| Segments
|
|
|
|
|
|
|
|
As of | ||||||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 287.6 | $ | 285.9 | ||||
Time deposits
|
124.5 | 125.1 | ||||||
|
||||||||
Total cash
|
412.1 | 411.0 | ||||||
Cash equivalents:
|
||||||||
U.S. government securities
|
70.2 | 141.8 | ||||||
Government-sponsored enterprise obligations
|
23.6 | 94.8 | ||||||
Foreign government debt securities
|
16.0 | — | ||||||
Commercial paper
|
132.2 | 90.4 | ||||||
Money market funds
|
900.1 | 1,281.1 | ||||||
|
||||||||
Total cash equivalents
|
1,142.1 | 1,608.1 | ||||||
|
||||||||
Total cash and cash equivalents
|
1,554.2 | 2,019.1 | ||||||
|
||||||||
|
||||||||
Investments:
|
||||||||
Fixed income securities:
|
||||||||
U.S. government securities
|
193.4 | 86.7 | ||||||
Government sponsored-enterprise obligations
|
276.9 | 71.9 | ||||||
Foreign government debt securities
|
47.5 | — | ||||||
Commercial paper
|
33.0 | — | ||||||
Corporate debt securities
|
284.7 | 110.3 | ||||||
|
||||||||
Total fixed income securities
|
835.5 | 268.9 | ||||||
Publicly-traded equity securities
|
8.9 | 5.4 | ||||||
|
||||||||
Total investments
|
$ | 844.4 | $ | 274.3 | ||||
|
||||||||
|
||||||||
Reported as:
|
||||||||
Short-term investments
|
$ | 423.9 | $ | 172.9 | ||||
Long-term investments
|
420.5 | 101.4 | ||||||
|
||||||||
Total
|
$ | 844.4 | $ | 274.3 | ||||
|
Fair Value As | ||||
of June 30, 2009 | ||||
Due within one year
|
$ | 415.0 | ||
Due between one and five years
|
420.5 | |||
|
||||
Total fixed income securities
|
835.5 | |||
Publicly-traded equity securities
|
8.9 | |||
|
||||
Total investments
|
$ | 844.4 | ||
|
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Fixed income securities:
|
||||||||||||||||
U.S. government securities
|
$ | 193.4 | $ | — | $ | — | $ | 193.4 | ||||||||
Government-sponsored enterprise obligations
|
275.6 | 1.3 | — | 276.9 | ||||||||||||
Foreign government debt securities
|
47.4 | 0.1 | — | 47.5 | ||||||||||||
Corporate debt securities
|
316.7 | 1.2 | (0.2 | ) | 317.7 | |||||||||||
|
||||||||||||||||
Total fixed income securities
|
833.1 | 2.6 | (0.2 | ) | 835.5 | |||||||||||
Publicly-traded equity securities
|
8.6 | 0.3 | — | 8.9 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 841.7 | $ | 2.9 | $ | (0.2 | ) | $ | 844.4 | |||||||
|
||||||||||||||||
|
||||||||||||||||
Reported as:
|
||||||||||||||||
Short-term investments
|
$ | 423.0 | $ | 0.9 | $ | — | $ | 423.9 | ||||||||
Long-term investments
|
418.7 | 2.0 | (0.2 | ) | 420.5 | |||||||||||
|
||||||||||||||||
Total
|
$ | 841.7 | $ | 2.9 | $ | (0.2 | ) | $ | 844.4 | |||||||
|
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Due within one year
|
$ | 414.4 | $ | 0.6 | $ | — | $ | 415.0 | ||||||||
Due between one and five years
|
418.7 | 2.0 | (0.2 | ) | 420.5 | |||||||||||
|
||||||||||||||||
Total fixed income securities
|
$ | 833.1 | $ | 2.6 | $ | (0.2 | ) | $ | 835.5 | |||||||
Publicly-traded equity securities
|
8.6 | 0.3 | — | 8.9 | ||||||||||||
|
||||||||||||||||
Total investments
|
$ | 841.7 | $ | 2.9 | $ | (0.2 | ) | $ | 844.4 | |||||||
