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2011 Acquisitions | |||
Net tangible assets acquired | $ | 1.7 | |
Intangible assets acquired | 28.4 | ||
Goodwill | 0.4 | ||
Total | $ | 30.5 |
2011 Acquisitions | ||||
Estimated Useful Life (In Years) | Amount | |||
Existing or Core technology | 10 | $ | 21.9 | |
Support agreements and related relationships | 4 | 5.1 | ||
Patents | 5 | 1.4 | ||
Total | $ | 28.4 |
|
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Cash: | |||||||
Demand deposits | $ | 475.9 | $ | 413.0 | |||
Time deposits | 400.9 | 273.3 | |||||
Total cash | 876.8 | 686.3 | |||||
Cash equivalents: | |||||||
U.S. government securities | 146.5 | 76.7 | |||||
Government-sponsored enterprise obligations | 37.8 | 5.0 | |||||
Certificates of deposit | 5.6 | — | |||||
Commercial paper | 21.0 | 4.0 | |||||
Money market funds | 1,856.7 | 1,039.9 | |||||
Total cash equivalents | 2,067.6 | 1,125.6 | |||||
Total cash and cash equivalents | $ | 2,944.4 | $ | 1,811.9 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of March 31, 2011: | |||||||||||||||
Fixed income securities: | |||||||||||||||
U.S. government securities | $ | 172.5 | $ | 0.1 | $ | — | $ | 172.6 | |||||||
Government-sponsored enterprise obligations | 266.5 | 0.3 | (0.3 | ) | 266.5 | ||||||||||
Foreign government debt securities | 23.7 | 0.1 | — | 23.8 | |||||||||||
Certificates of deposit | 35.8 | 0.1 | — | 35.9 | |||||||||||
Commercial paper | 31.0 | — | — | 31.0 | |||||||||||
Asset-backed securities | 112.3 | 0.1 | (0.1 | ) | 112.3 | ||||||||||
Corporate debt securities | 484.7 | 1.9 | (0.3 | ) | 486.3 | ||||||||||
Total fixed income securities | 1,126.5 | 2.6 | (0.7 | ) | 1,128.4 | ||||||||||
Total available-for-sale securities | 1,126.5 | 2.6 | (0.7 | ) | 1,128.4 | ||||||||||
Trading securities | 10.8 | — | — | 10.8 | |||||||||||
Total | $ | 1,137.3 | $ | 2.6 | $ | (0.7 | ) | $ | 1,139.2 | ||||||
Reported as: | |||||||||||||||
Short-term investments | $ | 492.4 | $ | 1.2 | $ | — | $ | 493.6 | |||||||
Long-term investments | 644.9 | 1.4 | (0.7 | ) | 645.6 | ||||||||||
Total | $ | 1,137.3 | $ | 2.6 | $ | (0.7 | ) | $ | 1,139.2 |
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 | |||||||||||
Certificates 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 | ||||||||||||
Due within one year | $ | 481.6 | $ | 1.2 | $ | — | $ | 482.8 | |||||||
Due between one and five years | 644.9 | 1.4 | (0.7 | ) | 645.6 | ||||||||||
No contractual maturity | 10.8 | — | — | 10.8 | |||||||||||
Total | $ | 1,137.3 | $ | 2.6 | $ | (0.7 | ) | $ | 1,139.2 |
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, 2011 | |||||||||||||||||||||||
Corporate debt securities (1) | $ | 152.5 | $ | (0.3 | ) | $ | 13.8 | $ | — | $ | 166.3 | $ | (0.3 | ) | |||||||||
U.S. government securities | 81.2 | — | — | — | 81.2 | — | |||||||||||||||||
Government-sponsored enterprise obligations | 185.5 | (0.3 | ) | — | — | 185.5 | (0.3 | ) | |||||||||||||||
Asset-backed securities | 59.8 | (0.1 | ) | — | — | 59.8 | (0.1 | ) | |||||||||||||||
Total | $ | 479.0 | $ | (0.7 | ) | $ | 13.8 | $ | — | $ | 492.8 | $ | (0.7 | ) |
(1) | Balance includes investments that were in an immaterial unrealized loss position 12 months or greater as of March 31, 2011. |
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. |
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Restricted cash: | |||||||
Demand deposits | $ | 1.7 | $ | 1.7 | |||
Total restricted cash | 1.7 | 1.7 | |||||
Restricted investments: | |||||||
U.S. government securities | 0.6 | 0.6 | |||||
Corporate debt securities | 1.6 | 2.7 | |||||
Mutual funds | 1.1 | — | |||||
Money market funds | 97.1 | 114.3 | |||||
Total restricted investments | 100.4 | 117.6 | |||||
Total restricted cash and investments | $ | 102.1 | $ | 119.3 |
|
Fair Value Measurements at March 31, 2011 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) | $ | 99.2 | $ | 220.5 | $ | — | $ | 319.7 | |||||||
Government-sponsored enterprise obligations | 236.9 | 67.4 | — | 304.3 | |||||||||||
Foreign government debt securities | — | 23.8 | — | 23.8 | |||||||||||
Commercial paper | — | 52.0 | — | 52.0 | |||||||||||
Corporate debt securities (2) | — | 487.9 | — | 487.9 | |||||||||||
Certificate of deposit | — | 41.5 | — | 41.5 | |||||||||||
Asset-backed securities | — | 112.3 | — | 112.3 | |||||||||||
Money market funds (3) | 1,953.8 | — | — | 1,953.8 | |||||||||||
Total available-for-sale debt securities | 2,289.9 | 1,005.4 | — | 3,295.3 | |||||||||||
Total available-for-sale securities | 2,289.9 | 1,005.4 | — | 3,295.3 | |||||||||||
