JUNIPER NETWORKS INC, 10-Q filed on 11/5/2010
Quarterly Report
Document and Entity Information Document
9 Months Ended
Sep. 30, 2010
Oct. 29, 2010
Document Information [Line Items]
 
 
Entity Registrant Name
JUNIPER NETWORKS INC 
 
Entity Central Index Key
0001043604 
 
Document Type
10-Q 
 
Document Period End Date
2010-09-30 
 
Amendment Flag
FALSE 
 
Document Fiscal Year Focus
2010 
 
Document Fiscal Period Focus
Q3 
 
Current Fiscal Year End Date
12/31 
 
Entity Well-known Seasoned Issuer
No 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
523,202,000 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Net revenues:
 
 
 
 
Product
$ 801,183 
$ 634,074 
$ 2,296,442 
$ 1,828,896 
Service
211,224 
189,838 
606,883 
545,562 
Total net revenues
1,012,407 
823,912 
2,903,325 
2,374,458 
Cost of revenues:
 
 
 
 
Product
247,033 
206,329 
701,166 
606,966 
Service
87,587 
74,300 
252,413 
215,535 
Total cost of revenues
334,620 
280,629 
953,579 
822,501 
Gross margin
677,787 
543,283 
1,949,746 
1,551,957 
Operating expenses:
 
 
 
 
Research and development
231,151 
185,204 
662,913 
554,498 
Sales and marketing
204,704 
183,424 
599,382 
547,843 
General and administrative
43,773 
39,877 
132,791 
118,263 
Amortization of purchased intangible assets
917 
1,330 
3,258 
9,259 
Restructuring charges
181 
4,493 
8,550 
16,251 
Acquisition-related and other charges
1,525 
1,000 
2,066 
1,000 
Total operating expenses
482,251 
415,328 
1,408,960 
1,247,114 
Operating income
195,536 
127,955 
540,786 
304,843 
Interest and other income, net
205 
1,733 
2,497 
6,581 
Gain (loss) on equity investments
0 
0 
3,232 
(3,311)
Income before income taxes and noncontrolling interest
195,741 
129,688 
546,515 
308,113 
Income tax provision
61,404 
45,902 
117,225 
214,018 
Consolidated net income
134,337 
83,786 
429,290 
94,095 
Adjust for net loss (income) attributable to noncontrolling interest
206 
0 
(1,121)
0 
Net income attributable to Juniper Networks
134,543 
83,786 
428,169 
94,095 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
Basic
0.26 
0.16 
0.82 
0.18 
Diluted
$ 0.25 
$ 0.16 
$ 0.8 
$ 0.18 
Shares used in computing net income per share:
 
 
 
 
Basic
520,581 
523,878 
522,069 
523,802 
Diluted
534,880 
538,132 
537,158 
532,686 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands
9 Months Ended
Sep. 30, 2010
Year Ended
Dec. 31, 2009
Current assets:
 
 
Cash and cash equivalents
$ 1,460,914 
$ 1,604,723 
Short-term investments
638,523 
570,522 
Accounts receivable, net of allowances
473,953 
458,652 
Deferred tax assets, net
181,955 
196,318 
Prepaid expenses and other current assets
111,466 
48,744 
Total current assets
2,866,811 
2,878,959 
Property and equipment, net
484,802 
455,651 
Long-term investments
599,036 
483,505 
Restricted cash
79,080 
53,732 
Purchased intangible assets, net
47,629 
13,834 
Goodwill
3,759,631 
3,658,602 
Long-term deferred tax assets, net
0 
10,555 
Other long-term assets
53,908 
35,425 
Total assets
7,890,897 
7,590,263 
Current liabilities:
 
 
Accounts payable
251,431 
242,591 
Accrued compensation
184,941 
176,551 
Accrued warranty
36,360 
38,199 
Deferred revenue
594,437 
571,652 
Income taxes payable
29,762 
34,936 
Accrued litigation settlements
0 
169,330 
Other accrued liabilities
143,836 
142,526 
Total current liabilities
1,240,767 
1,375,785 
Long-term deferred revenue
190,701 
181,937 
Long-term income tax payable
98,198 
170,245 
Other long-term liabilities
44,332 
37,531 
Commitments and Contingencies - See Note 15
 
 
Juniper Networks stockholders' equity:
 
 
Convertible preferred stock, $0.00001 par value; 10,000 shares authorized; none issued and outstanding
0 
0 
Common stock, $0.00001 par value; 1,000,000 shares authorized; 521,141 shares and 519,341 shares issued and outstanding at September 30, 2010, and December 31, 2009, respectively
5 
5 
Additional paid-in capital
9,449,553 
9,060,089 
Accumulated other comprehensive income (loss)
4,427 
(1,433)
Accumulated deficit
(3,137,836)
(3,236,525)
Total Juniper Networks stockholders' equity
6,316,149 
5,822,136 
Noncontrolling interest
750 
2,629 
Total equity
6,316,899 
5,824,765 
Total liabilities and stockholders' equity
$ 7,890,897 
$ 7,590,263 
Condensed Consolidated Balance Sheets Parentheticals (Unaudited) (USD $)
In Thousands, except Per Share data
Sep. 30, 2010
Dec. 31, 2009
Convertible preferred stock, par value
$ 0.00001 
$ 0.00001 
Convertible preferred stock, shares authorized
10,000 
10,000 
Convertible preferred stock, shares issued
0 
0 
Convertible preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.00001 
$ 0.00001 
Common stock, shares authorized
1,000,000 
1,000,000 
Common stock, shares issued
521,141 
519,341 
Common stock, shares outstanding
521,141 
519,341 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands
9 Months Ended
Sep. 30,
2010
2009
Cash flows from operating activities:
 
 
Consolidated net income
$ 429,290 
$ 94,095 
Adjustments to reconcile consolidated net income to net cash from operating activities:
 
 
Depreciation and amortization
112,366 
111,803 
Stock-based compensation
129,555 
101,445 
(Gain) loss on equity investments
(3,232)
3,311 
Change in excess tax benefits from share-based compensation
(32,932)
673 
Deferred income taxes
26,425 
41,996 
Changes in operating assets and liabilities:
 
 
Accounts receivable, net
(15,093)
56,729 
Prepaid expenses and other assets
(67,813)
(11,444)
Accounts payable
8,464 
(778)
Accrued compensation
8,390 
(20,873)
Accrued litigation settlements
(169,330)
0 
Income tax payable
(16,900)
84,813 
Other accrued liabilities
836 
21,790 
Deferred revenue
31,274 
52,932 
Net cash provided by operating activities
441,300 
536,492 
Cash flows from investing activities:
 
 
Purchases of property and equipment, net
(137,481)
(113,210)
Purchases of trading investments
(2,338)
0 
Purchases of available-for-sale investments
(1,361,510)
(1,164,833)
Proceeds from sales of available-for-sale investments
440,788 
202,276 
Proceeds from maturities of available-for-sale investments
744,464 
262,325 
Payment for business acquisition, net of cash and cash equivalents acquired
(133,333)
0 
Changes in restricted cash
(12,432)
(11,276)
Purchases of privately-held equity investments, net
(5,288)
(5,289)
Net cash used in investing activities
(467,130)
(830,007)
Cash flows from financing activities:
 
 
Proceeds from issuance of common stock
257,693 
131,391 
Purchases and retirement of common stock
(388,698)
(241,481)
Change in customer financing arrangements
(16,906)
3,784 
Change in excess tax benefit from share-based compensation
32,932 
(673)
Return of capital to noncontrolling interest
(3,000)
0 
Net cash used in financing activities
(117,979)
(106,979)
Net decrease in cash and cash equivalents
(143,809)
(400,494)
Cash and cash equivalents at beginning of period
1,604,723 
2,019,084 
Cash and cash equivalents at end of period
$ 1,460,914 
$ 1,618,590 
Note 1 - Basis of Presentation Level 1 (Notes)
Basis of Presentation [Text Block]
Basis of Presentation
 
The unaudited Condensed Consolidated Financial Statements of Juniper Networks, Inc. (“Juniper Networks” or the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. 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 and nine months ended September 30, 2010, are not necessarily indicative of the results that may be expected for the year ending December 31, 2010, or any future period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009.
 
As of September 30, 2010, the Company owned a 60 percent interest in a joint venture with Nokia Siemens Networks B.V. (“NSN”). Given the Company's majority ownership interest in the joint venture, the accounts of the joint venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor's interests in the net assets and operations of the joint venture.
 
Reclassifications
 
In the first quarter of 2010, the Company reclassified certain selling and marketing costs that were previously reported as cost of service revenues as sales and marketing expense. Accordingly, $6.1 million and $18.7 million of costs reported in the three and nine months ended September 30, 2009, respectively, have been reclassified from cost of service revenues to sales and marketing expense to conform to the current period's presentation. The reclassification did not impact the Company's previously reported net revenues, segment results, operating income, net income, or earnings per share.
Note 2 - Summary of Significant Accounting Policies Level 1 (Notes)
Summary of Significant Accounting Policies [Text Block]
Summary of Significant Accounting Policies
 
Recent Accounting Policy Changes
 
Revenue Recognition
 
In October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2009-13, Topic 605 - Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”). ASU 2009-13 changes the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. Under the new standard, the Company allocates the total arrangement consideration to each separable element of an arrangement based upon the relative selling price of each element. Arrangement consideration allocated to undelivered elements is deferred until delivery. Concurrently with issuing ASU 2009-13, the FASB also issued ASU No. 2009-14, Topic 985 - Certain Revenue Arrangements That Include Software Elements (“ASU 2009-14”). ASU 2009-14 excludes software that is contained on a tangible product from the scope of software revenue guidance if the software component and the non-software component function together to deliver the tangible products' essential functionality. The Company early adopted these standards on a prospective basis as of the beginning of fiscal 2010 for new and materially modified arrangements originating after December 31, 2009.
 
As a result of the adoption of ASU 2009-13 and ASU 2009-14, net revenues for the three and nine months ended September 30, 2010, were approximately $50 million and $128 million higher, respectively, than the net revenues that would have been recorded under the previous accounting rules. The increase in revenues was due to recognition of revenue for products booked and shipped during these periods which consisted primarily of $31 million and $91 million for the three and nine month periods ended September 30, 2010, respectively, related to undelivered product commitments for which the Company was unable to demonstrate fair value pursuant to the previous accounting standards. The remainder of the increase in revenue for the three and nine month periods was due to products sold into multiple-year service arrangements which were recognized ratably under the previous accounting standards and for the change in the Company's allocation methodology from the residual method to the relative selling price method as prescribed by ASU 2009-13.
 
Revenue is recognized when all of the following criteria have been met:
 
•    
Persuasive evidence of an arrangement exists. The Company generally relies upon sales contracts, or agreements, and customer purchase orders to determine the existence of an arrangement.
 
•    
Delivery has occurred. The Company uses shipping terms and related documents, or written evidence of customer acceptance, when applicable, to verify delivery or performance. In instances where the Company has outstanding obligations related to product delivery or the final acceptance of the product, revenue is deferred until all the delivery and acceptance criteria have been met.
 
•    
Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment.
 
•    
Collectability is reasonably assured. The Company assesses collectability based on creditworthiness of customers as determined by our credit checks and their payment histories. The Company records accounts receivable net of allowance for doubtful accounts, estimated customer returns, and pricing credits.
 
For fiscal 2010 and future periods, pursuant to the guidance of ASU 2009-13, when a sales arrangement contains multiple elements and software and non-software components function together to deliver the tangible products' essential functionality, the Company allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonable range based on historical discounting trends for specific products and services. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Company's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors products' selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The best estimate of selling price is established considering multiple factors including, but not limited to pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles.
 
In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue, as amended.
 
The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligation, or subject to customer-specific return or refund privileges. The Company evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item, and the delivery and performance of the undelivered item is considered probable and substantially in the Company's control, the delivered element constitutes a separate unit of accounting. In circumstances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements, and the allocation of the arrangement consideration and revenue recognition is determined for the combined unit as a single unit. Allocation of the consideration is determined at arrangement inception on the basis of each unit's relative selling price. The new standards do not generally change the units of accounting for the Company's revenue transactions. The Company cannot reasonably estimate the effect of adopting these standards on future financial periods as the impact will vary depending on the nature and volume of new or materially modified deals in any given period.
 
For transactions entered into prior to January 1, 2010, revenue for arrangements with multiple elements, such as sales of products that include services, is allocated to each element using the residual method based on the VSOE of fair value of the undelivered items pursuant to ASC Topic 985-605, Software - Revenue Recognition. Under the residual method, the amount of
revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. If VSOE of one or more undelivered items does not exist, revenue from the entire arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless maintenance is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual support period.
 
The Company accounts for multiple agreements with a single customer as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement. The Company's ability to recognize revenue in the future may be affected if actual selling prices are significantly less than fair value. In addition, the Company's ability to recognize revenue in the future could be impacted by conditions imposed by its customers.
 
For sales to direct end-users, value-added resellers, and original equipment manufacturer (“OEM”) partners, the Company recognizes product revenue upon transfer of title and risk of loss, which is generally upon shipment. It is the Company's practice to identify an end-user prior to shipment to a value-added reseller. For the Company's end-users and value-added resellers, there are no significant obligations for future performance such as rights of return or pricing credits. The Company's agreements with its OEM partners may allow future rights of return. A portion of the Company's sales is made through distributors under agreements allowing for pricing credits or rights of return. Product revenue on sales made through these distributors is recognized upon sell-through, as reported by the distributors to the Company. Deferred revenue on shipments to distributors reflects the effects of distributor pricing credits and the amount of gross margin expected to be realized upon sell-through. Deferred revenue is recorded net of the related product costs of revenue.
 
The Company records reductions to revenue for estimated product returns and pricing adjustments, such as rebates and price protection, in the same period that the related revenue is recorded. The amount of these reductions is based on historical sales returns and price protection credits, specific criteria outlined in rebate agreements, and other factors known at the time. Should actual product returns or pricing adjustments differ from estimates, additional adjustments to revenue may be required. In addition, the Company reports revenue net of sales taxes.
 
Service revenues include revenue from maintenance, training, and professional services. Maintenance is offered under renewable contracts. Revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period, which is generally one to three years. Revenue from training and professional services is recognized as services are completed or ratably over the contractual period, which is generally one year or less.
 
The Company sells certain interests in accounts receivable on a non-recourse basis as part of customer financing arrangements primarily with one major financing company. Cash received under this arrangement in advance of revenue recognition is recorded as short-term debt.
 
Recent Accounting Pronouncements
 
In July 2010, the FASB issued ASU No. 2010-20, Topic 310 - Disclosure about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (“ASU 2010-20”), which improves the disclosures that an entity provides about the credit quality of its financing receivables and the related allowance for credit losses. This guidance is effective for interim and annual reporting periods ending on or after December 15, 2010. ASU 2010-20 relates to disclosure requirements only and as such does not impact the Company's consolidated results of operations or financial condition.
 
In May 2010, the FASB issued ASU No. 2010-19, Topic 830 - Foreign Currency Issues: Multiple Foreign Currency Exchange Rates-An announcement made by the staff of the U.S. Securities and Exchange Commission (“ASU 2010-19”), which incorporates the SEC Staff Announcement made at the March 18, 2010 meeting of the FASB Emerging Issues Task Force (“EITF”). The Staff Announcement provided the SEC staff's view on certain foreign currency issues related to investments in Venezuela. This guidance is effective as of the announcement date, March 18, 2010. The Company's adoption of ASU 2010-19 did not have an impact on the Company's consolidated results of operations or financial condition.
 
In April 2010, the FASB issued ASU No. 2010-17, Topic 605 - Revenue Recognition - Milestone Method (“ASU 2010-17”), which provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. The amendments in ASU 2010-17 are effective on a prospective basis for milestones achieved in fiscal years beginning on or after June 15, 2010, and interim periods within those years. Early adoption is permitted; however, if a Company elects to early adopt, the amendment must be applied retrospectively from the
beginning of the year of adoption. The Company's adoption of ASU 2010-17 is not expected to have an impact on its consolidated results of operations or financial condition.
 
In April 2010, the FASB issued ASU No. 2010-13, Topic 718 - Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades (“ASU 2010-13”), which provides guidance on the classification of a share-based payment award as either equity or a liability. A share-based payment award that contains a condition that is not a market, performance, or service condition is required to be classified as a liability. The amendments in ASU 2010-13 are effective for fiscal years, and interim periods within those years beginning on or after December 15, 2010. The Company's adoption of ASU 2010-13 is not expected to have an impact on the Company's consolidated results of operations or financial condition.
 