|
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Fair Value | Loss | Fair Value | Loss | Fair Value | Loss | |||||||||||||||||||
Corporate debt securities
|
$ | 124.8 | $ | (0.2 | ) | $ | — | $ | — | $ | 124.8 | $ | (0.2 | ) | ||||||||||
|
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Fixed income securities:
|
||||||||||||||||
U.S. government securities
|
$ | 86.6 | $ | 0.1 | $ | — | $ | 86.7 | ||||||||
Government-sponsored enterprise obligations
|
70.4 | 1.6 | (0.1 | ) | 71.9 | |||||||||||
Corporate debt securities
|
110.4 | 0.4 | (0.5 | ) | 110.3 | |||||||||||
|
||||||||||||||||
Total fixed income securities
|
267.4 | 2.1 | (0.6 | ) | 268.9 | |||||||||||
Publicly-traded equity securities
|
5.4 | — | — | 5.4 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 272.8 | $ | 2.1 | $ | (0.6 | ) | $ | 274.3 | |||||||
|
||||||||||||||||
|
||||||||||||||||
Reported as:
|
||||||||||||||||
Short-term investments
|
$ | 172.5 | $ | 0.6 | $ | (0.2 | ) | $ | 172.9 | |||||||
Long-term investments
|
100.3 | 1.5 | (0.4 | ) | 101.4 | |||||||||||
|
||||||||||||||||
Total
|
$ | 272.8 | $ | 2.1 | $ | (0.6 | ) | $ | 274.3 | |||||||
|
|
Fair Value Measurements at June 30, 2009, Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | ||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Remaining | Remaining | ||||||||||||||
Assets | Inputs | Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets measured at fair value:
|
||||||||||||||||
U.S. government securities
|
$ | 37.7 | $ | 227.5 | $ | — | $ | 265.2 | ||||||||
Government sponsored enterprise obligations
|
271.6 | 28.9 | — | 300.5 | ||||||||||||
Foreign government debt securities
|
— | 63.5 | — | 63.5 | ||||||||||||
Corporate debt securities
|
— | 284.7 | — | 284.7 | ||||||||||||
Commercial paper
|
— | 165.2 | — | 165.2 | ||||||||||||
Money market funds
|
940.2 | — | — | 940.2 | ||||||||||||
Publicly-traded securities
|
8.9 | — | — | 8.9 | ||||||||||||
Derivative asset
|
— | 2.0 | — | 2.0 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 1,258.4 | $ | 771.8 | $ | — | $ | 2,030.2 | ||||||||
|
||||||||||||||||
Fair Value Measurements at December 31, 2008, Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | ||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Remaining | Remaining | ||||||||||||||
Assets | Inputs | Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets measured at fair value:
|
||||||||||||||||
U.S. government securities
|
$ | 26.3 | $ | 202.2 | $ | — | $ | 228.5 | ||||||||
Government sponsored enterprise obligations
|
71.9 | 94.8 | — | 166.7 | ||||||||||||
Corporate debt securities
|
— | 110.3 | — | 110.3 | ||||||||||||
Commercial paper
|
— | 90.4 | — | 90.4 | ||||||||||||
Money market funds
|
1,281.1 | — | — | 1,281.1 | ||||||||||||
Publicly-traded securities
|
5.4 | — | — | 5.4 | ||||||||||||
Derivative asset
|
— | 2.6 | — | 2.6 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 1,384.7 | $ | 500.3 | $ | — | $ | 1,885.0 | ||||||||
|