Trading securities: | |||||||||||||||
Mutual funds (4) | 11.9 | — | — | 11.9 | |||||||||||
Total trading securities | 11.9 | — | — | 11.9 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 2.0 | — | 2.0 | |||||||||||
Total derivative assets | — | 2.0 | — | 2.0 | |||||||||||
Total assets measured at fair value | $ | 2,301.8 | $ | 1,007.4 | $ | — | $ | 3,309.2 |
(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 condensed consolidated balance sheet. |
(2) | Balance includes $1.6 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust. |
(3) | Balance includes $97.1 million of restricted investments measured at fair market value, related to the Company's D&O trust. |
(4) | Balance includes $1.1 million of restricted investments measured at fair market value, related to the Company's India Gratuity 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 | ||||||||||||
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 condensed 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 March 31, 2011 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 | $ | 1,856.7 | $ | 210.9 | $ | — | $ | 2,067.6 | |||||||
Short-term investments | 122.4 | 371.2 | — | 493.6 | |||||||||||
Long-term investments | 224.5 | 421.1 | — | 645.6 | |||||||||||
Restricted cash | 98.2 | 2.2 | — | 100.4 | |||||||||||
Prepaid expenses and other current assets | — | 2.0 | — | 2.0 | |||||||||||
Total assets measured at fair value | $ | 2,301.8 | $ | 1,007.4 | $ | — | $ | 3,309.2 |
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 |
|
Infrastructure | SLT | Total | |||||||||
Balance as of January 1, 2011 | |||||||||||
Goodwill | $ | 1,643.4 | $ | 3,564.4 | $ | 5,207.8 | |||||
Accumulated impairment losses | — | (1,280.0 | ) | (1,280.0 | ) | ||||||
Carrying value at January 1, 2011 | 1,643.4 | 2,284.4 | 3,927.8 | ||||||||
Adjustments to goodwill | (0.9 | ) | — | (0.9 | ) | ||||||
Goodwill acquired during the three months ended March 31, 2011 | 0.4 | — | 0.4 | ||||||||
Balance as of March 31, 2011 | |||||||||||
Goodwill | 1,642.9 | 3,564.4 | 5,207.3 | ||||||||
Accumulated impairment losses | — | (1,280.0 | ) | (1,280.0 | ) | ||||||
Carrying value at March 31, 2011 | $ | 1,642.9 | $ | 2,284.4 | $ | 3,927.3 |
Gross | Accumulated Amortization | Additions | Net | ||||||||||||
As of March 31, 2011: | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 471.1 | $ | (386.9 | ) | $ | 23.3 | $ | 107.5 | ||||||
Other | 86.4 | (63.4 | ) | 5.1 | 28.1 | ||||||||||
Total intangible assets with finite lives | 557.5 | (450.3 | ) | 28.4 | 135.6 | ||||||||||
IPR&D with indefinite lives | 7.9 | — | — | 7.9 | |||||||||||
Total purchased intangible assets | $ | 565.4 | $ | (450.3 | ) | $ | 28.4 | $ | 143.5 | ||||||
As of December 31, 2010: | |||||||||||||||
Intangible assets with finite 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 finite lives | 448.9 | (443.6 | ) | 108.6 | 113.9 | ||||||||||
IPR&D with indefinite lives | — | — | 7.9 | 7.9 | |||||||||||
Total purchased intangible assets | $ | 448.9 | $ | (443.6 | ) | $ | 116.5 | $ | 121.8 |
Years Ending December 31, | Amount | |||
2011 (remaining nine months) | $ | 20.1 | ||
2012 | 26.4 | |||
2013 | 26.1 | |||
2014 | 24.3 | |||
2015 | 19.3 | |||
Thereafter | 19.4 | |||
Total | $ | 135.6 |
|
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Beginning balance | $ | 35.9 | $ | 38.2 | |||
Provisions made during the period, net | 15.3 | 12.1 | |||||
Change in estimate | (0.8 | ) | (0.5 | ) | |||
Actual costs incurred during the period | (12.1 | ) | (12.0 | ) | |||
Ending balance | $ | 38.3 | $ | 37.8 |
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 303.1 | $ | 294.1 | |||
Distributor inventory and other sell-through items | 141.8 | 143.4 | |||||
Deferred gross product revenue | 444.9 | 437.5 | |||||
Deferred cost of product revenue | (143.0 | ) | (148.8 | ) | |||
Deferred product revenue, net | 301.9 | 288.7 | |||||
Deferred service revenue | 648.4 | 595.7 | |||||
Total | $ | 950.3 | $ | 884.4 | |||
Reported as: | |||||||
Current | $ | 733.3 | $ | 660.2 | |||
Long-term | 217.0 | 224.2 | |||||
Total | $ | 950.3 | $ | 884.4 |
Remaining Liability as of December 31, 2010 | Charges | Cash payments | Adjustments | Remaining Liability as of March 31, 2011 | |||||||||||||||
Facilities | $ | 7.7 | $ | — | $ | (0.7 | ) | $ | — | $ | 7.0 | ||||||||
Severance, contractual commitments, and other charges | 0.2 | — | 0.3 | (0.3 | ) | 0.2 | |||||||||||||
