JUNIPER NETWORKS INC, 10-Q filed on 5/6/2011
Quarterly Report
Document and Entity Information Document
3 Months Ended
Mar. 31, 2011
Apr. 29, 2011
Document Information [Line Items]
 
 
Entity Registrant Name
JUNIPER NETWORKS INC 
 
Entity Central Index Key
0001043604 
 
Document Type
10-Q 
 
Document Period End Date
2011-03-31 
 
Amendment Flag
FALSE 
 
Document Fiscal Year Focus
2011 
 
Document Fiscal Period Focus
Q1 
 
Current Fiscal Year End Date
12/31 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
533,069,000 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data
3 Months Ended
Mar. 31,
2011
2010
Net revenues:
 
 
Product
$ 877,440 
$ 721,201 
Service
224,172 
191,417 
Total net revenues
1,101,612 
912,618 
Cost of revenues:
 
 
Product
265,746 
222,381 
Service
99,981 
78,216 
Total cost of revenues
365,727 
300,597 
Gross margin
735,885 
612,021 
Operating expenses:
 
 
Research and development
261,979 
206,994 
Sales and marketing
246,291 
192,375 
General and administrative
44,924 
43,138 
Amortization of purchased intangible assets
1,544 
1,137 
Restructuring
(347)
8,105 
Acquisition-related
4,101 
Total operating expenses
558,492 
451,749 
Operating income
177,393 
160,272 
Other (expense) income, net
(6,462)
1,459 
Income before income taxes and noncontrolling interest
170,931 
161,731 
Income tax provision (benefit)
41,271 
(2,879)
Consolidated net income
129,660 
164,610 
Adjust for net loss (income) attributable to noncontrolling interest
90 
(1,495)
Net income attributable to Juniper Networks
129,750 
163,115 
Net income per share attributable to Juniper Networks common stockholders:
 
 
Basic
0.24 
0.31 
Diluted
$ 0.24 
$ 0.3 
Shares used in computing net income per share:
 
 
Basic
530,789 
521,141 
Diluted
548,825 
536,718 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands
3 Months Ended
Mar. 31, 2011
Year Ended
Dec. 31, 2010
Current assets:
 
 
Cash and cash equivalents
$ 2,944,383 
$ 1,811,887 
Short-term investments
493,557 
474,514 
Accounts receivable, net of allowances
471,012 
596,622 
Deferred tax assets, net
160,032 
161,535 
Prepaid expenses and other current assets
235,443 
169,812 
Total current assets
4,304,427 
3,214,370 
Property and equipment, net
516,445 
493,881 
Long-term investments
645,609 
535,178 
Restricted cash
102,125 
119,346 
Purchased intangible assets, net
143,506 
121,803 
Goodwill
3,927,280 
3,927,807 
Other long-term assets
54,308 
55,466 
Total assets
9,693,700 
8,467,851 
Current liabilities:
 
 
Accounts payable
228,275 
292,270 
Accrued compensation
188,736 
256,746 
Accrued warranty
38,320 
35,931 
Deferred revenue
733,249 
660,264 
Income taxes payable
25,651 
25,000 
Other accrued liabilities
189,513 
201,765 
Total current liabilities
1,403,744 
1,471,976 
Long-term debt
998,923 
Long-term deferred revenue
217,024 
224,165 
Long-term income tax payable
101,630 
103,823 
Other long-term liabilities
75,530 
59,087 
Commitments and Contingencies – See Note 15
 
 
Juniper Networks stockholders' equity:
 
 
Convertible preferred stock, $0.00001 par value; 10,000 shares authorized; none issued and outstanding
Common stock, $0.00001 par value; 1,000,000 shares authorized; 534,376 shares and 525,378 shares issued and outstanding at March 31, 2011, and December 31, 2010, respectively
Additional paid-in capital
9,998,125 
9,717,783 
Accumulated other comprehensive income (loss)
9,746 
(1,251)
Accumulated deficit
(3,111,537)
(3,108,337)
Total Juniper Networks stockholders' equity
6,896,339 
6,608,200 
Noncontrolling interest
510 
600 
Total equity
6,896,849 
6,608,800 
Total liabilities and equity
$ 9,693,700 
$ 8,467,851 
Condensed Consolidated Balance Sheets Parentheticals (Unaudited) (USD $)
In Thousands, except Per Share data
Mar. 31, 2011
Dec. 31, 2010
Convertible preferred stock, par value
$ 0.00001 
$ 0.00001 
Convertible preferred stock, shares authorized
10,000 
10,000 
Convertible preferred stock, shares issued
Convertible preferred stock, shares outstanding
Common stock, par value
$ 0.00001 
$ 0.00001 
Common stock, shares authorized
1,000,000 
1,000,000 
Common stock, shares issued
534,376 
525,378 
Common stock, shares outstanding
534,376 
525,378 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands
3 Months Ended
Mar. 31,
2011
2010
Cash flows from operating activities:
 
 
Consolidated net income
$ 129,660 
$ 164,610 
Adjustments to reconcile consolidated net income to net cash from operating activities:
 
 
Depreciation and amortization
40,758 
35,269 
Share-based compensation
47,586 
40,561 
Deferred income taxes
1,503 
(12,471)
Change in excess tax benefits from share-based compensation
(39,041)
(20,520)
Changes in operating assets and liabilities:
 
 
Accounts receivable, net
125,610 
55,718 
Prepaid expenses and other assets
(59,372)
(11,150)
Accounts payable
(58,468)
(14,125)
Accrued compensation
(66,510)
(19,847)
Accrued litigation settlements
(169,330)
Income tax payable
38,099 
(1,088)
Other accrued liabilities
13,981 
4,620 
Deferred revenue
65,844 
36,299 
Net cash provided by operating activities
239,650 
88,546 
Cash flows from investing activities:
 
 
Purchases of property and equipment, net
(53,972)
(37,807)
Purchases of trading investments
(2,495)
(1,245)
Purchases of available-for-sale investments
(437,773)
(447,716)
Proceeds from sales of available-for-sale investments
193,301 
224,514 
Proceeds from maturities of available-for-sale investments
126,260 
235,960 
Payment for business acquisition, net of cash and cash equivalents acquired
(28,573)
Changes in restricted cash
(1,550)
Purchases of privately-held and other equity investments, net
(5,972)
(4,773)
Net cash used in investing activities
(209,224)
(32,617)
Cash flows from financing activities:
 
 
Proceeds from issuance of common stock
264,113 
118,920 
Purchases and retirement of common stock
(205,171)
(76,225)
Issuance of long-term debt, net
991,556 
Change in customer financing arrangements
12,531 
2,082 
Excess tax benefit from share-based compensation
39,041 
20,520 
Return of capital to noncontrolling interest
(2,000)
Net cash provided by financing activities
1,102,070 
63,297 
Net increase in cash and cash equivalents
1,132,496 
119,226 
Cash and cash equivalents at beginning of period
1,811,887 
1,604,723 
Cash and cash equivalents at end of period
$ 2,944,383 
$ 1,723,949 
Note 1 - Basis of Presentation Level 1 (Notes)
Basis of Presentation [Text Block]
Basis of Presentation
 
The unaudited Condensed Consolidated Financial Statements of Juniper Networks, Inc. (“Juniper Networks” or the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Consolidated Condensed Balance Sheet as of December 31, 2010, is derived from the December 31, 2010, audited consolidated financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2011, are not necessarily indicative of the results that may be expected for the year ending December 31, 2011, or any future period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010.
 
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates.
 
As of March 31, 2011, the Company owned a 60 percent interest in a joint venture with Nokia Siemens Networks B.V. (“NSN”). Given the Company's majority ownership interest in the joint venture, the accounts of the joint venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor's interests in the net assets and operations of the joint venture.
Note 2 - Summary of Significant Accounting Policies Level 1 (Notes)
Summary of Significant Accounting Policies [Text Block]
Summary of Significant Accounting Policies
 
Recent Accounting Pronouncements
 
In December 2010, the FASB issued ASU No. 2010-28, Topic 350 - Intangibles - Goodwill and Other: When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (“ASU 2010-28”), which modifies Step 1 of the goodwill impairment test for reporting units with zero or negative amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exist. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. The Company's adoption of ASU 2010-28 did not have an impact on its consolidated results of operations or financial condition.
 
Note 3 - Business Combination Level 1 (Notes)
Business Combination [Text Block]
Business Combinations
 
The Company's consolidated financial statements include the operating results of acquired businesses from the date of each acquisition. Pro forma results of operations for these acquisitions have not been presented as the financial impact to the Company's consolidated results of operations, both individually and in aggregate, is not material. Additional information existing as of the acquisition dates but unknown to the Company may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded.
 
During the three months ended March 31, 2011, the Company completed two business combinations for cash of approximately $30.5 million. Total purchase consideration for these acquisitions was allocated as follows (in millions):
 
 
2011 Acquisitions
Net tangible assets acquired
$
1.7
 
Intangible assets acquired
28.4
 
Goodwill
0.4
 
    Total
$
30.5
 
 
 
The goodwill recognized is attributable primarily to expected synergies. None of the goodwill is deductible for U.S. federal income tax purposes.
 
The following table presents details of the intangible assets acquired through the business combinations completed during the three months ended March 31, 2011 (in millions, except years):
 
 
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
 
 
 
The Company recognized $5.1 million of acquisition-related costs in the three months ended March 31, 2011. These costs were expensed in the period incurred and reported in the Company's consolidated statement of operations within cost of revenues and within operating expense as acquisition-related charges. There were no comparable charges incurred in the three months ended March 31, 2010.
Note 4 - Net Income per Share Level 1 (Notes)
Earnings Per Share [Text Block]
Net Income per Share
 
Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all dilutive potential shares that were outstanding during the period. Dilutive potential common shares consist of common shares issuable upon exercise of stock options, employee stock purchase plan, vesting of restricted stock units (“RSUs”), and vesting of performance share awards (“PSAs”).
 
The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks common stockholders (in millions, except per share amounts):
 
 
Three Months Ended March 31,
 
2011
 
2010
Numerator:
 
 
 
Net income attributable to Juniper Networks
$
129.8
 
 
$
163.1
 
Denominator:
 
 
 
Weighted-average shares used to compute basic net income per share
530.8
 
 
521.1
 
Effect of dilutive securities:
 
 
 
Employee stock awards
18.0
 
 
15.6
 
Weighted-average shares used to compute diluted net income per share
548.8
 
 
536.7
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
Basic
$
0.24
 
 
$
0.31
 
Diluted
$
0.24
 
 
$
0.30
 
 
 
The Company excludes outstanding stock options with exercise prices that are greater than the average market price from the calculation of diluted net income per share because their effect would be anti-dilutive. The Company includes the common shares underlying PSAs in the calculation of diluted net income per share when they become contingently issuable and excludes such shares when they are not contingently issuable. Employee stock options and PSAs covering approximately 5.8 million and 19.6 million shares of the Company's common stock in the three months ended March 31, 2011, and 2010, respectively, were outstanding, but were not included in the computation of diluted earnings per share.
 
Note 5 - Cash, Cash Equivalents and Investments Level 1 (Notes)
Cash, Cash Equivalents, and Investments [Text Block]
Cash, Cash Equivalents, and Investments
 
Cash and Cash Equivalents
 
The following table summarizes the Company's cash and cash equivalents (in millions):
 
 
As of
 
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
 
 
Investments in Available-for-Sale and Trading Securities
 
The following table summarizes the Company's unrealized gains and losses, and fair value of investments designated as available-for-sale and trading securities, as of March 31, 2011, and December 31, 2010 (in millions):
 
 
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
 
 
 
The following table presents the maturities of the Company's available-for-sale and trading securities, as of March 31, 2011 (in millions):
 
 
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
 
 
 
The following tables present the Company's trading and available-for sale investments that are in an unrealized loss position as of March 31, 2011, and December 31, 2010 (in millions):
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
As of 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.
 
