Document and Entity Information

3 Months Ended

Mar. 31, 2016

May 6, 2016

Document and Entity Information [Abstract]

Entity Registrant Name

JUNIPER NETWORKS INC

Entity Central Index Key

0001043604

Document Type

10-Q

Document Period End Date

Mar. 31, 2016

Amendment Flag

false

Document Fiscal Year Focus

2016

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

383,945,069

Condensed Consolidated Statements of Operations (Unaudited) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Net revenues:

Product

$ 753.0

$ 764.1

Service

344.9

303.3

Total net revenues

1,097.9

1,067.4

Cost of revenues:

Product

277.9

288.8

Service

129.1

121.3

Total cost of revenues

407.0

410.1

Gross margin

690.9

657.3

Operating expenses:

Research and development

251.0

248.7

Sales and marketing

231.8

220.2

General and administrative

59.4

55.2

Restructuring and other charges

0

1.4

Total operating expenses

542.2

525.5

Operating income

148.7

131.8

Other expense, net

(22.2)

(15.8)

Income before income taxes

126.5

116.0

Income tax provision

35.1

35.8

Net income

$ 91.4

$ 80.2

Net income per share:

Basic, in dollars per share

$ 0.24

$ 0.20

Diluted, in dollars per share

$ 0.23

$ 0.19

Shares used in computing net income per share:

Basic (in shares)

383.2

407.1

Diluted (in shares)

389.3

414.2

Cash dividends declared per common stock (in dollars per share)

$ 0.10

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Statement of Comprehensive Income [Abstract]

Net income

$ 91.4

$ 80.2

Available-for-sale securities:

Unrealized gain (loss) on available-for-sale securities, net of tax benefit (provision) of $0.1 and ($3.8), respectively

4.3

(0.8)

Reclassification adjustment for realized net loss (gain) on available-for-sale securities included in net income, net of tax provision of zero, respectively

0.1

(0.2)

Net change on available-for-sale securities, net of taxes

4.4

(1.0)

Cash flow hedges:

Unrealized gain (loss) on cash flow hedges, net of tax provisions of ($0.5) and ($0.3), respectively

2.5

(6.4)

Reclassification adjustment for realized net losses on cash flow hedges included in net income, net of tax (benefit) provision of ($0.2) and $0.1, respectively

1.1

3.1

Net change on cash flow hedges, net of taxes

3.6

(3.3)

Change in foreign currency translation adjustments

3.7

(11.1)

Other comprehensive income (loss), net of tax

11.7

(15.4)

Comprehensive income

$ 103.1

$ 64.8

Condensed Consolidated Statements of Comprehensive Income Parentheticals (Unaudited) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Statement of Comprehensive Income [Abstract]

Tax benefit (provision) on change in unrealized gains (losses) on available-for-sale securities

$ 0.1

$ (3.8)

Tax provision on reclassification adjustment for realized net losses (gains) on available-for-sale securities included in net income

0

Tax provision on change in unrealized gains (losses) on cash flow hedges

(0.5)

(0.3)

Tax (benefit) provision on reclassification adjustment for realized net losses included in net income

$ (0.2)

$ 0.1

Condensed Consolidated Balance Sheets (Unaudited) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Current assets:

Cash and cash equivalents

$ 1,646.0

$ 1,420.9

Short-term investments

599.4

527.1

Accounts receivable, net of allowances

783.9

780.7

Prepaid expenses and other current assets

244.9

183.7

Total current assets

3,274.2

2,912.4

Property and equipment, net

1,047.3

1,021.0

Long-term investments

1,171.4

1,244.2

Restricted cash and investments

36.1

36.2

Purchased intangible assets, net

30.6

33.9

Goodwill

2,981.3

Other long-term assets

376.8

378.9

Total assets

8,917.7

8,607.9

Current liabilities:

Short-term debt

0

299.9

Accounts payable

233.0

159.3

Accrued compensation

180.5

269.5

Deferred revenue

893.3

822.9

Other accrued liabilities

208.5

250.3

Total current liabilities

1,515.3

1,801.9

Long-term debt

2,131.8

1,637.5

Long-term deferred revenue

366.7

345.2

Long-term income taxes payable

190.4

187.3

Other long-term liabilities

75.4

61.6

Total liabilities

4,279.6

4,033.5

Commitments and contingencies (Note 14)

Stockholders' equity:

Convertible preferred stock, $0.00001 par value; 10.0 shares authorized; none issued and outstanding

0

Common stock, $0.00001 par value; 1,000.0 shares authorized; 386.3 shares and 384.0 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively

0

Additional paid-in capital

8,330.7

8,334.8

Accumulated other comprehensive loss

(7.5)

(19.2)

Accumulated deficit

(3,685.1)

(3,741.2)

Total stockholders' equity

4,638.1

4,574.4

Total liabilities and stockholders' equity

$ 8,917.7

$ 8,607.9

Condensed Consolidated Balance Sheets Parentheticals (Unaudited) (USD $)

Mar. 31, 2016

Dec. 31, 2015

Statement of Financial Position [Abstract]

Convertible preferred stock - par value (in dollars per share)

$ 0.00001

Convertible preferred stock - shares authorized

10,000,000

Convertible preferred stock - issued

0

Convertible preferred stock - outstanding

0

Common stock - par value (in dollars per share)

$ 0.00001

Common stock - shares authorized

1,000,000,000

Common stock - issued

386,300,000

384,000,000

Common stock - outstanding

386,300,000

384,000,000

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Cash flows from operating activities:

Net income

$ 91.4

$ 80.2

Adjustments to reconcile net income to net cash provided by operating activities:

Share-based compensation expense

51.8

46.0

Depreciation, amortization, and accretion

47.0

47.5

Restructuring and other charges

0

1.4

Deferred income taxes

21.1

11.3

Loss (gain) on investments, net

5.4

(0.6)

Excess tax benefits from share-based compensation

0

(1.7)

Changes in operating assets and liabilities, net of effects from acquisitions:

Accounts receivable, net

(3.2)

54.2

Prepaid expenses and other assets

(59.6)

(21.8)

Accounts payable

69.8

(7.8)

Accrued compensation

(89.3)

(54.1)

Income taxes payable

(24.2)

14.1

Other accrued liabilities

(29.8)

(48.4)

Deferred revenue

92.0

99.0

Net cash provided by operating activities

172.4

219.3

Cash flows from investing activities:

Purchases of property and equipment

(49.3)

(44.2)

Purchases of available-for-sale investments

(360.7)

(398.8)

Proceeds from sales of available-for-sale investments

286.2

169.5

Proceeds from maturities of available-for-sale investments

79.6

57.3

Purchases of trading investments

(2.5)

(1.9)

Purchases of privately-held investments

(10.5)

(3.2)

Net cash used in investing activities

(57.2)

(221.3)

Cash flows from financing activities:

Proceeds from issuance of common stock

32.0

31.8

Purchases and retirement of common stock

(83.4)

(402.4)

Issuance of long-term debt, net

494.0

594.6

Repayment of long-term debt

(300.0)

0

Payment for capital lease obligation

0

0.4

Excess tax benefits from share-based compensation

0

1.7

Payment of cash dividends

(38.3)

(40.8)

Net cash provided by financing activities

104.3

185.3

Effect of foreign currency exchange rates on cash and cash equivalents

5.6

(12.1)

Net increase in cash and cash equivalents

225.1

171.2

Cash and cash equivalents at beginning of period

1,420.9

1,639.6

Cash and cash equivalents at end of period

$ 1,646.0

$ 1,810.8

Basis of Presentation

The unaudited Condensed Consolidated Financial Statements of Juniper Networks, Inc. (the “Company” or “Juniper”) have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Balance Sheet as of March 31, 2016, is derived from the audited Consolidated Financial Statements for the year ended December 31, 2015. 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, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or any future period. The information included in this Quarterly Report on Form 10-Q (“Report”) 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, 2015. Certain amounts in the prior-year Financial Statements contained in this Report have been reclassified to conform to the current-year presentation, including the adoption of Accounting Standards Update ("ASU") No. 2015-03 (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company has retrospectively adopted this standard effective January 1, 2016, resulting in a $11.3 million decrease in both other long-term assets and long-term debt as of December 31, 2015 on the Condensed Consolidated Balance Sheets. The adoption of ASU No. 2015-03 had no impact to the Company’s Condensed Consolidated Statements of Operations.

The preparation of the financial statements and related disclosures in accordance with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates under different assumptions or conditions.

Summary of Significant Accounting Policies

There have been no material changes to the Company's significant accounting policies compared to the accounting policies described in Note 2, Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Annual Report on Form 10-K for the year ended December 31, 2015.

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. ASU-2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In March 2016, the FASB issued ASU No. 2016-07 (Topic 323) Investments—Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting ("ASU 2016-07"), which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. This update requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This update requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. ASU 2016-07 is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In March 2016, the FASB issued ASU No. 2016-06 (Topic 815) Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments ("ASU 2016-06"), which requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met. One of those criteria is that the economic characteristics and risks of the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contract (the “clearly and closely related” criterion). In addition, in March 2016, the FASB issued ASU No. 2016-05 (Topic 815), Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, ("ASU 2016-05"), which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-06 and ASU 2016-05 are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases ("ASU 2016-02"), which requires recognition of lease assets and lease liabilities on the balance sheet by the lessees for lease contracts with a lease term of more than twelve months. ASU 2016-02 should be applied on a modified retrospective basis and is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. Entities may choose a practical expedient, to estimate the fair value of certain equity securities that do not have readily determinable fair value. If the practical expedient is elected, these investments would be recorded at cost, less impairment and subsequently adjusted for observable price changes. The guidance also updates certain presentation and disclosure requirements. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is not permitted. The Company is currently evaluating the impact that ASU 2016-01will have on its Consolidated Financial Statements and disclosures.

In July 2015, the FASB issued ASU No. 2015-11 (Subtopic 330) - Simplifying the Measurement of Inventory ("ASU 2015-11"), which provides guidance to companies who account for inventory using either the first-in, first-out ("FIFO") or average cost methods. The guidance states that companies should measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard will not have a significant impact on the Company's Consolidated Financial Statements.

In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers (“ASU 2014-09”) which provides guidance for revenue recognition. This ASU affects all contracts that the Company enters into with customers to transfer goods and services or for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard's core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so, the Company will need to use additional judgment and estimates than under the existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of the new revenue standard from December 15, 2016 to December 15, 2017, with early adoption permitted as of annual reporting periods beginning after December 15, 2016. Accordingly, the ASU will be effective for the Company beginning fiscal year 2018. In addition, in March 2016, the FASB issued ASU No. 2016-08 (Topic 606) Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”), which clarifies the principal-versus-agent guidance in Topic 606 and requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, the FASB also issued ASU No. 2016-10 (Topic 606) Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”), which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. There are two transition methods available under the new standard, either cumulative effect or retrospective. ASU 2016-08 and ASU 2016-10 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements and disclosures.

Cash Equivalents and Investments

Investments in Available-for-Sale and Trading Securities

The following tables summarize the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of March 31, 2016 and December 31, 2015 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of March 31, 2016
Fixed income securities:
Asset-backed securities	$	324.5	$	0.2	$	(0.1	)	$	324.6
Certificates of deposit	18.1		—		—			18.1
Commercial paper	6.7		—		—			6.7
Corporate debt securities	869.0		1.7		(1.1		)	869.6
Foreign government debt securities	22.8		—		—			22.8
Government-sponsored enterprise obligations	200.0		0.1		—			200.1
U.S. government securities	336.2		0.2		(0.1		)	336.3
Total fixed income securities	1,777.3		2.2		(1.3		)	1,778.2
Money market funds	129.7		—		—			129.7
Mutual funds	6.0		0.1		—			6.1
Publicly-traded equity securities	8.8		0.1		(0.4		)	8.5
Total available-for-sale securities	1,921.8		2.4		(1.7		)	1,922.5
Trading securities in mutual funds^(*)	18.9		—		—			18.9
Total	$	1,940.7	$	2.4	$	(1.7	)	$	1,941.4

Reported as:
Cash equivalents	$	134.8	$	—	$	—		$	134.8
Restricted investments	35.7		0.1		—			35.8
Short-term investments	599.7		0.3		(0.6		)	599.4
Long-term investments	1,170.5		2.0		(1.1		)	1,171.4
Total	$	1,940.7	$	2.4	$	(1.7	)	$	1,941.4

________________________________


^(*)	Balance consists of the Company's non-qualified deferred compensation plan assets.



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2015
Fixed income securities:
Asset-backed securities	$	312.2	$	—	$	(0.5	)	$	311.7
Certificates of deposit	9.6		—		—			9.6
Commercial paper	17.7		—		—			17.7
Corporate debt securities	913.8		0.2		(2.6		)	911.4
Foreign government debt securities	16.5		—		—			16.5
Government-sponsored enterprise obligations	204.1		—		(0.4		)	203.7
U.S. government securities	278.0		—		(0.4		)	277.6
Total fixed income securities	1,751.9		0.2		(3.9		)	1,748.2
Money market funds	29.7		—		—			29.7
Mutual funds	6.1		0.1		—			6.2
Publicly-traded equity securities	8.7		0.8		(0.7		)	8.8
Total available-for-sale securities	1,796.4		1.1		(4.6		)	1,792.9
Trading securities in mutual funds^(*)	17.7		—		—			17.7
Total	$	1,814.1	$	1.1	$	(4.6	)	$	1,810.6

Reported as:
Cash equivalents	$	3.4	$	—	$	—		$	3.4
Restricted investments	35.8		0.1		—			35.9
Short-term investments	527.2		0.9		(1.0		)	527.1
Long-term investments	1,247.7		0.1		(3.6		)	1,244.2
Total	$	1,814.1	$	1.1	$	(4.6	)	$	1,810.6

________________________________


^(*)	Balance consists of the Company's non-qualified deferred compensation plan assets.

The following table presents the contractual maturities of the Company's total fixed income securities as of March 31, 2016 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Due in less than one year	$	606.7	$	0.3	$	(0.2	)	$	606.8
Due between one and five years	1,170.6		1.9		(1.1		)	1,171.4
Total	$	1,777.3	$	2.2	$	(1.3	)	$	1,778.2

The Company had 348 and 682 investments in unrealized loss positions as of March 31, 2016 and December 31, 2015, respectively. The gross unrealized losses related to these investments were primarily due to changes in market interest rates and stock prices. The Company periodically 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.

For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) it has the intention to sell any of these investments and (ii) whether it is more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. As of March 31, 2016, the Company anticipates that it will recover the entire amortized cost basis of such available-for-sale debt securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three months ended March 31, 2016 and March 31, 2015.

For available-for-sale equity securities that have unrealized losses, the Company evaluates whether there is an indication of other-than-temporary impairments. This determination is based on several factors, including the financial condition and near-term prospects of the issuer and the Company's intent and ability to hold the publicly-traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value. During the three months ended March 31, 2016 and March 31, 2015, the Company did not recognize other-than-temporary impairments associated with these investments.

During the three months ended March 31, 2016 and March 31, 2015, there were no material gross realized gains or losses from available-for-sale securities and there were no material gross realized gains or losses from trading securities.

The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of March 31, 2016 and December 31, 2015 (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, 2016
Fixed income securities:
Asset-backed securities⁽¹⁾	$	143.3	$	(0.1	)	$	19.5	$	—		$	162.8	$	(0.1	)
Certificates of deposit⁽²⁾	3.3		—			—		—			3.3		—
Corporate debt securities	312.2		(1.0		)	49.6		(0.2		)	361.8		(1.2		)
Foreign government debt securities⁽²⁾	13.0		—			—		—			13.0		—
Government-sponsored enterprise obligations⁽²⁾	59.0		—			—		—			59.0		—
U.S. government securities⁽²⁾	132.6		—			—		—			132.6		—
Total fixed income securities	663.4		(1.1		)	69.1		(0.2		)	732.5		(1.3		)
Publicly-traded equity securities	6.2		(0.4		)	—		—			6.2		(0.4		)
Total available-for-sale securities	$	669.6	$	(1.5	)	$	69.1	$	(0.2	)	$	738.7	$	(1.7	)

________________________________

⁽¹⁾Balances greater than 12 months include investments that were in an immaterial unrealized loss position as of March 31, 2016.

⁽²⁾Balances less than 12 months include investments that were in an immaterial unrealized loss position as of March 31, 2016.