Fair Value Measurements at June 30, 2009, Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | ||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Remaining | Remaining | ||||||||||||||
Assets | Inputs | Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Reported as:
|
||||||||||||||||
Cash equivalents
|
$ | 900.1 | $ | 242.0 | $ | — | $ | 1,142.1 | ||||||||
Short-term investments
|
185.9 | 238.0 | — | 423.9 | ||||||||||||
Long-term investments
|
132.3 | 288.2 | — | 420.5 | ||||||||||||
Prepaid expenses and other assets
|
40.1 | 3.6 | — | 43.7 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 1,258.4 | $ | 771.8 | $ | — | $ | 2,030.2 | ||||||||
|
||||||||||||||||
Fair Value Measurements at December 31, 2008, Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | ||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Remaining | Remaining | ||||||||||||||
Assets | Inputs | Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Reported as:
|
||||||||||||||||
Cash equivalents
|
$ | 1,281.1 | $ | 327.0 | $ | — | $ | 1,608.1 | ||||||||
Short-term investments
|
57.1 | 115.8 | — | 172.9 | ||||||||||||
Long-term investments
|
46.5 | 54.9 | — | 101.4 | ||||||||||||
Prepaid expenses and other current assets
|
— | 2.6 | — | 2.6 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 1,384.7 | $ | 500.3 | $ | — | $ | 1,885.0 | ||||||||
|
Fair Value Measurements Using | ||||||||||||||||||||||||
Impairment | Impairment | |||||||||||||||||||||||
Charges for | Charges for | |||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | the Three | the Six | ||||||||||||||||||||
Active Markets | Observable | Unobservable | Months | Months | ||||||||||||||||||||
Fair Value as of | For Identical | Remaining | Remaining | Ended | Ended | |||||||||||||||||||
Description: | June 30, 2009 | Assets | Inputs | Inputs | June 30, 2009 | June 30, 2009 | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
Minority equity
investments
|
$ | 1.7 | $ | — | $ | — | $ | 1.7 | $ | (1.6 | ) | $ | (3.3 | ) | ||||||||||
|
||||||||||||||||||||||||
Total measured
at fair value
|
$ | 1.7 | $ | — | $ | — | $ | 1.7 | $ | (1.6 | ) | $ | (3.3 | ) | ||||||||||
|
Minority Equity Investments | ||||||||
Three Months | Six Months | |||||||
Description: | Ended June 30, | Ended June 30, | ||||||
2009 | 2009 | |||||||
Beginning balance
|
$ | 1.2 | $ | — | ||||
Transfers in to Level 3
|
2.1 | 5.0 | ||||||
Total loss recognized in statements of operations
|
(1.6 | ) | (3.3 | ) | ||||
|
||||||||
Ending balance
|
$ | 1.7 | $ | 1.7 | ||||
|
|
Segments | June 30, 2009 | |||
Infrastructure
|
$ | 1,500.5 | ||
Service Layer Technologies
|
2,158.1 | |||
|
||||
Total
|
$ | 3,658.6 | ||
|
Accumulated | ||||||||||||
Gross | Amortization | Net | ||||||||||
As of June 30, 2009:
|
||||||||||||
Technologies and patents
|
$ | 380.0 | $ | (373.0 | ) | $ | 7.0 | |||||
Other
|
68.9 | (57.3 | ) | 11.6 | ||||||||
|
||||||||||||
Total
|
$ | 448.9 | $ | (430.3 | ) | $ | 18.6 | |||||
|
||||||||||||
|
||||||||||||
As of December 31, 2008:
|
||||||||||||
Technologies and patents
|
$ | 379.6 | $ | (365.4 | ) | $ | 14.2 | |||||
Other
|
68.9 | (54.3 | ) | 14.6 | ||||||||
