 2014
RSA [Member]
Dec. 31, 2013
RSA [Member]
Dec. 31, 2012
RSA [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
3 years 
4 years 
 
 
 
2 years 
3 years 
 
 
 
 
 
 
 
Restricted Stock Units And Performance Share Awards Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Number of Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.4 
26.8 
19.6 
 
 
 
 
Awards Granted, Number of Shares
 
 
 
 
10.0 
10.3 
9.9 
 
 
1.4 
2.2 
2.2 
 
 
 
 
 
 
 
 
 
Awards Assumed, Number of Shares
 
 
 
 
0.4 
 
0.2 
 
 
0.2 
 
 
 
 
 
 
 
 
0.9 
 
5.8 
Awards Vested, Number of Shares
 
 
 
 
(7.3)
(6.1)
(3.1)
 
 
(1.1)
(1.1)
(1.9)
 
 
 
 
 
 
(1.4)
(1.6)
(0.7)
Awards Canceled, Number of Shares
 
 
 
 
(4.0)
(3.4)
(2.9)
 
 
(3.2)
(1.7)
(2.3)
 
 
 
 
 
 
 
 
 
Ending Balance, Number of Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21.3 
25.4 
26.8 
19.6 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Weighted Average Grant-Date Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 23.44 
$ 27.76 
$ 30.27 
 
 
 
 
Awards Granted, Weighted Average Grant-Date Fair Value
 
 
 
 
$ 22.52 
$ 20.32 
$ 20.79 
 
 
$ 24.25 
$ 21.27 
$ 23.07 
 
 
 
 
 
 
 
 
 
Awards Assumed, Weighted Average Grant-Date Fair Value
 
 
 
$ 22.21 
$ 22.66 
 
 
 
 
$ 22.66 
 
 
 
 
 
 
 
 
$ 22.66 
 
$ 19.59 
Awards Vested, Weighted Average Grant-Date Fair Value
 
 
 
 
$ 22.98 
$ 26.15 
$ 27.04 
 
 
$ 36.19 
$ 28.52 
$ 18.21 
 
 
 
 
 
 
$ 19.59 
$ 19.59 
$ 19.59 
Awards Canceled, Weighted Average Grant-Date Fair Value
 
 
 
 
$ 21.63 
$ 22.99 
$ 27.77 
 
 
$ 30.43 
$ 29.10 
$ 29.71 
 
 
 
 
 
 
 
 
 
Ending Balance, Weighted Average Grant-Date Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 22.05 
$ 23.44 
$ 27.76 
$ 30.27 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 1 month 6 days 
1 year 1 month 6 days 
1 year 8 months 12 days 
1 year 6 months 
 
 
 
RSUs and PSAs, Aggregate Intrinsic Value at Period End
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 475.0 
$ 573.5 
$ 565.0 
$ 400.5 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Number of Shares at Period End
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.7 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Grant Date Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 21.99 
 
 
 
 
 
 
Vested and Expected-to-Vest Options, Weighted Average Remaining Contractual Term at Period End
 
2 years 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Aggregate Intrinsic Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
395.2 
 
 
 
 
 
 
Aggregate Number Of Shares Subject to PSAs Granted
 
 
 
 
 
 
 
 
 
0.9 
1.1 
0.9 
 
 
 
 
 
 
 
 
 
Minimum shares to be Issued on achievement of performance goals in respect of PSAs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum shares to be issued on achievement of performance goals in respect of PSAs
 
 
 
 
 
 
 
 
 
1.4 
2.2 
2.2 
 
 
 
 
 
 
 
 
 
Fair value of RSUs, RSAs and PSAs
 
210.1 
221.5 
132.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intended quarterly dividend
$ 0.10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends paid, in dollar per share
 
$ 0.10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends paid
 
$ 86.0 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Benefit Plans, Shares Available For Grant (Details)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Shares Available For Grant
 
 
 
Options Canceled, Number of Shares
600,000 
1,300,000 
2,800,000 
Options Expired, Number of Shares
7,200,000 
4,100,000 
2,100,000 
Shares counted against common shares authorized
2.1 
 
 
Restricted Stock Units and Performance Share Awards [Member]
 
 
 
Shares Available For Grant
 
 
 
Fair Market Value on Date of Grant For RSUS And PSAS Issued at Discount, Maximum Percentage
100.00% 
 
