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Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of March 31, 2013 | |||||||||||||||
Cash equivalents: | |||||||||||||||
Certificate of deposit | $ | 0.3 | $ | — | $ | — | $ | 0.3 | |||||||
Money market funds | 749.6 | — | — | 749.6 | |||||||||||
U.S. government securities | 6.0 | — | — | 6.0 | |||||||||||
Total cash equivalents | 755.9 | — | — | 755.9 | |||||||||||
Restricted investments: | |||||||||||||||
Money market funds | 89.5 | — | — | 89.5 | |||||||||||
Mutual funds | 2.9 | 0.1 | — | 3.0 | |||||||||||
Total restricted investments | 92.4 | 0.1 | — | 92.5 | |||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | 234.7 | 0.2 | (0.1 | ) | 234.8 | ||||||||||
Certificates of deposit | 44.7 | — | — | 44.7 | |||||||||||
Corporate debt securities | 614.0 | 2.0 | (0.3 | ) | 615.7 | ||||||||||
Foreign government debt securities | 15.8 | — | — | 15.8 | |||||||||||
Government-sponsored enterprise obligations | 270.4 | 0.2 | — | 270.6 | |||||||||||
U.S. government securities | 430.1 | 0.2 | — | 430.3 | |||||||||||
Total fixed income securities | 1,609.7 | 2.6 | (0.4 | ) | 1,611.9 | ||||||||||
Publicly-traded equity securities | 2.9 | — | (0.3 | ) | 2.6 | ||||||||||
Total available-for-sale securities | 2,460.9 | 2.7 | (0.7 | ) | 2,462.9 | ||||||||||
Trading securities in mutual funds(*) | 13.8 | — | — | 13.8 | |||||||||||
Total | $ | 2,474.7 | $ | 2.7 | $ | (0.7 | ) | $ | 2,476.7 | ||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 755.9 | $ | — | $ | — | $ | 755.9 | |||||||
Restricted investments | 92.4 | 0.1 | — | 92.5 | |||||||||||
Short-term investments | 613.0 | 0.4 | (0.3 | ) | 613.1 | ||||||||||
Long-term investments | 1,013.4 | 2.2 | (0.4 | ) | 1,015.2 | ||||||||||
Total | $ | 2,474.7 | $ | 2.7 | $ | (0.7 | ) | $ | 2,476.7 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of December 31, 2012 | |||||||||||||||
Cash equivalents: | |||||||||||||||
Certificate of deposit | $ | 0.6 | $ | — | $ | — | $ | 0.6 | |||||||
Commercial paper | 10.8 | — | — | 10.8 | |||||||||||
Government-sponsored enterprise obligations | 6.1 | — | — | 6.1 | |||||||||||
Money market funds | 1,042.6 | — | — | 1,042.6 | |||||||||||
U.S. government securities | 165.8 | — | — | 165.8 | |||||||||||
Total cash equivalents | 1,225.9 | — | — | 1,225.9 | |||||||||||
Restricted investments: | |||||||||||||||
Money market funds | 102.6 | — | — | 102.6 | |||||||||||
Mutual funds | 2.9 | 0.1 | — | 3.0 | |||||||||||
Total restricted investments | 105.5 | 0.1 | — | 105.6 | |||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | 226.2 | 0.3 | (0.1 | ) | 226.4 | ||||||||||
Certificates of deposit | 41.9 | — | — | 41.9 | |||||||||||
Commercial paper | 11.6 | — | — | 11.6 | |||||||||||
Corporate debt securities | 533.4 | 2.3 | (0.1 | ) | 535.6 | ||||||||||
Foreign government debt securities | 5.0 | — | — | 5.0 | |||||||||||
Government-sponsored enterprise obligations | 264.6 | 0.3 | — | 264.9 | |||||||||||
U.S. government securities | 328.6 | 0.1 | — | 328.7 | |||||||||||
Total fixed income securities | 1,411.3 | 3.0 | (0.2 | ) | 1,414.1 | ||||||||||
Publicly-traded equity securities | 3.0 | — | (0.1 | ) | 2.9 | ||||||||||
Total available-for-sale securities | 2,745.7 | 3.1 | (0.3 | ) | 2,748.5 | ||||||||||
Trading securities in mutual funds(*) | 12.6 | — | — | 12.6 | |||||||||||
Total | $ | 2,758.3 | $ | 3.1 | $ | (0.3 | ) | $ | 2,761.1 | ||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 1,225.9 | $ | — | $ | — | $ | 1,225.9 | |||||||
Restricted investments | 105.5 | 0.1 | — | 105.6 | |||||||||||
Short-term investments | 441.3 | 0.3 | (0.1 | ) | 441.5 | ||||||||||
Long-term investments | 985.6 | 2.7 | (0.2 | ) | 988.1 | ||||||||||
Total | $ | 2,758.3 | $ | 3.1 | $ | (0.3 | ) | $ | 2,761.1 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Due within one year | $ | 596.3 | $ | 0.4 | $ | — | $ | 596.7 | |||||||
Due between one and five years | 1,013.4 | 2.2 | (0.4 | ) | 1,015.2 | ||||||||||
Total | $ | 1,609.7 | $ | 2.6 | $ | (0.4 | ) | $ | 1,611.9 |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of March 31, 2013 | |||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities | $ | 112.5 | $ | (0.1 | ) | $ | — | $ | — | $ | 112.5 | $ | (0.1 | ) | |||||||||
Corporate debt securities | 180.8 | (0.3 | ) | — | — | 180.8 | (0.3 | ) | |||||||||||||||
Foreign government debt securities | 15.1 | — | — | — | 15.1 | — | |||||||||||||||||
Government-sponsored enterprise obligations | 85.3 | — | — | — | 85.3 | — | |||||||||||||||||
U.S. government securities | 10.0 | — | — | — | 10.0 | — | |||||||||||||||||
Total fixed income securities | 403.7 | (0.4 | ) | — | — | 403.7 | (0.4 | ) | |||||||||||||||
Publicly-traded equity securities | 2.6 | (0.3 | ) | — | — | 2.6 | (0.3 | ) | |||||||||||||||
