JUNIPER NETWORKS INC, 10-K filed on 2/25/2011
Annual Report
Document and Entity Information Document
Year Ended
Dec. 31, 2010
Feb. 18, 2011
Jun. 30, 2010
Document Information [Line Items]
 
 
 
Entity Registrant Name
JUNIPER NETWORKS INC 
 
 
Entity Central Index Key
0001043604 
 
 
Document Type
10-K 
 
 
Document Period End Date
2010-12-31 
 
 
Amendment Flag
FALSE 
 
 
Document Fiscal Year Focus
2010 
 
 
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
 
534,922,000 
 
Entity Public Float
 
 
8,678,000,000 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data
Year Ended
Dec. 31,
3 Months Ended
Dec. 31, 2010
3 Months Ended
Sep. 30, 2010
3 Months Ended
Jun. 30, 2010
3 Months Ended
Mar. 31, 2010
3 Months Ended
Dec. 31, 2009
3 Months Ended
Sep. 30, 2009
3 Months Ended
Jun. 30, 2009
3 Months Ended
Mar. 31, 2009
2010
2009
2008
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
$ 962,200 
$ 801,200 
$ 774,100 
$ 721,200 
$ 739,100 
$ 634,100 
$ 607,000 
$ 587,800 
$ 3,258,651 
$ 2,567,992 
$ 2,910,960 
Service
227,800 
211,200 
204,200 
191,400 
202,400 
189,800 
179,400 
176,300 
834,615 
747,920 
661,416 
Total net revenues
1,190,000 
1,012,400 
978,300 
912,600 
941,500 
823,900 
786,400 
764,100 
4,093,266 
3,315,912 
3,572,376 
Cost of revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
299,700 
247,000 
231,800 
222,400 
234,800 
206,300 
207,600 
193,000 
1,000,865 
841,722 
867,595 
Service
98,300 
87,600 
86,600 
78,200 
75,500 
74,300 
72,400 
68,800 
350,654 
290,987 
269,298 
Total cost of revenues
398,000 
334,600 
318,400 
300,600 
310,300 
280,600 
280,000 
261,800 
1,351,519 
1,132,709 
1,136,893 
Gross margin
792,000 
677,800 
659,900 
612,000 
631,200 
543,300 
506,400 
502,300 
2,741,747 
2,183,203 
2,435,483 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Research and development
254,900 
231,200 
224,800 
207,000 
187,200 
185,200 
183,900 
185,400 
917,855 
741,708 
731,151 
Sales and marketing
257,700 
204,700 
202,300 
192,400 
211,300 
183,400 
176,600 
187,900 
857,072 
759,131 
812,013 
General and administrative
45,100 
43,800 
45,900 
43,100 
41,200 
39,900 
39,200 
39,200 
177,859 
159,459 
144,837 
Amortization of purchased intangible assets
900 
900 
1,200 
1,100 
1,200 
1,300 
3,500 
4,400 
4,230 
10,416 
43,508 
Litigation settlement charges
 
 
 
 
181,300 
1,000 
0 
0 
0 
182,331 
9,000 
Restructuring charges
2,300 
200 
200 
8,100 
3,200 
4,500 
7,500 
4,200 
10,805 
19,463 
0 
Acquisition-related charges
4,300 
1,500 
500 
0 
 
 
 
 
6,342 
0 
0 
Total operating expenses
565,200 
482,300 
474,900 
451,700 
625,400 
415,300 
410,700 
421,100 
1,974,163 
1,872,508 
1,740,509 
Operating income
226,800 
195,500 
185,000 
160,300 
5,800 
128,000 
95,700 
81,200 
767,584 
310,695 
694,974 
Interest and other income, net
(600)
200 
800 
1,400 
300 
1,700 
2,900 
2,000 
1,917 
6,928 
48,749 
Gain (loss) on equity investments
5,400 
0 
3,200 
0 
(2,200)
0 
(1,600)
(1,700)
8,653 
(5,562)
(14,832)
Income before income taxes and noncontrolling interest
231,600 
195,700 
189,000 
161,700 
3,900 
129,700 
97,000 
81,500 
778,154 
312,061 
728,891 
Provision for income taxes
41,500 
61,400 
58,700 
(2,900)
(17,200)
45,900 
82,200 
85,900 
158,781 
196,833 
217,142 
Consolidated net income
190,100 
134,300 
130,300 
164,600 
21,100 
83,800 
14,800 
(4,400)
619,373 
115,228 
511,749 
Adjust for net (income) loss attributable to noncontrolling interest
100 
200 
200 
(1,500)
1,800 
0 
0 
0 
(971)
1,771 
0 
Net income attributable to Juniper Networks
190,200 
134,500 
130,500 
163,100 
22,900 
83,800 
14,800 
(4,400)
618,402 
116,999 
511,749 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
 
 
 
 
Basic
0.36 
0.26 
0.25 
0.31 
0.04 
0.16 
0.03 
(0.01)
1.18 
0.22 
0.96 
Diluted
$ 0.35 
$ 0.25 
$ 0.24 
$ 0.3 
$ 0.04 
$ 0.16 
$ 0.03 
$ (0.01)
$ 1.15 
$ 0.22 
$ 0.93 
Shares used in computing net income per share:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
522,444 
523,603 
530,337 
Diluted
 
 
 
 
 
 
 
 
538,790 
534,015 
551,433 
Consolidated Balance Sheets (USD $)
In Thousands
Year Ended
Dec. 31,
2010
2009
Current assets:
 
 
Cash and cash equivalents
$ 1,811,887 
$ 1,604,723 
Short-term investments
474,514 
570,522 
Accounts receivable, net of allowance for doubtful accounts of $10,110 for 2010 and $9,116 for 2009
596,622 
458,652 
Deferred tax assets, net
161,535 
196,318 
Prepaid expenses and other current assets
169,812 
48,744 
Total current assets
3,214,370 
2,878,959 
Property and equipment, net
493,881 
455,651 
Long-term investments
535,178 
483,505 
Restricted cash
119,346 
53,732 
Purchased intangible assets, net
121,803 
13,834 
Goodwill
3,927,807 
3,658,602 
Long-term deferred tax assets, net
0 
10,555 
Other long-term assets
55,466 
35,425 
Total assets
8,467,851 
7,590,263 
Current liabilities:
 
 
Accounts payable
292,270 
242,591 
Accrued compensation
256,746 
176,551 
Accrued warranty
35,931 
38,199 
Deferred revenue
660,264 
571,652 
Income taxes payable
25,000 
34,936 
Accrued litigation settlements
0 
169,330 
Other accrued liabilities
201,765 
142,526 
Total current liabilities
1,471,976 
1,375,785 
Long-term deferred revenue
224,165 
181,937 
Long-term income tax payable
103,823 
170,245 
Other long-term liabilities
59,087 
37,531 
Commitments and Contingencies (Note 15)
  
  
Juniper Networks stockholders' equity:
 
 
Convertible preferred stock, $0.00001 par value; 10,000 shares authorized; none issued and outstanding
0 
0 
Common stock, $0.00001 par value; 1,000,000 shares authorized; 525,378 shares and 519,341 shares issued and outstanding at December 31, 2010, and 2009, respectively
5 
5 
Additional paid-in capital
9,717,783 
9,060,089 
Accumulated other comprehensive loss
(1,251)
(1,433)
Accumulated deficit
(3,108,337)
(3,236,525)
Total Juniper Networks stockholders' equity
6,608,200 
5,822,136 
Noncontrolling interest
600 
2,629 
Total equity
6,608,800 
5,824,765 
Total liabilities and equity
$ 8,467,851 
$ 7,590,263 
Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Per Share data
Dec. 31, 2010
Dec. 31, 2009
Allowance for doubtful accounts receivable, current
$ 10,110 
$ 9,116 
Convertible preferred stock, par value
0.00001 
0.00001 
Convertible preferred stock, shares authorized
10,000 
10,000 
Convertible preferred stock, shares issued
0 
0 
Convertible preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.00001 
$ 0.00001 
Common stock, shares authorized
1,000,000 
1,000,000 
Common stock, shares issued
525,378 
519,341 
Common stock, shares outstanding
525,378 
519,341 
Consolidated Statements of Cash Flows (USD $)
In Thousands
Year Ended
Dec. 31,
2010
2009
2008
Cash flows from operating activities:
 
 
 
Consolidated net income
$ 619,373 
$ 115,228 
$ 511,749 
Adjustments to reconcile consolidated net income to net cash from operating activities:
 
 
 
Depreciation and amortization
155,288 
148,373 
172,453 
Share-based compensation
177,825 
139,659 
108,133 
Deferred income taxes
64,035 
9,436 
14,314 
(Gain) loss on equity investments
(8,653)
5,562 
14,832 
Excess tax benefits from share-based compensation
(48,500)
(3,510)
(40,182)
Other non-cash charges
0 
0 
613 
Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net
(129,199)
(28,682)
(50,211)
Prepaid expenses and other assets
(129,292)
(8,520)
(539)
Accounts payable
48,217 
(2,422)
19,770 
Accrued compensation
78,071 
16,079 
1,761 
Accrued warranty
(2,268)
(1,891)
2,640 
Accrued litigation settlements
(169,330)
169,330 
0 
Income taxes payable
25,193 
43,672 
49,554 
Other accrued liabilities
3,681 
30,457 
(6,702)
Deferred revenue
127,894 
163,326 
76,994 
Net cash provided by operating activities
812,335 
796,097 
875,179 
Cash flows from investing activities:
 
 
 
Purchases of property and equipment, net
(185,291)
(153,101)
(164,604)
Purchases of trading investments
(2,754)
0 
0 
Purchases of available-for-sale investments
(1,577,758)
(1,461,532)
(474,007)
Proceeds from sales of available-for-sale investments
537,916 
285,379 
130,237 
Proceeds from maturities of available-for-sale investments
1,086,514 
398,435 
369,114 
Payment for business acquisitions, net of cash and cash equivalents acquired
(374,765)
0 
0 
Changes in restricted cash
(12,424)
(11,276)
(8,094)
Purchases of privately-held equity investments, net
(4,188)
(6,205)
(2,458)
Net cash used in investing activities
(532,750)
(948,300)
(149,812)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of common stock
451,039 
164,207 
119,450 
Purchases and retirement of common stock
(565,473)
(453,888)
(604,700)
Excess tax benefits from share-based compensation
48,500 
3,510 
40,182 
Redemption of convertible debt
0 
0 
(288)
Change in customer financing arrangements
(3,487)
19,613 
22,963 
(Return of capital to) proceeds from noncontrolling interest
(3,000)
4,400 
0 
Net cash used in financing activities
(72,421)
(262,158)
(422,393)
Net increase (decrease) in cash and cash equivalents
207,164 
(414,361)
302,974 
Cash and cash equivalents at beginning of period
1,604,723 
2,019,084 
1,716,110 
Cash and cash equivalents at end of period
1,811,887 
1,604,723 
2,019,084 
Supplemental disclosures of cash flow information:
 
 
 
Cash paid for interest
8,799 
5,417 
5,224 
Cash paid for taxes
155,700 
139,969 
147,999 
Supplemental disclosure of non-cash financing activities:
 
 
 
Common stock issued in connection with conversion of the senior notes
$ 0 
$ 0 
$ 399,208 
Consolidated Statements of Change in Equity (USD $)
In Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income [Member]
Retained Earnings [Member]
Noncontrolling Interest [Member]
Total
Shares outstanding, beginning of period at Dec. 31, 2007
 
 
 
 
 
522,815 
Balance, beginning of period at Dec. 31, 2007
$ 5 
$ 8,154,932 
$ 12,251 
$ (2,813,328)
$ 0 
$ 5,353,860 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Consolidated net income
0 
0 
0 
511,749 
0 
511,749 
Change in unrealized loss on investments, net tax of nil
0 
0 
2,547 
0 
0 
2,547 
Change in foreign currency translation adjustment, net tax of nil
0 
0 
(19,043)
0 
0 
(19,043)
Issuance of shares in connection with Employee Stock Purchase Plan, value
0 
35,879 
0 
0 
0 
35,879 
Issuance of shares in connection with vesting of restricted share units, shares
 
 
 
 
 
1,904 
Issuance of shares in connection with vesting of restricted share units, value
0 
0 
0 
0 
0 
0 
Exercise of stock options by employees, net of repurchases, shares
 
 
 
 
 
5,701 
Exercise of stock options by employees, net of repurchases, value
0 
82,608 
0 
0 
0 
82,608 
Issuance of shares in connection with conversion of the convertible senior notes, shares
 
 
 
 
 
19,822 
Issuance of shares in connection with conversion of the convertible senior notes, value
0 
399,208 
0 
0 
0 
399,208 
Exercise of warrants in connection with acquisitions, shares
 
 
 
 
 
8 
Repurchase and retirement of common stock, value
0 
(427)
0 
(604,273)
0 
(604,700)
Share-based compensation expense
0 
108,133 
0 
0 
0 
108,133 
Adjustment related to tax benefit from employee stock option plans
0 
31,164 
0 
0 
0 
31,164 
Shares outstanding, end of period at Dec. 31, 2008
 
 
 
 
 
526,752 
Balance, end of period at Dec. 31, 2008
5 
8,811,497 
(4,245)
(2,905,852)
0 
5,901,405 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Consolidated net income
0 
0 
0 
116,999 
(1,771)
115,228 
Change in unrealized loss on investments, net tax of nil
0 
0 
(2,757)
0 
0 
(2,757)
Change in foreign currency translation adjustment, net tax of nil
0 
0 
5,569 
0 
0 
5,569 
Purchase of subsidiary shares by (Return of capital to) noncontrolling intrest
0 
0 
0 
0 
4,400 
4,400 
Issuance of shares in connection with Employee Stock Purchase Plan, value
0 
39,164 
0 
0 
0 
39,164 
Issuance of shares in connection with vesting of restricted share units, shares
 
 
 
 
 
1,432 
Issuance of shares in connection with vesting of restricted share units, value
0 
0 
0 
0 
0 
0 
Exercise of stock options by employees, net of repurchases, shares
 
 
 
 
 
8,651 
Exercise of stock options by employees, net of repurchases, value
0 
126,284 
0 
0 
0 
126,284 
Repurchase and retirement of common stock, value
0 
(6,216)
0 
(447,672)
0 
(453,888)
Share-based compensation expense
0 
139,659 
0 
0 
0 
139,659 
Adjustment related to tax benefit from employee stock option plans
0 
(50,299)
0 
0 
0 
(50,299)
Shares outstanding, end of period at Dec. 31, 2009
 
 
 
 
 
519,341 
Balance, end of period at Dec. 31, 2009
5 
9,060,089 
(1,433)
(3,236,525)
2,629 
5,824,765 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Consolidated net income
0 
0 
0 
618,402 
971 
619,373 
Change in unrealized loss on investments, net tax of nil
0 
0 
(317)
0 
0 
(317)
Change in foreign currency translation adjustment, net tax of nil
0 
0 
499 
0 
0 
499 
Purchase of subsidiary shares by (Return of capital to) noncontrolling intrest
0 
0 
0 
0 
(3,000)
(3,000)
Issuance of shares in connection with Employee Stock Purchase Plan, value
0 
41,829 
0 
0 
0 
41,829 
Issuance of shares in connection with vesting of restricted share units, shares
 
 
 
 
 
2,224 
Issuance of shares in connection with vesting of restricted share units, value
0 
0 
0 
0 
0 
0 
Exercise of stock options by employees, net of repurchases, shares
 
 
 
 
 
21,568 
Exercise of stock options by employees, net of repurchases, value
0 
409,395 
0 
0 
0 
409,395 
Shares assumed in connection with business acquisition, value
0 
2,355 
0 
0 
0 
2,355 
Repurchase and retirement of common stock, value
0 
(75,242)
0 
(488,284)
0 
(563,526)
Repurchases related to net issuances, shares
 
 
 
 
 
(75)
Repurchases related to net issuances, value
0 
(17)
0 
(1,930)
0 
(1,947)
Share-based compensation expense
0 
177,825 
0 
0 
0 
177,825 
Adjustment related to tax benefit from employee stock option plans
0 
101,549 
0 
0 
0 
101,549 
Shares outstanding, end of period at Dec. 31, 2010
 
 
 
 
 
525,378 
Balance, end of period at Dec. 31, 2010
$ 5 
$ 9,717,783 
$ (1,251)
$ (3,108,337)
$ 600 
$ 6,608,800 
Consolidated Changes in Statement of Equity (Parentheticals) (USD $)
Year Ended
Dec. 31,
2010
2009
2008
Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax
$ 0 
$ 0 
$ 0 
Other Comprehensive Income, Foreign Currency Translation Adjustment, Tax
$ 0 
$ 0 
$ 0 
Note 1 - Basis of Presentation Level 1 (Notes)
Basis of Presentation [Text Block]
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 inter-company balances and transactions have been eliminated.
 
The Company holds a 60 percent interest in a joint venture with Nokia Siemens Networks B.V. (“NSN”). Given the Company's majority ownership interest in the joint venture, the accounts of the joint venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor's interests in the net assets and operations of the joint venture.
 
Reclassifications
 
In the first quarter of 2010, the Company reclassified certain selling and marketing costs that were previously reported as cost of service revenues as sales and marketing expense. Accordingly, $25.1 million and $29.1 million of costs reported in the years ended December 31, 2009, and 2008, respectively, have been reclassified from cost of service revenues to sales and marketing expense to conform to the current period's presentation. The reclassification did not impact the Company's previously reported net revenues, segment results, operating income, net income, or earnings per share.
 
Note 2 - Summary of Significant Accounting Policies Level 1 (Notes)
Summary of Significant Accounting Policies [Text Block]
Summary of 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 our estimates and the actual results, our future consolidated results of operation may be affected.
 
Cash and Cash Equivalents
 
All highly liquid investments purchased with an original maturity of three months or less are classified as 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.
 
Investments in Available-for-Sale and Trading Securities
 
Management determines the appropriate classification of securities at the time of purchase and re-evaluates such classification as of each balance sheet date. 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 (loss). Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in the consolidated statements of operations.
 
The Company recognizes an impairment charge for available-for-sale investments when a decline in the fair value of its investments below the cost basis is determined to be other than temporary. 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, which invests in mutual funds are classified as trading securities and reported at fair value in the consolidated balance sheets. The realized and unrealized holding gains and losses, as well as the offsetting compensation expense, are reported in the consolidated statements of operations.
 
Privately-Held Equity Investments
 
The Company has minority equity investments in privately-held companies. These investments are included in other long-term assets in the consolidated balance sheets and are carried at cost, 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 early stage at the time of the investment by the Company and such markets may never be significant. The Company monitors these investments for impairment by considering financial, operational, and economic data and makes appropriate reductions in carrying values when necessary. Realized gains and losses, if any, are reported in the consolidated statements of operations.
 
Fair Value Measurement
 
The Company records its financial instruments and derivative contracts at fair value. The fair value assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The carrying value of the Company's financial instruments including cash and cash equivalents, accounts receivable, accrued compensation, and other accrued liabilities, approximates fair market value due to the relatively short period of time to maturity. The fair value of investments and derivatives is determined using quoted market prices for those securities or similar financial instruments.
 
Concentrations
 
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, available-for-sale investments in fixed income securities, and money market funds with 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 risk.
 
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. The Company maintains reserves for potential bad debt and historically such losses have been within management's expectations. Verizon Communications, Inc., and AT&T, Inc., accounted for 10.6%, and 10.4% of the Company's total net revenues for 2010 and 2009, respectively. As of December 31, 2010 and 2009, we had significant accounts receivable for these customers. No single customer accounted for more than 10% of the Company's total net revenues for 2008.
 
The Company relies on sole suppliers for certain of its components such as ASICs and custom sheet metal. Additionally, the Company relies primarily on a limited number of significant independent contract manufacturers for the production of all of its products. The inability of any supplier or manufacturer to fulfill supply requirements of the Company could negatively impact future operating results.
 
Property and Equipment
 
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the lesser of the estimated useful life or the lease term of the respective assets. The Company depreciates leasehold improvements over the lesser of the expected life of the lease or the assets, up to a maximum of ten years. The estimated useful life for land improvements is generally ten to fifteen years and the estimated useful life for all other depreciable assets is generally one and a half to five years.
 
Goodwill and Purchased Intangible Assets
 
Goodwill represents the excess purchase price over fair value of net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from acquisitions of entities accounted for using the purchase method of accounting are estimated by management based upon fair value of the assets received. Identifiable intangible assets are comprised of purchased trademarks, developed technologies, customer relationships, maintenance contracts, and other intangible assets. Goodwill is not subject to amortization but is subject to annual assessment, at a minimum, for impairment by applying fair-value based tests. Future goodwill impairment tests could result in a charge to earnings. Purchased intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives ranging from two to nineteen years.
 
Impairment
 
The Company evaluates long-lived assets held for use for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset exceeds its fair value. The Company assesses the recoverability of its long-lived and intangible assets by determining whether the unamortized balances are greater than the sum of undiscounted future net cash flows of the related assets. The amount of impairment, if any, is measured based on projected discounted future net cash flows.
 
The Company evaluates goodwill, at a minimum, on an annual basis and whenever events and changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying value, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income approach and the market approach. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired, and a second step is performed to measure the amount of the impairment loss, if any. The Company conducted its annual impairment test as of November 1, 2010, 2009, and 2008, and determined that the carrying value of its remaining goodwill was not impaired. Future impairment indicators, including sustained declines in the Company's market capitalization or a decrease in revenue or profitability levels, could require impairment charges to be recorded.
 
Revenue Recognition
 
In October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2009-13, Topic 605 - Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”). ASU 2009-13 changes the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. Under the new standard, the Company allocates the total arrangement consideration to each separable element of an arrangement based upon the relative selling price of each element. Arrangement consideration allocated to undelivered elements is deferred until delivery. Concurrently with issuing ASU 2009-13, the FASB also issued ASU No. 2009-14, Topic 985 - Certain Revenue Arrangements That Include Software Elements (“ASU 2009-14”). ASU 2009-14 excludes software that is contained on a tangible product from the scope of software revenue guidance if the software component and the non-software component function together to deliver the tangible products' essential functionality. The Company early adopted these standards on a prospective basis as of the beginning of fiscal 2010 for new and materially modified arrangements originating after December 31, 2009.
 
As a result of the adoption of ASU 2009-13 and ASU 2009-14, net revenue for the year ended December 31, 2010, was approximately $237 million higher than the net revenue that would have been recorded under the previous accounting rules. The increase in revenue was due to recognition of revenue for products shipped during the period which included approximately $183 million in the year ended December 31, 2010, related to undelivered product commitments for which we were unable to demonstrate fair value pursuant to the previous accounting standards. The remainder of the increase in revenue for the year was due to products sold into multiple-year service arrangements which was recognized ratably under the previous accounting standards and for the change in our allocation methodology from the residual method to the relative selling price method as prescribed by ASU 2009-13.
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 our credit checks and their payment histories. The Company records accounts receivable net of allowance for doubtful accounts, estimated customer returns, and pricing credits.
 
For fiscal 2010 and future periods, pursuant to the guidance of ASU 2009-13, when a sales arrangement contains multiple elements and software and non-software components function together to deliver the tangible products' essential functionality, the Company allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its 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 similarly situated customers. However, as the Company's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors products' selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The best estimate of selling price 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 guidance for recognizing software revenue, as amended.
 
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, future performance obligation, or subject to customer-specific return or refund privileges. The Company evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item, and the delivery and performance of the undelivered item is considered probable and substantially in the Company's control, the delivered element constitutes a separate unit of accounting. In circumstances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements, and the allocation of the arrangement consideration and revenue recognition is determined for the combined unit as a single unit. Allocation of the consideration is determined at arrangement inception on the basis of each unit's relative selling price. The new standards do not generally change the units of accounting for the Company's revenue transactions.
 
For transactions entered into prior to January 1, 2010, revenue for arrangements with multiple elements, such as sales of products that include services, is allocated to each element using the residual method based on the VSOE of fair value of the undelivered items pursuant to Accounting Standard Codification ("ASC") Topic 985-605, Software - Revenue Recognition. 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 is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual support period.
 
The Company accounts for multiple agreements with a single customer as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement.
 
For sales to direct end-users, value-added resellers, and original equipment manufacturer ("OEM") partners, the Company recognizes product revenue upon transfer of title and risk of loss, which is generally upon shipment. It is the Company's practice to identify an end-user prior to shipment to a value-added reseller. For the Company's end-users and value-added resellers, there are no significant obligations for future performance such as rights of return. The Company's agreements with its OEM partners may allow future rights of returns or pricing credits. A portion of the Company's sales is made through distributors under agreements allowing for pricing credits or rights of return. 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 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.
 
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.
 
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.
 
The Company sells certain interests in accounts receivable on a non-recourse basis as part of customer financing arrangements primarily with one major financing company. Cash received under this arrangement in advance of revenue recognition is recorded as short-term debt.
 
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 allowance and potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay.
 
Warranty Costs
 
The Company generally offers a one-year warranty on all of its hardware products and a 90-day warranty on the media that contains the software embedded in the products. Warranty costs are accrued as part of the Company's cost of sales based on associated material costs, labor costs for customer support, 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. Customer support labor 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 outsources most of its manufacturing, repair, and supply chain management operations to its independent contract manufacturers, and a significant portion of its cost of revenues consists of payments to them. The independent contract manufacturers produce the Company's products using design specifications, quality assurance programs, and standards established by the Company, and they procure components and manufacture the products based on the Company's demand forecasts. These forecasts are the Company's estimates of future demand for its products, based upon historical trends and analysis from the Company's sales and marketing organizations, adjusted for overall market conditions. The Company establishes a provision for inventory, carrying costs, and obsolete material exposures for excess components purchased based on historical trends.
 
Research and Development
 
Costs to research, design, and develop the Company's products are expensed as incurred. Software development costs are capitalized beginning when a product's technological feasibility has been established and ending 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, and all software development costs have been expensed as incurred.
 
Advertising
 
Advertising costs are charged to sales and marketing expense as incurred. Advertising expense was $17.1 million, $11.4 million, and $5.0 million, for 2010, 2009, and 2008, respectively.
 
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 records a charge equal to the minimum estimated liability or a loss contingency only when both of the following conditions are met: (i) information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements, and (ii) the range 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 recognizes share-based compensation expense for all share-based payment awards including employee stock options, restricted stock units (“RSUs”), performance share awards ("PSAs"), and purchases under the Company's Employee Stock Purchase Plan ("ESPP") in accordance with ASC Topic 718 - Compensation - Stock Compensation ("ASC Topic 718"). Share-based compensation expense for expected-to-vest share-based awards is valued under the single-option approach and amortized on a straight-line basis, net of estimated forfeitures. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company's consolidated statements of operations for the years ended December 31, 2010, 2009, and 2008.
 
The Company utilizes the Black-Scholes-Merton (“BSM”) option-pricing model in order to determine the fair value of stock options. The BSM model requires various highly subjective assumptions that represents management's best estimates of volatility, expected option life, and risk-free interest rate. The expected volatility is based on the implied volatility of market traded options on our common stock, adjusted for other relevant factors including historical volatility of our common stock over the most recent period commensurate with the estimated expected life of our stock options. The expected life of an award is based on historical experience, the terms and conditions of the stock awards granted to employees, as well as the potential effect from options that have not been exercised at the time.
 
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 contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in non-functional currencies. These derivatives are carried at fair value with changes recorded in interest and other income, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. These foreign exchange forward contracts have maturities of approximately two months.
 
The Company also 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 and have maturities of less than one year. The effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, is subsequently reclassified into the operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments, which was immaterial during 2010, 2009, and 2008, in interest and other income, net, on its consolidated statements of operations. Cash flows from such hedges are classified as operating activities.
 
Provision for Income Taxes
 
Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company regularly assesses the likelihood that its deferred tax assets will be realized from recoverable income taxes or recovered from future taxable income based on the realization criteria set forth in ASC Topic - Income Taxes (“ASC Topic 740”). To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce its deferred tax assets. The Company believes it is more likely than not that future income from the reversal of the deferred tax liabilities and forecasted income will be sufficient to fully recover the remaining deferred tax assets. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes potential liabilities based on its estimate of whether, and the extent to which, additional taxes will be due.
 
Comprehensive Income (loss)
 
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company includes the components of comprehensive income (loss) as part of its consolidated statements of changes in equity. Accumulated other comprehensive income (loss) includes net unrealized gains (losses) on available-for-sale securities and net foreign currency translation gains (losses), and unrealized gains (losses) on derivatives designated as cash flow hedges that are excluded from net income.
 
Foreign Currency Translation
 
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 weighted-average exchange rates for the period. Foreign currency translation gains and losses were not material for the years ended December 31, 2010, 2009, and 2008. The effect of exchange rate changes on cash balances held in foreign currencies was immaterial in the years presented.
 
Recent Accounting Standards
 
In December 2010, the FASB issued ASU No. 2010-29, Topic 805 - Business Combinations: Disclosure of Supplementary Pro Forma Information for Business Combinations (“ASU 2010-29”), which provides further comparative disclosure guidance and expands the pro forma disclosure requirements under ASC Topic 805. This guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. ASU 2010-29 relates to disclosure requirements only and as such does not impact the Company's consolidated results of operations or financial condition.
 
In December 2010, the FASB issued ASU No. 2010-28, Topic 350 - Intangibles - Goodwill and Other: When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (“ASU 2010-28”), which modifies Step 1 of the goodwill impairment test for reporting units with zero or negative amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exist. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company's adoption of ASU 2010-28 is not expected to have an impact on its consolidated results of operations or financial condition.
 
In January 2010, the FASB issued ASU No. 2010-06, Topic 820 - Improving Disclosures about Fair Value Measurements (“ASU 2010-06”), which provides additional fair value measurement disclosures and clarifies certain existing disclosure requirements. Except for the requirement to disclose purchases, sales, issuances, and settlements of Level 3 measurements on a gross basis, the disclosure and clarification requirements are effective for interim and annual reporting periods beginning after December 15, 2009. The requirement to separately disclose purchases, sales, issuances, and settlements of recurring Level 3 measurements on a gross basis was effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. ASU 2010-06 relates to disclosure requirements only and it did not have an impact on the Company's consolidated results of operations or financial condition.
 
Note 3 - Business Combination Level 1 (Notes)
Business Combination Disclosure [Text Block]
Business Combinations
 
In the year ended December 31, 2010, the Company completed the acquisitions of Ankeena Networks, Inc., (“Ankeena”), SMobile Systems, Inc. (“SMobile”), Altor Networks, Inc. ("Altor"), and Trapeze Networks ("Trapeze").
 
Ankeena Acquisition
 
On April 19, 2010, the Company acquired 100% of the equity securities of Ankeena, a privately-held provider of new media infrastructure technology. The acquisition of Ankeena will provide the Company with strong video delivery capabilities, as Ankeena's products optimize web-based video delivery, provide key components of a content delivery network architecture/solution, improve consumers' online video experience, and reduce service provider and carrier service provider infrastructure costs for providing web-based video.
 
In connection with the acquisition of Ankeena, the Company acquired net assets of $3.6 million, including cash and cash equivalents of $2.3 million, and recognized goodwill of $53.1 million, which was assigned to the Company's Infrastructure segment.
 
Prior to the acquisition, the Company had a $2.0 million, or a 7.7% ownership interest in Ankeena, and accounted for it as a privately-held equity investment. As of the acquisition-date, the fair value of the equity interest in Ankeena was $5.2 million based on a noncontrolling interest fair value and was included in the purchase price. The Company recognized a $3.2 million gain, which was reported within gain (loss) on equity investments in its consolidated statement of operations.
 
SMobile Acquisition
 
On July 30, 2010, the Company acquired 100% of the equity securities of SMobile, a privately-held software company focused solely on smartphone and tablet security solutions for the enterprise, service provider, and consumer markets. The acquisition of SMobile will allow the Company to extend its security focus through integration of SMobile's product portfolio with Junos® Pulse.
 
In connection with the acquisition of SMobile, the Company assumed net liabilities of $5.2 million, including cash and cash equivalents of $0.4 million, and recognized goodwill of $48.1 million, which was assigned to the Company's Service Layer Technology ("SLT") segment.
 
Altor Acquisition
 
On December 6, 2010, the Company acquired 100% of the equity securities of Altor, a privately-held provider of virtualization security. The acquisition of Altor will provide the Company with data center and cloud security solutions, including products that optimize web-based video delivery, provide key components of a content delivery network architecture/solution, improve consumers' online video experience, and reduce service provider and carrier service provider infrastructure costs for providing web-based video.
 