 
Equity Incentive Plan 2006 [Member]
 
 
 
Shares Available For Grant
 
 
 
Beginning Balance, Number of Shares
49,100,000 
 
 
Awards Granted, Number of Shares
(24,100,000)
 
 
Awards Canceled, Number of Shares
15,000,000 
 
 
Options Canceled, Number of Shares
600,000 
 
 
Options Expired, Number of Shares
7,200,000 
 
 
Ending Balance, Number of Shares
47,800,000 
 
 
Employee Benefit Plans, Assumptions and Resulting Estimates of Fair Value (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Options [Member]
 
 
 
Estimates of Fair Value
 
 
 
Volatility
 
 
45.00% 
Risk-free interest rate
 
 
0.70% 
Expected life (years)
 
 
4 years 2 months 12 days 
Dividend yield
 
 
0.00% 
Weighted-average fair value per share
 
 
$ 8.47 
Employee Stock Purchase Plan [Member]
 
 
 
Estimates of Fair Value
 
 
 
Volatility
30.00% 
36.00% 
47.00% 
Risk-free interest rate
0.10% 
0.10% 
0.10% 
Expected life (years)
6 months 
6 months 
6 months 
Dividend yield
 
0.00% 
0.00% 
Weighted-average fair value per share
$ 5.72 
$ 5.54 
$ 5.53 
Market-based RSUs [Member]
 
 
 
Estimates of Fair Value
 
 
 
Volatility
36.00% 
 
 
Risk-free interest rate
1.60% 
 
 
Weighted-average fair value per share
$ 16.89 
 
 
Minimum [Member] |
Stock Options [Member]
 
 
 
Estimates of Fair Value
 
 
 
Dividend yield
0.00% 
 
 
Minimum [Member] |
Market-based RSUs [Member]
 
 
 
Estimates of Fair Value
 
 
 
Dividend yield
0.00% 
 
 
Maximum [Member] |
Stock Options [Member]
 
 
 
Estimates of Fair Value
 
 
 
Dividend yield
1.80% 
 
 
Maximum [Member] |
Market-based RSUs [Member]
 
 
 
Estimates of Fair Value
 
 
 
Dividend yield
2.00% 
 
 
Employee Stock Purchase Plan 2008 [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Offering period (in months)
6 months 
 
 
Common shares purchased through ESPP
2.9 
3.3 
3.5 
Average exercise price of shares purchased through ESPP (in dollar per share)
$ 19.30 
$ 16.53 
$ 16.26 
Employee Benefit Plans, Share Based Compensation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
$ 240.0 
$ 244.6 
$ 243.4 
Stock Options [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
14.9 
31.5 
58.9 
Unrecognized Compensation Cost
11.4 
 
 
Weighted Average Period that Unrecognized Compensation Cost Will be Recognized (in years)
1 year 3 months 18 days 
 
 
RSUs, RSAs, and PSAs [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
209.7 
196.8 
163.7 
Employee Stock Purchase Plan [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
15.4 
16.3 
20.8 
Restricted Stock Units and Performance Share Awards [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Unrecognized Compensation Cost
257.8 
 
 
Weighted Average Period that Unrecognized Compensation Cost Will be Recognized (in years)
1 year 8 months 12 days 
 
 
Cost of Revenues, Product [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
5.0 
4.7 
4.6 
Cost of Revenues, Service [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
14.2 
15.4 
17.0 
Research and Development Expense [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
134.5 
127.6 
109.1 
Selling and Marketing Expense [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
60.2 
70.9 
81.6 
General and Administrative Expense [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-Based Compensation Expense
$ 26.1 
$ 26.0 
$ 31.1 
Employee Benefit Plans, 401(k) plan and Deferred Compensation Plan (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Employee Benefit Textuals [Abstract]
 
 
 
Employee Contribution Matched in Percent
30.00% 
 
 
Matching Contributions to Plan
$ 20.2 
$ 20.7 
$ 20.2 
NQDC [Member]
 
 
 
Employee Benefit Textuals [Abstract]
 
 
 