In January 2010, the FASB issued ASU No. 2010-06, Topic 820 - Improving Disclosures about Fair Value Measurements (“ASU 2010-06”), which provides additional fair value measurement disclosures and clarifies certain existing disclosure requirements. Except for the requirement to disclose purchases, sales, issuances, and settlements of Level 3 measurements on a gross basis, the disclosure and clarification requirements are effective for interim and annual reporting periods beginning after December 15, 2009. The requirement to separately disclose purchases, sales, issuances, and settlements of recurring Level 3 measurements on a gross basis is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. ASU 2010-06 relates to disclosure requirements only and as such does not impact the Company's consolidated results of operations or financial condition.
Note 3 - Business Combination Level 1 (Notes)
Business Combination [Text Block]
Business Combination
 
In the nine months ended September 30, 2010, the Company completed the acquisitions of Ankeena Networks, Inc., (“Ankeena”) and SMobile Systems, Inc. (“SMobile”).
 
Ankeena Acquisition
 
On April 19, 2010, the Company acquired 100% of the equity securities of Ankeena, a privately-held provider of new media infrastructure technology. The acquisition of Ankeena will provide the Company with strong video delivery capabilities, as Ankeena's products optimize web-based video delivery, provide key components of a content delivery network architecture/solution, improve consumers' online video experience, and reduce service provider and carrier service provider infrastructure costs for providing web-based video.
 
In connection with the acquisition of Ankeena, the Company assumed net assets of $3.6 million, including cash and cash equivalents of $2.3 million, and recognized goodwill of $53.1 million, which was assigned to the Company's Infrastructure segment. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of Ankeena, and the economies of scale expected from combining the operations of Ankeena and the Company. None of the goodwill is expected to be deductible for income tax purposes.
 
Prior to the acquisition, the Company had a $2.0 million, or a 7.7% ownership interest in Ankeena, and accounted for it as a privately-held equity investment. As of the acquisition-date, the fair value of the equity interest in Ankeena was $5.2 million based on a noncontrolling interest fair value and was included in the purchase price. The Company recognized a $3.2 million gain, which was reported within gain (loss) on equity investments in its condensed consolidated statement of operations.
 
SMobile Acquisition
 
On July 30, 2010, the Company acquired 100% of the equity securities of SMobile, a privately-held software company focused solely on smartphone and tablet security solutions for the enterprise, service provider, and consumer markets. The acquisition of SMobile will allow the Company to extend its security focus through integration of SMobile's product portfolio with Junos® Pulse.
 
In connection with the acquisition of SMobile, the Company assumed net liabilities of $5.0 million, including cash and cash equivalents of $0.4 million, and recognized goodwill of $47.9 million, which was assigned to the Company's Service Layer Technology ("SLT") segment. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of SMobile, and the economies of scale expected from combining the operations of SMobile and the Company. None of the goodwill is expected to be deductible for income tax purposes.
 
The Company's consolidated financial statements include the operating results of both businesses from the date of each acquisition. Pro forma results of operations for these acquisitions have not been presented because the financial impact to the Company's consolidated results of operations, both individually and in aggregate, is not material.
 
Total purchase consideration for these acquisitions is summarized as follows (in millions):
 
Ankeena
 
SMobile
 
Total
Cash
$
66.5
 
 
$
69.5
 
 
$
136.0
 
Assumed stock option and RSU awards allocated to purchase price(1)
2.4
 
 
—
 
 
2.4
 
Total
$
68.9
 
 
$
69.5
 
 
$
138.4
 
________________________________
 
(1)    
The fair value of the stock option and RSU awards assumed was based on the acquired company's determined value on the acquisition date.
 
Allocation of the purchase consideration for acquisitions completed during the nine months ended September 30, 2010, is summarized as follows (in millions):
 
 
Ankeena
 
SMobile
 
Total
Net assets (liabilities) assumed
$
3.6
 
 
$
(5.0
)
 
$
(1.4
)
Intangible assets acquired
12.2
 
 
26.6
 
 
38.8
 
Goodwill
53.1
 
 
47.9
 
 
101.0
 
    Total
$
68.9
 
 
$
69.5
 
 
$
138.4
 
 
 
The Company recognized $1.5 million and $2.1 million of acquisition-related costs in the three and nine months ended September 30, 2010, respectively, as a result of both acquisitions. These costs were expensed in the period incurred and reported in the Company's condensed consolidated statement of operations as acquisition-related and other charges.
 
The following table presents details of the intangible assets acquired through the business combinations completed during the nine months ended September 30, 2010 (in millions, except years):
 
 
 
Ankeena
 
SMobile
 
 
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Total Amount
Existing technology
4.0
 
 
$
5.2
 
 
5.0
 
 
$
24.3
 
 
$
29.5
 
In-process research and development
4.0
 
 
3.8
 
 
—
 
 
—
 
 
3.8
 
Core technology
4.0
 
 
3.2
 
 
—
 
 
—
 
 
3.2
 
Customer contracts and related relationships
—
 
 
—
 
 
6.0
 
 
2.1
 
 
2.1
 
Support agreements and related relationships
—
 
 
—
 
 
6.0
 
 
0.1
 
 
0.1
 
Non-compete agreements
—
 
 
—
 
 
2.0
 
 
0.1
 
 
0.1
 
Total
4.0
 
 
$
12.2
 
 
5.0
 
 
$
26.6
 
 
$
38.8
 
 
Note 4 - Net Income per Share Level 1 (Notes)
Earnings Per Share [Text Block]
Net Income per Share
 
Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for that period. Diluted net income per share is computed giving effect to all dilutive potential shares that were outstanding during the period. Dilutive potential common shares consist of common shares issuable upon exercise of stock options, vesting of restricted stock units (“RSUs”), and vesting of performance share awards (“PSAs”).
 
The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks common stockholders (in millions, except per share amounts):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Numerator:
 
 
 
 
 
 
 
Net income attributable to Juniper Networks
$
134.5
 
 
$
83.8
 
 
$
428.2
 
 
$
94.1
 
Denominator:
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
520.6
 
 
523.9
 
 
522.1
 
 
523.8
 
Effect of dilutive securities:
 
 
 
 
 
 
 
Employee stock awards
14.3
 
 
14.2
 
 
15.1
 
 
8.9
 
Weighted-average shares used to compute diluted net income per share
534.9
 
 
538.1
 
 
537.2
 
 
532.7
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
Basic
$
0.26
 
 
$
0.16
 
 
$
0.82
 
 
$
0.18
 
Diluted
$
0.25
 
 
$
0.16
 
 
$
0.80
 
 
$
0.18
 
 
 
 
The Company excludes outstanding stock options with exercise prices that are greater than the average market price from the calculation of diluted net income per share because their effect would be anti-dilutive. The Company includes the common shares underlying PSAs in the calculation of diluted net income per share when they become contingently issuable and excludes such shares when they are not contingently issuable. Employee stock option awards and PSAs covering approximately 16.8 million and 16.4 million shares of the Company's common stock were outstanding but were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2010, respectively, because their effect would have been anti-dilutive. Employee stock awards covering approximately 24.4 million and 48.4 million shares of the Company's common stock in the three and nine months ended September 30, 2009, respectively, were outstanding, but were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive.
Note 5 - Cash, Cash Equivalents and Investments Level 1 (Notes)
Cash, Cash Equivalents, and Investments [Text Block]
Cash, Cash Equivalents, and Investments
 
Cash and Cash Equivalents
 
The following table summarizes the Company's cash and cash equivalents (in millions):
 
 
As of
 
September 30, 2010
 
December 31, 2009
Cash and cash equivalents:
 
 
 
Cash:
 
 
 
Demand deposits
$
430.0
 
 
$
427.2
 
Time deposits
276.3
 
 
127.9
 
Total cash
706.3
 
 
555.1
 
Cash equivalents:
 
 
 
U.S. government securities
7.0
 
 
—
 
Certificate of deposit
5.0
 
 
—
 
Commercial paper
10.0
 
 
17.0
 
Money market funds
732.6
 
 
1,032.6
 
Total cash equivalents
754.6
 
 
1,049.6
 
Total cash and cash equivalents
$
1,460.9
 
 
$
1,604.7
 
 
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 trading or available-for-sale, as of September 30, 2010, and December 31, 2009 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of September 30, 2010:
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
288.4
 
 
$
0.3
 
 
$
—
 
 
$
288.7
 
Government-sponsored enterprise obligations
246.8
 
 
0.7
 
 
—
 
 
247.5
 
Foreign government debt securities
52.1
 
 
0.4
 
 
—
 
 
52.5
 
Certificate of deposit
18.6
 
 
—
 
 
—
 
 
18.6
 
Commercial paper
16.5
 
 
—
 
 
—
 
 
16.5
 
Asset-backed securities
74.1
 
 
0.1
 
 
(0.1
)
 
74.1
 
Corporate debt securities
522.5
 
 
3.5
 
 
(0.1
)
 
525.9
 
Total fixed income securities
1,219.0
 
 
5.0
 
 
(0.2
)
 
1,223.8
 
Publicly-traded equity securities
11.3
 
 
2.5
 
 
—
 
 
13.8
 
Total
$
1,230.3
 
 
$
7.5
 
 
$
(0.2
)
 
$
1,237.6
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Short-term investments
$
634.9
 
 
$
3.7
 
 
$
(0.1
)
 
$
638.5
 
Long-term investments
595.4
 
 
3.8
 
 
(0.1
)
 
599.1
 
Total
$
1,230.3
 
 
$
7.5
 
 
$
(0.2
)
 
$
1,237.6
 
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2009:
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
245.0
 
 
$
0.1
 
 
$
—
 
 
$
245.1
 
Government-sponsored enterprise obligations
212.0
 
 
0.6
 
 
(0.3
)
 
212.3
 
Foreign government debt securities
96.4
 
 
0.3
 
 
(0.1
)
 
96.6
 
Corporate debt securities
488.2
 
 
2.0
 
 
(0.3
)
 
489.9
 
Total fixed income securities
1,041.6
 
 
3.0
 
 
(0.7
)
 
1,043.9
 
Publicly-traded equity securities
10.1
 
 
—
 
 
—
 
 
10.1
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Short-term investments
$
569.5
 
 
$
1.0
 
 
$
—
 
 
$
570.5
 
Long-term investments
482.2
 
 
2.0
 
 
(0.7
)
 
483.5
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
 
 
The following table presents the Company's maturities of its available-for-sale investments and publicly-traded securities as of September 30, 2010 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
Fixed income securities:
 
 
 
 
 
 
 
Due within one year
$
623.6
 
 
$
1.2
 
 
$
(0.1
)
 
$
624.7
 
Due between one and five years
595.4
 
 
3.8
 
 
(0.1
)
 
599.1
 
Total fixed income securities
1,219.0
 
 
5.0
 
 
(0.2
)
 
1,223.8
 
Publicly-traded equity securities
11.3
 
 
2.5
 
 
—
 
 
13.8
 
Total
$
1,230.3
 
 
$
7.5
 
 
$
(0.2
)
 
$
1,237.6
 
 
 
The following table presents the Company's trading and available-for sale investments that are in a continuous unrealized loss position as of September 30, 2010 (in millions):
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
Corporate debt securities
$
101.6
 
 
$
(0.1
)
 
$
19.5
 
 
$
—
 
 
$
121.1
 
 
$
(0.1
)
U.S. government securities
6.0
 
 
—
 
 
—
 
 
—
 
 
6.0
 
 
—
 
Government-sponsored enterprise obligations
17.2
 
 
—
 
 
5.0
 
 
—
 
 
22.2
 
 
—
 
Foreign government debt securities
1.2
 
 
—
 
 
5.0
 
 
—
 
 
6.2
 
 
—
 
Asset-backed securities
46.2
 
 
(0.1
)
 
—
 
 
—
 
 
46.2
 
 
(0.1
)
Total
$
172.2
 
 
$
(0.2
)
 
$
29.5
 
 
$
—
 
 
$
201.7
 
 
$
(0.2
)
 
The Company had 46 and 52 investments in unrealized loss positions as of September 30, 2010, and December 31, 2009, respectively. The gross unrealized losses related to these investments were primarily due to changes in interest rates. The contractual terms of fixed income securities do not permit the issuer to settle the securities at a price less than the amortized cost of the investments. For the fixed income securities and publicly-traded equity securities that have unrealized losses, the Company has determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company did not consider these investments to be other-than-temporarily impaired as of September 30, 2010, and December 31, 2009, respectively. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company aggregates its investments by category and length of time the securities have been in a continuous
unrealized loss position to facilitate its evaluation.
 
Privately-Held and Other Equity Investments
 
The Company’s minority equity investments in privately-held and other companies are carried at cost, as the Company does not have a controlling interest or the ability to exercise significant influence over these companies. The Company adjusts its privately-held and other equity investments for any impairment if the fair value exceeds the carrying value of the respective assets.
 
As of September 30, 2010, and December 31, 2009, the carrying values of the Company’s privately-held and other equity investments of $22.5 million and $13.9 million, respectively, were included in other long-term assets in the condensed consolidated balance sheets. During the three and nine months ended September 30, 2010, the Company invested $4.6 million and $9.8 million, respectively, in privately-held and other equity investments. In the nine months ended September 30, 2010, the Company recognized a gain of $3.2 million from its minority equity investment in Ankeena upon the acquisition of Ankeena.
 
During the three and nine months ended September 30, 2009, the Company recognized a loss of nil and $3.3 million, respectively, due to the impairment of its minority equity investments in privately-held companies, that the Company judged to be other than temporary. The company invested $6.3 million in privately-held companies during the nine months ended September 30, 2009. Additionally, during the nine months ended September 30, 2009, the Company had a minority equity investment in a privately-held company that was acquired by a publicly-traded company for which the Company received a cash payment of $1.0 million and common stock of the acquiring company of $1.0 million, which is classified as an available-for-sale investment. The Company had no minority equity investments in publicly-held companies during the three and nine months ended September 30, 2009.
 
Restricted Cash
 
Restricted cash consists of cash and investments held for escrow accounts required by certain acquisitions completed in 2005 and 2010, the India Gratuity Trust and the Israel Retirement Trust which cover statutory severance obligations in the event of termination of the Company's India and Israel employees, respectively, and the Directors and Officers (“D&O”) indemnification trust. During the three and nine months ended September 30, 2010, the Company increased its restricted cash by $69.6 million and $150.1 million, respectively, primarily for the escrow accounts required by the acquisition of Ankeena and SMobile that were completed in the second and third quarter of 2010, respectively, and to a lesser extent for the Israel Retirement Trust established in the first quarter of 2010. During the three and nine months ended September 30, 2010, the Company distributed approximately $64.1 million and $124.9 million, respectively, from its restricted accounts, mainly resulting from the Ankeena and SMobile acquisitions. In connection with the Ankeena acquisition, the Company agreed to pay from escrow a total amount of $10.7 million, representing the cash value of unvested restricted shares in Ankeena as of April 8, 2010, to certain former Ankeena employees. As of September 30, 2010, the Company expects to release $8.1 million from escrow as these restricted shares vest over the next two years.
 
The following table summarizes the Company's cash and investments that are classified as restricted cash in the condensed consolidated balance sheets (in millions):
 
As of
 
September 30,
2010
 
December 31,
2009
Restricted cash:
 
 
 
Demand deposits
$
25.8
 
 
$
3.8
 
Total restricted cash
25.8
 
 
3.8
 
Restricted investments:
 
 
 
U.S. government securities
0.6
 
 
19.8
 
Corporate debt securities
2.7
 
 
—
 
Money market funds
50.0
 
 
30.1
 
Total restricted investments
53.3
 
 
49.9
 
Total restricted cash and investments
$
79.1
 
 
$
53.7
 
 
As of September 30, 2010, and December 31, 2009, the unrealized gains and losses related to restricted investments were immaterial.
 
Note 6 - Fair Value Measurements Level 1 (Notes)
Fair Value Disclosures [Text Block]
Fair Value Measurements
 
The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
 
Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
 
Level 2 – Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. These inputs are valued using market based approaches.
 
Level 3 – Inputs are unobservable inputs based on the Company’s assumptions. These inputs, if any, are valued using internal financial models.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
The following tables provide a summary of assets measured at fair value on a recurring basis and their presentation on the Company’s condensed consolidated balance sheets (in millions):
 
 
Fair Value Measurements at September 30, 2010 Using
 
 
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Trading securities:
 
 
 
 
 
 
 
Mutual funds
$
7.2
 
 
$
—
 
 
$
—
 
 
$
7.2
 
Total trading securities
7.2
 
 
—
 
 
—
 
 
7.2
 
Available-for-sale debt securities:
 
 
 
 
 
 
 
U.S. government securities (1)
$
111.1
 
 
$
185.2
 
 
$
—
 
 
$
296.3
 
Government-sponsored enterprise obligations
226.7
 
 
20.8
 
 
—
 
 
247.5
 
Foreign government debt securities
21.2
 
 
31.3
 
 
—
 
 
52.5
 
Commercial paper
—
 
 
26.5
 
 
—
 
 
26.5
 
Corporate debt securities (2)
2.7
 
 
525.9
 
 
—
 
 
528.6
 
Certificate of deposit
—
 
 
23.6
 
 
—
 
 
23.6
 
Asset-backed securities
—
 
 
74.1
 
 
—
 
 
74.1
 
Money market funds (3)
782.6
 
 
—
 
 
—
 
 
782.6
 
Total available-for-sale debt securities
1,144.3
 
 
887.4
 
 
—
 
 
2,031.7
 
Available-for-sale equity securities:
 
 
 
 
 
 
 
Technology securities
6.6
 
 
—
 
 
—
 
 
6.6
 
Total available-for-sale equity securities
6.6
 
 
—
 
 
—
 
 
6.6
 
Total available-for-sale securities
1,150.9
 
 
887.4
 
 
—
 
 
2,038.3
 
Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—
 
 
1.7
 
 
—
 
 
1.7
 
Total derivative assets
—
 
 
1.7
 
 
—
 
 
1.7
 
Total assets measured at fair value
$
1,158.1
 
 
$
889.1
 
 
$
—
 
 
$
2,047.2
 
________________________________
 
(1)    
Balance includes $0.6 million of restricted investments measured at fair market value, related to an acquisition completed in 2005. For additional information regarding the Company's restricted investments, see Note 5, Cash, Cash Equivalents, and Investments, under the heading “Restricted Cash.” Restricted investments are included in the restricted cash balance in the condensed consolidated balance sheet.
(2)    
Balance includes $2.7 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust.
(3)    
Balance includes $50.0 million of restricted investments measured at fair market value, related to the Company's D&O trust.
 