The Company had 109 and 73 investments in unrealized loss positions as of March 31, 2011, and December 31, 2010, respectively. The gross unrealized losses related to these investments were primarily due to changes in interest rates. The contractual terms of fixed income securities do not permit the issuer to settle the securities at a price less than the amortized cost of the investments. For the fixed income securities that have unrealized losses, the Company determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company did not consider these investments to be other-than-temporarily impaired as of March 31, 2011, and December 31, 2010. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company aggregates its investments by category and length of time the securities have been in a continuous unrealized loss position to facilitate its evaluation.
 
Restricted Cash
 
Restricted cash consists of: (i) amounts held in escrow accounts, as required by certain acquisitions completed in 2005 and 2010; (ii) the India Gratuity Trust and Israel Retirement Trust, which cover statutory severance obligations in the event of termination of the Company's India and Israel employees, respectively; and (iii) the Directors and Officers ("D&O") indemnification trust. During the three months ended March 31, 2011, the Company distributed approximately $17.2 million of restricted cash, mainly related to the 2010 acquisitions.
 
In connection with the 2010 acquisition of Ankeena Networks, Inc. ("Ankeena"), the Company agreed to pay from escrow a total amount of $10.7 million, representing the cash value of unvested restricted shares of Ankeena common stock as of April 8, 2010, held by certain former Ankeena employees. As of March 31, 2011, the Company expects to release $4.7 million from escrow as these restricted shares vest over the next eighteen months.
 
The following table summarizes the Company's cash and investments that are classified as restricted cash in the condensed consolidated balance sheets (in millions):
 
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
 
 
 
As of March 31, 2011, and December 31, 2010, the unrealized gains and losses related to restricted investments were immaterial.
 
Other Investments
 
The Company's minority equity investments in privately-held companies are carried at cost, as the Company does not have a controlling interest or the ability to exercise significant influence over these companies. The Company adjusts its privately-held equity investments for any impairment if the fair value goes below the carrying value of the respective assets.
 
As of March 31, 2011, and December 31, 2010, the carrying values of the Company’s privately-held and other equity investments of $28.3 million and $22.1 million, respectively, were included in other long-term assets in the condensed consolidated balance sheets. During the three months ended March 31, 2011 and 2010, the Company invested $6.0 million and $4.8 million, respectively, in privately-held and other equity investments. There were no losses from the Company's privately-held and other equity investments during the three months ended March 31, 2011, and 2010.
Note 6 - Fair Value Measurements Level 1 (Notes)
Fair Value Disclosures [Text Block]
Fair Value Measurements
 
The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
 
Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
 
Level 2 – Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. These inputs are valued using market based approaches.
 
Level 3 – Inputs are unobservable inputs based on the Company’s assumptions. These inputs, if any, are valued using internal financial models.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
The following tables provide a summary of assets measured at fair value on a recurring basis (in millions):
 
 
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.
 
The following tables summarizes the Company's assets measured at fair value on a recurring basis as reported in the consolidated balance sheet (in millions):
 
 
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
 
 
 
As of March 31, 2011, and December 31, 2010, the Company had $0.1 million and $2.6 million, respectively, of derivative liabilities measured at fair value on a recurring basis. The Company recorded the derivative liabilities, which related to its foreign exchange contracts, within other accrued liabilities in its condensed consolidated balance sheets. These liabilities were measured using significant other observable remaining inputs (Level 2) pursuant to the fair value hierarchy.
 
The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the three months ended March 31, 2011, and 2010 the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value.
 
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
 
As of March 31, 2011, and December 31, 2010, the Company had no material assets or liabilities measured at fair value on a nonrecurring basis.
 
Assets and Liabilities Not Measured at Fair Value
 
The carrying amounts of the Company's accounts receivable, financing receivables, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. The fair value of the Company’s long-term debt is disclosed in Note 9, Financing, and was determined using quoted market prices.
Note 7 - Goodwill and Purchased Intangible Assets Level 1 (Notes)
Goodwill and purchased intangible assets [Text Block]
Goodwill and Purchased Intangible Assets
 
Goodwill
 
The following table summarizes the Company's goodwill activities by segment in the three months ended March 31, 2011 (in millions):
 
 
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
 
 
 
During the three months ended March 31, 2011, the Company recorded an immaterial reduction to goodwill related to the adjustments in net tangible assets assumed from certain businesses acquired in 2010. There were no impairments to goodwill during the three months ended March 31, 2011, and 2010.
 
Purchased Intangible Assets
 
The following table presents the Company’s purchased intangible assets (in millions):
 
 
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
 
 
 
Amortization of purchased intangible assets included in operating expenses and cost of product revenues totaled $6.7 million and $1.1 million for the three months ended March 31, 2011, and 2010, respectively. There were no impairment charges with respect to the purchased intangible assets in the three months ended March 31, 2011, and 2010. The Company recorded $28.4 million of purchased intangible assets as a result of its acquisitions completed in the three months ended March 31, 2011. For further discussion, see Note 3, Business Combinations.
 
Acquired in-process research and development (“IPR&D”) consists of existing research and development projects at the time of the acquisition. Projects that qualify as IPR&D assets represent those that have not yet reached technological feasibility and have no alternative future use. After initial recognition, acquired IPR&D assets are accounted for as indefinite-lived intangible assets. Development costs incurred after acquisition on acquired development projects are expensed as incurred. Upon completion of development, acquired IPR&D assets are considered amortizable finite-lived assets. If the IPR&D project is abandoned, the Company records a charge to earnings in the period it is abandoned.
 
The estimated future amortization expense of purchased intangible assets with finite lives for future periods is as follows (in millions):
 
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
 
 
 
Note 8 - Other Financial Information Level 1 (Notes)
Other Financial Information [Text Block]
Other Financial Information
 
Warranties
 
The Company provides for the estimated cost of product warranties at the time revenue is recognized. This provision is reported as accrued warranty within current liabilities on the condensed consolidated balance sheets. Changes in the Company’s warranty reserve were as follows (in millions):
 
 
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
 
 
 
Deferred Revenue
 
Details of the Company's deferred revenue were as follows (in millions):
 
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
 
 
 
Deferred product revenue primarily represents unrecognized revenue related to shipments to distributors that have not sold through to end-users, undelivered product commitments, and other shipments that have not met all revenue recognition criteria. Deferred product revenue is recorded net of the related product costs of revenue. Deferred service revenue represents customer payments made in advance for services, which include technical support, hardware and software maintenance, professional services, and training.
 
Restructuring Liabilities
 
In 2009, the Company implemented a restructuring plan (the “2009 Restructuring Plan”) in an effort to better align its business operations with the current market and macroeconomic conditions. The plan included restructuring of certain business functions that resulted in reductions of workforce and facilities. The Company recorded $8.1 million in the three months ended March 31, 2010, associated with the 2009 Restructuring Plan. The Company had no such charges during the three months ended March 31, 2011.
 
Restructuring charges were based on the Company's restructuring plans that were committed by management. Any changes in the estimates of executing the approved plans will be reflected in the Company's results of operations. The following table provides a summary of changes in the Company’s restructuring liability (in millions):
 
 
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
 
 
 
Other Expense and Income, Net
 
Other expense and income, net, consists of the following (in millions):
 
 
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
 
 
 
Interest income primarily includes interest income from the Company’s cash, cash equivalents, and investments. Interest expense primarily includes interest expense from long-term debt and customer financing arrangements. Other income and expense, net, primarily includes foreign exchange gains and losses and other miscellaneous expenses.
 
Note 9 - Financing Level 1 (Notes)
Debt Disclosure [Text Block]
Financing
 
Long-Term Debt
 
The following table summarizes the Company's long-term debt (in millions, except percentages):
 
 
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
 
 
 
 
In March 2011, the Company issued $300.0 million aggregate principal amount of 3.10% senior notes due 2016 (the "2016 notes"), $300.0 million aggregate principal amount of 4.60% senior notes due 2021 (the "2021 notes"), and $400.0 million aggregate principal amount of 5.95% senior notes due 2041 (the "2041 notes" and, together with the 2016 notes and the 2021 notes the "notes"). Interest on the notes is payable in cash semiannually. The Company may redeem the notes, at any time in whole or from time to time in part, subject to a make-whole premium, and, in the event of a change in control, the holders of the notes may require us to repurchase for cash all or part of the notes at a purchase price equal to 101% of the aggregate principle amount, plus accrued and unpaid interest, if any. The indenture that governs the notes also contains various covenants, including limitations on the Company's ability to incur liens or enter into sale-leaseback transactions over certain dollar thresholds.
 
The effective rates for the notes include the interest on the notes, accretion of the discount, and amortization of issuance costs. At March 31, 2011, the estimated fair value of the notes included in long-term debt was approximately $995.3 million based on quoted market prices. The Company had no such debt at December 31, 2010.
 
Customer Financing Arrangements
 
The Company has customer financing arrangements to sell its accounts receivable to a major third-party financing provider. The program does not and is not intended to affect the timing of revenue recognition because the Company only recognizes revenue upon sell-through. Under the financing arrangements, proceeds from the financing provider are due to the Company 30 days from the sale of the receivable. In these transactions with the financing provider, the Company surrendered control over the transferred assets. The accounts receivable were isolated from the Company and put beyond the reach of creditors, even in the event of bankruptcy. The Company does not maintain effective control over the transferred assets through obligations or rights to redeem, transfer, or repurchase the receivables after they have been transferred.
 
Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $174.8 million and $135.6 million during the three months ended March 31, 2011, and 2010, respectively.
 
During the three months ended March 31, 2011, and 2010, the Company received cash proceeds of $194.3 million and $138.9 million respectively, from the financing provider. The amounts owed by the financing provider recorded as accounts receivable on the Company’s condensed consolidated balance sheets as of March 31, 2011, and December 31, 2010, was $103.6 million and $127.4 million, respectively.
 
The portion of the receivable financed that has not been recognized as revenue is accounted for as a financing arrangement and is included in other accrued liabilities and other long-term liabilities in the condensed consolidated balance sheet. As of March 31, 2011, and December 31, 2010, the estimated cash received from the financing provider not recognized as revenue from distributors was $61.6 million and $49.1 million, respectively.
Note 10 - Derivative Instruments Level 1 (Notes)
Derivative Instruments [Text Block]
Derivative Instruments
 
The Company uses derivatives to partially offset its market exposure to fluctuations in certain foreign currencies and does not enter into derivatives for speculative or trading purposes.
 
The notional amount of Company's foreign currency derivatives are summarized as follows (in millions):
 
As of
 
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
 
 
 
Cash Flow Hedges
 
The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to cost of services and operating expenses. The derivatives are intended to protect the U.S. Dollar equivalent of the Company's planned cost of services and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of less than one year. The effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, is subsequently reclassified into the cost of services or operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments in interest and other income, net in its consolidated statements of operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income (loss) are expected to be reclassified into earnings within the next 12 months.
 
The total fair value of the Company’s derivative assets located in other current assets on the condensed consolidated balance sheet as of March 31, 2011, and December 31, 2010, was $2.0 million and $0.4 million, respectively. The total fair value of the Company’s derivative liabilities located in other accrued liabilities on the condensed consolidated balance sheet as of March 31, 2011, and December 31, 2010, was nil and $2.6 million , respectively.
 
During the three months ended March 31, 2011, the Company recognized a gain of $5.2 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a gain of $0.5 million from other comprehensive income to operating expense in the condensed consolidated statements of operations. The Company recognized a loss of $1.5 million in accumulated other comprehensive loss for the effective portion of its derivative instruments and reclassified a loss of $0.7 million from other comprehensive loss to the condensed consolidated statements of operations during the three months ended March 31, 2010. 
 
The ineffective portion of the Company's derivative instruments recognized in its condensed consolidated statements of operations was $0.3 million and nil during the three months ended March 31, 2011, and 2010.
 
Non-Designated Hedges
 
The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These hedges do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in other income and expense, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately two months.
 