Total available-for sale securities | $ | 406.3 | $ | (0.7 | ) | $ | — | $ | — | $ | 406.3 | $ | (0.7 | ) |
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, 2012 | |||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities(*) | $ | 55.1 | $ | (0.1 | ) | $ | 0.1 | $ | — | $ | 55.2 | $ | (0.1 | ) | |||||||||
Certificates of deposit | 0.3 | — | — | — | 0.3 | — | |||||||||||||||||
Commercial paper | 10.0 | — | — | — | 10.0 | — | |||||||||||||||||
Corporate debt securities | 116.0 | (0.1 | ) | — | — | 116.0 | (0.1 | ) | |||||||||||||||
Government-sponsored enterprise obligations | 30.0 | — | — | — | 30.0 | — | |||||||||||||||||
U.S. government securities | 68.2 | — | — | — | 68.2 | — | |||||||||||||||||
Total fixed income securities | 279.6 | (0.2 | ) | 0.1 | — | 279.7 | (0.2 | ) | |||||||||||||||
Publicly-traded equity securities | 2.9 | (0.1 | ) | — | — | 2.9 | (0.1 | ) | |||||||||||||||
Total available-for sale securities | $ | 282.5 | $ | (0.3 | ) | $ | 0.1 | $ | — | $ | 282.6 | $ | (0.3 | ) |
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Restricted cash | $ | 1.9 | $ | 0.8 | |||
Restricted investments | 92.5 | 105.6 | |||||
Total restricted cash and investments | $ | 94.4 | $ | 106.4 |
|
Fair Value Measurements at March 31, 2013 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 234.8 | $ | — | $ | 234.8 | |||||||
Certificate of deposit | — | 45.0 | — | 45.0 | |||||||||||
Corporate debt securities | — | 615.7 | — | 615.7 | |||||||||||
Foreign government debt securities | — | 15.8 | — | 15.8 | |||||||||||
Government-sponsored enterprise obligations | 265.6 | 5.0 | — | 270.6 | |||||||||||
Money market funds (1) | 839.1 | — | — | 839.1 | |||||||||||
Mutual funds (2) | 3.0 | — | — | 3.0 | |||||||||||
Publicly-traded equity securities | 2.6 | — | — | 2.6 | |||||||||||
U.S. government securities | 237.2 | 199.1 | — | 436.3 | |||||||||||
Total available-for-sale securities | 1,347.5 | 1,115.4 | — | 2,462.9 | |||||||||||
Trading securities in mutual funds (3) | 13.8 | — | — | 13.8 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 1.6 | — | 1.6 | |||||||||||
Total assets measured at fair value | $ | 1,361.3 | $ | 1,117.0 | $ | — | $ | 2,478.3 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 | |||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 749.6 | $ | 6.3 | $ | — | $ | 755.9 | |||||||
Restricted investments | 92.5 | — | — | 92.5 | |||||||||||
Short-term investments | 262.5 | 350.6 | — | 613.1 | |||||||||||
Long-term investments | 256.7 | 758.5 | — | 1,015.2 | |||||||||||
Prepaid expenses and other current assets | — | 1.6 | — | 1.6 | |||||||||||
Total assets measured at fair value | $ | 1,361.3 | $ | 1,117.0 | $ | — | $ | 2,478.3 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 1.1 | $ | — | $ | 1.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
(1) | Balance includes $89.5 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisition-related escrows. |
(2) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(3) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
Fair Value Measurements at December 31, 2012 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 226.4 | $ | — | $ | 226.4 | |||||||
Certificate of deposit | — | 42.5 | — | 42.5 | |||||||||||
Commercial paper | — | 22.4 | — | 22.4 | |||||||||||
Corporate debt securities | — | 535.6 | — | 535.6 | |||||||||||
Foreign government debt securities | — | 5.0 | — | 5.0 | |||||||||||
Government-sponsored enterprise obligations | 254.9 | 16.1 | — | 271.0 | |||||||||||
Money market funds (1) | 1,145.2 | — | — | 1,145.2 | |||||||||||
Mutual funds (2) | 1.0 | 2.0 | — | 3.0 | |||||||||||
Publicly-traded equity securities | 2.9 | — | — | 2.9 | |||||||||||
U.S. government securities | 275.9 | 218.6 | — | 494.5 | |||||||||||
Total available-for-sale securities | 1,679.9 | 1,068.6 | — | 2,748.5 | |||||||||||
Trading securities in mutual funds (3) | 12.6 | — | — | 12.6 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 3.5 | — | 3.5 | |||||||||||
Total assets measured at fair value | $ | 1,692.5 | $ | 1,072.1 | $ | — | $ | 2,764.6 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 1,048.7 | $ | 177.2 | $ | — | $ | 1,225.9 | |||||||
Restricted investments | 103.6 | 2.0 | — | 105.6 | |||||||||||
Short-term investments | 224.4 | 217.1 | — | 441.5 | |||||||||||
Long-term investments | 315.8 | 672.3 | — | 988.1 | |||||||||||
Prepaid expenses and other current assets | — | 3.5 | — | 3.5 | |||||||||||
Total assets measured at fair value | $ | 1,692.5 | $ | 1,072.1 | $ | — | $ | 2,764.6 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 |
(1) | Balance includes $102.6 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisition-related escrows. |
(2) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(3) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