 
Fair Value Measurements at September 30, 2010 Using
 
 
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
732.6
 
 
$
22.0
 
 
$
—
 
 
$
754.6
 
Short-term investments
198.6
 
 
439.9
 
 
—
 
 
638.5
 
Long-term investments
174.2
 
 
424.9
 
 
—
 
 
599.1
 
Restricted cash
52.7
 
 
0.6
 
 
—
 
 
53.3
 
Prepaid expenses and other current assets
—
 
 
1.7
 
 
—
 
 
1.7
 
Total assets measured at fair value
$
1,158.1
 
 
$
889.1
 
 
$
—
 
 
$
2,047.2
 
 
 
Fair Value Measurements at December 31, 2009 Using
 
 
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
1,032.6
 
 
$
17.0
 
 
$
—
 
 
$
1,049.6
 
Short-term investments
101.3
 
 
469.2
 
 
—
 
 
570.5
 
Long-term investments
181.2
 
 
302.3
 
 
—
 
 
483.5
 
Restricted cash
49.9
 
 
—
 
 
—
 
 
49.9
 
Total assets measured at fair value
$
1,365.0
 
 
$
788.5
 
 
$
—
 
 
$
2,153.5
 
 
As of September 30, 2010 and December 31, 2009, the Company had nil and $1.5 million, respectively, of derivative liabilities measured at fair value on a recurring basis. The Company recorded the derivative liabilities, which related to its foreign exchange contracts, within other accrued liabilities in its condensed consolidated balance sheets. These liabilities were measured using significant other observable remaining inputs (Level 2) pursuant to the fair value hierarchy.
 
The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the three and nine months ended September 30, 2010, the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value.
 
Assets Measured at Fair Value on a Nonrecurring Basis
 
The following table presents the Company’s assets that are measured at fair value on a nonrecurring basis at least annually or on a quarterly basis if impairment is indicated (in millions):
 
 
 
 
Fair Value Measurements Using
 
 
 
 
 
Carrying Value as of September 30, 2010
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
Total Loss for the Three Months Ended September 30, 2010
 
Total Loss for the Nine Months Ended September 30, 2010
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
Privately-held equity investments
$
0.7
 
 
$
—
 
 
$
—
 
 
$
0.7
 
 
$
—
 
 
$
—
 
Total
$
0.7
 
 
$
—
 
 
$
—
 
 
$
0.7
 
 
$
—
 
 
$
—
 
 
 
 
 
 
Fair Value Measurements Using
 
 
 
 
 
Carrying Value as of September 30, 2009
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
Total Loss for the Three Months Ended September 30, 2009
 
Total Loss for the Nine Months Ended September 30, 2009
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
Privately-held equity investments
$
1.7
 
 
$
—
 
 
$
—
 
 
$
1.7
 
 
$
—
 
 
$
(3.3
)
Total
$
1.7
 
 
$
—
 
 
$
—
 
 
$
1.7
 
 
$
—
 
 
$
(3.3
)
 
 
Privately-held equity investments, which are normally carried at cost, were measured at fair value due to events and circumstances that the Company identified as significantly impacting the fair value of the investments. The Company measured 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 their capital structure. As a result, the Company recognized an impairment loss of $3.3 million during the nine months ended September 30, 2009, and classified the investments as a Level 3 asset due to the absence of quoted market prices and inherent lack of liquidity. The Company had no impairment charges against its
privately-held equity investments during the three and nine months ended September 30, 2010.
Note 7 - Goodwill and Purchased Intangible Assets Level 1 (Notes)
Goodwill and purchased intangible assets [Text Block]
Goodwill and Purchased Intangible Assets
 
Goodwill
 
The following table summarizes the Company's goodwill activities by segment in the nine months ended September 30, 2010 (in millions):
 
 
Infrastructure
 
SLT
 
Total
Balance as of January 1, 2010
 
 
 
 
 
Goodwill
$
1,500.5
 
 
$
3,438.1
 
 
$
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at January 1, 2010
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Goodwill acquired during the nine months ended September 30, 2010
53.1
 
 
47.9
 
 
101.0
 
Balance as of September 30, 2010
 
 
 
 
 
Goodwill
1,553.6
 
 
3,486.0
 
 
5,039.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at September 30, 2010
$
1,553.6
 
 
$
2,206.0
 
 
$
3,759.6
 
 
 
During the three and nine months ended September 30, 2010, the Company recorded goodwill of $47.9 million and $101.0 million, respectively, as a result of its acquisitions of Ankeena and SMobile. For further discussion, see Note 3, Business Combinations, in the Notes to Condensed Consolidated Financial Statements. There were no impairments to goodwill during the three and nine months ended September 30, 2010, and 2009.
 
Purchased Intangible Assets
 
The following table presents the Company’s purchased intangible assets with definite lives (in millions):
 
 
Gross
 
Accumulated Amortization
 
Additions
 
Net
As of September 30, 2010:
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(378.6
)
 
$
32.7
 
 
$
34.1
 
Other
68.9
 
 
(61.5
)
 
6.1
 
 
13.5
 
Total
$
448.9
 
 
$
(440.1
)
 
$
38.8
 
 
$
47.6
 
 
 
 
 
 
 
 
 
As of December 31, 2009:
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(376.0
)
 
$
—
 
 
$
4.0
 
Other
68.9
 
 
(59.1
)
 
—
 
 
9.8
 
Total
$
448.9
 
 
$
(435.1
)
 
$
—
 
 
$
13.8
 
 
 
During the three and nine months ended September 30, 2010, the Company recorded $26.6 million and $38.8 million, respectively, of purchased intangible assets as a result of its acquisitions of Ankeena and SMobile. For further discussion, see Note 3, Business Combinations, in the Notes to Condensed Consolidated Financial Statements.
 
Amortization of purchased intangible assets included in operating expenses and cost of product revenues totaled $2.4 million and $2.7 million for the three months ended September 30, 2010, and 2009, respectively, and $5.0 million and $13.4 million for the nine months ended September 30, 2010, and 2009, respectively. There were no impairment charges with respect to the purchased intangible assets in the three and nine months ended September 30, 2010, and 2009.
 
The estimated future amortization expense of purchased intangible assets with definite lives for future periods is as follows (in millions):
 
Years Ending December 31,
 
Amount
2010 (remaining three months)
 
$
2.9
 
2011
 
10.4
 
2012
 
9.6
 
2013
 
9.4
 
2014
 
7.6
 
Thereafter
 
7.7
 
Total
 
$
47.6
 
Note 8 - Other Financial Information Level 1 (Notes)
Other Financial Information [Text Block]
Other Financial Information
 
Warranties
 
The Company provides for the estimated cost of product warranties at the time revenue is recognized. This provision is reported as accrued warranty within current liabilities on the condensed consolidated balance sheets. Changes in the Company’s warranty reserve were as follows (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Beginning balance
$
38.3
 
 
$
35.8
 
 
$
38.2
 
 
$
40.1
 
Provisions made during the period, net
13.7
 
 
14.7
 
 
37.9
 
 
33.4
 
Change in estimate
(1.9
)
 
(1.1
)
 
(2.4
)
 
(4.5
)
Actual costs incurred during the period
(13.7
)
 
(12.1
)
 
(37.3
)
 
(31.7
)
Ending balance
$
36.4
 
 
$
37.3
 
 
$
36.4
 
 
$
37.3
 
 
 
Deferred Revenue
 
Details of the Company's deferred revenue were as follows (in millions):
 
As of
 
September 30, 2010
 
December 31, 2009
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
277.7
 
 
$
254.7
 
Distributor inventory and other sell-through items
128.2
 
 
136.6
 
Deferred gross product revenue
405.9
 
 
391.3
 
Deferred cost of product revenue
(147.7
)
 
(150.0
)
Deferred product revenue, net
258.2
 
 
241.3
 
Deferred service revenue
526.9
 
 
512.3
 
Total
$
785.1
 
 
$
753.6
 
Reported as:
 
 
 
Current
$
594.4
 
 
$
571.7
 
Long-term
190.7
 
 
181.9
 
Total
$
785.1
 
 
$
753.6
 
 
 
Deferred product revenue primarily represents unrecognized revenue related to shipments to distributors that have not sold through to end-users, undelivered product commitments, and other shipments that have not met all revenue recognition criteria. Deferred product revenue is recorded net of the related product costs of revenue. Deferred service revenue represents customer
payments made in advance for services, which include technical support, hardware and software maintenance, professional services, and training.
 
Restructuring Liabilities
 
In 2009, the Company implemented a restructuring plan (the “2009 Restructuring Plan”) in an effort to better align its business operations with the current market and macroeconomic conditions. The 2009 Restructuring Plan included a worldwide workforce reduction and restructuring of certain business functions and the reduction of facilities.
 
The following table provides a summary of changes in the Company’s restructuring liability (in millions):
 
 
 
Remaining Liability as of
December 31, 2009
 
Charges
 
Cash payments
 
Adjustments
 
Remaining Liability as of
September 30, 2010
Facilities
$
4.9
 
 
$
6.8
 
 
$
(1.8
)
 
$
(1.6
)
 
$
8.3
 
Severance, contractual commitments, and other charges
4.5
 
 
1.8
 
 
(5.4
)
 
(0.3
)
 
0.6
 
Total
$
9.4
 
 
$
8.6
 
 
$
(7.2
)
 
$
(1.9
)
 
$
8.9
 
 
 
In connection with the 2009 Restructuring Plan, the Company recorded $0.2 million and $8.6 million of restructuring charges in the condensed consolidated statements of operations during the three and nine months ended September 30, 2010, respectively. The Company paid $1.4 million and $7.2 million for severance and facilities related charges associated with the 2009 Restructuring Plan during the three and nine months ended September 30, 2010, respectively. The Company recorded $4.5 million and $16.3 million in restructuring charges during the three and nine months ended September 30, 2009, for its 2009 Restructuring Plan. The Company paid $2.8 million and $6.0 million for severance related charges associated with the 2009 Restructuring Plan during the three and nine months ended September 30, 2009, respectively.
 
Restructuring charges were based on the Company's restructuring plans that were committed by management. Any changes in the estimates of executing the approved plans will be reflected in the Company's results of operations.
 
Interest and Other Income, Net
 
Interest and other income, net, consist of the following (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Interest income and expense, net
$
0.3
 
 
$
1.6
 
 
$
1.8
 
 
$
5.2
 
Other income and expense, net
(0.1
)
 
0.1
 
 
0.7
 
 
1.4
 
Total interest and other income, net
$
0.2
 
 
$
1.7
 
 
$
2.5
 
 
$
6.6
 
 
 
Interest income and expense, net, primarily includes interest income from the Company’s cash, cash equivalents, and investments and interest expense from our customer financing arrangements. Other income and expense, net, primarily includes foreign exchange gains and losses and other miscellaneous expenses such as bank fees.
Note 9 - Financing Arrangements Level 1 (Notes)
Financing Arrangements [Text Block]
Financing Arrangements
 
The Company has customer financing arrangements to sell its accounts receivable to a major third-party financing provider. The program does not and is not intended to affect the timing of revenue recognition because the Company only recognizes revenue upon sell-through. Under the financing arrangements, proceeds from the financing provider are due to the Company 30 days from the sale of the receivable. In these transactions with the financing provider, the Company surrendered control over the transferred assets. The accounts receivable were isolated from the Company and put beyond the reach of creditors, even in the event of bankruptcy. The Company does not maintain effective control over the transferred assets through obligations or rights to redeem, transfer, or repurchase the receivables after they have been transferred.
 
Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $153.1 million and $122.5 million during the three months ended September 30, 2010, and 2009, respectively, and $435.5 million and $294.9 million during the nine months ended September 30, 2010, and 2009, respectively.
 
During the three months ended September 30, 2010, and 2009, the Company received cash proceeds of $147.0 million and $101.5 million respectively, and $423.5 million and $277.2 million during the nine months ended September 30, 2010, and 2009, respectively, from the financing provider. The amounts owed by the financing provider recorded as accounts receivable on the Company’s condensed consolidated balance sheets as of September 30, 2010, and December 31, 2009, was $101.6 million and $89.8 million, respectively.
 
The portion of the receivable financed that has not been recognized as revenue is accounted for as a financing arrangement and is included in other accrued liabilities and other long-term liabilities in the condensed consolidated balance sheet. As of September 30, 2010, and December 31, 2009, the estimated cash received from the financing provider not recognized as revenue from distributors was $35.7 million and $52.6 million, respectively.
Note 10 - Derivative Instruments Level 1 (Notes)
Derivative Instruments [Text Block]
Derivative Instruments
 
The Company uses derivatives partially to offset its market exposure to fluctuations in certain foreign currencies and does not enter into derivatives for speculative or trading purposes.
 
Cash Flow Hedges
 
The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to cost of services and operating expenses. The derivatives are intended to protect the U.S. Dollar equivalent of the Company’s planned cost of services and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of less than one year. The effective portion of the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheets, 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, which was immaterial during the three and nine months ended September 30, 2010, and 2009, respectively, in interest and other income, net, on its condensed consolidated statements of operations. Cash flows from such hedges are classified as operating activities. All amounts within accumulated other comprehensive income (loss) are expected to be reclassified into earnings within the next 12 months.
 
The total fair value of the Company’s derivative assets located in other current assets on the condensed consolidated balance sheet as of September 30, 2010, and December 31, 2009, was $1.7 million and $0.2 million, respectively. The total fair value of the Company’s derivative liabilities located in other accrued liabilities on the condensed consolidated balance sheet as of September 30, 2010, and December 31, 2009, was nil and $1.5 million, respectively.
 
The Company recognized a gain of $2.9 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a loss of $1.5 million from other comprehensive income to operating expense in the condensed consolidated statements of operations during the three months ended September 30, 2010. During the nine months ended September 30, 2010, the Company recognized a loss of $1.6 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a loss of $4.8 million from other comprehensive income to operating expense in the condensed consolidated statements of operations.
 
During the three months ended September 30, 2009, the Company recognized a gain of $2.1 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a gain of $3.3 million from other comprehensive income to operating expense in the condensed consolidated statements of operations. The Company recognized a gain of $1.4 million in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a gain of $1.6 million from other comprehensive income to operating expense in the condensed consolidated statements of operations during the nine months ended September 30, 2009.
 
The ineffective portion of the Company's derivative instruments recognized in its condensed consolidated statements of operations was immaterial during the three and nine months ended September 30, 2010, and 2009.
 
Non-Designated Hedges
 
The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in interest and other income, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately two months.
 
As of September 30, 2010, the Company’s top three outstanding derivative positions by currency were as follows (in millions):
 
 
Buy
 
Buy
 
Buy
 
EUR
 
GBP
 
INR
Foreign currency forward contracts:
 
 
 
 
 
Notional amount of foreign currency
€
25.3
 
 
£
9.8
 
 
1,333.1
 
U.S dollar equivalent
$
32.3
 
 
$
14.8
 
 
$
28.9
 
Weighted-average maturity
2 months
 
 
2 months
 
 
2 months
 
 
 
During the three and nine months ended September 30, 2010, the Company recognized a gain on non-designated derivative instruments within interest and other income, net, on its condensed consolidated statements of operations of $0.5 million and a loss of $0.9 million, respectively. The Company recognized a gain of $1.8 million and $5.0 million on non-designated derivative instruments within interest and other income, net, on its condensed consolidated statements of operations during the three and nine months ended September 30, 2009, respectively.
Note 11 - Equity Level 1 (Notes)
Equity [Text Block]
Equity
 
Stock Repurchase Activities
 
In February 2010, the Company’s Board of Directors (the “Board”) approved a new stock repurchase program (the “2010 Stock Repurchase Program”) which authorized the Company to repurchase up to $1.0 billion of its common stock. This new authorization is in addition to the stock repurchase program approved by the Board in March 2008 (the “2008 Stock Repurchase Program”), which also enabled the Company to repurchase up to $1.0 billion of the Company’s common stock.
 