	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, 2015
Fixed income securities:
Asset-backed securities	$	274.2	$	(0.4	)	$	30.8	$	(0.1	)	$	305.0	$	(0.5	)
Certificates of deposit^(*)	3.3		—			—		—			$	3.3	—
Corporate debt securities	687.9		(2.3		)	58.9		(0.3		)	746.8		(2.6		)
Foreign government debt securities^(*)	9.5		—			—		—			9.5		—
Government-sponsored enterprise obligations	185.3		(0.4		)	—		—			185.3		(0.4		)
U.S. government securities	259.3		(0.4		)	—		—			259.3		(0.4		)
Total fixed income securities	1,419.5		(3.5		)	89.7		(0.4		)	1,509.2		(3.9		)
Publicly-traded equity securities	2.1		(0.7		)	—		—			2.1		(0.7		)
Total available-for-sale securities	$	1,421.6	$	(4.2	)	$	89.7	$	(0.4	)	$	1,511.3	$	(4.6	)

________________________________


^(*)	Balances less than 12 months include investments that were in an immaterial unrealized loss position as of December 31, 2015.

Restricted Cash and Investments

The Company classifies certain cash and investments as restricted cash and investments on its Condensed Consolidated Balance Sheets for: (i) amounts held in escrow accounts, as required in connection with certain acquisitions completed between 2005 and 2014; (ii) the India Gratuity Trust and Israel Retirement Trust, which cover statutory severance obligations in the event of termination of any of the Company's India and Israel employees, respectively; and (iii) the Directors and Officers indemnification trust (“D&O Trust”). The restricted investments are designated as available-for-sale securities.

Privately-Held Investments

The Company has privately-held investments, which include debt and redeemable preferred stock securities that are carried at fair value, and non-redeemable preferred stock securities that are carried at cost.

As of March 31, 2016 and December 31, 2015, the carrying values of the Company's privately-held investments of $107.8 million and $102.4 million, respectively, were included in other long-term assets in the Condensed Consolidated Balance Sheets. As of March 31, 2016 and December 31, 2015, the carrying value of the privately-held investments includes debt and redeemable preferred stock securities of $68.6 million and $60.2 million, respectively. For the three months ended March 31, 2016 and March 31, 2015, there were no unrealized gains or losses associated with the privately-held debt and redeemable preferred stock securities.

The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. During the three months ended March 31, 2016, the Company determined that certain privately-held investments were other-than-temporarily impaired, resulting in impairment charges of $5.1 million that were recorded within other expense, net in the Condensed Consolidated Statement of Operations. No such charges were recorded during the three months ended March 31, 2015.

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables provide a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets (in millions):



	Fair Value Measurements at March 31, 2016 Using:
	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs			Significant Other Unobservable Remaining Inputs
	(Level 1)		(Level 2)			(Level 3)		Total
Assets measured at fair value:
Available-for-sale securities:
Asset-backed securities	$	—	$	324.6		$	—	$	324.6
Certificates of deposit	—		18.1			—		18.1
Commercial paper	—		6.7			—		6.7
Corporate debt securities	—		869.6			—		869.6
Foreign government debt securities	—		22.8			—		22.8
Government-sponsored enterprise obligations	—		200.1			—		200.1
Money market funds⁽¹⁾	129.7		—			—		129.7
Mutual funds⁽²⁾	6.1		—			—		6.1
Publicly-traded equity securities	8.5		—			—		8.5
U.S. government securities	288.2		48.1			—		336.3
Total available-for-sale securities	432.5		1,490.0			—		1,922.5
Trading securities in mutual funds⁽³⁾	18.9		—			—		18.9
Privately-held debt and redeemable preferred stock securities	—		—			68.6		68.6
Derivative assets:
Foreign exchange contracts	—		3.4			—		3.4
Total assets measured at fair value	$	451.4	$	1,493.4		$	68.6	$	2,013.4
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange contracts	$	—	$	(0.6	)	$	—	$	(0.6	)
Total liabilities measured at fair value	$	—	$	(0.6	)	$	—	$	(0.6	)

Total assets measured at fair value, reported as:
Cash equivalents	$	100.0	$	34.8		$	—	$	134.8
Restricted investments	35.8		—			—		35.8
Short-term investments	161.2		438.2			—		599.4
Long-term investments	154.4		1,017.0			—		1,171.4
Prepaid expenses and other current assets	—		3.4			—		3.4
Other long-term assets	—		—			68.6		68.6
Total assets measured at fair value	$	451.4	$	1,493.4		$	68.6	$	2,013.4

Total liabilities measured at fair value, reported as:
Other accrued liabilities	$	—	$	(0.6	)	$	—	$	(0.6	)
Total liabilities measured at fair value	$	—	$	(0.6	)	$	—	$	(0.6	)

________________________________


⁽¹⁾	Balance includes $29.7 million of restricted investments measured at fair market value related to the Company's D&O Trust and acquisition-related escrows.


⁽²⁾	Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.


⁽³⁾	Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.



	Fair Value Measurements at December 31, 2015 Using:
	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs			Significant Other Unobservable Remaining Inputs
	(Level 1)		(Level 2)			(Level 3)		Total
Assets measured at fair value:
Available-for-sale securities:
Asset-backed securities	$	—	$	311.7		$	—	$	311.7
Certificates of deposit	—		9.6			—		9.6
Commercial paper	—		17.7			—		17.7
Corporate debt securities	—		911.4			—		911.4
Foreign government debt securities	—		16.5			—		16.5
Government-sponsored enterprise obligations	—		203.7			—		203.7
Money market funds⁽¹⁾	29.7		—			—		29.7
Mutual funds⁽²⁾	6.2		—			—		6.2
Publicly-traded equity securities	8.8		—			—		8.8
U.S. government securities	247.3		30.3			—		277.6
Total available-for-sale securities	292.0		1,500.9			—		1,792.9
Trading securities in mutual funds⁽³⁾	17.7		—			—		17.7
Privately-held debt and redeemable preferred stock securities	—		—			60.2		60.2
Derivative assets:
Foreign exchange contracts	—		0.4			—		0.4
Total assets measured at fair value	$	309.7	$	1,501.3		$	60.2	$	1,871.2
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange contracts	$	—	$	(1.3	)	$	—	$	(1.3	)
Total liabilities measured at fair value	$	—	$	(1.3	)	$	—	$	(1.3	)

Total assets measured at fair value, reported as:
Cash equivalents	$	—	$	3.4		$	—	$	3.4
Restricted investments	35.9		—			—		35.9
Short-term investments	108.2		418.9			—		527.1
Long-term investments	165.6		1,078.6			—		1,244.2
Prepaid expenses and other current assets	—		0.4			—		0.4
Other long-term assets	—		—			60.2		60.2
Total assets measured at fair value	$	309.7	$	1,501.3		$	60.2	$	1,871.2

Total liabilities measured at fair value, reported as:
Other accrued liabilities	$	—	$	(1.3	)	$	—	$	(1.3	)
Total liabilities measured at fair value	$	—	$	(1.3	)	$	—	$	(1.3	)

________________________________


⁽¹⁾	Balance includes $29.7 million of restricted investments measured at fair market value related to the Company's D&O Trust and acquisition-related escrows.


⁽²⁾	Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.


⁽³⁾	Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.

The Company's Level 2 available-for-sale fixed income securities are priced using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, or alternative pricing sources with reasonable levels of price transparency which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets. The Company's derivative instruments are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 at the beginning of the quarter in which a change in circumstances resulted in a transfer. During the three months ended March 31, 2016, the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value.

All of the Company's privately-held debt and redeemable preferred stock securities, are classified as Level 3 assets due to the absence of quoted market prices and an inherent lack of liquidity. The Company estimates the fair value of its privately-held debt investments on a recurring basis using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. During the three months ended March 31, 2016, there were purchases related to privately-held debt securities of $10.5 million.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain of the Company's assets, including intangible assets, goodwill, and privately-held equity investments, are measured at fair value on a nonrecurring basis, only if impairment is indicated. Privately-held equity investments, which are normally carried at cost, are measured at fair value on a nonrecurring basis due to events and circumstances that the Company identifies as significantly impacting the fair value of investments. The Company estimates the fair value of its privately-held equity investments using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. Purchased intangible assets are measured at fair value primarily using discounted cash flow projections.

As of March 31, 2016, certain privately-held equity investments with a carrying value of $5.1 million, were impaired and were written-down to their fair value of zero and were classified as Level 3 assets due to the absence of quoted market prices and inherent lack of liquidity. The impairment charges of $5.1 million were recorded to other expense, net in the Condensed Consolidated Statements of Operations. As of December 31, 2015, the Company had no significant privately-held equity investments measured at fair value on a nonrecurring basis.

As of March 31, 2016 and December 31, 2015, the Company had no 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. As of March 31, 2016 and December 31, 2015, the estimated fair value of the Company's long-term debt in the Condensed Consolidated Balance Sheets was approximately $2,165.8 million and $1,946.7 million, respectively, based on observable market inputs (Level 2). The carrying value of the promissory note, issued to the Company in connection with the sale of Junos Pulse, of $132.9 million approximates its fair value and is recorded in other long-term assets in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015, respectively. The promissory note is classified as a Level 3 asset due to the absence of quoted market prices and inherent lack of liquidity. See Note 7, Other Financial Information, for further information on the promissory note.

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 the Company's foreign currency derivatives are summarized as follows (in millions):



	As of
	March 31, 2016		December 31, 2015
Cash flow hedges	$	125.6	$	116.8
Non-designated derivatives	21.3		71.8
Total	$	146.9	$	188.6

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 hedge the U.S. Dollar equivalent of the Company's planned cost of services and operating expenses denominated in certain foreign currencies. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of one year or less. The effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive 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 other expense, net, on its Condensed Consolidated Statements of Operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income are expected to be reclassified into earnings within the next twelve months.

See Note 4, Fair Value Measurements, for the fair values of the Company's derivative instruments in the Condensed Consolidated Balance Sheets.

As of March 31, 2016, the Company recognized unrealized gains of $3.0 million in accumulated other comprehensive loss for the effective portion of its derivative instruments and reclassified a realized loss during the three months ended March 31, 2016 of $1.3 million from other comprehensive loss to cost of revenues and operating expense in the Condensed Consolidated Statements of Operations. As of March 31, 2015, the Company recognized an unrealized loss of $6.1 million in accumulated other comprehensive loss for the effective portion of its derivative instruments and reclassified a realized loss of $3.0 million during the three months ended March 31, 2016 from other comprehensive loss to cost of revenues and operating expense in the Condensed Consolidated Statements of Operations.

The ineffective portion of the Company's derivative instruments recognized in its Condensed Consolidated Statements of Operations was not material during the three months ended March 31, 2016 and March 31, 2015.

Non-Designated Derivatives

The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the remeasurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives are carried at fair value with changes recorded in other expense, net, in the Condensed Consolidated Statements of Operations. Changes in the fair value of these derivatives are largely offset by remeasurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. These foreign exchange forward contracts have maturities within two months.

During the three months ended March 31, 2016 and March 31, 2015, the Company recognized a net loss of $1.3 million and a net gain of $2.1 million, respectively, on non-designated derivative instruments within other expense, net, in its Condensed Consolidated Statements of Operations.

Offsetting of Derivatives

The Company presents its derivative assets and derivative liabilities on a gross basis in the Condensed Consolidated Balance Sheets. However, under agreements containing provisions on netting with certain counterparties of foreign exchange contracts, subject to applicable requirements, the Company is allowed to net-settle transactions on the same date in the same currency, with a single net amount payable by one party to the other. As of March 31, 2016 and December 31, 2015, the potential effect of rights of setoff associated with derivative instruments was not material. The Company is neither required to pledge nor entitled to receive cash collateral related to these derivative transactions.

Goodwill and Purchased Intangible Assets

Goodwill

The following table presents goodwill activity during the three months ended March 31, 2016 (in millions):



Balance as of December 31, 2015	$	2,981.3
Other	—
Balance as of March 31, 2016	$	2,981.3

There were no impairments to goodwill during the three months ended March 31, 2016 and March 31, 2015.

Purchased Intangible Assets

The Company’s purchased intangible assets were as follows (in millions):



	Gross		Accumulated Amortization			Accumulated Impairments and Other Charges			Net
As of March 31, 2016
Intangible assets with finite lives:
Technologies and patents	$	567.7	$	(494.4	)	$	(49.9	)	$	23.4
Customer contracts, support agreements, and related relationships	78.1		(68.4		)	(2.8		)	6.9
Other	1.1		(0.8		)	—			0.3
Total purchased intangible assets	$	646.9	$	(563.6	)	$	(52.7	)	$	30.6

As of December 31, 2015
Intangible assets with finite lives:
Technologies and patents	$	567.7	$	(491.8	)	$	(49.9	)	$	26.0
Customer contracts, support agreements, and related relationships	78.1		(67.8		)	(2.8		)	7.5
Other	1.1		(0.7		)	—			0.4
Total purchased intangible assets	$	646.9	$	(560.3	)	$	(52.7	)	$	33.9

The following table presents the amortization of intangible assets included in the Condensed Consolidated Statements of Operations (in millions):



	Three Months Ended March 31,
	2016		2015
Cost of revenues	$	2.4	$	10.8
Operating expenses:
Sales and marketing	0.5		0.8
General and administrative	0.4		0.3
Total operating expenses	0.9		1.1
Total	$	3.3	$	11.9

During the three months ended March 31, 2015, the Company recorded $5.6 million to cost of revenues in the Condensed Consolidated Statements of Operations, related to the acceleration of the end-of-life of certain intangible assets. There were no such charges during the three months ended March 31, 2016.

There were no impairment charges related to purchased intangible assets during the three months ended March 31, 2016 and March 31, 2015.

As of March 31, 2016, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):



Years Ending December 31,	Amount
Remainder of 2016	$	8.3
2017	7.0
2018	5.1
2019	4.9
2020	4.8
Thereafter	0.5
Total	$	30.6

Other Financial Information

Inventories

The Company purchases and holds inventory to provide adequate component supplies over the life of the underlying products. The majority of the Company's inventory is production components to be used in the manufacturing process and finished goods inventory in transit. Inventories are reported within both prepaid expenses and other current assets and other long-term assets in the Condensed Consolidated Balance Sheets. Total inventories consisted of the following (in millions):



	As of
	March 31, 2016		December 31, 2015
Production materials	$	76.8	$	61.9
Finished goods	21.3		13.1
Inventories	$	98.1	$	75.0

Other Long-Term Assets

Other long-term assets consisted of the following (in millions):



	As of
	March 31, 2016		December 31, 2015
Privately-held investments	$	107.8	$	102.4
Licensed software	6.7		7.1
Federal income tax receivable	43.7		28.9
Customer financing receivable	2.2		—
Inventory	7.2		8.4
Prepaid costs, deposits, and other^(*)	76.3		99.2
Promissory note in connection with the sale of Junos Pulse	132.9		132.9
Other long-term assets	$	376.8	$	378.9

________________________________


^(*)	During the three months ended March 31, 2016, the Company adopted ASU 2015-03. The balance as of December 31, 2015 was retrospectively adjusted to conform to the current-year presentation.

On October 1, 2014, the Company completed the sale of its Junos Pulse product portfolio. The Company received total consideration of $230.7 million, of which $105.7 million was in cash, net of a $19.3 million working capital adjustment, and $125.0 million was in the form of a non-contingent interest-bearing promissory note due to the Company on April 1, 2016 (the “Pulse Note”). On October 2, 2015, the Company and the issuer of the Pulse Note mutually agreed to amend the original terms of the Pulse Note to, among other things, extend the maturity date from April 1, 2016 to December 31, 2018, provided that interest due on the Pulse Note through December 31, 2015 shall be paid in kind by increasing the outstanding principal amount of the note and increasing the interest rate on the Pulse Note. In addition, under the amended terms of the Pulse Note, the issuer is required to make a minimum payment of $75.0 million on or prior to April 1, 2017, less any amount previously pre-paid to the Company. The note receivable, along with interest paid in kind, is classified as long-term assets based on expected collection beyond twelve months from the Condensed Consolidated Balance Sheet date.

The Company considers notes receivable to be impaired when, based on current information and events, it is probable that the Company will not be able to collect the scheduled payments of principal or interest when due. Further, the Company measures any impairment to the Pulse Note based on the present value of expected cash flows, which are discounted at the note's effective interest rate, compared to the recorded investment of the note, including principal and accrued interest. Based on the impairment assessment, no impairment charge was required to the Pulse Note as of March 31, 2016. Interest income on the Pulse Note is accrued and credited to interest income as it is earned, unless it is not probable the Company will collect the amounts due or if the present value of expected cash flows is less than the recorded investment. During the three months ended March 31, 2016 and March 31, 2015, the related amount of interest income recognized was $2.7 million and $1.6 million, respectively.