During the three months ended March 31, 2011 and 2010, the Company recognized a loss on non-designated derivative instruments within interest and other income, net, on its condensed consolidated statements of operations of $0.2 million and $0.3 million, respectively.
Note 11 - Equity Level 1 (Notes)
Equity [Text Block]
Equity
 
Stock Repurchase Activities
 
In February 2010, the Company’s Board of Directors (the “Board”) approved a new stock repurchase program (the “2010 Stock Repurchase Program”) which authorized the Company to repurchase up to $1.0 billion of its common stock. This authorization was in addition to the stock repurchase program approved by the Board in March 2008 (the “2008 Stock Repurchase Program”), which also enabled the Company to repurchase up to $1.0 billion of the Company’s common stock.
 
The Company repurchased and retired approximately 4.8 million shares of its common stock at an average price of $42.14 per share for an aggregate purchase price of $200.2 million during the three months ended March 31, 2011, under its 2010 Stock Repurchase Program. The Company repurchased and retired approximately 2.8 million shares of its common stock at an average price of $27.04 per share for an aggregate purchase price of $74.4 million during the three months ended March 31, 2010 under its 2008 Stock Repurchase Program. As of March 31, 2011, there were no remaining authorized funds under the 2008 Stock Repurchase Program and $554.8 million remaining authorized funds under the 2010 Stock Repurchase Program.
 
Comprehensive Income Attributable to Juniper Networks
 
Comprehensive income attributable to Juniper Networks consists of the following (in millions):
 
 
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
 
 
 
The following table summarizes equity activity for the three months ended March 31, 2011 (in millions):
 
 
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
 
 
The following table summarizes equity activity for the three months ended March 31, 2010 (in millions):
 
 
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
 
Note 12 - Employee Benefit Plans Level 1 (Notes)
Employee Benefit Plans [Text Block]
Employee Benefit Plans
 
Share-Based Compensation Plans
 
The Company’s share-based compensation plans include the 2006 Equity Incentive Plan (the “2006 Plan”), 2000 Nonstatutory Stock Option Plan (the “2000 Plan”), Amended and Restated 1996 Stock Plan (the “1996 Plan”), as well as various equity incentive plans assumed through acquisitions. Under these plans, the Company has granted (or in the case of acquired plans, assumed) stock options, RSUs, and PSAs. In addition, the Company’s 2008 Employee Stock Purchase Plan (the “2008 Purchase Plan”) permits eligible employees to acquire shares of the Company’s common stock at a 15% discount to the offering price (as determined in the 2008 Purchase Plan) through periodic payroll deductions of up to 10% of base compensation, subject to individual purchase limits of 6,000 shares in any twelve-month period or $25,000 worth of stock, determined at the fair market value of the shares at the time the stock purchase option is granted, in one calendar year.
 
As of March 31, 2011, the 2006 Plan had 61.1 million shares subject to currently outstanding equity awards and 12.8 million shares available for future issuance.
 
In connection with past acquisitions, the Company assumed stock option and RSU awards under the stock plans of the acquired companies. The Company exchanged those awards for Juniper Networks' stock options and RSUs. As of March 31, 2011, stock options and RSUs covering approximately 1.8 million shares of common stock were outstanding under awards assumed through the Company's past acquisitions.
 
Stock Option Activities
 
Since 2006, the Company has granted stock option awards that have a maximum contractual life of seven years from the date of grant. Prior to 2006, stock option awards generally had a ten-year contractual life from the date of grant. The following table summarizes the Company’s stock option activity and related information as of and for the three months ended March 31, 2011 (in millions, except for per share amounts and years):
 
 
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
 
 
 
Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $42.08 per share as of March 31, 2011, and the exercise price multiplied by the number of related options. The pre-tax intrinsic value of options exercised, representing the difference between the fair market value of the Company’s common stock on the date of the exercise and the exercise price of each option, was $211.4 million for the three months ended March 31, 2011. Total fair value of options vested for the three months ended March 31, 2011, was $27.6 million.
 
Restricted Stock Units and Performance Share Awards Activities
 
RSUs generally vest over a period of three to four years from the date of grant, and PSAs generally vest after three years provided that certain annual performance targets and other vesting criteria are met. Until vested, RSUs and PSAs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding.
 
The following table summarizes information about the Company’s RSUs and PSAs as of and for the three months ended March 31, 2011 (in millions, except per share amounts and years):
 
 
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.
 
Employee Stock Purchase Plan
 
The Company's 2008 Purchase Plan is implemented in a series of offering periods, each six months in duration, or a shorter period as determined by the Board. Under the 2008 Purchase Plan, employees purchased approximately 1.0 million shares at an average per share price of $23.89 for the three months ended March 31, 2011. Employees purchased approximately 1.0 million shares of common stock through the 2008 Purchase Plan at an average price of $21.11 per share in the three months ended March 31, 2010.
 
As of March 31, 2011, approximately 4.6 million shares had been issued and 7.4 million shares remained available for future issuance under the 2008 Purchase Plan.
 
Shares Available for Grant
 
The following table presents the stock grant activity and the total number of shares available for grant under the 2006 Plan as of March 31, 2011 (in millions):
 
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.
 
Common Stock Reserved for Future Issuance
 
As of March 31, 2011, the Company had reserved an aggregate of approximately 81.3 million shares of common stock for future issuance under its equity incentive plans and the 2008 Purchase Plan.
 
Share-Based Compensation Expense
 
The Company determines the fair value of its stock options utilizing the Black-Scholes-Merton (“BSM”) option-pricing model, which incorporates various assumptions including volatility, risk-free interest rate, expected life, and dividend yield. The expected volatility is based on the implied volatility of market-traded options on the Company’s common stock, adjusted for other relevant factors including historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options. The expected life of a stock option award is based on historical experience and on the terms and conditions of the stock awards granted to employees, as well as the potential effect from stock options that had not been exercised at the time. The Company determines the fair value of its RSUs and PSAs based upon the fair market value of the shares of the Company’s common stock at the date of grant.
 
The assumptions used and the resulting estimates of fair value for employee stock options and the employee stock purchase plan during the three months ended March 31, 2011, and 2010 were:
 
 
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
 
 
The Company expenses the cost of its stock options on a straight-line basis over the vesting period and expenses the cost of its RSUs ratably over the vesting period. With respect to PSAs, for the portion of the award attributable to each performance year, the Company recognizes PSA expense ratably over the remaining vesting period starting in the period in which the annual performance targets are set for each such performance year.
 
The Company’s share-based compensation expense associated with stock options, employee stock purchases, RSUs, and PSAs is recorded in the following cost and expense categories for the three months ended March 31, 2011, and 2010 (in millions):
 
 
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
 
 
 
The following table summarizes share-based compensation expense by award type (in millions):
 
 
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
 
 
 
As of March 31, 2011, approximately $137.1 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options will be recognized over a weighted-average period of approximately 2.6 years while approximately $296.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs and PSAs will be recognized over a weighted-average period of approximately 2.6 years.
 
401(k) Plan
 
The Company maintains a savings and retirement plan qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Employees meeting the eligibility requirements, as defined, may contribute up to the statutory limits of the year. The Company has matched employee contributions since January 1, 2001, currently matching 25% of all eligible employee contributions. All matching contributions vest immediately. The Company’s matching contributions to the plan totaled $5.1 million and $4.2 million in the three months ended March 31, 2011, and 2010, respectively.
 
Deferred Compensation Plan
 
The Company’s non-qualified deferred compensation (“NQDC”) plan is an unfunded and unsecured deferred compensation arrangement. Under the NQDC plan, officers and other senior employees may elect to defer a portion of their compensation and contribute such amounts to one or more investment funds. The NQDC plan assets are included within investments, and offsetting obligations are included within accrued compensation on the condensed consolidated balance sheet. The investments are considered trading securities and are reported at fair value. The realized and unrealized holding gains and losses related to these investments are recorded in interest and other income, net, and the offsetting compensation expense are recorded as operating expenses in the condensed consolidated results of operations. The deferred compensation liability under the NQDC plan was approximately $10.8 million and $8.1 million as of March 31, 2011, and December 31, 2010, respectively.
Note 13 - Segments Level 1 (Notes)
Segments [Text Block]
Segments
 
The Company’s chief operating decision maker (“CODM”) allocates resources and assesses performance based on financial information by the Company’s business groups. The Company’s operations are organized into two reportable segments: Infrastructure and Service Layer Technology ("SLT"). The Infrastructure segment consists of routing and switching products and services. Routing includes products and services from the E, M, MX, PTX, and T Series router families, as well as the network application platform, Junos Space. Switching primarily consists of products and services from the EX and QFX Series switching families and wireless local area network solutions. The SLT segment includes SRX services and vGW virtual gateways, Firewall virtual private network systems and appliances, secure socket layer virtual private network appliances, the J Series router product family, intrusion detection and prevention appliances, wide area network optimization platforms, and Junos Pulse.
 
The primary financial measure used by the CODM in assessing performance of the segments is segment operating income, which includes certain cost of revenues, research and development (“R&D”) expenses, sales and marketing expenses, and general and administrative (“G&A”) expenses. The CODM does not allocate certain miscellaneous expenses to its segments even though such expenses are included in the Company’s management operating income.
 
For arrangements with both Infrastructure and SLT products and services, revenue is attributed to the segment based on the underlying purchase order, contract, or sell-through report. Direct costs and operating expenses, such as standard costs, R&D, and product marketing expenses, are generally applied to each segment. Indirect costs, such as manufacturing overhead and other cost of revenues, are allocated based on standard costs. Indirect operating expenses, such as sales, marketing, business development, and G&A expenses are generally allocated to each segment based on factors including headcount, usage, and revenue. The CODM does not allocate share-based compensation, amortization of purchased intangible assets, restructuring and impairment charges, gains or losses on equity investments, other net income and expense, income taxes, or certain other charges to the segments.
 
The following table summarizes financial information for each segment used by the CODM (in millions):
 
 
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.
 
Depreciation expense allocated to the Infrastructure segment was $25.7 million and $24.7 million in three months ended March 31, 2011, and 2010, respectively. Depreciation expense allocated to the SLT segment was $8.3 million and $9.5 million in the three months ended March 31, 2011, and 2010, respectively.
 
The Company attributes revenues to geographic region based on the customer’s ship-to location. The following table shows net revenues by geographic region (in millions):
 
 
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
 
 
During the three months ended March 31, 2011, no single customer accounted for greater than 10% of net revenues. During the three months ended March 31, 2010, Verizon accounted for 11.2% of net revenues.
 
The Company tracks assets by physical location. The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of March 31, 2011, and December 31, 2010, were attributable to U.S. operations. As of March 31, 2011, and December 31, 2010, gross property and equipment held in the U.S., as a percentage of total property and equipment, was approximately 80%. Although management reviews asset information on a corporate level and allocates depreciation expense by segment, the CODM does not review asset information on a segment basis.
 
Note 14 - Income Taxes Level 1 (Notes)
Income Tax [Text Block]
Income Taxes
 
The Company recorded a tax provision of $41.3 million, or an effective tax rate of 24.1%, and a tax benefit of $2.9 million, or effective tax benefit rate of 1.8%, for the three months ended March 31, 2011, and 2010, respectively.
 
The effective tax rate for the three months ended March 31, 2011, differs from the federal statutory rate of 35% primarily due to the federal R&D credit and the benefit of earnings in foreign jurisdictions, which are subject to lower tax rates.
 
The effective tax rate for the three months ended March 31, 2010, differs from the federal statutory rate of 35% primarily due to a $54.1 million income tax benefit resulting from a change in the Company's estimate of unrecognized tax benefits related to share-based compensation and the benefit of earnings in foreign jurisdictions, which are subject to lower tax rates.
 
The gross unrecognized tax benefits decreased by approximately $0.5 million for the three months ended March 31, 2011. Interest and penalties for the same period decreased by approximately $1.5 million. During the quarter ended March 31, 2011, the Company's unrecognized tax benefits, including interest and penalties, decreased by approximately $5.8 million as a result of settlements with taxing authorities.
 
The Company is currently under examination by the Internal Revenue Service ("IRS") for the 2004 through 2006 tax years, the China tax authorities for the 2009 tax year, and the France tax authorities for the 2007 through 2009 tax years. The Company is also subject to two separate ongoing examinations by the India tax authorities for the 2004 tax year and 2004 through 2008 tax years, respectively. Additionally, the Company has not reached a final resolution with the IRS on an adjustment it proposed for the 1999 and 2000 tax years. The Company is not aware of any other income tax examination by taxing authorities in any other major jurisdictions in which it files income tax returns as of March 31, 2011.
 