|
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Cash flow hedges | $ | 67.6 | $ | 85.8 | |||
Non-designated derivatives | 114.4 | 112.8 | |||||
Total | $ | 182.0 | $ | 198.6 |
|
PSD | SSD | Total | |||||||||
Balance as of December 31, 2012 | $ | 1,866.3 | $ | 2,191.5 | $ | 4,057.8 | |||||
Reclassifications | (179.0 | ) | 179.0 | — | |||||||
Balance as of March 31, 2013 | $ | 1,687.3 | $ | 2,370.5 | $ | 4,057.8 |
Gross | Accumulated Amortization | Impairments and Other Charges | Net | ||||||||||||
As of March 31, 2013 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 564.0 | $ | (431.7 | ) | $ | (30.5 | ) | $ | 101.8 | |||||
Customer contracts, support agreements, and related relationships | 74.3 | (60.1 | ) | (2.2 | ) | 12.0 | |||||||||
Other | 18.8 | (18.8 | ) | — | — | ||||||||||
Total intangible assets with finite lives | 657.1 | (510.6 | ) | (32.7 | ) | 113.8 | |||||||||
IPR&D with indefinite lives | 17.4 | — | — | 17.4 | |||||||||||
Total purchased intangible assets | $ | 674.5 | $ | (510.6 | ) | $ | (32.7 | ) | $ | 131.2 | |||||
As of December 31, 2012 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 554.1 | $ | (425.0 | ) | $ | (30.5 | ) | $ | 98.6 | |||||
Customer contracts, support agreements, and related relationships | 74.3 | (59.2 | ) | (2.2 | ) | 12.9 | |||||||||
Other | 18.8 | (18.8 | ) | — | — | ||||||||||
Total intangible assets with finite lives | 647.2 | (503.0 | ) | (32.7 | ) | 111.5 | |||||||||
IPR&D with indefinite lives | 17.4 | — | — | 17.4 | |||||||||||
Total purchased intangible assets | $ | 664.6 | $ | (503.0 | ) | $ | (32.7 | ) | $ | 128.9 |
Years Ending December 31, | Amount | ||
Remainder of 2013 | $ | 22.9 | |
2014 | 30.4 | ||
2015 | 26.8 | ||
2016 | 14.2 | ||
2017 | 10.5 | ||
Thereafter | 9.0 | ||
Total | $ | 113.8 |
|
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Inventories, net: | |||||||
Production materials | $ | 50.1 | $ | 54.6 | |||
Finished goods | 4.0 | 4.1 | |||||
Total inventories, net | $ | 54.1 | $ | 58.7 |
Balance as of December 31, 2012 | $ | 29.7 | |
Provisions made during the period, net | 7.3 | ||
Change in estimate | (0.3 | ) | |
Actual costs incurred during the period | (7.3 | ) | |
Balance as of March 31, 2013 | $ | 29.4 |
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 250.5 | $ | 256.9 | |||
Distributor inventory and other sell-through items | 122.7 | 138.4 | |||||
Deferred gross product revenue | 373.2 | 395.3 | |||||
Deferred cost of product revenue | (86.4 | ) | (99.4 | ) | |||
Deferred product revenue, net | 286.8 | 295.9 | |||||
Deferred service revenue | 693.9 | 627.5 | |||||
Total | $ | 980.7 | $ | 923.4 | |||
Reported as: | |||||||
Current | $ | 774.7 | $ | 693.5 | |||
Long-term | 206.0 | 229.9 | |||||
Total | $ | 980.7 | $ | 923.4 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Interest income | $ | 2.1 | $ | 2.8 | |||
Interest expense | (14.3 | ) | (14.2 | ) | |||
Other | 2.1 | (13.0 | ) | ||||
Other expense, net | $ | (10.1 | ) | $ | (24.4 | ) |
|
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Severance | $ | 4.4 | $ | 3.0 | |||
Facilities | 2.6 | (0.2 | ) | ||||
Contract terminations and other | 0.7 | (0.8 | ) | ||||
Total | $ | 7.7 | $ | 2.0 |
December 31, 2012 | Charges | Cash Payments | Non-cash Settlements and Other | March 31, 2013 | |||||||||||||||
Severance | $ | 10.6 | $ | 4.4 | $ | (8.2 | ) | $ | (0.1 | ) | $ | 6.7 | |||||||
Facilities | 5.2 | 2.6 | (1.8 | ) | (0.2 | ) | 5.8 | ||||||||||||
Contract terminations and other | 2.4 | 0.7 | (2.1 | ) | 0.5 | 1.5 | |||||||||||||
Total | $ | 18.2 | $ | 7.7 | $ | (12.1 | ) | $ | 0.2 | $ | 14.0 |
|
As of March 31, 2013 | ||||||
Amount | Effective Interest Rates | |||||
Senior notes: | ||||||
3.10% fixed-rate notes, due 2016 ("2016 Notes") | $ | 300.0 | 3.12 | % | ||
4.60% fixed-rate notes, due 2021 ("2021 Notes") | 300.0 | 4.63 | % | |||
5.95% fixed-rate notes, due 2041 ("2041 Notes") | 400.0 | 6.01 | % | |||
Total senior notes | 1,000.0 | |||||
Unaccreted discount | (0.8 | ) | ||||
Total | $ | 999.2 |
|
Unrealized Gains (Losses) on Available-for- Sale Securities(1) | Unrealized Gains (Losses) on Cash Flow Hedges(2) | Foreign Currency Translation Adjustments | Total | ||||||||||||
Balance as of December 31, 2012 | $ | 2.1 | $ | 3.0 | $ | (0.4 | ) | $ | 4.7 | ||||||
Other comprehensive loss before reclassifications | (0.2 | ) | (2.1 | ) | (5.8 | ) | (8.1 | ) | |||||||
Amount reclassified from accumulated other comprehensive (loss) income | (0.4 | ) | (1.4 | ) | — | (1.8 | ) | ||||||||
Other comprehensive loss(3) | (0.6 | ) | (3.5 | ) | (5.8 | ) | (9.9 | ) | |||||||
Balance as of March 31, 2013 | $ | 1.5 | $ | (0.5 | ) | $ | (6.2 | ) | $ | (5.2 | ) |