In connection with the acquisition of Altor, the Company acquired net assets of $4.5 million, including cash and cash equivalents of $6.4 million, and recognized goodwill of $78.2 million, which was assigned to the Company's SLT segment.
 
Prior to the acquisition, the Company had a $2.0 million, or a 5.0% ownership interest in Altor, accounted for as a privately-held equity investment. As of the acquisition-date, the fair value of the equity interest in Altor was $4.1 million based on a noncontrolling interest fair value and was included in the purchase price. The Company recognized a $2.1 million gain, which was reported within gain (loss) on equity investments in its consolidated statement of operations.
 
Trapeze Acquisition
 
On December 16, 2010, the Company acquired 100% of the equity securities of Trapeze, a subsidiary of Belden Inc. and a provider of enterprise wireless local area network ("WLAN") solutions. The acquisition will make WLAN infrastructure a key part of Juniper's portfolio and accelerate our growth in the enterprise market.
 
In connection with the acquisition of Trapeze, the Company acquired net assets of $5.9 million, including cash and cash equivalents of $0.8 million, and recognized goodwill of $89.8 million, which was assigned to the Company's Infrastructure segment.
 
The Company's consolidated financial statements include the operating results of all acquired businesses from the date of each acquisition. Pro forma results of operations for these acquisitions have not been presented because the financial impact to the Company's consolidated results of operations, both individually and in aggregate, is not material. The Company continues to evaluate certain balances related to business combinations completed during the 2010. Additional information 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.
 
Total purchase consideration for these acquisitions is summarized as follows (in millions):
 
Ankeena
 
SMobile
 
Altor
 
Trapeze
 
Total
Net cash
$
66.5
 
 
$
69.5
 
 
$
104.0
 
 
$
152.1
 
 
$
392.1
 
Assumed stock option and RSU awards allocated to purchase price (1)
2.4
 
 
—
 
 
—
 
 
—
 
 
2.4
 
Total
$
68.9
 
 
$
69.5
 
 
$
104.0
 
 
$
152.1
 
 
$
394.5
 
 
________________________________
 
(1)    
The fair value of the stock option and RSU awards assumed was based on the acquired company's determined value on the acquisition date.
 
Allocation of the purchase consideration for acquisitions completed during the year ended December 31, 2010, is summarized as follows (in millions):
 
 
 
Ankeena
 
SMobile
 
Altor
 
Trapeze
 
Total
Net assets acquired (liabilities assumed)
 
$
3.6
 
 
$
(5.2
)
 
$
4.5
 
 
$
5.9
 
 
$
8.8
 
Intangible assets acquired
 
12.2
 
 
26.6
 
 
21.3
 
 
56.4
 
 
116.5
 
Goodwill
 
53.1
 
 
48.1
 
 
78.2
 
 
89.8
 
 
269.2
 
    Total
 
$
68.9
 
 
$
69.5
 
 
$
104.0
 
 
$
152.1
 
 
$
394.5
 
 
The goodwill recognized is attributable primarily to expected synergies, the acquired assembled workforce, and the economies of scale expected from combining the operations of 2010 acquisitions and the Company. Certain amounts of the acquired goodwill is expected to be deductible for income tax purposes; however we are unable to estimate the total amount at this time.
 
The Company recognized $6.3 million of acquisition-related costs in 2010. These costs were expensed in the period incurred and reported in the Company's consolidated statement of operations as acquisition-related and other charges. There were no acquisitions or acquisition related charges incurred by the Company in 2009 and 2008.
 
The following table presents details of the intangible assets acquired through the business combinations completed during the year ended December 31, 2010 (in millions, except years):
 
 
Ankeena
 
SMobile
 
Altor
 
Trapeze
 
 
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Total Amount
Existing technology
4.0
 
 
$
5.2
 
 
5.0
 
 
$
24.3
 
 
6.0
 
 
$
8.8
 
 
5.0
 
 
$
45.0
 
 
$
83.3
 
In-process research and development
4.0
 
 
3.8
 
 
—
 
 
—
 
 
—
 
 
7.9
 
 
—
 
 
—
 
 
11.7
 
Core technology
4.0
 
 
3.2
 
 
—
 
 
—
 
 
6.0
 
 
4.6
 
 
—
 
 
—
 
 
7.8
 
Customer contracts and related relationships
—
 
 
—
 
 
6.0
 
 
2.1
 
 
—
 
 
—
 
 
7.0
 
 
8.6
 
 
10.7
 
Support agreements and related relationships
—
 
 
—
 
 
6.0
 
 
0.1
 
 
—
 
 
—
 
 
7.0
 
 
2.6
 
 
2.7
 
Non-compete agreements
—
 
 
—
 
 
2.0
 
 
0.1
 
 
—
 
 
—
 
 
—
 
 
—
 
 
0.1
 
OEM customer contracts
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
2.0
 
 
0.2
 
 
0.2
 
Total
 
 
$
12.2
 
 
 
 
$
26.6
 
 
 
 
$
21.3
 
 
 
 
$
56.4
 
 
$
116.5
 
 
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 finite-lived assets. As of December 31, 2010, IPR&D related to the Ankeena acquisition has completed development and is considered amortizable finite-lived assets. Total IPR&D assets related to the Altor acquisition were $7.9 million and estimated future cost to complete these IPR&D projects is $1.8 million.
 
Note 4 - Net Income per Share Level 1 (Notes)
Earnings Per Share [Text Block]
Net Income Per Share
 
Basic net income per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for that period. Diluted net income per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of shares issuable upon exercise of stock options, vesting of RSUs, and vesting of PSAs.
 
The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks (in millions, except per share amounts):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Numerator:
 
 
 
 
 
 
 
 
Net income attributable to Juniper Networks:
$
618.4
 
 
$
117.0
 
 
$
511.7
 
Denominator:
 
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
522.4
 
 
523.6
 
 
530.3
 
Effect of dilutive securities:
 
 
 
 
 
 
 
 
Shares issuable upon conversion of the Senior Notes
—
 
 
—
 
 
8.8
 
Employee stock awards
16.4
 
 
10.4
 
 
12.3
 
Weighted-average shares used to compute diluted net income per share
538.8
 
 
534.0
 
 
551.4
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
 
Basic
$
1.18
 
 
$
0.22
 
 
$
0.96
 
Diluted
$
1.15
 
 
$
0.22
 
 
$
0.93
 
 
 
The Company excludes outstanding stock options with exercise prices that are greater than the average market price from the calculation of diluted net income per share because their effect would be anti-dilutive. 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. Employee stock option awards and PSAs covering approximately 14.0 million and 38.9 million shares of the Company's common stock were outstanding but were not included in the computation of diluted earnings per share for the years ended December 31, 2010, and 2009, respectively, because their effect would have been anti-dilutive.
 
Note 5 - Cash, Cash Equivalents and Investments Level 1 (Notes)
Cash, Cash Equivalents, and Investments [Text Block]
Cash, Cash Equivalents, and Investments
 
Cash and Cash Equivalents
 
The following table summarizes the Company's cash and cash equivalents (in millions):
 
 
As of December 31,
 
2010
 
2009
Cash:
 
 
 
 
 
Demand deposits
$
413.0
 
 
$
427.2
 
Time deposits
273.3
 
 
127.9
 
Total cash
686.3
 
 
555.1
 
Cash equivalents:
 
 
 
 
 
U.S. government securities
76.7
 
 
—
 
Government-sponsored enterprise obligations
5.0
 
 
—
 
Commercial paper
4.0
 
 
17.0
 
Money market funds
1,039.9
 
 
1,032.6
 
Total cash equivalents
1,125.6
 
 
1,049.6
 
Total cash and cash equivalents
$
1,811.9
 
 
$
1,604.7
 
 
 
Investments in Available-for-Sale and Trading Securities
 
The following table summarizes the Company's unrealized gains and losses, and fair value of investments designated as available-for-sale and trading securities, as of December 31, 2010, and 2009 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2010: 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
$
158.2
 
 
$
0.2
 
 
$
—
 
 
$
158.4
 
Government-sponsored enterprise obligations
213.8
 
 
0.4
 
 
(0.2
)
 
214.0
 
Foreign government debt securities
46.8
 
 
0.2
 
 
—
 
 
47.0
 
Certificate of deposit
20.9
 
 
0.1
 
 
—
 
 
21.0
 
Commercial paper
9.5
 
 
—
 
 
—
 
 
9.5
 
Asset-backed securities
90.1
 
 
—
 
 
(0.1
)
 
90.0
 
Corporate debt securities
459.7
 
 
2.2
 
 
(0.2
)
 
461.7
 
Total fixed income securities
999.0
 
 
3.1
 
 
(0.5
)
 
1,001.6
 
Total available-for-sale securities
999.0
 
 
3.1
 
 
(0.5
)
 
1,001.6
 
Trading securities
8.1
 
 
—
 
 
—
 
 
8.1
 
Total
$
1,007.1
 
 
$
3.1
 
 
$
(0.5
)
 
$
1,009.7
 
Reported as:
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
$
473.6
 
 
$
0.9
 
 
$
—
 
 
$
474.5
 
Long-term investments
533.5
 
 
2.2
 
 
(0.5
)
 
535.2
 
Total
$
1,007.1
 
 
$
3.1
 
 
$
(0.5
)
 
$
1,009.7
 
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2009: 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
U.S. government securities
$
245.0
 
 
$
0.1
 
 
$
—
 
 
$
245.1
 
Government-sponsored enterprise obligations
212.0
 
 
0.6
 
 
(0.3
)
 
212.3
 
Foreign government debt securities
96.4
 
 
0.3
 
 
(0.1
)
 
96.6
 
Corporate debt securities
488.2
 
 
2.0
 
 
(0.3
)
 
489.9
 
Total fixed income securities
1,041.6
 
 
3.0
 
 
(0.7
)
 
1,043.9
 
Publicly-traded equity securities
5.4
 
 
—
 
 
—
 
 
5.4
 
Total available-for-sale securities
1,047.0
 
 
3.0
 
 
(0.7
)
 
1,049.3
 
Trading securities
4.7
 
 
—
 
 
—
 
 
4.7
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
Reported as:
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
$
569.5
 
 
$
1.0
 
 
$
—
 
 
$
570.5
 
Long-term investments
482.2
 
 
2.0
 
 
(0.7
)
 
483.5
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
 
 
The following table presents the maturities of the Company's available-for-sale and trading securities, as of December 31, 2010, and 2009 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2010: 
 
 
 
 
 
 
 
 
 
 
 
Due within one year
$
465.5
 
 
$
0.9
 
 
$
—
 
 
$
466.4
 
Due between one and five years
533.5
 
 
2.2
 
 
(0.5
)
 
535.2
 
No contractual maturity
8.1
 
 
—
 
 
—
 
 
8.1
 
Total
$
1,007.1
 
 
$
3.1
 
 
$
(0.5
)
 
$
1,009.7
 
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2009: 
 
 
 
 
 
 
 
 
 
 
 
Due within one year
$
559.4
 
 
$
1.0
 
 
$
—
 
 
$
560.4
 
Due between one and five years
482.2
 
 
2.0
 
 
(0.7
)
 
483.5
 
No contractual maturity
10.1
 
 
—
 
 
—
 
 
10.1
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
 
The following tables presents the Company's available-for-sale investments that are in an unrealized loss position as of December 31, 2010 and 2009 (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, 2010
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities (1)
$
104.3
 
 
$
(0.2
)
 
$
28.8
 
 
$
—
 
 
$
133.1
 
 
$
(0.2
)
Government-sponsored enterprise obligations
57.8
 
 
(0.2
)
 
—
 
 
—
 
 
57.8
 
 
(0.2
)
Foreign government debt securities (1)
—
 
 
—
 
 
6.2
 
 
—
 
 
6.2
 
 
—
 
Commercial paper
5.0
 
 
—
 
 
—
 
 
—
 
 
5.0
 
 
—
 
Asset-backed securities
54.7
 
 
(0.1
)
 
—
 
 
—
 
 
54.7
 
 
(0.1
)
Total
$
221.8
 
 
$
(0.5
)
 
$
35.0
 
 
$
—
 
 
$
256.8
 
 
$
(0.5
)
 ________________________________
(1)    
Balance includes investments that were in an immaterial unrealized loss position 12 months or greater as of December 31, 2010.
 
 
Less than 12 Months 
 
 
Total 
 
Fair Value 
 
Unrealized Loss 
 
 
Fair Value 
 
Unrealized Loss 
As of December 31, 2009
 
 
 
 
 
 
 
 
Corporate debt securities
$
157.7
 
 
$
(0.3
)
 
 
$
157.7
 
 
$
(0.3
)
Government-sponsored enterprise obligations
38.9
 
 
(0.3
)
 
 
38.9
 
 
(0.3
)
Other investments (1)
126.2
 
 
(0.1
)
 
 
126.2
 
 
(0.1
)
Total
$
322.8
 
 
$
0.7
 
 
 
$
322.8
 
 
$
0.7
 
________________________________
(1)    
Other investments consist of U.S. and foreign government securities.
 
The Company had no investments in publicly-traded equity securities as of December 31, 2010. The Company had no impairment charges to its publicly-traded equity investments in 2009 and in 2008, the Company realized an impairment charge of $3.5 million on a publicly-traded equity security due to a sustained decline in the fair value of the investment below its cost basis that the Company judged to be other than temporary. There were no material realized gains or losses from the sale of available-for-sale securities in 2010, 2009, and 2008. The Company generated cash proceeds of $1,624.4 million, $683.8 million, and $499.4 million from maturities and sales of our available-for-sale investments during 2010, 2009, and 2008, respectively.
 
The Company had 73 and 52 investments that were in an unrealized loss position as of December 31, 2010, and 2009, respectively. The gross unrealized losses related to these investments were due to changes in interest rates. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. For fixed income securities that have unrealized losses, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) 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. The Company did not consider these investments to be other than temporarily impaired as of December 31, 2010, and December 31, 2009, respectively. The Company 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.
 
Privately-Held Equity Investments
 
The Company's minority equity investments in privately-held companies are carried at cost, as the Company does not have a controlling interest or the ability to exercise significant influence over these companies. The Company adjusts its privately-held equity investments for any impairment if the fair value exceeds the carrying value of the respective assets.
 
As of December 31, 2010, and 2009, the carrying values of the Company's privately-held equity investments of $22.1 million and $13.9 million, respectively, were included in other long-term assets in the consolidated balance sheets. In 2010, 2009, and 2008, the Company invested a total of $13.3 million, $7.2 million, and $4.6 million, respectively, in privately-held equity investments. In 2010, as a result of the acquisitions of Ankeena and Altor, the Company recognized a gain of $3.2 million and $2.1 million, respectively, from its minority equity investments in those companies. In 2009, the Company had a minority equity investment in a privately-held company that was acquired by a publicly-traded company for which the Company received a cash payment of $1.0 million and common stock of the acquiring company of $1.0 million, which is classified as an available-for-sale investment. Additionally, the Company had a minority equity investment in a privately-held company that was acquired by a third party for which the Company received a payment of $2.1 million in 2008 and $0.3 million in 2009.
 
The Company measures the fair value of privately-held equity investments using an analysis of the financial condition and near-term prospects of the investees, including recent financing activities and their capital structure. In 2010, the Company determined there were no impairments to its privately-held equity investments. During the years ended December 31, 2009, and 2008, the Company recognized an impairment loss of $5.5 million and $11.3 million, respectively, on its minority equity investments in privately-held companies determined to be other than temporary.
 
Restricted Cash
 
Restricted cash consists of: (i) amounts held in escrow accounts, as required by certain acquisitions completed in 2005 and 2010; (ii) the India Gratuity Trust and Israel Retirement Trust, which cover statutory severance obligations in the event of termination of the Company's India and Israel employees, respectively; and (iii) the Directors and Officers ("D&O") indemnification trust.
 
In 2010, the Company increased its restricted cash by $261.9 million, primarily for the escrow accounts required by the acquisitions completed in 2010, and to a lesser extent for the Israel Retirement Trust established in the first quarter of 2010. The increases in restricted cash were partially offset by distributions of approximately $196.5 million, mainly related to the 2010 acquisitions.
 
In connection with the Ankeena acquisition, the Company agreed to pay $10.7 million from escrow, which represents the cash value of unvested restricted shares in Ankeena as of April 8, 2010, to certain former Ankeena employees. As of December 31, 2010, the Company expects to release $6.1 million from escrow as these restricted shares vest over the next two years.
 
In 2009, the Company distributed $1.0 million of its restricted cash in connection with the escrow fund associated with the acquisition of Funk Software. The Company also increased its restricted cash by an aggregate of $11.3 million in 2009 to fund both its India Gratuity and D&O Trusts due to overall growth of the Company.
 
The following table summarizes the Company's restricted cash as reported in the consolidated balance sheets (in millions):
 
 
As of December 31,
 
2010
 
2009
Restricted cash:
 
 
 
 
 
Demand deposits
$
1.7
 
 
$
3.8
 
Total restricted cash
1.7
 
 
3.8
 
Restricted investments:
 
 
 
U.S. government securities
0.6
 
 
19.8
 
Corporate debt securities
2.7
 
 
—
 
Money market funds
114.3
 
 
30.1
 
Total restricted investments
117.6
 
 
49.9
 
Total restricted cash and investments
$
119.3
 
 
$
53.7
 
 
As of December 31, 2010, and 2009, the unrealized gain and losses related to restricted investments were immaterial.
 
Note 6 - Fair Value Measurements Level 1 (Notes)
Fair Value Disclosures [Text Block]
Fair Value Measurements
 
Fair Value Hierarchy
 
The Company determines the fair values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
 
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
 
Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the 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.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
The following tables provide a summary of assets measured at fair value on a recurring basis and their presentation on the Company’s consolidated balance sheets (in millions):
 
 
Fair Value Measurements at December 31, 2010 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
Available-for-sale debt securities:
 
 
 
 
 
 
 
U.S. government securities (1)
$
54.9
 
 
$
180.8
 
 
$
—
 
 
$
235.7
 
Government-sponsored enterprise obligations
208.9
 
 
10.1
 
 
—
 
 
219.0
 
Foreign government debt securities
21.0
 
 
26.0
 
 
—
 
 
47.0
 
Commercial paper
—
 
 
13.5
 
 
—
 
 
13.5
 
Corporate debt securities (2)
2.7
 
 
461.7
 
 
—
 
 
464.4
 
Certificate of deposit
—
 
 
21.0
 
 
—
 
 
21.0
 
Asset-backed securities
—
 
 
90.0
 
 
—
 
 
90.0
 
Money market funds (3)
1,154.2
 
 
—
 
 
—
 
 
1,154.2
 
Total available-for-sale debt securities
1,441.7
 
 
803.1
 
 
—
 
 
2,244.8
 
Total available-for-sale securities
1,441.7
 
 
803.1
 
 
—
 
 
2,244.8
 
Trading securities:
 
 
 
 
 
 
 
Mutual funds
8.1
 
 
—
 
 
—
 
 
8.1
 
Total trading securities
$
8.1
 
 
$
—
 
 
$
—
 
 
$
8.1
 
Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—
 
 
0.4
 
 
—
 
 
0.4
 
Total derivative assets
—
 
 
0.4
 
 
—
 
 
0.4
 
Total assets measured at fair value
$
1,449.8
 
 
$
803.5
 
 
$
—
 
 
$
2,253.3
 
________________________________
 
(1)    
Balance includes $0.6 million of restricted investments measured at fair market value, related to an acquisition completed in 2005. For additional information regarding the Company's restricted investments, see Note 5, Cash, Cash Equivalents, and Investments, under the heading “Restricted Cash.” Restricted investments are included in the restricted cash balance in the consolidated balance sheet.
(2)    
Balance includes $2.7 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust.
(3)    
Balance includes $114.3 million of restricted investments measured at fair market value, related to the Company's D&O trust.
 
 
Fair Value Measurements at December 31, 2010 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
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
1,039.9
 
 
$
85.7
 
 
$
—
 
 
$
1,125.6
 
Short-term investments
150.7
 
 
323.8
 
 
—
 
 
474.5
 
Long-term investments
142.2
 
 
393.0
 
 
—
 
 
535.2
 
Restricted cash
117.0
 
 
0.6
 
 
—
 
 
117.6
 
  Prepaid expenses and other current assets
—
 
 
0.4
 
 
—
 
 
0.4
 
Total assets measured at fair value
$
1,449.8
 
 
$
803.5
 
 
$
—
 
 
$
2,253.3
 
 
 
Fair Value Measurements at December 31, 2009 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
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
1,032.6
 
 
$
17.0
 
 
$
—
 
 
$
1,049.6
 
Short-term investments
101.3
 
 
469.2
 
 
—
 
 
570.5
 
Long-term investments
181.2
 
 
302.3
 
 
—
 
 
483.5
 
Restricted cash
49.9
 
 
—
 
 
—
 
 
49.9
 
  Prepaid expenses and other current assets
—
 
 
0.2
 
 
—
 
 
0.2
 
Total assets measured at fair value
$
1,365.0
 
 
$
788.7
 
 
$
—
 
 
$
2,153.7
 
 
As of December 31, 2010, and 2009, the Company had $2.6 million and $1.5 million, respectively, of derivative liabilities measured at fair value on a recurring basis. The Company recorded the derivative liabilities, which related to its foreign exchange contracts, within other accrued liabilities in its consolidated balance sheets. These liabilities were measured using significant other observable remaining inputs (Level 2) pursuant to the fair value hierarchy.
 
The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the years ended December 31, 2010, and 2009, the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value.
 
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
 
The Company's assets are measured at fair value on a nonrecurring basis at least annually or on a quarterly basis if impairment is indicated. As of December 31, 2010, and December 31, 2009, the carrying value of privately-held equity investments measured at fair value on a nonrecurring basis was $0.8 million and $0.5 million, respectively. These privately-held equity investments, which are normally carried at cost, were measured at fair value due to events and circumstances that the Company identified as significantly impacting the fair value of the investments. The Company measured 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 their capital structure. As a result, the Company recognized an impairment loss of $5.5 million in the year ended December 31, 2009, and classified the investments as Level 3 assets due to the absence of quoted market prices and inherent lack of liquidity. The Company had no impairment charges against its privately-held equity investments in the year ended December 31, 2010. 
 
The Company had no liabilities that were measured at fair value on a nonrecurring basis during the years ended December 31, 2010, and 2009.
Note 7 - Goodwill and Purchased Intangible Assets Level 1 (Notes)
Goodwill and Intangible Assets Disclosure [Text Block]
Goodwill and Purchased Intangible Assets
 
Goodwill
 
The changes in the carrying amount of goodwill during the two years ended December 31, 2010, are as follows (in millions):
 
 
Infrastructure
 
SLT
 
Total
Balance as of January 1, 2009
 
 
 
 
 
Goodwill
$
1,500.5
 
 
$
3,438.1
 
 
$
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at January 1, 2009
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Balance as of December 31, 2009
 
 
 
 
 
Goodwill
1,500.5
 
 
3,438.1
 
 
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at December 31, 2009
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Balance as of January 1, 2010
 
 
 
 
 
Goodwill
1,500.5
 
 
3,438.1
 
 
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at January 1, 2010
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Adjustment to goodwill
—
 
 
0.2
 
 
0.2
 
Goodwill acquired during the twelve months ended December 31, 2010
142.9
 
 
126.1
 
 
269.0
 
Balance as of December 31, 2010
 
 
 
 
 
Goodwill
1,643.4
 
 
3,564.4
 
 
5,207.8
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at December 31, 2010
$
1,643.4
 
 
$
2,284.4
 
 
$
3,927.8
 
 
 
During the year ended December 31, 2010, the Company recorded goodwill of $53.1 million, $48.1 million, $78.2 million, and $89.8 million as a result of its acquisitions of Ankeena, SMobile, Altor, and Trapeze, respectively. For further discussion, see Note 3, Business Combinations. The Company performed goodwill impairment reviews as of November 1, 2010, and 2009, and concluded that there was no impairment to goodwill during the years ended December 31, 2010 and 2009.
 
Purchased Intangible Assets
 
The following table presents the Company's purchased intangible assets (in millions):
 
 
Gross 
 
Accumulated Amortization 
 
Additions
 
Net 
As of December 31, 2010: 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets with definite lives:
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(381.4
)
 
$
91.1
 
 
$
89.7
 
Other
68.9
 
 
(62.2
)
 
17.5
 
 
24.2
 
Total intangible assets with definite lives
448.9
 
 
(443.6
)
 
108.6
 
 
113.9
 
IPR&D with indefinite lives
—
 
 
—
 
 
7.9
 
 
7.9
 
Total
$
448.9
 
 
$
(443.6
)
 
$
116.5
 
 
$
121.8
 
 
 
 
 
 
 
 
 
As of December 31, 2009: 
 
 
 
 
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(376.0
)
 
$
—
 
 
$
4.0
 
Other
68.9
 
 
(59.1
)
 
—
 
 
9.8
 
Total
$
448.9
 
 
$
(435.1
)
 
$
—
 
 
$
13.8
 
 
 
During the year ended December 31, 2010, the Company recorded $12.2 million, $26.6 million, $21.3 million, and $56.4 million of purchased intangible assets as a result of its acquisitions of Ankeena, SMobile, Altor and Trapeze. For further discussion, see Note 3, Business Combinations.
 
Amortization of purchased intangible assets included in operating expenses and cost of product revenues totaled $8.6 million and $15.4 million in 2010 and 2009, respectively. The Company determined that there was no impairment of its intangible assets as of December 31, 2010 and 2009.
 
The estimated future amortization expense of purchased intangible assets with definite lives for future periods is as follows (in millions):
 
Years Ending December 31, 
Amount 
2011
$
23.3
 
2012
22.5
 
2013
22.3
 
2014
20.4
 
2015
16.6
 
Thereafter
8.8
 
Total
$
113.9
 
 
 
Note 8 - Other Financial Information Level 1 (Notes)
Other Financial Information [Text Block]
Other Financial Information
 
Property and Equipment
 
Property and equipment consist of the following (in millions):
 
 
As of December 31,
 
2010
 
2009
Computers and equipment
$
530.1
 
 
$
435.6
 
Software
117.8
 
 
105.0
 
Leasehold improvements
178.1
 
 
158.8
 
Furniture and fixtures
24.9
 
 
21.6
 
Land and land improvements
214.5
 
 
201.6
 
Property and equipment, gross
1,065.4
 
 
922.6
 
Accumulated depreciation
(571.5
)
 
(466.9
)
Property and equipment, net
$
493.9
 
 
$
455.7
 
 
Depreciation expense was $146.8 million, $133.0 million, and $123.5 million in 2010, 2009, and 2008, respectively.
 
Deferred Revenue
 
Amounts billed in excess of revenue recognized are included as deferred revenue in the accompanying consolidated balance sheets. Product deferred revenue, net of the related deferred cost of revenue, includes shipments to end-users, value-added resellers, and distributors. The following table provides a breakdown of the Company's deferred revenue (in millions):
 
 
As of December 31,
 
2010
 
2009
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
294.1
 
 
$
254.7
 
Distributor inventory and other sell-through items
143.4
 
 
136.6
 
Deferred gross product revenue
437.5
 
 
391.3
 
Deferred cost of product revenue
(148.8
)
 
(150.0
)
Deferred product revenue, net
288.7
 
 
241.3
 
Deferred service revenue
595.7
 
 
512.3
 
Total
$
884.4
 
 
$
753.6
 
Reported as:
 
 
 
Current
$
660.2
 
 
$
571.7
 
Long-term
224.2
 
 
181.9
 
Total
$
884.4
 
 
$
753.6
 
 
 
Warranties
 
The Company provides for the estimated cost of product warranties at the time revenue is recognized. This provision is reported as accrued warranty within current liabilities on its consolidated balance sheets. Changes in the Company's accrued warranty are as follows (in millions):
 
 
As of December 31,
 
2010
 
2009
Beginning balance
$
38.2
 
 
$
40.1
 
Provisions made during the period, net
49.9
 
 
46.9
 
Change in estimate
(3.0
)
 
(5.6
)
Actual costs incurred during the period
(49.2
)
 
(43.2
)
Ending balance
$
35.9
 
 
$
38.2
 
 
 
Restructuring Liabilities
 
During 2009, the Company implemented a restructuring plan (the “2009 Restructuring Plan”) in an effort to better align its business operations with the current market and macroeconomic conditions. The restructuring plan included restructuring of certain business functions that resulted in reductions of workforce and facilities. The Company recorded $10.8 million and $19.5 million in restructuring charges during the years ended December 31, 2010, and 2009, respectively, associated with the 2009 Restructuring Plan. The Company incurred no restructuring charges in the year ended December 31, 2008.
 
Restructuring charges were based on the Company's restructuring plans that were committed to by management. Any changes in the estimates of executing the approved plans will be reflected in the Company's results of operations. The following tables illustrate changes in the restructuring liabilities during 2010 and 2009, respectively (in millions):
 
 
Liability as of December 31, 2009
 
Charges 
 
Cash Payments 
 
Adjustment 
 
Liability as of December 31, 2010
Facilities
$
4.9
 
 
$
6.9
 
 
$
(2.5
)
 
$
(1.6
)
 
$
7.7
 
Severance, contractual commitments, and other charges
4.5
 
 
3.9
 
 
(5.5
)
 
(2.7
)
 
0.2
 
Total restructuring charges
$
9.4
 
 
$
10.8
 
 
$
(8.0
)
 
$
(4.3
)
 
$
7.9
 
 
 
Liability as of December 31, 2008
 
Charges 
 
Cash Payments 
 
Adjustment 
 
Liability as of December 31, 2009
Facilities
$
—
 
 
$
7.2
 
 
$
(0.8
)
 
$
(1.5
)
 
$
4.9
 
Severance, contractual commitments, and other charges
—
 
 
12.3
 
 
(7.5
)
 
(0.3
)
 
4.5
 
Total restructuring charges
$
—
 
 
$
19.5
 
 
$
(8.3
)
 
$
(1.8
)
 
$
9.4
 
 
Interest and Other Income, Net
 
Interest and other income, net, consists of the following (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Interest income and expense, net
$
1.8
 
 
$
5.8
 
 
$
49.6
 
Other income and expense, net
0.1
 
 
1.1
 
 
(0.9
)
Total interest and other income, net
$
1.9
 
 
$
6.9
 
 
$
48.7
 
 
 
Interest income and expense, net, primarily includes interest income from the Company's cash, cash equivalents, and investments, as well as customer financing charges. Other income and expense, net, primarily includes foreign exchange gains and losses and other miscellaneous expenses such as bank fees.
 
Note 9 - Financing Arrangements Level 1 (Notes)
Financing Arrangements [Text Block]
Financing Arrangements
 
The Company has customer financing arrangements to sell its accounts receivable to a major third-party financing provider. The program does not and is not intended to affect the timing of revenue recognition because the Company only recognizes revenue upon sell-through. Under the financing arrangements, proceeds from the financing provider are due to the Company 30 days from the sale of the receivable. In these transactions with the financing provider, the Company has surrendered control over the transferred assets. The accounts receivable have been isolated from the Company and put beyond the reach of 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.
 
Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $637.5 million and $449.8 million in 2010 and 2009, respectively. In 2010 and 2009, the Company received cash proceeds of $595.7 million and $426.3 million, respectively. The amounts owed by the financing provider recorded as accounts receivable on the Company's consolidated balance sheets as of December 31, 2010, and December 31, 2009, were $127.4 million and $89.8 million, respectively.
 
The portion of the financed receivable that has not been recognized as revenue is accounted for as a financing arrangement and is included in other accrued liabilities in the consolidated balance sheet. As of December 31, 2010, and December 31, 2009, the estimated amounts of cash received from the financing provider that has not been recognized as revenue from its distributors was $49.1 million and $52.6 million, respectively.
Note 10 - Derivative Instruments Level 1 (Notes)
Derivative Instruments [Text Block]
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 Company's foreign currency derivatives are summarized as follows (in millions):
 
 
As of December 31,
 
2010
 
2009
 
 
 
 
 
 
Cash flow hedges
$
110.4
 
 
$
59.4
 
Non-designated hedges
74.4
 
 
54.7
 
     Total
$
184.8
 
 
$
114.1
 
 
 
Cash Flow Hedges
 
The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to cost of services and operating expenses. The derivatives are intended to protect the U.S. Dollar equivalent of 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 less than one year. The effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, is subsequently reclassified into the cost of services or operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments in interest and other income, net in its consolidated statements of operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income (loss) are expected to be reclassified into earnings within the next 12 months.
 