In 2009, as part of the on-going 2004 IRS audit, the Company received a proposed adjustment related to the license of acquired intangibles under an intercompany R&D cost sharing arrangement. In December 2008, the Company received a proposed adjustment from the India tax authorities related to the 2004 tax year.
In July 2009, the India tax authorities commenced a separate investigation of the Company's 2004 through 2008 tax returns and are disputing the Company's determination of taxable income due to the cost basis of certain fixed assets. The Company accrued $4.6 million in penalties and interest in 2009 related to this matter. The Company understands that the India tax authorities may issue an initial assessment that is substantially higher than this amount. As a result, in accordance with the administrative and judicial process in India, the Company may be required to make payments that are substantially higher than the amount accrued in order to ultimately settle this issue. The Company strongly believes that any assessment it may receive in excess of the amount accrued would be inconsistent with applicable India tax laws and intends to defend this position vigorously.
 
The Company is pursuing all available administrative procedures relative to the matters referenced above. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to these proposed adjustments, and the ultimate resolution of these matters is unlikely to have a material effect on its consolidated financial condition or results of operations; however, there is a possibility that an adverse outcome of these matters could have a material effect on its consolidated financial condition and results of operations. For more information, please see Note 15, Commitments and Contingencies, under the heading “IRS Notices of Proposed Adjustments.”
 
The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of the gross unrecognized tax benefits will decrease by approximately $4.6 million within the next twelve months due to lapses of applicable statutes of limitation in multiple jurisdictions that the Company operated in. However, at this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to the remaining unrecognized tax liabilities due to uncertainties in the timing of tax audit outcomes.
 
Note 15 - Commitments and Contingencies Level 1 (Notes)
Commitments and Contingencies [Text Block]
Commitments and Contingencies
 
Commitments
 
The following table summarizes the Company’s future principal contractual obligations as of March 31, 2011 (in millions):
 
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
 
 
 
Operating Leases
 
The Company leases its facilities under operating leases that expire at various times, the longest of which expires in November 22, 2022. Future minimum payments under the non-cancelable operating leases totaled $357.3 million as of March 31, 2011. Rent expense was $14.8 million and $14.1 million for each of three months ended March 31, 2011, and 2010, respectively.
 
Purchase Commitments
 
In order to reduce manufacturing lead times and ensure adequate component supply, contract manufacturers utilized by the Company place non-cancelable, non-returnable (“NCNR”) orders for components based on the Company’s build forecasts. As of March 31, 2011, there were NCNR component orders placed by the contract manufacturers with a value of $171.8 million. The contract manufacturers use the components to build products based on the Company’s forecasts and customer purchase orders received by the Company. Generally, the Company does not own the components and title to the products transfers from the contract manufacturers to the Company and immediately to the Company’s customers upon delivery at a designated shipment location. If the components remain unused or the products remain unsold for specified periods, the Company may incur carrying charges or obsolete materials charges for components that the contract manufacturers purchased to build products to meet the Company’s forecast or customer orders. As of March 31, 2011, the Company had accrued $15.1 million based on its estimate of such charges.
 
Tax Liabilities
 
As of March 31, 2011, the Company had $101.6 million included in long-term liabilities in the condensed consolidated balance sheet for unrecognized tax positions. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to the additional $101.6 million in liability due to uncertainties in the timing of tax audit outcomes.
 
Long-Term Debt
 
As of March 31, 2011, the Company held long-term debt with a carrying value of $998.9 million. Of these notes, $300.0 million will mature in 2016 and bears interest at a fixed rate of 3.10%, $300.0 million will mature in 2021 and bears interest at a fixed rate of 4.60%, and $400.0 million will mature in 2041 and bears interest at 5.95%. Interest on the notes is payable semiannually. See Note 9, Financing, for further discussion of the Company's long-term debt.
 
Other Contractual Obligations
 
As of March 31, 2011, other contractual obligations primarily consisted of $47.7 million in indemnity-related and service related escrows, required by certain acquisitions completed in 2005 and 2010, $10.7 million under a data center hosting agreement that requires payments through the end of April 2013 and $16.9 million for license and service agreements.
 
Guarantees
 
The Company enters into agreements with customers that contain indemnification provisions relating to potential situations where claims could be alleged that the Company’s products infringe the intellectual property rights of a third-party. Other guarantees or indemnification arrangements include guarantees of product and service performance, guarantees related to third-party customer-financing arrangements, and standby letters of credit for certain lease facilities. As of March 31, 2011, and December 31, 2010, the Company had $22.8 million and $21.6 million, respectively, in guarantees and standby letters of credit.
 
Legal Proceedings
 
From time to time, the Company is involved in disputes, litigation, and other legal actions, including the matters described below. The Company is aggressively defending its current litigation matters, however, the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any future intellectual property litigation may require the Company to make royalty payments, which could adversely affect gross margins in future periods. If any of those events were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, which could result in the need to adjust the liability and record additional expenses.
 
IPO Allocation Case
 
In December 2001, a class action complaint was filed in the United States District Court for the Southern District of New York against the Goldman Sachs Group, Inc., Credit Suisse First Boston Corporation, FleetBoston Robertson Stephens, Inc., Royal Bank of Canada (Dain Rauscher Wessels), SG Cowen Securities Corporation, UBS Warburg LLC (Warburg Dillon Read LLC), Chase (Hambrecht & Quist LLC), J.P. Morgan Chase & Co., Lehman Brothers, Inc., Salomon Smith Barney, Inc., Merrill Lynch, Pierce, Fenner & Smith, Incorporated (collectively, the “Underwriters”), Juniper Networks and certain of Juniper Networks' officers. This action was brought on behalf of purchasers of the Company's common stock in its initial public offering in June 1999 and the Company's secondary offering in September 1999. Specifically, among other things, this complaint alleged that the prospectus pursuant to which shares of common stock were sold in the Company's initial public offering and the Company's subsequent secondary offering contained certain false and misleading statements or omissions regarding the practices of the Underwriters with respect to their allocation of shares of common stock in these offerings and their receipt of commissions from customers related to such allocations. Various plaintiffs have filed actions asserting similar allegations concerning the initial public offerings of approximately 300 other issuers. These various cases pending in the Southern District of New York have been coordinated for pretrial proceedings as In re Initial Public Offering Securities Litigation, 21 MC 92. In April 2002, the plaintiffs filed a consolidated amended complaint in the action against the Company, alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The defendants in the coordinated proceeding filed motions to dismiss. On February 19, 2003, the Court granted in part and denied in part the motion to dismiss, but declined to dismiss the claims against the Company.
 
The parties have reached a global settlement of the litigation. On October 5, 2009, the Court entered an Opinion and Order granting final approval of the settlement. Under the settlement, the insurers are to pay the full amount of settlement share allocated to the Company, and the Company will bear no financial liability. The Company and other defendants will receive complete dismissals from the case. Certain objectors have appealed the Court's October 5, 2009, final order to the Second Circuit Court of Appeals. Plaintiffs have filed motions to dismiss the appeals.
 
IRS Notices of Proposed Adjustments
 
In 2007, the IRS opened an examination of the Company's U.S. federal income tax and employment tax returns for the 2004 fiscal year. Subsequently, the IRS extended their examination of the Company's employment tax returns to include fiscal years 2005 and 2006. As of March 31, 2011, the IRS has not yet concluded its examinations of these returns. In September 2008, as part of its ongoing audit of the U.S. federal income tax return, the IRS issued a Notice of Proposed Adjustment (“NOPA”) regarding the Company's business credits. The Company believes that it has adequately provided for any reasonable foreseeable outcome related to this proposed adjustment. In 2009, the Company received a NOPA from the IRS claiming that the Company owes additional taxes, plus interest and possible penalties, for the 2004 tax year based on a transfer pricing transaction related to the license of acquired intangibles under an intercompany R&D cost sharing arrangement. The asserted changes to the Company's 2004 tax year would affect the Company's income tax liabilities in tax years subsequent to 2003. Because of the NOPA, the estimated incremental tax liability would be approximately $807 million, excluding interest and penalties. The Company has filed a protest to the proposed deficiency with the IRS, which has been referred to the Appeals Division of the IRS. An Appeals conference has been scheduled. The Company strongly believes the IRS' position with regard to this matter is inconsistent with applicable tax laws and existing Treasury regulations, and that the Company's previously reported income tax provision for the year in question is appropriate. However, there can be no assurance that this matter will be resolved in the Company's favor. Regardless of whether this matter is resolved in the Company's favor, the final resolution of this matter could be expensive and time-consuming to defend and/or settle. While the Company believes it has provided adequately for this matter, there is still a possibility that an adverse outcome of the matter could have a material effect on its results of operations and financial condition.
 
The Company has not reached a final resolution with the IRS on an adjustment the IRS proposed for the 1999 and 2000 tax years. The Company is also under routine examination by certain state and non-U.S. tax authorities. The Company believes that it has adequately provided for any reasonably foreseeable outcome related to these audits.
 
Note 16 - Subsequent Events Level 1 (Notes)
Subsequent Events [Text Block]
Subsequent Events
 
Stock Repurchases
 
Subsequent to March 31, 2011, through the filing of this report, the Company repurchased and retired approximately 2.5 million shares of its common stock for approximately $100.0 million under its 2010 Stock Repurchase program at an average purchase price of $39.28 per share. The Company's 2010 Stock Repurchase Program had remaining authorized funds of $454.8 million as of the report filing date. The amount and timing of purchases under the Company's 2010 Stock Repurchase Program depend on various circumstances and will be made from time to time, as advisable under the circumstances, and as permitted by securities laws and other legal requirements. This program may be discontinued at any time.
 
Note 2 - Summary of Significant Accounting Policies Level 2 (Policies)
ASU 2010-28 Intangibles Goodwill and Other: When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts [Text Block]
In December 2010, the FASB issued ASU No. 2010-28, Topic 350 - Intangibles - Goodwill and Other: When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (“ASU 2010-28”), which modifies Step 1 of the goodwill impairment test for reporting units with zero or negative amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exist. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. The Company's adoption of ASU 2010-28 did not have an impact on its consolidated results of operations or financial condition.
Note 3 - Business Combination Level 3 (Tables)
During the three months ended March 31, 2011, the Company completed two business combinations for cash of approximately $30.5 million. Total purchase consideration for these acquisitions was allocated as follows (in millions):
 
 
2011 Acquisitions
Net tangible assets acquired
$
1.7
 
Intangible assets acquired
28.4
 
Goodwill
0.4
 
    Total
$
30.5
 
The following table presents details of the intangible assets acquired through the business combinations completed during the three months ended March 31, 2011 (in millions, except years):
 
 
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
 
Note 4 - Net Income per Share Level 3 (Tables)
Summary of calculation of basic and diluted net income per share [Text Block]
The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks common stockholders (in millions, except per share amounts):
 
 
Three Months Ended March 31,
 
2011
 
2010
Numerator:
 
 
 
Net income attributable to Juniper Networks
$
129.8
 
 
$
163.1
 
Denominator:
 
 
 
Weighted-average shares used to compute basic net income per share
530.8
 
 
521.1
 
Effect of dilutive securities:
 
 
 
Employee stock awards
18.0
 
 
15.6
 
Weighted-average shares used to compute diluted net income per share
548.8
 
 
536.7
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
Basic
$
0.24
 
 
$
0.31
 
Diluted
$
0.24
 
 
$
0.30
 
Note 5 - Cash, Cash Equivalents and Investments Level 3 (Tables)
The following table summarizes the Company's cash and cash equivalents (in millions):
 
 
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
 
The following table summarizes the Company's unrealized gains and losses, and fair value of investments designated as available-for-sale and trading securities, as of March 31, 2011, and December 31, 2010 (in millions):
 
 
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
 
 
 
The following table presents the maturities of the Company's available-for-sale and trading securities, as of March 31, 2011 (in millions):
 
 
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
 
The following tables present the Company's trading and available-for sale investments that are in an unrealized loss position as of March 31, 2011, and December 31, 2010 (in millions):
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
As of 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.
 