The Company repurchased approximately 5.0 million shares of its common stock at an average price of $26.81 per share for an aggregate purchase price of $134.9 million during the three months ended September 30, 2010, and approximately 14.3 million shares of its common stock at an average price of $27.09 per share for an aggregate purchase price of $386.7 million during the nine months ended September 30, 2010, under the two stock repurchase programs. The Company repurchased approximately 2.9 million shares of its common stock at an average price of $24.67 per share for an aggregate purchase price of $71.9 million during the three months ended September 30, 2009, and approximately 12.6 million shares of its common stock at an average price of $19.18 per share for an aggregate purchase price of $241.1 million during the nine months ended September 30, 2009, under the 2008 Stock Repurchase Program. As of September 30, 2010, there were no remaining authorized funds under the 2008 Stock Repurchase Program and $931.8 million remaining authorized funds under the 2010 Stock Repurchase Program.
 
In addition to repurchases under the Company’s stock repurchase programs, the Company repurchased common stock from its employees in connection with net issuance of shares to satisfy its tax withholding obligations for the vesting of certain RSUs and PSAs. The Company repurchased an immaterial amount of common stock from its employees in connection with net issuance of shares during the three months ended September 30, 2010, and repurchased approximately 0.1 million shares of its common stock at an average price of $25.75 per share for an aggregate purchase price of $1.9 million in connection with the net issuances during the nine months ended September 30, 2010. The Company repurchased an immaterial amount of common stock from its employees in connection with net issuance of shares during the three and nine months ended September 30, 2009.
 
All shares of common stock repurchased under the Company’s 2008 and 2010 stock repurchase programs and from its employees in connection with net issuances have been retired. Future share repurchases under the Company’s 2010 Stock Repurchase Program will be subject to a review of the circumstances in place 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. This program may be discontinued at any time.
 
Comprehensive Income Attributable to Juniper Networks
 
Comprehensive income attributable to Juniper Networks consists of the following (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Consolidated net income
$
134.3
 
 
$
83.8
 
 
$
429.3
 
 
$
94.1
 
Other comprehensive income, net of tax:
 
 
 
 
 
 
 
Change in unrealized gain (loss) on investments, net tax of nil
8.7
 
 
(0.9
)
 
7.0
 
 
1.7
 
Change in foreign currency translation adjustment, net tax of nil
6.3
 
 
4.9
 
 
(1.2
)
 
6.0
 
Total other comprehensive income, net of tax
15.0
 
 
4.0
 
 
5.8
 
 
7.7
 
Consolidated comprehensive income
149.3
 
 
87.8
 
 
435.1
 
 
101.8
 
Adjust for comprehensive income attributable to noncontrolling interest
0.2
 
 
—
 
 
(1.1
)
 
—
 
Comprehensive income attributable to Juniper Networks
$
149.5
 
 
$
87.8
 
 
$
434.0
 
 
$
101.8
 
 
 
 
The following table summarizes equity activity for the three and nine months ended September 30, 2010 (in millions):
 
 
Common Stock
& Additional
Paid-in-Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 
Non-
controlling
Interest
 
Total
Equity
Balance at December 31, 2009
$
9,060.1
 
 
$
(1.4
)
 
$
(3,236.5
)
 
$
2.6
 
 
$
5,824.8
 
Consolidated net income
—
 
 
—
 
 
163.1
 
 
1.5
 
 
164.6
 
Change in unrealized loss on investments, net tax of nil
—
 
 
(0.4
)
 
—
 
 
—
 
 
(0.4
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
(2.7
)
 
—
 
 
—
 
 
(2.7
)
Issuance of shares in connection with Employee Stock Purchase Plan
20.8
 
 
—
 
 
—
 
 
—
 
 
20.8
 
Exercise of stock options by employees, net of repurchases
101.2
 
 
—
 
 
—
 
 
—
 
 
101.2
 
Return of capital to noncontrolling interest
—
 
 
—
 
 
—
 
 
(2.0
)
 
(2.0
)
Retirement of common stock
(5.7
)
 
—
 
 
(68.7
)
 
—
 
 
(74.4
)
Repurchases related to net issuances
—
 
 
—
 
 
(1.8
)
 
—
 
 
(1.8
)
Share-based compensation expense
40.6
 
 
—
 
 
—
 
 
—
 
 
40.6
 
Adjustment related to tax benefit from employee stock option plans
50.6
 
 
—
 
 
—
 
 
—
 
 
50.6
 
Balance at March 31, 2010
9,267.6
 
 
(4.5
)
 
(3,143.9
)
 
2.1
 
 
6,121.3
 
Consolidated net income
—
 
 
—
 
 
130.5
 
 
(0.2
)
 
130.3
 
Change in unrealized loss on investments, net tax of nil
—
 
 
(1.3
)
 
—
 
 
—
 
 
(1.3
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
(4.8
)
 
—
 
 
—
 
 
(4.8
)
Exercise of stock options by employees, net of repurchases
53.7
 
 
—
 
 
—
 
 
—
 
 
53.7
 
Return of capital to noncontrolling interest
—
 
 
—
 
 
—
 
 
(1.0
)
 
(1.0
)
Shares assumed in connection with business acquisition
2.3
 
 
—
 
 
—
 
 
—
 
 
2.3
 
Retirement of common stock
(9.1
)
 
—
 
 
(168.3
)
 
—
 
 
(177.4
)
Share-based compensation expense
43.3
 
 
—
 
 
—
 
 
—
 
 
43.3
 
Adjustment related to tax benefit from employee stock option plans
5.4
 
 
—
 
 
—
 
 
—
 
 
5.4
 
Balance at June 30, 2010
9,363.2
 
 
(10.6
)
 
(3,181.7
)
 
0.9
 
 
6,171.8
 
Consolidated net income
—
 
 
—
 
 
134.5
 
 
(0.2
)
 
134.3
 
Change in unrealized gain on investments, net tax of nil
—
 
 
8.7
 
 
—
 
 
—
 
 
8.7
 
Change in foreign currency translation adjustment, net tax of nil
—
 
 
6.3
 
 
—
 
 
—
 
 
6.3
 
Issuance of shares in connection with Employee Stock Purchase Plan
21.0
 
 
—
 
 
—
 
 
—
 
 
21.0
 
Exercise of stock options by employees, net of repurchases
62.4
 
 
—
 
 
—
 
 
—
 
 
62.4
 
Return of capital to noncontrolling interest
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Retirement of common stock
(44.4
)
 
—
 
 
(90.5
)
 
—
 
 
(134.9
)
Repurchases related to net issuances
—
 
 
—
 
 
(0.1
)
 
—
 
 
(0.1
)
Share-based compensation expense
43.1
 
 
—
 
 
—
 
 
—
 
 
43.1
 
Adjustment related to tax benefit from employee stock option plans
4.3
 
 
—
 
 
—
 
 
—
 
 
4.3
 
Balance at September 30, 2010
$
9,449.6
 
 
$
4.4
 
 
$
(3,137.8
)
 
$
0.7
 
 
$
6,316.9
 
 
 
The following table summarizes equity activity for the three and nine months ended September 30, 2009 (in millions):
 
 
Common Stock
& Additional
Paid-in-Capital
 
Accumulated
Other
Comprehensive Income (Loss)
 
Accumulated
Deficit
 
Total
Equity
Balance at December 31, 2008
$
8,811.5
 
 
$
(4.2
)
 
$
(2,905.9
)
 
$
5,901.4
 
Consolidated net income
—
 
 
—
 
 
(4.5
)
 
(4.5
)
Change in unrealized loss on investments, net tax of nil
—
 
 
(3.6
)
 
—
 
 
(3.6
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
(10.5
)
 
—
 
 
(10.5
)
Issuance of shares in connection with Employee Stock Purchase Plan
19.3
 
 
—
 
 
—
 
 
19.3
 
Exercise of stock options by employees, net of repurchases
3.3
 
 
—
 
 
—
 
 
3.3
 
Retirement of common stock
(0.1
)
 
—
 
 
(119.7
)
 
(119.8
)
Share-based compensation expense
33.6
 
 
—
 
 
—
 
 
33.6
 
Adjustment related to tax benefit from employee stock option plans
10.5
 
 
—
 
 
—
 
 
10.5
 
Balance at March 31, 2009
8,878.1
 
 
(18.3
)
 
(3,030.1
)
 
5,829.7
 
Consolidated net income
—
 
 
—
 
 
14.7
 
 
14.7
 
Change in unrealized gain on investments, net tax of nil
—
 
 
6.2
 
 
—
 
 
6.2
 
Change in foreign currency translation adjustment, net tax of nil
—
 
 
11.6
 
 
—
 
 
11.6
 
Exercise of stock options by employees, net of repurchases
29.2
 
 
—
 
 
—
 
 
29.2
 
Retirement of common stock
(0.4
)
 
—
 
 
(49.1
)
 
(49.5
)
Share-based compensation expense
33.5
 
 
—
 
 
—
 
 
33.5
 
Adjustment related to tax benefit from employee stock option plans
(58.6
)
 
—
 
 
—
 
 
(58.6
)
Balance at June 30, 2009
8,881.8
 
 
(0.5
)
 
(3,064.5
)
 
5,816.8
 
Consolidated net income
—
 
 
—
 
 
83.8
 
 
83.8
 
Change in unrealized loss on investments, net tax of nil
—
 
 
(0.9
)
 
—
 
 
(0.9
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
4.9
 
 
—
 
 
4.9
 
Issuance of shares in connection with Employee Stock Purchase Plan
19.8
 
 
—
 
 
—
 
 
19.8
 
Exercise of stock options by employees, net of repurchases
61.1
 
 
—
 
 
—
 
 
61.1
 
Retirement of common stock
(0.4
)
 
—
 
 
(71.5
)
 
(71.9
)
Repurchases related to net issuances
—
 
 
—
 
 
(0.2
)
 
(0.2
)
Share-based compensation expense
34.4
 
 
—
 
 
—
 
 
34.4
 
Adjustment related to tax benefit from employee stock option plans
9.6
 
 
—
 
 
—
 
 
9.6
 
Balance at September 30, 2009
$
9,006.3
 
 
$
3.5
 
 
$
(3,052.4
)
 
$
5,957.4
 
Note 12 - Employee Benefit Plans Level 1 (Notes)
Employee Benefit Plans [Text Block]
Employee Benefit Plans
 
Share-Based Compensation Plans
 
The Company’s share-based compensation plans include the 2006 Equity Incentive Plan (the “2006 Plan”), 2000 Nonstatutory Stock Option Plan (the “2000 Plan”), Amended and Restated 1996 Stock Plan (the “1996 Plan”), as well as various equity incentive plans assumed through acquisitions. Under these plans, the Company has granted (or in the case of acquired plans, assumed) stock options, and in certain plans RSUs and PSAs. In addition, the Company’s 2008 Employee Stock Purchase Plan (the “2008 Purchase Plan”) permits eligible employees to acquire shares of the Company’s common stock at a 15% discount to the offering price (as determined in the 2008 Purchase Plan) through periodic payroll deductions of up to 10% of base compensation, subject to individual purchase limits of 6,000 shares in any twelve-month period or $25,000 worth of stock, determined at the fair market value of the shares at the time the stock purchase option is granted, in one calendar year.
 
When the 2006 Plan was adopted and approved by the Company's stockholders in May 2006, it had an initial authorized share reserve of 64.5 million shares of common stock plus the addition of any shares subject to options under the 2000 Plan and the 1996 Plan that were outstanding as of May 18, 2006, and that subsequently expire unexercised, up to a maximum of an additional 75 million shares. In the second quarter of 2010, the Company's stockholders approved an amendment to the 2006 Plan that increased the number of shares reserved for issuance thereunder by an additional 30.0 million shares. As of September 30, 2010, the 2006 Plan had 58.8 million shares subject to currently outstanding equity awards and 31.8 million shares available for future issuance.
 
In connection with the acquisition of Ankeena, the Company assumed stock option and RSU awards under the Ankeena stock plan and exchanged those awards for stock options and RSUs covering approximately 0.8 million shares of the Company's common stock, based upon an exchange ratio prescribed by the acquisition agreement. As of September 30, 2010, stock options and RSUs covering approximately 2.1 million shares of common stock were outstanding under plans assumed through the Company's past acquisitions.
 
Stock Option Activities
 
The following table summarizes the Company’s stock option activity and related information as of and for the nine months ended September 30, 2010 (in millions, except for per share amounts and years):
 
Number of Shares
 
Weighted Average
Exercise Price per Share
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Balance at January 1, 2010
67.4
 
 
$
20.84
 
 
 
 
 
Options granted
5.7
 
 
28.71
 
 
 
 
 
Options assumed (1)
0.4
 
 
29.42
 
 
 
 
 
Options canceled
(1.8
)
 
21.64
 
 
 
 
 
Options exercised
(12.2
)
 
17.94
 
 
 
 
 
Options expired
(0.7
)
 
61.71
 
 
 
 
 
Balance at September 30, 2010
58.8
 
 
$
21.66
 
 
4.2 years
 
$
526.4
 
 
 
 
 
 
 
 
 
As of September 30, 2010:
 
 
 
 
 
 
 
Vested or expected-to-vest options
55.8
 
 
$
21.56
 
 
4.1 years
 
$
505.3
 
Exercisable options
39.4
 
 
$
20.86
 
 
3.6 years
 
$
386.8
 
________________________________
(1)    
Stock options assumed in connection with the acquisition of Ankeena.
 
Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $30.35 per share as of September 30, 2010, and the exercise price multiplied by the number of related options. The pre-tax intrinsic value of options exercised, representing the difference between the fair market value of the Company’s common stock on the date of the exercise and the exercise price of each option, was $37.5 million and $133.9 million for the three and nine months ended September 30, 2010, respectively. Total fair value of options vested for the three and nine months ended September 30, 2010, was $19.2 million and $66.3 million, respectively.
 
Restricted Stock Units and Performance Share Awards Activities
 
RSUs generally vest over a period of three to four years from the date of grant, and PSAs granted generally vest after three years provided that certain annual performance targets and other vesting criteria are met. Until vested, RSUs and PSAs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding.
 
The following table summarizes information about the Company’s RSUs and PSAs as of and for the nine months ended September 30, 2010 (in millions, except per share amounts and years):
 
 
Outstanding RSUs and PSAs
 
Number of Shares
 
Weighted Average Grant-Date Fair Value per Share
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Balance at January 1, 2010
9.1
 
 
$
21.76
 
 
 
 
 
RSUs granted
3.4
 
 
29.27
 
 
 
 
 
RSUs assumed (1)
0.4
 
 
31.18
 
 
 
 
 
PSAs granted (2)
3.5
 
 
28.73
 
 
 
 
 
RSUs vested
(1.6
)
 
26.01
 
 
 
 
 
PSAs vested
(0.4
)
 
20.64
 
 
 
 
 
RSUs canceled
(0.5
)
 
24.72
 
 
 
 
 
     PSAs canceled
(0.3
)
 
20.92
 
 
 
 
 
Balance at September 30, 2010:
13.6
 
 
$
25.13
 
 
1.8 years
 
$
411.4
 
 
 
 
 
 
 
 
 
As of September 30, 2010:
 
 
 
 
 
 
 
Vested and expected-to-vest RSUs and PSAs
10.4
 
 
$
24.83
 
 
1.7 years
 
$
315.7
 
________________________________
(1)    
RSUs assumed in connection with the acquisition of Ankeena.
(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 1.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 3.5 million shares.
 
Employee Stock Purchase Plan
 
The Company's 2008 Purchase Plan is implemented in a series of offering periods, each six months in duration, or a shorter period as determined by the Board. Under the 2008 Purchase Plan, employees purchased approximately 1.0 million shares at an average per share price of $21.30 for the three months ended September 30, 2010, and 2.0 million shares at an average per share price of $21.20 in the nine months ended September 30, 2010. Employees purchased approximately 1.6 million shares of common stock through the 2008 Purchase Plan at an average price of $12.28 per share in the three and nine months ended September 30, 2009.
 
Employees purchased approximately 1.6 million shares of common stock through the 1999 Employee Stock Purchase Plan at an average price of $12.04 per share in the nine months ended September 30, 2009. Effective February 1, 2009, immediately following the conclusion of the offering period ended January 30, 2009, the 1999 Employee Stock Purchase Plan was discontinued, and no shares remained available for future issuance.
 
As of September 30, 2010, approximately 2.0 million shares had been issued under the 2008 Purchase Plan, and 8.4 million shares remained available for future issuance under the 2008 Purchase Plan.
 