Deferred Compensation Liability
$ 16.3 
$ 15.4 
 
Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net Revenues [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
$ 1,101.6 
$ 1,125.9 
$ 1,229.5 
$ 1,170.1 
$ 1,273.6 
$ 1,185.6 
$ 1,150.7 
$ 1,059.2 
$ 4,627.1 
$ 4,669.1 
$ 4,365.4 
Routing [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
2,223.9 
2,318.0 
2,037.6 
Switching [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
721.2 
638.0 
554.8 
Security [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
463.6 
563.9 
669.7 
Total product [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
3,408.7 
3,519.9 
3,262.1 
Total service [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
 
 
 
 
 
 
 
$ 1,218.4 
$ 1,149.2 
$ 1,103.3 
Segments, Geographical (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 1,101.6 
$ 1,125.9 
$ 1,229.5 
$ 1,170.1 
$ 1,273.6 
$ 1,185.6 
$ 1,150.7 
$ 1,059.2 
$ 4,627.1 
$ 4,669.1 
$ 4,365.4 
Property and equipment, net and purchased intangible assets, net
966.7 
 
 
 
989.2 
 
 
 
966.7 
989.2 
 
Verizon [Member] |
Sales Revenue, Segment [Member] |
Customer Concentration Risk [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Concentration Risk, Percentage
 
 
 
 
 
 
 
 
 
 
10.30% 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
2,410.6 
2,381.5 
2,067.5 
Property and equipment, net and purchased intangible assets, net
871.7 
 
 
 
885.6 
 
 
 
871.7 
885.6 
 
Other Americas [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
219.7 
232.0 
218.4 
Americas [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
2,630.3 
2,613.5 
2,285.9 
EMEA [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
1,263.3 
1,256.9 
1,266.3 
Asia Pacific [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
733.5 
798.7 
813.2 
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net and purchased intangible assets, net
$ 95.0 
 
 
 
$ 103.6 
 
 
 
$ 95.0 
$ 103.6 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Components of income before provision for income taxes and noncontrolling interest
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
 
 
 
 
 
 
$ (509.7)
$ 248.7 
$ 114.1 
Foreign
 
 
 
 
 
 
 
 
423.4 
276.8 
177.4 
(Loss) income before income taxes
(694.4)
165.6 
294.5 
148.0 
185.2 
137.5 
125.9 
76.9 
(86.3)
525.5 
291.5 
Current provision (benefit):
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
180.1 
(12.9)
94.3 
States
 
 
 
 
 
 
 
 
15.2 
(5.0)
8.4 
Foreign
 
 
 
 
 
 
 
 
33.7 
32.5 
37.1 
Total current provision (benefit)
 
 
 
 
 
 
 
 
229.0 
14.6 
139.8 
Deferred provision (benefit):
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
17.3 
51.2 
(28.8)
States
 
 
 
 
 
 
 
 
1.2 
(2.7)
(1.5)
Foreign
 
 
 
 
 
 
 
 
0.5 
22.6 
3.5 
Total deferred provision (benefit)
 
 
 
 
 
 
 
 
19.0 
71.1 
(26.8)
Income tax benefits attributable to employee stock plan activity
 
 
 
 
 
 
 
 
(8.0)
Total provision for income taxes
75.2 
62.0 
73.4 
37.4 
33.4 
38.4 
28.0 
(14.1)
248.0 
85.7 
105.0 
Income tax reconciliation
 
 
 
 
 
 
 
 
 
 
 
Expected provision at 35% rate
 
 
 
 
 
 
 
 
(30.2)
184.0 
102.0 
State taxes (benefit), net of federal benefit
 
 
 
 
 
 
 
 
9.5 
(3.6)
2.0 
Foreign income at different tax rates
 
 
 
 
 
 
 
 
(90.2)
(37.7)
(11.6)
Research and development credits
 
 
 
 
 
 
 
 
(17.1)
(32.5)
(0.5)
Share-based compensation
 
 
 
 
 
 
 
 
25.3 
25.6 
22.4 
Non-deductible goodwill impairment
 
 
 
 
 
 
 
 
297.5 
Gain on sale of Junos Pulse
 
 
 
 
 
 
 
 
75.6 
Release of valuation allowance
 
 
 
 
 
 
 
 
(22.8)
(3.4)
Settlement with tax authorities
 
 
 
 
 
 
 
 
(28.3)
Domestic production activities
 
 
 
 
 
 
 
 
(6.8)
(26.3)
Non-deductible compensation
 
 
 
 
 
 
 