Total | $ | 7.9 | $ | — | $ | (0.4 | ) | $ | (0.3 | ) | $ | 7.2 |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Interest income | $ | 2.4 | $ | 2.5 | |||
Interest expense | (6.5 | ) | (1.6 | ) | |||
Other income and expense, net | (2.4 | ) | 0.6 | ||||
Total | $ | (6.5 | ) | $ | 1.5 |
|
March 31, 2011 | ||||||
Amount | Effective Interest Rate | |||||
Senior notes: | ||||||
3.10% fixed-rate notes, due 2016 | $ | 300.0 | 3.12 | % | ||
4.60% fixed-rate notes, due 2021 | 300.0 | 4.63 | % | |||
5.95% fixed-rate notes, due 2041 | 400.0 | 6.01 | % | |||
Total senior notes | 1,000.0 | |||||
Unaccreted discount | (1.1 | ) | ||||
Total | $ | 998.9 |
|
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Cash flow hedges | $ | 125.6 | $ | 110.4 | |||
Non-designated hedges | 148.6 | 74.4 | |||||
Total | $ | 274.2 | $ | 184.8 |
|
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Consolidated net income | $ | 129.7 | $ | 164.6 | |||
Other comprehensive income, net of tax: | |||||||
Change in unrealized gain (loss) on investments, net tax of nil | 4.4 | (0.4 | ) | ||||
Change in foreign currency translation adjustment, net tax of nil | 6.6 | (2.7 | ) | ||||
Total other comprehensive income (loss), net of tax | 11.0 | (3.1 | ) | ||||
Consolidated comprehensive income | 140.7 | 161.5 | |||||
Adjust for comprehensive income attributable to noncontrolling interest | 0.1 | (1.5 | ) | ||||
Comprehensive income attributable to Juniper Networks | $ | 140.8 | $ | 160.0 |
Common Stock & Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non- controlling Interest | Total Equity | |||||||||||||||
Balance at December 31, 2010 | $ | 9,717.8 | $ | (1.3 | ) | $ | (3,108.3 | ) | $ | 0.6 | $ | 6,608.8 | |||||||
Consolidated net income | — | — | 129.8 | (0.1 | ) | 129.7 | |||||||||||||
Change in unrealized loss on investments, net tax of nil | — | 4.4 | — | — | 4.4 | ||||||||||||||
Change in foreign currency translation adjustment, net tax of nil | — | 6.6 | — | — | 6.6 | ||||||||||||||
Issuance of shares in connection with Employee Stock Purchase Plan | 23.7 | — | — | — | 23.7 | ||||||||||||||
Exercise of stock options by employees | 241.7 | — | — | — | 241.7 | ||||||||||||||
Repurchase and retirement of common stock | (70.3 | ) | — | (129.9 | ) | — | (200.2 | ) | |||||||||||
Repurchases related to net issuances | (1.8 | ) | — | (3.1 | ) | — | (4.9 | ) | |||||||||||
Share-based compensation expense | 47.6 | — | — | — | 47.6 | ||||||||||||||
Adjustment related to tax benefit from employee stock option plans | 39.4 | — | — | — | 39.4 | ||||||||||||||
Balance at March 31, 2011 | $ | 9,998.1 | $ | 9.7 | $ | (3,111.5 | ) | $ | 0.5 | $ | 6,896.8 |
Common Stock & Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non- controlling Interest | Total Equity | |||||||||||||||
Balance at December 31, 2009 | $ | 9,060.1 | $ | (1.4 | ) | $ | (3,236.5 | ) | $ | 2.6 | $ | 5,824.8 | |||||||
Consolidated net income | — | — | 163.1 | 1.5 | 164.6 | ||||||||||||||
Change in unrealized loss on investments, net tax of nil | — | (0.4 | ) | — | — | (0.4 | ) | ||||||||||||
Change in foreign currency translation adjustment, net tax of nil | — | (2.7 | ) | — | — | (2.7 | ) | ||||||||||||
Issuance of shares in connection with Employee Stock Purchase Plan | 20.8 | — | — | — | 20.8 | ||||||||||||||
Exercise of stock options by employees | 101.2 | — | — | — | 101.2 | ||||||||||||||
Return of capital to noncontrolling interest | — | — | — | (2.0 | ) | (2.0 | ) | ||||||||||||
Repurchase and retirement of common stock | (5.7 | ) | — | (68.7 | ) | — | (74.4 | ) | |||||||||||
Repurchases related to net issuances | — | — | (1.8 | ) | — | (1.8 | ) | ||||||||||||
Share-based compensation expense | 40.6 | — | — | — | 40.6 | ||||||||||||||
Adjustment related to tax benefit from employee stock option plans | 50.6 | — | — | — | 50.6 | ||||||||||||||
Balance at March 31, 2010 | $ | 9,267.6 | $ | (4.5 | ) | $ | (3,143.9 | ) | $ | 2.1 | $ | 6,121.3 |
|
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | ||||||||||
Balance at January 1, 2011 | 49.4 | $ | 21.90 | ||||||||||
Options granted | 4.2 | 41.46 | |||||||||||
Options canceled | (0.5 | ) | 23.17 | ||||||||||
Options exercised | (11.2 | ) | 21.58 | ||||||||||
Options expired | (0.1 | ) | 67.10 | ||||||||||
Balance at March 31, 2011 | 41.8 | $ | 23.88 | 4.4 | $ | 764.8 | |||||||
As of March 31, 2011: | |||||||||||||
Vested or expected-to-vest options | 39.0 | $ | 23.41 | 4.3 | $ | 730.2 | |||||||
Exercisable options | 23.9 | $ | 20.98 | 3.4 | $ | 504.8 |
Outstanding RSUs and PSAs | |||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | ||||||||||