Shares Available for Grant
 
The following table presents the stock grant activity for the nine months ended September 30, 2010, and the total number of shares available for grant under the 2006 Plan as of September 30, 2010 (in millions):
 
Number of Shares
Balance at January 1, 2010
18.0
 
Additional authorized share reserve approved by stockholders
30.0
 
RSUs and PSAs granted (1)
(14.5
)
Options granted
(5.7
)
RSUs canceled (1)
1.5
 
Options canceled (2)
1.8
 
Options expired (2)
0.7
 
Balance at September 30, 2010
31.8
 
________________________________
(1)    
RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted the maximum number of shares that may be issued pursuant to the award over its full term.
(2)    
Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired unexercised after May 18, 2006, which become available for grant under the 2006 Plan according to its terms.
 
Common Stock Reserved for Future Issuance
 
As of September 30, 2010, the Company had reserved an aggregate of approximately 112.6 million shares of common stock for future issuance under its equity incentive plans and the 2008 Purchase Plan.
 
Share-Based Compensation Expense
 
The Company determines the fair value of its stock options utilizing the Black-Scholes-Merton (“BSM”) option-pricing model, which incorporates various assumptions including volatility, risk-free interest rate, expected life, and dividend yield. The expected volatility is based on the implied volatility of market-traded options on the Company’s common stock, adjusted for other relevant factors including historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options. The expected life of a stock option award is based on historical experience and on the terms and conditions of the stock awards granted to employees, as well as the potential effect from stock options that had not been exercised at the time. Since 2006, the Company has granted stock option awards that have a maximum contractual life of seven years from the date of grant. Prior to 2006, stock option awards generally had a ten-year contractual life from the date of grant.
 
The Company determines the fair value of its RSUs and PSAs based upon the fair market value of the shares of the Company’s common stock at the date of grant.
 
The assumptions used and the resulting estimates of fair value for employee stock options and the employee stock purchase plan during the three and nine months ended September 30, 2010, and 2009 were:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Employee Stock Options:
 
 
 
 
 
 
 
Volatility factor
39% - 42%
 
43% - 46%
 
33% - 42%
 
43% - 58%
Risk-free interest rate
1.1% - 1.4%
 
0.4% - 4.2%
 
1.1% - 2.2%
 
0.4% - 4.2%
Expected life (years)
4.3
 
4.3 - 5.7
 
4.3
 
4.3 - 5.8
Dividend yield
—
 
—
 
—
 
—
Fair value per share
$8.93 - $9.81
 
$9.52 - $10.25
 
$7.83 - $30.36
 
$6.02 - $10.49
 
 
 
 
 
 
 
 
Employee Stock Purchase Plan:
 
 
 
 
 
 
 
Volatility factor
36%
 
46%
 
35% - 36%
 
46% - 58%
Risk-free interest rate
0.2%
 
0.3%
 
0.2%
 
0.3% - 0.4%
Expected life (years)
0.5
 
0.5
 
0.5
 
0.5
Dividend yield
—
 
—
 
—
 
—
Weighted-average fair value per share
$7.09
 
$7.35
 
$6.19 - $7.09
 
$4.51 - $7.35
 
The Company expenses the cost of its stock options, on a straight line basis, over the vesting period. The Company expenses the cost of its RSUs ratably over the vesting period. The Company recognizes PSA expense over the vesting period, beginning in the period in which the performance conditions are set. The weighted-average fair value per share of RSUs and PSAs granted during these periods were:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Weighted-average fair value per share:
 
 
 
 
 
 
 
RSUs
$
28.18
 
 
$
25.86
 
 
$
29.27
 
 
$
16.09
 
PSAs
$
27.76
 
 
$
26.30
 
 
$
28.73
 
 
$
17.18
 
 
 
The Company’s share-based compensation expense associated with stock options, employee stock purchases, RSUs, and PSAs is recorded in the following cost and expense categories for the three and nine months ended September 30, 2010, and 2009 (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Cost of revenues - Product
$
1.0
 
 
$
0.9
 
 
$
3.1
 
 
$
2.8
 
Cost of revenues - Service (1)
3.2
 
 
2.6
 
 
10.0
 
 
7.6
 
Research and development
19.3
 
 
14.3
 
 
55.0
 
 
44.0
 
Sales and marketing (1)
13.4
 
 
11.0
 
 
39.0
 
 
31.8
 
General and administrative
7.5
 
 
5.5
 
 
22.5
 
 
15.2
 
Total
$
44.4
 
 
$
34.3
 
 
$
129.6
 
 
$
101.4
 
________________________________
(1)    
Prior period information has been reclassified to conform to the current period's presentation.
 
The following table summarizes share-based compensation expense by award type (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Options
$
20.5
 
 
$
20.5
 
 
$
61.4
 
 
$
60.0
 
Assumed options
—
 
 
—
 
 
0.6
 
 
—
 
Other acquisition-related compensation
1.3
 
 
—
 
 
2.6
 
 
—
 
Assumed RSUs
—
 
 
—
 
 
0.5
 
 
—
 
RSUs and PSAs
19.1
 
 
10.3
 
 
54.6
 
 
30.3
 
Employee stock purchase plan
3.5
 
 
3.5
 
 
9.9
 
 
11.1
 
Total
$
44.4
 
 
$
34.3
 
 
$
129.6
 
 
$
101.4
 
 
As of September 30, 2010, approximately $118.2 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options will be recognized over a weighted-average period of approximately 2.4 years while approximately $130.0 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs and PSAs will be recognized over a weighted-average period of approximately 2.4 years.
 
401(k) Plan
 
The Company maintains a savings and retirement plan qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Employees meeting the eligibility requirements, as defined, may contribute up to the statutory limits of the year. The Company has matched employee contributions since January 1, 2001, currently matching 25% of all eligible employee contributions. All matching contributions vest immediately. The Company’s matching contributions to the plan totaled $3.2 million and $10.7 million in the three and nine months ended September 30, 2010, respectively, and $2.8 million and $9.8 million in the three and nine months ended September 30, 2009, respectively.
 
Deferred Compensation Plan
 
The Company’s non-qualified deferred compensation (“NQDC”) plan is an unfunded and unsecured deferred compensation arrangement. Under the NQDC plan, officers and other senior employees may elect to defer a portion of their compensation and contribute such amounts to one or more investment funds. The NQDC plan assets are included within investments, and offsetting obligations are included within accrued compensation on the condensed consolidated balance sheet. The investments are considered trading securities and are reported at fair value. The realized and unrealized holding gains and losses related to these investments are recorded in interest and other income, net, and the offsetting compensation expense are recorded as operating expenses in the condensed consolidated results of operations. The deferred compensation liability under the NQDC plan was approximately $7.2 million and $4.7 million as of September 30, 2010, and December 31, 2009, respectively.
Note 13 - Segments Level 1 (Notes)
Segments [Text Block]
Segments
 
The Company’s chief operating decision maker (“CODM”) allocates resources and assesses performance based on financial information by the Company’s business groups. The Company’s operations are organized into two reportable segments: Infrastructure and SLT. The Infrastructure segment includes products from the E-, M-, MX-, and T-series router product families, EX-series switching products, as well as the circuit-to-packet products. The SLT segment consists primarily of Firewall virtual private network (“Firewall”) systems and appliances, SRX service gateways, secure socket layer (“SSL”) virtual private network (“VPN”) appliances, intrusion detection and prevention (“IDP”) appliances, the J-series router product family and wide area network (“WAN”) optimization platforms.
 
The primary financial measure used by the CODM in assessing performance of the segments is segment operating income, which includes certain cost of revenues, research and development (“R&D”) expenses, sales and marketing expenses, and general and administrative (“G&A”) expenses. The CODM does not allocate certain miscellaneous expenses to its segments even though such expenses are included in the Company’s management operating income.
 
For arrangements with both Infrastructure and SLT products and services, revenue is attributed to the segment based on the underlying purchase order, contract, or sell-through report. Direct costs and operating expenses, such as standard costs, R&D, and product marketing expenses, are generally applied to each segment. Indirect costs, such as manufacturing overhead and other cost of revenues, are allocated based on standard costs. Indirect operating expenses, such as sales, marketing, business development, and G&A expenses are generally allocated to each segment based on factors including headcount, usage, and
revenue. The CODM does not allocate share-based compensation, amortization of purchased intangible assets, restructuring and impairment charges, gains or losses on equity investments, other net income and expense, income taxes, or certain other charges to the segments.
 
The following table summarizes financial information for each segment used by the CODM (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Net revenues:
 
 
 
 
 
 
 
Infrastructure:
 
 
 
 
 
 
 
Product
$
607.6
 
 
$
472.0
 
 
$
1,753.9
 
 
$
1,396.2
 
Service
136.5
 
 
123.2
 
 
389.2
 
 
350.1
 
Total Infrastructure revenues
744.1
 
 
595.2
 
 
2,143.1
 
 
1,746.3
 
SLT:
 
 
 
 
 
 
 
Product
193.6
 
 
162.1
 
 
542.5
 
 
432.7
 
Service
74.7
 
 
66.6
 
 
217.7
 
 
195.5
 
Total SLT revenues
268.3
 
 
228.7
 
 
760.2
 
 
628.2
 
Total net revenues
1,012.4
 
 
823.9
 
 
2,903.3
 
 
2,374.5
 
Operating income:
 
 
 
 
 
 
 
Infrastructure
179.9
 
 
126.9
 
 
537.6
 
 
358.8
 
SLT
64.6
 
 
44.4
 
 
152.3
 
 
79.6
 
Total management operating income
244.5
 
 
171.3
 
 
689.9
 
 
438.4
 
Amortization of purchased intangible assets (1)
(2.4
)
 
(2.7
)
 
(5.0
)
 
(13.4
)
Share-based compensation expense
(44.4
)
 
(34.3
)
 
(129.6
)
 
(101.4
)
Share-based payroll tax expense
(0.5
)
 
(0.8
)
 
(3.8
)
 
(1.5
)
Restructuring charges
(0.2
)
 
(4.5
)
 
(8.6
)
 
(16.3
)
Acquisition-related and other charges
(1.5
)
 
(1.0
)
 
(2.1
)
 
(1.0
)
Total operating income
195.5
 
 
128.0
 
 
540.8
 
 
304.8
 
Interest and other income, net
0.2
 
 
1.7
 
 
2.5
 
 
6.6
 
Gain (loss) on equity investment
—
 
 
—
 
 
3.2
 
 
(3.3
)
Income before income taxes and noncontrolling interest
$
195.7
 
 
$
129.7
 
 
$
546.5
 
 
$
308.1
 
________________________________
(1)    
Amount includes amortization expense of purchased intangible assets in operating expenses and in cost of revenues.
 
Depreciation expense allocated to the Infrastructure segment was $27.8 million and $78.9 million in the three and nine months ended September 30, 2010, respectively, and $24.1 million and $69.1 million in the three and nine months ended September 30, 2009, respectively. The depreciation expense allocated to the SLT segment was 9.4 million and $28.5 million in the three and nine months ended September 30, 2010, respectively, and $9.7 million and $29.4 million in the three and nine months ended September 30, 2009, respectively.
 
The Company attributes revenues to geographic region based on the customer’s ship-to location. The following table shows net revenues by geographic region (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Americas:
 
 
 
 
 
 
 
United States
$
481.2
 
 
$
380.3
 
 
$
1,368.0
 
 
$
1,045.4
 
Other
51.6
 
 
42.5
 
 
147.4
 
 
128.0
 
Total Americas
532.8
 
 
422.8
 
 
1,515.4
 
 
1,173.4
 
Europe, Middle East and Africa
275.9
 
 
243.2
 
 
829.5
 
 
698.3
 
Asia Pacific
203.7
 
 
157.9
 
 
558.4
 
 
502.8
 
Total
$
1,012.4
 
 
$
823.9
 
 
$
2,903.3
 
 
$
2,374.5
 
 
During the three months ended September 30, 2010, no single customer accounted for greater than 10.0% of the Company's net revenues, and during the nine months ended September 30, 2010, Verizon Communications, Inc. (“Verizon”) accounted for 10.0% of net revenues. During the three months ended September 30, 2009, Verizon accounted for 10.4% of net revenues. No single customer accounted for greater than 10.0% or more of the Company’s net revenues during the nine months ended September 30, 2009.
 
The Company tracks assets by physical location. The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of September 30, 2010, and December 31, 2009, were attributable to U.S. operations. As of September 30, 2010, and December 31, 2009, property and equipment, held in the U.S. as a percentage of total property and equipment was approximately 80.0%. Although management reviews asset information on a corporate level and allocates depreciation expense by segment, the CODM does not review asset information on a segment basis.
Note 14 - Income Taxes Level 1 (Notes)
Income Tax [Text Block]
Income Taxes
 
The Company recorded a tax provision of $61.4 million and $45.9 million for the three months ended September 30, 2010, and 2009, or effective tax rates of 31% and 35%, respectively. The Company recorded a tax provision of $117.2 million and $214.0 million for the nine months ended September 30, 2010, and 2009, or effective tax rates of 21% and 69%, respectively.
 
The effective tax rates for the three and nine months ended September 30, 2010, differ from the federal statutory rate of 35% primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates, and a $54.1 million income tax benefit recorded during the Company's first quarter resulting from a change in the Company's estimate of unrecognized tax benefits related to share-based compensation. The change in estimate was a result of the taxpayer favorable ruling by the U.S. Court of Appeals for the Ninth Circuit (the “Court”) in Xilinx Inc. v. Commissioner in March 2010. These benefits were partially offset by charges for increases in the valuation allowance against the Company's California deferred tax assets of approximately $3.2 million and $8.4 million in the three and nine months ended September 30, 2010, respectively.
 
The effective tax rates for the three and nine months ended September 30, 2009, differ from the federal statutory rate of 35% primarily due to three income tax charges: a $4.6 million charge in the Company's third quarter of 2009 related to an investigation by the Indian tax authorities, a $52.1 million charge in the Company’s second quarter of 2009, related to a change in the Company’s estimate of unrecognized tax benefits as a result of the original decision reached in May of 2009 by the Court in Xilinx Inc. v. Commissioner, which was not held in favor of the taxpayer, and a $61.8 million charge which resulted from changes in California income tax laws enacted during the Company’s first quarter of 2009. The tax rates for the three and nine month periods ended September 30, 2009, were favorably impacted by the benefit of earnings in foreign jurisdictions, which are subject to lower tax rates, and the federal R&D credit.
 
The gross unrecognized tax benefits decreased by approximately $68.3 million for the nine months ended September 30, 2010. Interest and penalties for the same period decreased by approximately $5.1 million. Interest and penalties accrued for the three months ended September 30, 2010, were not significant. The decrease in the gross unrecognized tax benefits and the accrued interest and penalties is primarily related to the change in estimate during the Company's first quarter of 2010, resulting from the Court's decision in Xilinx v. Commissioner referenced above.
 
The Company is currently under examination by the Internal Revenue Service ("IRS") for the 2004 through 2006 tax years, the China tax authorities for the 2009 tax year, and the France tax authorities for the 2007 through 2009 tax years. The Company is also subject to two separate ongoing examinations by the India tax authorities for the 2004 tax year and 2004 through 2008 tax years, respectively, and has received an inquiry from the Hong Kong tax authorities for the 2002 through 2008 tax years.
Additionally, the Company has not reached a final resolution with the IRS on an adjustment it proposed for the 1999 and 2000 tax years. The Company is not aware of any other income tax examination by taxing authorities in any other major jurisdictions in which it files income tax returns as of September 30, 2010.
 
In 2009, as part of the on-going 2004 IRS audit, the Company received a proposed adjustment related to the license of acquired intangibles under an intercompany R&D cost sharing arrangement. In March 2009 and April 2010, the Company received assessments from the Hong Kong tax authorities specifically related to inquiries of the 2002 and 2003 tax years, respectively. In December 2008, the Company received a proposed adjustment from the India tax authorities related to the 2004 tax year.
 
In July 2009, the India tax authorities commenced a separate investigation of 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 the India tax authorities may issue an initial assessment that is substantially higher than this amount. As a result, in accordance with the administrative and judicial process in India, the Company may be required to make payments that are substantially higher than the amount accrued in order to ultimately settle this issue. The Company strongly believes that any assessment it may receive in excess of the amount accrued would be inconsistent with applicable India tax laws and intends to defend this position vigorously. The Company is pursuing all available administrative procedures relative to the matters referenced above. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to these proposed adjustments, and the ultimate resolution of these matters is unlikely to have a material effect on its consolidated financial condition or results of operations; however, there is a possibility that an adverse outcome of these matters could have a material effect on its consolidated financial condition and results of operations. For more information, please see Note 15, Commitments and Contingencies, under the heading “IRS Notices of Proposed Adjustments.”
 