(1) | The reclassifications out of accumulated comprehensive income during the three months ended March 31, 2013 for realized gains on available-for-sale securities of $0.4 million are included in other expense, net in the Condensed Consolidated Statements of Operations. |
(2) | The reclassifications out of accumulated comprehensive income during the three months ended March 31, 2013 for realized gains on cash flow hedges are included within cost of revenues of $0.2 million, research and development of $0.4 million, sales and marketing of $0.5 million, and general and administrative of $0.3 million for which the hedged transactions relate in the Condensed Consolidated Statements of Operations. |
(3) | Taxes related to each component of other comprehensive loss were not material for the three months ended March 31, 2013 and March 31, 2012. |
|
Outstanding Options | ||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2012 | 34.1 | $ | 24.13 | |||||||||
Options granted | — | — | ||||||||||
Options canceled | (0.4 | ) | 31.35 | |||||||||
Options exercised | (2.3 | ) | 16.17 | |||||||||
Options expired | (1.4 | ) | 27.73 | |||||||||
Balance as of March 31, 2013 | 30.0 | $ | 24.46 | 3.1 | $ | 35.8 | ||||||
As of March 31, 2013: | ||||||||||||
Vested and expected-to-vest options | 29.2 | $ | 24.50 | 3.0 | $ | 32.5 | ||||||
Exercisable options | 24.5 | $ | 24.33 | 2.4 | $ | 18.8 |
Outstanding RSUs, RSAs, and PSAs | ||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2012 | 26.8 | $ | 27.76 | |||||||||
RSUs granted | 7.7 | 20.41 | ||||||||||
PSAs granted (*) | 2.0 | 21.36 | ||||||||||
RSUs vested | (3.8 | ) | 28.80 | |||||||||
PSAs vested | (1.0 | ) | 28.26 | |||||||||
RSAs vested | (0.2 | ) | 19.59 | |||||||||
RSUs canceled | (0.7 | ) | 24.20 | |||||||||
PSAs canceled | (1.8 | ) | 29.05 | |||||||||
Balance as of March 31, 2013 | 29.0 | $ | 25.28 | 1.7 | $ | 538.4 | ||||||
As of March 31, 2013: | ||||||||||||
Vested and expected-to-vest RSUs, RSAs, and PSAs | 24.9 | $ | 23.95 | 1.6 | $ | 461.3 |
(*) | The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 1.0 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.0 million shares. |
Three Months Ended March 31, | |||
2013 | 2012 | ||
Stock Options: | |||
Volatility | — | 46% | |
Risk-free interest rate | — | 0.8% | |
Expected life (years) | — | 4.2 | |
Dividend yield | — | — | |
Weighted-average fair value per share | — | $8.51 | |
ESPP: | |||
Volatility | 36% | 51% | |
Risk-free interest rate | 0.1% | 0.1% | |
Expected life (years) | 0.5 | 0.5 | |
Dividend yield | — | — | |
Weighted-average fair value per share | $5.63 | $6.38 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Cost of revenues - Product | $ | 0.9 | $ | 1.0 | |||
Cost of revenues - Service | 4.6 | 5.3 | |||||
Research and development | 23.6 | 25.8 | |||||
Sales and marketing | 14.5 | 21.9 | |||||
General and administrative | 6.3 | 11.0 | |||||
Total | $ | 49.9 | $ | 65.0 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Stock options | $ | 9.5 | $ | 17.7 | |||
RSUs and PSAs | 33.7 | 41.8 | |||||
RSAs | 3.3 | — | |||||
ESPP | 3.4 | 5.5 | |||||
Total | $ | 49.9 | $ | 65.0 |
Unrecognized Compensation Cost | Weighted Average Period (In Years) | ||||
Stock options | $ | 59.0 | 2.3 | ||
RSUs and PSAs | 342.7 | 2.2 | |||
RSAs | $ | 65.2 | 3.2 |
|
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Net revenues: | |||||||
PSD | $ | 809.2 | $ | 765.7 | |||
SSD | 250.0 | 266.8 | |||||
Total net revenues | $ | 1,059.2 | $ | 1,032.5 | |||
Segment contribution margin: | |||||||
PSD | $ | 330.1 | $ | 276.3 | |||
SSD | 102.0 | 110.3 | |||||
Total segment contribution margin | $ | 432.1 | $ | 386.6 | |||
Corporate unallocated expenses(1) | $ | (266.1 | ) | $ | (263.1 | ) | |
Amortization of purchased intangible assets(2) | (7.5 | ) | (7.3 | ) | |||
Share-based compensation expense | (49.9 | ) | (65.0 | ) | |||
Share-based payroll tax expense | (3.5 | ) | (0.3 | ) | |||
Restructuring charges(3) | (7.7 | ) | (2.0 | ) | |||
Acquisition and litigation charges | (10.4 | ) | (1.2 | ) | |||
Total operating income | 87.0 | 47.7 | |||||
Other expense, net | (10.1 | ) | (24.4 | ) | |||
Income before income taxes | $ | 76.9 | $ | 23.3 |
(1) | Amount includes unallocated costs for global functions such as sales, marketing, and general and administrative. |
(2) | Amount includes amortization expense of purchased intangible assets reported in operating expenses and in cost of revenues. |
(3) | Amount includes restructuring charges reported in operating expenses and in cost of revenues. |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Americas: | |||||||
United States | $ | 547.0 | $ | 468.4 | |||
Other | 45.1 | 62.9 | |||||
Total Americas | 592.1 | 531.3 | |||||
Europe, Middle East, and Africa | 290.6 | 307.1 | |||||
Asia Pacific | 176.5 | 194.1 | |||||
Total | $ | 1,059.2 | $ | 1,032.5 |
|
|
|
|
|