Balance at January 1, 2011 | 14.2 | $ | 25.94 | ||||||||||
RSUs granted | 3.7 | 40.06 | |||||||||||
PSAs granted (1) | 3.6 | 41.53 | |||||||||||
RSUs vested | (1.2 | ) | 21.90 | ||||||||||
PSAs vested | (0.5 | ) | 25.80 | ||||||||||
RSUs canceled | (0.1 | ) | 25.62 | ||||||||||
PSAs canceled | (0.4 | ) | 23.82 | ||||||||||
Balance at March 31, 2011: | 19.3 | $ | 31.80 | 2.1 | $ | 819.7 | |||||||
As of March 31, 2011: | |||||||||||||
Vested and expected-to-vest RSUs and PSAs | 16.0 | $ | 31.34 | 2.0 | $ | 673.2 |
(1) | 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 1.7 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 3.6 million shares. |
Number of Shares | ||
Balance at January 1, 2011 | 30.7 | |
RSUs and PSAs granted (1) | (15.4 | ) |
Options granted | (4.2 | ) |
RSUs and PSAs canceled (1) | 1.1 | |
Options canceled (2) | 0.5 | |
Options expired (2) | 0.1 | |
Balance at March 31, 2011 | 12.8 |
(1) | RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted represents the maximum number of shares that may be issued pursuant to the award over its full term. |
(2) | Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired unexercised after May 18, 2006, which become available for grant under the 2006 Plan according to its terms. |
Three Months Ended March 31, | |||
2011 | 2010 | ||
Employee Stock Options: | |||
Volatility factor | 41% - 42% | 37% - 41% | |
Risk-free interest rate | 1.6% - 1.9% | 2.1% - 2.2% | |
Expected life (years) | 4.1 | 4.3 | |
Dividend yield | — | — | |
Fair value per share | $12.07- $15.22 | $9.31 - $9.92 | |
Employee Stock Purchase Plan: | |||
Volatility factor | 33% | 35% | |
Risk-free interest rate | 1.8% | 1.7% | |
Expected life (years) | 0.5 | 0.5 | |
Dividend yield | — | — | |
Weighted-average fair value per share | $9.07 | $6.19 |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Cost of revenues - Product | $ | 1.0 | $ | 1.1 | |||
Cost of revenues - Service | 3.9 | 3.6 | |||||
Research and development | 22.3 | 17.0 | |||||
Sales and marketing | 13.2 | 11.7 | |||||
General and administrative | 8.6 | 7.2 | |||||
Total | $ | 49.0 | $ | 40.6 |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Options | $ | 19.7 | $ | 20.1 | |||
RSUs and PSAs | 23.4 | 16.3 | |||||
Employee stock purchase plan | 4.4 | 4.2 | |||||
Other acquisition-related compensation | 1.5 | — | |||||
Total | $ | 49.0 | $ | 40.6 |
|
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Net revenues: | |||||||
Infrastructure: | |||||||
Routers | $ | 748.9 | $ | 601.5 | |||
Switches | 105.8 | 77.2 | |||||
Total Infrastructure | 854.7 | 678.7 | |||||
SLT | 246.9 | 233.9 | |||||
Total net revenues | 1,101.6 | 912.6 | |||||
Segment operating income: | |||||||
Infrastructure | 209.5 | 176.5 | |||||
SLT | 36.4 | 35.1 | |||||
Total segment operating income | 245.9 | 211.6 | |||||
Amortization of purchased intangible assets (1) | (6.7 | ) | (1.1 | ) | |||
Share-based compensation expense | (49.0 | ) | (40.6 | ) | |||
Share-based payroll tax expense | (8.0 | ) | (1.6 | ) | |||
Restructuring charges | 0.3 | (8.1 | ) | ||||
Acquisition-related | (5.1 | ) | — | ||||
Total operating income | 177.4 | 160.2 | |||||
Other (expense) income, net | (6.5 | ) | 1.5 | ||||
Income before income taxes and noncontrolling interest | $ | 170.9 | $ | 161.7 |
(1) | Amount includes amortization expense of purchased intangible assets in operating expenses and in cost of revenues. |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Americas: | |||||||
United States | $ | 526.0 | $ | 447.0 | |||
Other | 55.6 | 41.5 | |||||
Total Americas | 581.6 | 488.5 | |||||
Europe, Middle East, and Africa | 299.9 | 264.0 | |||||
Asia Pacific | 220.1 | 160.1 | |||||
Total | $ | 1,101.6 | $ | 912.6 |
|
|
Total | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | Other | ||||||||||||||||||||||||
Operating leases | $ | 357.3 | $ | 42.5 | $ | 52.3 | $ | 44.8 | $ | 58.2 | $ | 47.3 | $ | 112.2 | $ | — | |||||||||||||||
Purchase commitments | 171.8 | 171.8 | — | — | — | — | — | — | |||||||||||||||||||||||
Tax liabilities | 101.6 | — | — | — | — | — | — | 101.6 | |||||||||||||||||||||||
Long-term debt | 1,000.0 | — | — | — | — | — | 1,000.0 | — | |||||||||||||||||||||||
Interest payment on long-term debt | 900.2 | 27.1 | 46.9 | 46.9 | 46.9 | 46.9 | 685.5 | — | |||||||||||||||||||||||
Other contractual obligations | 75.3 | 54.3 | 11.2 | 4.8 | 3.0 | 2.0 | — | — | |||||||||||||||||||||||
Total | $ | 2,606.2 | $ | 295.7 | $ | 110.4 | $ | 96.5 | $ | 108.1 | $ | 96.2 | $ | 1,797.7 | $ | 101.6 |
|
|
|