|
||||||||||||
Total
|
$ | 448.5 | $ | (419.7 | ) | $ | 28.8 | |||||
|
Years Ending December 31, | Amount | |||
2009 (remaining six months)
|
$ | 4.8 | ||
2010
|
4.0 | |||
2011
|
2.1 | |||
2012
|
1.2 | |||
2013
|
1.1 | |||
Thereafter
|
5.4 | |||
|
||||
Total
|
$ | 18.6 | ||
|
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Beginning balance
|
$ | 37.5 | $ | 41.3 | $ | 40.1 | $ | 37.5 | ||||||||
Provisions made during the period, net
|
8.8 | 7.0 | 18.6 | 12.2 | ||||||||||||
Change in estimate
|
(1.2 | ) | — | (3.3 | ) | — | ||||||||||
Actual costs incurred during the period
|
(9.3 | ) | (6.5 | ) | (19.6 | ) | (7.9 | ) | ||||||||
|
||||||||||||||||
Ending balance
|
$ | 35.8 | $ | 41.8 | $ | 35.8 | $ | 41.8 | ||||||||
|
As of | ||||||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Deferred product revenue:
|
||||||||
Deferred gross product revenue
|
$ | 305.9 | $ | 268.0 | ||||
Deferred cost of product revenue
|
(128.3 | ) | (110.0 | ) | ||||
|
||||||||
Deferred product revenue, net
|
177.6 | 158.0 | ||||||
Deferred service revenue
|
471.0 | 432.3 | ||||||
|
||||||||
Total
|
$ | 648.6 | $ | 590.3 | ||||
|
||||||||
Reported as:
|
||||||||
Current
|
$ | 496.0 | $ | 459.8 | ||||
Long-term
|
152.6 | 130.5 | ||||||
|
||||||||
Total
|
$ | 648.6 | $ | 590.3 | ||||
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Interest income and expense, net
|
$ | 1.6 | $ | 13.5 | $ | 3.7 | $ | 31.8 | ||||||||
Other income and expense, net
|
1.3 | (0.3 | ) | 1.1 | (1.0 | ) | ||||||||||
|
||||||||||||||||
Total interest and other income, net
|
$ | 2.9 | $ | 13.2 | $ | 4.8 | $ | 30.8 | ||||||||
|
|
|
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||
Location | Value | Location | Value | |||||||||||||
Derivatives designated as
hedging instruments under SFAS 133:
|
||||||||||||||||
Foreign exchange forward contracts
|
Other current assets | $ | 2.2 | Other current liabilities | $ | 0.3 | ||||||||||
|
||||||||||||||||
Total derivatives designated as
hedging instruments under SFAS 133
|
$ | 2.2 | $ | 0.3 | ||||||||||||
|
Buy | Buy | Buy | ||||||||||
Foreign currency forward contracts:
|
EUR | GBP | INR | |||||||||
|
||||||||||||
Notional amount of foreign currency
|
32.7 | 11.9 | 1,427.7 | |||||||||
U.S dollar equivalent
|
$ | 44.7 | $ | 18.6 | $28.8 | |||||||
Weighted average maturity
|
2 months | 2 months | 2 months |
Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | |||||||||||||||||||
Location of | Location of | |||||||||||||||||||
Gain | Gain | Loss | Loss | |||||||||||||||||
Reclassified | Reclassified | Reclassified | Reclassified | |||||||||||||||||
from | from | from | from | |||||||||||||||||
Accumulated | Accumulated | Accumulated | Accumulated | |||||||||||||||||
Gain | Other | Other | Loss | Other | Other | |||||||||||||||
Recognized in | Comprehensive | Comprehensive | Recognized in | Comprehensive | Comprehensive | |||||||||||||||
Accumulated | Loss to | Loss to | Accumulated | Loss to | Loss to | |||||||||||||||
Other | Statements of | Statements of | Other | Statements of | Statements of | |||||||||||||||