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of March 31, 2013 | |||||||||||||||
Cash equivalents: | |||||||||||||||
Certificate of deposit | $ | 0.3 | $ | — | $ | — | $ | 0.3 | |||||||
Money market funds | 749.6 | — | — | 749.6 | |||||||||||
U.S. government securities | 6.0 | — | — | 6.0 | |||||||||||
Total cash equivalents | 755.9 | — | — | 755.9 | |||||||||||
Restricted investments: | |||||||||||||||
Money market funds | 89.5 | — | — | 89.5 | |||||||||||
Mutual funds | 2.9 | 0.1 | — | 3.0 | |||||||||||
Total restricted investments | 92.4 | 0.1 | — | 92.5 | |||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | 234.7 | 0.2 | (0.1 | ) | 234.8 | ||||||||||
Certificates of deposit | 44.7 | — | — | 44.7 | |||||||||||
Corporate debt securities | 614.0 | 2.0 | (0.3 | ) | 615.7 | ||||||||||
Foreign government debt securities | 15.8 | — | — | 15.8 | |||||||||||
Government-sponsored enterprise obligations | 270.4 | 0.2 | — | 270.6 | |||||||||||
U.S. government securities | 430.1 | 0.2 | — | 430.3 | |||||||||||
Total fixed income securities | 1,609.7 | 2.6 | (0.4 | ) | 1,611.9 | ||||||||||
Publicly-traded equity securities | 2.9 | — | (0.3 | ) | 2.6 | ||||||||||
Total available-for-sale securities | 2,460.9 | 2.7 | (0.7 | ) | 2,462.9 | ||||||||||
Trading securities in mutual funds(*) | 13.8 | — | — | 13.8 | |||||||||||
Total | $ | 2,474.7 | $ | 2.7 | $ | (0.7 | ) | $ | 2,476.7 | ||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 755.9 | $ | — | $ | — | $ | 755.9 | |||||||
Restricted investments | 92.4 | 0.1 | — | 92.5 | |||||||||||
Short-term investments | 613.0 | 0.4 | (0.3 | ) | 613.1 | ||||||||||
Long-term investments | 1,013.4 | 2.2 | (0.4 | ) | 1,015.2 | ||||||||||
Total | $ | 2,474.7 | $ | 2.7 | $ | (0.7 | ) | $ | 2,476.7 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of December 31, 2012 | |||||||||||||||
Cash equivalents: | |||||||||||||||
Certificate of deposit | $ | 0.6 | $ | — | $ | — | $ | 0.6 | |||||||
Commercial paper | 10.8 | — | — | 10.8 | |||||||||||
Government-sponsored enterprise obligations | 6.1 | — | — | 6.1 | |||||||||||
Money market funds | 1,042.6 | — | — | 1,042.6 | |||||||||||
U.S. government securities | 165.8 | — | — | 165.8 | |||||||||||
Total cash equivalents | 1,225.9 | — | — | 1,225.9 | |||||||||||
Restricted investments: | |||||||||||||||
Money market funds | 102.6 | — | — | 102.6 | |||||||||||
Mutual funds | 2.9 | 0.1 | — | 3.0 | |||||||||||
Total restricted investments | 105.5 | 0.1 | — | 105.6 | |||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | 226.2 | 0.3 | (0.1 | ) | 226.4 | ||||||||||
Certificates of deposit | 41.9 | — | — | 41.9 | |||||||||||
Commercial paper | 11.6 | — | — | 11.6 | |||||||||||
Corporate debt securities | 533.4 | 2.3 | (0.1 | ) | 535.6 | ||||||||||
Foreign government debt securities | 5.0 | — | — | 5.0 | |||||||||||
Government-sponsored enterprise obligations | 264.6 | 0.3 | — | 264.9 | |||||||||||
U.S. government securities | 328.6 | 0.1 | — | 328.7 | |||||||||||
Total fixed income securities | 1,411.3 | 3.0 | (0.2 | ) | 1,414.1 | ||||||||||
Publicly-traded equity securities | 3.0 | — | (0.1 | ) | 2.9 | ||||||||||
Total available-for-sale securities | 2,745.7 | 3.1 | (0.3 | ) | 2,748.5 | ||||||||||
Trading securities in mutual funds(*) | 12.6 | — | — | 12.6 | |||||||||||
Total | $ | 2,758.3 | $ | 3.1 | $ | (0.3 | ) | $ | 2,761.1 | ||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 1,225.9 | $ | — | $ | — | $ | 1,225.9 | |||||||
Restricted investments | 105.5 | 0.1 | — | 105.6 | |||||||||||
Short-term investments | 441.3 | 0.3 | (0.1 | ) | 441.5 | ||||||||||
Long-term investments | 985.6 | 2.7 | (0.2 | ) | 988.1 | ||||||||||
Total | $ | 2,758.3 | $ | 3.1 | $ | (0.3 | ) | $ | 2,761.1 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Due within one year | $ | 596.3 | $ | 0.4 | $ | — | $ | 596.7 | |||||||
Due between one and five years | 1,013.4 | 2.2 | (0.4 | ) | 1,015.2 | ||||||||||
Total | $ | 1,609.7 | $ | 2.6 | $ | (0.4 | ) | $ | 1,611.9 |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of March 31, 2013 | |||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities | $ | 112.5 | $ | (0.1 | ) | $ | — | $ | — | $ | 112.5 | $ | (0.1 | ) | |||||||||
Corporate debt securities | 180.8 | (0.3 | ) | — | — | 180.8 | (0.3 | ) | |||||||||||||||
Foreign government debt securities | 15.1 | — | — | — | 15.1 | — | |||||||||||||||||
Government-sponsored enterprise obligations | 85.3 | — | — | — | 85.3 | — | |||||||||||||||||
U.S. government securities | 10.0 | — | — | — | 10.0 | — | |||||||||||||||||
Total fixed income securities | 403.7 | (0.4 | ) | — | — | 403.7 | (0.4 | ) | |||||||||||||||
Publicly-traded equity securities | 2.6 | (0.3 | ) | — | — | 2.6 | (0.3 | ) | |||||||||||||||
Total available-for sale securities | $ | 406.3 | $ | (0.7 | ) | $ | — | $ | — | $ | 406.3 | $ | (0.7 | ) |