2011 Acquisitions | |||
Net tangible assets acquired | $ | 1.7 | |
Intangible assets acquired | 28.4 | ||
Goodwill | 0.4 | ||
Total | $ | 30.5 |
2011 Acquisitions | ||||
Estimated Useful Life (In Years) | Amount | |||
Existing or Core technology | 10 | $ | 21.9 | |
Support agreements and related relationships | 4 | 5.1 | ||
Patents | 5 | 1.4 | ||
Total | $ | 28.4 |
|
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Cash: | |||||||
Demand deposits | $ | 475.9 | $ | 413.0 | |||
Time deposits | 400.9 | 273.3 | |||||
Total cash | 876.8 | 686.3 | |||||
Cash equivalents: | |||||||
U.S. government securities | 146.5 | 76.7 | |||||
Government-sponsored enterprise obligations | 37.8 | 5.0 | |||||
Certificates of deposit | 5.6 | — | |||||
Commercial paper | 21.0 | 4.0 | |||||
Money market funds | 1,856.7 | 1,039.9 | |||||
Total cash equivalents | 2,067.6 | 1,125.6 | |||||
Total cash and cash equivalents | $ | 2,944.4 | $ | 1,811.9 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of March 31, 2011: | |||||||||||||||
Fixed income securities: | |||||||||||||||
U.S. government securities | $ | 172.5 | $ | 0.1 | $ | — | $ | 172.6 | |||||||
Government-sponsored enterprise obligations | 266.5 | 0.3 | (0.3 | ) | 266.5 | ||||||||||
Foreign government debt securities | 23.7 | 0.1 | — | 23.8 | |||||||||||
Certificates of deposit | 35.8 | 0.1 | — | 35.9 | |||||||||||
Commercial paper | 31.0 | — | — | 31.0 | |||||||||||
Asset-backed securities | 112.3 | 0.1 | (0.1 | ) | 112.3 | ||||||||||
Corporate debt securities | 484.7 | 1.9 | (0.3 | ) | 486.3 | ||||||||||
Total fixed income securities | 1,126.5 | 2.6 | (0.7 | ) | 1,128.4 | ||||||||||
Total available-for-sale securities | 1,126.5 | 2.6 | (0.7 | ) | 1,128.4 | ||||||||||
Trading securities | 10.8 | — | — | 10.8 | |||||||||||
Total | $ | 1,137.3 | $ | 2.6 | $ | (0.7 | ) | $ | 1,139.2 | ||||||
Reported as: | |||||||||||||||
Short-term investments | $ | 492.4 | $ | 1.2 | $ | — | $ | 493.6 | |||||||
Long-term investments | 644.9 | 1.4 | (0.7 | ) | 645.6 | ||||||||||
Total | $ | 1,137.3 | $ | 2.6 | $ | (0.7 | ) | $ | 1,139.2 |
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 | |||||||||||
Certificates 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 | ||||||||||||
Due within one year | $ | 481.6 | $ | 1.2 | $ | — | $ | 482.8 | |||||||
Due between one and five years | 644.9 | 1.4 | (0.7 | ) | 645.6 | ||||||||||
No contractual maturity | 10.8 | — | — | 10.8 | |||||||||||
Total | $ | 1,137.3 | $ | 2.6 | $ | (0.7 | ) | $ | 1,139.2 |
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, 2011 | |||||||||||||||||||||||
Corporate debt securities (1) | $ | 152.5 | $ | (0.3 | ) | $ | 13.8 | $ | — | $ | 166.3 | $ | (0.3 | ) | |||||||||
U.S. government securities | 81.2 | — | — | — | 81.2 | — | |||||||||||||||||
Government-sponsored enterprise obligations | 185.5 | (0.3 | ) | — | — | 185.5 | (0.3 | ) | |||||||||||||||
Asset-backed securities | 59.8 | (0.1 | ) | — | — | 59.8 | (0.1 | ) | |||||||||||||||
Total | $ | 479.0 | $ | (0.7 | ) | $ | 13.8 | $ | — | $ | 492.8 | $ | (0.7 | ) |
(1) | Balance includes investments that were in an immaterial unrealized loss position 12 months or greater as of March 31, 2011. |
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. |
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Restricted cash: | |||||||
Demand deposits | $ | 1.7 | $ | 1.7 | |||
Total restricted cash | 1.7 | 1.7 | |||||
Restricted investments: | |||||||
U.S. government securities | 0.6 | 0.6 | |||||
Corporate debt securities | 1.6 | 2.7 | |||||
Mutual funds | 1.1 | — | |||||
Money market funds | 97.1 | 114.3 | |||||
Total restricted investments | 100.4 | 117.6 | |||||
Total restricted cash and investments | $ | 102.1 | $ | 119.3 |
|
Fair Value Measurements at March 31, 2011 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) | $ | 99.2 | $ | 220.5 | $ | — | $ | 319.7 | |||||||
Government-sponsored enterprise obligations | 236.9 | 67.4 | — | 304.3 | |||||||||||
Foreign government debt securities | — | 23.8 | — | 23.8 | |||||||||||
Commercial paper | — | 52.0 | — | 52.0 | |||||||||||
Corporate debt securities (2) | — | 487.9 | — | 487.9 | |||||||||||
Certificate of deposit | — | 41.5 | — | 41.5 | |||||||||||
Asset-backed securities | — | 112.3 | — | 112.3 | |||||||||||
Money market funds (3) | 1,953.8 | — | — | 1,953.8 | |||||||||||
Total available-for-sale debt securities | 2,289.9 | 1,005.4 | — | 3,295.3 | |||||||||||
Total available-for-sale securities | 2,289.9 | 1,005.4 | — | 3,295.3 | |||||||||||
Trading securities: | |||||||||||||||