The total fair value of the Company’s derivative assets located in other current assets in the consolidated balance sheets as of December 31, 2010, and 2009, was $0.4 million and $0.2 million, respectively. The total fair value of the Company’s derivative liabilities located in other accrued liabilities in the consolidated balance sheets as of December 31, 2010, and 2009, was $2.6 million and $1.5 million, respectively.
 
During the year ended December 31, 2010, the Company recognized a loss of $3.0 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a loss of $2.1 million from other comprehensive income to operating expense in the consolidated statements of operations. The Company recognized a gain of $0.6 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a gain of $4.2 million from other comprehensive income to operating expense in the consolidated statements of operations during the year ended December 31, 2009.
 
The ineffective portion of the Company's hedging instruments recognized in its consolidated statements of operations was immaterial during the three years ended December 31, 2010.
 
Non-Designated Hedges
 
The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These hedges do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in interest and other income, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately two months.
 
The Company recognized a loss of $0.3 million and a gain of $4.9 million on non-designated derivative instruments within interest and other income, net, in its consolidated statements of operations during the years ended December 31, 2010, and 2009, respectively.
Note 11 - Equity Level 1 (Notes)
Stockholders' Equity Note Disclosure [Text Block]
Equity
 
Stock Repurchase Activities
 
In February 2010, the Company’s Board of Directors (the “Board”) approved a new stock repurchase program (the “2010 Stock Repurchase Program”) which authorized the Company to repurchase up to $1.0 billion of its common stock. This new authorization is in addition to the stock repurchase program approved by the Board in March 2008 (the “2008 Stock Repurchase Program”), which also enabled the Company to repurchase up to $1.0 billion of the Company’s common stock.
 
Under the two stock repurchase programs, the Company repurchased approximately 19.7 million shares of its common stock at an average price of $28.67 per share for a total purchase price of $563.5 million in the year ended December 31, 2010, and approximately 20.7 million shares of its common stock at an average price of $21.91 per share for a total purchase price of $453.5 million in the year ended December 31, 2009. As of December 31, 2010, there were no remaining authorized funds under the 2008 Stock Repurchase Program and $755.1 million remaining authorized funds under the 2010 Stock Repurchase Program.
 
In addition to repurchases under the Company’s stock repurchase programs, there were also broker-transacted repurchases of common stock from the Company's employees in connection with net issuance of shares to satisfy tax withholding obligations for the vesting of certain RSUs and PSAs. There were broker-transacted repurchases of approximately 0.1 million shares of common stock at an average price of $25.75 per share for an aggregate purchase price of $1.9 million in connection with the net issuances during the year ended December 31, 2010. There was an immaterial amount of broker-transacted repurchases of common stock from the Company's employees in connection with net issuance of shares during the year ended December 31, 2009.
 
All shares of common stock repurchased under the Company’s 2008 and 2010 stock repurchase programs and from its employees in connection with net issuances have been retired. Future share repurchases under the Company’s 2010 Stock Repurchase Program will be subject to a review of the circumstances in place at that time and will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. This program may be discontinued at any time. See Note 18, Subsequent Events, for discussion of the Company's stock repurchase activity in 2011.
 
Comprehensive Income
 
Comprehensive income attributable to Juniper Networks consists of the following (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Consolidated net income
$
619.4
 
 
$
115.2
 
 
$
511.7
 
Other comprehensive income, net of tax:
 
 
 
 
 
Change in unrealized gain (loss) on investments, net tax of nil
(0.3
)
 
(2.8
)
 
2.6
 
Change in foreign currency translation adjustment, net tax of nil
0.5
 
 
5.6
 
 
(19.0
)
Total other comprehensive income (loss), net of tax
0.2
 
 
2.8
 
 
(16.4
)
Consolidated comprehensive income
619.6
 
 
118.0
 
 
495.3
 
Adjust for comprehensive (income) loss attributable to noncontrolling interest
(1.0
)
 
1.8
 
 
—
 
Comprehensive income attributable to Juniper Networks
$
618.6
 
 
$
119.8
 
 
$
495.3
 
 
 
Note 12 - Employee Benefit Plans Level 1 (Notes)
Employee Benefit Plans [Text Block]
Employee Benefit Plans
 
Stock Option Plans
 
2006 Equity Incentive Plan
 
On May 18, 2006, the Company's stockholders adopted the Company's 2006 Equity Incentive Plan (the “2006 Plan”) to enable the granting of incentive stock options, nonstatutory stock options, RSUs, restricted stock, stock appreciation rights, performance shares, performance units, deferred stock units, and dividend equivalents to the employees and consultants of the Company. The 2006 Plan also provides for automatic, non-discretionary awards of nonstatutory stock options and RSUs to the Company's non-employee members of the Board.
 
The maximum aggregate number of shares authorized under the 2006 Plan was 64.5 million shares of common stock, plus the addition of any shares subject to outstanding options under the Company's Amended and Restated 1996 Stock Plan (the “1996 Plan”) and the Company's 2000 Nonstatutory Stock Option Plan (the “2000 Plan”) to the extent that they expire unexercised after May 18, 2006, up to a maximum of 75.0 million additional shares of common stock. In the second quarter of 2010, the Company's stockholders approved an amendment to the 2006 Plan that increased the number of shares reserved for issuance thereunder by an additional 30.0 million shares.
 
Options granted under the 2006 Plan have a maximum term of seven years from the grant date, 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, restricted stock, performance shares, RSUs, or deferred stock units that vest solely based on continuing employment or provision of services will vest in full no earlier than the three-year anniversary of 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 the one-year anniversary of the grant date.
 
The 2006 Plan provides each non-employee director an automatic grant of an option to purchase 50,000 shares of common stock on the date such individual first becomes a director, whether through election by the stockholders of the Company or appointment by the Board to fill a vacancy (the “First Option”). In addition, at each of the Company's annual stockholder meetings (i) each non-employee director who was a non-employee director on the date of the prior year's annual stockholder meeting shall be automatically granted RSUs for a number of shares equal to the Annual Value (as defined below), and (ii) each non-employee director who was not a non-employee director on the date of the prior year's annual stockholder meeting shall receive a RSU award for a number of shares determined by multiplying the Annual Value by a fraction, the numerator of which is the number of days since the non-employee director received their First Option, and the denominator of which is 365, rounded down to the nearest whole share. Each RSU award specified in (i) and (ii) are referred to herein as an “Annual Award.” The Annual Value means the number of RSUs equal to $125,000 divided by the average daily closing price of the Company's common stock over the six month period ending on the last day of the fiscal year preceding the date of grant. The First Option vests monthly over approximately three years from the grant date subject to the non-employee director's continuous service on the Board. The Annual Award shall vest approximately one year from the grant date subject to the non-employee director's continuous service on the Board. Under the 2006 Plan, options granted to non-employee directors have a maximum term of seven years.
 
2000 Nonstatutory Stock Option Plan
 
In July 2000, the Board adopted the 2000 Plan. The 2000 Plan provided for the granting of nonstatutory stock options to employees, directors, and consultants. Options granted under the 2000 Plan generally become exercisable over a four-year period beginning on the date of grant and have a maximum term of ten years. The Company had authorized 90.9 million shares of common stock for issuance under the 2000 Plan. Effective May 18, 2006, additional equity awards under the 2000 Plan were discontinued and new equity awards are being granted under the 2006 Plan. Remaining authorized shares under the 2000 Plan that were not subject to outstanding awards as of May 18, 2006, were canceled on May 18, 2006. The 2000 Plan will remain in effect as to outstanding equity awards granted under the plan prior to May 18, 2006.
 
Amended and Restated 1996 Stock Plan
 
The 1996 Plan provided for the granting of incentive stock options to employees and nonstatutory stock options to employees, directors, and consultants. On November 3, 2005, the Board adopted an amendment to the 1996 Plan to add the ability to issue RSUs under the 1996 Plan. Options granted under the 1996 Plan generally became exercisable over a four-year period beginning on the date of grant and have a maximum term of ten years. The Company had authorized 164.6 million shares of common stock for issuance under the 1996 Plan. Effective May 18, 2006, additional equity awards under the 1996 Plan were discontinued and new equity awards are being granted under the 2006 Plan. Remaining authorized shares under the 1996 Plan that were not subject to outstanding awards as of May 18, 2006, were canceled on May 18, 2006. The 1996 Plan will remain in effect as to outstanding equity awards granted under the plan prior to May 18, 2006.
 
Plans Assumed Upon Acquisition
 
In connection with the recent and past acquisitions, the Company assumed options and RSUs under the stock plans of the acquired companies. The Company exchanged those options and restricted stock for Juniper Networks' options and restricted stock and, in the case of the options, authorized the appropriate number of shares of common stock for issuance pursuant to those options. As of December 31, 2010, there were approximately 2.1 million shares of common stock subject to outstanding awards under plans assumed through past acquisitions. There was no restricted stock subject to repurchase as of December 31, 2010, and 2009. There were no restricted stock repurchases during 2010, 2009, and 2008.
 
Stock Option Activities
 
A summary of the Company's stock option activity and related information as of and for the three years ended December 31, 2010, is set forth in the following table:
 
 
Outstanding Options 
 
Number of Shares
 
Weighted-Average Exercise Price
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(In millions) 
 
(In dollars) 
 
(In years) 
 
(In millions) 
Balance at December 31, 2007
66.9
 
 
$
20.36
 
 
 
 
 
 
Options granted
15.7
 
 
23.08
 
 
 
 
 
 
Options canceled
(2.4
)
 
22.03
 
 
 
 
 
 
Options exercised
(5.7
)
 
14.49
 
 
 
 
 
 
Options expired
(0.9
)
 
28.75
 
 
 
 
 
 
Balance at December 31, 2008
73.6
 
 
21.24
 
 
 
 
 
 
Options granted
9.9
 
 
17.86
 
 
 
 
 
 
Options canceled
(2.3
)
 
21.57
 
 
 
 
 
 
Options exercised
(8.6
)
 
14.59
 
 
 
 
 
 
Options expired
(5.2
)
 
34.91
 
 
 
 
 
 
Balance at December 31, 2009
67.4
 
 
20.84
 
 
 
 
 
 
Options granted
6.2
 
 
29.15
 
 
 
 
 
 
Options assumed (1)
0.5
 
 
31.65
 
 
 
 
 
Options canceled
(2.3
)
 
22.03
 
 
 
 
 
 
Options exercised
(21.6
)
 
18.99
 
 
 
 
 
 
Options expired
(0.8
)
 
61.48
 
 
 
 
 
 
Balance at December 31, 2010
49.4
 
 
$
21.90
 
 
4.1 years
 
$
744.5
 
As of December 31, 2010:
 
 
 
 
 
 
 
 
 
 
Vested or expected-to-vest options
47.0
 
 
$
21.79
 
 
4.1 years
 
$
713.9
 
Exercisable options
32.1
 
 
$
20.96
 
 
3.5 years
 
$
516.1
 
 ________________________________
(1)    
Stock options assumed in connection with the acquisition of Ankeena and Altor.
 
Aggregate intrinsic value represents the difference between the Company's closing stock price on the last trading day of the fiscal period, which was $36.92 as of December 31, 2010, 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 $260.3 million, $83.6 million, and $66.7 million for 2010, 2009, and 2008, respectively. Total fair value of options vested during 2010, 2009, and 2008 was $83.2 million, $88.9 million, and $70.3 million, respectively.
 
The following table summarizes information about stock options outstanding under all option plans as of December 31, 2010:
 
 
 
Options Outstanding 
 
Options Exercisable 
Range of Exercise Price 
 
Number Outstanding 
 
Weighted-Average Remaining Contractual Life 
 
Weighted-Average Exercise Price 
 
Number Exercisable 
 
Weighted-Average Exercise Price 
 
 
(In millions) 
 
(In years) 
 
(In dollars) 
 
(In millions) 
 
(In dollars) 
$0.33 - $14.68
 
5.2
 
 
2.8
 
 
$
9.92
 
 
4.3
 
 
$
9.57
 
$14.91 - $15.09
 
6.9
 
 
4.4
 
 
15.04
 
 
3.7
 
 
15.02
 
$15.32 - $18.13
 
5.1
 
 
3.6
 
 
17.44
 
 
3.7
 
 
17.55
 
$18.17 - $22.55
 
5.2
 
 
3.2
 
 
20.12
 
 
4.6
 
 
20.01
 
$22.59 - $24.14
 
6.0
 
 
4.1
 
 
23.56
 
 
5.9
 
 
23.57
 
$24.25 - $25.20
 
5.0
 
 
4.4
 
 
25.02
 
 
2.8
 
 
24.99
 
$25.25 - $26.90
 
5.2
 
 
4.8
 
 
26.40
 
 
2.8
 
 
26.29
 
$26.97 - $29.89
 
7.1
 
 
5.2
 
 
28.57
 
 
2.1
 
 
28.17
 
$29.93 - $115.48
 
3.7
 
 
4.5
 
 
33.94
 
 
2.2
 
 
34.76
 
$0.33 - $115.48
 
49.4
 
 
4.1
 
 
$
21.90
 
 
32.1
 
 
$
20.96
 
 
 
As of December 31, 2010, approximately 32.1 million shares of common stock were exercisable at a weighted-average exercise price of $20.96 per share. As of December 31, 2009, approximately 44.0 million shares of common stock were exercisable at an average exercise price of $20.91 per share.
 
Restricted Stock Units and Performance Share Award Activities
 
RSUs generally vest over a period of three to four years from the date of grant and PSAs granted generally vest from 2010 through 2013 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 information about the Company's RSUs and PSAs for the three years ended December 31, 2010:
 
 
 
Outstanding RSUs and PSAs
 
Number of Shares 
 
Weighted-Average Fair Value 
 
Weighted Average Remaining Contractual Term 
 
Aggregate Intrinsic Value 
 
(In millions) 
 
(In dollars) 
 
(In years) 
 
(In millions) 
Balance at December 31, 2007
6.3
 
 
$
22.40
 
 
 
 
 
 
RSUs granted
1.5
 
 
23.51
 
 
 
 
 
 
PSAs granted
1.5
 
 
25.61
 
 
 
 
 
 
RSUs vested
(1.9
)
 
18.37
 
 
 
 
 
 
RSUs canceled
(0.6
)
 
21.21
 
 
 
 
 
PSAs canceled
(0.1
)
 
25.16
 
 
 
 
 
Balance at December 31, 2008
6.7
 
 
$
24.59
 
 
 
 
 
 
RSUs granted
1.8
 
 
17.87
 
 
 
 
 
 
PSAs granted
2.9
 
 
18.05
 
 
 
 
 
 
RSUs vested
(1.3
)
 
21.05
 
 
 
 
 
 
PSAs vested
(0.1
)
 
26.90
 
 
 
 
 
RSUs canceled
(0.7
)
 
24.67
 
 
 
 
 
PSAs canceled
(0.2
)
 
19.12
 
 
 
 
 
Balance at December 31, 2009
9.1
 
 
$
21.76
 
 
 
 
 
 
RSUs granted
4.0
 
 
30.19
 
 
 
 
 
 
RSUs assumed (1)
0.5
 
 
32.09
 
 
 
 
 
 
PSAs granted (2)
3.8
 
 
29.25
 
 
 
 
 
 
RSUs vested
(1.8
)
 
25.30
 
 
 
 
 
PSAs vested
(0.4
)
 
20.64
 
 
 
 
 
RSUs canceled
(0.6
)
 
24.87
 
 
 
 
 
PSAs canceled
(0.4
)
 
22.57
 
 
 
 
 
Balance at December 31, 2010
14.2
 
 
$
25.94
 
 
1.7 years
 
$
522.9
 
As of December 31, 2010:
 
 
 
 
 
 
 
 
 
 
Vested and expected-to-vest RSUs and PSAs
12.1
 
 
$
25.70
 
 
1.6 years
 
$
448.2
 
 ________________________________
(1)    
RSUs assumed in connection with the acquisitions of Ankeena and Altor.
(2)    
The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 1.5 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 3.7 million shares.
 
Employee Stock Purchase Plan
 
In April 1999, the Board approved the adoption of Juniper Networks 1999 Employee Stock Purchase Plan (the “1999 Purchase Plan”). The 1999 Purchase Plan permits eligible employees to acquire shares of the Company's common stock through periodic payroll deductions of up to 10% of base compensation. Each employee may purchase no more than 6,000 shares in any twelve-month period, and in no event, may an employee purchase more than $25,000 worth of stock, determined at the fair market value of the shares at the time such option is granted, in one calendar year. The 1999 Purchase Plan is implemented in a series of offering periods, each six months in duration, or a shorter period as determined by the Board. The price at which the common stock may be purchased is 85% of the lesser of the fair market value of the Company's common stock on the first day of the applicable offering period or on the last day of the applicable offering period.
 
In May 2008, the Company's stockholders approved the adoption of the Juniper Networks 2008 Employee Stock Purchase Plan (the “2008 Purchase Plan”), which replaced the 1999 Purchase Plan. The Board reserved an aggregate of 12.0 million shares of the Company's common stock for issuance under the 2008 Purchase Plan. The 2008 Purchase Plan is generally similar to the 1999 Purchase Plan, except that under the 2008 Purchase Plan, any increases to the number of shares reserved for issuance must be approved by the Company's stockholders. The first offering period of the 2008 Purchase Plan commenced on the first trading day after February 1, 2009.
 
Employees purchased approximately 2.0 million, 3.2 million, and 1.6 million shares of common stock through the 2008 Purchase Plan and 1999 Purchase Plan at an average exercise price of $21.20, $12.16, and $22.57 per share during fiscal years 2010, 2009, and 2008, respectively. As of December 31, 2010, approximately 3.6 million shares had been issued under the 2008 Purchase Plan, and 8.4 million shares remained available for future issuance. Effective February 1, 2009, immediately following the conclusion of the offering period ended January 30, 2009, the 1999 Purchase Plan was discontinued, and no shares remained available for future issuance under such plan.
 
Shares Available for Grant
 
The following table presents the total number of shares available for grant under the 2006 Plan as of December 31, 2010:
 
 
Number of Shares 
 
(In millions) 
Balance at December 31, 2009
18.0
 
Additional authorized share reserve approved by stockholders
30.0
 
RSUs and PSAs granted (1)
(16.4
)
Options granted
(6.2
)
RSUs and PSAs canceled (1)
2.2
 
Options canceled (2)
2.3
 
Options expired (2)
0.8
 
Balance at December 31, 2010
30.7
 
________________________________
(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 unexercised after May 18, 2006, which become available for grant under the 2006 Plan according to its terms.
 
Common Stock Reserved for Future Issuance
 
As of December 31, 2010, the Company had reserved an aggregate of approximately 102.7 million shares of common stock for future issuance under its stock awards plans and the 2008 Purchase Plan.
 
Share-Based Compensation Expense
 
The Company determines fair value of its stock options utilizing the BSM option-pricing model, which incorporates various assumptions including volatility, risk-free interest rate, expected life, and dividend yield. The expected volatility is 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. The expected life of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees, as well as the potential effect from options that had not been exercised at the time.
 
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 Company determines fair value of its RSUs and PSAs based upon the fair market value of the Company's common stock at the date of grant.
 
The assumptions used and the resulting estimates of fair value for employee stock options and ESPP during the three years ended December 31, 2010, were:
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Employee Stock Options:
 
 
 
 
 
Volatility factor
33% - 42%
 
42% - 58%
 
43% - 60%
Risk-free interest rate
1.0% - 2.2%
 
0.4% - 4.2%
 
1.1% - 4.4%
Expected life (years)
4.2- 4.3
 
4.3 - 5.8
 
3.6 - 5.9
Dividend yield
—
 
—
 
—
Fair value per share
$7.83-$33.83
 
$6.02 - $10.49
 
$6.76- $10.88
 
 
 
 
 
 
ESPP:
 
 
 
 
 
Volatility factor
35% - 36%
 
46% - 58%
 
46% - 48%
Risk-free interest rate
0.2% - 0.2%
 
2.8% - 3.9%
 
1.9% - 2.2%
Expected life (years)
0.5
 
0.5
 
0.5
Dividend yield
—
 
—
 
—
Weighted-average fair value per share
$6.19-$7.09
 
$4.51 - $7.35
 
$7.40 - $7.80
 
  
The Company expenses the cost of its stock options on a straight-line basis over the vesting period and expenses the cost of its RSUs ratably over the vesting period. The Company recognizes PSA expense over the vesting period, beginning in the period in which the performance conditions are set.
 
The Company's share-based compensation expense associated with stock options, ESPP, RSUs, and PSAs was recorded in the following cost and expense categories for each of the three years ended December 31, 2010 (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Cost of revenues - Product
$
4.4
 
 
$
3.9
 
 
$
3.0
 
Cost of revenues - Service (1)
13.5
 
 
10.5
 
 
9.2
 
Research and development
78.5
 
 
59.3
 
 
47.0
 
Sales and marketing (1)
54.9
 
 
43.1
 
 
36.2
 
General and administrative
30.7
 
 
22.9
 
 
12.7
 
Total
$
182.0
 
 
$
139.7
 
 
$
108.1
 
 ________________________________
(1)    
Prior period information has been reclassified to conform to the current period's presentation.
 
The 2010 share-based compensation expense includes the value of vested restricted shares paid to certain former Ankeena employees. For additional information, see Note 5, Cash, Cash Equivalents, and Investments, under the heading "Restricted Cash."
 
The following table summarizes share-based compensation expense by award type for each of the three years ended December 31, 2010 (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Options
$
81.5
 
 
$
81.2
 
 
$
59.7
 
Assumed options
0.8
 
 
—
 
 
—
 
Other acquisition-related compensation
4.2
 
 
—
 
 
—
 
Assumed RSUs
0.6
 
 
—
 
 
—
 
RSUs and PSAs
81.8
 
 
44.1
 
 
35.2
 
ESPP
13.1
 
 
14.4
 
 
13.2
 
Total
$
182.0
 
 
$
139.7
 
 
$
108.1
 
 
As of December 31, 2010, approximately $109.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options will be recognized over a weighted-average period of approximately 2.3 years while approximately $151.2 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs and PSAs will be recognized over a weighted-average period of approximately 2.3 years.
 
401(k) Plan
 
Juniper Networks maintains a savings and retirement plan qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Employees meeting the eligibility requirement, as defined, may contribute up to the statutory limits of the year. The Company has matched employee contributions since January 1, 2001. The Company currently matches 25% of all eligible employee contributions. All matching contributions vest immediately. The Company's matching contributions to the plan totaled $13.2 million, $11.9 million, and $10.7 million in 2010, 2009, and 2008, respectively.
 
Deferred Compensation Plan
 
In July 2008, the Company formed a non-qualified deferred compensation (“NQDC”) plan, which 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 plan assets are included within investments and offsetting obligations are included within accrued compensation on the consolidated balance sheet. 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 interest and other income, net, and the offsetting compensation expense are recorded operating expenses in the consolidated statements of operations. As of December 31, 2010, and 2009, the deferred compensation liability under this plan was approximately $8.1 million and $4.7 million, respectively.
Note 13 - Segments Level 1 (Notes)
Segments [Text Block]
Segment Information
 
The Company's chief operating decision maker (“CODM”) allocates resources and assesses performance based on financial information provided by the Company's business groups. The Company’s operations are organized into two reportable segments: Infrastructure and SLT. The Infrastructure segment includes products from the E, M, MX, and T Series router product families, EX Series switching products, as well as the circuit-to-packet products. The SLT segment consists primarily of SRX service gateways, Firewall virtual private network (“Firewall”) systems and appliances, secure socket layer (“SSL”) virtual private network (“VPN”) appliances, the J Series router product family, intrusion detection and prevention (“IDP”) appliances, and wide area network (“WAN”) optimization platforms.
 
The primary financial measure used by the CODM in assessing performance of the segments is segment operating income, which includes certain cost of revenues, R&D expenses, sales and marketing expenses, and general and administrative expenses. The CODM does not allocate certain miscellaneous expenses to its segments even though such expenses are included in the Company's management operating income.
 
For arrangements with both Infrastructure and SLT products and services, revenue is attributed to the segment based on the underlying purchase order, contract, or sell-through report. Direct costs and operating expenses, such as standard costs, research and development (“R&D”), and product marketing expenses, are generally applied to each segment. Indirect costs, such as manufacturing overhead and other cost of revenues, are allocated based on standard costs. Indirect operating expenses, such as sales, marketing, business development, and general and administrative expenses are generally allocated to each segment based on factors including headcount, usage, and revenue. The CODM does not allocate share-based compensation, amortization of purchased intangible assets, restructuring and impairment charges, gains or losses on equity investments, other net income and expense, income taxes, as well as certain other charges to the segments.
 
The following table summarizes financial information used by the CODM for each segment (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Net revenues:
 
 
 
 
 
 
 
 
Infrastructure:
 
 
 
 
 
 
 
 
Product
$
2,511.6
 
 
$
1,959.2
 
 
$
2,301.9
 
Service
538.7
 
 
482.4
 
 
424.0
 
Total Infrastructure revenues
3,050.3
 
 
2,441.6
 
 
2,725.9
 
SLT:
 
 
 
 
 
Product
747.1
 
 
608.8
 
 
609.1
 
Service
295.9
 
 
265.5
 
 
237.4
 
Total SLT revenues
1,043.0
 
 
874.3
 
 
846.5
 
Total net revenues
4,093.3
 
 
3,315.9
 
 
3,572.4
 
Operating income:
 
 
 
 
 
Infrastructure
773.7
 
 
541.4
 
 
806.0
 
SLT
208.0
 
 
127.0
 
 
65.8
 
Total segment operating income
981.7
 
 
668.4
 
 
871.8
 
Other corporate (1)
—
 
 
—
 
 
(7.9
)
Total management operating income
981.7
 
 
668.4
 
 
863.9
 
Amortization of purchased intangible assets (2)
(8.6
)
 
(15.4
)
 
(49.0
)
Share-based compensation expense
(182.0
)
 
(139.7
)
 
(108.1
)
Share-based payroll tax expense
(6.4
)
 
(0.8
)
 
(2.8
)
Litigation settlement charges
—
 
 
(182.3
)
 
(9.0
)
Restructuring charges
(10.8
)
 
(19.5
)
 
—
 
Acquisition-related charges
(6.3
)
 
—
 
 
—
 
Total operating income
767.6
 
 
310.7
 
 
695.0
 
Interest and other income, net
1.9
 
 
6.9
 
 
48.7
 
Gain (loss) on equity investments
8.7
 
 
(5.5
)
 
(14.8
)
Income before income taxes and noncontrolling interest
$
778.2
 
 
$
312.1
 
 
$
728.9
 
________________________________
(1)    Other corporate charges include severance and related costs associated with workforce-rebalancing activities, which are not included in the business segment results.
(2)    Amount includes amortization expense of purchased intangible assets in operating expenses and in costs of revenues.
 
Depreciation expense allocated to the Infrastructure segment was $108.9 million, $94.0 million, and $86.3 million in the years ended December 31, 2010, 2009, and 2008, respectively. The depreciation expense allocated to the SLT segment was $37.9 million, $39.0 million, and $37.2 million in the years ended December 31, 2010, 2009, and 2008, respectively.
 
The Company attributes revenues to geographic regions based on the customer's ship-to location. The following table presents net revenues by geographic region (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Americas:
 
 
 
 
 
 
 
 
United States
$
1,890.1
 
 
$
1,515.1
 
 
$
1,537.5
 
Other
205.5
 
 
172.8
 
 
228.7
 
Total Americas
2,095.6
 
 
1,687.9
 
 
1,766.2
 
Europe, Middle East, and Africa
1,189.3
 
 
953.2
 
 
1,077.7
 
Asia Pacific
808.4
 
 
674.8
 
 
728.5
 
Total
$
4,093.3
 
 
$
3,315.9
 
 
$
3,572.4
 
 
Verizon Communications, Inc. accounted for 10.6% of the Company's total net revenues for 2010 and AT&T, Inc. accounted for 10.4% of the Company's total net revenues for 2009. No single customer accounted for more than 10% of the Company's total net revenues for 2008.
 
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, 2010, and 2009 were attributable to U.S. operations. As of December 31, 2010, and 2009, property and equipment held in the U.S. as a percentage of total property and equipment was 80% and 81%, respectively. Although management reviews asset information on a corporate level and allocates depreciation expense by segment, the CODM does not review asset information on a segment basis.
 
Note 14 - Income Taxes Level 1 (Notes)
Income Tax [Text Block]
Income Taxes
 
The components of income before the provision for income taxes and noncontrolling interest are summarized as follows (in millions):
 
 
Years Ended December 31, 
 
2010
 
2009
 
2008
Domestic
$
370.6
 
 
$
50.1
 
 
$
363.7
 
Foreign
407.6
 
 
262.0
 
 
365.2
 
Total income before provision for income taxes and noncontrolling interest
$
778.2
 
 
$
312.1
 
 
$
728.9
 
 
 
The provision for income taxes is summarized as follows (in millions):
 
 
Years Ended December 31, 
 
2010
 
2009
 
2008
Current (benefit) provision:
 
 
 
 
 
 
 
 
Federal
$
(8.4
)
 
$
123.8
 
 
$
96.6
 
State
1.0
 
 
21.4
 
 
35.8
 
Foreign
44.2
 
 
43.5
 
 
39.3
 
Total current provision
36.8
 
 
188.7
 
 
171.7
 
Deferred expense (benefit):
 
 
 
 
 
Federal
57.5
 
 
(42.7
)
 
21.4
 
State
14.0
 
 
55.7
 
 
(4.4
)
Foreign
(7.5
)
 
(5.9
)
 
(2.7
)
Total deferred expense
64.0
 
 
7.1
 
 
14.3
 
Income tax benefits attributable to employee stock plan activity
58.0
 
 
1.0
 
 
31.2
 
Total provision for income taxes
$
158.8
 
 
$
196.8
 
 
$
217.2
 
 
 
The provision for income taxes differs from the amount computed by applying the federal statutory rate to income before provision for income taxes as follows (in millions):
 
 
Years Ended December 31, 
 
2010
 
2009
 
2008
Expected provision at 35% rate
$
272.4
 
 
$
109.2
 
 
$
255.1
 
State taxes, net of federal benefit
6.2
 
 
(1.6
)
 
16.6
 
Foreign income at different tax rates
(71.5
)
 
(33.8
)
 
(51.2
)
R&D credits
(18.6
)
 
(14.4
)
 
(12.1
)
Stock-based compensation
(40.2
)
 
62.1
 
 
2.4
 
Temporary differences not currently benefited
10.2
 
 
72.8
 
 
—
 
Other
0.3
 
 
2.5
 
 
6.4
 
Total provision for income taxes
$
158.8
 
 
$
196.8
 
 
$
217.2
 
 
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, 
 
2010
 
2009
Deferred tax assets:
 
 
 
 
 
Net operating loss carry-forwards
$
14.1
 
 
$
6.2
 
Foreign tax credit carry-forwards
40.3
 
 
34.1
 
Research and other credit carry-forwards
68.2
 
 
66.0
 
Deferred revenue
86.1
 
 
66.3
 
Stock-based compensation
75.6
 
 
68.3
 
Reserves and accruals not currently deductible
227.6
 
 
264.5
 
Other
26.8
 
 
25.8
 
Total deferred tax assets
538.7
 
 
531.2
 
Valuation allowance
(122.2
)
 
(112.8
)
Deferred tax assets, net of valuation allowance
416.5
 
 
418.4
 
Deferred tax liabilities:
 
 
 
Property and equipment basis differences
(47.1
)
 
(25.1
)
Purchased intangibles
(58.5
)
 
(37.8
)
Unremitted foreign earnings
(175.1
)
 
(148.3
)
Other
(0.1
)
 
(0.3
)
Total deferred tax liabilities
(280.8
)
 
(211.5
)
Net deferred tax assets
$
135.7
 
 
$
206.9
 
 
As of December 31, 2010, and 2009, the Company had a valuation allowance on its U.S. domestic deferred tax assets of approximately $122.2 million and $112.8 million, respectively. The balance at December 31, 2010, consisted of approximately $80.6 million against the Company's California deferred assets and approximately $41.6 million related to losses that are capital in nature that will carry forward to offset future capital gains. The valuation allowance increased $9.4 million and $71.3 million in the years ended December 31, 2010, and 2009, respectively. The 2010 and 2009 increases were primarily due to changes in California income tax law which impacted the future taxable income within California and the tax rates that would apply to taxable income for the years in which the deferred tax assets are expected to be realized or settled. Based upon the estimates of the Company's future California taxable income, the Company has provided a valuation allowance on its remaining California deferred tax assets of $11.9 million in the year ended December 31, 2010.
 