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, 2012 | |||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities(*) | $ | 55.1 | $ | (0.1 | ) | $ | 0.1 | $ | — | $ | 55.2 | $ | (0.1 | ) | |||||||||
Certificates of deposit | 0.3 | — | — | — | 0.3 | — | |||||||||||||||||
Commercial paper | 10.0 | — | — | — | 10.0 | — | |||||||||||||||||
Corporate debt securities | 116.0 | (0.1 | ) | — | — | 116.0 | (0.1 | ) | |||||||||||||||
Government-sponsored enterprise obligations | 30.0 | — | — | — | 30.0 | — | |||||||||||||||||
U.S. government securities | 68.2 | — | — | — | 68.2 | — | |||||||||||||||||
Total fixed income securities | 279.6 | (0.2 | ) | 0.1 | — | 279.7 | (0.2 | ) | |||||||||||||||
Publicly-traded equity securities | 2.9 | (0.1 | ) | — | — | 2.9 | (0.1 | ) | |||||||||||||||
Total available-for sale securities | $ | 282.5 | $ | (0.3 | ) | $ | 0.1 | $ | — | $ | 282.6 | $ | (0.3 | ) |
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Restricted cash | $ | 1.9 | $ | 0.8 | |||
Restricted investments | 92.5 | 105.6 | |||||
Total restricted cash and investments | $ | 94.4 | $ | 106.4 |
|
Fair Value Measurements at March 31, 2013 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 234.8 | $ | — | $ | 234.8 | |||||||
Certificate of deposit | — | 45.0 | — | 45.0 | |||||||||||
Corporate debt securities | — | 615.7 | — | 615.7 | |||||||||||
Foreign government debt securities | — | 15.8 | — | 15.8 | |||||||||||
Government-sponsored enterprise obligations | 265.6 | 5.0 | — | 270.6 | |||||||||||
Money market funds (1) | 839.1 | — | — | 839.1 | |||||||||||
Mutual funds (2) | 3.0 | — | — | 3.0 | |||||||||||
Publicly-traded equity securities | 2.6 | — | — | 2.6 | |||||||||||
U.S. government securities | 237.2 | 199.1 | — | 436.3 | |||||||||||
Total available-for-sale securities | 1,347.5 | 1,115.4 | — | 2,462.9 | |||||||||||
Trading securities in mutual funds (3) | 13.8 | — | — | 13.8 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 1.6 | — | 1.6 | |||||||||||
Total assets measured at fair value | $ | 1,361.3 | $ | 1,117.0 | $ | — | $ | 2,478.3 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 | |||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 749.6 | $ | 6.3 | $ | — | $ | 755.9 | |||||||
Restricted investments | 92.5 | — | — | 92.5 | |||||||||||
Short-term investments | 262.5 | 350.6 | — | 613.1 | |||||||||||
Long-term investments | 256.7 | 758.5 | — | 1,015.2 | |||||||||||
Prepaid expenses and other current assets | — | 1.6 | — | 1.6 | |||||||||||
Total assets measured at fair value | $ | 1,361.3 | $ | 1,117.0 | $ | — | $ | 2,478.3 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 1.1 | $ | — | $ | 1.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
(1) | Balance includes $89.5 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisition-related escrows. |
(2) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(3) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
Fair Value Measurements at December 31, 2012 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 226.4 | $ | — | $ | 226.4 | |||||||
Certificate of deposit | — | 42.5 | — | 42.5 | |||||||||||
Commercial paper | — | 22.4 | — | 22.4 | |||||||||||
Corporate debt securities | — | 535.6 | — | 535.6 | |||||||||||
Foreign government debt securities | — | 5.0 | — | 5.0 | |||||||||||
Government-sponsored enterprise obligations | 254.9 | 16.1 | — | 271.0 | |||||||||||
Money market funds (1) | 1,145.2 | — | — | 1,145.2 | |||||||||||
Mutual funds (2) | 1.0 | 2.0 | — | 3.0 | |||||||||||
Publicly-traded equity securities | 2.9 | — | — | 2.9 | |||||||||||
U.S. government securities | 275.9 | 218.6 | — | 494.5 | |||||||||||
Total available-for-sale securities | 1,679.9 | 1,068.6 | — | 2,748.5 | |||||||||||
Trading securities in mutual funds (3) | 12.6 | — | — | 12.6 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 3.5 | — | 3.5 | |||||||||||
Total assets measured at fair value | $ | 1,692.5 | $ | 1,072.1 | $ | — | $ | 2,764.6 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 1,048.7 | $ | 177.2 | $ | — | $ | 1,225.9 | |||||||
Restricted investments | 103.6 | 2.0 | — | 105.6 | |||||||||||
Short-term investments | 224.4 | 217.1 | — | 441.5 | |||||||||||
Long-term investments | 315.8 | 672.3 | — | 988.1 | |||||||||||
Prepaid expenses and other current assets | — | 3.5 | — | 3.5 | |||||||||||
Total assets measured at fair value | $ | 1,692.5 | $ | 1,072.1 | $ | — | $ | 2,764.6 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 |
(1) | Balance includes $102.6 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisition-related escrows. |
(2) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(3) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
|
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Cash flow hedges | $ | 67.6 | $ | 85.8 | |||