Comprehensive | Operations | Operations | Comprehensive | Operations | Operations | |||||||||||||||
Loss (Effective | (Effective | (Effective | Loss (Effective | (Effective | (Effective | |||||||||||||||
Portion) | Portions) | Portion) | Portion) | Portions) | Portion) | |||||||||||||||
Foreign exchange
forward contracts
|
$ | 5.1 | Operating expense | $ | 1.0 | $ | (0.7 | ) | Operating expense | $ | (1.7 | ) | ||||||||
|
||||||||||||||||||||
Total
|
$ | 5.1 | $ | 1.0 | $ | (0.7 | ) | $ | (1.7 | ) | ||||||||||
|
Three Months | Six Months | |||||||||||
Ended June 30, | Ended June 30, | |||||||||||
2009 | 2009 | |||||||||||
Location of Gain in | Gain Recognized | Gain Recognized | ||||||||||
Statements of | in Statements of | in Statements of | ||||||||||
Operations | Operations | Operations | ||||||||||
Derivatives not designated
as hedging instruments under SFAS
133:
|
||||||||||||
Foreign exchange forward contracts
|
Other income, net | $ | 3.8 | $ | 3.2 | |||||||
|
||||||||||||
Total
|
$ | 3.8 | $ | 3.2 | ||||||||
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income
|
$ | 14.8 | $ | 120.4 | $ | 10.3 | $ | 230.8 | ||||||||
Change in net unrealized
gains (losses) on
investments, net of tax of
nil
|
6.2 | (3.9 | ) | 2.6 | (3.4 | ) | ||||||||||
Change in foreign currency
translation adjustment, net
of tax of nil
|
11.6 | (1.6 | ) | 1.1 | 0.9 | |||||||||||
|
||||||||||||||||
Total comprehensive income
|
$ | 32.6 | $ | 114.9 | $ | 14.0 | $ | 228.3 | ||||||||
|
Six Months | ||||
Ended | ||||
June 30, 2009 | ||||
Balance, December 31, 2008
|
$ | (2,905.8 | ) | |
Retirement of common stock
|
(168.9 | ) | ||
Net income
|
10.3 | |||
|
||||
Balance, June 30, 2009
|
$ | (3,064.4 | ) | |
|
|
Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Average | Remaining | |||||||||||||||
Number of | Exercise | Contractual | Aggregate | |||||||||||||
Shares | Price | Term | Intrinsic Value | |||||||||||||
(In thousands) | (In dollars) | (In years) | (In thousands) | |||||||||||||
Balance at January 1, 2009
|
73,637 | $ | 21.24 | |||||||||||||
Options granted
|
7,593 | 15.43 | ||||||||||||||
Options canceled
|
(1,178 | ) | 21.94 | |||||||||||||
Options exercised
|
(2,867 | ) | 11.31 | |||||||||||||
Options expired
|
(941 | ) | 22.69 | |||||||||||||
|
||||||||||||||||
Balance at June 30, 2009
|
76,244 | $ | 21.28 | 4.7 | $ | 345,253 | ||||||||||
|
||||||||||||||||
|
||||||||||||||||
As of June 30, 2009:
|
||||||||||||||||
Vested or expected-to-vest options
|
67,624 | $ | 21.36 | 4.6 | $ | 308,332 | ||||||||||
Exercisable options
|
48,578 | 21.76 | 4.0 | 222,599 |
Outstanding RSUs and Performance Share Awards | ||||||||||||||||
Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Average | Remaining | |||||||||||||||
Number of | Grant-Date | Contractual | Aggregate | |||||||||||||
Shares | Fair Value | Term | Intrinsic Value | |||||||||||||
(In thousands) | (In dollars) | (In years) | (In thousands) | |||||||||||||
Balance at January 1, 2009
|
6,692 | $ | 24.59 | |||||||||||||