The following table summarizes the Company's cash and investments that are classified as restricted cash in the condensed consolidated balance sheets (in millions):
 
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
 
Note 6 - Fair Value Measurements Level 3 (Tables)
Assets measured at fair value on a recurring basis [Text Block]
The following tables provide a summary of assets measured at fair value on a recurring basis (in millions):
 
 
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.
 
The following tables summarizes the Company's assets measured at fair value on a recurring basis as reported in the consolidated balance sheet (in millions):
 
 
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
 
Note 7 - Goodwill and Purchased Intangible Assets Level 3 (Tables)
The following table summarizes the Company's goodwill activities by segment in the three months ended March 31, 2011 (in millions):
 
 
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
 
The following table presents the Company’s purchased intangible assets (in millions):
 
 
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
 
The estimated future amortization expense of purchased intangible assets with finite lives for future periods is as follows (in millions):
 
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
 
Note 8 - Other Financial Information Level 3 (Tables)
Changes in the Company’s warranty reserve were as follows (in millions):
 
 
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
 
Details of the Company's deferred revenue were as follows (in millions):
 
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
 
The following table provides a summary of changes in the Company’s restructuring liability (in millions):
 
 
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
 
 
Other expense and income, net, consists of the following (in millions):
 
 
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
 
Note 9 - Financing Level 3 (Tables)
Long-term Debt [Text Block]
The following table summarizes the Company's long-term debt (in millions, except percentages):
 
 
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
 
 
 
 
Note 10 - Derivative Instruments Level 3 (Tables)
Schedule of Derivative Instruments [Text Block]
 
The notional amount of Company's foreign currency derivatives are summarized as follows (in millions):
 
As of
 
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
 
Note 11 - Equity Level 3 (Tables)
Comprehensive income attributable to Juniper Networks consists of the following (in millions):
 
 
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
 
The following table summarizes equity activity for the three months ended March 31, 2011 (in millions):
 
 
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
 
 
The following table summarizes equity activity for the three months ended March 31, 2010 (in millions):
 
 
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
 
Note 12 - Employee Benefit Plans Level 3 (Tables)
The following table summarizes the Company’s stock option activity and related information as of and for the three months ended March 31, 2011 (in millions, except for per share amounts and years):
 
 
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
 
The following table summarizes information about the Company’s RSUs and PSAs as of and for the three months ended March 31, 2011 (in millions, except per share amounts and years):
 
 
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.
The following table presents the stock grant activity and the total number of shares available for grant under the 2006 Plan as of March 31, 2011 (in millions):
 
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.
The assumptions used and the resulting estimates of fair value for employee stock options and the employee stock purchase plan during the three months ended March 31, 2011, and 2010 were:
 
 
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
The Company’s share-based compensation expense associated with stock options, employee stock purchases, RSUs, and PSAs is recorded in the following cost and expense categories for the three months ended March 31, 2011, and 2010 (in millions):
 
 
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
 
The following table summarizes share-based compensation expense by award type (in millions):
 
 
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
 
Note 13 - Segments Level 3 (Tables)
The following table summarizes financial information for each segment used by the CODM (in millions):
 
 
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.
The following table shows net revenues by geographic region (in millions):
 
 
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
 
 
Note 15 - Commitments and Contingencies Level 3 (Tables)
Summary of principal contractual obligations [Text Block]
The following table summarizes the Company’s future principal contractual obligations as of March 31, 2011 (in millions):
 
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
 
Note 1 - Basis of Presentation Level 4 (Details)
Mar. 31, 2011
Company's interest in the joint venture - NSN
0.60 
Note 3 - Business Combination Level 4 (Details) - Business Combination, Purchase Price Allocation (USD $)
In Millions
Mar. 31, 2011
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
$ 28 
Business Acquisitions 2011 [Member]
 
Business Acquisition [Line Items]
 
Net assets (liabilities) assumed
Acquired finite-lived intangible assets, amount
28 
Goodwill
Total purchase consideration
$ 31 
Note 3 - Business Combination Level 4 (Details) - Business Combination, Intangible Assets Acquired (USD $)
In Millions, unless otherwise specified
Mar. 31, 2011
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
$ 28 
Business Acquisitions 2011 [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
28 
Business Acquisitions 2011 [Member] | Existing or Core Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
10 
Business Acquisitions 2011 [Member] | Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
Business Acquisitions 2011 [Member] | Patents [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
Existing or Core Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
22 
Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
Patents [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
$ 1 
Note 3 - Business Combination Level 4 (Details) - Business Combination, Textuals (USD $)
3 Months Ended
Mar. 31, 2011
Business Acquisition [Line Items]
 
Business Combination, Pro Forma Information, Disclosure Impracticable
Goodwill deductible for income tax purposes
$ 0 
Acquisition related costs
$ 5,061,000 
Note 4 - Net Income per Share Level 4 (Details) (USD $)
In Thousands, except Share data
3 Months Ended
Mar. 31,
2011
2010
Numerator
 
 
Net income attributable to Juniper Networks
$ 129,750 
$ 163,115 
Denominator
 
 
Weighted average shares used to compute basic net income per share
530,789,000 
521,141,000 
Effect of dilutive securities:
 
 
Employee stock awards
18,000,000 
15,600,000 
Weighted average shares used to compute diluted net income per share
548,825,000 
536,718,000 
Net income per share attributable to Juniper Networks common stockholders:
 
 
Basic
0.24 
0.31 
Diluted
$ 0.24 
$ 0.3 
Net Income per Share Textuals
 
 
Anti-dilutive shares excluded from computation of diluted earnings per share
5,800,000 
19,600,000 
Note 5 - Cash, Cash Equivalents and Investments Level 4 (Details) (USD $)
In Thousands
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2010
Dec. 31, 2009
Cash and cash equivalents
$ 2,944,383 
$ 1,811,887 
$ 1,723,949 
$ 1,604,723 
Cash [Member]
 
 
 
 
Cash and cash equivalents
876,800 
686,300 
 
 
Demand Deposits [Member]
 
 
 
 
Cash and cash equivalents
475,900 
413,000 
 
 
Bank Time Deposits [Member]
 
 
 
 
Cash and cash equivalents
400,900 
273,300 
 
 
Cash Equivalents [Member]
 
 
 
 
Cash and cash equivalents
2,067,600 
1,125,600 
 
 
US Treasury Securities [Member]
 
 
 
 
Cash and cash equivalents
146,500 
76,700 
 
 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
 
 
Cash and cash equivalents
37,800 
5,000 
 
 
Certificates of Deposit [Member]
 
 
 
 
Cash and cash equivalents
5,600 
 
 
Commercial Paper [Member]
 
 
 
 
Cash and cash equivalents
21,000 
4,000 
 
 
Money Market Funds [Member]
 
 
 
 
Cash and cash equivalents
1,856,700 
1,039,900 
 
 
Note 5.2 - Cash, Cash Equivalents, and Investments - Available for Sale Securities Level 4 (Details) (USD $)
In Millions
3 Months Ended
Mar. 31, 2011
Year Ended
Dec. 31, 2010
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
$ 1,127 
$ 999 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
(1)
(1)
Available-for-sale securities, estimated fair value
1,128 
1,002 
Trading securities:
 
 
Trading securities, amortized cost
11 
Trading securities, gross unrealized gains
Trading securities, gross unrealized losses
Trading securities, estimated fair value
11 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
1,137 
1,007 
Total investments, gross unrealized gains
Total investments, gross unrealized losses
(1)
(1)
Total investments, estimated fair value
1,139 
1,010 
Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
1,127 
999 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
(1)
(1)
Available-for-sale securities, estimated fair value
1,128 
1,002 
US Government Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
173 
158 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
Available-for-sale securities, estimated fair value
173 
158 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
267 
214 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
(0)
(0)
Available-for-sale securities, estimated fair value
267 
214 
Foreign Government Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
24 
47 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
Available-for-sale securities, estimated fair value
24 
47 
Certificates of Deposit [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
36 
21 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
Available-for-sale securities, estimated fair value
36 
21 
Commercial Paper [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
31 
10 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
Available-for-sale securities, estimated fair value
31 
10 
Asset-backed Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
112 
90 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
(0)
(0)
Available-for-sale securities, estimated fair value
112 
90 
Corporate Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
485 
460 
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
(0)
(0)
Available-for-sale securities, estimated fair value
486 
462 
Short-term Investments [Member]
 
 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
492 
474 
Total investments, gross unrealized gains
Total investments, gross unrealized losses
Total investments, estimated fair value
494 
475 
Other Long-term Investments [Member]
 
 
Available-for-sale and Trading Investments [Abstract]
 
 
Total investments, amortized cost
645 
534 
Total investments, gross unrealized gains
Total investments, gross unrealized losses
(1)
(1)
Total investments, estimated fair value
$ 646 
$ 535 
Note 5.3 - Cash, Cash Equivalents, and Investments - Maturities of Available for Sale Investments Level 4 (Details) (USD $)
In Millions
3 Months Ended
Mar. 31, 2011
Available-for-sale and Trading Investments [Abstract]
 
Amortized cost, no contractual maturity
$ 11 
Gross unrealized gains, no contractual maturity
Gross unrealized losses, no contractual maturity
Estimated fair value, no contractual maturity
11 
Total investments, amortized cost
1,137 
Total investments, gross unrealized gains
Total investments, gross unrealized losses
(1)
Total investments, estimated fair value
1,139 
Debt Securities [Member]
 
Available-for-sale and Trading Investments [Abstract]
 
Amortized cost due within one year
482 
Gross unrealized gains due within one year
Gross unrealized losses due within one year
Estimated fair value due within one year
483 
Amortized cost due between one and five years
645 
Gross unrealized gains due between one and five years
Gross unrealized losses due between one and five years
(1)
Estimated fair value due between one and five year
$ 646 
Note 5.4 - Cash, Cash Equivalents, and Investments - Unrealized Loss for Trading and Available for Sale Investments Level 4 (Details) (USD $)
In Millions
3 Months Ended
Mar. 31, 2011
Year Ended
Dec. 31, 2010
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
$ 479 
$ 222 
Unrealized loss, less than 12 months
(1)
(1)
Fair value, 12 months or greater
14 
35 
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
493 
257 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(1)
(1)
US Government Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
81 
 
Unrealized loss, less than 12 months
 
Fair value, 12 months or greater
 
Unrealized loss, 12 months or greater
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
81 
 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
186 
58 
Unrealized loss, less than 12 months
(0)
(0)
Fair value, 12 months or greater
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
186 
58 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0)
(0)
Foreign Government Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
Unrealized loss, less than 12 months
 
Fair value, 12 months or greater
 
Unrealized loss, 12 months or greater
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
 
Commercial Paper [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
Unrealized loss, less than 12 months
 
Fair value, 12 months or greater
 
Unrealized loss, 12 months or greater
 
Total fair value, Available-for-sale investments in continuous unrealized loss position
 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
 
Asset-backed Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
60 
55 
Unrealized loss, less than 12 months
(0)
(0)
Fair value, 12 months or greater
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
60 
55 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0)
(0)
Corporate Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
153 
104 
Unrealized loss, less than 12 months
(0)
(0)
Fair value, 12 months or greater
14 
29 
Unrealized loss, 12 months or greater
Total fair value, Available-for-sale investments in continuous unrealized loss position
166 
133 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
$ (0)
$ (0)
Note 5.5 - Cash, Cash Equivalents, and Investments - Restricted Cash Level 4 (Details) (USD $)
Mar. 31, 2011
Dec. 31, 2010
Restricted Cash and Investments [Abstract]
 
 
Total restricted cash and investments
$ 102,125,000 
$ 119,346,000 
Restricted Cash [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted cash
1,700,000 
1,700,000 
Demand Deposits [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted cash
1,700,000 
1,700,000 
Restricted Investments [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
100,400,000 
117,600,000 
US Government Debt Securities [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
600,000 
600,000 
Corporate Debt Securities [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
1,600,000 
2,700,000 
Mutual Funds [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
1,100,000 
Money Market Funds [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
$ 97,100,000 
$ 114,300,000 
Note 5.6 - Cash, Cash Equivalents, and Investments - Textuals Level 4 (Details)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Dec. 31, 2010
Apr. 08, 2010
Total investments In unrealized loss position
109 
 