As of December 31, 2010 the Company had federal and California net operating loss carry-forwards of approximately $37.0 million and $44.4 million, respectively. The Company also had California tax credit carry-forwards of approximately $138.4 million. Approximately $18.2 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 since they have not met the recognition criteria set forth in ASC Topic 718. Unused net operating loss carry-forwards will expire at various dates beginning in the year 2012. 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 $1,200.0 million of cumulative undistributed earnings of certain foreign subsidiaries through December 31, 2010, because it is the Company's intention to permanently reinvest such earnings. If such earnings were distributed, the Company would accrue additional income taxes expense of approximately $367.9 million. These earnings are considered indefinitely invested in operations outside of the U.S., as we intend to utilize these amounts to fund future expansion of our international operations.
 
As of December 31, 2010, 2009, and 2008 the total amount of gross unrecognized tax benefits was $116.4 million, $183.6 million, and $113.5 million, respectively. As of December 31, 2010, approximately $100.2 million of the $116.4 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 for the years ended December 31, 2010, 2009, and 2008 is as follows (in millions):
 
 
2010
 
2009
 
2008
Balance beginning of the year
$
183.6
 
 
$
113.5
 
 
$
94.7
 
Tax positions related to current year:
 
 
 
 
 
Additions
13.9
 
 
12.7
 
 
17.9
 
Tax positions related to prior years:
 
 
 
 
 
Additions
—
 
 
73.5
 
 
1.3
 
Reductions
(73.8
)
 
(1.0
)
 
—
 
Settlements
(1.6
)
 
(12.8
)
 
(0.4
)
Lapses in statutes of limitations
(5.7
)
 
(2.3
)
 
—
 
Balance end of the year
$
116.4
 
 
$
183.6
 
 
$
113.5
 
 
As of December 31, 2010, 2009, and 2008 the Company had accrued interest and penalties related to unrecognized tax benefits of $18.9 million, $23.5 million, and $8.7 million respectively, within other long-term liabilities in the consolidated balance sheets. In accordance with the Company's accounting policy, accrued interest and penalties related to unrecognized tax benefits are recognized as a component of tax expense in the consolidated statements of operations. The Company recognized a benefit for net interest and penalties of $4.6 million, and an expense of $14.8 million and $2.9 million in its consolidated statements of operations during the years ending December 31, 2010, 2009, and 2008, respectively.
 
The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of the gross unrecognized tax benefits will decrease by approximately $8.1 million within the next twelve months due to potential settlements with tax authorities and lapses of applicable statutes of limitations. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to the remaining unrecognized tax liabilities due to uncertainties in the timing of tax audit outcomes.
 
During 2010, the Company recognized approximately $73.4 million of tax benefits related to share based compensation, which the Company had previously recorded as unrecognized tax benefits in 2009. On March 22, 2010, the Court overturned its May 27, 2009 decision in Xilinx v. Commissioner and affirmed the original U.S. Tax Court decision, which held in favor of the taxpayer. While Juniper Networks was not a named party to the case, the Court's decision eliminates the uncertainty regarding the benefit of the tax position taken by the Company in certain years prior to fiscal 2004 relative to the allocable transfer price of share-based compensation related to the Company's intangible development costs. The Court's decision affirms that the value of share-based compensation related to share-based compensation grants made prior to 2004 is not required to be included in cost sharing agreements between related parties. In light of the Court's decision, the Company has determined that the tax benefit recognized under its prior tax position is more likely than not to be sustained.
 
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 Ireland, Hong Kong, U.K., France, Germany, The Netherlands, 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, although carry-forward attributes that were generated prior to 2004 may still be adjusted upon examination by the Internal Revenue Service ("IRS") if the attributes either have been or will be used in a future period.
 
The Company is currently under examination by the IRS for the 2004 through 2006 tax years, the China tax authorities for the 2009 tax year, and the France tax authorities for the 2007 through 2009 tax years. The Company is also subject to two separate ongoing examinations by the India tax authorities for the 2004 tax year and 2004 through 2008 tax years, respectively, and has received an inquiry from the Hong Kong tax authorities for the 2002 through 2008 tax years. Additionally, the Company has not reached a final resolution with the IRS on an adjustment it proposed for the 1999 and 2000 tax years. The Company is not aware of any other examination by taxing authorities in any other major jurisdictions in which it files income tax returns as of December 31, 2010.
 
In 2009, as part of the on-going 2004 IRS audit, the Company received a proposed adjustment related to the license of acquired intangibles under an intercompany R&D cost sharing arrangement. In 2009 and in April 2010, the Company received assessments from the Hong Kong tax authorities specifically related to inquiries of the 2002 and 2003 tax years, respectively. 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 relevant to this matter. The Company understands that the India tax authorities may issue an initial assessment that is substantially higher than this amount. As a result, in accordance with the administrative and judiciary 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 procedures relative to the matters referenced above. 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. For more information, please see Note 15, Commitments and Contingencies, under the heading “IRS Notices of Proposed Adjustments.”
 
Note 15 - Commitments and Contingencies Level 1 (Notes)
Commitments and Contingencies [Text Block]
Commitments and Contingencies
 
Commitments
 
The following table summarizes the Company's principal contractual obligations as of December 31, 2010, (in millions):
 
 
Total
 
2011
 
2012
 
2013
 
2014
 
2015
 
Thereafter
 
Other
Operating leases
$
296.3
 
 
$
51.1
 
 
$
45.4
 
 
$
35.1
 
 
$
29.8
 
 
$
23.1
 
 
$
111.8
 
 
$
—
 
Purchase commitments
198.6
 
 
198.6
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Tax liabilities
103.9
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
103.9
 
Other contractual obligations
95.1
 
 
65.8
 
 
18.0
 
 
9.5
 
 
1.8
 
 
—
 
 
—
 
 
—
 
Total
$
693.9
 
 
$
315.5
 
 
$
63.4
 
 
$
44.6
 
 
$
31.6
 
 
$
23.1
 
 
$
111.8
 
 
$
103.9
 
 
 
Operating Leases
 
The Company leases its facilities under operating leases that expire at various times, the longest of which expires on November 22, 2022. Future minimum payments under the non-cancelable operating leases totaled $296.3 million as of December 31, 2010. Rent expense for 2010, 2009, and 2008 was approximately $55.9 million, $56.6 million, and $58.0 million, respectively.
 
In October 2009, the Company amended three existing leases for the Company's corporate headquarters facilities in Sunnyvale, California. Each lease was amended to: (i) extend the underlying lease term, and (ii) establish new monthly base rent payments for periods after November 1, 2009. The new monthly base rent payments represent a significant reduction in base rent that would have been payable for the previously remaining terms of each of the underlying leases.
 
Purchase Commitments
 
In order to reduce manufacturing lead times and ensure adequate component supply, contract manufacturers utilized by the Company place non-cancelable, non-returnable (“NCNR”) orders for components based on the Company's build forecasts. As of December 31, 2010, there were NCNR component orders placed by the contract manufacturers with a value of $198.6 million. The contract manufacturers use the components to build products based on the Company's forecasts and on purchase orders that the Company has received from customers. Generally, the Company does not own the components and title to the products transfers from the contract manufacturers to the Company and immediately to the Company's customers upon delivery at a designated shipment location. If the components remain unused or the products remain unsold for specified periods, the Company may incur carrying charges or obsolete materials charges for components that the contract manufacturers purchased to build products to meet the Company's forecast or customer orders. As of December 31, 2010, the Company had accrued $22.7 million based on its estimate of such charges.
 
Tax Liabilities
 
As of December 31, 2010, the Company had $103.9 million included in long-term liabilities in the consolidated balance sheet for unrecognized tax positions. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to the $103.9 million in liability due to uncertainties in the timing of tax audit outcomes.
 
Other Contractual Obligations
 
As of December 31, 2010, other contractual obligations primarily consisted of $65.0 million of indemnity-related and service related escrows, required by certain acquisitions completed in 2005 and 2010, $13.2 million remaining balance for a data center hosting agreement that requires payments through the end of April 2013, $9.2 million for license and service agreements, and $7.7 million under a software subscription agreement that requires payments through the end of January 2011.
 
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. Other guarantees or indemnification arrangements include guarantees of product and service performance, guarantees related to third-party customer financing arrangements, and standby letters of credit for certain lease facilities. As of December 31, 2010, the Company had $21.6 million in guarantees and standby letters of credit. As of December 31, 2009, the Company had $34.0 million in guarantees and standby letters of credit.
 
Legal Proceedings
 
From time to time, the Company is involved in disputes, litigation, and other legal actions, including the matters described below. The Company is aggressively defending its current litigation matters, however, the outcome of these matters is currently not determinable. 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 future 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, which could result in the need to adjust the liability and record additional expenses.
 
Federal Securities Class Action
 
On July 14, 2006, and August 29, 2006, two purported class actions were filed in the Northern District of California against the Company and certain of the Company's current and former officers and directors. On November 20, 2006, the Court consolidated the two actions as In re Juniper Networks, Inc. Securities Litigation, No. C06-04327-JW, and appointed the New York City Pension Funds as lead plaintiffs. The lead plaintiffs filed a Consolidated Class Action Complaint on January 12, 2007, and filed an Amended Consolidated Class Action Complaint on April 9, 2007. The Amended Consolidated Complaint alleges that the defendants violated federal securities laws by manipulating stock option grant dates to coincide with low stock prices and issuing false and misleading statements including, among others, incorrect financial statements due to the improper accounting of stock option grants. The Amended Consolidated Complaint asserts claims for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 on behalf of all persons who purchased or otherwise acquired Juniper Networks' publicly-traded securities from July 12, 2001, through and including August 10, 2006. Plaintiffs seek unspecified damages in an unspecified amount. On June 7, 2007, the defendants filed a motion to dismiss certain of the claims, and a hearing was held on September 10, 2007. On March 31, 2008, the Court issued an order granting in part and denying in part the defendants' motion to dismiss. The order dismissed with prejudice plaintiffs' section 10(b) claim to the extent it was based on challenged statements made before July 14, 2001. The order also dismissed, with leave to amend, plaintiffs' section 10(b) claim against Pradeep Sindhu. The order upheld all of plaintiffs' remaining claims. Plaintiffs did not amend their complaint.
 
On September 25, 2009, the Court certified a plaintiff class consisting of all persons and entities who purchased or otherwise acquired the Company's securities from July 11, 2003 to August 10, 2006 inclusive, and were damaged thereby, including those who received or acquired Juniper Networks' common stock issued pursuant to the registration statement on SEC Form S-4, dated March 10, 2004, for the Company's merger with NetScreen Technologies Inc.; and purchasers of Zero Coupon Convertible Senior Notes due June 15, 2008 issued pursuant to a registration statement on SEC Form S-3 dated November 20, 2003. Excluded from the Class are the Defendants and the current and former officers and directors of the Company, their immediate families, their heirs, successors, or assigns and any entity controlled by any such person.
 
On February 5, 2010, the Company and the lead plaintiffs entered into an agreement in principle to settle the claims against the Company and each of the Company's current and former officers and directors. On August 31, 2010, the Court issued an order granting final approval to the settlement and issuing an order of dismissal with prejudice. Under the terms of the settlement, the claims against the Company and its officers and directors were dismissed with prejudice and released in exchange for a $169.0 million cash payment by the Company. The Company considered the proposed payment to be probable and reasonably estimable and, therefore, recorded the cash settlement amount as a pre-tax operating expense in its consolidated statement of operations for the fourth quarter ended December 31, 2009.
 
IPO Allocation Case
 
In December 2001, a class action complaint was filed in the United States District Court for the Southern District of New York against the Goldman Sachs Group, Inc., Credit Suisse First Boston Corporation, FleetBoston Robertson Stephens, Inc., Royal Bank of Canada (Dain Rauscher Wessels), SG Cowen Securities Corporation, UBS Warburg LLC (Warburg Dillon Read LLC), Chase (Hambrecht & Quist LLC), J.P. Morgan Chase & Co., Lehman Brothers, Inc., Salomon Smith Barney, Inc., Merrill Lynch, Pierce, Fenner & Smith, Incorporated (collectively, the “Underwriters”), Juniper Networks and certain of Juniper Networks' officers. This action was brought on behalf of purchasers of the Company's common stock in its initial public offering in June 1999 and the Company's secondary offering in September 1999.  Specifically, among other things, this complaint alleged that the prospectus pursuant to which shares of common stock were sold in the Company's initial public offering and the Company's subsequent secondary offering contained certain false and misleading statements or omissions regarding the practices of the Underwriters with respect to their allocation of shares of common stock in these offerings and their receipt of commissions from customers related to such allocations. Various plaintiffs have filed actions asserting similar allegations concerning the initial public offerings of approximately 300 other issuers. These various cases pending in the Southern District of New York have been coordinated for pretrial proceedings as In re Initial Public Offering Securities Litigation, 21 MC 92. In April 2002, the plaintiffs filed a consolidated amended complaint in the action against the Company, alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The defendants in the coordinated proceeding filed motions to dismiss. On February 19, 2003, the Court granted in part and denied in part the motion to dismiss, but declined to dismiss the claims against the Company.
 
The parties have reached a global settlement of the litigation. On October 5, 2009, the Court entered an Opinion and Order granting final approval of the settlement. Under the settlement, the insurers are to pay the full amount of settlement share allocated to the Company, and the Company will bear no financial liability. The Company and other defendants will receive complete dismissals from the case. Certain objectors have appealed the Court's October 5, 2009, final order to the Second Circuit Court of Appeals. Plaintiffs have filed motions to dismiss the appeals.
 
IRS Notices of Proposed Adjustments
 
In 2007, the IRS opened an examination of the Company's U.S. federal income tax and employment tax returns for the 2004 fiscal year. Subsequently, the IRS extended their examination of the Company's employment tax returns to include fiscal years 2005 and 2006. As of December 31, 2010, the IRS has not yet concluded its examinations of these returns. In September 2008, as part of its ongoing audit of the U.S. federal income tax return, the IRS issued a Notice of Proposed Adjustment (“NOPA”) regarding the Company's business credits. The Company believes that it has adequately provided for any reasonable foreseeable outcome related to this proposed adjustment. In 2009, the Company received a NOPA from the IRS claiming that the Company owes additional taxes, plus interest and possible penalties, for the 2004 tax year based on a transfer pricing transaction related to the license of acquired intangibles under an intercompany R&D cost sharing arrangement. The asserted changes to the Company's 2004 tax year would affect the Company's income tax liabilities in tax years subsequent to 2003. Because of the NOPA, the estimated incremental tax liability would be approximately $807 million, excluding interest and penalties. The Company has filed a protest to the proposed deficiency with the IRS, which has been referred to the Appeals Division of the IRS. As of December 31, 2010, an Appeals conference has not yet been scheduled. The Company strongly believes the IRS' position with regard to this matter is inconsistent with applicable tax laws and existing Treasury regulations, and that the Company's previously reported income tax provision for the year in question is appropriate. However, there can be no assurance that this matter will be resolved in the Company's favor. Regardless of whether this matter is resolved in the Company's favor, the final resolution of this matter could be expensive and time-consuming to defend and/or settle. While the Company believes it has provided adequately for this matter, there is still a possibility that an adverse outcome of the matter could have a material effect on its results of operations and financial condition.
 
The Company has not reached a final resolution with the IRS on an adjustment the IRS proposed for the 1999 and 2000 tax years. The Company is also under routine examination by certain state and non-U.S. tax authorities. The Company believes that it has adequately provided for any reasonably foreseeable outcome related to these audits.
 
Note 16 - Joint Venture Level 1 (Notes)
Joint Venture [Text Block]
Joint Venture
 
In 2009, the Company entered into an agreement to form a joint venture to provide a combined carrier Ethernet-based solution with NSN. At inception, the Company contributed $6.6 million for a 60 percent interest in the joint venture. Both NSN and Juniper Networks are entitled to appoint two board members to the board of the joint venture. The board will consist of four board members at all times.
 
Given the Company's majority ownership interest in the joint venture, the venture's financial results have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded to reflect the noncontrolling investor's interest in the venture's results. All intercompany transactions have been eliminated, with the exception of the noncontrolling interest.
 
Note 17 - Selected Quarterly Financial Data Level 1 (Notes)
Selected Quarterly Financial Information [Text Block]
Selected Quarterly Financial Data (Unaudited)
 
 
The table below sets forth selected unaudited financial data for each quarter of the two years ended December 31, 2010 (in millions, except per share amounts):
 
 
Year Ended December 31, 2010
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
$
721.2
 
 
$
774.1
 
 
$
801.2
 
 
$
962.2
 
Service
191.4
 
 
204.2
 
 
211.2
 
 
227.8
 
Total net revenues
912.6
 
 
978.3
 
 
1,012.4
 
 
1,190.0
 
Cost of revenues:
 
 
 
 
 
 
 
Product
222.4
 
 
231.8
 
 
247.0
 
 
299.7
 
Service
78.2
 
 
86.6
 
 
87.6
 
 
98.3
 
Total cost of revenues
300.6
 
 
318.4
 
 
334.6
 
 
398.0
 
Gross margin
612.0
 
 
659.9
 
 
677.8
 
 
792.0
 
Operating expenses:
 
 
 
 
 
 
 
Research and development
207.0
 
 
224.8
 
 
231.2
 
 
254.9
 
Sales and marketing
192.4
 
 
202.3
 
 
204.7
 
 
257.7
 
General and administrative
43.1
 
 
45.9
 
 
43.8
 
 
45.1
 
Amortization of purchased intangibles
1.1
 
 
1.2
 
 
0.9
 
 
0.9
 
Restructuring charges
8.1
 
 
0.2
 
 
0.2
 
 
2.3
 
Acquisition-related charges
—
 
 
0.5
 
 
1.5
 
 
4.3
 
Total operating expenses
451.7
 
 
474.9
 
 
482.3
 
 
565.2
 
Operating income
160.3
 
 
185.0
 
 
195.5
 
 
226.8
 
Interest and other income (expense), net
1.4
 
 
0.8
 
 
0.2
 
 
(0.6
)
Loss on equity investments
—
 
 
3.2
 
 
—
 
 
5.4
 
Income before income taxes and noncontrolling interest
161.7
 
 
189.0
 
 
195.7
 
 
231.6
 
Income tax (benefit) provision
(2.9
)
 
58.7
 
 
61.4
 
 
41.5
 
Consolidated net income
164.6
 
 
130.3
 
 
134.3
 
 
190.1
 
Adjust for net (income) loss attributable to noncontrolling interest
(1.5
)
 
0.2
 
 
0.2
 
 
0.1
 
Net income attributable to Juniper Networks
$
163.1
 
 
$
130.5
 
 
$
134.5
 
 
$
190.2
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
Basic
$
0.31
 
 
$
0.25
 
 
$
0.26
 
 
$
0.36
 
Diluted
$
0.30
 
 
$
0.24
 
 
$
0.25
 
 
$
0.35
 
 
 
 
Year Ended December 31, 2009
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
$
587.8
 
 
$
607.0
 
 
$
634.1
 
 
$
739.1
 
Service
176.3
 
 
179.4
 
 
189.8
 
 
202.4
 
Total net revenues
764.1
 
 
786.4
 
 
823.9
 
 
941.5
 
Cost of revenues:
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues - Product
193.0
 
 
207.6
 
 
206.3
 
 
234.8
 
Cost of revenues - Service
68.8
 
 
72.4
 
 
74.3
 
 
75.5
 
Total cost of revenues
261.8
 
 
280.0
 
 
280.6
 
 
310.3
 
Gross margin
502.3
 
 
506.4
 
 
543.3
 
 
631.2
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Research and development
185.4
 
 
183.9
 
 
185.2
 
 
187.2
 
Sales and marketing
187.9
 
 
176.6
 
 
183.4
 
 
211.3
 
General and administrative
39.2
 
 
39.2
 
 
39.9
 
 
41.2
 
Amortization of purchased intangibles
4.4
 
 
3.5
 
 
1.3
 
 
1.2
 
Litigation settlement charges
—
 
 
—
 
 
1.0
 
 
181.3
 
Restructuring charges
4.2
 
 
7.5
 
 
4.5
 
 
3.2
 
Total operating expenses
421.1
 
 
410.7
 
 
415.3
 
 
625.4
 
Operating income
81.2
 
 
95.7
 
 
128.0
 
 
5.8
 
Interest and other income, net
2.0
 
 
2.9
 
 
1.7
 
 
0.3
 
Gain on equity investments
(1.7
)
 
(1.6
)
 
—
 
 
(2.2
)
Income before income taxes and noncontrolling interest
81.5
 
 
97.0
 
 
129.7
 
 
3.9
 
Income tax provision (benefit)
85.9
 
 
82.2
 
 
45.9
 
 
(17.2
)
Consolidated net (loss) income
(4.4
)
 
14.8
 
 
83.8
 
 
21.1
 
Adjust for net loss attributable to noncontrolling interest
—
 
 
—
 
 
—
 
 
1.8
 
Net (loss) income attributable to Juniper Networks
$
(4.4
)
 
$
14.8
 
 
$
83.8
 
 
$
22.9
 
Net (loss) income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.01
)
 
$
0.03
 
 
$
0.16
 
 
$
0.04
 
Diluted
$
(0.01
)
 
$
0.03
 
 
$
0.16
 
 
$
0.04
 
 
 
Note 18 - Subsequent Events Level 1 (Notes)
Subsequent Events [Text Block]
Subsequent Event
 
Stock Repurchases
 
Subsequent to December 31, 2010, through the filing of this report, the Company repurchased 4.8 million shares of its common stock, for $200.3 million at an average purchase price of $42.14 per share, under its 2010 Stock Repurchase Program. As of the filing of this Annual Report on Form 10-K, the Company's 2010 Stock Repurchase Program had remaining authorized funds of $554.8 million. Purchases under the Company's 2010 Stock Repurchase Program are subject to a review of the circumstances in place at the time and will be made from time to time as permitted by securities laws and other legal requirements. This program may be discontinued at any time.
 
Valuation and Qualifying Accounts Level 1 (Notes)
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]
Schedule II - Valuation and Qualifying Account
Years Ended December 31, 2010, 2009, and 2008
 
 
Balance at Beginning of Year
 
Charged to (Reversed from) Costs and Expenses
 
Recoveries (Deductions), Net
 
Balance at End of Year
 
(In millions)
Year ended December 31, 2010
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
9.1
 
 
$
1.2
 
 
$
(0.2
)
 
$
10.1
 
Sales returns reserve
$
45.6
 
 
$
104.4
 
 
$
(97.2
)
 
$
52.8
 
Year ended December 31, 2009
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
9.7
 
 
$
(0.6
)
 
$
—
 
 
$
9.1
 
Sales returns reserve
$
36.8
 
 
$
84.1
 
 
$
(75.3
)
 
$
45.6
 
Year ended December 31, 2008
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
8.3
 
 
$
1.7
 
 
$
(0.3
)
 
$
9.7
 
Sales returns reserve
$
25.1
 
 
$
89.0
 
 
$
(77.3
)
 
$
36.8
 
 
 
 
Note 2 - Summary of Significant Accounting Policies Level 2 (Policies)
Use of Estimates 
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 our estimates and the actual results, our future consolidated results of operation may be affected.
 
Cash and Cash Equivalents 
Cash and Cash Equivalents
 
All highly liquid investments purchased with an original maturity of three months or less are classified as 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.
Investments in Available-for-Sale and Trading Securities 
Investments in Available-for-Sale and Trading Securities
 
Management determines the appropriate classification of securities at the time of purchase and re-evaluates such classification as of each balance sheet date. 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 (loss). Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in the consolidated statements of operations.
 
The Company recognizes an impairment charge for available-for-sale investments when a decline in the fair value of its investments below the cost basis is determined to be other than temporary. 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, which invests in mutual funds are classified as trading securities and reported at fair value in the consolidated balance sheets. The realized and unrealized holding gains and losses, as well as the offsetting compensation expense, are reported in the consolidated statements of operations.
Privately-Held Equity Investments 
Privately-Held Equity Investments
 
The Company has minority equity investments in privately-held companies. These investments are included in other long-term assets in the consolidated balance sheets and are carried at cost, 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 early stage at the time of the investment by the Company and such markets may never be significant. The Company monitors these investments for impairment by considering financial, operational, and economic data and makes appropriate reductions in carrying values when necessary. Realized gains and losses, if any, are reported in the consolidated statements of operations.
 
Fair Value Measurement 
Fair Value Measurement
 
The Company records its financial instruments and derivative contracts at fair value. The fair value assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The carrying value of the Company's financial instruments including cash and cash equivalents, accounts receivable, accrued compensation, and other accrued liabilities, approximates fair market value due to the relatively short period of time to maturity. The fair value of investments and derivatives is determined using quoted market prices for those securities or similar financial instruments.
Concentrations 
Concentrations
 
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, available-for-sale investments in fixed income securities, and money market funds with 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 risk.
 
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. The Company maintains reserves for potential bad debt and historically such losses have been within management's expectations. Verizon Communications, Inc., and AT&T, Inc., accounted for 10.6%, and 10.4% of the Company's total net revenues for 2010 and 2009, respectively. As of December 31, 2010 and 2009, we had significant accounts receivable for these customers. No single customer accounted for more than 10% of the Company's total net revenues for 2008.
 
The Company relies on sole suppliers for certain of its components such as ASICs and custom sheet metal. Additionally, the Company relies primarily on a limited number of significant independent contract manufacturers for the production of all of its products. The inability of any supplier or manufacturer to fulfill supply requirements of the Company could negatively impact future operating results.
Property and Equipment 
Property and Equipment
 
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the lesser of the estimated useful life or the lease term of the respective assets. The Company depreciates leasehold improvements over the lesser of the expected life of the lease or the assets, up to a maximum of ten years. The estimated useful life for land improvements is generally ten to fifteen years and the estimated useful life for all other depreciable assets is generally one and a half to five years.
Goodwill and Purchased Intangible Assets 
Goodwill and Purchased Intangible Assets
 
Goodwill represents the excess purchase price over fair value of net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from acquisitions of entities accounted for using the purchase method of accounting are estimated by management based upon fair value of the assets received. Identifiable intangible assets are comprised of purchased trademarks, developed technologies, customer relationships, maintenance contracts, and other intangible assets. Goodwill is not subject to amortization but is subject to annual assessment, at a minimum, for impairment by applying fair-value based tests. Future goodwill impairment tests could result in a charge to earnings. Purchased intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives ranging from two to nineteen years.
 
Impairment 
Impairment
 
The Company evaluates long-lived assets held for use for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset exceeds its fair value. The Company assesses the recoverability of its long-lived and intangible assets by determining whether the unamortized balances are greater than the sum of undiscounted future net cash flows of the related assets. The amount of impairment, if any, is measured based on projected discounted future net cash flows.
 
The Company evaluates goodwill, at a minimum, on an annual basis and whenever events and changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying value, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income approach and the market approach. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired, and a second step is performed to measure the amount of the impairment loss, if any. The Company conducted its annual impairment test as of November 1, 2010, 2009, and 2008, and determined that the carrying value of its remaining goodwill was not impaired. Future impairment indicators, including sustained declines in the Company's market capitalization or a decrease in revenue or profitability levels, could require impairment charges to be recorded.
Revenue Recognition Policy 
Revenue Recognition
 
In October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2009-13, Topic 605 - Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”). ASU 2009-13 changes the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. Under the new standard, the Company allocates the total arrangement consideration to each separable element of an arrangement based upon the relative selling price of each element. Arrangement consideration allocated to undelivered elements is deferred until delivery. Concurrently with issuing ASU 2009-13, the FASB also issued ASU No. 2009-14, Topic 985 - Certain Revenue Arrangements That Include Software Elements (“ASU 2009-14”). ASU 2009-14 excludes software that is contained on a tangible product from the scope of software revenue guidance if the software component and the non-software component function together to deliver the tangible products' essential functionality. The Company early adopted these standards on a prospective basis as of the beginning of fiscal 2010 for new and materially modified arrangements originating after December 31, 2009.
 
As a result of the adoption of ASU 2009-13 and ASU 2009-14, net revenue for the year ended December 31, 2010, was approximately $237 million higher than the net revenue that would have been recorded under the previous accounting rules. The increase in revenue was due to recognition of revenue for products shipped during the period which included approximately $183 million in the year ended December 31, 2010, related to undelivered product commitments for which we were unable to demonstrate fair value pursuant to the previous accounting standards. The remainder of the increase in revenue for the year was due to products sold into multiple-year service arrangements which was recognized ratably under the previous accounting standards and for the change in our allocation methodology from the residual method to the relative selling price method as prescribed by ASU 2009-13.
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 our credit checks and their payment histories. The Company records accounts receivable net of allowance for doubtful accounts, estimated customer returns, and pricing credits.
 
For fiscal 2010 and future periods, pursuant to the guidance of ASU 2009-13, when a sales arrangement contains multiple elements and software and non-software components function together to deliver the tangible products' essential functionality, the Company allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its 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 similarly situated customers. However, as the Company's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors products' selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The best estimate of selling price 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 guidance for recognizing software revenue, as amended.
 
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, future performance obligation, or subject to customer-specific return or refund privileges. The Company evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item, and the delivery and performance of the undelivered item is considered probable and substantially in the Company's control, the delivered element constitutes a separate unit of accounting. In circumstances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements, and the allocation of the arrangement consideration and revenue recognition is determined for the combined unit as a single unit. Allocation of the consideration is determined at arrangement inception on the basis of each unit's relative selling price. The new standards do not generally change the units of accounting for the Company's revenue transactions.
 
For transactions entered into prior to January 1, 2010, revenue for arrangements with multiple elements, such as sales of products that include services, is allocated to each element using the residual method based on the VSOE of fair value of the undelivered items pursuant to Accounting Standard Codification ("ASC") Topic 985-605, Software - Revenue Recognition. 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 is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual support period.
 
The Company accounts for multiple agreements with a single customer as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement.
 
For sales to direct end-users, value-added resellers, and original equipment manufacturer ("OEM") partners, the Company recognizes product revenue upon transfer of title and risk of loss, which is generally upon shipment. It is the Company's practice to identify an end-user prior to shipment to a value-added reseller. For the Company's end-users and value-added resellers, there are no significant obligations for future performance such as rights of return. The Company's agreements with its OEM partners may allow future rights of returns or pricing credits. A portion of the Company's sales is made through distributors under agreements allowing for pricing credits or rights of return. 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 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.
 
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.
 
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.
 
The Company sells certain interests in accounts receivable on a non-recourse basis as part of customer financing arrangements primarily with one major financing company. Cash received under this arrangement in advance of revenue recognition is recorded as short-term debt.
Allowance for Doubtful Accounts 
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 allowance and potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay.
Warranty Costs 
Warranty Costs
 
The Company generally offers a one-year warranty on all of its hardware products and a 90-day warranty on the media that contains the software embedded in the products. Warranty costs are accrued as part of the Company's cost of sales based on associated material costs, labor costs for customer support, 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. Customer support labor and overhead costs are estimated primarily based upon historical trends in the cost to support customer cases within the warranty period.
Contract Manufacturer Liabilities 
Contract Manufacturer Liabilities
 
The Company outsources most of its manufacturing, repair, and supply chain management operations to its independent contract manufacturers, and a significant portion of its cost of revenues consists of payments to them. The independent contract manufacturers produce the Company's products using design specifications, quality assurance programs, and standards established by the Company, and they procure components and manufacture the products based on the Company's demand forecasts. These forecasts are the Company's estimates of future demand for its products, based upon historical trends and analysis from the Company's sales and marketing organizations, adjusted for overall market conditions. The Company establishes a provision for inventory, carrying costs, and obsolete material exposures for excess components purchased based on historical trends.
Research and Development 
Research and Development
 
Costs to research, design, and develop the Company's products are expensed as incurred. Software development costs are capitalized beginning when a product's technological feasibility has been established and ending 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, and all software development costs have been expensed as incurred.
Advertising 
Advertising
 
Advertising costs are charged to sales and marketing expense as incurred. Advertising expense was $17.1 million, $11.4 million, and $5.0 million, for 2010, 2009, and 2008, respectively.
Loss Contingencies 
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 records a charge equal to the minimum estimated liability or a loss contingency only when both of the following conditions are met: (i) information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements, and (ii) the range 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 
Share-Based Compensation
 
The Company recognizes share-based compensation expense for all share-based payment awards including employee stock options, restricted stock units (“RSUs”), performance share awards ("PSAs"), and purchases under the Company's Employee Stock Purchase Plan ("ESPP") in accordance with ASC Topic 718 - Compensation - Stock Compensation ("ASC Topic 718"). Share-based compensation expense for expected-to-vest share-based awards is valued under the single-option approach and amortized on a straight-line basis, net of estimated forfeitures. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company's consolidated statements of operations for the years ended December 31, 2010, 2009, and 2008.
 