Non-designated derivatives | 114.4 | 112.8 | |||||
Total | $ | 182.0 | $ | 198.6 |
|
PSD | SSD | Total | |||||||||
Balance as of December 31, 2012 | $ | 1,866.3 | $ | 2,191.5 | $ | 4,057.8 | |||||
Reclassifications | (179.0 | ) | 179.0 | — | |||||||
Balance as of March 31, 2013 | $ | 1,687.3 | $ | 2,370.5 | $ | 4,057.8 |
Gross | Accumulated Amortization | Impairments and Other Charges | Net | ||||||||||||
As of March 31, 2013 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 564.0 | $ | (431.7 | ) | $ | (30.5 | ) | $ | 101.8 | |||||
Customer contracts, support agreements, and related relationships | 74.3 | (60.1 | ) | (2.2 | ) | 12.0 | |||||||||
Other | 18.8 | (18.8 | ) | — | — | ||||||||||
Total intangible assets with finite lives | 657.1 | (510.6 | ) | (32.7 | ) | 113.8 | |||||||||
IPR&D with indefinite lives | 17.4 | — | — | 17.4 | |||||||||||
Total purchased intangible assets | $ | 674.5 | $ | (510.6 | ) | $ | (32.7 | ) | $ | 131.2 | |||||
As of December 31, 2012 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 554.1 | $ | (425.0 | ) | $ | (30.5 | ) | $ | 98.6 | |||||
Customer contracts, support agreements, and related relationships | 74.3 | (59.2 | ) | (2.2 | ) | 12.9 | |||||||||
Other | 18.8 | (18.8 | ) | — | — | ||||||||||
Total intangible assets with finite lives | 647.2 | (503.0 | ) | (32.7 | ) | 111.5 | |||||||||
IPR&D with indefinite lives | 17.4 | — | — | 17.4 | |||||||||||
Total purchased intangible assets | $ | 664.6 | $ | (503.0 | ) | $ | (32.7 | ) | $ | 128.9 |
Years Ending December 31, | Amount | ||
Remainder of 2013 | $ | 22.9 | |
2014 | 30.4 | ||
2015 | 26.8 | ||
2016 | 14.2 | ||
2017 | 10.5 | ||
Thereafter | 9.0 | ||
Total | $ | 113.8 |
|
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Inventories, net: | |||||||
Production materials | $ | 50.1 | $ | 54.6 | |||
Finished goods | 4.0 | 4.1 | |||||
Total inventories, net | $ | 54.1 | $ | 58.7 |
Balance as of December 31, 2012 | $ | 29.7 | |
Provisions made during the period, net | 7.3 | ||
Change in estimate | (0.3 | ) | |
Actual costs incurred during the period | (7.3 | ) | |
Balance as of March 31, 2013 | $ | 29.4 |
As of | |||||||
March 31, 2013 | December 31, 2012 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 250.5 | $ | 256.9 | |||
Distributor inventory and other sell-through items | 122.7 | 138.4 | |||||
Deferred gross product revenue | 373.2 | 395.3 | |||||
Deferred cost of product revenue | (86.4 | ) | (99.4 | ) | |||
Deferred product revenue, net | 286.8 | 295.9 | |||||
Deferred service revenue | 693.9 | 627.5 | |||||
Total | $ | 980.7 | $ | 923.4 | |||
Reported as: | |||||||
Current | $ | 774.7 | $ | 693.5 | |||
Long-term | 206.0 | 229.9 | |||||
Total | $ | 980.7 | $ | 923.4 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Interest income | $ | 2.1 | $ | 2.8 | |||
Interest expense | (14.3 | ) | (14.2 | ) | |||
Other | 2.1 | (13.0 | ) | ||||
Other expense, net | $ | (10.1 | ) | $ | (24.4 | ) |
|
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Severance | $ | 4.4 | $ | 3.0 | |||
Facilities | 2.6 | (0.2 | ) | ||||
Contract terminations and other | 0.7 | (0.8 | ) | ||||
Total | $ | 7.7 | $ | 2.0 |
December 31, 2012 | Charges | Cash Payments | Non-cash Settlements and Other | March 31, 2013 | |||||||||||||||
Severance | $ | 10.6 | $ | 4.4 | $ | (8.2 | ) | $ | (0.1 | ) | $ | 6.7 | |||||||
Facilities | 5.2 | 2.6 | (1.8 | ) | (0.2 | ) | 5.8 | ||||||||||||
Contract terminations and other | 2.4 | 0.7 | (2.1 | ) | 0.5 | 1.5 | |||||||||||||
Total | $ | 18.2 | $ | 7.7 | $ | (12.1 | ) | $ | 0.2 | $ | 14.0 |
|
As of March 31, 2013 | ||||||
Amount | Effective Interest Rates | |||||
Senior notes: | ||||||
3.10% fixed-rate notes, due 2016 ("2016 Notes") | $ | 300.0 | 3.12 | % | ||
4.60% fixed-rate notes, due 2021 ("2021 Notes") | 300.0 | 4.63 | % | |||
5.95% fixed-rate notes, due 2041 ("2041 Notes") | 400.0 | 6.01 | % | |||
Total senior notes | 1,000.0 | |||||
Unaccreted discount | (0.8 | ) | ||||
Total | $ | 999.2 |
|
Unrealized Gains (Losses) on Available-for- Sale Securities(1) | Unrealized Gains (Losses) on Cash Flow Hedges(2) | Foreign Currency Translation Adjustments | Total | ||||||||||||
Balance as of December 31, 2012 | $ | 2.1 | $ | 3.0 | $ | (0.4 | ) | $ | 4.7 | ||||||
Other comprehensive loss before reclassifications | (0.2 | ) | (2.1 | ) | (5.8 | ) | (8.1 | ) | |||||||
Amount reclassified from accumulated other comprehensive (loss) income | (0.4 | ) | (1.4 | ) | — | (1.8 | ) | ||||||||
Other comprehensive loss(3) | (0.6 | ) | (3.5 | ) | (5.8 | ) | (9.9 | ) | |||||||
Balance as of March 31, 2013 | $ | 1.5 | $ | (0.5 | ) | $ | (6.2 | ) | $ | (5.2 | ) |