73 
 
Investment in privately-held companies
 
 
Loss due to impairment of privately held equity investments measured on a non-recurring basis
 
 
Decrease in Restricted Cash
17 
 
 
 
Agreed total payable amount representing the cash value of unvested restricted shares in Ankeena
 
 
11 
Vesting period for restricted shares (in months)
18 
 
 
 
Unrealized gains on restricted investments
 
 
Unrealized losses on restricted investments
 
 
Equity Method Investee, Privately Held Companies [Member]
 
 
 
 
Minority equity investment
28 
 
22 
 
Note 6 - Fair Value Measurements Level 4 (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Fair Value Measurements (Textuals)
 
 
Amount of restricted investments measured at fair value included in the balance of Government Securities
$ 1 
$ 1 
Amount of restricted investments measured at fair value included in the balance of Corporate Debt Securities
Amount of restricted investments measured at fair value included in the balance of Money Market Funds
97 
114 
Amount of Restricted Investments Measured at Fair Value Included in Balance of Mutual Funds
 
Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
3,295 
2,245 
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
2,290 
1,442 
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
1,005 
803 
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
US Government Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
320 
236 
US Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
99 
55 
US Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
221 
181 
US Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
US Government-sponsored Enterprises Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
304 
219 
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
237 
209 
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
67 
10 
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Foreign Government Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
24 
47 
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
21 
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
24 
26 
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Certificates of Deposit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
42 
21 
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
42 
21 
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Commercial Paper [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
52 
14 
Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
52 
14 
Commercial Paper [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Asset-backed Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
112 
90 
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
112 
90 
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Corporate Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
488 
464 
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
488 
462 
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Money Market Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
1,954 
1,154 
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
1,954 
1,154 
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Mutual Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
12 
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
12 
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
Foreign Exchange Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Derivative Financial Instruments, Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Derivative assets:
 
 
Derivative assets measured at fair value on a recurring basis
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
12 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
3,295 
2,245 
Derivative assets:
 
 
Total assets measured at fair value
3,309 
2,253 
Fair Value, Inputs, Level 1 [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
12 
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
2,290 
1,442 
Derivative assets:
 
 
Total assets measured at fair value
2,302 
1,450 
Fair Value, Inputs, Level 2 [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
1,005 
803 
Derivative assets:
 
 
Total assets measured at fair value
1,007 
804 
Fair Value, Inputs, Level 3 [Member]
 
 
Trading securities:
 
 
Total trading securities measured at fair value on a recurring basis
Available-for-sale securities:
 
 
Assets measured at fair value on a recurring basis
Derivative assets:
 
 
Total assets measured at fair value
$ 0 
$ 0 
Note 6.2 - Fair Value Measurements, Assets by Balance Sheet Grouping Level 4 (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
$ 2,068 
$ 1,126 
Short-term investments measured at fair value
494 
475 
Long-term investments measured at fair value
646 
535 
Restricted cash measured at fair value
100 
118 
Prepaid expenses and other current assets measured at fair value
Total assets measured at fair value
3,309 
2,253 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
1,857 
1,040 
Short-term investments measured at fair value
122 
151 
Long-term investments measured at fair value
225 
142 
Restricted cash measured at fair value
98 
117 
Prepaid expenses and other current assets measured at fair value
Total assets measured at fair value
2,302 
1,450 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
211 
86 
Short-term investments measured at fair value
371 
324 
Long-term investments measured at fair value
421 
393 
Restricted cash measured at fair value
Prepaid expenses and other current assets measured at fair value
Total assets measured at fair value
1,007 
804 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
Short-term investments measured at fair value
Long-term investments measured at fair value
Restricted cash measured at fair value
Prepaid expenses and other current assets measured at fair value
Total assets measured at fair value
$ 0 
$ 0 
Note 6.3 - Fair Value Measurements, Liabilities Measured On A Recurring Basis Level 4 (Details)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Sep. 30, 2010
Dec. 31, 2009
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Dec. 31, 2009
Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
 
 
 
 
 
 
Derivative liabilities measured at fair value on a recurring basis
 
 
(0)
(3)
Transfers between levels of fair value [Abstract]
 
 
 
 
 
 
 
 
Amount of significant transfers of assets and liabilities between levels of the fair value hierarchy
 
 
 
 
 
 
Note 6.4 - Fair Value Measurement, Assets Measured On A Nonrecurring Basis Level 4 (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Fair Value Assets Measured On Non Recurring Basis Assets
$ 0 
$ 0 
Fair Value Liabilities Measured On Nonrecurring Basis Liabilities
$ 0 
$ 0 
Note 7 - Goodwill and Purchased Intangible Assets Level 4 (Details)
3 Months Ended
Mar. 31,
2011
2010
Goodwill [Roll Forward]
 
 
Gross Goodwill, beginning of period
5,207,800,000 
 
Accumulated Impairment, beginning of period
(1,280,000,000)
 
Goodwill, beginning of period
3,927,807,000 
 
Goodwill, Translation and Purchase Accounting Adjustments
(900,000)
 
Goodwill acquired
400,000 
 
Gross Goodwill, end of period
5,207,300,000 
 
Accumulated Impairment, end of period
(1,280,000,000)
 
Goodwill, end of period
3,927,280,000 
 
Goodwill impairment loss
Infrastructure Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Gross Goodwill, beginning of period
1,643,400,000 
 
Accumulated Impairment, beginning of period
 
Goodwill, beginning of period
1,643,400,000 
 
Goodwill, Translation and Purchase Accounting Adjustments
(900,000)
 
Goodwill acquired
400,000 
 
Gross Goodwill, end of period
1,642,900,000 
 
Accumulated Impairment, end of period
 
Goodwill, end of period
1,642,900,000 
 
Service Layer Technologies Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Gross Goodwill, beginning of period
3,564,400,000 
 
Accumulated Impairment, beginning of period
(1,280,000,000)
 
Goodwill, beginning of period
2,284,400,000 
 
Goodwill, Translation and Purchase Accounting Adjustments
 
Goodwill acquired
 
Gross Goodwill, end of period
3,564,400,000 
 
Accumulated Impairment, end of period
(1,280,000,000)
 
Goodwill, end of period
2,284,400,000 
 
Note 7.2 - Goodwill and Purchased Intangible Assets, Finite Lived Intangible Assets by Class Level 4 (Details)
3 Months Ended
Mar. 31,
2011
2010
Dec. 31, 2010
Purchased Intangible Assets [Line Items]
 
 
 
Finite-lived intangible assets, gross
557,500,000 
 
448,900,000 
Finite-lived intangible assets, accumulated amortization
(450,300,000)
 
(443,600,000)
Acquired finite-lived intangible assets, amount
28,400,000 
 
108,600,000 
Finite-lived intangible assets, net
135,600,000 
 
113,900,000 
Indefinite-lived Intangible Assets
7,900,000 
 
Acquired Indefinite-lived Intangible Asset, Amount
 
7,900,000 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
7,900,000 
 
7,900,000 
Intangible Assets Gross Excluding Goodwill
565,400,000 
 
448,900,000 
Purchased Intangible Assets, Accumulated Amortization
(450,300,000)
 
(443,600,000)
Acquired Finite and Indefinite Lived intangible Assets, Amount
28,400,000 
 
116,500,000 
Purchased intangible assets, net
143,506,000 
 
121,803,000 
Amortization of purchased intangible assets
6,700,000 
1,100,000 
 
Impairment of finite-lived intangible assets
 
Business Acquisitions 2011 [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Acquired finite-lived intangible assets, amount
28,400,000 
 
 
Technologies and Patents [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Finite-lived intangible assets, gross
471,100,000 
 
380,000,000 
Finite-lived intangible assets, accumulated amortization
(386,900,000)
 
(381,400,000)
Acquired finite-lived intangible assets, amount
23,300,000 
 
91,100,000 
Finite-lived intangible assets, net
107,500,000 
 
89,700,000 
Other Intangible Assets [Member]
 
 
 
Purchased Intangible Assets [Line Items]
 
 
 
Finite-lived intangible assets, gross
86,400,000 
 
68,900,000 
Finite-lived intangible assets, accumulated amortization
(63,400,000)
 
(62,200,000)
Acquired finite-lived intangible assets, amount
5,100,000 
 
17,500,000 
Finite-lived intangible assets, net
28,100,000 
 
24,200,000 
Note 7.3 - Goodwill and Purchased Intangible Assets, Estimated Future Amortization Expense Intangible Assets Level 4 (Details) (USD $)
In Millions
3 Months Ended
Mar. 31, 2011
Finite-Lived Intangible Assets [Line Items]
 
Future Amortization Expense Remaining Nine Months
$ 20 
2012
26 
2013
26 
2014
24 
2015
19 
Thereafter
19 
Total
$ 136 
Note 8.2 - Other Financial Information, Deferred Revenue Level 4 (Details) (USD $)
Mar. 31, 2011
Dec. 31, 2010
Deferred Revenue Reported as [Abstract]
 
 
Deferred Revenue, Current
$ 733,249,000 
$ 660,264,000 
Deferred Revenue, Noncurrent
217,024,000 
224,165,000 
Deferred revenue, total
950,273,000 
884,429,000 
Sales Revenue, Goods, Net [Member]
 
 
Deferred Product Revenue [Abstract]
 
 
Undelivered product commitments and other product deferrals
303,100,000 
294,100,000 
Distributor inventory and other sell-through items
141,800,000 
143,400,000 
Deferred gross product revenue
444,900,000 
437,500,000 
Deferred cost of product revenue
(143,000,000)
(148,800,000)
Deferred product revenue, net
301,900,000 
288,700,000 
Sales Revenue, Services, Net [Member]
 
 
Deferred Product Revenue [Abstract]
 
 
Deferred service revenue
$ 648,400,000 
$ 595,700,000 
Note 8.3 - Other Financial Information, Restructuring Level 4 (Details)
3 Months Ended
Mar. 31,
2011
2010
Restructuring Reserve [Roll Forward]
 
 
Beginning Balance
7,900,000 
 
Charges
8,105,000 
Cash payments
(400,000)
 
Adjustments
(300,000)
 
Ending Balance
7,200,000 
 
Facility Closing [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Beginning Balance
7,700,000 
 
Charges
 
Cash payments
(700,000)
 
Adjustments
 
Ending Balance
7,000,000 
 
SeveranceContractualCommitmentsAndOtherCharges [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Beginning Balance
200,000 
 
Charges
 
Cash payments
300,000 
 
Adjustments
(300,000)
 
Ending Balance
200,000 
 
Note 8.4 - Other Financial Information, Interest and Other Income Net Level 4 (Details) (USD $)
In Thousands
3 Months Ended
Mar. 31,
2011
2010
Component of Other Income, Nonoperating [Line Items]
 
 
Interest income
$ 2,400 
$ 2,500 
Interest Expense
(6,500)
(1,600)
Other income and expense, net
(2,400)
600 
Total other income (expense), net
$ (6,462)
$ 1,459 
Note 8 - Other Financial Information Level 4 (Details) (USD $)
3 Months Ended
Mar. 31,
2011
2010
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
Beginning balance
$ 35,900,000 
$ 38,200,000 
Provisions made during the period, net
15,300,000 
12,100,000 
Change in estimate
(800,000)
(500,000)
Actual costs incurred during the period
(12,100,000)
(12,000,000)
Ending balance
$ 38,300,000 
$ 37,800,000 
Note 9 - Financing Level 4 (Details)
3 Months Ended
Mar. 31,
2011
2010
Dec. 31, 2010
Long-Term Debt [Line Items]
 
 
 
Senior Notes
1,000,000,000 
 
 
Unaccreted Discount
(1,100,000)
 
 
Long-term Debt, Excluding Current Maturities
998,923,000 
 
Debt Instrument, Fair Value
995,300,000 
 
 
Change of Control Repurchase Price Percentage
1.01 
 
 
Financing Arrangements [Abstract]
 