The Company utilizes the Black-Scholes-Merton (“BSM”) option-pricing model in order to determine the fair value of stock options. The BSM model requires various highly subjective assumptions that represents management's best estimates of volatility, expected option life, and risk-free interest rate. The expected volatility is based on the implied volatility of market traded options on our common stock, adjusted for other relevant factors including historical volatility of our common stock over the most recent period commensurate with the estimated expected life of our stock options. The expected life of an award is based on historical experience, the terms and conditions of the stock awards granted to employees, as well as the potential effect from options that have not been exercised at the time.
 
Derivatives 
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 contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in non-functional currencies. These derivatives are carried at fair value with changes recorded in interest and other income, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. These foreign exchange forward contracts have maturities of approximately two months.
 
The Company also 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 and have maturities of less than one year. The effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, is subsequently reclassified into the operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments, which was immaterial during 2010, 2009, and 2008, in interest and other income, net, on its consolidated statements of operations. Cash flows from such hedges are classified as operating activities.
Provision for Income Taxes 
Provision for Income Taxes
 
Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company regularly assesses the likelihood that its deferred tax assets will be realized from recoverable income taxes or recovered from future taxable income based on the realization criteria set forth in ASC Topic - Income Taxes (“ASC Topic 740”). To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce its deferred tax assets. The Company believes it is more likely than not that future income from the reversal of the deferred tax liabilities and forecasted income will be sufficient to fully recover the remaining deferred tax assets. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes potential liabilities based on its estimate of whether, and the extent to which, additional taxes will be due.
Comprehensive Income (Loss) 
Comprehensive Income (loss)
 
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company includes the components of comprehensive income (loss) as part of its consolidated statements of changes in equity. Accumulated other comprehensive income (loss) includes net unrealized gains (losses) on available-for-sale securities and net foreign currency translation gains (losses), and unrealized gains (losses) on derivatives designated as cash flow hedges that are excluded from net income.
Foreign Currency Translation 
Foreign Currency Translation
 
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 weighted-average exchange rates for the period. Foreign currency translation gains and losses were not material for the years ended December 31, 2010, 2009, and 2008. The effect of exchange rate changes on cash balances held in foreign currencies was immaterial in the years presented.
 
ASU 2010-29 Topic 805 - Business Combinations: Disclosure of Supplementary Pro Forma Information for Business Combinations 
In December 2010, the FASB issued ASU No. 2010-29, Topic 805 - Business Combinations: Disclosure of Supplementary Pro Forma Information for Business Combinations (“ASU 2010-29”), which provides further comparative disclosure guidance and expands the pro forma disclosure requirements under ASC Topic 805. This guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. ASU 2010-29 relates to disclosure requirements only and as such does not impact the Company's consolidated results of operations or financial condition.
ASU 2010-28 Intangibles Goodwill and Other: When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts [Text Block] 
In December 2010, the FASB issued ASU No. 2010-28, Topic 350 - Intangibles - Goodwill and Other: When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (“ASU 2010-28”), which modifies Step 1 of the goodwill impairment test for reporting units with zero or negative amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exist. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company's adoption of ASU 2010-28 is not expected to have an impact on its consolidated results of operations or financial condition.
ASU 2010-06 Topic 820 - Improving Disclosures about Fair Value Measurements 
In January 2010, the FASB issued ASU No. 2010-06, Topic 820 - Improving Disclosures about Fair Value Measurements (“ASU 2010-06”), which provides additional fair value measurement disclosures and clarifies certain existing disclosure requirements. Except for the requirement to disclose purchases, sales, issuances, and settlements of Level 3 measurements on a gross basis, the disclosure and clarification requirements are effective for interim and annual reporting periods beginning after December 15, 2009. The requirement to separately disclose purchases, sales, issuances, and settlements of recurring Level 3 measurements on a gross basis was effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. ASU 2010-06 relates to disclosure requirements only and it did not have an impact on the Company's consolidated results of operations or financial condition.
Note 3 - Business Combination Level 3 (Tables)
Acquisition date fair value of the consideration [Text Block] 
 
Total purchase consideration for these acquisitions is summarized as follows (in millions):
 
Ankeena
 
SMobile
 
Altor
 
Trapeze
 
Total
Net cash
$
66.5
 
 
$
69.5
 
 
$
104.0
 
 
$
152.1
 
 
$
392.1
 
Assumed stock option and RSU awards allocated to purchase price (1)
2.4
 
 
—
 
 
—
 
 
—
 
 
2.4
 
Total
$
68.9
 
 
$
69.5
 
 
$
104.0
 
 
$
152.1
 
 
$
394.5
 
 
________________________________
 
(1)    
The fair value of the stock option and RSU awards assumed was based on the acquired company's determined value on the acquisition date.
Purchase price allocation of acquisitions [Text Block] 
Allocation of the purchase consideration for acquisitions completed during the year ended December 31, 2010, is summarized as follows (in millions):
 
 
 
Ankeena
 
SMobile
 
Altor
 
Trapeze
 
Total
Net assets acquired (liabilities assumed)
 
$
3.6
 
 
$
(5.2
)
 
$
4.5
 
 
$
5.9
 
 
$
8.8
 
Intangible assets acquired
 
12.2
 
 
26.6
 
 
21.3
 
 
56.4
 
 
116.5
 
Goodwill
 
53.1
 
 
48.1
 
 
78.2
 
 
89.8
 
 
269.2
 
    Total
 
$
68.9
 
 
$
69.5
 
 
$
104.0
 
 
$
152.1
 
 
$
394.5
 
 
Schedule of Intangible Assets by Major Class [Text Block] 
The following table presents details of the intangible assets acquired through the business combinations completed during the year ended December 31, 2010 (in millions, except years):
 
 
Ankeena
 
SMobile
 
Altor
 
Trapeze
 
 
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Total Amount
Existing technology
4.0
 
 
$
5.2
 
 
5.0
 
 
$
24.3
 
 
6.0
 
 
$
8.8
 
 
5.0
 
 
$
45.0
 
 
$
83.3
 
In-process research and development
4.0
 
 
3.8
 
 
—
 
 
—
 
 
—
 
 
7.9
 
 
—
 
 
—
 
 
11.7
 
Core technology
4.0
 
 
3.2
 
 
—
 
 
—
 
 
6.0
 
 
4.6
 
 
—
 
 
—
 
 
7.8
 
Customer contracts and related relationships
—
 
 
—
 
 
6.0
 
 
2.1
 
 
—
 
 
—
 
 
7.0
 
 
8.6
 
 
10.7
 
Support agreements and related relationships
—
 
 
—
 
 
6.0
 
 
0.1
 
 
—
 
 
—
 
 
7.0
 
 
2.6
 
 
2.7
 
Non-compete agreements
—
 
 
—
 
 
2.0
 
 
0.1
 
 
—
 
 
—
 
 
—
 
 
—
 
 
0.1
 
OEM customer contracts
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
2.0
 
 
0.2
 
 
0.2
 
Total
 
 
$
12.2
 
 
 
 
$
26.6
 
 
 
 
$
21.3
 
 
 
 
$
56.4
 
 
$
116.5
 
 
Note 4 - Net Income per Share Level 3 (Tables)
Schedule of Earnings Per Share, Diluted, by Common Class [Text Block]
The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks (in millions, except per share amounts):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Numerator:
 
 
 
 
 
 
 
 
Net income attributable to Juniper Networks:
$
618.4
 
 
$
117.0
 
 
$
511.7
 
Denominator:
 
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
522.4
 
 
523.6
 
 
530.3
 
Effect of dilutive securities:
 
 
 
 
 
 
 
 
Shares issuable upon conversion of the Senior Notes
—
 
 
—
 
 
8.8
 
Employee stock awards
16.4
 
 
10.4
 
 
12.3
 
Weighted-average shares used to compute diluted net income per share
538.8
 
 
534.0
 
 
551.4
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
 
Basic
$
1.18
 
 
$
0.22
 
 
$
0.96
 
Diluted
$
1.15
 
 
$
0.22
 
 
$
0.93
 
Note 5 - Cash, Cash Equivalents and Investments Level 3 (Tables)
Cash and cash equivalents [Text Block] 
The following table summarizes the Company's cash and cash equivalents (in millions):
 
 
As of December 31,
 
2010
 
2009
Cash:
 
 
 
 
 
Demand deposits
$
413.0
 
 
$
427.2
 
Time deposits
273.3
 
 
127.9
 
Total cash
686.3
 
 
555.1
 
Cash equivalents:
 
 
 
 
 
U.S. government securities
76.7
 
 
—
 
Government-sponsored enterprise obligations
5.0
 
 
—
 
Commercial paper
4.0
 
 
17.0
 
Money market funds
1,039.9
 
 
1,032.6
 
Total cash equivalents
1,125.6
 
 
1,049.6
 
Total cash and cash equivalents
$
1,811.9
 
 
$
1,604.7
 
Available-for-sale and trading securities [Text Block] 
The following table summarizes the Company's unrealized gains and losses, and fair value of investments designated as available-for-sale and trading securities, as of December 31, 2010, and 2009 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2010: 
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
$
158.2
 
 
$
0.2
 
 
$
—
 
 
$
158.4
 
Government-sponsored enterprise obligations
213.8
 
 
0.4
 
 
(0.2
)
 
214.0
 
Foreign government debt securities
46.8
 
 
0.2
 
 
—
 
 
47.0
 
Certificate of deposit
20.9
 
 
0.1
 
 
—
 
 
21.0
 
Commercial paper
9.5
 
 
—
 
 
—
 
 
9.5
 
Asset-backed securities
90.1
 
 
—
 
 
(0.1
)
 
90.0
 
Corporate debt securities
459.7
 
 
2.2
 
 
(0.2
)
 
461.7
 
Total fixed income securities
999.0
 
 
3.1
 
 
(0.5
)
 
1,001.6
 
Total available-for-sale securities
999.0
 
 
3.1
 
 
(0.5
)
 
1,001.6
 
Trading securities
8.1
 
 
—
 
 
—
 
 
8.1
 
Total
$
1,007.1
 
 
$
3.1
 
 
$
(0.5
)
 
$
1,009.7
 
Reported as:
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
$
473.6
 
 
$
0.9
 
 
$
—
 
 
$
474.5
 
Long-term investments
533.5
 
 
2.2
 
 
(0.5
)
 
535.2
 
Total
$
1,007.1
 
 
$
3.1
 
 
$
(0.5
)
 
$
1,009.7
 
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2009: 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
U.S. government securities
$
245.0
 
 
$
0.1
 
 
$
—
 
 
$
245.1
 
Government-sponsored enterprise obligations
212.0
 
 
0.6
 
 
(0.3
)
 
212.3
 
Foreign government debt securities
96.4
 
 
0.3
 
 
(0.1
)
 
96.6
 
Corporate debt securities
488.2
 
 
2.0
 
 
(0.3
)
 
489.9
 
Total fixed income securities
1,041.6
 
 
3.0
 
 
(0.7
)
 
1,043.9
 
Publicly-traded equity securities
5.4
 
 
—
 
 
—
 
 
5.4
 
Total available-for-sale securities
1,047.0
 
 
3.0
 
 
(0.7
)
 
1,049.3
 
Trading securities
4.7
 
 
—
 
 
—
 
 
4.7
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
Reported as:
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
$
569.5
 
 
$
1.0
 
 
$
—
 
 
$
570.5
 
Long-term investments
482.2
 
 
2.0
 
 
(0.7
)
 
483.5
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
Maturities of available-for-sale and trading securities [Text Block] 
The following table presents the maturities of the Company's available-for-sale and trading securities, as of December 31, 2010, and 2009 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2010: 
 
 
 
 
 
 
 
 
 
 
 
Due within one year
$
465.5
 
 
$
0.9
 
 
$
—
 
 
$
466.4
 
Due between one and five years
533.5
 
 
2.2
 
 
(0.5
)
 
535.2
 
No contractual maturity
8.1
 
 
—
 
 
—
 
 
8.1
 
Total
$
1,007.1
 
 
$
3.1
 
 
$
(0.5
)
 
$
1,009.7
 
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2009: 
 
 
 
 
 
 
 
 
 
 
 
Due within one year
$
559.4
 
 
$
1.0
 
 
$
—
 
 
$
560.4
 
Due between one and five years
482.2
 
 
2.0
 
 
(0.7
)
 
483.5
 
No contractual maturity
10.1
 
 
—
 
 
—
 
 
10.1
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
 
Available-for-sale investments in an unrealized loss position [Text Block] 
The following tables presents the Company's available-for-sale investments that are in an unrealized loss position as of December 31, 2010 and 2009 (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, 2010
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities (1)
$
104.3
 
 
$
(0.2
)
 
$
28.8
 
 
$
—
 
 
$
133.1
 
 
$
(0.2
)
Government-sponsored enterprise obligations
57.8
 
 
(0.2
)
 
—
 
 
—
 
 
57.8
 
 
(0.2
)
Foreign government debt securities (1)
—
 
 
—
 
 
6.2
 
 
—
 
 
6.2
 
 
—
 
Commercial paper
5.0
 
 
—
 
 
—
 
 
—
 
 
5.0
 
 
—
 
Asset-backed securities
54.7
 
 
(0.1
)
 
—
 
 
—
 
 
54.7
 
 
(0.1
)
Total
$
221.8
 
 
$
(0.5
)
 
$
35.0
 
 
$
—
 
 
$
256.8
 
 
$
(0.5
)
 ________________________________
(1)    
Balance includes investments that were in an immaterial unrealized loss position 12 months or greater as of December 31, 2010.
 
 
Less than 12 Months 
 
 
Total 
 
Fair Value 
 
Unrealized Loss 
 
 
Fair Value 
 
Unrealized Loss 
As of December 31, 2009
 
 
 
 
 
 
 
 
Corporate debt securities
$
157.7
 
 
$
(0.3
)
 
 
$
157.7
 
 
$
(0.3
)
Government-sponsored enterprise obligations
38.9
 
 
(0.3
)
 
 
38.9
 
 
(0.3
)
Other investments (1)
126.2
 
 
(0.1
)
 
 
126.2
 
 
(0.1
)
Total
$
322.8
 
 
$
0.7
 
 
 
$
322.8
 
 
$
0.7
 
________________________________
(1)    
Other investments consist of U.S. and foreign government securities.
 
Restricted cash and investments [Text Block] 
The following table summarizes the Company's restricted cash as reported in the consolidated balance sheets (in millions):
 
 
As of December 31,
 
2010
 
2009
Restricted cash:
 
 
 
 
 
Demand deposits
$
1.7
 
 
$
3.8
 
Total restricted cash
1.7
 
 
3.8
 
Restricted investments:
 
 
 
U.S. government securities
0.6
 
 
19.8
 
Corporate debt securities
2.7
 
 
—
 
Money market funds
114.3
 
 
30.1
 
Total restricted investments
117.6
 
 
49.9
 
Total restricted cash and investments
$
119.3
 
 
$
53.7
 
 
Note 6 - Fair Value Measurements Level 3 (Tables)
Fair Value, Assets Measured on Recurring Basis [Text Block] 
The following tables provide a summary of assets measured at fair value on a recurring basis and their presentation on the Company’s consolidated balance sheets (in millions):
 
 
Fair Value Measurements at December 31, 2010 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
Available-for-sale debt securities:
 
 
 
 
 
 
 
U.S. government securities (1)
$
54.9
 
 
$
180.8
 
 
$
—
 
 
$
235.7
 
Government-sponsored enterprise obligations
208.9
 
 
10.1
 
 
—
 
 
219.0
 
Foreign government debt securities
21.0
 
 
26.0
 
 
—
 
 
47.0
 
Commercial paper
—
 
 
13.5
 
 
—
 
 
13.5
 
Corporate debt securities (2)
2.7
 
 
461.7
 
 
—
 
 
464.4
 
Certificate of deposit
—
 
 
21.0
 
 
—
 
 
21.0
 
Asset-backed securities
—
 
 
90.0
 
 
—
 
 
90.0
 
Money market funds (3)
1,154.2
 
 
—
 
 
—
 
 
1,154.2
 
Total available-for-sale debt securities
1,441.7
 
 
803.1
 
 
—
 
 
2,244.8
 
Total available-for-sale securities
1,441.7
 
 
803.1
 
 
—
 
 
2,244.8
 
Trading securities:
 
 
 
 
 
 
 
Mutual funds
8.1
 
 
—
 
 
—
 
 
8.1
 
Total trading securities
$
8.1
 
 
$
—
 
 
$
—
 
 
$
8.1
 
Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—
 
 
0.4
 
 
—
 
 
0.4
 
Total derivative assets
—
 
 
0.4
 
 
—
 
 
0.4
 
Total assets measured at fair value
$
1,449.8
 
 
$
803.5
 
 
$
—
 
 
$
2,253.3
 
________________________________
 
(1)    
Balance includes $0.6 million of restricted investments measured at fair market value, related to an acquisition completed in 2005. For additional information regarding the Company's restricted investments, see Note 5, Cash, Cash Equivalents, and Investments, under the heading “Restricted Cash.” Restricted investments are included in the restricted cash balance in the consolidated balance sheet.
(2)    
Balance includes $2.7 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust.
(3)    
Balance includes $114.3 million of restricted investments measured at fair market value, related to the Company's D&O trust.
Fair Value, by Balance Sheet Grouping [Text Block] 
 
Fair Value Measurements at December 31, 2010 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
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
1,039.9
 
 
$
85.7
 
 
$
—
 
 
$
1,125.6
 
Short-term investments
150.7
 
 
323.8
 
 
—
 
 
474.5
 
Long-term investments
142.2
 
 
393.0
 
 
—
 
 
535.2
 
Restricted cash
117.0
 
 
0.6
 
 
—
 
 
117.6
 
  Prepaid expenses and other current assets
—
 
 
0.4
 
 
—
 
 
0.4
 
Total assets measured at fair value
$
1,449.8
 
 
$
803.5
 
 
$
—
 
 
$
2,253.3
 
 
 
Fair Value Measurements at December 31, 2009 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
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
1,032.6
 
 
$
17.0
 
 
$
—
 
 
$
1,049.6
 
Short-term investments
101.3
 
 
469.2
 
 
—
 
 
570.5
 
Long-term investments
181.2
 
 
302.3
 
 
—
 
 
483.5
 
Restricted cash
49.9
 
 
—
 
 
—
 
 
49.9
 
  Prepaid expenses and other current assets
—
 
 
0.2
 
 
—
 
 
0.2
 
Total assets measured at fair value
$
1,365.0
 
 
$
788.7
 
 
$
—
 
 
$
2,153.7
 
 
Note 7 - Goodwill and Purchased Intangible Assets Level 3 (Tables)
Goodwill by segment [Text Block] 
The changes in the carrying amount of goodwill during the two years ended December 31, 2010, are as follows (in millions):
 
 
Infrastructure
 
SLT
 
Total
Balance as of January 1, 2009
 
 
 
 
 
Goodwill
$
1,500.5
 
 
$
3,438.1
 
 
$
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at January 1, 2009
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Balance as of December 31, 2009
 
 
 
 
 
Goodwill
1,500.5
 
 
3,438.1
 
 
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at December 31, 2009
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Balance as of January 1, 2010
 
 
 
 
 
Goodwill
1,500.5
 
 
3,438.1
 
 
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at January 1, 2010
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Adjustment to goodwill
—
 
 
0.2
 
 
0.2
 
Goodwill acquired during the twelve months ended December 31, 2010
142.9
 
 
126.1
 
 
269.0
 
Balance as of December 31, 2010
 
 
 
 
 
Goodwill
1,643.4
 
 
3,564.4
 
 
5,207.8
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at December 31, 2010
$
1,643.4
 
 
$
2,284.4
 
 
$
3,927.8
 
Schedule of finite-lived and indefinite-lived intangible assets by major class [Text Block] 
The following table presents the Company's purchased intangible assets (in millions):
 
 
Gross 
 
Accumulated Amortization 
 
Additions
 
Net 
As of December 31, 2010: 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets with definite lives:
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(381.4
)
 
$
91.1
 
 
$
89.7
 
Other
68.9
 
 
(62.2
)
 
17.5
 
 
24.2
 
Total intangible assets with definite lives
448.9
 
 
(443.6
)
 
108.6
 
 
113.9
 
IPR&D with indefinite lives
—
 
 
—
 
 
7.9
 
 
7.9
 
Total
$
448.9
 
 
$
(443.6
)
 
$
116.5
 
 
$
121.8
 
 
 
 
 
 
 
 
 
As of December 31, 2009: 
 
 
 
 
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(376.0
)
 
$
—
 
 
$
4.0
 
Other
68.9
 
 
(59.1
)
 
—
 
 
9.8
 
Total
$
448.9
 
 
$
(435.1
)
 
$
—
 
 
$
13.8
 
Estimated future amortization expense of purchased intangible assets with definite lives [Text Block] 
The estimated future amortization expense of purchased intangible assets with definite lives for future periods is as follows (in millions):
 
Years Ending December 31, 
Amount 
2011
$
23.3
 
2012
22.5
 
2013
22.3
 
2014
20.4
 
2015
16.6
 
Thereafter
8.8
 
Total
$
113.9
 
Note 8 - Other Financial Information Level 3 (Tables)
Property and equipment [Text Block] 
Property and equipment consist of the following (in millions):
 
 
As of December 31,
 
2010
 
2009
Computers and equipment
$
530.1
 
 
$
435.6
 
Software
117.8
 
 
105.0
 
Leasehold improvements
178.1
 
 
158.8
 
Furniture and fixtures
24.9
 
 
21.6
 
Land and land improvements
214.5
 
 
201.6
 
Property and equipment, gross
1,065.4
 
 
922.6
 
Accumulated depreciation
(571.5
)
 
(466.9
)
Property and equipment, net
$
493.9
 
 
$
455.7
 
 
Deferred revenue [Text Block] 
The following table provides a breakdown of the Company's deferred revenue (in millions):
 
 
As of December 31,
 
2010
 
2009
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
294.1
 
 
$
254.7
 
Distributor inventory and other sell-through items
143.4
 
 
136.6
 
Deferred gross product revenue
437.5
 
 
391.3
 
Deferred cost of product revenue
(148.8
)
 
(150.0
)
Deferred product revenue, net
288.7
 
 
241.3
 
Deferred service revenue
595.7
 
 
512.3
 
Total
$
884.4
 
 
$
753.6
 
Reported as:
 
 
 
Current
$
660.2
 
 
$
571.7
 
Long-term
224.2
 
 
181.9
 
Total
$
884.4
 
 
$
753.6
 
Warranties [Text Block] 
Changes in the Company's accrued warranty are as follows (in millions):
 
 
As of December 31,
 
2010
 
2009
Beginning balance
$
38.2
 
 
$
40.1
 
Provisions made during the period, net
49.9
 
 
46.9
 
Change in estimate
(3.0
)
 
(5.6
)
Actual costs incurred during the period
(49.2
)
 
(43.2
)
Ending balance
$
35.9
 
 
$
38.2
 
Changes in restructuring liability [Text Block] 
The following tables illustrate changes in the restructuring liabilities during 2010 and 2009, respectively (in millions):
 
 
Liability as of December 31, 2009
 
Charges 
 
Cash Payments 
 
Adjustment 
 
Liability as of December 31, 2010
Facilities
$
4.9
 
 
$
6.9
 
 
$
(2.5
)
 
$
(1.6
)
 
$
7.7
 
Severance, contractual commitments, and other charges
4.5
 
 
3.9
 
 
(5.5
)
 
(2.7
)
 
0.2
 
Total restructuring charges
$
9.4
 
 
$
10.8
 
 
$
(8.0
)
 
$
(4.3
)
 
$
7.9
 
 
 
Liability as of December 31, 2008
 
Charges 
 
Cash Payments 
 
Adjustment 
 
Liability as of December 31, 2009
Facilities
$
—
 
 
$
7.2
 
 
$
(0.8
)
 
$
(1.5
)
 
$
4.9
 
Severance, contractual commitments, and other charges
—
 
 
12.3
 
 
(7.5
)
 
(0.3
)
 
4.5
 
Total restructuring charges
$
—
 
 
$
19.5
 
 
$
(8.3
)
 
$
(1.8
)
 
$
9.4
 
 
Other Income and Other Expense Disclosure [Text Block] 
Interest and other income, net, consists of the following (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Interest income and expense, net
$
1.8
 
 
$
5.8
 
 
$
49.6
 
Other income and expense, net
0.1
 
 
1.1
 
 
(0.9
)
Total interest and other income, net
$
1.9
 
 
$
6.9
 
 
$
48.7
 
Note 10 - Derivative Instruments Level 3 (Tables)
Schedule of Derivative Instruments [Text Block]
The notional amount of Company's foreign currency derivatives are summarized as follows (in millions):
 
 
As of December 31,
 
2010
 
2009
 
 
 
 
 
 
Cash flow hedges
$
110.4
 
 
$
59.4
 
Non-designated hedges
74.4
 
 
54.7
 
     Total
$
184.8
 
 
$
114.1
 
Note 11 - Equity Level 3 (Tables)
Summary of comprehensive income [Text Block]
Comprehensive income attributable to Juniper Networks consists of the following (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Consolidated net income
$
619.4
 
 
$
115.2
 
 
$
511.7
 
Other comprehensive income, net of tax:
 
 
 
 
 
Change in unrealized gain (loss) on investments, net tax of nil
(0.3
)
 
(2.8
)
 
2.6
 
Change in foreign currency translation adjustment, net tax of nil
0.5
 
 
5.6
 
 
(19.0
)
Total other comprehensive income (loss), net of tax
0.2
 
 
2.8
 
 
(16.4
)
Consolidated comprehensive income
619.6
 
 
118.0
 
 
495.3
 
Adjust for comprehensive (income) loss attributable to noncontrolling interest
(1.0
)
 
1.8
 
 
—
 
Comprehensive income attributable to Juniper Networks
$
618.6
 
 
$
119.8
 
 
$
495.3
 
Note 12 - Employee Benefit Plans Level 3 (Tables)
Stock option activities [Text Block] 
A summary of the Company's stock option activity and related information as of and for the three years ended December 31, 2010, is set forth in the following table:
 
 
Outstanding Options 
 
Number of Shares
 
Weighted-Average Exercise Price
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(In millions) 
 
(In dollars) 
 
(In years) 
 
(In millions) 
Balance at December 31, 2007
66.9
 
 
$
20.36
 
 
 
 
 
 
Options granted
15.7
 
 
23.08
 
 
 
 
 
 
Options canceled
(2.4
)
 
22.03
 
 
 
 
 
 
Options exercised
(5.7
)
 
14.49
 
 
 
 
 
 
Options expired
(0.9
)
 
28.75
 
 
 
 
 
 
Balance at December 31, 2008
73.6
 
 
21.24
 
 
 
 
 
 
Options granted
9.9
 
 
17.86
 
 
 
 
 
 
Options canceled
(2.3
)
 
21.57
 
 
 
 
 
 
Options exercised
(8.6
)
 
14.59
 
 
 
 
 
 
Options expired
(5.2
)
 
34.91
 
 
 
 
 
 
Balance at December 31, 2009
67.4
 
 
20.84
 
 
 
 
 
 
Options granted
6.2
 
 
29.15
 
 
 
 
 
 
Options assumed (1)
0.5
 
 
31.65
 
 
 
 
 
Options canceled
(2.3
)
 
22.03
 
 
 
 
 
 
Options exercised
(21.6
)
 
18.99
 
 
 
 
 
 
Options expired
(0.8
)
 
61.48
 
 
 
 
 
 
Balance at December 31, 2010
49.4
 
 
$
21.90
 
 
4.1 years
 
$
744.5
 
As of December 31, 2010:
 
 
 
 
 
 
 
 
 
 
Vested or expected-to-vest options
47.0
 
 
$
21.79
 
 
4.1 years
 
$
713.9
 
Exercisable options
32.1
 
 
$
20.96
 
 
3.5 years
 
$
516.1
 
 ________________________________
(1)    
Stock options assumed in connection with the acquisition of Ankeena and Altor.
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Text Block] 
The following table summarizes information about stock options outstanding under all option plans as of December 31, 2010:
 
 
 
Options Outstanding 
 
Options Exercisable 
Range of Exercise Price 
 
Number Outstanding 
 
Weighted-Average Remaining Contractual Life 
 
Weighted-Average Exercise Price 
 
Number Exercisable 
 
Weighted-Average Exercise Price 
 
 
(In millions) 
 
(In years) 
 
(In dollars) 
 
(In millions) 
 
(In dollars) 
$0.33 - $14.68
 
5.2
 
 
2.8
 
 
$
9.92
 
 
4.3
 
 
$
9.57
 
$14.91 - $15.09
 
6.9
 
 
4.4
 
 
15.04
 
 
3.7
 
 
15.02
 
$15.32 - $18.13
 
5.1
 
 
3.6
 
 
17.44
 
 
3.7
 
 
17.55
 
$18.17 - $22.55
 
5.2
 
 
3.2
 
 
20.12
 
 
4.6
 
 
20.01
 
$22.59 - $24.14
 
6.0
 
 
4.1
 
 
23.56
 
 
5.9
 
 
23.57
 
$24.25 - $25.20
 
5.0
 
 
4.4
 
 
25.02
 
 
2.8
 
 
24.99
 
$25.25 - $26.90
 
5.2
 
 
4.8
 
 
26.40
 
 
2.8
 
 
26.29
 
$26.97 - $29.89
 
7.1
 
 
5.2
 
 
28.57
 
 
2.1
 
 
28.17
 
$29.93 - $115.48
 
3.7
 
 
4.5
 
 
33.94
 
 
2.2
 
 
34.76
 
$0.33 - $115.48
 
49.4
 
 
4.1
 
 
$
21.90
 
 
32.1
 
 
$
20.96
 
Restricted stock units and performance share awards activities [Text Block] 
The following table summarizes information about the Company's RSUs and PSAs for the three years ended December 31, 2010:
 
 
 
Outstanding RSUs and PSAs
 
Number of Shares 
 
Weighted-Average Fair Value 
 
Weighted Average Remaining Contractual Term 
 
Aggregate Intrinsic Value 
 
(In millions) 
 
(In dollars) 
 
(In years) 
 
(In millions) 
Balance at December 31, 2007
6.3
 
 
$
22.40
 
 
 
 
 
 
RSUs granted
1.5
 
 
23.51
 
 
 
 
 
 
PSAs granted
1.5
 
 
25.61
 
 
 
 
 
 
RSUs vested
(1.9
)
 
18.37
 
 
 
 
 
 
RSUs canceled
(0.6
)
 
21.21
 
 
 
 
 
PSAs canceled
(0.1
)
 
25.16
 
 
 
 
 
Balance at December 31, 2008
6.7
 
 
$
24.59
 
 
 
 
 
 
RSUs granted
1.8
 
 
17.87
 
 
 
 
 
 
PSAs granted
2.9
 
 
18.05
 
 
 
 
 
 
RSUs vested
(1.3
)
 
21.05
 
 
 
 
 
 
PSAs vested
(0.1
)
 
26.90
 
 
 
 
 
RSUs canceled
(0.7
)
 
24.67
 
 
 
 
 
PSAs canceled
(0.2
)
 
19.12
 
 
 
 
 
Balance at December 31, 2009
9.1
 
 
$
21.76
 
 
 
 
 
 
RSUs granted
4.0
 
 
30.19
 
 
 
 
 
 
RSUs assumed (1)
0.5
 
 
32.09
 
 
 
 
 
 
PSAs granted (2)
3.8
 
 
29.25
 
 
 
 
 
 
RSUs vested
(1.8
)
 
25.30
 
 
 
 
 
PSAs vested
(0.4
)
 
20.64
 
 
 
 
 
RSUs canceled
(0.6
)
 
24.87
 
 
 
 
 
PSAs canceled
(0.4
)
 
22.57
 
 
 
 
 
Balance at December 31, 2010
14.2
 
 
$
25.94
 
 
1.7 years
 
$
522.9
 
As of December 31, 2010:
 
 
 
 
 
 
 
 
 
 
Vested and expected-to-vest RSUs and PSAs
12.1
 
 
$
25.70
 
 
1.6 years
 
$
448.2
 
 ________________________________
(1)    
RSUs assumed in connection with the acquisitions of Ankeena and Altor.
(2)    
The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 1.5 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 3.7 million shares.
Shares available for grant [Text Block] 
The following table presents the total number of shares available for grant under the 2006 Plan as of December 31, 2010:
 
 
Number of Shares 
 
(In millions) 
Balance at December 31, 2009
18.0
 
Additional authorized share reserve approved by stockholders
30.0
 
RSUs and PSAs granted (1)
(16.4
)
Options granted
(6.2
)
RSUs and PSAs canceled (1)
2.2
 
Options canceled (2)
2.3
 
Options expired (2)
0.8
 
Balance at December 31, 2010
30.7
 
________________________________
(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 unexercised after May 18, 2006, which become available for grant under the 2006 Plan according to its terms.
Assumptions used and the resulting estimates of fair value for employee stock options and ESPP [Text Block] 
The assumptions used and the resulting estimates of fair value for employee stock options and ESPP during the three years ended December 31, 2010, were:
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Employee Stock Options:
 
 
 
 
 
Volatility factor
33% - 42%
 
42% - 58%
 
43% - 60%
Risk-free interest rate
1.0% - 2.2%
 
0.4% - 4.2%
 
1.1% - 4.4%
Expected life (years)
4.2- 4.3
 
4.3 - 5.8
 
3.6 - 5.9
Dividend yield
—
 
—
 
—
Fair value per share
$7.83-$33.83
 
$6.02 - $10.49
 
$6.76- $10.88
 
 
 
 
 
 
ESPP:
 
 
 
 
 
Volatility factor
35% - 36%
 
46% - 58%
 
46% - 48%
Risk-free interest rate
0.2% - 0.2%
 
2.8% - 3.9%
 
1.9% - 2.2%
Expected life (years)
0.5
 
0.5
 
0.5
Dividend yield
—
 
—
 
—
Weighted-average fair value per share
$6.19-$7.09
 
$4.51 - $7.35
 
$7.40 - $7.80
Share-based compensation expense recorded in cost and expense categories [Text Block] 
The Company's share-based compensation expense associated with stock options, ESPP, RSUs, and PSAs was recorded in the following cost and expense categories for each of the three years ended December 31, 2010 (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Cost of revenues - Product
$
4.4
 
 
$
3.9
 
 
$
3.0
 
Cost of revenues - Service (1)
13.5
 
 
10.5
 
 
9.2
 
Research and development
78.5
 
 
59.3
 
 
47.0
 
Sales and marketing (1)
54.9
 
 
43.1
 
 
36.2
 
General and administrative
30.7
 
 
22.9
 
 
12.7
 
Total
$
182.0
 
 
$
139.7
 
 
$
108.1
 
 ________________________________
(1)    
Prior period information has been reclassified to conform to the current period's presentation.
 