Warranties

The Company accrues for warranty costs based on associated material, labor for customer support, and overhead at the time revenue is recognized. This accrual is reported within other accrued liabilities in the Condensed Consolidated Balance Sheets. Changes in the Company’s warranty reserve during the three months ended March 31, 2016 were as follows (in millions):



Balance as of December 31, 2015	$	28.4
Provisions made during the period	6.6
Actual costs incurred during the period	(6.6		)
Balance as of March 31, 2016	$	28.4

Deferred Revenue

Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions):



	As of
	March 31, 2016			December 31, 2015
Deferred product revenue:
Undelivered product commitments and other product deferrals	$	205.6		$	210.1
Distributor inventory and other sell-through items	102.8			81.8
Deferred gross product revenue	308.4			291.9
Deferred cost of product revenue	(47.3		)	(51.6		)
Deferred product revenue, net	261.1			240.3
Deferred service revenue	998.9			927.8
Total	$	1,260.0		$	1,168.1
Reported as:
Current	$	893.3		$	822.9
Long-term	366.7			345.2
Total	$	1,260.0		$	1,168.1

Deferred product revenue 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. In circumstances when costs are deferred, deferred product revenue is recorded net of the related costs of product revenue. Deferred service revenue represents billable amounts for service contracts, which include technical support, hardware and software maintenance, professional services, and training, for which services have not been rendered.

Other Expense, Net

Other expense, net, consisted of the following (in millions):



	Three Months Ended March 31,
	2016			2015
Interest income	$	7.9		$	3.8
Interest expense	(22.5		)	(18.5		)
(Loss) gain on investments	(5.4		)	0.6
Other	(2.2		)	(1.7		)
Other expense, net	$	(22.2	)	$	(15.8	)

Interest income primarily includes interest earned on the Company’s cash, cash equivalents, investments, and on the promissory note issued to the Company in connection with the sale of Junos Pulse. Interest expense primarily includes interest, net of capitalized interest expense, from short-term debt, long-term debt, and customer financing arrangements. Other typically consists of investment and foreign exchange gains and losses and other non-operational income and expense items.

Debt and Financing

Long-Term Debt

The following table summarizes the Company's long-term debt (in millions, except percentages):



	As of March 31, 2016
	Amount			Effective Interest Rates
Senior Notes:
3.125% fixed-rate notes, due February 2019	$	350.0		3.36	%
3.300% fixed-rate notes, due June 2020	300.0			3.47	%
4.600% fixed-rate notes, due March 2021	300.0			4.69	%
4.500% fixed-rate notes, due March 2024, issued March 2014	350.0			4.63	%
4.500% fixed-rate notes, due March 2024, issued February 2016	150.0			4.87	%
4.350% fixed-rate notes, due June 2025	300.0			4.47	%
5.950% fixed-rate notes, due March 2041	400.0			6.03	%
Total senior notes	2,150.0
Unaccreted discount and debt issuance costs	(18.2		)
Total	$	2,131.8

In February 2016, the Company issued $350.0 million aggregate principal amount of 3.125% senior notes due 2019 ("2019 Notes") and $150.0 million aggregate principal amount of 4.50% senior notes due 2024 ("2024 Notes"). In March 2015, the Company issued $300.0 million aggregate principal amount of 3.30% senior notes due 2020 ("2020 Notes") and $300.0 million aggregate principal amount of 4.35% senior notes due 2025 ("2025 Notes"). In addition, in March 2014, the Company issued $350.0 million aggregate principal amount of the 2024 Notes, which form a single series and are fully fungible with the 2024 Notes issued in February 2016. In March 2011, the Company issued $300.0 million aggregate principal amount of 4.60% senior notes due 2021 ("2021 Notes") and $400.0 million aggregate principal amount of 5.95% senior notes due 2041 ("2041 Notes").

The "2019 Notes", "2020 Notes," "2021 Notes," "2024 Notes", "2025 Notes" and "2041 Notes" collectively the "Notes" are the Company’s senior unsecured and unsubordinated obligations, ranking equally in right of payment to all of the Company’s existing and future senior unsecured and unsubordinated indebtedness and senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated to the Notes.

The Company may redeem the 2020 Notes and 2025 Notes, either in whole or in part, at any time one month prior to the maturity date of the 2020 Notes, and three months prior to the maturity date of the 2025 Notes, at a redemption price equal to the greater of (i) 100% of the aggregate principal amount of the 2020 Notes and 2025 Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments discounted at the Treasury rate plus 30 basis points for the 2020 Notes, or the Treasury rate plus 37.5 basis points for the 2025 Notes, plus, in the case of each of the clauses (i) and (ii) above, accrued and unpaid interest, if any. At any time on or after May 15, 2020, in the case of the 2020 Notes, and at any time on or after March 15, 2025, in the case of the 2025 Notes, the Company may redeem Notes of such series, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2020 Notes and the 2025 Notes to be redeemed, plus accrued and unpaid interest, if any. The Company may redeem the other Notes, either in whole or in part, at any time at a redemption price equal to the greater of (i) 100% of the aggregate principal amount of the Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments discounted to the redemption date, plus, in either case, accrued and unpaid interest, if any.

In the event of a change of control repurchase event, the holders of the Notes may require the Company to repurchase for cash all or part of the Notes at a purchase price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest, if any.

Interest on the Notes is payable in cash semiannually. The effective interest rates for the Notes include the interest on the Notes, accretion of the discount, and amortization of issuance costs. The indentures that govern the Notes also contain various covenants, including limitations on the Company's ability to incur liens or enter into sale-leaseback transactions over certain dollar thresholds.

In March 2016, the Company repaid the aggregate principal amount of $300.0 million on its 3.10% senior notes upon maturity.

As of March 31, 2016, the Company was in compliance with all covenants in the indentures governing the Notes.

Revolving Credit Facility

On June 27, 2014, the Company entered into a Credit Agreement (“Credit Agreement”) with certain institutional lenders and Citibank, N.A., as administrative agent, that provides for a $500.0 million unsecured revolving credit facility, with an option of the Company to increase the amount of the credit facility by up to an additional $200.0 million, subject to certain conditions. Proceeds of loans made under the Credit Agreement may be used by the Company for working capital and general corporate purposes. Revolving loans may be borrowed, repaid and reborrowed until June 27, 2019, at which time all amounts borrowed must be repaid. Borrowing may be denominated, at the Company's option, in U.S. dollars, Pounds Sterling or Euro.

Borrowings under the Credit Agreement will bear interest at either i) a floating rate per annum equal to the base rate plus a margin of between 0.00% and 0.50%, depending on the Company's public debt rating or ii) a per annum rate equal to the reserve adjusted Eurocurrency rate, plus a margin of between 0.90% and 1.50%, depending on the Company's public debt rating. Base rate is defined as the greatest of (A) Citibank's base rate, (B) the Federal Funds rate plus 0.50% or (C) the ICE Benchmark Administration Settlement Rate applicable to dollars for a period of one month plus 1.00%. The Eurocurrency rate is determined for U.S. dollars and Pounds Sterling as the rate at which deposits in such currency are offered in the London interbank market for the applicable interest period and for Euro as the rate specified for deposits in Euro with a maturity comparable to the applicable interest period.

As of March 31, 2016, the Company was in compliance with all covenants in the Credit Agreement, and no amounts were outstanding.

Customer Financing Arrangements

The Company provides certain distribution partners access to extended financing arrangements for certain end-user customers that require longer payment terms than those typically provided by the Company through factoring accounts receivable to third-party financing providers (“financing providers”). The program does not and is not intended to affect the timing of the Company's revenue recognition. Under the financing arrangements, proceeds from the financing provider are due to the Company within 30 to 90 days from the sale of the receivable. In these transactions with the financing provider, the Company surrenders control over the transferred assets. Beginning in 2014 and through 2015, the Company transitioned certain distribution partners from the third party financing program to the Company's commercial payment terms. As a result, the Company's customer financing activities significantly declined from fiscal year 2014 through the first quarter of 2016.

Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $4.9 million and $47.1 million during the three months ended March 31, 2016 and March 31, 2015, respectively.

The Company received cash proceeds from the financing provider of $1.7 million and $60.0 million during the three months ended March 31, 2016 and March 31, 2015, respectively. As of March 31, 2016 and December 31, 2015, the amounts owed by the financing provider were $4.4 million and $1.2 million, respectively, and were recorded in accounts receivable on the Condensed Consolidated Balance Sheets.

Equity

Cash Dividends on Shares of Common Stock

During the three months ended March 31, 2016, the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 27, 2016 which was paid on March 22, 2016 to stockholders of record on March 1, 2016 in the aggregate amount of $38.3 million. Any future dividends, and the establishment of record and payment dates, are subject to approval by the Board of Directors (the “Board”) of Juniper Networks or authorized committee thereof. See Note 15, Subsequent Events, for discussion of the Company's dividend declaration subsequent to March 31, 2016.

Stock Repurchase Activities

In February 2014, the Company's Board approved a stock repurchase program that authorized the Company to repurchase up to $2.1 billion of its common stock, including $1.2 billion pursuant to an accelerated share repurchase program (“2014 Stock Repurchase Program”). In October 2014 and July 2015, the Board authorized a $1.3 billion and $500.0 million increase, respectively, to the 2014 Stock Repurchase Program for a total of $3.9 billion. As of March 31, 2016, there was $457.5 million of authorized funds remaining under the 2014 Stock Repurchase Program.

During the three months ended March 31, 2016 and March 31, 2015, the Company repurchased and retired approximately 3.1 million and 17.4 million shares of its common stock, respectively, at an average price of $23.89 and $23.05 per share, respectively, for an aggregate purchase price of $75.0 million and $400.0 million, respectively.

In addition to repurchases under the Company’s stock repurchase program, the Company also repurchases common stock from certain employees in connection with the net issuance of shares to satisfy minimum tax withholding obligations upon the vesting of certain stock awards issued to such employees. Repurchases associated with tax withholdings were not significant during the three months ended March 31, 2016 and March 31, 2015.

Future share repurchases under the Company’s stock repurchase programs will be subject to a review of the circumstances at that time and will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements.

The Company's stock repurchase programs may be discontinued at any time. See Note 15, Subsequent Events, for discussion of the Company's stock repurchase activity subsequent to March 31, 2016.

Accumulated Other Comprehensive Loss, Net of Tax

The components of accumulated other comprehensive loss, net of related taxes, during the three months ended March 31, 2016 were as follows (in millions):



	Unrealized Gains (Losses) on Available-for- Sale Securities⁽¹⁾		Unrealized Gains (Losses) on Cash Flow Hedges⁽²⁾			Foreign Currency Translation Adjustments			Total
Balance as of December 31, 2015	$	17.0	$	(1.3	)	$	(34.9	)	$	(19.2	)
Other comprehensive gain before reclassifications	4.3		2.5			3.7			10.5
Amount reclassified from accumulated other comprehensive loss	0.1		1.1			—			1.2
Other comprehensive gains, net	4.4		3.6			3.7			11.7
Balance as of March 31, 2016	$	21.4	$	2.3		$	(31.2	)	$	(7.5	)

________________________________


⁽¹⁾	The reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2016 for realized losses on available-for-sale securities of $0.1 million are included in other expense, net, in the Condensed Consolidated Statements of Operations.

⁽²⁾

The reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2016 for realized losses on cash flow hedges are included within cost of revenues of $0.3 million, research and development of $0.4 million, sales and marketing of $0.3 million, and general and administrative of $0.1 million for which the hedged transactions relate in the Condensed Consolidated Statements of Operations.

Employee Benefit Plans

Equity Incentive Plans

The Company’s equity incentive plans include the 2015 Equity Incentive Plan (the “2015 Plan”), the 2006 Equity Incentive Plan (the “2006 Plan”), the Amended and Restated 1996 Stock Plan (the “1996 Plan”), various equity incentive plans assumed through acquisitions, and the 2008 Employee Stock Purchase Plan (the “ESPP”). Under these plans, the Company has granted (or, in the case of acquired plans, assumed) stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and performance share awards (“PSAs”).

The 2015 Plan was adopted and approved by the Company's stockholders in May 2015 and had an initial authorized share reserve of 38.0 million shares of common stock plus the addition of any shares subject to outstanding awards under the 2006 Plan and the 1996 Plan that were outstanding as of May 19, 2015, and that subsequently expire or otherwise terminate, up to a maximum of an additional 29.0 million shares. As of March 31, 2016, an aggregate of 22.1 million shares were subject to outstanding equity awards under the 2015 Plan and the 2006 Plan, and no shares were subject to outstanding equity awards under the 1996 Plan. As of March 31, 2016, 23.6 million shares were available for future issuance under the 2015 Plan and no shares were available for future issuance under the 2006 Plan or the 1996 Plan.

The ESPP was adopted and approved by the Company's stockholders in May 2008. To date, the Company's stockholders have approved a share reserve of 26.0 million shares of the Company's common stock for issuance under this plan, which includes an additional 7.0 million shares approved by the Company's stockholders in May 2015. The ESPP permits eligible employees to acquire shares of the Company’s common stock at a 15% discount to the offering price (as determined in the ESPP) 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, 2016, approximately 19.7 million shares have been issued and 6.3 million shares remain available for future issuance under the ESPP.

In connection with certain past acquisitions, the Company assumed stock options, RSUs, and RSAs under the assumed stock plans of the acquired companies and exchanged the assumed awards for the Company's stock options, RSUs, and RSAs, respectively. No new equity awards can be granted under these assumed plans. As of March 31, 2016, stock options, RSUs, and RSAs representing approximately 1.0 million shares of common stock were outstanding under all awards assumed through the Company's acquisitions.

Stock Option Activities

The following table summarizes the Company’s stock option activity and related information as of and for the three months ended March 31, 2016 (in millions, except for per share amounts and years):



	Outstanding Options
	Number of Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance as of December 31, 2015	3.6		$	27.52
Exercised	(0.4	)	14.50
Balance as of March 31, 2016	3.2		$	29.23	2.0	$	9.2

As of March 31, 2016:
Vested and expected-to-vest options	3.2		$	29.27	2.0	$	9.1
Exercisable options	3.1		$	30.18	1.8	$	6.7

The aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $25.51 per share as of March 31, 2016, and the exercise price of the applicable options 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 exercise and the exercise price of each option, was $3.9 million for the three months ended March 31, 2016.

Restricted Stock Unit, Restricted Stock Award, and Performance Share Award Activities

The following table summarizes the Company’s RSU, RSA, and PSA activity and related information as of and for the three months ended March 31, 2016 (in millions, except per share amounts and years):



	Outstanding RSUs, RSAs, and PSAs
	Number of Shares		Weighted Average Grant-Date Fair Value per Share		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance as of December 31, 2015	18.6		$	22.71
RSUs granted ⁽¹⁾⁽³⁾	6.1		24.97
PSAs granted⁽²⁾⁽³⁾	0.7		23.70
RSUs vested	(3.5	)	21.73
RSAs vested	(0.6	)	21.02
PSAs vested	(0.7	)	21.61
RSUs canceled	(0.3	)	22.29
PSAs canceled	(0.4	)	21.69
Balance as of March 31, 2016	19.9		$	23.73	1.5	$	506.9

________________________________


⁽¹⁾	Includes service-based and market-based RSUs granted under the 2015 Plan according to its terms.

⁽²⁾

The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.7 million shares.

⁽³⁾

The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. On January 27, 2016, the Company declared a cash dividend of $0.10 per share of common stock, or $38.3 million in the aggregate, to stockholders of record on March 1, 2016, which was paid on March 22, 2016.

Employee Stock Purchase Plan

The ESPP is implemented in a series of offering periods, each currently six months in duration, or such other period as determined by the Board. Employees purchased 1.3 million and 1.4 million shares of common stock through the ESPP at an average exercise price of $20.06 and $19.32 per share for the three months ended March 31, 2016 and March 31, 2015, respectively.

Valuation Assumptions

The weighted-average assumptions used and the resulting estimates of fair value for ESPP and market-based RSUs during the three months ended March 31, 2016 and March 31, 2015 were as follows:



	Three Months Ended March 31,
	2016	2015
ESPP ⁽¹⁾:
Volatility	35%	30%
Risk-free interest rate	0.5%	0.1%
Expected life (years)	0.5	0.5
Dividend yield	1.7%	1.9%
Weighted-average fair value per share	$5.95	$5.23

Market-based RSUs ⁽²⁾:
Volatility	36%	34%
Risk-free interest rate	1.2%	1.4%
Dividend yield	1.7%	1.8%
Weighted-average fair value per share	$14.71	$14.97

________________________________


⁽¹⁾	The Black-Scholes-Merton option-pricing model is utilized to estimate the fair value of shares issuable under the ESPP.

⁽²⁾

The fair value of market-based RSUs utilizes a Monte Carlo valuation methodology. The Company amortizes the fair value of these awards over the derived service period adjusted for estimated forfeitures for each separately vesting tranche of the award. Provided that the derived service is rendered, the total fair value of the market-based RSUs at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria.