 
3.2 
1.5 
0.6 
Equity investment gain on acquisition
 
 
 
 
 
 
 
 
(5.3)
Other
 
 
 
 
 
 
 
 
4.0 
3.0 
(1.2)
Total provision for income taxes
75.2 
62.0 
73.4 
37.4 
33.4 
38.4 
28.0 
(14.1)
248.0 
85.7 
105.0 
Net income tax benefit related to items unique during current year
 
 
 
 
 
 
 
 
 
64.2 
 
Income tax benefit for a multi-year claim related to the U.S. production activities deduction
 
 
 
 
 
 
 
 
 
19.7 
 
U.S. federal R&D tax credit resulting from the American Taxpayer Relief Act of 2012
 
 
 
 
 
 
 
 
 
$ 16.2 
 
Income Taxes, Deferred Taxes (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Deferred tax assets:
 
 
Net operating loss carry-forwards
$ 1,300,000 
$ 1,100,000 
Foreign tax credit carry-forwards
69,700,000 
63,400,000 
Research and other credit carry-forwards
122,500,000 
106,600,000 
Deferred revenue
104,900,000 
71,000,000 
Stock-based compensation
55,800,000 
86,100,000 
Reserves and accruals not currently deductible
129,800,000 
153,900,000 
Other
19,800,000 
13,700,000 
Total deferred tax assets
503,800,000 
495,800,000 
Valuation allowance
(144,500,000)
(155,700,000)
Deferred tax assets, net of valuation allowance
359,300,000 
340,100,000 
Deferred tax liabilities:
 
 
Property and equipment basis differences
(35,600,000)
(3,100,000)
Purchased intangibles
(16,700,000)
(10,100,000)
Unremitted foreign earnings
(260,600,000)
(258,900,000)
Deferred compensation and other
(5,100,000)
(38,700,000)
Other
(400,000)
Total deferred tax liabilities
318,000,000 
311,200,000 
Current deferred tax assets
147,000,000 
79,800,000 
Long-term deferred tax assets
1,700,000 
2,400,000 
Long-term deferred tax liabilities
(107,400,000)
(53,300,000)
Net deferred tax assets
41,300,000 
28,900,000 
Valuation allowance
144,500,000 
155,700,000 
Change in DTA valuation allowance
11,200,000 
 
Cumulative undistributed earnings of certain foreign subsidiaries
1,900,000,000 
 
Federal [Member]
 
 
Deferred tax liabilities:
 
 
Net operating loss carry-forwards
1,600,000 
 
California [Member]
 
 
Deferred tax liabilities:
 
 
Net operating loss carry-forwards
27,800,000 
 
Tax credit carry-forwards
231,900,000 
 
Tax credit carry-forward to be credited to APIC when realized
16,200,000 
 
California Deferred Tax Assets [Member]
 
 
Deferred tax assets:
 
 
Valuation allowance
(125,200,000)
 
Deferred tax liabilities:
 
 
Valuation allowance
125,200,000 
 
Massachusetts Deferred Tax Assets [Member]
 
 
Deferred tax assets:
 
 
Valuation allowance
(9,700,000)
 
Deferred tax liabilities:
 
 
Valuation allowance
9,700,000 
 
Capital Loss Carryforward [Member]
 
 
Deferred tax assets:
 
 
Valuation allowance
(9,600,000)
 
Deferred tax liabilities:
 
 
Valuation allowance
$ 9,600,000 
 
Income Taxes, Income Tax Contingencies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Maximum [Member]
Dec. 31, 2009
India Tax Authority [Member]
Dec. 31, 2014
Other Long Term Liabilities [Member]
Dec. 31, 2013
Other Long Term Liabilities [Member]
Dec. 31, 2012
Other Long Term Liabilities [Member]
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
 
 
 
 
 
Balance at beginning of year
$ 137.6 
$ 136.1 
$ 132.2 
 
 
 
 
 
Current Year [Abstract]
 
 
 
 
 
 
 
 
Additions
62.5 
15.8 
8.8 
 
 
 
 
 
Prior Years [Abstract]
 
 
 
 
 
 
 
 
Additions
0.6 
22.6 
0.9 
 
 
 
 
 
Reductions
(2.2)
 
 
 
 
 
Settlements
(31.1)
(1.2)
 
 
 
 
 