RSUs and performance share awards granted
|
3,607 | 15.30 | ||||||||||||||
RSUs and performance share awards vested
|
(1,127 | ) | 20.33 | |||||||||||||
RSUs and performance share awards canceled
|
(488 | ) | 23.79 | |||||||||||||
|
||||||||||||||||
Balance at June 30, 2009
|
8,684 | $ | 21.34 | 1.9 | $ | 204,935 | ||||||||||
|
||||||||||||||||
|
||||||||||||||||
As of June 30, 2009:
|
||||||||||||||||
Vested and expected-to-vest RSUs and
performance share awards
|
5,651 | $ | 21.41 | 1.8 | $ | 133,369 |
Number of | ||||
Shares (in | ||||
thousands) | ||||
Balance at January 1, 2009
|
28,589 | |||
RSUs and performance share awards granted (1)
|
(7,575 | ) | ||
Options granted
|
(7,593 | ) | ||
RSUs canceled (1)
|
965 | |||
Options canceled (2)
|
1,178 | |||
Options expired (2)
|
930 | |||
|
||||
Balance at June 30, 2009
|
16,494 | |||
|
(1) | RSUs and performance share awards 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. | |
(2) | Canceled or expired options under the 1996 Plan and the 2000 Plan and the stock plans of the acquired companies are no longer available for future grant under such plans. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Employee Stock Options:
|
||||||||||||||||
Volatility factor
|
49% - 52 | % | 43% - 46 | % | 49% - 58 | % | 43% - 48 | % | ||||||||
Risk-free interest rate
|
0.5% - 2.9 | % | 1.7% - 4.0 | % | 0.4% -2.9 | % | 1.7% - 4.4 | % | ||||||||
Expected life (years)
|
4.3 - 5.8 | 3.6 - 5.7 | 4.3 - 5.8 | 3.6 - 5.7 | ||||||||||||
Dividend yield
|
— | — | — | — | ||||||||||||
Fair value per share
|
$ | 7.54 - $10.49 | $ | 8.32 - $10.60 | $ | 6.02 - $10.49 | $ | 8.32 - $10.88 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Employee Stock Purchase Plan:
|
||||||||||||||||
Volatility factor
|
58 | % | 48 | % | 58 | % | 48 | % | ||||||||
Risk-free interest rate
|
0.4 | % | 2.2 | % | 0.4 | % | 2.2 | % | ||||||||
Expected life (years)
|
0.5 | 0.5 | 0.5 | 0.5 | ||||||||||||
Dividend yield
|
— | — | — | — | ||||||||||||
Weighted-average fair value per share
|
$ | 4.51 | $ | 7.83 | $ | 4.51 | $ | 7.83 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Weighted-average fair value per share:
|
||||||||||||||||
RSUs
|
$ | 22.66 | $ | 24.79 | $ | 15.56 | $ | 25.24 | ||||||||
Performance share awards
|
$ | 18.42 | $ | 24.48 | $ | 15.12 | $ | 25.10 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Cost of revenues — Product
|
$ | 0.9 | $ | 0.7 | $ | 1.9 | $ | 1.5 | ||||||||
Cost of revenues — Service
|
2.8 | 2.2 | 5.6 | 4.6 | ||||||||||||
Research and development
|
15.0 | 12.0 | 29.7 | 22.2 | ||||||||||||
Sales and marketing
|
10.3 | 9.1 | 20.2 | 15.8 | ||||||||||||
General and administrative
|
4.5 | 3.3 | 9.7 | 6.0 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 33.5 | $ | 27.3 | $ | 67.1 | $ | 50.1 | ||||||||
|
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net revenues:
|
||||||||||||||||
Infrastructure:
|
||||||||||||||||
Product
|
$ | 469.9 | $ | 575.9 | $ | 924.2 | $ | 1,104.6 | ||||||||
Service
|
114.1 | 96.5 | 226.9 | 189.7 | ||||||||||||
|