Share-Based Compensation Expense

Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Condensed Consolidated Statements of Operations (in millions):



	Three Months Ended March 31,
	2016		2015
Cost of revenues - Product	$	1.9	$	1.7
Cost of revenues - Service	3.5		3.4
Research and development	32.3		30.7
Sales and marketing	9.4		5.8
General and administrative	4.7		4.4
Total	$	51.8	$	46.0

The following table summarizes share-based compensation expense by award type (in millions):



	Three Months Ended March 31,
	2016		2015
Stock options	$	1.2	$	2.2
RSUs, RSAs, and PSAs	46.8		40.6
ESPP	3.8		3.2
Total	$	51.8	$	46.0

The following table presents unrecognized compensation cost, adjusted for estimated forfeitures, recognized over a weighted-average period related to unvested stock options, RSUs, RSAs, and PSAs as of March 31, 2016 (in millions, except years):



	Unrecognized Compensation Cost		Weighted Average Period (In Years)
Stock options	$	0.9	0.4
RSUs, RSAs, and PSAs	$	279.4	2.1

Segments

The Company conducts business globally and is managed, operated and organized by major functional departments that operate on a consolidated basis. Each major functional leader reports directly to the Company's chief executive officer, who is the chief operating decision maker (“CODM”). The Company's CODM views the business, allocates resources and assesses the performance of the Company primarily based on consolidated financial information for the entire business, accompanied by disaggregated information about net revenues by product and service and geographic region as presented below. As a result, the Company operates in one reportable segment.

The following table presents net revenues by product and service (in millions):



	Three Months Ended March 31,
	2016		2015
Routing	$	504.1	$	504.8
Switching	175.5		166.5
Security	73.4		92.8
Total product	753.0		764.1

Total service	344.9		303.3
Total	$	1,097.9	$	1,067.4

The Company attributes revenues to geographic region based on the customer’s ship-to location. The following table presents net revenues by geographic region (in millions):



	Three Months Ended March 31,
	2016		2015
Americas:
United States	$	579.0	$	533.5
Other	49.2		55.5
Total Americas	628.2		589.0
Europe, Middle East, and Africa	285.4		303.8
Asia Pacific	184.3		174.6
Total	$	1,097.9	$	1,067.4

No customer accounted for greater than 10% or more of the Company's net revenues during the three months ended March 31, 2016 and March 31, 2015, respectively.

The following table presents geographic information for property and equipment, net and purchased intangible assets, net (in millions):



	As of
	March 31, 2016		December 31, 2015
United States	$	946.2	$	925.5
International	131.7		129.4
Property and equipment, net and purchased intangible assets, net	$	1,077.9	$	1,054.9

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, 2016 and December 31, 2015, were attributable to U.S. operations.

Income Taxes

The Company's effective tax rates for the three months ended March 31, 2016 and March 31, 2015 of 27.8% and 30.9%, respectively, differ from the federal statutory rate of 35% primarily due to the benefit of the Section 199 deduction for U.S. production activities, earnings in foreign jurisdictions, which are subject to lower tax rates, and the impact of the discrete items noted below. The effective rate for the three months ended March 31, 2015 does not reflect the benefit of the federal research and development (“R&D”) credit, which was permanently reinstated on December 18, 2015 and a change in the tax treatment of share-based compensation in the Company's cost-sharing arrangement, which occurred in the three months ended September 30, 2015.

The effective tax rates for the three months ended March 31, 2016 and March 31, 2015 include the tax benefit of the following discrete items (in millions):



	Three Months Ended March 31,
	2016			2015
Loss on privately-held equity investments	$	(1.9	)	$	—
Restructuring charges	$	—		$	(1.3	)

As of March 31, 2016, the total amount of gross unrecognized tax benefits was $220.8 million, of which $185.8 million, if recognized, would affect the Company's effective tax rate.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. There is a greater than remote likelihood that the balance of the gross unrecognized tax benefits will decrease by approximately $4.3 million within the next twelve months due to lapses of applicable statutes of limitations and the completion of tax review cycles in various tax jurisdictions.

The Company is currently under examination by the Internal Revenue Service (“IRS”) for the 2007 through 2009 tax years and the California Franchise Tax Board for the 2004 through 2006 tax years. In March 2016, the IRS concluded its field audit and issued a final assessment. The Company is appealing this assessment. As of March 31, 2016, the Company believes the resolution of the audits is unlikely to have a material effect on its consolidated financial condition or results of operations.

The Company is also subject to separate ongoing examinations by the India tax authorities for the 2003 tax year, 2004 through 2008 tax years, and the 2009 through 2011 tax years. As of as of March 31, 2016, the Company is not aware of any other examinations by tax authorities in any other major jurisdictions in which it files income tax returns.

In 2008, the Company received a proposed adjustment from the India tax authorities related to the 2004 tax year. In 2009, the India tax authorities commenced a separate investigation of our 2004 through 2008 tax returns and are disputing the Company's determination of taxable income due to the cost basis of certain fixed assets. The Company accrued $4.6 million in penalties and interest in 2009 related to this matter. The Company understands that 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 remedies relative to these matters. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to these proposed adjustments and the ultimate resolution of these matters is unlikely to have a material effect on its consolidated financial condition or results of operations; however there is still a possibility that an adverse outcome of these matters could have a material effect on its consolidated financial condition and results of operations.

Net Income Per Share

Net Income per Share

The Company computed basic and diluted net income per share attributable to Juniper Networks common stockholders as follows (in millions, except per share amounts):



	Three Months Ended March 31,
	2016		2015
Numerator:
Net income	$	91.4	$	80.2
Denominator:
Weighted-average shares used to compute basic net income per share	383.2		407.1
Dilutive effect of employee stock awards	6.1		7.1
Weighted-average shares used to compute diluted net income per share	389.3		414.2
Net income per share attributable to Juniper Networks common stockholders:
Basic	$	0.24	$	0.20
Diluted	$	0.23	$	0.19

Anti-dilutive:
Potential anti-dilutive shares	4.0		6.4

Basic net income per share is computed using net income available to common stockholders and the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed using net income available to common stockholders and the weighted-average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Dilutive potential common shares consist of common shares issuable upon exercise of stock options, issuances of ESPP, and vesting of RSUs, RSAs, and PSAs. 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. Potentially dilutive common shares were excluded from the computation of diluted net income per share because their effect would be anti-dilutive.

Commitments and Contingencies

Commitments

Operating Leases

The Company leases its facilities and certain equipment under non-cancelable operating leases that expire at various dates through March 31, 2026. Certain leases require the Company to pay variable costs such as taxes, maintenance, and insurance and include renewal options and escalation clauses. Future minimum payments under the non-cancelable operating leases totaled $111.8 million as of March 31, 2016. Rent expense was $9.1 million and $11.5 million for the three months ended March 31, 2016 and March 31, 2015, respectively.

Data Center Lease Agreement

On July 10, 2015, the Company entered into a data center lease agreement through March 2026 in which the Company has the option to extend the term of the lease for up to twenty years in increments of either five years or ten years, for approximately 63,000 square feet of space in the State of Washington. The total payment for the lease is expected to be approximately $118.1 million over the ten-year term. The lease agreement provides the Company with a tenant allowance of $6.0 million to be used for tenant leasehold improvements. Any unused tenant allowance may be applied as a credit to the rent payment. The space will be used, among other things, to consolidate certain of the Company's laboratory operations currently located in Sunnyvale, California.

As the Company is subject to certain contractual obligations during the construction period, the Company is deemed the owner of the property during the construction period. Accordingly, as of March 31, 2016, the Company capitalized the construction cost by recording a build-to-suit lease asset under construction in progress of $59.8 million, which is a component of property and equipment, net, and a corresponding build-to-suit financing liability, which is a component of other long-term liabilities, in the Condensed Consolidated Balance Sheets.

Purchase Commitments with Contract Manufacturers and Suppliers

In order to reduce manufacturing lead times and ensure adequate component supply, the Company enters into agreements with contract manufacturers and certain suppliers to procure inventory based on the Company's requirements. A significant portion of the Company's purchase commitments arising from these agreements consists of firm and non-cancelable commitments. These purchase commitments totaled $601.6 million as of March 31, 2016.

The Company establishes a liability in connection with purchase commitments related to quantities in excess of its demand forecasts or obsolete materials charges for components purchased by the contract manufacturers based on the Company’s demand forecast or customer orders. As of March 31, 2016, the Company had accrued $19.8 million based on its estimate of such charges.

Debt and Interest Payment on Debt

As of March 31, 2016, the Company held long-term debt consisting of the Notes with a carrying value of $2,131.8 million. Of these Notes, $350.0 million will mature in 2019 and bears interest at a fixed rate of 3.125%, $300.0 million will mature in 2020 and bears interest at a fixed rate of 3.30%, $300.0 million will mature in 2021 and bears interest at a fixed rate of 4.60%, $500.0 million will mature in 2024 and bears interest at a fixed rate of 4.50%, $300.0 million will mature in 2025 and bears interest at a fixed rate of 4.35%, and $400.0 million will mature in 2041 and bears interest at a fixed rate of 5.95%. Interest on the Notes is payable semiannually. See Note 8, Debt and Financing, for further discussion of the Company's long-term debt.

Other Contractual Obligations

As of March 31, 2016, other contractual obligations primarily consisted of (1) $36.1 million in indemnity and employee-related obligations and service-related escrows, including those required in connection with certain asset purchases and acquisitions completed by the Company between 2005 and 2014; (2) $3.5 million in campus build-out obligations; and (3) $45.5 million of agreements that include firm and non-cancelable terms to transfer funds in the future for fixed or minimum amounts or quantities to be purchased at fixed or minimum prices.

Tax Liabilities

As of March 31, 2016, the Company had $190.4 million included in long-term income taxes payable in the Condensed Consolidated Balance Sheets for unrecognized tax positions. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to this amount due to uncertainties in the timing of tax audit outcomes.

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 solely, or in combination with other third party products, infringe the intellectual property rights of a third-party. As of March 31, 2016, the Company recorded a $15.6 million liability for such indemnification obligations in other accrued liabilities in the Condensed Consolidated Balance Sheets. The Company also has financial guarantees consisting of guarantees of product and service performance, guarantees related to third-party customer-financing arrangements, custom and duty guarantees, and standby letters of credit for certain lease facilities. As of March 31, 2016 and December 31, 2015, the Company had $6.1 million and $15.8 million, respectively, in financing arrangements, bank guarantees, and standby letters of credit related to these financial guarantees.

Legal Proceedings

Investigations

The U.S. Securities and Exchange Commission ("SEC") and the U.S. Department of Justice ("DOJ") are conducting investigations into possible violations by the Company of the U.S. Foreign Corrupt Practices Act ("FCPA"). The Company is cooperating with these agencies regarding these matters. The Company’s Audit Committee, with the assistance of independent advisors, has been investigating and conducting a thorough review of possible violations of the FCPA, and has made recommendations for remedial measures, including employee disciplinary actions in foreign jurisdictions, which the Company has implemented and continues to implement. The Company is unable to predict the duration, scope or outcome of the SEC and DOJ investigations, but believes that an adverse outcome is reasonably possible. However, the Company is not able to estimate a reasonable range of possible loss. The SEC and/or DOJ could take action against the Company or the Company could agree to settle. In such event, the Company could be required to pay substantial fines and sanctions and/or implement additional remedial measures; in addition, it may be determined that the Company violated the FCPA.

Other Litigation

In addition to the investigations discussed above, the Company is involved in other disputes, litigations, and legal proceedings. The Company intends to aggressively defend itself in these matters, and while there can be no assurances and the outcome of these matters is currently not determinable, the Company currently believes that none of these existing claims or proceedings are likely to have a material adverse effect on its financial position. Notwithstanding the foregoing, there are many uncertainties associated with any litigation and these matters 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 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, if any, which could result in the need to adjust the liability and record additional expenses.

The Company records an accrual for loss contingencies for legal proceedings when it believes that an unfavorable outcome is both (a) probable and (b) the amount or range of any possible loss is reasonably estimable. The Company has not recorded any accrual for loss contingencies associated with such legal proceedings or the investigations discussed above. However, the Company has accrued for unrecognized tax benefits in connection with certain tax-related proceedings as described in further detail in Note 12, Incomes Taxes.

Subsequent Events

BTI Acquisition

On April 1, 2016, the Company acquired BTI Systems Inc. (“BTI”), a provider of cloud and metro optical networking systems and software to content, cloud and service providers, for $65.0 million in cash (inclusive of the repayment of $23.9 million of certain outstanding BTI liabilities), subject to adjustments for working capital, cash on hand, and certain tax credits. Additionally, the Company assumed restricted stock units outstanding at closing. The Company believes that this acquisition will allow the Company to accelerate the delivery of open and automated packet optical transport solutions with integrated network management based on BTI Systems' proNX Service Manager and Juniper's Connectivity Services Director, as well as NorthStar Controller. The Company believes that, together, these products provide a unified management interface for multi-layer provisioning of end-to-end services across IP and optical networks.

Dividend Declaration

On April 28, 2016, the Company announced that it had declared a cash dividend of $0.10 per share of common stock payable on June 22, 2016 to stockholders of record as of the close of business on June 1, 2016.

Stock Repurchase Activities

Subsequent to March 31, 2016, through the filing of this Report, the Company repurchased 3.8 million shares of its common stock, for an aggregate of $88.0 million at an average purchase price of $23.16 per share, under the 2014 Stock Repurchase Program. Repurchases of 2.8 million shares were settled prior to the filing of this Report and the remaining shares will be settled after the filing date. Under the 2014 Stock Repurchase Program, the Company has $369.6 million authorized funds remaining as of the filing date. Purchases under the Company's stock repurchase program are subject to review of the circumstances in place at the time and will be made from time to time as permitted by securities laws and other legal requirements. This program may be discontinued at any time.

Summary of Significant Accounting Policies (Policies)

Recent accounting pronouncements

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. ASU-2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In March 2016, the FASB issued ASU No. 2016-07 (Topic 323) Investments—Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting ("ASU 2016-07"), which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. This update requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This update requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. ASU 2016-07 is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In March 2016, the FASB issued ASU No. 2016-06 (Topic 815) Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments ("ASU 2016-06"), which requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met. One of those criteria is that the economic characteristics and risks of the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contract (the “clearly and closely related” criterion). In addition, in March 2016, the FASB issued ASU No. 2016-05 (Topic 815), Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, ("ASU 2016-05"), which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-06 and ASU 2016-05 are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases ("ASU 2016-02"), which requires recognition of lease assets and lease liabilities on the balance sheet by the lessees for lease contracts with a lease term of more than twelve months. ASU 2016-02 should be applied on a modified retrospective basis and is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. Entities may choose a practical expedient, to estimate the fair value of certain equity securities that do not have readily determinable fair value. If the practical expedient is elected, these investments would be recorded at cost, less impairment and subsequently adjusted for observable price changes. The guidance also updates certain presentation and disclosure requirements. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is not permitted. The Company is currently evaluating the impact that ASU 2016-01will have on its Consolidated Financial Statements and disclosures.

In July 2015, the FASB issued ASU No. 2015-11 (Subtopic 330) - Simplifying the Measurement of Inventory ("ASU 2015-11"), which provides guidance to companies who account for inventory using either the first-in, first-out ("FIFO") or average cost methods. The guidance states that companies should measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard will not have a significant impact on the Company's Consolidated Financial Statements.

In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers (“ASU 2014-09”) which provides guidance for revenue recognition. This ASU affects all contracts that the Company enters into with customers to transfer goods and services or for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard's core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so, the Company will need to use additional judgment and estimates than under the existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of the new revenue standard from December 15, 2016 to December 15, 2017, with early adoption permitted as of annual reporting periods beginning after December 15, 2016. Accordingly, the ASU will be effective for the Company beginning fiscal year 2018. In addition, in March 2016, the FASB issued ASU No. 2016-08 (Topic 606) Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”), which clarifies the principal-versus-agent guidance in Topic 606 and requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, the FASB also issued ASU No. 2016-10 (Topic 606) Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”), which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. There are two transition methods available under the new standard, either cumulative effect or retrospective. ASU 2016-08 and ASU 2016-10 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements and disclosures.