The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of the gross unrecognized tax benefits will decrease by approximately $7.1 million within the next twelve months due to lapses of applicable statutes of limitation in multiple jurisdictions that the Company operated in. However, at this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to the remaining unrecognized tax liabilities due to uncertainties in the timing of tax audit outcomes.
Note 15 - Commitments and Contingencies Level 1 (Notes)
Commitments and Contingencies [Text Block]
Commitments and Contingencies
 
Commitments
 
The following table summarizes the Company’s future principal contractual obligations as of September 30, 2010 (in millions):
 
Total
 
2010
 
2011
 
2012
 
2013
 
2014
 
Thereafter
 
Other
Operating leases
$
278.8
 
 
$
13.3
 
 
$
45.8
 
 
$
40.6
 
 
$
31.1
 
 
$
25.8
 
 
$
122.2
 
 
$
—
 
Sublease rental income
(0.2
)
 
(0.2
)
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Purchase commitments
186.0
 
 
186.0
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Tax liabilities
102.2
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
102.2
 
Other contractual obligations
57.9
 
 
28.6
 
 
18.0
 
 
9.5
 
 
1.8
 
 
—
 
 
—
 
 
—
 
Total
$
624.7
 
 
$
227.7
 
 
$
63.8
 
 
$
50.1
 
 
$
32.9
 
 
$
25.8
 
 
$
122.2
 
 
$
102.2
 
 
 
Operating Leases
 
The Company leases its facilities under operating leases that expire at various times, the longest of which expires in November 22, 2022. Future minimum payments under the non-cancelable operating leases, net of committed sublease income, totaled $278.6 million as of September 30, 2010. Rent expense was $14.0 million and $41.8 million for the three and nine months ended September 30, 2010, respectively, and $14.2 million and $42.6 million for the three and nine months ended September 30, 2009, respectively.
 
Purchase Commitments
 
In order to reduce manufacturing lead times and ensure adequate component supply, contract manufacturers utilized by the Company place non-cancelable, non-returnable (“NCNR”) orders for components based on the Company’s build forecasts. As
of September 30, 2010, there were NCNR component orders placed by the contract manufacturers with a value of $186.0 million. The contract manufacturers use the components to build products based on the Company’s forecasts and customer purchase orders received by the Company. Generally, the Company does not own the components and title to the products transfers from the contract manufacturers to the Company and immediately to the Company’s customers upon delivery at a designated shipment location. If the components remain unused or the products remain unsold for specified periods, the Company may incur carrying charges or obsolete materials charges for components that the contract manufacturers purchased to build products to meet the Company’s forecast or customer orders. As of September 30, 2010, the Company had accrued $21.2 million based on its estimate of such charges.
 
Tax Liabilities
 
As of September 30, 2010, the Company had $102.2 million included in current and long-term liabilities in the condensed consolidated balance sheet for unrecognized tax positions. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to the additional $102.2 million in liability due to uncertainties in the timing of tax audit outcomes.
 
Other Contractual Obligations
 
As of September 30, 2010, other contractual obligations primarily consisted of $26.9 million of indemnity-related and service related escrows, required by certain acquisitions completed in 2005 and 2010, $14.1 million remaining balance for a data center hosting agreement that requires payments through the end of April 2013, $9.1 million for license and service agreements, and $7.7 million under a software subscription agreement that requires payments through the end of January 2011.
 
Guarantees
 
The Company enters into agreements with customers that contain indemnification provisions relating to potential situations where claims could be alleged that the Company’s products infringe the intellectual property rights of a third-party. Other guarantees or indemnification arrangements include guarantees of product and service performance, guarantees related to third-party customer-financing arrangements, and standby letters of credit for certain lease facilities. As of September 30, 2010, the Company had $22.4 million in guarantees and standby letters of credit and recorded a liability of $8.8 million related to a third-party customer-financing guarantee. As of December 31, 2009, the Company had $34.0 million in guarantees and standby letters of credit along with a liability of $21.9 million related to a third-party customer-financing guarantee.
 
Legal Proceedings
 
The Company is subject to legal claims and litigation arising in the ordinary course of business, such as employment or intellectual property claims, including the matters described below. The outcome of any such matters is currently not determinable. Although the Company does not expect that any such legal claims or litigation will ultimately have a material adverse effect on its consolidated financial condition or results of operations, an adverse result in one or more of such matters could negatively affect the Company’s consolidated financial results in the period in which they occur.
 
Federal Securities Class Action
 
On July 14, 2006, and August 29, 2006, two purported class actions were filed in the Northern District of California against the Company and certain of the Company’s current and former officers and directors. On November 20, 2006, the Court consolidated the two actions as In re Juniper Networks, Inc. Securities Litigation, No. C06-04327-JW, and appointed the New York City Pension Funds as lead plaintiffs. The lead plaintiffs filed a Consolidated Class Action Complaint on January 12, 2007, and filed an Amended Consolidated Class Action Complaint on April 9, 2007. The Amended Consolidated Complaint alleges that the defendants violated federal securities laws by manipulating stock option grant dates to coincide with low stock prices and issuing false and misleading statements including, among others, incorrect financial statements due to the improper accounting of stock option grants. The Amended Consolidated Complaint asserts claims for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 on behalf of all persons who purchased or otherwise acquired Juniper Networks’ publicly-traded securities from July 12, 2001, through and including August 10, 2006. Plaintiffs seek unspecified damages in an unspecified amount. On June 7, 2007, the defendants filed a motion to dismiss certain of the claims, and a hearing was held on September 10, 2007. On March 31, 2008, the Court issued an order granting in part and denying in part the defendants’ motion to dismiss. The order dismissed with prejudice plaintiffs’ section 10(b) claim to the extent it was based on challenged statements made before July 14, 2001. The order also dismissed, with leave to amend, plaintiffs’ section 10(b) claim against
Pradeep Sindhu. The order upheld all of plaintiffs’ remaining claims. Plaintiffs did not amend their complaint.
 
On September 25, 2009, the Court certified a plaintiff class consisting of all persons and entities who purchased or otherwise acquired the Company’s securities from July 11, 2003 to August 10, 2006 inclusive, and were damaged thereby, including those who received or acquired Juniper Networks’ common stock issued pursuant to the registration statement on SEC Form S-4, dated March 10, 2004, for the Company’s merger with NetScreen Technologies Inc. and purchasers of Zero Coupon Convertible Senior Notes due June 15, 2008 issued pursuant to a registration statement on SEC Form S-3 dated November 20, 2003. Excluded from the class are the defendants and the current and former officers and directors of the Company, their immediate families, their heirs, successors, or assigns and any entity controlled by any such person.
 
On February 5, 2010, the Company and the lead plaintiffs entered into an agreement in principle to settle the claims against the Company and each of the Company's current and former officers and directors. The settlement was contingent upon final approval by the Court. On April 12, 2010, the Court granted preliminary approval of the proposed settlement. On August 30, 2010, the Court held a fairness hearing to consider whether to grant final approval of the settlement. On August 31, 2010, the Court granted final approval of the settlement and issued a Final Judgment and Order of Dismissal with Prejudice. Under the settlement, the claims against the Company and its officers and directors were dismissed with prejudice and released in exchange for a $169.0 million cash payment by the Company. The Company considered the proposed payment to be probable and reasonably estimable and, therefore, recorded the cash settlement amount as a pre-tax operating expense in its consolidated statement of operations for the fourth quarter ended December 31, 2009.
 
IPO Allocation Case
 
In December 2001, a class action complaint was filed in the United States District Court for the Southern District of New York against the Goldman Sachs Group, Inc., Credit Suisse First Boston Corporation, FleetBoston Robertson Stephens, Inc., Royal Bank of Canada (Dain Rauscher Wessels), SG Cowen Securities Corporation, UBS Warburg LLC (Warburg Dillon Read LLC), Chase (Hambrecht & Quist LLC), J.P. Morgan Chase & Co., Lehman Brothers, Inc., Salomon Smith Barney, Inc., Merrill Lynch, Pierce, Fenner & Smith, Incorporated (collectively, the “Underwriters”), Juniper Networks and certain of Juniper Networks’ officers. This action was brought on behalf of purchasers of the Company’s common stock in its initial public offering in June 1999 and the Company’s secondary offering in September 1999.
 
Specifically, among other things, this complaint alleged that the prospectus pursuant to which shares of common stock were sold in the Company’s initial public offering and the Company’s subsequent secondary offering contained certain false and misleading statements or omissions regarding the practices of the Underwriters with respect to their allocation of shares of common stock in these offerings and their receipt of commissions from customers related to such allocations. Various plaintiffs have filed actions asserting similar allegations concerning the initial public offerings of approximately 300 other issuers. These various cases pending in the Southern District of New York have been coordinated for pretrial proceedings as In re Initial Public Offering Securities Litigation, 21 MC 92. In April 2002, the plaintiffs filed a consolidated amended complaint in the action against the Company, alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
 
The parties have reached a global settlement of the litigation. On October 5, 2009, the Court entered an Opinion and Order granting final approval of the settlement. Under the settlement, the insurers are to pay the full amount of settlement share allocated to the Company, and the Company will bear no financial liability. The Company, as well as the officer and director defendants who were previously dismissed from the action pursuant to tolling agreements, will receive complete dismissals from the case. Certain objectors have appealed the Court's October 5, 2009, final order to the Second Circuit Court of Appeals.
 
IRS Notices of Proposed Adjustments
 
In 2007, the IRS opened an examination of the Company’s U.S. federal income tax and employment tax returns for the 2004 fiscal year. Subsequently, the IRS extended their examination of the Company’s employment tax returns to include fiscal years 2005 and 2006. As of September 30, 2010, the IRS has not yet concluded its examinations of these returns. In September 2008, as part of its ongoing audit of the U.S. federal income tax return, the IRS issued a Notice of Proposed Adjustment (“NOPA”) regarding the Company’s business credits. The Company believes that it has adequately provided for any reasonably foreseeable outcome related to this proposed adjustment.
 
In July 2009, the Company received a NOPA from the IRS claiming that the Company owes additional taxes, plus interest and possible penalties, for the 2004 tax year based on a transfer pricing transaction related to the license of acquired intangibles under an intercompany R&D cost sharing arrangement. The asserted changes to the Company’s 2004 tax year would affect the
Company’s income tax liabilities in tax years subsequent to 2003. Because of the NOPA, the estimated incremental tax liability would be approximately $807.0 million, excluding interest and penalties. The Company has filed a protest to the proposed deficiency with the IRS, which has been referred to the Appeals Division of the IRS; however an Appeals conference has not yet been scheduled. The Company strongly believes the IRS’ position with regard to this matter is inconsistent with applicable tax laws and existing Treasury regulations, and that the Company’s previously reported income tax provision for the year in question is appropriate. However, there can be no assurance that this matter will be resolved in the Company’s favor. Regardless of whether this matter is resolved in the Company’s favor, the final resolution of this matter could be expensive and time-consuming to defend and/or settle. While the Company believes it has provided adequately for this matter, there is a possibility that an adverse outcome of the matter could have a material effect on its results of operations and financial condition.
 
The Company has not reached a final resolution with the IRS on an adjustment the IRS proposed for the 1999 and 2000 tax years. The Company is also under routine examination by certain state and non-U.S. tax authorities. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to these audits.
Note 16 - Joint Venture Level 1 (Notes)
Joint Venture [Text Block]
Joint Venture
 
In 2009, the Company entered into an agreement to form a joint venture to provide a combined carrier Ethernet-based solution with NSN. Since inception, the Company has had a 60 percent interest in the joint venture. Both NSN and Juniper Networks are entitled to appoint two board members to the board of the joint venture. The board shall consist of four board members at all times.
 
Given the Company’s majority ownership interest in the joint venture, the venture’s financial results have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded to reflect the noncontrolling investor’s interest in the venture’s results. All intercompany transactions have been eliminated, with the exception of the noncontrolling interest.
Note 17 - Subsequent Events Level 1 (Notes)
Subsequent Events [Text Block]
Subsequent Events
 
Stock Repurchases
 
Subsequent to September 30, 2010, through the filing of this report, the Company repurchased and retired approximately 2.9 million shares of its common stock for approximately $92.6 million under its 2010 Stock Repurchase program at an average purchase price of $31.85 per share. The Company's 2010 Stock Repurchase Program had remaining authorized funds of $839.2 million as of the report filing date. Purchases under the Company's 2010 Stock Repurchase Program are subject to a 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.
Note 2 - Summary of Significant Accounting Policies Level 2 (Policies)
Revenue Recognition Policy including ASU 2010-17 Topic 605 
Revenue Recognition
 
In October 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2009-13, Topic 605 - Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”). ASU 2009-13 changes the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. Under the new standard, the Company allocates the total arrangement consideration to each separable element of an arrangement based upon the relative selling price of each element. Arrangement consideration allocated to undelivered elements is deferred until delivery. Concurrently with issuing ASU 2009-13, the FASB also issued ASU No. 2009-14, Topic 985 - Certain Revenue Arrangements That Include Software Elements (“ASU 2009-14”). ASU 2009-14 excludes software that is contained on a tangible product from the scope of software revenue guidance if the software component and the non-software component function together to deliver the tangible products' essential functionality. The Company early adopted these standards on a prospective basis as of the beginning of fiscal 2010 for new and materially modified arrangements originating after December 31, 2009.
 
As a result of the adoption of ASU 2009-13 and ASU 2009-14, net revenues for the three and nine months ended September 30, 2010, were approximately $50 million and $128 million higher, respectively, than the net revenues that would have been recorded under the previous accounting rules. The increase in revenues was due to recognition of revenue for products booked and shipped during these periods which consisted primarily of $31 million and $91 million for the three and nine month periods ended September 30, 2010, respectively, related to undelivered product commitments for which the Company was unable to demonstrate fair value pursuant to the previous accounting standards. The remainder of the increase in revenue for the three and nine month periods was due to products sold into multiple-year service arrangements which were recognized ratably under the previous accounting standards and for the change in the Company's allocation methodology from the residual method to the relative selling price method as prescribed by ASU 2009-13.
 
Revenue is recognized when all of the following criteria have been met:
 
•    
Persuasive evidence of an arrangement exists. The Company generally relies upon sales contracts, or agreements, and customer purchase orders to determine the existence of an arrangement.
 
•    
Delivery has occurred. The Company uses shipping terms and related documents, or written evidence of customer acceptance, when applicable, to verify delivery or performance. In instances where the Company has outstanding obligations related to product delivery or the final acceptance of the product, revenue is deferred until all the delivery and acceptance criteria have been met.
 
•    
Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment.
 
•    
Collectability is reasonably assured. The Company assesses collectability based on creditworthiness of customers as determined by our credit checks and their payment histories. The Company records accounts receivable net of allowance for doubtful accounts, estimated customer returns, and pricing credits.
 
For fiscal 2010 and future periods, pursuant to the guidance of ASU 2009-13, when a sales arrangement contains multiple elements and software and non-software components function together to deliver the tangible products' essential functionality, the Company allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonable range based on historical discounting trends for specific products and services. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Company's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors products' selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The best estimate of selling price is established considering multiple factors including, but not limited to pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles.
 
In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue, as amended.
 
The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligation, or subject to customer-specific return or refund privileges. The Company evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item, and the delivery and performance of the undelivered item is considered probable and substantially in the Company's control, the delivered element constitutes a separate unit of accounting. In circumstances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements, and the allocation of the arrangement consideration and revenue recognition is determined for the combined unit as a single unit. Allocation of the consideration is determined at arrangement inception on the basis of each unit's relative selling price. The new standards do not generally change the units of accounting for the Company's revenue transactions. The Company cannot reasonably estimate the effect of adopting these standards on future financial periods as the impact will vary depending on the nature and volume of new or materially modified deals in any given period.
 
For transactions entered into prior to January 1, 2010, revenue for arrangements with multiple elements, such as sales of products that include services, is allocated to each element using the residual method based on the VSOE of fair value of the undelivered items pursuant to ASC Topic 985-605, Software - Revenue Recognition. Under the residual method, the amount of
revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. If VSOE of one or more undelivered items does not exist, revenue from the entire arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless maintenance is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual support period.
 
The Company accounts for multiple agreements with a single customer as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement. The Company's ability to recognize revenue in the future may be affected if actual selling prices are significantly less than fair value. In addition, the Company's ability to recognize revenue in the future could be impacted by conditions imposed by its customers.
 
For sales to direct end-users, value-added resellers, and original equipment manufacturer (“OEM”) partners, the Company recognizes product revenue upon transfer of title and risk of loss, which is generally upon shipment. It is the Company's practice to identify an end-user prior to shipment to a value-added reseller. For the Company's end-users and value-added resellers, there are no significant obligations for future performance such as rights of return or pricing credits. The Company's agreements with its OEM partners may allow future rights of return. A portion of the Company's sales is made through distributors under agreements allowing for pricing credits or rights of return. Product revenue on sales made through these distributors is recognized upon sell-through, as reported by the distributors to the Company. Deferred revenue on shipments to distributors reflects the effects of distributor pricing credits and the amount of gross margin expected to be realized upon sell-through. Deferred revenue is recorded net of the related product costs of revenue.
 
The Company records reductions to revenue for estimated product returns and pricing adjustments, such as rebates and price protection, in the same period that the related revenue is recorded. The amount of these reductions is based on historical sales returns and price protection credits, specific criteria outlined in rebate agreements, and other factors known at the time. Should actual product returns or pricing adjustments differ from estimates, additional adjustments to revenue may be required. In addition, the Company reports revenue net of sales taxes.
 