Share-based compensation expense by award type [Text Block] 
The following table summarizes share-based compensation expense by award type for each of the three years ended December 31, 2010 (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Options
$
81.5
 
 
$
81.2
 
 
$
59.7
 
Assumed options
0.8
 
 
—
 
 
—
 
Other acquisition-related compensation
4.2
 
 
—
 
 
—
 
Assumed RSUs
0.6
 
 
—
 
 
—
 
RSUs and PSAs
81.8
 
 
44.1
 
 
35.2
 
ESPP
13.1
 
 
14.4
 
 
13.2
 
Total
$
182.0
 
 
$
139.7
 
 
$
108.1
 
 
Note 13 - Segments Level 3 (Tables)
Financial information for each segment [Text Block] 
The following table summarizes financial information used by the CODM for each segment (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Net revenues:
 
 
 
 
 
 
 
 
Infrastructure:
 
 
 
 
 
 
 
 
Product
$
2,511.6
 
 
$
1,959.2
 
 
$
2,301.9
 
Service
538.7
 
 
482.4
 
 
424.0
 
Total Infrastructure revenues
3,050.3
 
 
2,441.6
 
 
2,725.9
 
SLT:
 
 
 
 
 
Product
747.1
 
 
608.8
 
 
609.1
 
Service
295.9
 
 
265.5
 
 
237.4
 
Total SLT revenues
1,043.0
 
 
874.3
 
 
846.5
 
Total net revenues
4,093.3
 
 
3,315.9
 
 
3,572.4
 
Operating income:
 
 
 
 
 
Infrastructure
773.7
 
 
541.4
 
 
806.0
 
SLT
208.0
 
 
127.0
 
 
65.8
 
Total segment operating income
981.7
 
 
668.4
 
 
871.8
 
Other corporate (1)
—
 
 
—
 
 
(7.9
)
Total management operating income
981.7
 
 
668.4
 
 
863.9
 
Amortization of purchased intangible assets (2)
(8.6
)
 
(15.4
)
 
(49.0
)
Share-based compensation expense
(182.0
)
 
(139.7
)
 
(108.1
)
Share-based payroll tax expense
(6.4
)
 
(0.8
)
 
(2.8
)
Litigation settlement charges
—
 
 
(182.3
)
 
(9.0
)
Restructuring charges
(10.8
)
 
(19.5
)
 
—
 
Acquisition-related charges
(6.3
)
 
—
 
 
—
 
Total operating income
767.6
 
 
310.7
 
 
695.0
 
Interest and other income, net
1.9
 
 
6.9
 
 
48.7
 
Gain (loss) on equity investments
8.7
 
 
(5.5
)
 
(14.8
)
Income before income taxes and noncontrolling interest
$
778.2
 
 
$
312.1
 
 
$
728.9
 
________________________________
(1)    Other corporate charges include severance and related costs associated with workforce-rebalancing activities, which are not included in the business segment results.
(2)    Amount includes amortization expense of purchased intangible assets in operating expenses and in costs of revenues.
Net revenues by geographic region [Text Block] 
The Company attributes revenues to geographic regions based on the customer's ship-to location. The following table presents net revenues by geographic region (in millions):
 
 
Years Ended December 31,
 
2010
 
2009
 
2008
Americas:
 
 
 
 
 
 
 
 
United States
$
1,890.1
 
 
$
1,515.1
 
 
$
1,537.5
 
Other
205.5
 
 
172.8
 
 
228.7
 
Total Americas
2,095.6
 
 
1,687.9
 
 
1,766.2
 
Europe, Middle East, and Africa
1,189.3
 
 
953.2
 
 
1,077.7
 
Asia Pacific
808.4
 
 
674.8
 
 
728.5
 
Total
$
4,093.3
 
 
$
3,315.9
 
 
$
3,572.4
 
 
Note 14 - Income Taxes Level 3 (Tables)
Components of income (loss) [Text Block] 
The components of income before the provision for income taxes and noncontrolling interest are summarized as follows (in millions):
 
 
Years Ended December 31, 
 
2010
 
2009
 
2008
Domestic
$
370.6
 
 
$
50.1
 
 
$
363.7
 
Foreign
407.6
 
 
262.0
 
 
365.2
 
Total income before provision for income taxes and noncontrolling interest
$
778.2
 
 
$
312.1
 
 
$
728.9
 
Schedule of provision for income taxes [Text Block] 
The provision for income taxes is summarized as follows (in millions):
 
 
Years Ended December 31, 
 
2010
 
2009
 
2008
Current (benefit) provision:
 
 
 
 
 
 
 
 
Federal
$
(8.4
)
 
$
123.8
 
 
$
96.6
 
State
1.0
 
 
21.4
 
 
35.8
 
Foreign
44.2
 
 
43.5
 
 
39.3
 
Total current provision
36.8
 
 
188.7
 
 
171.7
 
Deferred expense (benefit):
 
 
 
 
 
Federal
57.5
 
 
(42.7
)
 
21.4
 
State
14.0
 
 
55.7
 
 
(4.4
)
Foreign
(7.5
)
 
(5.9
)
 
(2.7
)
Total deferred expense
64.0
 
 
7.1
 
 
14.3
 
Income tax benefits attributable to employee stock plan activity
58.0
 
 
1.0
 
 
31.2
 
Total provision for income taxes
$
158.8
 
 
$
196.8
 
 
$
217.2
 
Schedule of effective income tax rate reconciliation [Text Block] 
The provision for income taxes differs from the amount computed by applying the federal statutory rate to income before provision for income taxes as follows (in millions):
 
 
Years Ended December 31, 
 
2010
 
2009
 
2008
Expected provision at 35% rate
$
272.4
 
 
$
109.2
 
 
$
255.1
 
State taxes, net of federal benefit
6.2
 
 
(1.6
)
 
16.6
 
Foreign income at different tax rates
(71.5
)
 
(33.8
)
 
(51.2
)
R&D credits
(18.6
)
 
(14.4
)
 
(12.1
)
Stock-based compensation
(40.2
)
 
62.1
 
 
2.4
 
Temporary differences not currently benefited
10.2
 
 
72.8
 
 
—
 
Other
0.3
 
 
2.5
 
 
6.4
 
Total provision for income taxes
$
158.8
 
 
$
196.8
 
 
$
217.2
 
 
Schedule of deferred tax assets and liabilities [Text Block] 
Significant components of the Company's deferred tax assets and liabilities are as follows (in millions):
 
As of December 31, 
 
2010
 
2009
Deferred tax assets:
 
 
 
 
 
Net operating loss carry-forwards
$
14.1
 
 
$
6.2
 
Foreign tax credit carry-forwards
40.3
 
 
34.1
 
Research and other credit carry-forwards
68.2
 
 
66.0
 
Deferred revenue
86.1
 
 
66.3
 
Stock-based compensation
75.6
 
 
68.3
 
Reserves and accruals not currently deductible
227.6
 
 
264.5
 
Other
26.8
 
 
25.8
 
Total deferred tax assets
538.7
 
 
531.2
 
Valuation allowance
(122.2
)
 
(112.8
)
Deferred tax assets, net of valuation allowance
416.5
 
 
418.4
 
Deferred tax liabilities:
 
 
 
Property and equipment basis differences
(47.1
)
 
(25.1
)
Purchased intangibles
(58.5
)
 
(37.8
)
Unremitted foreign earnings
(175.1
)
 
(148.3
)
Other
(0.1
)
 
(0.3
)
Total deferred tax liabilities
(280.8
)
 
(211.5
)
Net deferred tax assets
$
135.7
 
 
$
206.9
 
 
Schedule of gross unrecognized tax benefits [Text Block] 
A reconciliation of the beginning and ending amount of the Company's total gross unrecognized tax benefits for the years ended December 31, 2010, 2009, and 2008 is as follows (in millions):
 
 
2010
 
2009
 
2008
Balance beginning of the year
$
183.6
 
 
$
113.5
 
 
$
94.7
 
Tax positions related to current year:
 
 
 
 
 
Additions
13.9
 
 
12.7
 
 
17.9
 
Tax positions related to prior years:
 
 
 
 
 
Additions
—
 
 
73.5
 
 
1.3
 
Reductions
(73.8
)
 
(1.0
)
 
—
 
Settlements
(1.6
)
 
(12.8
)
 
(0.4
)
Lapses in statutes of limitations
(5.7
)
 
(2.3
)
 
—
 
Balance end of the year
$
116.4
 
 
$
183.6
 
 
$
113.5
 
 
Note 15 - Commitments and Contingencies Level 3 (Tables)
Summary of principal contractual obligations [Text Block]
The following table summarizes the Company's principal contractual obligations as of December 31, 2010, (in millions):
 
 
Total
 
2011
 
2012
 
2013
 
2014
 
2015
 
Thereafter
 
Other
Operating leases
$
296.3
 
 
$
51.1
 
 
$
45.4
 
 
$
35.1
 
 
$
29.8
 
 
$
23.1
 
 
$
111.8
 
 
$
—
 
Purchase commitments
198.6
 
 
198.6
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Tax liabilities
103.9
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
103.9
 
Other contractual obligations
95.1
 
 
65.8
 
 
18.0
 
 
9.5
 
 
1.8
 
 
—
 
 
—
 
 
—
 
Total
$
693.9
 
 
$
315.5
 
 
$
63.4
 
 
$
44.6
 
 
$
31.6
 
 
$
23.1
 
 
$
111.8
 
 
$
103.9
 
Note 17 - Selected Quarterly Financial Data Level 3 (Tables)
Selected Quarterly Financial Data [Text Block]
The table below sets forth selected unaudited financial data for each quarter of the two years ended December 31, 2010 (in millions, except per share amounts):
 
 
Year Ended December 31, 2010
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
$
721.2
 
 
$
774.1
 
 
$
801.2
 
 
$
962.2
 
Service
191.4
 
 
204.2
 
 
211.2
 
 
227.8
 
Total net revenues
912.6
 
 
978.3
 
 
1,012.4
 
 
1,190.0
 
Cost of revenues:
 
 
 
 
 
 
 
Product
222.4
 
 
231.8
 
 
247.0
 
 
299.7
 
Service
78.2
 
 
86.6
 
 
87.6
 
 
98.3
 
Total cost of revenues
300.6
 
 
318.4
 
 
334.6
 
 
398.0
 
Gross margin
612.0
 
 
659.9
 
 
677.8
 
 
792.0
 
Operating expenses:
 
 
 
 
 
 
 
Research and development
207.0
 
 
224.8
 
 
231.2
 
 
254.9
 
Sales and marketing
192.4
 
 
202.3
 
 
204.7
 
 
257.7
 
General and administrative
43.1
 
 
45.9
 
 
43.8
 
 
45.1
 
Amortization of purchased intangibles
1.1
 
 
1.2
 
 
0.9
 
 
0.9
 
Restructuring charges
8.1
 
 
0.2
 
 
0.2
 
 
2.3
 
Acquisition-related charges
—
 
 
0.5
 
 
1.5
 
 
4.3
 
Total operating expenses
451.7
 
 
474.9
 
 
482.3
 
 
565.2
 
Operating income
160.3
 
 
185.0
 
 
195.5
 
 
226.8
 
Interest and other income (expense), net
1.4
 
 
0.8
 
 
0.2
 
 
(0.6
)
Loss on equity investments
—
 
 
3.2
 
 
—
 
 
5.4
 
Income before income taxes and noncontrolling interest
161.7
 
 
189.0
 
 
195.7
 
 
231.6
 
Income tax (benefit) provision
(2.9
)
 
58.7
 
 
61.4
 
 
41.5
 
Consolidated net income
164.6
 
 
130.3
 
 
134.3
 
 
190.1
 
Adjust for net (income) loss attributable to noncontrolling interest
(1.5
)
 
0.2
 
 
0.2
 
 
0.1
 
Net income attributable to Juniper Networks
$
163.1
 
 
$
130.5
 
 
$
134.5
 
 
$
190.2
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
Basic
$
0.31
 
 
$
0.25
 
 
$
0.26
 
 
$
0.36
 
Diluted
$
0.30
 
 
$
0.24
 
 
$
0.25
 
 
$
0.35
 
 
 
 
Year Ended December 31, 2009
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
$
587.8
 
 
$
607.0
 
 
$
634.1
 
 
$
739.1
 
Service
176.3
 
 
179.4
 
 
189.8
 
 
202.4
 
Total net revenues
764.1
 
 
786.4
 
 
823.9
 
 
941.5
 
Cost of revenues:
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues - Product
193.0
 
 
207.6
 
 
206.3
 
 
234.8
 
Cost of revenues - Service
68.8
 
 
72.4
 
 
74.3
 
 
75.5
 
Total cost of revenues
261.8
 
 
280.0
 
 
280.6
 
 
310.3
 
Gross margin
502.3
 
 
506.4
 
 
543.3
 
 
631.2
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Research and development
185.4
 
 
183.9
 
 
185.2
 
 
187.2
 
Sales and marketing
187.9
 
 
176.6
 
 
183.4
 
 
211.3
 
General and administrative
39.2
 
 
39.2
 
 
39.9
 
 
41.2
 
Amortization of purchased intangibles
4.4
 
 
3.5
 
 
1.3
 
 
1.2
 
Litigation settlement charges
—
 
 
—
 
 
1.0
 
 
181.3
 
Restructuring charges
4.2
 
 
7.5
 
 
4.5
 
 
3.2
 
Total operating expenses
421.1
 
 
410.7
 
 
415.3
 
 
625.4
 
Operating income
81.2
 
 
95.7
 
 
128.0
 
 
5.8
 
Interest and other income, net
2.0
 
 
2.9
 
 
1.7
 
 
0.3
 
Gain on equity investments
(1.7
)
 
(1.6
)
 
—
 
 
(2.2
)
Income before income taxes and noncontrolling interest
81.5
 
 
97.0
 
 
129.7
 
 
3.9
 
Income tax provision (benefit)
85.9
 
 
82.2
 
 
45.9
 
 
(17.2
)
Consolidated net (loss) income
(4.4
)
 
14.8
 
 
83.8
 
 
21.1
 
Adjust for net loss attributable to noncontrolling interest
—
 
 
—
 
 
—
 
 
1.8
 
Net (loss) income attributable to Juniper Networks
$
(4.4
)
 
$
14.8
 
 
$
83.8
 
 
$
22.9
 
Net (loss) income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.01
)
 
$
0.03
 
 
$
0.16
 
 
$
0.04
 
Diluted
$
(0.01
)
 
$
0.03
 
 
$
0.16
 
 
$
0.04
 
Valuation and Qualifying Accounts Level 3 (Tables)
Movement in valuation allowances rollforward [Text Block]
 
Balance at Beginning of Year
 
Charged to (Reversed from) Costs and Expenses
 
Recoveries (Deductions), Net
 
Balance at End of Year
 
(In millions)
Year ended December 31, 2010
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
9.1
 
 
$
1.2
 
 
$
(0.2
)
 
$
10.1
 
Sales returns reserve
$
45.6
 
 
$
104.4
 
 
$
(97.2
)
 
$
52.8
 
Year ended December 31, 2009
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
9.7
 
 
$
(0.6
)
 
$
—
 
 
$
9.1
 
Sales returns reserve
$
36.8
 
 
$
84.1
 
 
$
(75.3
)
 
$
45.6
 
Year ended December 31, 2008
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
8.3
 
 
$
1.7
 
 
$
(0.3
)
 
$
9.7
 
Sales returns reserve
$
25.1
 
 
$
89.0
 
 
$
(77.3
)
 
$
36.8
 
Note 1 - Basis of Presentation Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2009
2008
Reclassified sales and marketing expense
$ 25 
$ 29 
Note 2 - Summary of Significant Accounting Policies Level 4 (Details) (USD $)
In Millions, unless otherwise specified
Year Ended
Dec. 31,
2010
2009
2008
Customers accounting for 10% or more of Company's net revenues
 
 
0 
Leasehold improvement depreciation, life, maximum (in years)
10 
 
 
Property, plant and equipment, useful life, minimum (in years)
1.5 
 
 
Property, plant and equipment, useful life, maximum (in years)
5 
 
 
Finite-lived intangible assets, useful life, minimum (in years)
2 
 
 
Finite-lived intangible assets, useful life, maximum (in years)
19 
 
 
Increase in revenue due to adoption of new revenue recognition policy
237 
 
 
Undelivered product commitments which the Company was unable to demostrate fair value pursuant to the previous revenue accounting standards
183 
 
 
General contractual support period for maintenance service contracts
one to three years 
 
 
General contractual period for training and professional services
one year or less 
 
 
Warranty period, hardware (in years)
1 
 
 
Warranty period, software (in days)
90 
 
 
Advertising expense
17 
11 
5 
Maturity period of non-designated hedges derivatives
approximately two months 
 
 
Maturities of cash flow hedge derivatives
less than one year 
 
 
Derivative instrument ineffectiveness
immaterial 
immaterial 
immaterial 
Foreign currency translation gain (loss)
0 
0 
0 
Effect of exchange rate on cash and cash equivalents
$ 0 
$ 0 
$ 0 
Land Improvements [Member]
 
 
 
Finite-lived intangible assets, useful life, minimum (in years)
10 
 
 
Finite-lived intangible assets, useful life, maximum (in years)
15 
 
 
Entity-Wide Revenue Major Customer Verizon [Member]
 
 
 
Major customers revenues as a percentage of net revenues
0.106 
 
 
Entity-Wide Revenue Major Customer AT&T [Member]
 
 
 
Major customers revenues as a percentage of net revenues
 
0.104 
 
Note 3 - Business Combination Purchase Consideration Level 4 (Details) (USD $)
In Millions
Dec. 31, 2010
Total consideration [Abstract]
 
Net cash
$ 392 
Assumed stock option and RSU awards allocated to purchase price
2 1
Total
395 
Business Acquisition Acquired Entity Ankeena [Member]
 
Total consideration [Abstract]
 
Net cash
67 
Assumed stock option and RSU awards allocated to purchase price
2 1
Total
69 
Business Acquisition Acquired Entity SMobile [Member]
 
Total consideration [Abstract]
 
Net cash
70 
Assumed stock option and RSU awards allocated to purchase price
0 1
Total
70 
Business Acquisition Acquired Entity Altor [Member]
 
Total consideration [Abstract]
 
Net cash
104 
Assumed stock option and RSU awards allocated to purchase price
0 1
Total
104 
Business Acquisition Acquired Entity Trapeze [Member]
 
Total consideration [Abstract]
 
Net cash
152 
Assumed stock option and RSU awards allocated to purchase price
0 1
Total
$ 152 
Note 3.2 - Business Combination, Purchase Price Allocation Level 4 (Details) (USD $)
In Millions
Dec. 31, 2010
Business Acquisition [Line Items]
 
Net assets acquired (liabilities assumed)
$ 9 
Intangible assets acquired
117 
Goodwill
269 
Total
395 
Business Acquisition Acquired Entity Ankeena [Member]
 
Business Acquisition [Line Items]
 
Net assets acquired (liabilities assumed)
4 
Intangible assets acquired
12 
Total
69 
Business Acquisition Acquired Entity Ankeena [Member] | Infrastructure Segment [Member]
 
Business Acquisition [Line Items]
 
Goodwill
53 
Business Acquisition Acquired Entity SMobile [Member]
 
Business Acquisition [Line Items]
 
Net assets acquired (liabilities assumed)
(5)
Intangible assets acquired
27 
Total
70 
Business Acquisition Acquired Entity SMobile [Member] | Service Layer Technologies Segment [Member]
 
Business Acquisition [Line Items]
 
Goodwill
48 
Business Acquisition Acquired Entity Altor [Member]
 
Business Acquisition [Line Items]
 
Net assets acquired (liabilities assumed)
5 
Intangible assets acquired
21 
Total
104 
Business Acquisition Acquired Entity Altor [Member] | Service Layer Technologies Segment [Member]
 
Business Acquisition [Line Items]
 
Goodwill
78 
Business Acquisition Acquired Entity Trapeze [Member]
 
Business Acquisition [Line Items]
 
Net assets acquired (liabilities assumed)
6 
Intangible assets acquired
56 
Total
152 
Business Acquisition Acquired Entity Trapeze [Member] | Infrastructure Segment [Member]
 
Business Acquisition [Line Items]
 
Goodwill
$ 90 
Note 3.3 - Business Combination, Intangible Assets Acquired Level 4 (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2010
Business Acquisition [Line Items]
 
Intangible assets acquired
$ 117 
Business Acquisition Acquired Entity Ankeena [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
12 
Business Acquisition Acquired Entity Ankeena [Member] | Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
5 
Intangible assets acquired, weighted average useful life (in years)
4 
Business Acquisition Acquired Entity Ankeena [Member] | In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
4 
Intangible assets acquired, weighted average useful life (in years)
4 
Business Acquisition Acquired Entity Ankeena [Member] | Core Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
3 
Intangible assets acquired, weighted average useful life (in years)
4 
Business Acquisition Acquired Entity Ankeena [Member] | Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Ankeena [Member] | Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Ankeena [Member] | Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Ankeena [Member] | OEM customer contract [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity SMobile [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
27 
Business Acquisition Acquired Entity SMobile [Member] | Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
24 
Intangible assets acquired, weighted average useful life (in years)
5 
Business Acquisition Acquired Entity SMobile [Member] | In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity SMobile [Member] | Core Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity SMobile [Member] | Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
2 
Intangible assets acquired, weighted average useful life (in years)
6 
Business Acquisition Acquired Entity SMobile [Member] | Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
6 
Business Acquisition Acquired Entity SMobile [Member] | Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
2 
Business Acquisition Acquired Entity SMobile [Member] | OEM customer contract [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Altor [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
21 
Business Acquisition Acquired Entity Altor [Member] | Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
9 
Intangible assets acquired, weighted average useful life (in years)
6 
Business Acquisition Acquired Entity Altor [Member] | In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
8 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Altor [Member] | Core Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
5 
Intangible assets acquired, weighted average useful life (in years)
6 
Business Acquisition Acquired Entity Altor [Member] | Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Altor [Member] | Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Altor [Member] | Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Altor [Member] | OEM customer contract [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Trapeze [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
56 
Business Acquisition Acquired Entity Trapeze [Member] | Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
45 
Intangible assets acquired, weighted average useful life (in years)
5 
Business Acquisition Acquired Entity Trapeze [Member] | In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Trapeze [Member] | Core Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Trapeze [Member] | Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
9 
Intangible assets acquired, weighted average useful life (in years)
7 
Business Acquisition Acquired Entity Trapeze [Member] | Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
3 
Intangible assets acquired, weighted average useful life (in years)
7 
Business Acquisition Acquired Entity Trapeze [Member] | Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
0 
Business Acquisition Acquired Entity Trapeze [Member] | OEM customer contract [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
Intangible assets acquired, weighted average useful life (in years)
2 
Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
83 
In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
12 
Core Technology [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
8 
Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
11 
Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
3 
Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
0 
OEM customer contract [Member]
 
Business Acquisition [Line Items]
 
Intangible assets acquired
$ 0 
Note 3.4 - Business Combination, Textuals Level 4 (Details) (USD $)
3 Months Ended
Dec. 31, 2010
Year Ended
Dec. 31, 2010
Business Acquisition [Line Items]
 
 
Assumed net assets or liabilities in connection with the acquisition
$ 8,800,000 
$ 8,800,000 
Assumed goodwill in connection with the acquisition
269,200,000 
269,200,000 
Gain (loss) on equity investments
5,400,000 
8,653,000 
Business Combination, Pro Forma Information, Disclosure Impracticable
 
0 
Acquisition-related charges
4,300,000 
6,342,000 
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount
0 
0 
Acquired Indefinite-lived Intangible Asset, Amount
7,900,000 
7,900,000 
Business Acquisition Acquired Entity Ankeena [Member]
 
 
Business Acquisition [Line Items]
 
 
Acquisition date
 
April 19, 2010 
Percentage acquisition of the equity securities of acquiree
 
1 
Assumed net assets or liabilities in connection with the acquisition
 
3,600,000 
Assumed cash and cash equivalents in connection with the acquisition
 
2,300,000 
Minority equity investment prior to acquisition
 
2,000,000 
Percentage ownership interest in equity investment prior to acquisition
 
0.077 
Fair value of equity method investment
 
5,200,000 
Gain (loss) on equity investments
 
3,200,000 
Business Acquisition Acquired Entity Ankeena [Member] | Infrastructure Segment [Member]
 
 
Business Acquisition [Line Items]
 
 
Assumed goodwill in connection with the acquisition
53,100,000 
 
Business Acquisition Acquired Entity SMobile [Member]
 
 
Business Acquisition [Line Items]
 
 
Acquisition date
 
July 30, 2010 
Percentage acquisition of the equity securities of acquiree
 
1 
Assumed net assets or liabilities in connection with the acquisition
 
(5,200,000)
Assumed cash and cash equivalents in connection with the acquisition
 
400,000 
Business Acquisition Acquired Entity SMobile [Member] | Service Layer Technologies Segment [Member]
 
 
Business Acquisition [Line Items]
 
 
Assumed goodwill in connection with the acquisition
48,100,000 
 
Business Acquisition Acquired Entity Altor [Member]
 
 
Business Acquisition [Line Items]
 
 
Acquisition date
 
December 6, 2010 
Percentage acquisition of the equity securities of acquiree
 
1 
Assumed net assets or liabilities in connection with the acquisition
 
4,500,000 
Assumed cash and cash equivalents in connection with the acquisition
 
6,400,000 
Minority equity investment prior to acquisition
 
2,000,000 
Percentage ownership interest in equity investment prior to acquisition
 
0.05 
Fair value of equity method investment
 
4,100,000 
Gain (loss) on equity investments
 
2,100,000 
Acquired Indefinite-lived Intangible Asset, Amount
 
7,900,000 
Estimated Future Cost To Complete IPRD Projects
 
1,800,000 
Business Acquisition Acquired Entity Altor [Member] | Service Layer Technologies Segment [Member]
 
 
Business Acquisition [Line Items]
 
 
Assumed goodwill in connection with the acquisition
78,200,000 
 
Business Acquisition Acquired Entity Trapeze [Member]
 
 
Business Acquisition [Line Items]
 
 
Acquisition date
 
December 16, 2010 
Percentage acquisition of the equity securities of acquiree
 
1 
Assumed net assets or liabilities in connection with the acquisition
 
5,900,000 
Assumed cash and cash equivalents in connection with the acquisition
 
800,000 
Business Acquisition Acquired Entity Trapeze [Member] | Infrastructure Segment [Member]
 
 
Business Acquisition [Line Items]
 
 
Assumed goodwill in connection with the acquisition
89,800,000 
 
Note 4 - Net Income per Share Level 4 (Details) (USD $)
In Thousands, except Share data
Year Ended
Dec. 31,
2010
2009
2008
Numerator:
 
 
 
Net income attributable to Juniper Networks
$ 618,402 
$ 116,999 
$ 511,749 
Denominator:
 
 
 
Weighted-average shares used to compute basic net income per share
522,444,000 
523,603,000 
530,337,000 
Effect of dilutive securities:
 
 
 
Shares issuable upon conversion of the Senior Notes
0 
0 
8,829,000 
Employee stock awards
16,356,000 
10,412,000 
12,267,000 
Weighted-average shares used to compute diluted net income per share
538,790,000 
534,015,000 
551,433,000 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
Basic
1.18 
0.22 
0.96 
Diluted
$ 1.15 
$ 0.22 
$ 0.93 
Net Income per share textuals
 
 
 
Anti-dilutive shares excluded from computation of diluted earnings per share
14,000,000 
38,900,000 
 
Note 5 - Cash, Cash Equivalents and Investments Level 4 (Details) (USD $)
In Thousands
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Dec. 31, 2007
Cash and cash equivalents
$ 1,811,887 
$ 1,604,723 
$ 2,019,084 
$ 1,716,110 
Cash [Member]
 
 
 
 
Cash and cash equivalents
686,300 
555,100 
 
 
Demand Deposits [Member]
 
 
 
 
Cash and cash equivalents
413,000 
427,200 
 
 
Bank Time Deposits [Member]
 
 
 
 
Cash and cash equivalents
273,300 
127,900 
 
 
Cash Equivalents [Member]
 
 
 
 
Cash and cash equivalents
1,125,600 
1,049,600 
 
 
US Treasury Securities [Member]
 
 
 
 
Cash and cash equivalents
76,700 
0 
 
 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
 
 
Cash and cash equivalents
5,000 
0 
 
 
Commercial Paper [Member]
 
 
 
 
Cash and cash equivalents
4,000 
17,000 
 
 
Money Market Funds [Member]
 
 
 
 
Cash and cash equivalents
1,039,900 
1,032,600 
 
 
Note 5.2 - Cash, Cash Equivalents, and Investments - Available for Sale Securities Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
$ 999 
$ 1,047 
Available-for-sale securities, gross unrealized gains
3 
3 
Available-for-sale securities, gross unrealized losses
(1)
(1)
Available-for-sale securities, estimated fair value
1,002 
1,049 
Trading securities:
 
 
Trading securities, amortized cost
8 
5 
Trading securities, gross unrealized gains
0 
0 
Trading securities, gross unrealized losses
0 
0 
Trading securities, estimated fair value
8 
5 
Available-for-sale and trading securities
 