Lapses in statutes of limitations
(1.5)
(3.6)
(4.6)
 
 
 
 
 
Balance at end of year
199.2 
137.6 
136.1 
 
 
 
 
 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
164.9 
 
 
 
 
 
 
 
Interest and penalties accrued related to unrecognized tax benefits
 
 
 
 
 
22.3 
18.4 
16.7 
Tax (expense) benefit recognized for net interest and penalties in the Consolidated Statements of Operations
(2.8)
(0.6)
0.6 
 
 
 
 
 
Possible decrease in gross unrecognized tax benefits within next 12 months
 
 
 
(3.2)
 
 
 
 
Settlement including interest with the IRS related to intercompany R&D cost sharing arrangement
 
19.6 
 
 
 
 
 
 
Penalties and interest accrued related to investigation of 2004 to 2008 tax return by India tax authorities
 
 
 
 
$ 4.6 
 
 
 
Net Income per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
$ (769.6)
$ 103.6 
$ 221.1 
$ 110.6 
$ 151.8 
$ 99.1 
$ 97.9 
$ 91.0 
$ (334.3)
$ 439.8 
$ 186.5 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
 
 
 
 
 
 
 
 
457.4 
501.8 
520.9 
Dilutive effect of employee stock awards
 
 
 
 
 
 
 
 
8.5 
5.3 
Weighted-average shares used to compute diluted net income per share
 
 
 
 
 
 
 
 
457.4 
510.3 
526.2 
Net (loss) income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
$ (1.81)
$ 0.23 
$ 0.47 
$ 0.23 
$ 0.30 
$ 0.20 
$ 0.19 
$ 0.18 
$ (0.73)
$ 0.88 
$ 0.36 
Diluted (in dollars per share)
$ (1.81)
$ 0.23 
$ 0.46 
$ 0.22 
$ 0.30 
$ 0.19 
$ 0.19 
$ 0.18 
$ (0.73)
$ 0.86 
$ 0.35 
Net Income per Share Textuals
 
 
 
 
 
 
 
 
 
 
 
Anti-dilutive shares excluded from computation of diluted earnings per share
 
 
 
 
 
 
 
 
20.8 
13.2 
32.3 
Commitments and Contingencies (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Fixed Rate Note Due 2016 [Member]
Mar. 31, 2011
Fixed Rate Note Due 2016 [Member]
Dec. 31, 2014
Fixed Rate Note Due 2021 [Member]
Mar. 31, 2011
Fixed Rate Note Due 2021 [Member]
Dec. 31, 2014
Fixed Rate Note Due 2024 [Member]
Feb. 28, 2014
Fixed Rate Note Due 2024 [Member]
Dec. 31, 2014
Fixed Rate Note Due 2041 [Member]
Mar. 31, 2011
Fixed Rate Note Due 2041 [Member]
Dec. 31, 2014
Purchase Commitment [Member]
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
2015
$ 41,200,000 
 
 
 
 
 
 
 
 
 
 
 
2016
30,100,000 
 
 
 
 
 
 
 
 
 
 
 
2017
22,000,000 
 
 
 
 
 
 
 
 
 
 
 
2018
14,300,000 
 
 
 
 
 
 
 
 
 
 
 
2019
7,500,000 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
22,000,000 
 
 
 
 
 
 
 
 
 
 
 
Total
137,100,000 
 
 
 
 
 
 
 
 
 
 
 
Rent expense
46,000,000 
52,800,000 
63,200,000 
 
 
 
 
 
 
 
 
 
Purchase commitments
476,200,000 
 
 
 
 
 
 
 
 
 
 
 
Accrual for estimated carrying charges or obsolete materials charges
25,300,000 
 
 
 
 
 
 
 
 
 
 
 
Net losses on firm purchase commitments
 
 
 
 
 
 
 
 
 
 
 
9,400,000 
Senior notes
1,349,000,000 
999,300,000 
 
 
 
 
 
 
 
 
 
 
Long-term debt
1,350,000,000 
 
 
300,000,000 
300,000,000 
300,000,000 
300,000,000 
350,000,000 
350,000,000 
400,000,000 
400,000,000 
 
Stated interest rate
 
 
 
 
3.10% 
4.60% 
 
4.50% 
4.50% 
5.95% 
 
 
Indemnity-related and service-related escrows
46,000,000 
 
 
 