Service revenues include revenue from maintenance, training, and professional services. Maintenance is offered under renewable contracts. Revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period, which is generally one to three years. Revenue from training and professional services is recognized as services are completed or ratably over the contractual period, which is generally one year or less.
 
The Company sells certain interests in accounts receivable on a non-recourse basis as part of customer financing arrangements primarily with one major financing company. Cash received under this arrangement in advance of revenue recognition is recorded as short-term debt.
Loans and Leases Receivable, Allowance for Loan Losses Policy ASU 2010-20 Topic 310 
In July 2010, the FASB issued ASU No. 2010-20, Topic 310 - Disclosure about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (“ASU 2010-20”), which improves the disclosures that an entity provides about the credit quality of its financing receivables and the related allowance for credit losses. This guidance is effective for interim and annual reporting periods ending on or after December 15, 2010. ASU 2010-20 relates to disclosure requirements only and as such does not impact the Company's consolidated results of operations or financial condition.
 
Foreign Currency Issues: Multiple Foreign Currency Exchange Rates 
In May 2010, the FASB issued ASU No. 2010-19, Topic 830 - Foreign Currency Issues: Multiple Foreign Currency Exchange Rates-An announcement made by the staff of the U.S. Securities and Exchange Commission (“ASU 2010-19”), which incorporates the SEC Staff Announcement made at the March 18, 2010 meeting of the FASB Emerging Issues Task Force (“EITF”). The Staff Announcement provided the SEC staff's view on certain foreign currency issues related to investments in Venezuela. This guidance is effective as of the announcement date, March 18, 2010. The Company's adoption of ASU 2010-19 did not have an impact on the Company's consolidated results of operations or financial condition.
 
ASU 2010-17 Topic 605 - Revenue Recognition - Milestone Method 
In April 2010, the FASB issued ASU No. 2010-17, Topic 605 - Revenue Recognition - Milestone Method (“ASU 2010-17”), which provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. The amendments in ASU 2010-17 are effective on a prospective basis for milestones achieved in fiscal years beginning on or after June 15, 2010, and interim periods within those years. Early adoption is permitted; however, if a Company elects to early adopt, the amendment must be applied retrospectively from the
beginning of the year of adoption. The Company's adoption of ASU 2010-17 is not expected to have an impact on its consolidated results of operations or financial condition.
 
Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades 
In April 2010, the FASB issued ASU No. 2010-13, Topic 718 - Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades (“ASU 2010-13”), which provides guidance on the classification of a share-based payment award as either equity or a liability. A share-based payment award that contains a condition that is not a market, performance, or service condition is required to be classified as a liability. The amendments in ASU 2010-13 are effective for fiscal years, and interim periods within those years beginning on or after December 15, 2010. The Company's adoption of ASU 2010-13 is not expected to have an impact on the Company's consolidated results of operations or financial condition.
 
ASU 2010-06 Topic 820 - Improving Disclosures about Fair Value Measurements 
In January 2010, the FASB issued ASU No. 2010-06, Topic 820 - Improving Disclosures about Fair Value Measurements (“ASU 2010-06”), which provides additional fair value measurement disclosures and clarifies certain existing disclosure requirements. Except for the requirement to disclose purchases, sales, issuances, and settlements of Level 3 measurements on a gross basis, the disclosure and clarification requirements are effective for interim and annual reporting periods beginning after December 15, 2009. The requirement to separately disclose purchases, sales, issuances, and settlements of recurring Level 3 measurements on a gross basis is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. ASU 2010-06 relates to disclosure requirements only and as such does not impact the Company's consolidated results of operations or financial condition.
Note 3 - Business Combination Level 3 (Tables)
Acquisition date fair value of the consideration [Text Block] 
Total purchase consideration for these acquisitions is summarized as follows (in millions):
 
Ankeena
 
SMobile
 
Total
Cash
$
66.5
 
 
$
69.5
 
 
$
136.0
 
Assumed stock option and RSU awards allocated to purchase price(1)
2.4
 
 
—
 
 
2.4
 
Total
$
68.9
 
 
$
69.5
 
 
$
138.4
 
________________________________
 
(1)    
The fair value of the stock option and RSU awards assumed was based on the acquired company's determined value on the acquisition date.
Purchase price allocation of acquisitions [Text Block] 
Allocation of the purchase consideration for acquisitions completed during the nine months ended September 30, 2010, is summarized as follows (in millions):
 
 
Ankeena
 
SMobile
 
Total
Net assets (liabilities) assumed
$
3.6
 
 
$
(5.0
)
 
$
(1.4
)
Intangible assets acquired
12.2
 
 
26.6
 
 
38.8
 
Goodwill
53.1
 
 
47.9
 
 
101.0
 
    Total
$
68.9
 
 
$
69.5
 
 
$
138.4
 
Intangible assets acquired [Text Block] 
The following table presents details of the intangible assets acquired through the business combinations completed during the nine months ended September 30, 2010 (in millions, except years):
 
 
 
Ankeena
 
SMobile
 
 
 
Estimated Useful Life (In Years)
 
Amount
 
Estimated Useful Life (In Years)
 
Amount
 
Total Amount
Existing technology
4.0
 
 
$
5.2
 
 
5.0
 
 
$
24.3
 
 
$
29.5
 
In-process research and development
4.0
 
 
3.8
 
 
—
 
 
—
 
 
3.8
 
Core technology
4.0
 
 
3.2
 
 
—
 
 
—
 
 
3.2
 
Customer contracts and related relationships
—
 
 
—
 
 
6.0
 
 
2.1
 
 
2.1
 
Support agreements and related relationships
—
 
 
—
 
 
6.0
 
 
0.1
 
 
0.1
 
Non-compete agreements
—
 
 
—
 
 
2.0
 
 
0.1
 
 
0.1
 
Total
4.0
 
 
$
12.2
 
 
5.0
 
 
$
26.6
 
 
$
38.8
 
Note 4 - Net Income per Share Level 3 (Tables)
Summary of calculation of basic and diluted net income per share [Text Block]
The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks common stockholders (in millions, except per share amounts):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Numerator:
 
 
 
 
 
 
 
Net income attributable to Juniper Networks
$
134.5
 
 
$
83.8
 
 
$
428.2
 
 
$
94.1
 
Denominator:
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
520.6
 
 
523.9
 
 
522.1
 
 
523.8
 
Effect of dilutive securities:
 
 
 
 
 
 
 
Employee stock awards
14.3
 
 
14.2
 
 
15.1
 
 
8.9
 
Weighted-average shares used to compute diluted net income per share
534.9
 
 
538.1
 
 
537.2
 
 
532.7
 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
 
 
 
Basic
$
0.26
 
 
$
0.16
 
 
$
0.82
 
 
$
0.18
 
Diluted
$
0.25
 
 
$
0.16
 
 
$
0.80
 
 
$
0.18
 
Note 5 - Cash, Cash Equivalents and Investments Level 3 (Tables)
Cash and cash equivalents [Text Block] 
The following table summarizes the Company's cash and cash equivalents (in millions):
 
 
As of
 
September 30, 2010
 
December 31, 2009
Cash and cash equivalents:
 
 
 
Cash:
 
 
 
Demand deposits
$
430.0
 
 
$
427.2
 
Time deposits
276.3
 
 
127.9
 
Total cash
706.3
 
 
555.1
 
Cash equivalents:
 
 
 
U.S. government securities
7.0
 
 
—
 
Certificate of deposit
5.0
 
 
—
 
Commercial paper
10.0
 
 
17.0
 
Money market funds
732.6
 
 
1,032.6
 
Total cash equivalents
754.6
 
 
1,049.6
 
Total cash and cash equivalents
$
1,460.9
 
 
$
1,604.7
 
Available-for-sale Securities [Text Block] 
The following tables summarize the Company’s unrealized gains and losses, and fair value of investments designated as trading or available-for-sale, as of September 30, 2010, and December 31, 2009 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of September 30, 2010:
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
288.4
 
 
$
0.3
 
 
$
—
 
 
$
288.7
 
Government-sponsored enterprise obligations
246.8
 
 
0.7
 
 
—
 
 
247.5
 
Foreign government debt securities
52.1
 
 
0.4
 
 
—
 
 
52.5
 
Certificate of deposit
18.6
 
 
—
 
 
—
 
 
18.6
 
Commercial paper
16.5
 
 
—
 
 
—
 
 
16.5
 
Asset-backed securities
74.1
 
 
0.1
 
 
(0.1
)
 
74.1
 
Corporate debt securities
522.5
 
 
3.5
 
 
(0.1
)
 
525.9
 
Total fixed income securities
1,219.0
 
 
5.0
 
 
(0.2
)
 
1,223.8
 
Publicly-traded equity securities
11.3
 
 
2.5
 
 
—
 
 
13.8
 
Total
$
1,230.3
 
 
$
7.5
 
 
$
(0.2
)
 
$
1,237.6
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Short-term investments
$
634.9
 
 
$
3.7
 
 
$
(0.1
)
 
$
638.5
 
Long-term investments
595.4
 
 
3.8
 
 
(0.1
)
 
599.1
 
Total
$
1,230.3
 
 
$
7.5
 
 
$
(0.2
)
 
$
1,237.6
 
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
As of December 31, 2009:
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
245.0
 
 
$
0.1
 
 
$
—
 
 
$
245.1
 
Government-sponsored enterprise obligations
212.0
 
 
0.6
 
 
(0.3
)
 
212.3
 
Foreign government debt securities
96.4
 
 
0.3
 
 
(0.1
)
 
96.6
 
Corporate debt securities
488.2
 
 
2.0
 
 
(0.3
)
 
489.9
 
Total fixed income securities
1,041.6
 
 
3.0
 
 
(0.7
)
 
1,043.9
 
Publicly-traded equity securities
10.1
 
 
—
 
 
—
 
 
10.1
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Short-term investments
$
569.5
 
 
$
1.0
 
 
$
—
 
 
$
570.5
 
Long-term investments
482.2
 
 
2.0
 
 
(0.7
)
 
483.5
 
Total
$
1,051.7
 
 
$
3.0
 
 
$
(0.7
)
 
$
1,054.0
 
 
 
Maturities of available-for-sale investments and publicly-traded securities [Text Block] 
The following table presents the Company's maturities of its available-for-sale investments and publicly-traded securities as of September 30, 2010 (in millions):
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
Fixed income securities:
 
 
 
 
 
 
 
Due within one year
$
623.6
 
 
$
1.2
 
 
$
(0.1
)
 
$
624.7
 
Due between one and five years
595.4
 
 
3.8
 
 
(0.1
)
 
599.1
 
Total fixed income securities
1,219.0
 
 
5.0
 
 
(0.2
)
 
1,223.8
 
Publicly-traded equity securities
11.3
 
 
2.5
 
 
—
 
 
13.8
 
Total
$
1,230.3
 
 
$
7.5
 
 
$
(0.2
)
 
$
1,237.6
 
Trading and available-for-sale investments in an unrealized loss position [Text Block] 
The following table presents the Company's trading and available-for sale investments that are in a continuous unrealized loss position as of September 30, 2010 (in millions):
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
Corporate debt securities
$
101.6
 
 
$
(0.1
)
 
$
19.5
 
 
$
—
 
 
$
121.1
 
 
$
(0.1
)
U.S. government securities
6.0
 
 
—
 
 
—
 
 
—
 
 
6.0
 
 
—
 
Government-sponsored enterprise obligations
17.2
 
 
—
 
 
5.0
 
 
—
 
 
22.2
 
 
—
 
Foreign government debt securities
1.2
 
 
—
 
 
5.0
 
 
—
 
 
6.2
 
 
—
 
Asset-backed securities
46.2
 
 
(0.1
)
 
—
 
 
—
 
 
46.2
 
 
(0.1
)
Total
$
172.2
 
 
$
(0.2
)
 
$
29.5
 
 
$
—
 
 
$
201.7
 
 
$
(0.2
)
Restricted cash and investments [Text Block] 
The following table summarizes the Company's cash and investments that are classified as restricted cash in the condensed consolidated balance sheets (in millions):
 
As of
 
September 30,
2010
 
December 31,
2009
Restricted cash:
 
 
 
Demand deposits
$
25.8
 
 
$
3.8
 
Total restricted cash
25.8
 
 
3.8
 
Restricted investments:
 
 
 
U.S. government securities
0.6
 
 
19.8
 
Corporate debt securities
2.7
 
 
—
 
Money market funds
50.0
 
 
30.1
 
Total restricted investments
53.3
 
 
49.9
 
Total restricted cash and investments
$
79.1
 
 
$
53.7
 
Note 6 - Fair Value Measurements Level 3 (Tables)
Assets measured at fair value on a recurring basis [Text Block] 
The following tables provide a summary of assets measured at fair value on a recurring basis and their presentation on the Company’s condensed consolidated balance sheets (in millions):
 
 
Fair Value Measurements at September 30, 2010 Using
 
 
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Trading securities:
 
 
 
 
 
 
 
Mutual funds
$
7.2
 
 
$
—
 
 
$
—
 
 
$
7.2
 
Total trading securities
7.2
 
 
—
 
 
—
 
 
7.2
 
Available-for-sale debt securities:
 
 
 
 
 
 
 
U.S. government securities (1)
$
111.1
 
 
$
185.2
 
 
$
—
 
 
$
296.3
 
Government-sponsored enterprise obligations
226.7
 
 
20.8
 
 
—
 
 
247.5
 
Foreign government debt securities
21.2
 
 
31.3
 
 
—
 
 
52.5
 
Commercial paper
—
 
 
26.5
 
 
—
 
 
26.5
 
Corporate debt securities (2)
2.7
 
 
525.9
 
 
—
 
 
528.6
 
Certificate of deposit
—
 
 
23.6
 
 
—
 
 
23.6
 
Asset-backed securities
—
 
 
74.1
 
 
—
 
 
74.1
 
Money market funds (3)
782.6
 
 
—
 
 
—
 
 
782.6
 
Total available-for-sale debt securities
1,144.3
 
 
887.4
 
 
—
 
 
2,031.7
 
Available-for-sale equity securities:
 
 
 
 
 
 
 
Technology securities
6.6
 
 
—
 
 
—
 
 
6.6
 
Total available-for-sale equity securities
6.6
 
 
—
 
 
—
 
 
6.6
 
Total available-for-sale securities
1,150.9
 
 
887.4
 
 
—
 
 
2,038.3
 
Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—
 
 
1.7
 
 
—
 
 
1.7
 
Total derivative assets
—
 
 
1.7
 
 
—
 
 
1.7
 
Total assets measured at fair value
$
1,158.1
 
 
$
889.1
 
 
$
—
 
 
$
2,047.2
 
________________________________
 
(1)    
Balance includes $0.6 million of restricted investments measured at fair market value, related to an acquisition completed in 2005. For additional information regarding the Company's restricted investments, see Note 5, Cash, Cash Equivalents, and Investments, under the heading “Restricted Cash.” Restricted investments are included in the restricted cash balance in the condensed consolidated balance sheet.
(2)    
Balance includes $2.7 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust.
(3)    
Balance includes $50.0 million of restricted investments measured at fair market value, related to the Company's D&O trust.
 