||||||||||||||||
Total Infrastructure revenues
|
584.0 | 672.4 | 1,151.1 | 1,294.3 | ||||||||||||
Service Layer Technologies:
|
||||||||||||||||
Product
|
137.1 | 148.0 | 270.6 | 293.5 | ||||||||||||
Service
|
65.3 | 58.6 | 128.8 | 114.1 | ||||||||||||
|
||||||||||||||||
Total Service Layer Technologies revenues
|
202.4 | 206.6 | 399.4 | 407.6 | ||||||||||||
|
||||||||||||||||
Total net revenues
|
786.4 | 879.0 | 1,550.5 | 1,701.9 | ||||||||||||
Operating income:
|
||||||||||||||||
Infrastructure
|
119.9 | 195.1 | 231.8 | 386.6 | ||||||||||||
Service Layer Technologies
|
22.2 | 12.3 | 35.3 | 18.5 | ||||||||||||
|
||||||||||||||||
Total segment operating income
|
142.1 | 207.4 | 267.1 | 405.1 | ||||||||||||
Other corporate (1)
|
— | — | — | (4.7 | ) | |||||||||||
|
||||||||||||||||
Total management operating income
|
142.1 | 207.4 | 267.1 | 400.4 | ||||||||||||
Amortization of purchased intangible assets
|
(5.0 | ) | (9.4 | ) | (10.7 | ) | (35.9 | ) | ||||||||
Stock-based compensation expense
|
(33.5 | ) | (27.3 | ) | (67.1 | ) | (50.1 | ) | ||||||||
Stock-based payroll tax expense
|
(0.4 | ) | (1.2 | ) | (0.7 | ) | (2.3 | ) | ||||||||
Restructuring charges
|
(7.5 | ) | — | (11.7 | ) | — | ||||||||||
Other charges
|
— | (9.0 | ) | — | (9.0 | ) | ||||||||||
|
||||||||||||||||
Total operating income
|
95.7 | 160.5 | 176.9 | 303.1 | ||||||||||||
Interest and other income, net
|
2.9 | 13.1 | 4.8 | 30.8 | ||||||||||||
Loss on minority equity investments
|
(1.6 | ) | (1.5 | ) | (3.3 | ) | (1.5 | ) | ||||||||
|
||||||||||||||||
Income before income taxes
|
$ | 97.0 | $ | 172.1 | $ | 178.4 | $ | 332.4 | ||||||||
|
(1) | Other corporate charges include severance and related costs associated with workforce-rebalancing activities, which are not included in business segment results. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Americas:
|
||||||||||||||||
United States
|
$ | 350.3 | $ | 324.6 | $ | 665.0 | $ | 714.0 | ||||||||
Other
|
40.6 | 64.0 | 85.5 | 92.6 | ||||||||||||
|
||||||||||||||||
Total Americas
|
390.9 | 388.6 | 750.5 | 806.6 | ||||||||||||
Europe, Middle East and Africa
|
232.0 | 285.6 | 455.2 | 525.7 | ||||||||||||
Asia Pacific
|
163.5 | 204.8 | 344.8 | 369.6 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 786.4 | $ | 879.0 | $ | 1,550.5 | $ | 1,701.9 | ||||||||
|
|
|
Total | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Other | |||||||||||||||||||||||||
Operating leases
|
$ | 195.0 | $ | 26.7 | $ | 51.4 | $ | 43.7 | $ | 37.1 | $ | 20.6 | $ | 15.5 | $ | — | ||||||||||||||||
Sublease rental income
|
(0.9 | ) | (0.3 | ) | (0.6 | ) | — | — | — | — | — | |||||||||||||||||||||
Purchase commitments
|
89.2 | 89.2 | — | — | — | — | — | — | ||||||||||||||||||||||||
Tax liabilities
|
161.1 | — | — | — | — | — | — | 161.1 | ||||||||||||||||||||||||
Other contractual obligations
|
51.1 | 12.8 | 17.3 | 13.5 | 5.6 | 1.9 | — | — | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total
|
$ | 495.5 | $ | 128.4 | $ | 68.1 | $ | 57.2 | $ | 42.7 | $ | 22.5 | $ | 15.5 | $ | 161.1 | ||||||||||||||||
|
|