Mutual funds (4) | 11.9 | — | — | 11.9 | |||||||||||
Total trading securities | 11.9 | — | — | 11.9 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 2.0 | — | 2.0 | |||||||||||
Total derivative assets | — | 2.0 | — | 2.0 | |||||||||||
Total assets measured at fair value | $ | 2,301.8 | $ | 1,007.4 | $ | — | $ | 3,309.2 |
(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 condensed consolidated balance sheet. |
(2) | Balance includes $1.6 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust. |
(3) | Balance includes $97.1 million of restricted investments measured at fair market value, related to the Company's D&O trust. |
(4) | Balance includes $1.1 million of restricted investments measured at fair market value, related to the Company's India Gratuity 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 | ||||||||||||
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 condensed 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 March 31, 2011 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 | $ | 1,856.7 | $ | 210.9 | $ | — | $ | 2,067.6 | |||||||
Short-term investments | 122.4 | 371.2 | — | 493.6 | |||||||||||
Long-term investments | 224.5 | 421.1 | — | 645.6 | |||||||||||
Restricted cash | 98.2 | 2.2 | — | 100.4 | |||||||||||
Prepaid expenses and other current assets | — | 2.0 | — | 2.0 | |||||||||||
Total assets measured at fair value | $ | 2,301.8 | $ | 1,007.4 | $ | — | $ | 3,309.2 |
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 |
|
Infrastructure | SLT | Total | |||||||||
Balance as of January 1, 2011 | |||||||||||
Goodwill | $ | 1,643.4 | $ | 3,564.4 | $ | 5,207.8 | |||||
Accumulated impairment losses | — | (1,280.0 | ) | (1,280.0 | ) | ||||||
Carrying value at January 1, 2011 | 1,643.4 | 2,284.4 | 3,927.8 | ||||||||
Adjustments to goodwill | (0.9 | ) | — | (0.9 | ) | ||||||
Goodwill acquired during the three months ended March 31, 2011 | 0.4 | — | 0.4 | ||||||||
Balance as of March 31, 2011 | |||||||||||
Goodwill | 1,642.9 | 3,564.4 | 5,207.3 | ||||||||
Accumulated impairment losses | — | (1,280.0 | ) | (1,280.0 | ) | ||||||
Carrying value at March 31, 2011 | $ | 1,642.9 | $ | 2,284.4 | $ | 3,927.3 |
Gross | Accumulated Amortization | Additions | Net | ||||||||||||
As of March 31, 2011: | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 471.1 | $ | (386.9 | ) | $ | 23.3 | $ | 107.5 | ||||||
Other | 86.4 | (63.4 | ) | 5.1 | 28.1 | ||||||||||
Total intangible assets with finite lives | 557.5 | (450.3 | ) | 28.4 | 135.6 | ||||||||||
IPR&D with indefinite lives | 7.9 | — | — | 7.9 | |||||||||||
Total purchased intangible assets | $ | 565.4 | $ | (450.3 | ) | $ | 28.4 | $ | 143.5 | ||||||
As of December 31, 2010: | |||||||||||||||
Intangible assets with finite 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 finite lives | 448.9 | (443.6 | ) | 108.6 | 113.9 | ||||||||||
IPR&D with indefinite lives | — | — | 7.9 | 7.9 | |||||||||||
Total purchased intangible assets | $ | 448.9 | $ | (443.6 | ) | $ | 116.5 | $ | 121.8 |
Years Ending December 31, | Amount | |||
2011 (remaining nine months) | $ | 20.1 | ||
2012 | 26.4 | |||
2013 | 26.1 | |||
2014 | 24.3 | |||
2015 | 19.3 | |||
Thereafter | 19.4 | |||
Total | $ | 135.6 |
|
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Beginning balance | $ | 35.9 | $ | 38.2 | |||
Provisions made during the period, net | 15.3 | 12.1 | |||||
Change in estimate | (0.8 | ) | (0.5 | ) | |||
Actual costs incurred during the period | (12.1 | ) | (12.0 | ) | |||
Ending balance | $ | 38.3 | $ | 37.8 |
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 303.1 | $ | 294.1 | |||
Distributor inventory and other sell-through items | 141.8 | 143.4 | |||||
Deferred gross product revenue | 444.9 | 437.5 | |||||
Deferred cost of product revenue | (143.0 | ) | (148.8 | ) | |||
Deferred product revenue, net | 301.9 | 288.7 | |||||
Deferred service revenue | 648.4 | 595.7 | |||||
Total | $ | 950.3 | $ | 884.4 | |||
Reported as: | |||||||
Current | $ | 733.3 | $ | 660.2 | |||
Long-term | 217.0 | 224.2 | |||||
Total | $ | 950.3 | $ | 884.4 |
Remaining Liability as of December 31, 2010 | Charges | Cash payments | Adjustments | Remaining Liability as of March 31, 2011 | |||||||||||||||
Facilities | $ | 7.7 | $ | — | $ | (0.7 | ) | $ | — | $ | 7.0 | ||||||||
Severance, contractual commitments, and other charges | 0.2 | — | 0.3 | (0.3 | ) | 0.2 | |||||||||||||
Total | $ | 7.9 | $ | — | $ | (0.4 | ) | $ | (0.3 | ) | $ | 7.2 |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Interest income | $ | 2.4 | $ | 2.5 | |||