 
Total investments, amortized cost
1,007 
1,052 
Total investments, gross unrealized gains
3 
3 
Total investments, gross unrealized losses
(1)
(1)
Total investments, estimated fair value
1,010 
1,054 
Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
999 
1,042 
Available-for-sale securities, gross unrealized gains
3 
3 
Available-for-sale securities, gross unrealized losses
(1)
(1)
Available-for-sale securities, estimated fair value
1,002 
1,044 
US Government Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
158 
245 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
0 
0 
Available-for-sale securities, estimated fair value
158 
245 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
214 
212 
Available-for-sale securities, gross unrealized gains
0 
1 
Available-for-sale securities, gross unrealized losses
(0)
(0)
Available-for-sale securities, estimated fair value
214 
212 
Foreign Government Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
47 
96 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
0 
(0)
Available-for-sale securities, estimated fair value
47 
97 
Certificates of Deposit [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
21 
 
Available-for-sale securities, gross unrealized gains
0 
 
Available-for-sale securities, gross unrealized losses
0 
 
Available-for-sale securities, estimated fair value
21 
 
Commercial Paper [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
10 
 
Available-for-sale securities, gross unrealized gains
0 
 
Available-for-sale securities, gross unrealized losses
0 
 
Available-for-sale securities, estimated fair value
10 
 
Asset-backed Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
90 
 
Available-for-sale securities, gross unrealized gains
0 
 
Available-for-sale securities, gross unrealized losses
(0)
 
Available-for-sale securities, estimated fair value
90 
 
Corporate Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
460 
488 
Available-for-sale securities, gross unrealized gains
2 
2 
Available-for-sale securities, gross unrealized losses
(0)
(0)
Available-for-sale securities, estimated fair value
462 
490 
Equity Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
 
5 
Available-for-sale securities, gross unrealized gains
 
0 
Available-for-sale securities, gross unrealized losses
 
0 
Available-for-sale securities, estimated fair value
 
5 
Short-term Investments [Member]
 
 
Available-for-sale and trading securities
 
 
Total investments, amortized cost
474 
570 
Total investments, gross unrealized gains
1 
1 
Total investments, gross unrealized losses
0 
0 
Total investments, estimated fair value
475 
571 
Other Long-term Investments [Member]
 
 
Available-for-sale and trading securities
 
 
Total investments, amortized cost
534 
482 
Total investments, gross unrealized gains
2 
2 
Total investments, gross unrealized losses
(1)
(1)
Total investments, estimated fair value
$ 535 
$ 484 
Note 5.3 - Cash, Cash Equivalents, and Investments - Maturities of Available for Sale Investments Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Available-for-sale and trading securities
 
 
Amortized cost due within one year
$ 466 
$ 559 
Gross unrealized gains due within one year
1 
1 
Gross unrealized losses due within one year
0 
0 
Estimated fair value due within one year
466 
560 
Amortized cost due between one and five years
534 
482 
Gross unrealized gains due between one and five years
2 
2 
Gross unrealized losses due between one and five years
(1)
(1)
Estimated fair value due between one and five year
535 
484 
Amortized cost, no contractual maturity
8 
10 
Gross unrealized gains, no contractual maturity
0 
0 
Gross unrealized losses, no contractual maturity
0 
0 
Estimated fair value, no contractual maturity
8 
10 
Total investments, amortized cost
1,007 
1,052 
Total investments, gross unrealized gains
3 
3 
Total investments, gross unrealized losses
(1)
(1)
Total investments, estimated fair value
$ 1,010 
$ 1,054 
Note 5.4 - Cash, Cash Equivalents, and Investments - Unrealized Loss for Trading and Available for Sale Investments Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
$ 222 
$ 323 
Unrealized loss, less than 12 months
(1)
1 
Fair value, 12 months or greater
35 
 
Unrealized loss, 12 months or greater
0 
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
257 
323 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(1)
1 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
58 
39 
Unrealized loss, less than 12 months
(0)
(0)
Fair value, 12 months or greater
0 
 
Unrealized loss, 12 months or greater
0 
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
58 
39 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0)
(0)
Foreign Government Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
0 1
 
Unrealized loss, less than 12 months
0 1
 
Fair value, 12 months or greater
6 1
 
Unrealized loss, 12 months or greater
0 1
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
6 1
 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
0 1
 
Commercial Paper [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
5 
 
Unrealized loss, less than 12 months
0 
 
Fair value, 12 months or greater
0 
 
Unrealized loss, 12 months or greater
0 
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
5 
 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
0 
 
Asset-backed Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
55 
 
Unrealized loss, less than 12 months
(0)
 
Fair value, 12 months or greater
0 
 
Unrealized loss, 12 months or greater
0 
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
55 
 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0)
 
Corporate Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
104 1
158 
Unrealized loss, less than 12 months
(0)1
(0)
Fair value, 12 months or greater
29 1
 
Unrealized loss, 12 months or greater
0 1
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
133 1
158 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0)1
(0)
Other Aggregated Investments [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
126 2
Unrealized loss, less than 12 months
 
(0)2
Total fair value, Available-for-sale investments in continuous unrealized loss position
 
126 2
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
 
(0)2
Note 5.5 - Cash, Cash Equivalents, and Investments - Restricted Cash Level 4 (Details) (USD $)
Dec. 31, 2010
Dec. 31, 2009
Restricted Cash and Investments [Abstract]
 
 
Total restricted cash and investments
$ 119,346,000 
$ 53,732,000 
Restricted Cash [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted cash
1,700,000 
3,800,000 
Demand Deposits [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted cash
1,700,000 
3,800,000 
Restricted Investments [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
117,600,000 
49,900,000 
US Government Debt Securities [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
600,000 
19,800,000 
Corporate Debt Securities [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
2,700,000 
0 
Money Market Funds [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
$ 114,300,000 
$ 30,100,000 
Note 5.6 - Cash, Cash Equivalents, and Investments - Textuals Level 4 (Details)
3 Months Ended
Dec. 31,		 Year Ended
Dec. 31,
2010
2009
2010
2009
2008
Apr. 08, 2010
Investment in publicly-held company
 
 
0 
 
 
 
Marketable Securities, Realized Gain (Loss)
 
 
0 
0 
0 
 
Proceeds from Sale and Maturity of Marketable Securities
 
 
1,624,400,000 
683,800,000 
499,400,000 
 
Total investments In unrealized loss position
73 
52 
73 
52 
 
 
Cash payment from acquisition by third-party
 
 
 
300,000 
2,100,000 
 
Investment in privately-held companies
 
 
13,300,000 
7,200,000 
4,600,000 
 
Gain (loss) on equity investments
5,400,000 
(2,200,000)
8,653,000 
(5,562,000)
(14,832,000)
 
Cash received for privately-held investment acquired by publicly traded company
 
 
 
1,000,000 
 
 
Common stock received for privately-held investment acquired by publicly traded company
 
 
 
1,000,000 
 
 
Increase in restricted cash
 
 
261,900,000 
11,300,000 
 
 
Restricted cash distribution for settlement of acquisition
 
 
196,500,000 
1,000,000 
 
 
Agreed total payable amount representing the cash value of unvested restricted shares in Ankeena
6,100,000 
 
6,100,000 
 
 
10,700,000 
Vesting period for restricted shares (in years)
2 
 
2 
 
 
 
Unrealized Gains On Restricted Investments
0 
0 
0 
0 
 
 
Unrealized Losses On Restricted Investments
0 
0 
0 
0 
 
 
Business Acquisition Acquired Entity Ankeena [Member]
 
 
 
 
 
 
Gain (loss) on equity investments
 
 
3,200,000 
 
 
 
Business Acquisition Acquired Entity Altor [Member]
 
 
 
 
 
 
Gain (loss) on equity investments
 
 
2,100,000 
 
 
 
Equity Method Investee, Privately Held Companies [Member]
 
 
 
 
 
 
Minority equity investment
 
 
22,100,000 
13,900,000 
 
 
Loss due to impairment of privately held equity investments measured on a non-recurring basis
 
 
0 
5,500,000 
11,300,000 
 
Equity Method Investee, Publicly Held Companies [Member]
 
 
 
 
 
 
Marketable Securities, Realized Gain (Loss), Other than Temporary Impairments, Amount
 
 
0 
0 
3,500,000 
 
Note 6 - Fair Value Measurements Level 4 (Details)
In Millions
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Dec. 31, 2010
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets measured at fair value on a recurring basis
 
2,245 
1,442 
803 
0 
236 1
55 1
181 1
0 1
219 
209 
10 
0 
47 
21 
26 
0 
21 
0 
21 
0 
14 
0 
14 
0 
90 
0 
90 
0 
464 2
3 2
462 2
0 2
1,154 3
1,154 3
0 3
0 3
 
 
 
 
 
 
 
 
2,245 
1,442 
803 
0 
Trading securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total trading securities measured at fair value on a recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8 
8 
0 
0 
 
 
 
 
8 
8 
0 
0 
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets measured at fair value on a recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
0 
0 
0 
0 
0 
Total assets measured at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,253 
1,450 
804 
0 
Fair Value Measurements (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of restricted investments measured at fair value included in the balance of Government Securities
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of restricted investments measured at fair value included in the balance of Corporate Debt Securities
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of restricted investments measured at fair value included in the balance of Money Market Funds
114 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;"><font style="font-family:inherit;font-size:8pt;">Balance includes </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">$0.6 million</font><font style="font-family:inherit;font-size:8pt;"> of restricted investments measured at fair market value, related to an acquisition completed in 2005. For additional information regarding the Company's restricted investments, see Note 5, </font><font style="font-family:inherit;font-size:8pt;font-style:italic;">Cash, Cash Equivalents, and Investments</font><font style="font-family:inherit;font-size:8pt;">, under the heading &#8220;Restricted Cash.&#8221; Restricted investments are included in the restricted cash balance in the consolidated balance sheet.</font></div></td></tr></table></div>
Note 6.2 - Fair Value Measurements, Assets by Balance Sheet Grouping Level 4 (Details) (USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
$ 1,126 
$ 1,050 
Short-term investments measured at fair value
475 
571 
Long-term investments measured at fair value
535 
484 
Restricted cash measured at fair value
118 
50 
Prepaid expenses and other current assets measured at fair value
0 
0 
Total assets measured at fair value
2,253 
2,154 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
1,040 
1,033 
Short-term investments measured at fair value
151 
101 
Long-term investments measured at fair value
142 
181 
Restricted cash measured at fair value
117 
50 
Prepaid expenses and other current assets measured at fair value
0 
0 
Total assets measured at fair value
1,450 
1,365 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
86 
17 
Short-term investments measured at fair value
324 
469 
Long-term investments measured at fair value
393 
302 
Restricted cash measured at fair value
1 
0 
Prepaid expenses and other current assets measured at fair value
0 
0 
Total assets measured at fair value
804 
789 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
0 
0 
Short-term investments measured at fair value
0 
0 
Long-term investments measured at fair value
0 
0 
Restricted cash measured at fair value
0 
0 
Prepaid expenses and other current assets measured at fair value
0 
0 
Total assets measured at fair value
$ 0 
$ 0 
Note 6.3 - Fair Value Measurements, Liabilities Measured On A Recurring Basis Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Transfers between levels of fair value [Abstract]
 
 
Amount of significant transfers of assets and liabilities between levels of the fair value hierarchy
$ 0 
$ 0 
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Derivative liabilities measured at fair value on a recurring basis
3 
2 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Derivative liabilities measured at fair value on a recurring basis
$ 3 
$ 2 
Note 6.4 - Fair Value Measurement, Assets Measured On A Nonrecurring Basis Level 4 (Details) (USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Fair value, liabilities measured on nonrecurring basis
$ 0 
$ 0 
Note 7 - Goodwill and Purchased Intangible Assets Level 4 (Details) (USD $)
Year Ended
Dec. 31,
2010
2009
Goodwill [Roll Forward]
 
 
Gross Goodwill, beginning of period
$ 4,938,600,000 
$ 4,938,600,000 
Accumulated Impairment, beginning of period
(1,280,000,000)
(1,280,000,000)
Goodwill, beginning of period
3,658,602,000 
3,658,600,000 
Adjustment to goodwill
200,000 
 
Goodwill acquired
269,000,000 
 
Gross Goodwill, end of period
5,207,800,000 
4,938,600,000 
Accumulated Impairment, end of period
(1,280,000,000)
(1,280,000,000)
Goodwill, end of period
3,927,807,000 
3,658,602,000 
Goodwill
269,200,000 
 
Goodwill impairment loss
0 
0 
Business Acquisition Acquired Entity Ankeena [Member] | Infrastructure Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill
53,100,000 
 
Business Acquisition Acquired Entity SMobile [Member] | Service Layer Technologies Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill
48,100,000 
 
Business Acquisition Acquired Entity Altor [Member] | Service Layer Technologies Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill
78,200,000 
 
Business Acquisition Acquired Entity Trapeze [Member] | Infrastructure Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill
89,800,000 
 
Infrastructure Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Gross Goodwill, beginning of period
1,500,500,000 
1,500,500,000 
Accumulated Impairment, beginning of period
0 
0 
Goodwill, beginning of period
1,500,500,000 
1,500,500,000 
Adjustment to goodwill
0 
 
Goodwill acquired
142,900,000 
 
Gross Goodwill, end of period
1,643,400,000 
1,500,500,000 
Accumulated Impairment, end of period
0 
0 
Goodwill, end of period
1,643,400,000 
1,500,500,000 
Service Layer Technologies Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Gross Goodwill, beginning of period
3,438,100,000 
3,438,100,000 
Accumulated Impairment, beginning of period
(1,280,000,000)
(1,280,000,000)
Goodwill, beginning of period
2,158,100,000 
2,158,100,000 
Adjustment to goodwill
200,000 
 
Goodwill acquired
126,100,000 
 
Gross Goodwill, end of period
3,564,400,000 
3,438,100,000 
Accumulated Impairment, end of period
(1,280,000,000)
(1,280,000,000)
Goodwill, end of period
$ 2,284,400,000 
$ 2,158,100,000 
Note 7.2 - Goodwill and Purchased Intangible Assets, Purchased Intangible Assets by Class Level 4 (Details) (USD $)
Year Ended
Dec. 31,
2010
2009
Purchased Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
$ 448,903,000 
$ 448,934,000 
Finite-lived intangible assets, accumulated amortization
(443,600,000)
(435,100,000)
Acquired finite-lived intangible assets, amount
108,600,000 
0 
Finite-lived intangible assets, net
113,903,000 
13,834,000 
Indefinite-lived Intangible Assets
0 
 
Acquired Indefinite-lived Intangible Asset, Amount
7,900,000 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
7,900,000 
 
Intangible Assets Gross Excluding Goodwill
448,903,000 
 
Purchased Intangible Assets, Accumulated Amortization
(443,600,000)
 
Acquired Finite and Indefinite Lived intangible Assets, Amount
116,500,000 
 
Intangible Assets, Net (Excluding Goodwill)
121,803,000 
13,834,000 
Amortization Of Purchased Intangible Assets
8,618,000 1
15,428,000 1
Impairment of finite-lived intangible assets
0 
0 
Business Acquisition Acquired Entity Ankeena [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Acquired Finite and Indefinite Lived intangible Assets, Amount
12,200,000 
 
Business Acquisition Acquired Entity SMobile [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Acquired Finite and Indefinite Lived intangible Assets, Amount
26,600,000 
 
Business Acquisition Acquired Entity Altor [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Acquired Indefinite-lived Intangible Asset, Amount
7,900,000 
 
Acquired Finite and Indefinite Lived intangible Assets, Amount
21,300,000 
 
Business Acquisition Acquired Entity Trapeze [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Acquired Finite and Indefinite Lived intangible Assets, Amount
56,400,000 
 
Technologies and Patents [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
380,003,000 
380,034,000 
Finite-lived intangible assets, accumulated amortization
(381,400,000)
(376,000,000)
Acquired finite-lived intangible assets, amount
91,100,000 
0 
Finite-lived intangible assets, net
89,703,000 
4,034,000 
Other Intangible Assets [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
68,900,000 
68,900,000 
Finite-lived intangible assets, accumulated amortization
(62,200,000)
(59,100,000)
Acquired finite-lived intangible assets, amount
17,500,000 
0 
Finite-lived intangible assets, net
$ 24,200,000 
$ 9,800,000 
Note 7.3 - Goodwill and Purchased Intangible Assets, Estimated Future Amortization Expense Intangible Assets Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31, 2010
Finite-Lived Intangible Assets [Line Items]
 
2011
$ 23 
2012
23 
2013
22 
2014
20 
2015
17 
Thereafter
9 
Total
$ 114 
Note 8.1 - Other Financial Information, Property, Plant, and Equipment Level 4 (Details)
In Thousands
Year Ended
Dec. 31,
2010
2009
2008
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
1,065,408 
922,551 
 
Accumulated depreciation
(571,527)
(466,900)
 
Property and equipment, net
493,881 
455,651 
 
Depreciation expense
146,757 
132,974 
123,469 
Computer Equipment [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
530,145 
435,568 
 
Software [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
117,782 
104,980 
 
Leasehold Improvements [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
178,058 
158,804 
 
Furniture and Fixtures [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
24,935 
21,558 
 
Land and Land Improvements [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
214,488 
201,641 
 
Note 8.2 - Other Financial Information, Deferred Revenue Level 4 (Details) (USD $)
In Thousands
Dec. 31, 2010
Dec. 31, 2009
Deferred Revenue Reported As [Abstract]
 
 
Deferred revenue, current
$ 660,264 
$ 571,652 
Deferred revenue, noncurrent
224,165 
181,937 
Deferred revenue, total
884,429 
753,589 
Sales Revenue, Goods, Net [Member]
 
 
Deferred Product Revenue [Abstract]
 
 
Undelivered product commitments and other product deferrals
294,100 
254,700 
Distributor inventory and other sell-through items
143,400 
136,600 
Deferred gross product revenue
437,500 
391,300 
Deferred cost of product revenue
(148,800)
(150,000)
Deferred product revenue, net
288,700 
241,300 
Sales Revenue, Services, Net [Member]
 
 
Deferred Product Revenue [Abstract]
 
 
Deferred service revenue
$ 595,729 
$ 512,289 
Note 8.3 - Other Financial Information , Warranties Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
Beginning balance
$ 38 
$ 40 
Provisions made during the period, net
50 
47 
Change in estimate
(3)
(6)
Actual costs incurred during the period
(49)
(43)
Ending balance
$ 36 
$ 38 
Note 8.4 - Other Financial Information, Restructuring Level 4 (Details)
Year Ended
Dec. 31,
2010
2009
2008
Restructuring Reserve [Roll Forward]
 
 
 
Beginning Balance
9,400,000 
0 
 
Charges
10,805,000 
19,463,000 
0 
Cash payments
(8,000,000)
(8,300,000)
 
Adjustments
(4,300,000)
(1,800,000)
 
Ending Balance
7,900,000 
9,400,000 
0 
Facility Closing [Member]
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Beginning Balance
4,900,000 
0 
 
Charges
6,900,000 
7,200,000 
 
Cash payments
(2,500,000)
(800,000)
 
Adjustments
(1,600,000)
(1,500,000)
 
Ending Balance
7,700,000 
4,900,000 
 
SeveranceContractualCommitmentsAndOtherCharges [Member]
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Beginning Balance
4,500,000 
0 
 
Charges
3,900,000 
12,300,000 
 
Cash payments
(5,500,000)
(7,500,000)
 
Adjustments
(2,700,000)
(300,000)
 
Ending Balance
200,000 
4,500,000 
 
Note 8.5 - Other Financial Information, Interest and Other Income Net Level 4 (Details) (USD $)
In Thousands
Year Ended
Dec. 31,
2010
2009
2008
Component of Other Income, Nonoperating [Line Items]
 
 
 
Interest income and expense, net
$ 1,833 
$ 5,828 
$ 49,649 
Other income and expense, net
84 
1,100 
(900)
Total interest and other income, net
$ 1,917 
$ 6,928 
$ 48,749 
Note 9 - Financing Arrangements Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Financing Arrangements [Abstract]
 
 
Number of days due from receivable
30 
 
Sale of receivables
$ 638 
$ 450 
Proceeds from sale and collection of receivables
596 
426 
Receivables from sale of receivables
127 
90 
Cash received from financing provider that has not been recognized as revenue
$ 49 
$ 53 
Note 10 - Derivative Instruments Level 4 (Details) (USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Derivative [Line Items]
 
 
Cash flow hedges
$ 110 
$ 59 
Non-designated hedges
74 
55 
Total
$ 185 
$ 114 
Note 10.2 - Derivative Instruments, Balance Sheet Location Level 4 (Details) (Foreign Exchange Contract [Member], USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Foreign Exchange Contract [Member] | Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset Designated as Hedging Instrument, Fair Value
$ 0 
$ 0 
Foreign Exchange Contract [Member] | Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability Designated as Hedging Instrument, Fair Value
$ 3 
$ 2 
Note 10.3 - Derivative Instruments, Gain (Loss) Level 4 (Details)
In Millions
Year Ended
Dec. 31,
2010
2009
Derivative Instruments Textuals Abstract [Abstract]
 
 
Maturities of cash flow hedge derivatives
less than one year 
 
Reclassification time of other comprehensive income (loss) into income
within the next 12 months 
 
Ineffective portion of derivative instruments recognized in the statement of operations
immaterial 
immaterial 
Maturity period of non-designated hedges derivatives
approximately two months 
 
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Loss recognized in accumulated other comprehensive income, effective portion
3 
 
Gain recognized in accumulated other comprehensive income, effective portion
 
1 
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Operating Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Loss reclassified from accumulated other comprehensive income into Statements of Operations, effective portion
2 
 
Gain reclassified from accumulated other comprehensive income into Statements of Operations, effective portion
 
4 
Nondesignated [Member] | Foreign Exchange Contract [Member] | Interest And Other Income, Net [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative instruments not designated as hedging instruments, loss
0 
 
Derivative instruments not designated as hedging instruments, gain
 
5 
Note 11 - Equity Level 4 (Details) (USD $)
Year Ended
Dec. 31,
2010
2009
Stock repurchased and retired during period under repurchase plans, shares
19,700,000 
20,700,000 
Common stock repurchased and retired under stock repurchase programs, average purchase price
$ 28.67 
$ 21.91 
Stock repurchased and retired during period under repurchase plans, value
$ 563,500,000 
$ 453,500,000 
Common stock repurchased from employees in connection with net issuances, shares
100,000 
 
Repurchases related to net issuances, average purchase price
25.75 
 
Shares Related to net issuances, value
1,900,000 
 
Repurchase of Common Stock from Employees for Net Issuance of Shares
 
0 
Stock Repurchase Program 2008 [Member]
 
 
Common stock authorized for repurchase under the 2010 and 2008 Stock Repurchase Programs
1,000,000,000 
 
Stock repurchase program remaining authorized funds
0 
 
Stock Repurchase Program 2010 [Member]
 
 
Common stock authorized for repurchase under the 2010 and 2008 Stock Repurchase Programs
1,000,000,000 
 
Stock repurchase program remaining authorized funds
755,100,000 
 
Note 11.2 - Equity, Comprehensive Income Level 4 (Details) (USD $)
Year Ended
Dec. 31,
2010
2009
2008
Consolidated net income
$ 619,373,000 
$ 115,228,000 
$ 511,749,000 
Other comprehensive income, net of tax:
 
 
 
Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax
(317,000)
(2,757,000)
2,547,000 
Change in foreign currency translation adjustment, net tax of nil
499,000 
5,569,000 
(19,043,000)
Total other comprehensive income (loss), net of tax
182,000 
2,812,000 
(16,396,000)
Consolidated comprehensive income
619,555,000 
118,040,000 
495,253,000 
Adjust for comprehensive (income) loss attributable to noncontrolling interest
(1,000,000)
1,800,000 
0 
Comprehensive income attributable to Juniper Networks
618,555,000 
119,840,000 
495,253,000 
Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax
0 
0 
0 
Other Comprehensive Income, Foreign Currency Translation Adjustment, Tax
$ 0 
$ 0 
$ 0 
Note 12 - Employee Benefit Plans Level 4 (Details) (USD $)
Year Ended
Dec. 31,
2010
2009
2008
Share-Based Compensation Plans
 
 
 
Maximum Additional Shares Expire Unexercised, Under 1996 and 2000 Plan
75,000,000 
 
 
Additional Shares Reserved for Issuance, Under 2006 Plan
30,000,000 
 
 
Minimum RSU and PSA Vesting Period, Based on Continued Employment (in years)
3 
 
 
Nonemployee Director Stock Option Grants
50,000 
 
 
Number of Days Elapsed Since Receipt of Last Award
365 
 
 
Nonemployee Director RSU Annual Grant Value
125,000 
 
 
Six Month Average Daily Closing Price
6 
 
 
Number of Years Monthly Vesting Occurs for Director Option Grants
3 
 
 
RSU Vest Schedule Director
1 
 
 
Restricted Stock Outstanding Subject to Repurchase From Acquisitions
0 
0 
0 
Restricted Stock From Acquisitions Repurchased During the Year
0 
0 
0 
Awards Granted, Number of Shares
(16,400,000)1
 
 
Number of Shares Available for Future Issuance, Under 2006 Plan
30,700,000 
18,000,000 
 
Number of Shares in Outstanding Equity Awards, Under 2006 Plan
49,400,000 
67,400,000 
73,600,000 
Outstanding Stock Options and RSU's Covering Shares of Common Stock
2,100,000 
 
 
Stock Option Activities
 
 
 
Beginning Balance, Number of Shares
67,400,000 
73,600,000 
66,900,000 
Beginning Balance, Weighted Average Exercise Price
$ 20.84 
$ 21.24 
$ 20.36 
Options Granted, Number of Shares
6,200,000 
9,900,000 
15,700,000 
Options Granted, Weighted Average Exercise Price
29.15 
17.86 
23.08 
Options Assumed, Number of Shares
500,000 2
 
 
Options Assumed, Weighted Average Exercise Price
31.65 2
 
 
Options Canceled, Number of Shares
(2,300,000)
(2,300,000)
(2,400,000)
Options Canceled, Weighted Average Exercise Price
22.03 
21.57 
22.03 
Options Exercised, Number of Shares
(21,600,000)
(8,600,000)
(5,700,000)
Options Exercised, Weighted Average Exercise Price
18.99 
14.59 
14.49 
Options Expired, Number of Shares
(800,000)3
(5,200,000)
(900,000)
Options Expired, Weighted Average Exercise Price
61.48 
34.91 
28.75 
Ending Balance, Number of Shares
49,400,000 
67,400,000 
73,600,000 
Ending Balance, Weighted Average Exercise Price
21.90 
20.84 
21.24 
Weighted Average Remaining Contractual Term at Period End
4.1 
 
 
Aggregate Intrinsic Value at Period End
744,500,000 
 
 
Vested or Expected-to-Vest Options, Number of Shares at Period End
47,000,000 
 
 
Vested or Expected-to-Vest Options, Weighted Average Exercise Price at Period End
21.79 
 
 
Vested or Expected-to-Vest Options, Weighted Average Remaining Contractual Term at Period End
4.1 
 
 
Vested or Expected-to-Vest Options, Aggregate Intrinsic Value at Period End
713,900,000 
 
 
Exercisable Options, Number of Shares at Period End
32,100,000 
44,000,000 
 
Exercisable Options, Weighted Average Exercise Price at Period End
20.96 
20.91 
 
Exercisable Options, Weighted Average Remaining Contractual Term at Period End
3.5 
 
 
Exercisable Options, Aggregate Intrinsic Value at Period End
516,100,000 
 
 
Closing Stock Price At Plan Period End
36.92 
 
 
Intrinsic Value of Options Exercise, Pre-Tax
260,300,000 
83,600,000 
66,700,000 
Total Fair Value of Options Vested
$ 83,200,000 
$ 88,900,000 
$ 70,300,000 
Equity Incentive Plan 2006 [Member]
 
 
 
Share-Based Compensation Plans
 
 
 
Number of Shares in Authorized Share Reserve, Under 2006 Plan
64,500,000 
 
 
Additional Shares Reserved for Issuance, Under 2006 Plan
30,000,000 
 
 
Equity Incentive Plan 2000 [Member]
 
 
 
Share-Based Compensation Plans
 
 
 
Vesting Period 2000 Equity Plan
4 
 
 
Share-based compensation stock option contractual life from grant date, prior to 2006, in years
10 
 
 
Number of Shares in Authorized Share Reserve Under 2000 Plan
90,900,000 
 
 
Equity Incentive Plan 1996 [Member]
 
 
 
Share-Based Compensation Plans
 
 
 
Share-based compensation stock option contractual life from grant date, prior to 2006, in years
10 
 
 
Vesting Period 1996 Equity Plan
4 
 
 
Number of Shares in Authorized Share Reserve Under 1996 Plan
164,600,000 
 
 
Employee Stock Option [Member]
 
 
 
Share-Based Compensation Plans
 
 
 
Share-based compensation stock option contractual life from grant date since 2006, in years
7 
 
 
Vesting Period 2006 Equity Plan
4 
 
 
Restricted Stock Units and Performance Share Awards [Member]
 
 
 
Share-Based Compensation Plans
 
 
 
Minimum RSU and PSA Vesting Period, Based on Other Than Continuing Employment
1 
 
 
[1] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="padding-bottom:1px;font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;"><font style="font-family:inherit;font-size:8pt;">RSUs and PSAs with a per share or unit purchase price lower than </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">100%</font><font style="font-family:inherit;font-size:8pt;"> 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 </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">two and one-tenth</font><font style="font-family:inherit;font-size:8pt;"> 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.</font></div></td></tr></table></div>
Note 12.2 - Employee Benefit Plans, Options Outstanding Exercise Price Range Level 4 (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
Year Ended
Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
$ 0.33 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
115.48 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
49,400,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
4.1 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
21.90 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
32,100,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
20.96 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number
32,100,000 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price
20.96 
Exercise Price Range of Options Outstanding First Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
0.33 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
14.68 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
5,200,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
2.8 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
9.92 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
4,300,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
9.57 
Exercise Price Range of Options Outstanding Second Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
14.91 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
15.09 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
6,900,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
4.4 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
15.04 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
3,700,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
15.02 
Exercise Price Range of Options Outstanding Third Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
15.32 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
18.13 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
5,100,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
3.6 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
17.44 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
3,700,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
17.55 
Exercise Price Range of Options Outstanding Fourth Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
18.17 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
22.55 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
5,200,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
3.2 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
20.12 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
4,600,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
20.01 
Exercise Price Range of Options Outstanding Fith Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
22.59 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
24.14 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
6,000,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
4.1 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
23.56 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
5,900,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
23.57 
Exercise Price Range of Options Outstanding Sixth Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
24.25 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
25.20 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
5,000,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
4.4 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
25.02 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
2,800,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
24.99 
Exercise Price Range of Options Outstanding Seventh Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
25.25 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
26.90 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
5,200,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
4.8 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
26.40 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
2,800,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
26.29 
Exercise Price Range of Options Outstanding Eighth Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
26.97 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
29.89 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
7,100,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
5.2 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
28.57 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
2,100,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
28.17 
Exercise Price Range of Options Outstanding Ninth Level [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit
29.93 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
115.48 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options
3,700,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
4.5 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
33.94 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options
2,200,000 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
$ 34.76 
Note 12.3 - Employee Benefit Plans, Share Based Compensation, Equity Instruments Other Than Options Level 4 (Details)
Year Ended
Dec. 31,		 Year Ended
Dec. 31,
2010
2009
2008
Feb. 01, 2009
2010
2009
2008
2010
2009
2008
2010
Feb. 01, 2009
Dec. 31, 2010
May 01, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum RSU and PSA Vesting Period, Based on Continued Employment (in years)
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum RSU and PSA Vesting Period Based on Continued Employment
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted Stock Units And Performance Share Awards Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Number of Shares
9,100,000 
6,700,000 
6,300,000 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Weighted Average Grant-Date Fair Value
21.76 
24.59 
22.40 
 
 
 
 
 
 
 
 
 
 
 
Awards Granted, Number of Shares
16,400,000 1
 
 
 
4,000,000 
1,800,000 
1,500,000 
3,800,000 2
2,900,000 
1,500,000 
 
 
 
 
Awards Granted, Weighted Average Grant-Date Fair Value
 
 
 
 
30.19 
17.87 
23.51 
29.25 2
18.05 
25.61 
 
 
 
 
Awards Assumed, Number of Shares
 
 
 
 
500,000 3
 
 
 
 
 
 
 
 
 
Awards Assumed, Weighted Average Grant-Date Fair Value
 
 
 
 
32.09 3
 
 
 
 
 
 
 
 
 
Awards Vested, Number of Shares
 
 
 
 
(1,800,000)
(1,300,000)
(1,900,000)
(400,000)
(100,000)
 
 
 
 
 