Cash Equivalents and Investments (Tables)

Unrealized gains and losses and fair value of available-for-sale and trading securities

The following tables summarize the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of March 31, 2016 and December 31, 2015 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of March 31, 2016
Fixed income securities:
Asset-backed securities	$	324.5	$	0.2	$	(0.1	)	$	324.6
Certificates of deposit	18.1		—		—			18.1
Commercial paper	6.7		—		—			6.7
Corporate debt securities	869.0		1.7		(1.1		)	869.6
Foreign government debt securities	22.8		—		—			22.8
Government-sponsored enterprise obligations	200.0		0.1		—			200.1
U.S. government securities	336.2		0.2		(0.1		)	336.3
Total fixed income securities	1,777.3		2.2		(1.3		)	1,778.2
Money market funds	129.7		—		—			129.7
Mutual funds	6.0		0.1		—			6.1
Publicly-traded equity securities	8.8		0.1		(0.4		)	8.5
Total available-for-sale securities	1,921.8		2.4		(1.7		)	1,922.5
Trading securities in mutual funds^(*)	18.9		—		—			18.9
Total	$	1,940.7	$	2.4	$	(1.7	)	$	1,941.4

Reported as:
Cash equivalents	$	134.8	$	—	$	—		$	134.8
Restricted investments	35.7		0.1		—			35.8
Short-term investments	599.7		0.3		(0.6		)	599.4
Long-term investments	1,170.5		2.0		(1.1		)	1,171.4
Total	$	1,940.7	$	2.4	$	(1.7	)	$	1,941.4

________________________________


^(*)	Balance consists of the Company's non-qualified deferred compensation plan assets.



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2015
Fixed income securities:
Asset-backed securities	$	312.2	$	—	$	(0.5	)	$	311.7
Certificates of deposit	9.6		—		—			9.6
Commercial paper	17.7		—		—			17.7
Corporate debt securities	913.8		0.2		(2.6		)	911.4
Foreign government debt securities	16.5		—		—			16.5
Government-sponsored enterprise obligations	204.1		—		(0.4		)	203.7
U.S. government securities	278.0		—		(0.4		)	277.6
Total fixed income securities	1,751.9		0.2		(3.9		)	1,748.2
Money market funds	29.7		—		—			29.7
Mutual funds	6.1		0.1		—			6.2
Publicly-traded equity securities	8.7		0.8		(0.7		)	8.8
Total available-for-sale securities	1,796.4		1.1		(4.6		)	1,792.9
Trading securities in mutual funds^(*)	17.7		—		—			17.7
Total	$	1,814.1	$	1.1	$	(4.6	)	$	1,810.6

Reported as:
Cash equivalents	$	3.4	$	—	$	—		$	3.4
Restricted investments	35.8		0.1		—			35.9
Short-term investments	527.2		0.9		(1.0		)	527.1
Long-term investments	1,247.7		0.1		(3.6		)	1,244.2
Total	$	1,814.1	$	1.1	$	(4.6	)	$	1,810.6

________________________________


^(*)	Balance consists of the Company's non-qualified deferred compensation plan assets.

Maturities of fixed income securities

The following table presents the contractual maturities of the Company's total fixed income securities as of March 31, 2016 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Due in less than one year	$	606.7	$	0.3	$	(0.2	)	$	606.8
Due between one and five years	1,170.6		1.9		(1.1		)	1,171.4
Total	$	1,777.3	$	2.2	$	(1.3	)	$	1,778.2

Available-for-sale securities in unrealized loss position

The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of March 31, 2016 and December 31, 2015 (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, 2016
Fixed income securities:
Asset-backed securities⁽¹⁾	$	143.3	$	(0.1	)	$	19.5	$	—		$	162.8	$	(0.1	)
Certificates of deposit⁽²⁾	3.3		—			—		—			3.3		—
Corporate debt securities	312.2		(1.0		)	49.6		(0.2		)	361.8		(1.2		)
Foreign government debt securities⁽²⁾	13.0		—			—		—			13.0		—
Government-sponsored enterprise obligations⁽²⁾	59.0		—			—		—			59.0		—
U.S. government securities⁽²⁾	132.6		—			—		—			132.6		—
Total fixed income securities	663.4		(1.1		)	69.1		(0.2		)	732.5		(1.3		)
Publicly-traded equity securities	6.2		(0.4		)	—		—			6.2		(0.4		)
Total available-for-sale securities	$	669.6	$	(1.5	)	$	69.1	$	(0.2	)	$	738.7	$	(1.7	)

________________________________

⁽¹⁾Balances greater than 12 months include investments that were in an immaterial unrealized loss position as of March 31, 2016.

⁽²⁾Balances less than 12 months include investments that were in an immaterial unrealized loss position as of March 31, 2016.



	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, 2015
Fixed income securities:
Asset-backed securities	$	274.2	$	(0.4	)	$	30.8	$	(0.1	)	$	305.0	$	(0.5	)
Certificates of deposit^(*)	3.3		—			—		—			$	3.3	—
Corporate debt securities	687.9		(2.3		)	58.9		(0.3		)	746.8		(2.6		)
Foreign government debt securities^(*)	9.5		—			—		—			9.5		—
Government-sponsored enterprise obligations	185.3		(0.4		)	—		—			185.3		(0.4		)
U.S. government securities	259.3		(0.4		)	—		—			259.3		(0.4		)
Total fixed income securities	1,419.5		(3.5		)	89.7		(0.4		)	1,509.2		(3.9		)
Publicly-traded equity securities	2.1		(0.7		)	—		—			2.1		(0.7		)
Total available-for-sale securities	$	1,421.6	$	(4.2	)	$	89.7	$	(0.4	)	$	1,511.3	$	(4.6	)

________________________________


^(*)	Balances less than 12 months include investments that were in an immaterial unrealized loss position as of December 31, 2015.

Fair Value Measurements (Tables)

Assets measured at fair value on a recurring basis

The following tables provide a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets (in millions):



	Fair Value Measurements at March 31, 2016 Using:
	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs			Significant Other Unobservable Remaining Inputs
	(Level 1)		(Level 2)			(Level 3)		Total
Assets measured at fair value:
Available-for-sale securities:
Asset-backed securities	$	—	$	324.6		$	—	$	324.6
Certificates of deposit	—		18.1			—		18.1
Commercial paper	—		6.7			—		6.7
Corporate debt securities	—		869.6			—		869.6
Foreign government debt securities	—		22.8			—		22.8
Government-sponsored enterprise obligations	—		200.1			—		200.1
Money market funds⁽¹⁾	129.7		—			—		129.7
Mutual funds⁽²⁾	6.1		—			—		6.1
Publicly-traded equity securities	8.5		—			—		8.5
U.S. government securities	288.2		48.1			—		336.3
Total available-for-sale securities	432.5		1,490.0			—		1,922.5
Trading securities in mutual funds⁽³⁾	18.9		—			—		18.9
Privately-held debt and redeemable preferred stock securities	—		—			68.6		68.6
Derivative assets:
Foreign exchange contracts	—		3.4			—		3.4
Total assets measured at fair value	$	451.4	$	1,493.4		$	68.6	$	2,013.4
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange contracts	$	—	$	(0.6	)	$	—	$	(0.6	)
Total liabilities measured at fair value	$	—	$	(0.6	)	$	—	$	(0.6	)

Total assets measured at fair value, reported as:
Cash equivalents	$	100.0	$	34.8		$	—	$	134.8
Restricted investments	35.8		—			—		35.8
Short-term investments	161.2		438.2			—		599.4
Long-term investments	154.4		1,017.0			—		1,171.4
Prepaid expenses and other current assets	—		3.4			—		3.4
Other long-term assets	—		—			68.6		68.6
Total assets measured at fair value	$	451.4	$	1,493.4		$	68.6	$	2,013.4

Total liabilities measured at fair value, reported as:
Other accrued liabilities	$	—	$	(0.6	)	$	—	$	(0.6	)
Total liabilities measured at fair value	$	—	$	(0.6	)	$	—	$	(0.6	)

________________________________


⁽¹⁾	Balance includes $29.7 million of restricted investments measured at fair market value related to the Company's D&O Trust and acquisition-related escrows.


⁽²⁾	Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.


⁽³⁾	Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.



	Fair Value Measurements at December 31, 2015 Using:
	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs			Significant Other Unobservable Remaining Inputs
	(Level 1)		(Level 2)			(Level 3)		Total
Assets measured at fair value:
Available-for-sale securities:
Asset-backed securities	$	—	$	311.7		$	—	$	311.7
Certificates of deposit	—		9.6			—		9.6
Commercial paper	—		17.7			—		17.7
Corporate debt securities	—		911.4			—		911.4
Foreign government debt securities	—		16.5			—		16.5
Government-sponsored enterprise obligations	—		203.7			—		203.7
Money market funds⁽¹⁾	29.7		—			—		29.7
Mutual funds⁽²⁾	6.2		—			—		6.2
Publicly-traded equity securities	8.8		—			—		8.8
U.S. government securities	247.3		30.3			—		277.6
Total available-for-sale securities	292.0		1,500.9			—		1,792.9
Trading securities in mutual funds⁽³⁾	17.7		—			—		17.7
Privately-held debt and redeemable preferred stock securities	—		—			60.2		60.2
Derivative assets:
Foreign exchange contracts	—		0.4			—		0.4
Total assets measured at fair value	$	309.7	$	1,501.3		$	60.2	$	1,871.2
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange contracts	$	—	$	(1.3	)	$	—	$	(1.3	)
Total liabilities measured at fair value	$	—	$	(1.3	)	$	—	$	(1.3	)

Total assets measured at fair value, reported as:
Cash equivalents	$	—	$	3.4		$	—	$	3.4
Restricted investments	35.9		—			—		35.9
Short-term investments	108.2		418.9			—		527.1
Long-term investments	165.6		1,078.6			—		1,244.2
Prepaid expenses and other current assets	—		0.4			—		0.4
Other long-term assets	—		—			60.2		60.2
Total assets measured at fair value	$	309.7	$	1,501.3		$	60.2	$	1,871.2

Total liabilities measured at fair value, reported as:
Other accrued liabilities	$	—	$	(1.3	)	$	—	$	(1.3	)
Total liabilities measured at fair value	$	—	$	(1.3	)	$	—	$	(1.3	)

________________________________


⁽¹⁾	Balance includes $29.7 million of restricted investments measured at fair market value related to the Company's D&O Trust and acquisition-related escrows.


⁽²⁾	Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.


⁽³⁾	Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.

Derivative Instruments (Tables)

Derivative instruments

The notional amount of the Company's foreign currency derivatives are summarized as follows (in millions):



	As of
	March 31, 2016		December 31, 2015
Cash flow hedges	$	125.6	$	116.8
Non-designated derivatives	21.3		71.8
Total	$	146.9	$	188.6

Goodwill and Purchased Intangible Assets (Tables)

Goodwill

The following table presents goodwill activity during the three months ended March 31, 2016 (in millions):



Balance as of December 31, 2015	$	2,981.3
Other	—
Balance as of March 31, 2016	$	2,981.3

Finite-lived intangible assets by major class

The Company’s purchased intangible assets were as follows (in millions):



	Gross		Accumulated Amortization			Accumulated Impairments and Other Charges			Net
As of March 31, 2016
Intangible assets with finite lives:
Technologies and patents	$	567.7	$	(494.4	)	$	(49.9	)	$	23.4
Customer contracts, support agreements, and related relationships	78.1		(68.4		)	(2.8		)	6.9
Other	1.1		(0.8		)	—			0.3
Total purchased intangible assets	$	646.9	$	(563.6	)	$	(52.7	)	$	30.6

As of December 31, 2015
Intangible assets with finite lives:
Technologies and patents	$	567.7	$	(491.8	)	$	(49.9	)	$	26.0
Customer contracts, support agreements, and related relationships	78.1		(67.8		)	(2.8		)	7.5
Other	1.1		(0.7		)	—			0.4
Total purchased intangible assets	$	646.9	$	(560.3	)	$	(52.7	)	$	33.9

Amortization of intangible assets included in the Condensed Consolidated Statements of Operations

The following table presents the amortization of intangible assets included in the Condensed Consolidated Statements of Operations (in millions):



	Three Months Ended March 31,
	2016		2015
Cost of revenues	$	2.4	$	10.8
Operating expenses:
Sales and marketing	0.5		0.8
General and administrative	0.4		0.3
Total operating expenses	0.9		1.1
Total	$	3.3	$	11.9

Estimated future amortization expense of purchased intangible assets with finite lives

As of March 31, 2016, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):



Years Ending December 31,	Amount
Remainder of 2016	$	8.3
2017	7.0
2018	5.1
2019	4.9
2020	4.8
Thereafter	0.5
Total	$	30.6

Other Financial Information (Tables)

Inventories

Total inventories consisted of the following (in millions):



	As of
	March 31, 2016		December 31, 2015
Production materials	$	76.8	$	61.9
Finished goods	21.3		13.1
Inventories	$	98.1	$	75.0

Other long-term assets

Other long-term assets consisted of the following (in millions):



	As of
	March 31, 2016		December 31, 2015
Privately-held investments	$	107.8	$	102.4
Licensed software	6.7		7.1
Federal income tax receivable	43.7		28.9
Customer financing receivable	2.2		—
Inventory	7.2		8.4
Prepaid costs, deposits, and other^(*)	76.3		99.2
Promissory note in connection with the sale of Junos Pulse	132.9		132.9
Other long-term assets	$	376.8	$	378.9

________________________________


^(*)	During the three months ended March 31, 2016, the Company adopted ASU 2015-03. The balance as of December 31, 2015 was retrospectively adjusted to conform to the current-year presentation.

Warranties

Changes in the Company’s warranty reserve during the three months ended March 31, 2016 were as follows (in millions):



Balance as of December 31, 2015	$	28.4
Provisions made during the period	6.6
Actual costs incurred during the period	(6.6		)
Balance as of March 31, 2016	$	28.4

Deferred revenue

Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions):



	As of
	March 31, 2016			December 31, 2015
Deferred product revenue:
Undelivered product commitments and other product deferrals	$	205.6		$	210.1
Distributor inventory and other sell-through items	102.8			81.8
Deferred gross product revenue	308.4			291.9
Deferred cost of product revenue	(47.3		)	(51.6		)
Deferred product revenue, net	261.1			240.3
Deferred service revenue	998.9			927.8
Total	$	1,260.0		$	1,168.1
Reported as:
Current	$	893.3		$	822.9
Long-term	366.7			345.2
Total	$	1,260.0		$	1,168.1

Other income (expense), net

Other expense, net, consisted of the following (in millions):



	Three Months Ended March 31,
	2016			2015
Interest income	$	7.9		$	3.8
Interest expense	(22.5		)	(18.5		)
(Loss) gain on investments	(5.4		)	0.6
Other	(2.2		)	(1.7		)
Other expense, net	$	(22.2	)	$	(15.8	)

Debt and Financing (Tables)

Long-term debt

The following table summarizes the Company's long-term debt (in millions, except percentages):



	As of March 31, 2016
	Amount			Effective Interest Rates
Senior Notes:
3.125% fixed-rate notes, due February 2019	$	350.0		3.36	%
3.300% fixed-rate notes, due June 2020	300.0			3.47	%
4.600% fixed-rate notes, due March 2021	300.0			4.69	%
4.500% fixed-rate notes, due March 2024, issued March 2014	350.0			4.63	%
4.500% fixed-rate notes, due March 2024, issued February 2016	150.0			4.87	%
4.350% fixed-rate notes, due June 2025	300.0			4.47	%
5.950% fixed-rate notes, due March 2041	400.0			6.03	%
Total senior notes	2,150.0
Unaccreted discount and debt issuance costs	(18.2		)
Total	$	2,131.8

Equity (Tables)

Components of accumulated other comprehensive income, net of taxes

The components of accumulated other comprehensive loss, net of related taxes, during the three months ended March 31, 2016 were as follows (in millions):



	Unrealized Gains (Losses) on Available-for- Sale Securities⁽¹⁾		Unrealized Gains (Losses) on Cash Flow Hedges⁽²⁾			Foreign Currency Translation Adjustments			Total
Balance as of December 31, 2015	$	17.0	$	(1.3	)	$	(34.9	)	$	(19.2	)
Other comprehensive gain before reclassifications	4.3		2.5			3.7			10.5
Amount reclassified from accumulated other comprehensive loss	0.1		1.1			—			1.2
Other comprehensive gains, net	4.4		3.6			3.7			11.7
Balance as of March 31, 2016	$	21.4	$	2.3		$	(31.2	)	$	(7.5	)

________________________________


⁽¹⁾	The reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2016 for realized losses on available-for-sale securities of $0.1 million are included in other expense, net, in the Condensed Consolidated Statements of Operations.

⁽²⁾

The reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2016 for realized losses on cash flow hedges are included within cost of revenues of $0.3 million, research and development of $0.4 million, sales and marketing of $0.3 million, and general and administrative of $0.1 million for which the hedged transactions relate in the Condensed Consolidated Statements of Operations.