Interest expense | (6.5 | ) | (1.6 | ) | |||
Other income and expense, net | (2.4 | ) | 0.6 | ||||
Total | $ | (6.5 | ) | $ | 1.5 |
|
March 31, 2011 | ||||||
Amount | Effective Interest Rate | |||||
Senior notes: | ||||||
3.10% fixed-rate notes, due 2016 | $ | 300.0 | 3.12 | % | ||
4.60% fixed-rate notes, due 2021 | 300.0 | 4.63 | % | |||
5.95% fixed-rate notes, due 2041 | 400.0 | 6.01 | % | |||
Total senior notes | 1,000.0 | |||||
Unaccreted discount | (1.1 | ) | ||||
Total | $ | 998.9 |
|
As of | |||||||
March 31, 2011 | December 31, 2010 | ||||||
Cash flow hedges | $ | 125.6 | $ | 110.4 | |||
Non-designated hedges | 148.6 | 74.4 | |||||
Total | $ | 274.2 | $ | 184.8 |
|
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Consolidated net income | $ | 129.7 | $ | 164.6 | |||
Other comprehensive income, net of tax: | |||||||
Change in unrealized gain (loss) on investments, net tax of nil | 4.4 | (0.4 | ) | ||||
Change in foreign currency translation adjustment, net tax of nil | 6.6 | (2.7 | ) | ||||
Total other comprehensive income (loss), net of tax | 11.0 | (3.1 | ) | ||||
Consolidated comprehensive income | 140.7 | 161.5 | |||||
Adjust for comprehensive income attributable to noncontrolling interest | 0.1 | (1.5 | ) | ||||
Comprehensive income attributable to Juniper Networks | $ | 140.8 | $ | 160.0 |
Common Stock & Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non- controlling Interest | Total Equity | |||||||||||||||
Balance at December 31, 2010 | $ | 9,717.8 | $ | (1.3 | ) | $ | (3,108.3 | ) | $ | 0.6 | $ | 6,608.8 | |||||||
Consolidated net income | — | — | 129.8 | (0.1 | ) | 129.7 | |||||||||||||
Change in unrealized loss on investments, net tax of nil | — | 4.4 | — | — | 4.4 | ||||||||||||||
Change in foreign currency translation adjustment, net tax of nil | — | 6.6 | — | — | 6.6 | ||||||||||||||
Issuance of shares in connection with Employee Stock Purchase Plan | 23.7 | — | — | — | 23.7 | ||||||||||||||
Exercise of stock options by employees | 241.7 | — | — | — | 241.7 | ||||||||||||||
Repurchase and retirement of common stock | (70.3 | ) | — | (129.9 | ) | — | (200.2 | ) | |||||||||||
Repurchases related to net issuances | (1.8 | ) | — | (3.1 | ) | — | (4.9 | ) | |||||||||||
Share-based compensation expense | 47.6 | — | — | — | 47.6 | ||||||||||||||
Adjustment related to tax benefit from employee stock option plans | 39.4 | — | — | — | 39.4 | ||||||||||||||
Balance at March 31, 2011 | $ | 9,998.1 | $ | 9.7 | $ | (3,111.5 | ) | $ | 0.5 | $ | 6,896.8 |
Common Stock & Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non- controlling Interest | Total Equity | |||||||||||||||
Balance at December 31, 2009 | $ | 9,060.1 | $ | (1.4 | ) | $ | (3,236.5 | ) | $ | 2.6 | $ | 5,824.8 | |||||||
Consolidated net income | — | — | 163.1 | 1.5 | 164.6 | ||||||||||||||
Change in unrealized loss on investments, net tax of nil | — | (0.4 | ) | — | — | (0.4 | ) | ||||||||||||
Change in foreign currency translation adjustment, net tax of nil | — | (2.7 | ) | — | — | (2.7 | ) | ||||||||||||
Issuance of shares in connection with Employee Stock Purchase Plan | 20.8 | — | — | — | 20.8 | ||||||||||||||
Exercise of stock options by employees | 101.2 | — | — | — | 101.2 | ||||||||||||||
Return of capital to noncontrolling interest | — | — | — | (2.0 | ) | (2.0 | ) | ||||||||||||
Repurchase and retirement of common stock | (5.7 | ) | — | (68.7 | ) | — | (74.4 | ) | |||||||||||
Repurchases related to net issuances | — | — | (1.8 | ) | — | (1.8 | ) | ||||||||||||
Share-based compensation expense | 40.6 | — | — | — | 40.6 | ||||||||||||||
Adjustment related to tax benefit from employee stock option plans | 50.6 | — | — | — | 50.6 | ||||||||||||||
Balance at March 31, 2010 | $ | 9,267.6 | $ | (4.5 | ) | $ | (3,143.9 | ) | $ | 2.1 | $ | 6,121.3 |
|
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | ||||||||||
Balance at January 1, 2011 | 49.4 | $ | 21.90 | ||||||||||
Options granted | 4.2 | 41.46 | |||||||||||
Options canceled | (0.5 | ) | 23.17 | ||||||||||
Options exercised | (11.2 | ) | 21.58 | ||||||||||
Options expired | (0.1 | ) | 67.10 | ||||||||||
Balance at March 31, 2011 | 41.8 | $ | 23.88 | 4.4 | $ | 764.8 | |||||||
As of March 31, 2011: | |||||||||||||
Vested or expected-to-vest options | 39.0 | $ | 23.41 | 4.3 | $ | 730.2 | |||||||
Exercisable options | 23.9 | $ | 20.98 | 3.4 | $ | 504.8 |
Outstanding RSUs and PSAs | |||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | ||||||||||
Balance at January 1, 2011 | 14.2 | $ | 25.94 | ||||||||||