 
 
 
 
 
 
 
 
Campus build-out commitments
3,500,000 
 
 
 
 
 
 
 
 
 
 
 
Non-cancelable agreements
19,200,000 
 
 
 
 
 
 
 
 
 
 
 
Long-term income tax payable
$ 177,500,000 
$ 114,400,000 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies, Guarantees (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Financing guarantees, bank guarantees, and standby letters of credit [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 26.2 
$ 40.1 
Financing guarantee with recourse [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 22.2 
 
Selected Quarterly Financial Data (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 12 Months Ended
Jul. 22, 2014
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Product
 
$ 794.0 
$ 809.5 
$ 929.2 
$ 876.0 
$ 973.5 
$ 900.8 
$ 863.8 
$ 781.8 
$ 3,408.7 
$ 3,519.9 
$ 3,262.1 
Service
 
307.6 
316.4 
300.3 
294.1 
300.1 
284.8 
286.9 
277.4 
1,218.4 
1,149.2 
1,103.3 
Total net revenues
 
1,101.6 
1,125.9 
1,229.5 
1,170.1 
1,273.6 
1,185.6 
1,150.7 
1,059.2 
4,627.1 
4,669.1 
4,365.4 
Cost of revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Product
 
310.9 
290.0 
359.3 
326.6 
351.6 
325.5 
321.3 
278.2 
1,286.8 
1,276.6 
1,204.0 
Service
 
115.6 
121.1 
122.0 
123.4 
118.4 
113.6 
108.9 
110.2 
482.1 
451.1 
452.6 
Total cost of revenues
 
426.5 
411.1 
481.3 
450.0 
470.0 
439.1 
430.2 
388.4 
1,768.9 
1,727.7 
1,656.6 
Gross margin
 
675.1 
714.8 
748.2 
720.1 
803.6 
746.5 
720.5 
670.8 
2,858.2 
2,941.4 
2,708.8 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
233.5 
253.2 
255.5 
264.0 
258.7 
264.6 
257.7 
262.2 
1,006.2 
1,043.2 
1,101.6 
Sales and marketing
 
243.0 
249.2 
258.0 
273.4 
283.2 
269.5 
267.1 
256.1 
1,023.6 
1,075.9 
1,045.5 
General and administrative
 
40.6 
55.0 
60.6 
74.9 
48.2 
61.4 
49.2 
58.5 
231.1 
217.3 
206.8 
Restructuring and other (credit) charges
 
9.8 
(15.0)
58.2 
114.0 
18.1 
6.0 
8.0 
7.0 
 
 
 
Impairment of goodwill
 
850.0 
 
 
 
 
850.0 
Total operating expenses
 
1,376.9 
542.4 
632.3 
726.3 
608.2 
601.5 
582.0 
583.8 
3,277.9 
2,375.5 
2,400.7 
Operating (loss) income
 
(701.8)
172.4 
115.9 
(6.2)
195.4 
145.0 
138.5 
87.0 
(419.7)
565.9 
308.1 
Other income (expense), net
 
7.4 
(6.8)
178.6 
154.2 
(10.2)
(7.5)
(12.6)
(10.1)
333.4 
(40.4)
(16.6)
(Loss) income before income taxes
 
(694.4)
165.6 
294.5 
148.0 
185.2 
137.5 
125.9 
76.9 
(86.3)
525.5 
291.5 
Income tax provision
 
75.2 
62.0 
73.4 
37.4 
33.4 
38.4 
28.0 
(14.1)
248.0 
85.7 
105.0 
Net (loss) income
 
(769.6)
103.6 
221.1 
110.6 
151.8 
99.1 
97.9 
91.0 
(334.3)
439.8 
186.5 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
 
$ (1.81)
$ 0.23 
$ 0.47 
$ 0.23 
$ 0.30 
$ 0.20 
$ 0.19 
$ 0.18 
$ (0.73)
$ 0.88 
$ 0.36 
Diluted (in dollars per share)
 
$ (1.81)
$ 0.23 
$ 0.46 
$ 0.22 
$ 0.30 
$ 0.19 
$ 0.19 
$ 0.18 
$ (0.73)
$ 0.86 
$ 0.35 
Cash dividends declared per common stock
$ 0.10 
$ 0.10 
$ 0.10 
$ 0 
$ 0 
 