Employee Benefit Plans (Tables)

Schedule of share-based compensation, stock options, activity

The following table summarizes the Company’s stock option activity and related information as of and for the three months ended March 31, 2016 (in millions, except for per share amounts and years):



	Outstanding Options
	Number of Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance as of December 31, 2015	3.6		$	27.52
Exercised	(0.4	)	14.50
Balance as of March 31, 2016	3.2		$	29.23	2.0	$	9.2

As of March 31, 2016:
Vested and expected-to-vest options	3.2		$	29.27	2.0	$	9.1
Exercisable options	3.1		$	30.18	1.8	$	6.7

Schedule of nonvested share activity

The following table summarizes the Company’s RSU, RSA, and PSA activity and related information as of and for the three months ended March 31, 2016 (in millions, except per share amounts and years):



	Outstanding RSUs, RSAs, and PSAs
	Number of Shares		Weighted Average Grant-Date Fair Value per Share		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance as of December 31, 2015	18.6		$	22.71
RSUs granted ⁽¹⁾⁽³⁾	6.1		24.97
PSAs granted⁽²⁾⁽³⁾	0.7		23.70
RSUs vested	(3.5	)	21.73
RSAs vested	(0.6	)	21.02
PSAs vested	(0.7	)	21.61
RSUs canceled	(0.3	)	22.29
PSAs canceled	(0.4	)	21.69
Balance as of March 31, 2016	19.9		$	23.73	1.5	$	506.9

________________________________


⁽¹⁾	Includes service-based and market-based RSUs granted under the 2015 Plan according to its terms.

⁽²⁾

The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.7 million shares.

⁽³⁾

The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. On January 27, 2016, the Company declared a cash dividend of $0.10 per share of common stock, or $38.3 million in the aggregate, to stockholders of record on March 1, 2016, which was paid on March 22, 2016.

Estimates of weighted average fair value per share under employee purchase plan and stock option plan

The weighted-average assumptions used and the resulting estimates of fair value for ESPP and market-based RSUs during the three months ended March 31, 2016 and March 31, 2015 were as follows:



	Three Months Ended March 31,
	2016	2015
ESPP ⁽¹⁾:
Volatility	35%	30%
Risk-free interest rate	0.5%	0.1%
Expected life (years)	0.5	0.5
Dividend yield	1.7%	1.9%
Weighted-average fair value per share	$5.95	$5.23

Market-based RSUs ⁽²⁾:
Volatility	36%	34%
Risk-free interest rate	1.2%	1.4%
Dividend yield	1.7%	1.8%
Weighted-average fair value per share	$14.71	$14.97

________________________________


⁽¹⁾	The Black-Scholes-Merton option-pricing model is utilized to estimate the fair value of shares issuable under the ESPP.

⁽²⁾

The fair value of market-based RSUs utilizes a Monte Carlo valuation methodology. The Company amortizes the fair value of these awards over the derived service period adjusted for estimated forfeitures for each separately vesting tranche of the award. Provided that the derived service is rendered, the total fair value of the market-based RSUs at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria.

Schedule of employee service share-based compensation, allocation of recognized period costs

Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Condensed Consolidated Statements of Operations (in millions):



	Three Months Ended March 31,
	2016		2015
Cost of revenues - Product	$	1.9	$	1.7
Cost of revenues - Service	3.5		3.4
Research and development	32.3		30.7
Sales and marketing	9.4		5.8
General and administrative	4.7		4.4
Total	$	51.8	$	46.0

Disclosure of share-based compensation arrangements by share-based payment award

The following table summarizes share-based compensation expense by award type (in millions):



	Three Months Ended March 31,
	2016		2015
Stock options	$	1.2	$	2.2
RSUs, RSAs, and PSAs	46.8		40.6
ESPP	3.8		3.2
Total	$	51.8	$	46.0

Schedule of unrecognized compensation cost, nonvested awards

The following table presents unrecognized compensation cost, adjusted for estimated forfeitures, recognized over a weighted-average period related to unvested stock options, RSUs, RSAs, and PSAs as of March 31, 2016 (in millions, except years):



	Unrecognized Compensation Cost		Weighted Average Period (In Years)
Stock options	$	0.9	0.4
RSUs, RSAs, and PSAs	$	279.4	2.1

Segments (Tables)

Financial information for each segment

The following table presents net revenues by product and service (in millions):



	Three Months Ended March 31,
	2016		2015
Routing	$	504.1	$	504.8
Switching	175.5		166.5
Security	73.4		92.8
Total product	753.0		764.1

Total service	344.9		303.3
Total	$	1,097.9	$	1,067.4

Net revenues by geographic region

The Company attributes revenues to geographic region based on the customer’s ship-to location. The following table presents net revenues by geographic region (in millions):



	Three Months Ended March 31,
	2016		2015
Americas:
United States	$	579.0	$	533.5
Other	49.2		55.5
Total Americas	628.2		589.0
Europe, Middle East, and Africa	285.4		303.8
Asia Pacific	184.3		174.6
Total	$	1,097.9	$	1,067.4

Long-lived Assets by Geographic Areas

The following table presents geographic information for property and equipment, net and purchased intangible assets, net (in millions):



	As of
	March 31, 2016		December 31, 2015
United States	$	946.2	$	925.5
International	131.7		129.4
Property and equipment, net and purchased intangible assets, net	$	1,077.9	$	1,054.9

Income Taxes (Tables)

Schedule of effective income tax rate reconciliation

The effective tax rates for the three months ended March 31, 2016 and March 31, 2015 include the tax benefit of the following discrete items (in millions):



	Three Months Ended March 31,
	2016			2015
Loss on privately-held equity investments	$	(1.9	)	$	—
Restructuring charges	$	—		$	(1.3	)

Net Income Per Share (Tables)

Schedule of earnings per share, basic and diluted

The Company computed basic and diluted net income per share attributable to Juniper Networks common stockholders as follows (in millions, except per share amounts):



	Three Months Ended March 31,
	2016		2015
Numerator:
Net income	$	91.4	$	80.2
Denominator:
Weighted-average shares used to compute basic net income per share	383.2		407.1
Dilutive effect of employee stock awards	6.1		7.1
Weighted-average shares used to compute diluted net income per share	389.3		414.2
Net income per share attributable to Juniper Networks common stockholders:
Basic	$	0.24	$	0.20
Diluted	$	0.23	$	0.19

Anti-dilutive:
Potential anti-dilutive shares	4.0		6.4

Basis of Presentation (Details) (Accounting Standards Update 2015-03 [Member], USD $)

In Millions, unless otherwise specified

Dec. 31, 2015

Long-term Debt [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Deferred finance costs, net

$ 11.3

Other Assets [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Deferred finance costs, net

$ (11.3)

Cash Equivalents and Investments - Available-For-Sale and Trading Securities (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Available-for-sale securities:

Available-for-sale securities, amortized cost

$ 1,921.8

$ 1,796.4

Available-for-sale securities, gross unrealized gains

2.4

1.1

Available-for-sale securities, gross unrealized losses

(1.7)

(4.6)

Available-for-sale securities, estimated fair value

1,922.5

1,792.9

Trading securities:

Trading securities, amortized cost

18.9

17.7

Trading securities, gross unrealized gains

0

Trading securities, gross unrealized losses

0

Trading securities, estimated fair value

18.9

17.7

Available-for-sale and Trading Securities [Abstract]

Total investments, amortized cost

1,940.7

1,814.1

Total investments, gross unrealized gains

2.4

1.1

Total investments, gross unrealized losses

(1.7)

(4.6)

Total investments, estimated fair value

1,941.4

1,810.6

Cash equivalents [Member]

Available-for-sale and Trading Securities [Abstract]

Total investments, amortized cost

134.8

3.4

Total investments, gross unrealized gains

0

Total investments, gross unrealized losses

0

Total investments, estimated fair value

134.8

3.4

Restricted investments [Member]

Available-for-sale and Trading Securities [Abstract]

Total investments, amortized cost

35.7

35.8

Total investments, gross unrealized gains

0.1

Total investments, gross unrealized losses

0

Total investments, estimated fair value

35.8

35.9

Short-term investments [Member]

Available-for-sale and Trading Securities [Abstract]

Total investments, amortized cost

599.7

527.2

Total investments, gross unrealized gains

0.3

0.9

Total investments, gross unrealized losses

(0.6)

(1.0)

Total investments, estimated fair value

599.4

527.1

Long-term investments [Member]

Available-for-sale and Trading Securities [Abstract]

Total investments, amortized cost

1,170.5

1,247.7

Total investments, gross unrealized gains

2.0

0.1

Total investments, gross unrealized losses

(1.1)

(3.6)

Total investments, estimated fair value

1,171.4

1,244.2

Debt Securities [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

1,777.3

1,751.9

Available-for-sale securities, gross unrealized gains

2.2

0.2

Available-for-sale securities, gross unrealized losses

(1.3)

(3.9)

Available-for-sale securities, estimated fair value

1,778.2

1,748.2

Asset-backed securities [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

324.5

312.2

Available-for-sale securities, gross unrealized gains

0.2

0

Available-for-sale securities, gross unrealized losses

(0.1)

(0.5)

Available-for-sale securities, estimated fair value

324.6

311.7

Certificates of deposit [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

18.1

9.6

Available-for-sale securities, gross unrealized gains

0

Available-for-sale securities, gross unrealized losses

0

Available-for-sale securities, estimated fair value

18.1

9.6

Commercial paper [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

6.7

17.7

Available-for-sale securities, gross unrealized gains

0

Available-for-sale securities, gross unrealized losses

0

Available-for-sale securities, estimated fair value

6.7

17.7

Corporate debt securities [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

869.0

913.8

Available-for-sale securities, gross unrealized gains

1.7

0.2

Available-for-sale securities, gross unrealized losses

(1.1)

(2.6)

Available-for-sale securities, estimated fair value

869.6

911.4

Foreign government debt securities [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

22.8

16.5

Available-for-sale securities, gross unrealized gains

0

Available-for-sale securities, gross unrealized losses

0

Available-for-sale securities, estimated fair value

22.8

16.5

Government-sponsored enterprise obligations [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

200.0

204.1

Available-for-sale securities, gross unrealized gains

0.1

0

Available-for-sale securities, gross unrealized losses

0

(0.4)

Available-for-sale securities, estimated fair value

200.1

203.7

US government securities [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

336.2

278.0

Available-for-sale securities, gross unrealized gains

0.2

0

Available-for-sale securities, gross unrealized losses

(0.1)

(0.4)

Available-for-sale securities, estimated fair value

336.3

277.6

Money market funds [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

129.7

29.7

Available-for-sale securities, gross unrealized gains

0

Available-for-sale securities, gross unrealized losses

0

Available-for-sale securities, estimated fair value

129.7

29.7

Mutual funds [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

6.0

6.1

Available-for-sale securities, gross unrealized gains

0.1

Available-for-sale securities, gross unrealized losses

0

Available-for-sale securities, estimated fair value

6.1

6.2

Publicly-traded equity securities [Member]

Available-for-sale securities:

Available-for-sale securities, amortized cost

8.8

8.7

Available-for-sale securities, gross unrealized gains

0.1

0.8

Available-for-sale securities, gross unrealized losses

(0.4)

(0.7)

Available-for-sale securities, estimated fair value

$ 8.5

$ 8.8

Cash Equivalents and Investments - Maturities of Fixed Income Investments (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Schedule of Fixed Income Securities Maturities [Abstract]

Amortized cost due within one year

$ 606.7

Gross unrealized gains due within one year

0.3

Gross unrealized losses due within one year

(0.2)

Estimated fair value due within one year

606.8

Amortized cost due between one and five years

1,170.6

Gross unrealized gains due between one and five years

1.9

Gross unrealized losses due between one and five year

(1.1)

Estimated fair value due between one and five year

1,171.4

Total investments, amortized cost

1,777.3

Gross Unrealized Gains

2.2

Gross Unrealized Losses

(1.3)

Total investments, estimated fair value

$ 1,778.2

Cash Equivalents, and Investments, Narrative (Details) (USD $)

3 Months Ended

Mar. 31, 2016

Investment

Mar. 31, 2015

Dec. 31, 2015

Investment

Cash Equivalents and Investments [Abstract]

Total investments in unrealized loss position

348

682

Privately-held investments

$ 107,800,000

$ 102,400,000

Privately held investments at fair value

68,600,000

60,200,000

Unrealized gain (loss) on privately-held debt securities

0

Other than temporary impairment of cost method investments

$ 5,100,000

$ 0

Cash Equivalents and Investments - Unrealized Loss on Available-for-Sale Securities (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

$ 669.6

$ 1,421.6

Unrealized loss, less than 12 months

(1.5)

(4.2)

Fair value, 12 months or greater

69.1

89.7

Unrealized loss, 12 months or greater

(0.2)

(0.4)

Total fair value, available-for-sale investments in continuous unrealized loss position

738.7

1,511.3

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

(1.7)

(4.6)

Debt Securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

663.4

1,419.5

Unrealized loss, less than 12 months

(1.1)

(3.5)

Fair value, 12 months or greater

69.1

89.7

Unrealized loss, 12 months or greater

(0.2)

(0.4)

Total fair value, available-for-sale investments in continuous unrealized loss position

732.5

1,509.2

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

(1.3)

(3.9)

Asset-backed securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

143.3

274.2

Unrealized loss, less than 12 months

(0.1)

(0.4)

Fair value, 12 months or greater

19.5

30.8

Unrealized loss, 12 months or greater

0

(0.1)

Total fair value, available-for-sale investments in continuous unrealized loss position

162.8

305.0

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

(0.1)

(0.5)

Certificates of deposit [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

3.3

Unrealized loss, less than 12 months

0

Fair value, 12 months or greater

0

Unrealized loss, 12 months or greater

0

Total fair value, available-for-sale investments in continuous unrealized loss position

3.3

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

0

Corporate debt securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

312.2

687.9

Unrealized loss, less than 12 months

(1.0)

(2.3)

Fair value, 12 months or greater

49.6

58.9

Unrealized loss, 12 months or greater

(0.2)

(0.3)

Total fair value, available-for-sale investments in continuous unrealized loss position

361.8

746.8

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

(1.2)

(2.6)

Foreign government debt securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

13.0

9.5

Unrealized loss, less than 12 months

0

Fair value, 12 months or greater

0

Unrealized loss, 12 months or greater

0

Total fair value, available-for-sale investments in continuous unrealized loss position

13.0

9.5

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

0

Government-sponsored enterprise obligations [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

59.0

185.3

Unrealized loss, less than 12 months

0

(0.4)

Fair value, 12 months or greater

0

Unrealized loss, 12 months or greater

0

Total fair value, available-for-sale investments in continuous unrealized loss position

59.0

185.3

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

0

(0.4)

US government securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

132.6

259.3

Unrealized loss, less than 12 months

0

(0.4)

Fair value, 12 months or greater

0

Unrealized loss, 12 months or greater

0

Total fair value, available-for-sale investments in continuous unrealized loss position

132.6

259.3

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

0

(0.4)

Publicly-traded equity securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Fair value, less than 12 months

6.2

2.1

Unrealized loss, less than 12 months

(0.4)

(0.7)

Fair value, 12 months or greater

0

Unrealized loss, 12 months or greater

0

Total fair value, available-for-sale investments in continuous unrealized loss position

6.2

2.1

Total unrealized loss, available-for-sale investments in continuous unrealized loss position

$ (0.4)

$ (0.7)

Fair Value Measurements (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Dec. 31, 2015

Available-for-sale securities:

Available-for-sale securities

$ 1,922.5

$ 1,792.9

Trading securities:

Trading securities

18.9

17.7

Fair Value Measurements (Textuals)

Restricted investments

29.7

Asset-backed Securities [Member]

Available-for-sale securities:

Available-for-sale securities

324.6

311.7

Certificates of deposit [Member]

Available-for-sale securities:

Available-for-sale securities

18.1

9.6

Commercial paper [Member]

Available-for-sale securities:

Available-for-sale securities

6.7

17.7

Corporate debt securities [Member]

Available-for-sale securities:

Available-for-sale securities

869.6

911.4

Foreign government debt securities [Member]

Available-for-sale securities:

Available-for-sale securities

22.8

16.5

Government-sponsored enterprise obligations [Member]

Available-for-sale securities:

Available-for-sale securities

200.1

203.7

Money market funds [Member]

Available-for-sale securities:

Available-for-sale securities

129.7

29.7

Mutual funds [Member]

Available-for-sale securities:

Available-for-sale securities

6.1

6.2

Publicly-traded equity securities [Member]

Available-for-sale securities:

Available-for-sale securities

8.5

8.8

US government securities [Member]

Available-for-sale securities:

Available-for-sale securities

336.3

277.6

Privately-held debt and redeemable preferred stock securities [Member]

Available-for-sale securities:

Available-for-sale securities

1,778.2

1,748.2

Fair Value, Measurements, Recurring [Member]

Derivative assets:

Total assets measured at fair value

2,013.4

1,871.2

Liabilities measured at fair value:

Other accrued liabilities

(0.6)

(1.3)

Total liabilities measured at fair value

(0.6)

(1.3)

Cash equivalents

134.8

3.4

Restricted investments

35.8

35.9

Short-term investments

599.4

527.1

Long-term investments

1,171.4

1,244.2

Prepaid expenses and other current assets

3.4

0.4

Other long-term assets

68.6

60.2

Fair Value, Measurements, Recurring [Member] |
Foreign exchange contract [Member]

Derivative assets:

Foreign exchange contracts

3.4

0.4

Liabilities measured at fair value:

Derivative liabilities

(0.6)

(1.3)

Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]

Derivative assets:

Total assets measured at fair value

451.4

309.7

Liabilities measured at fair value:

Other accrued liabilities

0

Total liabilities measured at fair value

0

Cash equivalents

100.0

0

Restricted investments

35.8

35.9

Short-term investments

161.2

108.2

Long-term investments

154.4

165.6

Prepaid expenses and other current assets

0

Other long-term assets

0

Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Foreign exchange contract [Member]

Derivative assets:

Foreign exchange contracts

0

Liabilities measured at fair value:

Derivative liabilities

0

Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]

Derivative assets:

Total assets measured at fair value

1,493.4

1,501.3

Liabilities measured at fair value:

Other accrued liabilities

(0.6)

(1.3)

Total liabilities measured at fair value

(0.6)

(1.3)

Cash equivalents

34.8

3.4

Restricted investments

0

Short-term investments

438.2

418.9

Long-term investments

1,017.0

1,078.6

Prepaid expenses and other current assets

3.4

0.4

Other long-term assets

0

Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Foreign exchange contract [Member]

Derivative assets:

Foreign exchange contracts

3.4

0.4

Liabilities measured at fair value:

Derivative liabilities

(0.6)

(1.3)

Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]

Derivative assets:

Total assets measured at fair value

68.6

60.2

Liabilities measured at fair value:

Other accrued liabilities

0

Total liabilities measured at fair value

0

Cash equivalents

0

Restricted investments

0

Short-term investments

0

Long-term investments

0

Prepaid expenses and other current assets

0

Other long-term assets

68.6

60.2

Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Foreign exchange contract [Member]

Derivative assets:

Foreign exchange contracts

0

Liabilities measured at fair value:

Derivative liabilities

0

Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member]

Available-for-sale securities:

Available-for-sale securities

324.6

311.7

Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

324.6

311.7

Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member]

Available-for-sale securities:

Available-for-sale securities

18.1

9.6

Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

18.1

9.6

Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member]

Available-for-sale securities:

Available-for-sale securities

6.7

17.7

Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

6.7

17.7

Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member]

Available-for-sale securities:

Available-for-sale securities

869.6

911.4

Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

869.6

911.4

Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member]

Available-for-sale securities:

Available-for-sale securities

22.8

16.5

Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

22.8

16.5

Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member]

Available-for-sale securities:

Available-for-sale securities

200.1

203.7

Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

200.1

203.7

Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Money market funds [Member]

Available-for-sale securities:

Available-for-sale securities

129.7

29.7

Fair Value, Measurements, Recurring [Member] |
Money market funds [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

129.7

29.7

Fair Value, Measurements, Recurring [Member] |
Money market funds [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Money market funds [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member]

Available-for-sale securities:

Available-for-sale securities

6.1

6.2

Trading securities:

Trading securities

18.9

17.7

Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

6.1

6.2

Trading securities:

Trading securities

18.9

17.7

Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Trading securities:

Trading securities

0

Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Trading securities:

Trading securities

0

Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member]

Available-for-sale securities:

Available-for-sale securities

8.5

8.8

Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

8.5

8.8

Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
US government securities [Member]

Available-for-sale securities:

Available-for-sale securities

336.3

277.6

Fair Value, Measurements, Recurring [Member] |
US government securities [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

288.2

247.3

Fair Value, Measurements, Recurring [Member] |
US government securities [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

48.1

30.3

Fair Value, Measurements, Recurring [Member] |
US government securities [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member]

Available-for-sale securities:

Available-for-sale securities

1,922.5

1,792.9

Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member] |
Fair Value, Inputs, Level 1 [Member]

Available-for-sale securities:

Available-for-sale securities

432.5

292.0

Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member] |
Fair Value, Inputs, Level 2 [Member]

Available-for-sale securities:

Available-for-sale securities

1,490.0

1,500.9

Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member] |
Fair Value, Inputs, Level 3 [Member]

Available-for-sale securities:

Available-for-sale securities

0

Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member]

Trading securities:

Privately-held debt and redeemable preferred stock securities

68.6

60.2

Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member] |
Fair Value, Inputs, Level 1 [Member]

Trading securities:

Privately-held debt and redeemable preferred stock securities

0

Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member] |
Fair Value, Inputs, Level 2 [Member]

Trading securities:

Privately-held debt and redeemable preferred stock securities

0

Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member] |
Fair Value, Inputs, Level 3 [Member]

Trading securities:

Privately-held debt and redeemable preferred stock securities

68.6

60.2

Fair Value Measurements (Textuals)

Purchases of privately-held investments

$ 10.5

Fair Value Measurements - Narrative (Details) (USD $)

3 Months Ended

12 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Mar. 31, 2016

Fair Value, Inputs, Level 3 [Member]

Dec. 31, 2015

Fair Value, Inputs, Level 3 [Member]

Mar. 31, 2016

Fair Value, Inputs, Level 2 [Member]

Dec. 31, 2015

Fair Value, Inputs, Level 2 [Member]

Mar. 31, 2016

Debt Securities [Member]

Fair Value, Inputs, Level 3 [Member]

Fair Value, Measurements, Recurring [Member]

Mar. 31, 2016

Cost Method Investment, Privately Held Companies [Member]

Fair Value, Inputs, Level 3 [Member]

Fair Value, Measurements, Nonrecurring [Member]

Dec. 31, 2015

Cost Method Investment, Privately Held Companies [Member]

Fair Value, Inputs, Level 3 [Member]

Fair Value, Measurements, Nonrecurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Purchases of privately-held investments

$ 10,500,000

Short-term and Long-term debt, fair value

2,165,800,000

1,946,700,000

Note receivable, fair value

132,900,000

Privately held investment, fair value

0

5,100,000

Other than temporary impairment of cost method investments

$ 5,100,000

$ 0

$ 5,100,000

Derivative Instruments (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Derivatives, Fair Value [Line Items]

Notional amount of foreign currency derivatives

$ 146.9

$ 188.6

Cash flow hedges [Member]

Derivatives, Fair Value [Line Items]

Notional amount of foreign currency derivatives

125.6

116.8

Non-designated derivatives [Member]

Derivatives, Fair Value [Line Items]

Notional amount of foreign currency derivatives

$ 21.3

$ 71.8

Derivative Instruments, Cash Flow Hedges and Offsetting of Derivatives (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Derivatives, Fair Value [Line Items]

Maximum length of time hedged in cash flow hedge

1 year

Foreign exchange contract [Member] |
Cash flow hedging [Member]

Derivatives, Fair Value [Line Items]

Derivative instruments, gain (loss) recognized in other comprehensive income (loss), Effective portion

$ 3.0

$ (6.1)

Foreign exchange contract [Member] |
Cash flow hedging [Member] |
Operating expense [Member]

Derivatives, Fair Value [Line Items]

Derivative instruments, gain (loss) reclassified from accumulated OCI into operating expense, Effective portion

$ (1.3)

$ (3.0)

Derivative Instruments, Non-Designated Hedges (Details) (Foreign exchange contract [Member], USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Derivative Instruments, Gain (Loss) [Line Items]

Maturity period of non designated hedges derivatives

2 months

Other income (expense), net [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Net gain (loss) on non-designated derivative instruments

$ (1.3)

$ 2.1

Goodwill and Purchased Intangible Assets, Goodwill (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Goodwill [Roll Forward]

Balance as of December 31, 2015

$ 2,981.3

Other

0

Balance as of March 31, 2016

$ 2,981.3

Goodwill and Purchased Intangible Assets, Purchased Intangible Assets (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Purchased Intangible Assets [Line Items]

Finite-lived intangible assets, net

$ 30.6

Total purchased intangible assets, gross

646.9

Total purchased intangible assets, accumulated amortization

(563.6)

(560.3)

Total purchased intangible assets, impairments and other charges

(52.7)

Total purchased intangible assets, net

30.6

33.9

Technologies and patents [Member]

Purchased Intangible Assets [Line Items]

Finite-lived intangible assets, gross

567.7

Finite-lived intangible assets, accumulated amortization

(494.4)

(491.8)

Finite-lived intangible assets, impairments and other charges

(49.9)

Finite-lived intangible assets, net

23.4

26.0

Customer contracts, support agreements, and related relationships [Member]

Purchased Intangible Assets [Line Items]

Finite-lived intangible assets, gross

78.1

Finite-lived intangible assets, accumulated amortization

(68.4)

(67.8)

Finite-lived intangible assets, impairments and other charges

(2.8)

Finite-lived intangible assets, net

6.9

7.5

Other intangible assets [Member]

Purchased Intangible Assets [Line Items]

Finite-lived intangible assets, gross

1.1

Finite-lived intangible assets, accumulated amortization

(0.8)

(0.7)

Finite-lived intangible assets, impairments and other charges

0

Finite-lived intangible assets, net

$ 0.3

$ 0.4

Goodwill and Purchased Intangible Assets, Finite Lived Intangible Assets by Class (Details) (USD $)

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Acquired Finite-Lived Intangible Assets [Line Items]

Amortization of intangible assets

$ 3,300,000

$ 11,900,000

Acceleration of the end of life of certain intangible assets, finite-lived

0

5,600,000

Cost of Revenues [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Amortization of intangible assets

2,400,000

10,800,000

Sales and Marketing Expense [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Amortization of intangible assets

500,000

800,000

General and Administrative Expense [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Amortization of intangible assets

400,000

300,000

Operating expense [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Amortization of intangible assets

$ 900,000

$ 1,100,000

Goodwill and Purchased Intangible Assets, Estimated Future Amortization Expense Intangible Assets (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]

Remainder of 2016

$ 8.3

2017

7.0

2018

5.1

2019

4.9

2020

4.8

Thereafter

0.5

Finite-lived intangible assets, net

$ 30.6

Other Financial Information, Inventories, Net (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Other Financial Information [Abstract]

Production materials

$ 76.8

$ 61.9

Finished goods

21.3

13.1

Inventories

$ 98.1

$ 75.0

Other Financial Information, Other Long Term Assets (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

18 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Dec. 31, 2015

Oct. 1, 2014

Junos Pulse [Member]

Apr. 1, 2017

Junos Pulse [Member]

Scenario, Forecast [Member]

Other Financial Information [Line Items]

Privately-held investments

$ 107.8

$ 102.4

Licensed software

6.7

7.1

Federal income tax receivable

43.7

28.9

Customer financing receivable

2.2

0

Inventory

7.2

8.4

Prepaid costs, deposits, and other()

76.3

99.2

Promissory note in connection with the sale of Junos Pulse

132.9

125.0

Other long-term assets

376.8

378.9

Consideration

230.7

Cash Consideration

105.7

Working capital adjustment

19.3

Required minimum payment due on notes receivable

75.0

Interest income

$ 2.7

$ 1.6

Other Financial Information, Warranties (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Movement in Standard Product Warranty Accrual [Roll Forward]

Balance as of December 31, 2015

$ 28.4

Provisions made during the period

6.6

Adjustments related to pre-existing warranties

(6.6)

Balance as of March 31, 2016

$ 28.4

Other Financial Information, Deferred Revenue (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Deferred revenue:

Total deferred revenue

$ 1,260.0

$ 1,168.1

Reported as:

Current

893.3

822.9

Long-term

366.7

345.2

Total deferred revenue

1,260.0

1,168.1

Sales Revenue, Product, Net [Member]

Deferred revenue:

Undelivered product commitments and other product deferrals

205.6

210.1

Distributor inventory and other sell-through items

102.8

81.8

Deferred gross product revenue

308.4

291.9

Deferred cost of product revenue

(47.3)

(51.6)

Total deferred revenue

261.1

240.3

Reported as:

Total deferred revenue

261.1

240.3

Sales Revenue, Service, Net [Member]

Deferred revenue:

Total deferred revenue

998.9

927.8

Reported as:

Total deferred revenue

$ 998.9

$ 927.8

Other Financial Information, Other Income (Expense), Net (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Other Financial Information [Abstract]

Interest income

$ 7.9

$ 3.8

Interest expense

(22.5)

(18.5)

(Loss) gain on investments

(5.4)

0.6

Other

(2.2)

(1.7)

Other expense, net

$ (22.2)

$ (15.8)

Debt and Financing (Details) (USD $)

3 Months Ended

1 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Dec. 31, 2015

Mar. 31, 2016

Fixed Rate Note Due 2019 [Member]

Feb. 29, 2016

Fixed Rate Note Due 2019 [Member]

Mar. 31, 2016

Fixed rate note due 2020 [Member]

Mar. 31, 2015

Fixed rate note due 2020 [Member]

Mar. 31, 2016

Fixed rate note due 2020 [Member]

One Month Prior to Maturity [Member]

Mar. 31, 2016

Fixed rate note due 2020 [Member]

Three Months Prior to Maturity [Member]

Treasury Rate [Member]

Mar. 31, 2016

Fixed rate note due 2020 [Member]

On or After May 15, 2020 [Member]

Mar. 31, 2016

Fixed rate note due 2021 [Member]

Mar. 31, 2011

Fixed rate note due 2021 [Member]

Mar. 31, 2016

Fixed Rate Note Due 2024, Issued March 2014 [Member]

Mar. 31, 2016

Fixed Rate Note Due 2024, Issued February 2016 [Member]

Feb. 29, 2016

Fixed Rate Note Due 2024, Issued February 2016 [Member]

Mar. 31, 2016

Fixed rate note due 2025 [Member]

Mar. 31, 2015

Fixed rate note due 2025 [Member]

Mar. 31, 2016

Fixed rate note due 2025 [Member]

One Month Prior to Maturity [Member]

Treasury Rate [Member]

Mar. 31, 2016

Fixed rate note due 2025 [Member]

Three Months Prior to Maturity [Member]

Mar. 31, 2016

Fixed rate note due 2025 [Member]

On or After March 15, 2025 [Member]

Mar. 31, 2016

Fixed rate note due 2041 [Member]

Mar. 31, 2011

Fixed rate note due 2041 [Member]

Mar. 31, 2016

Other Fixed Rate Notes [Member]

Mar. 31, 2016

Fixed rate note due 2016 [Member]

Debt Instrument [Line Items]

Long-term debt, gross

$ 350,000,000

$ 300,000,000

$ 350,000,000

$ 150,000,000

$ 300,000,000

$ 400,000,000

Total senior notes

2,150,000,000

Unaccreted discount and debt issuance costs

(18,200,000)

Short-term and Long-term debt, net of discount

2,131,800,000

Short-term debt

0

299,900,000

Long-term debt

2,131,800,000

1,637,500,000

Effective interest rate

3.36%

3.47%

4.69%

4.63%

4.87%

4.47%

6.03%

Long-term debt, stated interest rate

3.125%

3.30%

4.60%

4.50%

4.35%

5.95%

3.10%

Redemption period

1 month

3 months

Redemption price

100.00%

Redemption discount rate, basis spread on variable rate

0.30%

0.375%

Redemption percent due to change in control

101.00%

Repayments of Long-term Debt

$ 300,000,000

$ 0

$ 300,000,000

Debt and Financing Revolving Credit Facility (Details) (Revolving Credit Facility [Member], USD $)

0 Months Ended

Jun. 27, 2014

Line of Credit Facility [Line Items]

Revolving credit facility limit

$ 500,000,000.0

Revolving credit facility, additional borrowing capacity

$ 200,000,000

Base Rate [Member] |
Minimum [Member]

Line of Credit Facility [Line Items]

Basis spread on variable rate

0.00%

Base Rate [Member] |
Maximum [Member]

Line of Credit Facility [Line Items]

Basis spread on variable rate

0.50%

Eurodollar [Member] |
Minimum [Member]

Line of Credit Facility [Line Items]

Basis spread on variable rate

0.90%

Eurodollar [Member] |
Maximum [Member]

Line of Credit Facility [Line Items]

Basis spread on variable rate

1.50%

Federal Funds Rate [Member]

Line of Credit Facility [Line Items]

Basis spread on variable rate

0.50%

ICE Benchmark Administration Settlement Rate [Member]

Line of Credit Facility [Line Items]

Basis spread on variable rate

1.00%

Debt and Financing Customer Financing Arrangements (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Dec. 31, 2015

Debt Instrument [Line Items]