RSUs granted | 3.7 | 40.06 | |||||||||||
PSAs granted (1) | 3.6 | 41.53 | |||||||||||
RSUs vested | (1.2 | ) | 21.90 | ||||||||||
PSAs vested | (0.5 | ) | 25.80 | ||||||||||
RSUs canceled | (0.1 | ) | 25.62 | ||||||||||
PSAs canceled | (0.4 | ) | 23.82 | ||||||||||
Balance at March 31, 2011: | 19.3 | $ | 31.80 | 2.1 | $ | 819.7 | |||||||
As of March 31, 2011: | |||||||||||||
Vested and expected-to-vest RSUs and PSAs | 16.0 | $ | 31.34 | 2.0 | $ | 673.2 |
(1) | 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 1.7 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 3.6 million shares. |
Number of Shares | ||
Balance at January 1, 2011 | 30.7 | |
RSUs and PSAs granted (1) | (15.4 | ) |
Options granted | (4.2 | ) |
RSUs and PSAs canceled (1) | 1.1 | |
Options canceled (2) | 0.5 | |
Options expired (2) | 0.1 | |
Balance at March 31, 2011 | 12.8 |
(1) | RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted represents the maximum number of shares that may be issued pursuant to the award over its full term. |
(2) | Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired unexercised after May 18, 2006, which become available for grant under the 2006 Plan according to its terms. |
Three Months Ended March 31, | |||
2011 | 2010 | ||
Employee Stock Options: | |||
Volatility factor | 41% - 42% | 37% - 41% | |
Risk-free interest rate | 1.6% - 1.9% | 2.1% - 2.2% | |
Expected life (years) | 4.1 | 4.3 | |
Dividend yield | — | — | |
Fair value per share | $12.07- $15.22 | $9.31 - $9.92 | |
Employee Stock Purchase Plan: | |||
Volatility factor | 33% | 35% | |
Risk-free interest rate | 1.8% | 1.7% | |
Expected life (years) | 0.5 | 0.5 | |
Dividend yield | — | — | |
Weighted-average fair value per share | $9.07 | $6.19 |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Cost of revenues - Product | $ | 1.0 | $ | 1.1 | |||
Cost of revenues - Service | 3.9 | 3.6 | |||||
Research and development | 22.3 | 17.0 | |||||
Sales and marketing | 13.2 | 11.7 | |||||
General and administrative | 8.6 | 7.2 | |||||
Total | $ | 49.0 | $ | 40.6 |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Options | $ | 19.7 | $ | 20.1 | |||
RSUs and PSAs | 23.4 | 16.3 | |||||
Employee stock purchase plan | 4.4 | 4.2 | |||||
Other acquisition-related compensation | 1.5 | — | |||||
Total | $ | 49.0 | $ | 40.6 |
|
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Net revenues: | |||||||
Infrastructure: | |||||||
Routers | $ | 748.9 | $ | 601.5 | |||
Switches | 105.8 | 77.2 | |||||
Total Infrastructure | 854.7 | 678.7 | |||||
SLT | 246.9 | 233.9 | |||||
Total net revenues | 1,101.6 | 912.6 | |||||
Segment operating income: | |||||||
Infrastructure | 209.5 | 176.5 | |||||
SLT | 36.4 | 35.1 | |||||
Total segment operating income | 245.9 | 211.6 | |||||
Amortization of purchased intangible assets (1) | (6.7 | ) | (1.1 | ) | |||
Share-based compensation expense | (49.0 | ) | (40.6 | ) | |||
Share-based payroll tax expense | (8.0 | ) | (1.6 | ) | |||
Restructuring charges | 0.3 | (8.1 | ) | ||||
Acquisition-related | (5.1 | ) | — | ||||
Total operating income | 177.4 | 160.2 | |||||
Other (expense) income, net | (6.5 | ) | 1.5 | ||||
Income before income taxes and noncontrolling interest | $ | 170.9 | $ | 161.7 |
(1) | Amount includes amortization expense of purchased intangible assets in operating expenses and in cost of revenues. |
Three Months Ended March 31, | |||||||
2011 | 2010 | ||||||
Americas: | |||||||
United States | $ | 526.0 | $ | 447.0 | |||
Other | 55.6 | 41.5 | |||||
Total Americas | 581.6 | 488.5 | |||||
Europe, Middle East, and Africa | 299.9 | 264.0 | |||||
Asia Pacific | 220.1 | 160.1 | |||||
Total | $ | 1,101.6 | $ | 912.6 |
|
Total | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | Other | ||||||||||||||||||||||||
Operating leases | $ | 357.3 | $ | 42.5 | $ | 52.3 | $ | 44.8 | $ | 58.2 | $ | 47.3 | $ | 112.2 | $ | — | |||||||||||||||
Purchase commitments | 171.8 | 171.8 | — | — | — | — | — | — | |||||||||||||||||||||||
Tax liabilities | 101.6 | — | — | — | — | — | — | 101.6 | |||||||||||||||||||||||
Long-term debt | 1,000.0 | — | — | — | — | — | 1,000.0 | — | |||||||||||||||||||||||
Interest payment on long-term debt | 900.2 | 27.1 | 46.9 | 46.9 | 46.9 | 46.9 | 685.5 | — | |||||||||||||||||||||||
Other contractual obligations | 75.3 | 54.3 | 11.2 | 4.8 | 3.0 | 2.0 | — | — | |||||||||||||||||||||||
Total | $ | 2,606.2 | $ | 295.7 | $ | 110.4 | $ | 96.5 | $ | 108.1 | $ | 96.2 | $ | 1,797.7 | $ | 101.6 |
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