 
 
Number of days due from receivable
30 
 
 
Sale of receivables
174,800,000 
135,600,000 
 
Proceeds from sale and collection of receivables
194,300,000 
138,900,000 
 
Receivables from sale of receivables
103,600,000 
 
127,400,000 
Cash received from financing provider that has not been recognized as revenue
61,600,000 
 
49,100,000 
Fixed Rate Note Due 2016 [Member]
 
 
 
Long-Term Debt [Line Items]
 
 
 
Senior Notes
300,000,000 
 
 
Debt Instrument, Interest Rate, Stated Percentage
0.031 
 
 
Debt Instrument, Interest Rate, Effective Percentage
0.0312 
 
 
Fixed Rate Note Due 2021 [Member]
 
 
 
Long-Term Debt [Line Items]
 
 
 
Senior Notes
300,000,000 
 
 
Debt Instrument, Interest Rate, Stated Percentage
0.046 
 
 
Debt Instrument, Interest Rate, Effective Percentage
0.0463 
 
 
Fixed Rate Note Due 2041 [Member]
 
 
 
Long-Term Debt [Line Items]
 
 
 
Senior Notes
400,000,000 
 
 
Debt Instrument, Interest Rate, Stated Percentage
0.0595 
 
 
Debt Instrument, Interest Rate, Effective Percentage
0.0601 
 
 
Note 10 - Derivative Instruments Level 4 (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Derivative [Line Items]
 
 
Cash flow hedges
$ 126 
$ 110 
Non-designated hedges
149 
74 
Total
$ 274 
$ 185 
Note 10.2 - Derivative Instruments, Balance Sheet Location Level 4 (Details) (Foreign Exchange Contract [Member], USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Foreign Exchange Contract [Member] | Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset Designated as Hedging Instrument, Fair Value
$ 2 
$ 0 
Foreign Exchange Contract [Member] | Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability Designated as Hedging Instrument, Fair Value
$ 0 
$ 3 
Note 10.3 - Derivative Instruments, Gain (Loss) Level 4 (Details)
In Millions
3 Months Ended
Mar. 31,
2011
2011
2010
2011
2010
2011
2010
2011
2010
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
Loss recognized in accumulated other comprehensive income, effective portion
 
 
(2)
 
 
 
 
 
 
Gain recognized in accumulated other comprehensive income, effective portion
 
 
 
 
 
 
 
 
Loss reclassified from accumulated other comprehensive income into Statements of Operations, effective portion
 
 
 
 
(1)
 
 
 
 
Gain reclassified from accumulated other comprehensive income into Statements of Operations, effective portion
 
 
 
 
 
 
 
 
Derivative instruments not designated as hedging instruments, loss
 
 
 
 
 
 
 
(0)
(0)
Derivative Instruments Textuals Abstract [Abstract]
 
 
 
 
 
 
 
 
 
Maturities of cash flow hedge derivatives
less than one year 
 
 
 
 
 
 
 
 
Reclassification time of other comprehensive income (loss) into income
within the next 12 months 
 
 
 
 
 
 
 
 
Maturity period of non-designated hedges derivatives
approximately two months 
 
 
 
 
 
 
 
 
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net
 
 
 
 
 
 
 
Note 11 - Equity Level 4 (Details) (USD $)
3 Months Ended
Mar. 31,
2011
2010
Consolidated net income
$ 129,660,000 
$ 164,610,000 
Other comprehensive loss, net of tax:
 
 
Change in net unrealized losses on investments, net of tax of nil
4,400,000 
(400,000)
Change in foreign currency translation adjustment, net of tax of nil
6,600,000 
(2,700,000)
Total other comprehensive loss, net of tax
11,000,000 
(3,100,000)
Consolidated comprehensive income (loss)
140,700,000 
161,500,000 
Adjust for comprehensive income (loss) attributable to noncontrolling interest
100,000 
(1,500,000)
Comprehensive income (loss) attributable to Juniper Networks
$ 140,800,000 
$ 160,000,000 
Note 11.2 - Equity, Stock Repurchase Activities Level 4 (Details) (USD $)
In Millions, except Per Share data
3 Months Ended
Mar. 31, 2011
Common stock repurchased and retired under stock repurchase programs, shares
Common stock repurchased and retired under stock repurchase programs, average purchase price
$ 42.14 
Common stock repurchased and retired under stock repurchase programs, value
200 
Stock Repurchase Program 2008 [Member]
 
Common stock authorized for repurchase under the 2010 and 2008 Stock Repurchase Programs
1,000 
Stock repurchase program remaining authorized funds
Stock Repurchase Program 2010 [Member]
 
Common stock authorized for repurchase under the 2010 and 2008 Stock Repurchase Programs
1,000 
Stock repurchase program remaining authorized funds
$ 555 
Note 11.3 Equity, Stockholders' Equity Activity Level 4 (Details) (USD $)
3 Months Ended
Mar. 31,
2011
2010
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
$ 6,896,849,000 
$ 6,121,322,000 
Consolidated net income
129,660,000 
164,610,000 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
4,400,000 
(400,000)
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
6,600,000 
(2,700,000)
Stock Issued During Period, Value, Employee Stock Purchase Plan
23,700,000 
20,800,000 
Stock Issued During Period, Value, Stock Options Exercised
241,700,000 
101,200,000 
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
(2,000,000)
Common stock repurchased and retired under stock repurchase programs, value
(200,200,000)
(74,400,000)
Shares Repuchased And Retired Related To Net Issuances
(4,900,000)
(1,800,000)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
47,600,000 
40,600,000 
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
39,400,000 
50,600,000 
Common Stock Including Additional Paid in Capital [Member]
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
9,998,125,000 
9,267,584,000 
Consolidated net income
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
Stock Issued During Period, Value, Employee Stock Purchase Plan
23,700,000 
20,800,000 
Stock Issued During Period, Value, Stock Options Exercised
241,700,000 
101,200,000 
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
Common stock repurchased and retired under stock repurchase programs, value
(70,300,000)
(5,700,000)
Shares Repuchased And Retired Related To Net Issuances
(1,800,000)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
47,600,000 
40,600,000 
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
39,400,000 
50,600,000 
Retained Earnings [Member]
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
(3,111,537,000)
(3,143,924,000)
Consolidated net income
129,750,000 
163,115,000 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
Stock Issued During Period, Value, Employee Stock Purchase Plan
Stock Issued During Period, Value, Stock Options Exercised
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
Common stock repurchased and retired under stock repurchase programs, value
(129,900,000)
(68,700,000)
Shares Repuchased And Retired Related To Net Issuances
(3,100,000)
(1,800,000)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
Accumulated Other Comprehensive Income [Member]
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
9,746,000 
(4,467,000)
Consolidated net income
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
4,400,000 
(400,000)
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
6,600,000 
(2,700,000)
Stock Issued During Period, Value, Employee Stock Purchase Plan
Stock Issued During Period, Value, Stock Options Exercised
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
Common stock repurchased and retired under stock repurchase programs, value
Shares Repuchased And Retired Related To Net Issuances
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
Noncontrolling Interest [Member]
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
510,000 
2,124,000 
Consolidated net income
(90,000)
1,495,000 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
Stock Issued During Period, Value, Employee Stock Purchase Plan
Stock Issued During Period, Value, Stock Options Exercised
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
(2,000,000)
Common stock repurchased and retired under stock repurchase programs, value
Shares Repuchased And Retired Related To Net Issuances
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
$ 0 
$ 0 
Note 12 - Employee Benefit Plans Level 4 (Details)
3 Months Ended
Mar. 31, 2011
Mar. 31, 2011
3 Months Ended
Mar. 31, 2011
Share-Based Compensation Plans
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price
 
 
0.15 
Periodic Payroll Deductions of Base Compensation in Percent
 
 
0.1 
Maximum Purchase of Common Stock, Shares
 
 
6,000 
ESPP purchase period, share limitation (in months)
 
 
12 
Maximum Purchase of Common Stock, Value
 
 
25,000 
ESPP purchase period, value limitation (in calendar years)
 
 
Number of Shares in Outstanding Equity Awards, Under 2006 Plan
 
61,100,000 
 
Number of Shares Available for Future Issuance, Under 2006 Plan
12,800,000 
 
 
Outstanding Stock Options and RSU's Covering Shares of Common Stock
1,800,000 
 
 
Stock Option Activities
 
 
 
Beginning Balance, Number of Shares
49,400,000 
41,800,000 
 
Beginning Balance, Weighted Average Exercise Price
21.9 
 
 
Options Granted, Number of Shares
4,200,000 
 
 
Options Granted, Weighted Average Exercise Price
41.46 
 
 
Options Canceled, Number of Shares
(500,000)
 
 
Options Canceled, Weighted Average Exercise Price
23.17 
 
 
Options Exercised, Number of Shares
(11,200,000)
 
 
Options Exercised, Weighted Average Exercise Price
21.58 
 
 
Options Expired, Number of Shares
(100,000)
 
 
Options Expired, Weighted Average Exercise Price
67.1 
 
 
Ending Balance, Number of Shares
 
41,800,000 
 
Ending Balance, Weighted Average Exercise Price
23.88 
 
 
Weighted Average Remaining Contractual Term at Period End
4.4 
 
 
Aggregate Intrinsic Value at Period End
764,800,000 
 
 
Vested or Expected-to-Vest Options, Number of Shares at Period End
39,000,000 
 
 
Vested or Expected-to-Vest Options, Weighted Average Exercise Price at Period End
23.41 
 
 
Vested and Expected-to-Vest Options, Weighted Average Remaining Contractual Term at Period End
4.3 
 
 
Vested or Expected-to-Vest Options, Aggregate Intrinsic Value at Period End
730,200,000 
 
 
Exercisable Options, Number of Shares at Period End
23,900,000 
 
 
Exercisable Options, Weighted Average Exercise Price at Period End
20.98 
 
 
Exercisable Options, Weighted Average Remaining Contractual Term at Period End
3.4 
 
 
Exercisable Options, Aggregate Intrinsic Value at Period End
504,800,000 
 
 
Closing Stock Price At Plan Period End
42.08 
 
 
Intrinsic Value of Options Exercise, Pre-Tax
211,400,000 
 
 
Total Fair Value of Options Vested
27,600,000 
 
 
Note 12.2 - Employee Benefit Plans, Share Based Compensation, Equity Instruments Other Than Options Level 4 (Details)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31,
2011
2011
2011
2011
2010
2011
2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Restricted Stock Units Vest From Grant Date In Years
 
 
 
 
 
Share-Based Compensation Arrangement Vesting Period PSA in Years
 
 
 
 
 
 
Restricted Stock Units And Performance Share Awards Activities
 
 
 
 
 
 
 
Beginning Balance, Number of Shares
14,200,000 
 
 
 
 
 
 
Beginning Balance, Weighted Average Grant-Date Fair Value
25.94 
 
 
 
 
 
 
Awards Granted, Number of Shares
15,400,000 
3,700,000 
3,600,000 
 
 
 
 
Awards Granted, Weighted Average Grant-Date Fair Value
 
40.06 
41.53 
 
 
 
 
Awards Vested, Number of Shares
 
(1,200,000)
(500,000)
 
 
 
 
Awards Vested, Weighted Average Grant-Date Fair Value
 
21.90 
25.80 
 
 
 
 
Awards Canceled, Number of Shares
(1,100,000)
(100,000)
(400,000)
 
 
 
 
Awards Canceled, Weighted Average Grant-Date Fair Value
 
25.62 
23.82 
 
 
 
 
Ending Balance, Number of Shares
19,300,000 
 
 
 
 
 
 
Ending Balance, Weighted Average Grant-Date Fair Value
31.80 
 
 
 
 
 
 
RSUs and PSAs, Weighted Average Remaining Contractual Term at Period End
2.1 
 
 
 
 
 
 
RSUs and PSAs, Aggregate Intrinsic Value at Period End
820 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Number of Shares at Period End
16,000,000 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Weighted Average Grant-Date Fair Value at Period End
31.34 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Weighted Average Remaining Contractual Term at Period End
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Aggregate Intrinsic Value at Period End
673 
 