(1) | The reclassifications out of accumulated comprehensive income during the three months ended March 31, 2013 for realized gains on available-for-sale securities of $0.4 million are included in other expense, net in the Condensed Consolidated Statements of Operations. |
(2) | The reclassifications out of accumulated comprehensive income during the three months ended March 31, 2013 for realized gains on cash flow hedges are included within cost of revenues of $0.2 million, research and development of $0.4 million, sales and marketing of $0.5 million, and general and administrative of $0.3 million for which the hedged transactions relate in the Condensed Consolidated Statements of Operations. |
(3) | Taxes related to each component of other comprehensive loss were not material for the three months ended March 31, 2013 and March 31, 2012. |
|
Outstanding Options | ||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2012 | 34.1 | $ | 24.13 | |||||||||
Options granted | — | — | ||||||||||
Options canceled | (0.4 | ) | 31.35 | |||||||||
Options exercised | (2.3 | ) | 16.17 | |||||||||
Options expired | (1.4 | ) | 27.73 | |||||||||
Balance as of March 31, 2013 | 30.0 | $ | 24.46 | 3.1 | $ | 35.8 | ||||||
As of March 31, 2013: | ||||||||||||
Vested and expected-to-vest options | 29.2 | $ | 24.50 | 3.0 | $ | 32.5 | ||||||
Exercisable options | 24.5 | $ | 24.33 | 2.4 | $ | 18.8 |
Outstanding RSUs, RSAs, and PSAs | ||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2012 | 26.8 | $ | 27.76 | |||||||||
RSUs granted | 7.7 | 20.41 | ||||||||||
PSAs granted (*) | 2.0 | 21.36 | ||||||||||
RSUs vested | (3.8 | ) | 28.80 | |||||||||
PSAs vested | (1.0 | ) | 28.26 | |||||||||
RSAs vested | (0.2 | ) | 19.59 | |||||||||
RSUs canceled | (0.7 | ) | 24.20 | |||||||||
PSAs canceled | (1.8 | ) | 29.05 | |||||||||
Balance as of March 31, 2013 | 29.0 | $ | 25.28 | 1.7 | $ | 538.4 | ||||||
As of March 31, 2013: | ||||||||||||
Vested and expected-to-vest RSUs, RSAs, and PSAs | 24.9 | $ | 23.95 | 1.6 | $ | 461.3 |
(*) | The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 1.0 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.0 million shares. |
Three Months Ended March 31, | |||
2013 | 2012 | ||
Stock Options: | |||
Volatility | — | 46% | |
Risk-free interest rate | — | 0.8% | |
Expected life (years) | — | 4.2 | |
Dividend yield | — | — | |
Weighted-average fair value per share | — | $8.51 | |
ESPP: | |||
Volatility | 36% | 51% | |
Risk-free interest rate | 0.1% | 0.1% | |
Expected life (years) | 0.5 | 0.5 | |
Dividend yield | — | — | |
Weighted-average fair value per share | $5.63 | $6.38 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Cost of revenues - Product | $ | 0.9 | $ | 1.0 | |||
Cost of revenues - Service | 4.6 | 5.3 | |||||
Research and development | 23.6 | 25.8 | |||||
Sales and marketing | 14.5 | 21.9 | |||||
General and administrative | 6.3 | 11.0 | |||||
Total | $ | 49.9 | $ | 65.0 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Stock options | $ | 9.5 | $ | 17.7 | |||
RSUs and PSAs | 33.7 | 41.8 | |||||
RSAs | 3.3 | — | |||||
ESPP | 3.4 | 5.5 | |||||
Total | $ | 49.9 | $ | 65.0 |
Unrecognized Compensation Cost | Weighted Average Period (In Years) | ||||
Stock options | $ | 59.0 | 2.3 | ||
RSUs and PSAs | 342.7 | 2.2 | |||
RSAs | $ | 65.2 | 3.2 |
|
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Net revenues: | |||||||
PSD | $ | 809.2 | $ | 765.7 | |||
SSD | 250.0 | 266.8 | |||||
Total net revenues | $ | 1,059.2 | $ | 1,032.5 | |||
Segment contribution margin: | |||||||
PSD | $ | 330.1 | $ | 276.3 | |||
SSD | 102.0 | 110.3 | |||||
Total segment contribution margin | $ | 432.1 | $ | 386.6 | |||
Corporate unallocated expenses(1) | $ | (266.1 | ) | $ | (263.1 | ) | |
Amortization of purchased intangible assets(2) | (7.5 | ) | (7.3 | ) | |||
Share-based compensation expense | (49.9 | ) | (65.0 | ) | |||
Share-based payroll tax expense | (3.5 | ) | (0.3 | ) | |||
Restructuring charges(3) | (7.7 | ) | (2.0 | ) | |||
Acquisition and litigation charges | (10.4 | ) | (1.2 | ) | |||
Total operating income | 87.0 | 47.7 | |||||
Other expense, net | (10.1 | ) | (24.4 | ) | |||
Income before income taxes | $ | 76.9 | $ | 23.3 |
(1) | Amount includes unallocated costs for global functions such as sales, marketing, and general and administrative. |
(2) | Amount includes amortization expense of purchased intangible assets reported in operating expenses and in cost of revenues. |
(3) | Amount includes restructuring charges reported in operating expenses and in cost of revenues. |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Americas: | |||||||
United States | $ | 547.0 | $ | 468.4 | |||
Other | 45.1 | 62.9 | |||||
Total Americas | 592.1 | 531.3 | |||||
Europe, Middle East, and Africa | 290.6 | 307.1 | |||||
Asia Pacific | 176.5 | 194.1 | |||||
Total | $ | 1,059.2 | $ | 1,032.5 |
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