Sale of receivable

$ 4.9

$ 47.1

Proceeds from sale and collection of receivables

1.7

60.0

Receivables from sale of receivables

$ 4.4

$ 1.2

Minimum [Member]

Debt Instrument [Line Items]

Number of days due from receivable

30 days

Maximum [Member]

Debt Instrument [Line Items]

Number of days due from receivable

90 days

Equity, Cash Dividends on Shares of Common Stock (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

0 Months Ended

3 Months Ended

Mar. 22, 2016

Jan. 27, 2016

Mar. 31, 2016

Mar. 31, 2015

Stockholders' Equity Note [Abstract]

Cash dividends declared per common stock (in dollars per share)

$ 0.1

$ 0.10

Common stock dividends paid

$ 38.3

Equity, Stock Repurchase Activities (Details) (USD $)

Share data in Millions, except Per Share data, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Feb. 28, 2014

Mar. 31, 2016

2014 Stock Repurchase Program [Member]

Jul. 31, 2015

2014 Stock Repurchase Program [Member]

Oct. 31, 2014

2014 Stock Repurchase Program [Member]

Feb. 28, 2014

2014 Stock Repurchase Program [Member]

Accelerated Share Repurchases [Line Items]

Stock repurchase program, authorized amount

$ 2,100,000,000

$ 3,900,000,000

$ 1,200,000,000

Additional amount authorized under Stock Repurchase Plan

500,000,000

1,300,000,000

Stock repurchase program, remaining authorized repurchase amount

457,500,000

Stock repurchased and retired (in shares)

3.1

17.4

Common stock repurchased under stock repurchase program average purchase price (in dollars per share)

$ 23.89

$ 23.05

Common stock repurchased and retired under stock repurchase program, value

$ 75,000,000

$ 400,000,000

Equity, Components of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward]

Balance as of December 31, 2015

$ (19.2)

Other comprehensive gain before reclassifications

10.5

Amount reclassified from accumulated other comprehensive income

1.2

Other comprehensive income (loss), net of tax

11.7

(15.4)

Balance as of March 31, 2016

(7.5)

Cost of revenues

407.0

410.1

Sales and marketing

231.8

220.2

General and administrative

59.4

55.2

Research and development expense

251.0

248.7

Other expense, net

(22.2)

(15.8)

Unrealized Gains (Losses) on Available-for- Sale Securities

Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward]

Balance as of December 31, 2015

17.0

Other comprehensive gain before reclassifications

4.3

Amount reclassified from accumulated other comprehensive income

0.1

Other comprehensive income (loss), net of tax

4.4

Balance as of March 31, 2016

21.4

Other expense, net

0.1

Unrealized Gains (Losses) on Cash Flow Hedges

Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward]

Balance as of December 31, 2015

(1.3)

Other comprehensive gain before reclassifications

2.5

Amount reclassified from accumulated other comprehensive income

1.1

Other comprehensive income (loss), net of tax

3.6

Balance as of March 31, 2016

2.3

Cost of revenues

0.3

Sales and marketing

0.3

General and administrative

0.1

Research and development expense

0.4

Foreign Currency Translation Adjustments

Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward]

Balance as of December 31, 2015

(34.9)

Other comprehensive gain before reclassifications

3.7

Amount reclassified from accumulated other comprehensive income

0

Other comprehensive income (loss), net of tax

3.7

Balance as of March 31, 2016

$ (31.2)

Employee Benefit Plans (Details) (USD $)

3 Months Ended

Mar. 31, 2016

Dec. 31, 2015

Mar. 31, 2016

Equity incentive plan 2015 [Member]

May 19, 2015

Equity incentive plan 2015 [Member]

May 19, 2015

Equity Incentive Plan 2015, 2006, and 1996 [Member]

Mar. 31, 2016

Equity Incentive Plan 2015 and 2006 [Member]

Mar. 31, 2016

Equity Incentive Plan 1996 [Member]

Mar. 31, 2016

Equity Incentive Plan 1996 and 2006 [Member]

Mar. 31, 2016

Employee stock purchase plan 2008 [Member]

Mar. 31, 2016

Employee Stock Purchase Plan 2008 Additional Authorization [Member]

Share-Based Compensation Plans

Number of shares in authorized

38,000,000

Maximum additional shares expire unexercised, under 1996 and 2000 plan

29,000,000

Number of shares outstanding

22,100,000

0

Number of shares available for future issuance

23,600,000

0

6,300,000

Common stock, capital shares reserved for future issuance

26,000,000

7,000,000

Share-based compensation arrangement by share-based payment award, discount from market price

15.00%

Periodic payroll deduction - percentage of base salary

10.00%

Maximum purchase of common stock, shares

6,000

Share-based compensation arrangement by share-based payment award, offering period

12 months

Maximum purchase of common stock, value

$ 25,000

Share-based compensation arrangement by share-based payment award, expiration period

1 year

Common stock, shares, issued

386,300,000

384,000,000

19,700,000

Outstanding stock options, restricted stock units, and restricted stock awards from awards assumed (in shares)

1,000,000

Number of Shares

Balance as of December 31, 2015 (in shares)

3,600,000

Exercised (in shares)

(400,000)

Balance as of March 31, 2016 (in shares)

3,200,000

Weighted Average Exercise Price per Share

Balance as of December 31, 2015 (in dollars per share)

$ 27.52

Exercised (in dollars per share)

$ 14.50

Balance as of March 31, 2016 (in dollars per share)

$ 29.23

Weighted average remaining contractual term at March 31, 2016

2 years

Aggregate intrinsic value at March 31, 2016

9,200,000

Vested or expected-to-vest options at March 31, 2016 (in shares)

3,200,000

Vested or expected-to-vest options, weighted average exercise price at March 31, 2016 (in dollars per share)

$ 29.27

Vested and expected-to-vest options, weighted average remaining contractual term at March 31, 2016

2 years

Vested or expected-to-vest options, aggregate intrinsic value at March 31, 2016

9,100,000

Exercisable options at March 31, 2016 (in shares)

3,100,000

Exercisable options, weighted average exercise price at March 31, 2016 (in dollars per share)

$ 30.18

Exercisable options, weighted average remaining contractual term at March 31, 2016

1 year 9 months 18 days

Exercisable options, aggregate intrinsic value at March 31, 2016

6,700,000

Share price (in dollars per share)

$ 25.51

Pre-tax intrinsic value of options exercised

$ 3,900,000

Employee Benefit Plans, Share Based Compensation, Equity Instruments Other Than Options (Details) (USD $)

In Millions, except Share data, unless otherwise specified

0 Months Ended

3 Months Ended

Mar. 22, 2016

Mar. 31, 2016

Employee stock purchase plan 2008 [Member]

Mar. 31, 2015

Employee stock purchase plan 2008 [Member]

Mar. 31, 2016

RSUs, RSAs, and PSAs [Member]

Mar. 31, 2016

Restricted Stock Units (RSUs) [Member]

Mar. 31, 2016

Performance shares (PSAs)

Mar. 31, 2016

Restricted stock awards (RSAs)

Number of Shares

Balance as of December 31, 2015 (in shares)

18,600,000

Granted (in shares)

6,100,000

700,000

Vested (in shares)

(3,500,000)

(700,000)

(600,000)

Canceled (in shares)

(300,000)

(400,000)

Balance as of March 31, 2016 (in shares)

19,900,000

Weighted Average Grant-Date Fair Value per Share

Balance as of December 31, 2015 (in dollars per share)

$ 22.71

Granted (in dollars per share)

$ 24.97

$ 23.70

Vested (in dollars per share)

$ 21.73

$ 21.61

$ 21.02

Canceled (in dollars per share)

$ 22.29

$ 21.69

Balance as of March 31, 2016 (in dollars per share)

$ 23.73

Weighted Average Remaining Contractual Term (In Years)

1 year 6 months

Aggregate Intrinsic Value

$ 506.9

Aggregate number of shares subject to PSAs granted

400,000

Minimum shares to be issued on achievement of performance goals in respect of PSAs

0

Maximum shares to be issued on achievement of performance goals in respect of PSAs

700,000

Common stock, dividends paid per share (in dollars per share)

$ 0.1

Common stock dividends paid

$ 38.3

Employee Stock Purchase Plan

Employee stock purchase plans offering period duration

6 months

Stock issued during period, shares, employee stock purchase plans

1,300,000

1,400,000

Average price of common stock, per share (in dollars per share)

$ 20.06

$ 19.32

Employee Benefit Plans, Assumptions and Resulting Estimates of Fair Value (Details)

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

ESPP [Member]

Estimates of Fair Value

Volatility

35.00%

30.00%

Risk-free interest rate

0.50%

0.10%

Expected life (years)

6 months

Dividend yield

1.70%

1.90%

Weighted-average fair value per share (in dollars per share)

$ 5.95

$ 5.23

Market-based RSUs [Member]

Estimates of Fair Value

Volatility

36.00%

34.00%

Risk-free interest rate

1.20%

1.40%

Dividend yield

1.70%

1.80%

Weighted-average fair value per share (in dollars per share)

$ 14.71

$ 14.97

Employee Benefit Plans, Share Based Compensation by Cost and Expense Categories (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

$ 51.8

$ 46.0

Stock Options [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

1.2

2.2

RSUs, RSAs, and PSAs [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

46.8

40.6

ESPP [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

3.8

3.2

Cost of Revenues, Product [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

1.9

1.7

Cost of Revenues, Service [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

3.5

3.4

Research and Development [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

32.3

30.7

Sales and Marketing [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

9.4

5.8

General and Administrative [Member]

Stock Based Compensation Expense Recorded in Cost and Expense Categories

Share-based compensation expense

$ 4.7

$ 4.4

Employee Benefit Plans, Share Based Compensation by Share Based Payment Award Types (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Stock Options [Member]

Unrecognized Compensation Cost [Abstract]

Unrecognized Compensation Cost

$ 0.9

Weighted Average Period (In Years)

4 months 24 days

RSUs, RSAs, and PSAs [Member]

Unrecognized Compensation Cost [Abstract]

Unrecognized Compensation Cost

$ 279.4

Weighted Average Period (In Years)

2 years 1 month 6 days

Segments (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

segment

Mar. 31, 2015

Segment Reporting Information [Line Items]

Number of reportable segments

1

Total net revenues

$ 1,097.9

$ 1,067.4

Routing [Member]

Segment Reporting Information [Line Items]

Total net revenues

504.1

504.8

Switching [Member]

Segment Reporting Information [Line Items]

Total net revenues

175.5

166.5

Security [Member]

Segment Reporting Information [Line Items]

Total net revenues

73.4

92.8

Total product [Member]

Segment Reporting Information [Line Items]

Total net revenues

753.0

764.1

Total service [Member]

Segment Reporting Information [Line Items]

Total net revenues

$ 344.9

$ 303.3

Segments, Geographical (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Dec. 31, 2015

Net Revenues by Geographic Region [Line Items]

Total net revenues

$ 1,097.9

$ 1,067.4

Property and equipment, net and purchased intangible assets, net

1,077.9

1,054.9

United States [Member]

Net Revenues by Geographic Region [Line Items]

Total net revenues

579.0

533.5

Property and equipment, net and purchased intangible assets, net

946.2

925.5

Other [Member]

Net Revenues by Geographic Region [Line Items]

Total net revenues

49.2

55.5

Americas [Member]

Net Revenues by Geographic Region [Line Items]

Total net revenues

628.2

589.0

EMEA [Member]

Net Revenues by Geographic Region [Line Items]

Total net revenues

285.4

303.8

Asia Pacific [Member]

Net Revenues by Geographic Region [Line Items]

Total net revenues

184.3

174.6

International [Member]

Net Revenues by Geographic Region [Line Items]

Property and equipment, net and purchased intangible assets, net

$ 131.7

$ 129.4

Income Taxes (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Dec. 31, 2009

Foreign country

Mar. 31, 2016

Maximum [Member]

Income Tax Contingency [Line Items]

Effective income tax rate reconciliation, at federal statutory income tax rate

27.80%

30.90%

Federal statutory rate

35.00%

Effective Income Tax Rate Reconciliation, Amount [Abstract]

Loss on privately-held equity investments

$ (1.9)

$ 0

Restructuring charges

0

(1.3)

Unrecognized tax benefits

220.8

Unrecognized tax benefits that would impact effective tax rate

185.8

Greater than remote likelihood decrease in gross unrecognized tax benefits within next 12 months

4.3

Interest and penalties recorded

$ 4.6

Net Income Per Share (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Numerator

Net income

$ 91.4

$ 80.2

Denominator

Weighted-average shares used to compute basic net income per share

383.2

407.1

Dilutive effect of employee stock awards

6.1

7.1

Weighted-average shares used to compute diluted net income per share

389.3

414.2

Net income per share:

Basic, in dollars per share

$ 0.24

$ 0.20

Diluted, in dollars per share

$ 0.23

$ 0.19

Net Income per Share Textuals

Potential anti-dilutive shares

4.0

6.4

Commitments and Contingencies (Details) (USD $)

0 Months Ended

3 Months Ended

0 Months Ended

Jul. 10, 2015

sqft

Mar. 31, 2016

Mar. 31, 2015

Dec. 31, 2015

Jul. 10, 2015

Mar. 31, 2016

Construction in Progress [Member]

Mar. 31, 2016

Fixed Rate Note Due 2019 [Member]

Feb. 29, 2016

Fixed Rate Note Due 2019 [Member]

Mar. 31, 2016

Fixed rate note due 2016 [Member]

Mar. 31, 2016

Fixed rate note due 2020 [Member]

Mar. 31, 2015

Fixed rate note due 2020 [Member]

Mar. 31, 2016

Fixed rate note due 2021 [Member]

Mar. 31, 2011

Fixed rate note due 2021 [Member]

Mar. 31, 2016

Fixed rate note due 2024 [Member]

Mar. 31, 2014

Fixed rate note due 2024 [Member]

Mar. 31, 2016

Fixed rate note due 2025 [Member]

Mar. 31, 2015

Fixed rate note due 2025 [Member]

Mar. 31, 2016

Fixed rate note due 2041 [Member]

Mar. 31, 2011

Fixed rate note due 2041 [Member]

Jul. 10, 2015

Minimum [Member]

Jul. 10, 2015

Maximum [Member]

Summarization of principal contractual obligations

Future minimum payments under the non-cancelable operating leases

$ 111,800,000

$ 118,100,000

Rent expense

9,100,000

11,500,000

Lease term, option to extend

20 years

Increment for lease extension

5 years

10 years

Square feet of leased space

63,000

Term of lease

10 years

Tenant allowance

6,000,000

Property and equipment, net

1,047,300,000

1,021,000,000

59,800,000

Total purchase commitments

601,600,000

Accrual for estimated carrying charges or obsolete materials charges

19,800,000

Short-term debt

0

299,900,000

Long-term debt, carrying value

2,131,800,000

1,637,500,000

Long-term debt, gross

350,000,000

300,000,000

500,000,000

350,000,000

300,000,000

400,000,000

Short-term and Long-term debt, stated interest rate

3.125%

3.10%

3.30%

4.60%

4.50%

4.35%

5.95%

Indemnity-related and service-related escrows

36,100,000

Campus build out commitments

3,500,000

Other contractual obligations

45,500,000

Long-term income taxes payable

$ 190,400,000

$ 187,300,000

Commitments and Contingencies, Guarantees (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2016

Dec. 31, 2015

Financing guarantees, bank guarantees, and standby letters of credit [Member]

Guarantor Obligations [Line Items]

Guarantor obligations, current carrying value

$ 6.1

$ 15.8

Other Current Liabilities [Member] |
Indemnification Agreement [Member]

Guarantor Obligations [Line Items]

Guarantor obligations, current carrying value

$ 15.6

Subsequent Events (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

0 Months Ended

3 Months Ended

0 Months Ended

1 Months Ended

0 Months Ended

Jan. 27, 2016

Mar. 31, 2016

Mar. 31, 2015

Mar. 31, 2016

2014 Stock Repurchase Program [Member]

Apr. 28, 2016

Subsequent Event [Member]

May 9, 2016

Subsequent Event [Member]

2014 Stock Repurchase Program [Member]

Apr. 1, 2016

Subsequent Event [Member]

BTI Systems, Inc [Member]

Subsequent Event [Line Items]

Payments to acquire business

$ 65.0

Business combination, liabilities repaid

23.9

Cash dividends declared per common stock (in dollars per share)

$ 0.1

$ 0.10

$ 0.1

Shares repurchased, in shares

3.8

Shares repurchased, value

88.0

Common stock repurchased under stock repurchase program average purchase price (in dollars per share)

$ 23.89

$ 23.05

$ 23.16

Stock repurchased and retired (in shares)

3.1

17.4

2.8

Stock repurchase program, remaining authorized repurchase amount

$ 457.5

$ 369.6