 
 
 
 
 
Aggregate Number Of Shares Subject to PSAs Granted
 
 
1,700,000 
 
 
 
 
Minimum shares to be Issued on achievement of performance goals in respect of PSAs
 
 
 
 
 
 
Maximum shares to be issued on achievement of performance goals in respect of PSAs
 
 
3,600,000 
 
 
 
 
Employee Stock Purchase Plans 2008 and 1999 [Abstract]
 
 
 
 
 
 
 
Stock based compensation incremental Board approved offering period in months
 
 
 
 
 
 
Stock Issued During Period, Shares, Employee Stock Purchase Plans
 
 
 
1,000,000 
1,000,000 
 
 
Average Price of Common Stock, Per Share
 
 
 
23.89 
21.11 
 
 
Common stock issued since inception under the ESPP
 
 
 
4,600,000 
 
 
 
Common stock remaining for future issuance, ESPP
 
 
 
7,400,000 
 
 
 
Note 12.3 - Employee Benefit Plans, Shares Available For Grant Level 4 (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2011
Shares Available For Grant
 
Beginning Balance, Number of Shares
30,700,000 
Awards Granted, Number of Shares
(15,400,000)
Options Granted, Number of Shares
(4,200,000)
Awards Canceled, Number of Shares
1,100,000 
Options Canceled, Number of Shares
500,000 
Options Expired, Number of Shares
100,000 
Ending Balance, Number of Shares
12,800,000 
Fair Market Value on Date of Grant For RSUS And PSAS Issued at Discount, Maximum Percentage
Common Stock for Each Share Subject to RSUs and PSAs
2.1 
Common Stock for Future Issuance Under its Stock Award
81,300,000 
Restricted Stock [Member]
 
Shares Available For Grant
 
Awards Granted, Number of Shares
(3,700,000)
Awards Canceled, Number of Shares
100,000 
Performance Share Awards [Member]
 
Shares Available For Grant
 
Awards Granted, Number of Shares
(3,600,000)
Awards Canceled, Number of Shares
400,000 
Note 12.4 - Employee Benefit Plans, Assumptions and Resulting Estimates of Fair Value Level 4 (Details)
3 Months Ended
Mar. 31,
3 Months Ended
Sep. 30, 2010
2011
2010
2011
2010
2011
2010
2011
2010
Estimates of Fair Value
 
 
 
 
 
 
 
 
 
Volatility factor
 
0.41 
0.37 
0.42 
0.41 
0.33 
0.35 
0.33 
0.35 
Risk-free interest rate
 
0.016 
0.021 
0.019 
0.022 
0.018 
0.017 
0.018 
0.017 
Expected life (years)
 
4.1 
4.3 
4.1 
4.3 
0.5 
0.5 
0.5 
0.5 
Dividend yield
 
Fair value per share
 
12.07 
9.31 
15.22 
9.92 
 
 
 
 
Weighted-average fair value per share
 
 
 
 
 
9.07 
6.19 
9.07 
6.19 
Share-based compensation stock option contractual life from grant date since 2006, in years
 
 
 
 
 
 
 
 
Share-based compensation stock option contractual life from grant date, prior to 2006, in years
10 
 
 
 
 
 
 
 
 
Note 12.5 - Employee Benefit Plans, Share Based Compensation by Cost and Expense Categories Level 4 (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
Share-Based Compensation Expense
$ 49 
$ 41 
Cost of Revenues, Product [Member]
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
Share-Based Compensation Expense
Cost of Revenues, Service [Member]
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
Share-Based Compensation Expense
Research and Development [Member]
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
Share-Based Compensation Expense
22 
17 
Selling and Marketing Expense [Member]
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
Share-Based Compensation Expense
13 
12 
General and Administrative Expense [Member]
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
Share-Based Compensation Expense
$ 9 
$ 7 
Note 12.6 - Employee Benefit Plans, Share Based Compensation by Share Based Payment Award Types Level 4 (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31,
2011
2010
Dec. 31, 2010
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
49 
41 
 
Employee Benefit Textuals [Abstract]
 
 
 
Unrecognized Compensation Cost Related to Unvested Stock Options - Adjusted for Forfeitures
137 
 
 
Weighted Average Period that Unrecognized Compensation Cost Will be Recognized (years)
2.6 
 
 
Unrecognized Compensation Cost Related to Unvested RSU's and PSA's
296 
 
 
Weighted Average Period That Unrecognized Compensation Cost Will be Recognized - RSU's and PSA's (In Years)
2.6 
 
 
Employee Contribution Matched in Percent
0.25 
 
 
Matching Contributions to Plan
 
Deferred Compensation Liability
11 
 
Employee Stock Option [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
20 
20 
 
Employee Stock Purchase Plan 2008 [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
 
Restricted Stock Units and Performance Share Awards [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
23 
16 
 
Other Acquisition Related Compensation [Member]
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
Share-Based Compensation Expense, Total
 
Note 13 - Segments Level 4 (Details) (USD $)
3 Months Ended
Mar. 31,
2011
2010
Segment Reporting Information, Revenue [Abstract]
 
 
Product revenue, net
$ 877,440,000 
$ 721,201,000 
Total net revenues
1,101,612,000 
912,618,000 
Operating Income (Loss) [Abstract]
 
 
Total management operating income
245,900,000 
211,600,000 
Amortization of purchased intangible assets
(6,700,000)
(1,100,000)
Share-Based Compensation Expense
(49,000,000)
(40,600,000)
Share-based payroll tax expense
(8,000,000)
(1,600,000)
Restructuring charges
(347,000)
8,105,000 
Acquisition related costs
5,061,000 
Operating Income (Loss)
177,393,000 
160,272,000 
Other (expense) income, net
(6,462,000)
1,459,000 
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Cumulative Effects of Changes in Accounting Principles, Noncontrolling Interest
170,931,000 
161,731,000 
Infrastructure Segment [Member]
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
Total net revenues
854,700,000 
678,700,000 
Operating Income (Loss) [Abstract]
 
 
Total management operating income
209,500,000 
176,500,000 
Depreciation expense
25,700,000 
24,700,000 
Infrastructure Routers [Member]
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
Product revenue, net
748,900,000 
601,500,000 
Infrastructure Switches [Member]
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
Product revenue, net
105,800,000 
77,200,000 
Service Layer Technologies Segment [Member]
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
Total net revenues
246,900,000 
233,900,000 
Operating Income (Loss) [Abstract]
 
 
Total management operating income
36,400,000 
35,100,000 
Depreciation expense
$ 8,300,000 
$ 9,500,000 
Note 13.2 - Segments, Geographical Level 4 (Details) (USD $)
In Thousands
3 Months Ended
Mar. 31,
2011
2010
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
Total net revenues
$ 1,101,612 
$ 912,618 
Total Americas [Member]
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
Total net revenues
581,600 
488,500 
United States [Member]
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
Total net revenues
526,000 
447,000 
Other Country [Member]
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
Total net revenues
55,600 
41,500 
Europe Middle East And Africa [Member]
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
Total net revenues
299,900 
264,000 
Asia Pacific [Member]
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
Total net revenues
$ 220,100 
$ 160,100 
Note 13.3 - Segments, Major Customers Level 4 (Details)
3 Months Ended
Mar. 31, 2011
Dec. 31, 2010
3 Months Ended
Mar. 31, 2010
Entity-Wide Revenue, Major Customer [Line Items]
 
 
 
Major Customers Revenues As Percentage Of Net Revenues
 
0.112 
Percent of property and equipment held in US
0.80 
0.8 
 
Note 14 - Income Taxes Level 4 (Details) (USD $)
3 Months Ended
Mar. 31,
2011
2010
Income Tax Contingency [Line Items]
 
 
Income tax provision (benefit)
$ 41,271,000 
$ (2,879,000)
Effective tax rate
0.241 
0.018 
Income tax benefit from change in estimate of unrecognized tax benefits related to share-based compensation
 
54,100,000 
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities
(5,800,000)
 
Possible decrease in gross unrecognized tax benefits within next 12 months
4,600,000 
 
Domestic Country [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Decrease in gross unrecognized tax benefit
(500,000)
 
Decrease In interest and penalities
1,500,000 
 
Internal Revenue Service (IRS) [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Federal statutory rate
0.35 
0.35 
Foreign Country India [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Number of Ongoing Tax Examinations
 
Interest and penalties recorded
4,600,000 
 
Note 15 - Commitments and Contingencies Level 4 (Details)
3 Months Ended
Mar. 31,
2011
2010
Summarization of principal contractual obligations
 
 
Operating leases
357,300,000 
 
Purchase commitments
171,800,000 
 
Tax liabilities
101,600,000 
 
Senior Notes
1,000,000,000 
 
Interest Payable
900,200,000 
 
Other contractual obligations
75,300,000 
 
Total
2,606,200,000 
 
Commitments Textuals [Abstract]
 
 
Future minimum payments under the non-cancelable operating leases, net of committed sublease income
357,300,000 
 
Rent expense
14,800,000 
14,100,000 
Accrual for estimated carrying charges or obsolete materials charges
15,100,000 
 
Indemnity-related and service-related escrows
47,700,000 
 
Data center hosting agreement
10,700,000 
 
Licensing and servicing agreements
16,900,000 
 
Principal Contractual Obligations Maturity Period Current Year [Member]
 
 
Summarization of principal contractual obligations
 
 
Operating leases
42,500,000 
 
Purchase commitments
171,800,000 
 
Tax liabilities
 
Senior Notes
 
Interest Payable
27,100,000 
 
Other contractual obligations
54,300,000 
 
Total
295,700,000 
 
Principal Contractual Obligations Maturity Period Year One [Member]
 
 
Summarization of principal contractual obligations
 
 
Operating leases
52,300,000 
 
Purchase commitments
 
Tax liabilities
 
Senior Notes
 
Interest Payable
46,900,000 
 
Other contractual obligations
11,200,000 
 
Total
110,400,000 
 
Principal Contractual Obligations Maturity Period Year Two [Member]
 
 
Summarization of principal contractual obligations
 
 
Operating leases
44,800,000 
 
Purchase commitments
 
Tax liabilities
 
Senior Notes
 
Interest Payable
46,900,000 
 
Other contractual obligations
4,800,000 
 
Total
96,500,000 
 
Principal Contractual Obligations Maturity Period Year Three [Member]
 
 
Summarization of principal contractual obligations
 
 
Operating leases
58,200,000 
 
Purchase commitments
 
Tax liabilities
 
Senior Notes
 
Interest Payable
46,900,000 
 
Other contractual obligations
3,000,000 
 
Total
108,100,000 
 
Principal Contractual Obligations Maturity Period Year Four [Member]
 
 
Summarization of principal contractual obligations
 
 
Operating leases
47,300,000 
 
Purchase commitments
 
Tax liabilities
 
Senior Notes
 
Interest Payable
46,900,000 
 
Other contractual obligations
2,000,000 
 
Total
96,200,000 
 
Principal Contractual Obligations Maturity Period After Year Four [Member]
 
 
Summarization of principal contractual obligations
 
 
Operating leases
112,200,000 
 
Purchase commitments
 
Tax liabilities
 
Senior Notes
1,000,000,000 
 
Interest Payable
685,500,000 
 
Other contractual obligations
 
Total
1,797,700,000 
 
Principal Contractual Obligations Other [Member]
 
 
Summarization of principal contractual obligations
 
 
Operating leases
 
Purchase commitments
 
Tax liabilities
101,600,000 
 
Senior Notes
 
Interest Payable
 
Other contractual obligations
 
Total
101,600,000 
 
Note 15.2 - Commitments and Contingencies, Guarantees Level 4 (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 23 
$ 22 
Note 16 - Subsequent Events Level 4 (Details) (USD $)
In Millions, except Per Share data
May 06, 2011
Subsequent Event [Line Items]
 
Common stock repurchased and retired under stock repurchase programs, shares
Common stock repurchased and retired under stock repurchase programs, value
$ 100 
Common stock repurchased and retired under stock repurchase programs, average purchase price
39.28 
Stock repurchase program remaining authorized funds
$ 455