 
 
 
$ 0.20 
$ 0 
$ 0 
Restructuring charges
 
 
 
 
 
 
 
 
 
69.3 
 
 
Publicly-traded equity and privately-held investments, net realized gain
 
 
 
 
163.0 
 
 
 
 
163.0 
 
 
Net gain on legal settlement
 
 
0.8 
195.3 
 
 
 
 
 
196.1 
Gain (loss) on disposition of business
 
 
 
 
 
 
 
 
 
19.6 
Restructuring Plan 2013 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other (credit) charges
 
 
 
 
 
17.6 
 
 
 
 
 
 
Operating expenses [Member] |
Restructuring Plan 2013 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other (credit) charges
 
 
 
 
 
 
7.4 
 
 
 
 
 
Cost of Sales [Member] |
Restructuring Plan 2013 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other (credit) charges
 
 
 
 
 
 
3.7 
 
 
 
 
 
Service Life [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Change in accounting estimate- depreciation expense impact
 
 
 
 
 
(7.9)
(9.4)
(11.0)
 
 
 
 
Change in accounting estimate, diluted net income per share impact
 
 
 
 
 
$ 0.01 
$ 0.01 
$ 0.01 
 
 
 
 
Junos Pulse [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) on disposition of business
 
 
 
 
 
 
 
 
 
19.6 
 
 
Asset Write-Down [Member] |
Restructuring Plan 2014 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
20.6 
2.9 
8.9 
84.7 
 
 
 
 
12.3 
 
 
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
52.6 
 
 
Employee Severance [Member] |
Restructuring Plan 2014 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
6.9 
7.1 
9.9 
28.0 
 
 
 
 
52.0 
 
 
Contract Termination [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
2.3 
 
 
Contract Termination [Member] |
Restructuring Plan 2014 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
1.5 
0.8 
 
 
 
 
2.3 
 
 
Acceleration of Certain End of Life Products [Member] |
Restructuring Plan 2014 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
2.3 
8.4 
 
 
 
 
6.7 
 
 
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
14.4 
 
 
Facility Closing [Member] |
Restructuring Plan 2014 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
1.6 
25.0 
37.6 
 
 
 
 
 
14.2 
 
 
Inventory Write-down [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
 
 
Inventory Write-down [Member] |
Restructuring Plan 2014 [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
11.5 
 
 
 
 
 
15.5 
 
 
Security [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
 
463.6 
563.9 
669.7 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of goodwill
 
$ 850.0 
 
 
 
 
 
 
 
$ 850.0 
 
 
Subsequent Events (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 2 Months Ended
Jul. 22, 2014
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Jan. 27, 2015
First Quarter of 2015 [Member]
Subsequent Event [Member]
Dec. 31, 2014
Stock Repurchase Program 2014 [Member]
Feb. 20, 2015
Stock Repurchase Program 2014 [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per common stock
$ 0.10 
$ 0.10 
$ 0.10 
$ 0 
$ 0 
$ 0.20 
$ 0 
$ 0 
$ 0.10 
 
 
Stock Repurchased During Period, Shares
 
 
 
 
 
 
 
 
 
 
10.9 
Stock Repurchased During Period, Value
 
 
 
 
 
 
 
 
 
 
$ 248,100,000 
Common Stock Repurchased Under Stock Repurchase Program Average Purchase Price
 
 
 
 
 
$ 22.42 
$ 19.76 
$ 18.05 
 
 
$ 22.75 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
 
 
 
 
 
 
 
 
 
$ 1,200,000,000 
$ 926,900,000 
Schedule II- Valuation and Qualifying Account (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Allowance for Doubtful Accounts [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at the beginning of year
$ 5.4 
$ 9.5 
$ 9.5 
Charged to (Reversed from) Costs and Expenses
(0.7)
(3.8)
0.1 
Write-offs, Net of Recoveries
(0.3)
(0.1)
Balance at the end of year
4.7 
5.4 
9.5 
Sales Returns Reserve [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at the beginning of year
49.0 
52.7 
52.0 
Charged as a Reduction in Revenues
53.2 
35.0 
40.0 
Charged to Other Accounts
80.9 
61.5 
48.6 
Used
(132.9)
(100.2)
(87.9)
Balance at the end of year
$ 50.2 
$ 49.0 
$ 52.7