Awards Vested, Weighted Average Grant-Date Fair Value
 
 
 
 
25.30 
21.05 
18.37 
20.64 
26.90 
 
 
 
 
 
Awards Canceled, Number of Shares
2,200,000 1
 
 
 
(600,000)
(700,000)
(600,000)
(400,000)
(200,000)
(100,000)
 
 
 
 
Awards Canceled, Weighted Average Grant-Date Fair Value
 
 
 
 
24.87 
24.67 
21.21 
22.57 
19.12 
25.16 
 
 
 
 
Ending Balance, Number of Shares
14,200,000 
9,100,000 
6,700,000 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance, Weighted Average Grant-Date Fair Value
25.94 
21.76 
24.59 
 
 
 
 
 
 
 
 
 
 
 
RSUs and PSAs, Weighted Average Remaining Contractual Term at Period End
1.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
RSUs and PSAs, Aggregate Intrinsic Value at Period End
522,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Number of Shares at Period End
12,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Weighted Average Grant-Date Fair Value at Period End
25.70 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Weighted Average Remaining Contractual Term at Period End
1.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Aggregate Intrinsic Value at Period End
448,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate Number Of Shares Subject to PSAs Granted
 
 
 
 
 
 
 
1,500,000 
 
 
 
 
 
 
Minimum shares to be Issued on achievement of performance goals in respect of PSAs
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
Maximum shares to be issued on achievement of performance goals in respect of PSAs
 
 
 
 
 
 
 
3,700,000 
 
 
 
 
 
 
Employee Stock Purchase Plans 2008 and 1999 [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Periodic Payroll Deductions of Base Compensation in Percent
 
 
 
 
 
 
 
 
 
 
0.1 
 
 
 
Maximum Purchase of Common Stock Shares
 
 
 
 
 
 
 
 
 
 
6,000 
 
 
 
Common Stock Purchase Period
 
 
 
 
 
 
 
 
 
 
12 
 
 
 
Maximum Purchase of Common Stock Value
 
 
 
 
 
 
 
 
 
 
25,000 
 
 
 
Stock Purchase Option Limit Duration
 
 
 
 
 
 
 
 
 
 
1 
 
 
 
Stock based compensation incremental Board approved offering period in months
 
 
 
 
 
 
 
 
 
 
6 
 
 
 
ESPP Discounted Purchase Price Percentage
 
 
 
 
 
 
 
 
 
 
0.85 
 
 
 
Number of Shares Reserved for Issuance 2008 ESPP Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000,000 
Issuance of shares in connection with Employee Stock Purchase Plan, shares
1,974,000 
3,221,000 
1,590,000 
 
 
 
 
 
 
 
 
 
 
 
Average Price of Common Stock, Per Share
21.20 
12.16 
22.57 
 
 
 
 
 
 
 
 
 
 
 
Common stock remaining for future issuance, ESPP
 
 
 
 
 
 
 
 
 
 
 
0 
8,400,000 
 
Common stock issued since inception under the ESPP
 
 
 
 
 
 
 
 
 
 
 
 
3,600,000 
 
Number of Shares Available for Future Issuance 1999 ESPP Plan
 
 
 
0 
 
 
 
 
 
 
 
 
 
 
[1] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="padding-bottom:1px;font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;"><font style="font-family:inherit;font-size:8pt;">RSUs and PSAs with a per share or unit purchase price lower than </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">100%</font><font style="font-family:inherit;font-size:8pt;"> 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 </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">two and one-tenth</font><font style="font-family:inherit;font-size:8pt;"> 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.</font></div></td></tr></table></div>
[2] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;"><font style="font-family:inherit;font-size:8pt;">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 </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">1.5 million</font><font style="font-family:inherit;font-size:8pt;"> shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">0</font><font style="font-family:inherit;font-size:8pt;"> to </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">3.7 million</font><font style="font-family:inherit;font-size:8pt;"> shares.</font></div></td></tr></table></div>
Note 12.4 - Employee Benefit Plans, Shares Available For Grant Level 4 (Details)
In Millions, unless otherwise specified
Year Ended
Dec. 31, 2010
Shares Available For Grant
 
Beginning Balance, Number of Shares
18,000,000 
Additional Authorized Share Reserve Approved By Shareholders
30,000,000 
Awards Granted, Number of Shares
(16,400,000)1
Options Granted, Number of Shares
(6,200,000)
Awards Canceled, Number of Shares
2,200,000 1
Options Canceled, Number of Shares
2,300,000 2
Options Expired, Number of Shares
800,000 2
Ending Balance, Number of Shares
30,700,000 
Fair Market Value on Date of Grant For RSUS And PSAS Issued at Discount, Maximum Percentage
1 
Common Stock for Each Share Subject to RSUs and PSAs
2.1 
Equity Incentive Plan 2006 [Member]
 
Shares Available For Grant
 
Additional Authorized Share Reserve Approved By Shareholders
30,000,000 
Restricted Stock [Member]
 
Shares Available For Grant
 
Awards Granted, Number of Shares
(4,000,000)
Awards Canceled, Number of Shares
(600,000)
Performance Share Awards [Member]
 
Shares Available For Grant
 
Awards Granted, Number of Shares
(3,800,000)3
Awards Canceled, Number of Shares
(400,000)
Employee Stock Purchase Plan 2008 [Member]
 
Shares Available For Grant
 
Common Stock for Future Issuance Under its Stock Award
102,700,000 
[1] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="padding-bottom:1px;font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;"><font style="font-family:inherit;font-size:8pt;">RSUs and PSAs with a per share or unit purchase price lower than </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">100%</font><font style="font-family:inherit;font-size:8pt;"> 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 </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">two and one-tenth</font><font style="font-family:inherit;font-size:8pt;"> 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.</font></div></td></tr></table></div>
[3] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;"><font style="font-family:inherit;font-size:8pt;">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 </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">1.5 million</font><font style="font-family:inherit;font-size:8pt;"> shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">0</font><font style="font-family:inherit;font-size:8pt;"> to </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">3.7 million</font><font style="font-family:inherit;font-size:8pt;"> shares.</font></div></td></tr></table></div>
Note 12.5 - Employee Benefit Plans, Assumptions and Resulting Estimates of Fair Value Level 4 (Details) (USD $)
Year Ended
Dec. 31,
2010
2009
2008
Lower Range Limit [Member] | Employee Stock Option [Member]
 
 
 
Estimates of Fair Value
 
 
 
Volatility factor
0.33 
0.42 
0.43 
Risk-free interest rate
0.01 
0.004 
0.011 
Expected life (years)
4.2 
4.3 
3.6 
Dividend yield
0 
0 
0 
Fair value per share
$ 7.83 
$ 6.02 
$ 6.76 
Lower Range Limit [Member] | Employee Stock Purchase Plan 2008 [Member]
 
 
 
Estimates of Fair Value
 
 
 
Volatility factor
0.35 
0.46 
0.46 
Risk-free interest rate
0.002 
0.028 
0.019 
Expected life (years)
0.5 
0.5 
0.5 
Dividend yield
0 
0 
0 
Weighted-average fair value per share
6.19 
4.51 
7.40 
Upper Range Limit [Member] | Employee Stock Option [Member]
 
 
 
Estimates of Fair Value
 
 
 
Volatility factor
0.42 
0.58 
0.60 
Risk-free interest rate
0.022 
0.042 
0.044 
Expected life (years)
4.3 
5.8 
5.9 
Dividend yield
0 
0 
0 
Fair value per share
33.83 
10.49 
10.88 
Upper Range Limit [Member] | Employee Stock Purchase Plan 2008 [Member]
 
 
 
Estimates of Fair Value
 
 
 
Volatility factor
0.36 
0.58 
0.48 
Risk-free interest rate
0.002 
0.039 
0.022 
Expected life (years)
0.5 
0.5 
0.5 
Dividend yield
0 
0 
0 
Weighted-average fair value per share
$ 7.09 
$ 7.35 
$ 7.80 
Equity Incentive Plan 2000 [Member]
 
 
 
Estimates of Fair Value
 
 
 
Share-based compensation stock option contractual life from grant date, prior to 2006, in years
10 
 
 
Equity Incentive Plan 1996 [Member]
 
 
 
Estimates of Fair Value
 
 
 
Share-based compensation stock option contractual life from grant date, prior to 2006, in years
10 
 
 
Employee Stock Option [Member]
 
 
 
Estimates of Fair Value
 
 
 
Share-based compensation stock option contractual life from grant date since 2006, in years
7 
 
 
Note 12.6 - Employee Benefit Plans, Share Based Compensation by Cost and Expense Categories Level 4 (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-based compensation expense
$ 182 
$ 140 
$ 108 
Cost of Revenues, Product [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-based compensation expense
4 
4 
3 
Cost of Revenues, Service [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-based compensation expense
14 1
11 1
9 1
Research and Development [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-based compensation expense
79 
59 
47 
Selling and Marketing Expense [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-based compensation expense
55 1
43 1
36 1
General and Administrative Expense [Member]
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
Share-based compensation expense
$ 31 
$ 23 
$ 13 
Note 12.7 - Employee Benefit Plans, Share Based Compensation by Share Based Payment Award Types Level 4 (Details) (USD $)
In Millions, unless otherwise specified
Year Ended
Dec. 31,
2010
2009
2008
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
$ 182 
$ 140 
$ 108 
Employee Benefit Textuals [Abstract]
 
 
 
Unrecognized Compensation Cost Related to Unvested Stock Options - Adjusted for Forfeitures
109 
 
 
Weighted Average Period that Unrecognized Compensation Cost Will be Recognized (years)
2.3 
 
 
Unrecognized Compensation Cost Related to Unvested RSU's and PSA's
151 
 
 
Weighted Average Period That Unrecognized Compensation Cost Will be Recognized - RSU's and PSA's (In Years)
2.3 
 
 
Employee Contribution Matched in Percent
0.25 
 
 
Matching Contributions to Plan
13 
12 
11 
Deferred Compensation Liability
8 
5 
 
Acquiree Stock Options [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
1 
0 
0 
Other Acquisition Related Compensation [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
4 
0 
0 
Assumed Restricted Stock Units [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
1 
0 
0 
Employee Stock Option [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
82 
81 
60 
Restricted Stock Units and Performance Share Awards [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
82 
44 
35 
Employee Stock Purchase Plan 2008 [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
$ 13 
$ 14 
$ 13 
Note 13 - Segments Level 4 (Details) (USD $)
3 Months Ended
Dec. 31,		 Year Ended
Dec. 31,
2010
2009
2010
2009
2008
Segment Reporting Information, Revenue [Abstract]
 
 
 
 
 
Product
$ 962,200,000 
$ 739,100,000 
$ 3,258,651,000 
$ 2,567,992,000 
$ 2,910,960,000 
Service
227,800,000 
202,400,000 
834,615,000 
747,920,000 
661,416,000 
Total net revenues
1,190,000,000 
941,500,000 
4,093,266,000 
3,315,912,000 
3,572,376,000 
Operating Income (Loss) [Abstract]
 
 
 
 
 
Total management operating income
 
 
981,739,000 
668,408,000 
863,854,000 
Amortization of purchased intangible assets
 
 
(8,618,000)1
(15,428,000)1
(48,984,000)1
Share-based compensation expense
 
 
(182,000,000)
(139,700,000)
(108,100,000)
Share-based payroll tax expense
 
 
(6,433,000)
(832,000)
(2,763,000)
Litigation settlement charges
 
(181,300,000)
0 
(182,331,000)
(9,000,000)
Restructuring charges
(2,300,000)
(3,200,000)
(10,805,000)
(19,463,000)
0 
Acquisition-related charges
(4,300,000)
 
(6,342,000)
0 
0 
Operating income
226,800,000 
5,800,000 
767,584,000 
310,695,000 
694,974,000 
Interest and other income, net
(600,000)
300,000 
1,917,000 
6,928,000 
48,749,000 
Gain (loss) on equity investments
5,400,000 
(2,200,000)
8,653,000 
(5,562,000)
(14,832,000)
Income before income taxes and noncontrolling interest
231,600,000 
3,900,000 
778,154,000 
312,061,000 
728,891,000 
Percent of property and equipment held in US
0.8 
0.81 
0.8 
0.81 
 
Total Segment Operating Income [Member]
 
 
 
 
 
Operating Income (Loss) [Abstract]
 
 
 
 
 
Total management operating income
 
 
981,739,000 
668,408,000 
871,764,000 
Infrastructure Segment [Member]
 
 
 
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
 
 
 
Product
 
 
2,511,584,000 
1,959,198,000 
2,301,944,000 
Service
 
 
538,690,000 
482,437,000 
424,012,000 
Total net revenues
 
 
3,050,274,000 
2,441,635,000 
2,725,856,000 
Operating Income (Loss) [Abstract]
 
 
 
 
 
Total management operating income
 
 
773,735,000 
541,416,000 
806,001,000 
Depreciation expense
 
 
108,900,000 
94,000,000 
86,300,000 
Service Layer Technologies Segment [Member]
 
 
 
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
 
 
 
Product
 
 
747,067,000 
608,794,000 
609,116,000 
Service
 
 
295,925,000 
265,483,000 
237,404,000 
Total net revenues
 
 
1,042,992,000 
874,277,000 
846,520,000 
Operating Income (Loss) [Abstract]
 
 
 
 
 
Total management operating income
 
 
208,004,000 
126,992,000 
65,763,000 
Depreciation expense
 
 
37,900,000 
39,000,000 
37,200,000 
Other Corporate [Member]
 
 
 
 
 
Operating Income (Loss) [Abstract]
 
 
 
 
 
Total management operating income
 
 
0 2
0 2
(7,910,000)2
Note 13.2 - Segments, Geographical Level 4 (Details) (USD $)
In Thousands
Year Ended
Dec. 31,
3 Months Ended
Dec. 31, 2010
3 Months Ended
Sep. 30, 2010
3 Months Ended
Jun. 30, 2010
3 Months Ended
Mar. 31, 2010
3 Months Ended
Dec. 31, 2009
3 Months Ended
Sep. 30, 2009
3 Months Ended
Jun. 30, 2009
3 Months Ended
Mar. 31, 2009
2010
2009
2008
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 1,190,000 
$ 1,012,400 
$ 978,300 
$ 912,600 
$ 941,500 
$ 823,900 
$ 786,400 
$ 764,100 
$ 4,093,266 
$ 3,315,912 
$ 3,572,376 
Total Americas [Member]
 
 
 
 
 
 
 
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
2,095,556 
1,687,857 
1,766,225 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
1,890,058 
1,515,056 
1,537,456 
Other Country [Member]
 
 
 
 
 
 
 
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
205,498 
172,801 
228,669 
Europe Middle East And Africa [Member]
 
 
 
 
 
 
 
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
1,189,266 
953,218 
1,077,654 
Asia Pacific [Member]
 
 
 
 
 
 
 
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
808,444 
674,837 
728,497 
Note 13.3 - Segments, Major Customers Level 4 (Details)
Year Ended
Dec. 31,
2008
2010
2009
Entity-Wide Revenue, Major Customer [Line Items]
 
 
 
Customers accounting for 10% or more of Company's net revenues
0 
 
 
Major customers revenues as a percentage of net revenues
 
0.106 
0.104 
Note 14 - Income Taxes Level 4 (Details)
Year Ended
Dec. 31,
3 Months Ended
Dec. 31, 2010
3 Months Ended
Mar. 31, 2010
3 Months Ended
Dec. 31, 2009
3 Months Ended
Mar. 31, 2009
2010
2009
2008
Income Tax Contingency [Line Items]
 
 
 
 
 
 
 
Domestic
 
 
 
 
370,600,000 
50,100,000 
363,700,000 
Foreign
 
 
 
 
407,600,000 
262,000,000 
365,200,000 
Income before income taxes and noncontrolling interest
231,600,000 
161,700,000 
3,900,000 
81,500,000 
778,154,000 
312,061,000 
728,891,000 
Current (benefit) provision:
 
 
 
 
 
 
 
Federal
 
 
 
 
(8,400,000)
123,800,000 
96,600,000 
State
 
 
 
 
1,000,000 
21,400,000 
35,800,000 
Foreign
 
 
 
 
44,200,000 
43,500,000 
39,300,000 
Total current provision
 
 
 
 
36,800,000 
188,700,000 
171,700,000 
Deferred expense (benefit):
 
 
 
 
 
 
 
Federal
 
 
 
 
57,500,000 
(42,700,000)
21,400,000 
State
 
 
 
 
14,000,000 
55,700,000 
(4,400,000)
Foreign
 
 
 
 
(7,500,000)
(5,900,000)
(2,700,000)
Total deferred expense
 
 
 
 
64,000,000 
7,100,000 
14,300,000 
Income tax benefits attributable to employee stock plan activity
 
 
 
 
58,000,000 
1,000,000 
31,200,000 
Provision for income taxes
41,500,000 
(2,900,000)
(17,200,000)
85,900,000 
158,781,000 
196,833,000 
217,142,000 
Expected provision at 35% rate
 
 
 
 
272,400,000 
109,200,000 
255,100,000 
State taxes, net of federal benefit
 
 
 
 
6,200,000 
(1,600,000)
16,600,000 
Foreign income at different tax rates
 
 
 
 
(71,500,000)
(33,800,000)
(51,200,000)
R&D credits
 
 
 
 
(18,600,000)
(14,400,000)
(12,100,000)
Stock-based compensation
 
 
 
 
(40,200,000)
62,100,000 
2,400,000 
Temporary differences not currently benefited
 
 
 
 
10,200,000 
72,800,000 
0 
Other
 
 
 
 
300,000 
2,500,000 
6,400,000 
Deferred tax assets:
 
 
 
 
 
 
 
Net operating loss carry-forwards
14,100,000 
 
6,200,000 
 
14,100,000 
6,200,000 
 
Foreign tax credit carry-forwards
40,300,000 
 
34,100,000 
 
40,300,000 
34,100,000 
 
Research and other credit carry-forwards
68,200,000 
 
66,000,000 
 
68,200,000 
66,000,000 
 
Deferred revenue
86,100,000 
 
66,300,000 
 
86,100,000 
66,300,000 
 
Stock-based compensation
75,600,000 
 
68,300,000 
 
75,600,000 
68,300,000 
 
Reserves and accruals not currently deductible
227,600,000 
 
264,500,000 
 
227,600,000 
264,500,000 
 
Other
26,800,000 
 
25,800,000 
 
26,800,000 
25,800,000 
 
Total deferred tax assets
538,700,000 
 
531,200,000 
 
538,700,000 
531,200,000 
 
Valuation allowance
(122,200,000)
 
(112,800,000)
 
(122,200,000)
(112,800,000)
 
Deferred tax assets, net of valuation allowance
416,500,000 
 
418,400,000 
 
416,500,000 
418,400,000 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
Property and equipment basis differences
(47,100,000)
 
(25,100,000)
 
(47,100,000)
(25,100,000)
 
Purchased intangibles
(58,500,000)
 
(37,800,000)
 
(58,500,000)
(37,800,000)
 
Unremitted foreign earnings
(175,100,000)
 
(148,300,000)
 
(175,100,000)
(148,300,000)
 
Other
(100,000)
 
(300,000)
 
(100,000)
(300,000)
 
Total deferred tax liabilities
(280,800,000)
 
(211,500,000)
 
(280,800,000)
(211,500,000)
 
Net deferred tax assets
135,700,000 
 
206,900,000 
 
135,700,000 
206,900,000 
 
Increase in valuation allowance against deferred tax assets
 
 
 
 
9,400,000 
71,300,000 
 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
 
 
 
 
Balance beginning of the year
 
183,600,000 
 
113,500,000 
183,600,000 
113,500,000 
94,700,000 
Tax positions related to current year - additions
 
 
 
 
13,900,000 
12,700,000 
17,900,000 
Tax positions related to prior years - additions
 
 
 
 
0 
73,500,000 
1,300,000 
Tax positions related to prior years - reductions
 
 
 
 
(73,800,000)
(1,000,000)
0 
Settlements
 
 
 
 
(1,600,000)
(12,800,000)
(400,000)
Lapses in statutes of limitations
 
 
 
 
(5,700,000)
(2,300,000)
0 
Balance end of the year
116,400,000 
 
183,600,000 
 
116,400,000 
183,600,000 
113,500,000 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
100,200,000 
 
 
 
100,200,000 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued
18,900,000 
 
23,500,000 
 
18,900,000 
23,500,000 
8,700,000 
Income tax penalties and interest accrued
 
 
 
 
(4,600,000)
14,800,000 
2,900,000 
Possible decrease in gross unrecognized tax benefits within next 12 months
 
 
 
 
8,100,000 
 
 
One time recognized tax benefit
 
 
 
 
73,400,000 
 
 
Estimated Deferred Tax Liability Cumulative Indefinitely Invested Undistributed Earnings
367,900,000 
 
 
 
367,900,000 
 
 
Indefinitely invested undistributed earnings
1,200,000,000 
 
 
 
1,200,000,000 
 
 
Valuation Allowance by Deferred Tax Asset California [Member]
 
 
 
 
 
 
 
Deferred tax assets:
 
 
 
 
 
 
 
Valuation allowance
(80,600,000)
 
 
 
 
 
 
Valuation Allowance by Deferred Tax Asset Capital Losses [Member]
 
 
 
 
 
 
 
Deferred tax assets:
 
 
 
 
 
 
 
Valuation allowance
(41,600,000)
 
 
 
 
 
 
ValuationAllowanceDeferredTaxAssetCAChange [Member]
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
Increase in valuation allowance against deferred tax assets
 
 
 
 
11,900,000 
 
 
Domestic Country [Member]
 
 
 
 
 
 
 
Deferred tax assets:
 
 
 
 
 
 
 
Net operating loss carry-forwards
37,000,000 
 
 
 
 
 
 
State and Local Jurisdiction [Member]
 
 
 
 
 
 
 
Deferred tax assets:
 
 
 
 
 
 
 
Net operating loss carry-forwards
44,400,000 
 
 
 
 
 
 
Tax Credit Carry Forward California [Member]
 
 
 
 
 
 
 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
 
 
 
 
Tax Credit Carryforward, Amount
138,400,000 
 
 
 
 
 
 
Tax Credit Carry-Forward State APIC [Member]
 
 
 
 
 
 
 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
 
 
 
 
Tax Credit Carryforward, Amount
18,200,000 
 
 
 
 
 
 
AccruedInterestAndPenaltiesIndiaTax [Member]
 
 
 
 
 
 
 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
 
 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued
 
 
4,600,000 
 
 
 
 
Note 15 - Commitments and Contingencies Level 4 (Details)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Summarization of principal contractual obligations
 
 
 
Operating leases
296 
 
 
Purchase commitments
199 
 
 
Tax liabilities
104 
 
 
Other contractual obligations
95 
 
 
Total
694 
 
 
Commitments Textuals [Abstract]
 
 
 
Rent expense
56 
57 
58 
Accrual for estimated carrying charges or obsolete materials charges
23 
 
 
Indemnity-related and service-related escrows
65 
 
 
Data center hosting agreement
13 
 
 
Licensing and servicing agreements
9 
 
 
Software subscription agreement
8 
 
 
Principal Contractual Obligations Maturity Period Current Year [Member]
 
 
 
Summarization of principal contractual obligations
 
 
 
Operating leases
51 
 
 
Purchase commitments
199 
 
 
Tax liabilities
0 
 
 
Other contractual obligations
66 
 
 
Total
316 
 
 
Principal Contractual Obligations Maturity Period Year One [Member]
 
 
 
Summarization of principal contractual obligations
 
 
 
Operating leases
45 
 
 
Purchase commitments
0 
 
 
Tax liabilities
0 
 
 
Other contractual obligations
18 
 
 
Total
63 
 
 
Principal Contractual Obligations Maturity Period Year Two [Member]
 
 
 
Summarization of principal contractual obligations
 
 
 
Operating leases
35 
 
 
Purchase commitments
0 
 
 
Tax liabilities
0 
 
 
Other contractual obligations
10 
 
 
Total
45 
 
 
Principal Contractual Obligations Maturity Period Year Three [Member]
 
 
 
Summarization of principal contractual obligations
 
 
 
Operating leases
30 
 
 
Purchase commitments
0 
 
 
Tax liabilities
0 
 
 
Other contractual obligations
2 
 
 
Total
32 
 
 
Principal Contractual Obligations Maturity Period Year Four [Member]
 
 
 
Summarization of principal contractual obligations
 
 
 
Operating leases
23 
 
 
Purchase commitments
0 
 
 
Tax liabilities
0 
 
 
Other contractual obligations
0 
 
 
Total
23 
 
 
Principal Contractual Obligations Maturity Period After Year Four [Member]
 
 
 
Summarization of principal contractual obligations
 
 
 
Operating leases
112 
 
 
Purchase commitments
0 
 
 
Tax liabilities
0 
 
 
Other contractual obligations
0 
 
 
Total
112 
 
 
Principal Contractual Obligations Other [Member]
 
 
 
Summarization of principal contractual obligations
 
 
 
Operating leases
0 
 
 
Purchase commitments
0 
 
 
Tax liabilities
104 
 
 
Other contractual obligations
0 
 
 
Total
104 
 
 
Note 15.2 - Commitments and Contingencies, Guarantees Level 4 (Details) (Guarantees And Standby Letters Of Credit [Member], USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 22 
$ 34 
Note 15.3 - Commitments and Contingencies, Legal Proceedings Level 4 (Details)
In Millions
3 Months Ended
Sep. 30, 2006
Year Ended
Dec. 31, 2010
3 Months Ended
Dec. 31, 2009
Loss Contingencies [Line Items]
 
 
 
Class actions filed on July 14, 2006 and August 29, 2006
2 
 
 
Gain (loss) related to litigation settlement
 
 
(169)
Number of other issuers included in IPO lawsuit allegations
 
300 
 
Estimated incremental tax liability excluding interest and penalties related to NOPA
 
807 
 
Note 16 - Joint Venture Level 4 (Details)
In Millions
Year Ended
Dec. 31, 2009
Dec. 31, 2010
Schedule of Equity Method Investments [Line Items]
 
 
Payments to acquire interest in joint venture
7 
 
Company's interest in the joint venture - NSN
 
0.60 
Note 17 - Selected Quarterly Financial Data Level 4 (Details) (USD $)
In Thousands, except Per Share data
Year Ended
Dec. 31,
3 Months Ended
Dec. 31, 2010
3 Months Ended
Sep. 30, 2010
3 Months Ended
Jun. 30, 2010
3 Months Ended
Mar. 31, 2010
3 Months Ended
Dec. 31, 2009
3 Months Ended
Sep. 30, 2009
3 Months Ended
Jun. 30, 2009
3 Months Ended
Mar. 31, 2009
2010
2009
2008
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
$ 962,200 
$ 801,200 
$ 774,100 
$ 721,200 
$ 739,100 
$ 634,100 
$ 607,000 
$ 587,800 
$ 3,258,651 
$ 2,567,992 
$ 2,910,960 
Service
227,800 
211,200 
204,200 
191,400 
202,400 
189,800 
179,400 
176,300 
834,615 
747,920 
661,416 
Total net revenues
1,190,000 
1,012,400 
978,300 
912,600 
941,500 
823,900 
786,400 
764,100 
4,093,266 
3,315,912 
3,572,376 
Cost of revenues:
 
 
 
 
 
 
 
 
 
 
 
Product
299,700 
247,000 
231,800 
222,400 
234,800 
206,300 
207,600 
193,000 
1,000,865 
841,722 
867,595 
Service
98,300 
87,600 
86,600 
78,200 
75,500 
74,300 
72,400 
68,800 
350,654 
290,987 
269,298 
Total cost of revenues
398,000 
334,600 
318,400 
300,600 
310,300 
280,600 
280,000 
261,800 
1,351,519 
1,132,709 
1,136,893 
Gross margin
792,000 
677,800 
659,900 
612,000 
631,200 
543,300 
506,400 
502,300 
2,741,747 
2,183,203 
2,435,483 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Research and development
254,900 
231,200 
224,800 
207,000 
187,200 
185,200 
183,900 
185,400 
917,855 
741,708 
731,151 
Sales and marketing
257,700 
204,700 
202,300 
192,400 
211,300 
183,400 
176,600 
187,900 
857,072 
759,131 
812,013 
General and administrative
45,100 
43,800 
45,900 
43,100 
41,200 
39,900 
39,200 
39,200 
177,859 
159,459 
144,837 
Amortization of purchased intangibles
900 
900 
1,200 
1,100 
1,200 
1,300 
3,500 
4,400 
4,230 
10,416 
43,508 
Litigation settlement charges
 
 
 
 
181,300 
1,000 
0 
0 
0 
182,331 
9,000 
Restructuring charges
2,300 
200 
200 
8,100 
3,200 
4,500 
7,500 
4,200 
10,805 
19,463 
0 
Acquisition-related charges
4,300 
1,500 
500 
0 
 
 
 
 
6,342 
0 
0 
Total operating expenses
565,200 
482,300 
474,900 
451,700 
625,400 
415,300 
410,700 
421,100 
1,974,163 
1,872,508 
1,740,509 
Operating income
226,800 
195,500 
185,000 
160,300 
5,800 
128,000 
95,700 
81,200 
767,584 
310,695 
694,974 
Interest and other income (expense), net
(600)
200 
800 
1,400 
300 
1,700 
2,900 
2,000 
1,917 
6,928 
48,749 
Gain (loss) on equity investments
5,400 
0 
3,200 
0 
(2,200)
0 
(1,600)
(1,700)
8,653 
(5,562)
(14,832)
Income before income taxes and noncontrolling interest
231,600 
195,700 
189,000 
161,700 
3,900 
129,700 
97,000 
81,500 
778,154 
312,061 
728,891 
Income tax (benefit) provision
41,500 
61,400 
58,700 
(2,900)
(17,200)
45,900 
82,200 
85,900 
158,781 
196,833 
217,142 
Consolidated net income
190,100 
134,300 
130,300 
164,600 
21,100 
83,800 
14,800 
(4,400)
619,373 
115,228 
511,749 
Adjust for net (income) loss attributable to noncontrolling interest
100 
200 
200 
(1,500)
1,800 
0 
0 
0 
(971)
1,771 
0 
Net income attributable to Juniper Networks
190,200 
134,500 
130,500 
163,100 
22,900 
83,800 
14,800 
(4,400)
618,402 
116,999 
511,749 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
 
 
 
 
Basic
0.36 
0.26 
0.25 
0.31 
0.04 
0.16 
0.03 
(0.01)
1.18 
0.22 
0.96 
Diluted
$ 0.35 
$ 0.25 
$ 0.24 
$ 0.3 
$ 0.04 
$ 0.16 
$ 0.03 
$ (0.01)
$ 1.15 
$ 0.22 
$ 0.93 
Note 18 - Subsequent Events Level 4 (Details) (USD $)
Share data in Thousands, except Per Share data
Year Ended
Dec. 31,
2010
2009
2008
Feb. 25, 2011
Subsequent Event [Line Items]
 
 
 
 
Repurchase and retirement of common stock, shares
(19,654)
(20,715)
(25,088)
4,800 
Repurchase and retirement of common stock, value
$ (563,526,000)
$ (453,888,000)
$ (604,700,000)
$ 200,300,000 
Common stock repurchased and retired under stock repurchase programs, average purchase price
28.67 
21.91 
 
42.14 
Stock repurchase program remaining authorized funds
 
 
 
554,800,000 
Valuation and Qualifying Accounts Level 4 (Details) (USD $)
Year Ended
Dec. 31,
2010
2009
2008
Allowance for Doubtful Accounts, Current [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Valuation Allowances and Reserves, Balance at Beginning of Year
$ 9,116,000 
$ 9,700,000 
$ 8,300,000 
Valuation Allowances and Reserves, Charged to Cost and Expense
1,200,000 
(600,000)
1,700,000 
Valuation Allowances and Reserves, Recoveries
(200,000)
0 
(300,000)
Valuation Allowances and Reserves, Balance at End of Year
10,110,000 
9,116,000 
9,700,000 
Allowance for Sales Returns [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Valuation Allowances and Reserves, Balance at Beginning of Year
45,600,000 
36,800,000 
25,100,000 
Valuation Allowances and Reserves, Charged to Cost and Expense
104,400,000 
84,100,000 
89,000,000 
Valuation Allowances and Reserves, Recoveries
(97,200,000)
(75,300,000)
(77,300,000)
Valuation Allowances and Reserves, Balance at End of Year
$ 52,800,000 
$ 45,600,000 
$ 36,800,000