 
Fair Value Measurements at September 30, 2010 Using
 
 
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
732.6
 
 
$
22.0
 
 
$
—
 
 
$
754.6
 
Short-term investments
198.6
 
 
439.9
 
 
—
 
 
638.5
 
Long-term investments
174.2
 
 
424.9
 
 
—
 
 
599.1
 
Restricted cash
52.7
 
 
0.6
 
 
—
 
 
53.3
 
Prepaid expenses and other current assets
—
 
 
1.7
 
 
—
 
 
1.7
 
Total assets measured at fair value
$
1,158.1
 
 
$
889.1
 
 
$
—
 
 
$
2,047.2
 
 
 
Fair Value Measurements at December 31, 2009 Using
 
 
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
1,032.6
 
 
$
17.0
 
 
$
—
 
 
$
1,049.6
 
Short-term investments
101.3
 
 
469.2
 
 
—
 
 
570.5
 
Long-term investments
181.2
 
 
302.3
 
 
—
 
 
483.5
 
Restricted cash
49.9
 
 
—
 
 
—
 
 
49.9
 
Total assets measured at fair value
$
1,365.0
 
 
$
788.5
 
 
$
—
 
 
$
2,153.5
 
 
Assets measured at fair value on a nonrecurring basis [Text Block] 
The following table presents the Company’s assets that are measured at fair value on a nonrecurring basis at least annually or on a quarterly basis if impairment is indicated (in millions):
 
 
 
 
Fair Value Measurements Using
 
 
 
 
 
Carrying Value as of September 30, 2010
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
Total Loss for the Three Months Ended September 30, 2010
 
Total Loss for the Nine Months Ended September 30, 2010
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
Privately-held equity investments
$
0.7
 
 
$
—
 
 
$
—
 
 
$
0.7
 
 
$
—
 
 
$
—
 
Total
$
0.7
 
 
$
—
 
 
$
—
 
 
$
0.7
 
 
$
—
 
 
$
—
 
 
 
 
 
 
Fair Value Measurements Using
 
 
 
 
 
Carrying Value as of September 30, 2009
 
Quoted Prices in Active Markets For Identical Assets
 
Significant Other Observable Remaining Inputs
 
Significant Other Unobservable Remaining Inputs
 
Total Loss for the Three Months Ended September 30, 2009
 
Total Loss for the Nine Months Ended September 30, 2009
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
Privately-held equity investments
$
1.7
 
 
$
—
 
 
$
—
 
 
$
1.7
 
 
$
—
 
 
$
(3.3
)
Total
$
1.7
 
 
$
—
 
 
$
—
 
 
$
1.7
 
 
$
—
 
 
$
(3.3
)
Note 7 - Goodwill and Purchased Intangible Assets Level 3 (Tables)
Goodwill by segment [Text Block] 
The following table summarizes the Company's goodwill activities by segment in the nine months ended September 30, 2010 (in millions):
 
 
Infrastructure
 
SLT
 
Total
Balance as of January 1, 2010
 
 
 
 
 
Goodwill
$
1,500.5
 
 
$
3,438.1
 
 
$
4,938.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at January 1, 2010
1,500.5
 
 
2,158.1
 
 
3,658.6
 
Goodwill acquired during the nine months ended September 30, 2010
53.1
 
 
47.9
 
 
101.0
 
Balance as of September 30, 2010
 
 
 
 
 
Goodwill
1,553.6
 
 
3,486.0
 
 
5,039.6
 
Accumulated impairment losses
—
 
 
(1,280.0
)
 
(1,280.0
)
Carrying value at September 30, 2010
$
1,553.6
 
 
$
2,206.0
 
 
$
3,759.6
 
Purchased intangible assets with definite lives [Text Block] 
The following table presents the Company’s purchased intangible assets with definite lives (in millions):
 
 
Gross
 
Accumulated Amortization
 
Additions
 
Net
As of September 30, 2010:
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(378.6
)
 
$
32.7
 
 
$
34.1
 
Other
68.9
 
 
(61.5
)
 
6.1
 
 
13.5
 
Total
$
448.9
 
 
$
(440.1
)
 
$
38.8
 
 
$
47.6
 
 
 
 
 
 
 
 
 
As of December 31, 2009:
 
 
 
 
 
 
 
Technologies and patents
$
380.0
 
 
$
(376.0
)
 
$
—
 
 
$
4.0
 
Other
68.9
 
 
(59.1
)
 
—
 
 
9.8
 
Total
$
448.9
 
 
$
(435.1
)
 
$
—
 
 
$
13.8
 
Estimated future amortization expense of purchased intangible assets with definite lives [Text Block] 
The estimated future amortization expense of purchased intangible assets with definite lives for future periods is as follows (in millions):
 
Years Ending December 31,
 
Amount
2010 (remaining three months)
 
$
2.9
 
2011
 
10.4
 
2012
 
9.6
 
2013
 
9.4
 
2014
 
7.6
 
Thereafter
 
7.7
 
Total
 
$
47.6
 
Note 8 - Other Financial Information Level 3 (Tables)
Warranties [Text Block] 
Changes in the Company’s warranty reserve were as follows (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Beginning balance
$
38.3
 
 
$
35.8
 
 
$
38.2
 
 
$
40.1
 
Provisions made during the period, net
13.7
 
 
14.7
 
 
37.9
 
 
33.4
 
Change in estimate
(1.9
)
 
(1.1
)
 
(2.4
)
 
(4.5
)
Actual costs incurred during the period
(13.7
)
 
(12.1
)
 
(37.3
)
 
(31.7
)
Ending balance
$
36.4
 
 
$
37.3
 
 
$
36.4
 
 
$
37.3
 
Deferred revenue [Text Block] 
Details of the Company's deferred revenue were as follows (in millions):
 
As of
 
September 30, 2010
 
December 31, 2009
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
277.7
 
 
$
254.7
 
Distributor inventory and other sell-through items
128.2
 
 
136.6
 
Deferred gross product revenue
405.9
 
 
391.3
 
Deferred cost of product revenue
(147.7
)
 
(150.0
)
Deferred product revenue, net
258.2
 
 
241.3
 
Deferred service revenue
526.9
 
 
512.3
 
Total
$
785.1
 
 
$
753.6
 
Reported as:
 
 
 
Current
$
594.4
 
 
$
571.7
 
Long-term
190.7
 
 
181.9
 
Total
$
785.1
 
 
$
753.6
 
Changes in restructuring liability [Text Block] 
The following table provides a summary of changes in the Company’s restructuring liability (in millions):
 
 
 
Remaining Liability as of
December 31, 2009
 
Charges
 
Cash payments
 
Adjustments
 
Remaining Liability as of
September 30, 2010
Facilities
$
4.9
 
 
$
6.8
 
 
$
(1.8
)
 
$
(1.6
)
 
$
8.3
 
Severance, contractual commitments, and other charges
4.5
 
 
1.8
 
 
(5.4
)
 
(0.3
)
 
0.6
 
Total
$
9.4
 
 
$
8.6
 
 
$
(7.2
)
 
$
(1.9
)
 
$
8.9
 
Interest and other income, net [Text Block] 
Interest and other income, net, consist of the following (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Interest income and expense, net
$
0.3
 
 
$
1.6
 
 
$
1.8
 
 
$
5.2
 
Other income and expense, net
(0.1
)
 
0.1
 
 
0.7
 
 
1.4
 
Total interest and other income, net
$
0.2
 
 
$
1.7
 
 
$
2.5
 
 
$
6.6
 
Note 10 - Derivative Instruments Level 3 (Tables)
Top three outstanding derivative positions by currency [Text Block]
As of September 30, 2010, the Company’s top three outstanding derivative positions by currency were as follows (in millions):
 
 
Buy
 
Buy
 
Buy
 
EUR
 
GBP
 
INR
Foreign currency forward contracts:
 
 
 
 
 
Notional amount of foreign currency
€
25.3
 
 
£
9.8
 
 
1,333.1
 
U.S dollar equivalent
$
32.3
 
 
$
14.8
 
 
$
28.9
 
Weighted-average maturity
2 months
 
 
2 months
 
 
2 months
 
Note 11 - Equity Level 3 (Tables)
Summary of comprehensive income [Text Block] 
Comprehensive income attributable to Juniper Networks consists of the following (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Consolidated net income
$
134.3
 
 
$
83.8
 
 
$
429.3
 
 
$
94.1
 
Other comprehensive income, net of tax:
 
 
 
 
 
 
 
Change in unrealized gain (loss) on investments, net tax of nil
8.7
 
 
(0.9
)
 
7.0
 
 
1.7
 
Change in foreign currency translation adjustment, net tax of nil
6.3
 
 
4.9
 
 
(1.2
)
 
6.0
 
Total other comprehensive income, net of tax
15.0
 
 
4.0
 
 
5.8
 
 
7.7
 
Consolidated comprehensive income
149.3
 
 
87.8
 
 
435.1
 
 
101.8
 
Adjust for comprehensive income attributable to noncontrolling interest
0.2
 
 
—
 
 
(1.1
)
 
—
 
Comprehensive income attributable to Juniper Networks
$
149.5
 
 
$
87.8
 
 
$
434.0
 
 
$
101.8
 
Summary of stockholders' equity [Text Block] 
The following table summarizes equity activity for the three and nine months ended September 30, 2010 (in millions):
 
 
Common Stock
& Additional
Paid-in-Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 
Non-
controlling
Interest
 
Total
Equity
Balance at December 31, 2009
$
9,060.1
 
 
$
(1.4
)
 
$
(3,236.5
)
 
$
2.6
 
 
$
5,824.8
 
Consolidated net income
—
 
 
—
 
 
163.1
 
 
1.5
 
 
164.6
 
Change in unrealized loss on investments, net tax of nil
—
 
 
(0.4
)
 
—
 
 
—
 
 
(0.4
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
(2.7
)
 
—
 
 
—
 
 
(2.7
)
Issuance of shares in connection with Employee Stock Purchase Plan
20.8
 
 
—
 
 
—
 
 
—
 
 
20.8
 
Exercise of stock options by employees, net of repurchases
101.2
 
 
—
 
 
—
 
 
—
 
 
101.2
 
Return of capital to noncontrolling interest
—
 
 
—
 
 
—
 
 
(2.0
)
 
(2.0
)
Retirement of common stock
(5.7
)
 
—
 
 
(68.7
)
 
—
 
 
(74.4
)
Repurchases related to net issuances
—
 
 
—
 
 
(1.8
)
 
—
 
 
(1.8
)
Share-based compensation expense
40.6
 
 
—
 
 
—
 
 
—
 
 
40.6
 
Adjustment related to tax benefit from employee stock option plans
50.6
 
 
—
 
 
—
 
 
—
 
 
50.6
 
Balance at March 31, 2010
9,267.6
 
 
(4.5
)
 
(3,143.9
)
 
2.1
 
 
6,121.3
 
Consolidated net income
—
 
 
—
 
 
130.5
 
 
(0.2
)
 
130.3
 
Change in unrealized loss on investments, net tax of nil
—
 
 
(1.3
)
 
—
 
 
—
 
 
(1.3
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
(4.8
)
 
—
 
 
—
 
 
(4.8
)
Exercise of stock options by employees, net of repurchases
53.7
 
 
—
 
 
—
 
 
—
 
 
53.7
 
Return of capital to noncontrolling interest
—
 
 
—
 
 
—
 
 
(1.0
)
 
(1.0
)
Shares assumed in connection with business acquisition
2.3
 
 
—
 
 
—
 
 
—
 
 
2.3
 
Retirement of common stock
(9.1
)
 
—
 
 
(168.3
)
 
—
 
 
(177.4
)
Share-based compensation expense
43.3
 
 
—
 
 
—
 
 
—
 
 
43.3
 
Adjustment related to tax benefit from employee stock option plans
5.4
 
 
—
 
 
—
 
 
—
 
 
5.4
 
Balance at June 30, 2010
9,363.2
 
 
(10.6
)
 
(3,181.7
)
 
0.9
 
 
6,171.8
 
Consolidated net income
—
 
 
—
 
 
134.5
 
 
(0.2
)
 
134.3
 
Change in unrealized gain on investments, net tax of nil
—
 
 
8.7
 
 
—
 
 
—
 
 
8.7
 
Change in foreign currency translation adjustment, net tax of nil
—
 
 
6.3
 
 
—
 
 
—
 
 
6.3
 
Issuance of shares in connection with Employee Stock Purchase Plan
21.0
 
 
—
 
 
—
 
 
—
 
 
21.0
 
Exercise of stock options by employees, net of repurchases
62.4
 
 
—
 
 
—
 
 
—
 
 
62.4
 
Return of capital to noncontrolling interest
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Retirement of common stock
(44.4
)
 
—
 
 
(90.5
)
 
—
 
 
(134.9
)
Repurchases related to net issuances
—
 
 
—
 
 
(0.1
)
 
—
 
 
(0.1
)
Share-based compensation expense
43.1
 
 
—
 
 
—
 
 
—
 
 
43.1
 
Adjustment related to tax benefit from employee stock option plans
4.3
 
 
—
 
 
—
 
 
—
 
 
4.3
 
Balance at September 30, 2010
$
9,449.6
 
 
$
4.4
 
 
$
(3,137.8
)
 
$
0.7
 
 
$
6,316.9
 
 
 
The following table summarizes equity activity for the three and nine months ended September 30, 2009 (in millions):
 
 
Common Stock
& Additional
Paid-in-Capital
 
Accumulated
Other
Comprehensive Income (Loss)
 
Accumulated
Deficit
 
Total
Equity
Balance at December 31, 2008
$
8,811.5
 
 
$
(4.2
)
 
$
(2,905.9
)
 
$
5,901.4
 
Consolidated net income
—
 
 
—
 
 
(4.5
)
 
(4.5
)
Change in unrealized loss on investments, net tax of nil
—
 
 
(3.6
)
 
—
 
 
(3.6
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
(10.5
)
 
—
 
 
(10.5
)
Issuance of shares in connection with Employee Stock Purchase Plan
19.3
 
 
—
 
 
—
 
 
19.3
 
Exercise of stock options by employees, net of repurchases
3.3
 
 
—
 
 
—
 
 
3.3
 
Retirement of common stock
(0.1
)
 
—
 
 
(119.7
)
 
(119.8
)
Share-based compensation expense
33.6
 
 
—
 
 
—
 
 
33.6
 
Adjustment related to tax benefit from employee stock option plans
10.5
 
 
—
 
 
—
 
 
10.5
 
Balance at March 31, 2009
8,878.1
 
 
(18.3
)
 
(3,030.1
)
 
5,829.7
 
Consolidated net income
—
 
 
—
 
 
14.7
 
 
14.7
 
Change in unrealized gain on investments, net tax of nil
—
 
 
6.2
 
 
—
 
 
6.2
 
Change in foreign currency translation adjustment, net tax of nil
—
 
 
11.6
 
 
—
 
 
11.6
 
Exercise of stock options by employees, net of repurchases
29.2
 
 
—
 
 
—
 
 
29.2
 
Retirement of common stock
(0.4
)
 
—
 
 
(49.1
)
 
(49.5
)
Share-based compensation expense
33.5
 
 
—
 
 
—
 
 
33.5
 
Adjustment related to tax benefit from employee stock option plans
(58.6
)
 
—
 
 
—
 
 
(58.6
)
Balance at June 30, 2009
8,881.8
 
 
(0.5
)
 
(3,064.5
)
 
5,816.8
 
Consolidated net income
—
 
 
—
 
 
83.8
 
 
83.8
 
Change in unrealized loss on investments, net tax of nil
—
 
 
(0.9
)
 
—
 
 
(0.9
)
Change in foreign currency translation adjustment, net tax of nil
—
 
 
4.9
 
 
—
 
 
4.9
 
Issuance of shares in connection with Employee Stock Purchase Plan
19.8
 
 
—
 
 
—
 
 
19.8
 
Exercise of stock options by employees, net of repurchases
61.1
 
 
—
 
 
—
 
 
61.1
 
Retirement of common stock
(0.4
)
 
—
 
 
(71.5
)
 
(71.9
)
Repurchases related to net issuances
—
 
 
—
 
 
(0.2
)
 
(0.2
)
Share-based compensation expense
34.4
 
 
—
 
 
—
 
 
34.4
 
Adjustment related to tax benefit from employee stock option plans
9.6
 
 
—
 
 
—
 
 
9.6
 
Balance at September 30, 2009
$
9,006.3
 
 
$
3.5
 
 
$
(3,052.4
)
 
$
5,957.4
 
Note 12 - Employee Benefit Plans Level 3 (Tables)
Stock option activities [Text Block] 
The following table summarizes the Company’s stock option activity and related information as of and for the nine months ended September 30, 2010 (in millions, except for per share amounts and years):
 
Number of Shares
 
Weighted Average
Exercise Price per Share
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Balance at January 1, 2010
67.4
 
 
$
20.84
 
 
 
 
 
Options granted
5.7
 
 
28.71
 
 
 
 
 
Options assumed (1)
0.4
 
 
29.42
 
 
 
 
 
Options canceled
(1.8
)
 
21.64
 
 
 
 
 
Options exercised
(12.2
)
 
17.94
 
 
 
 
 
Options expired
(0.7
)
 
61.71
 
 
 
 
 
Balance at September 30, 2010
58.8
 
 
$
21.66
 
 
4.2 years
 
$
526.4
 
 
 
 
 
 
 
 
 
As of September 30, 2010:
 
 
 
 
 
 
 
Vested or expected-to-vest options
55.8
 
 
$
21.56
 
 
4.1 years
 
$
505.3
 
Exercisable options
39.4
 
 
$
20.86
 
 
3.6 years
 
$
386.8
 
________________________________
(1)    
Stock options assumed in connection with the acquisition of Ankeena.
Restricted stock units and performance share awards activities [Text Block] 
The following table summarizes information about the Company’s RSUs and PSAs as of and for the nine months ended September 30, 2010 (in millions, except per share amounts and years):
 
 
Outstanding RSUs and PSAs
 
Number of Shares
 
Weighted Average Grant-Date Fair Value per Share
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Balance at January 1, 2010
9.1
 
 
$
21.76
 
 
 
 
 
RSUs granted
3.4
 
 
29.27
 
 
 
 
 
RSUs assumed (1)
0.4
 
 
31.18
 
 
 
 
 
PSAs granted (2)
3.5
 
 
28.73
 
 
 
 
 
RSUs vested
(1.6
)
 
26.01
 
 
 
 
 
PSAs vested
(0.4
)
 
20.64
 
 
 
 
 
RSUs canceled
(0.5
)
 
24.72
 
 
 
 
 
     PSAs canceled
(0.3
)
 
20.92
 
 
 
 
 
Balance at September 30, 2010:
13.6
 
 
$
25.13
 
 
1.8 years
 
$
411.4
 
 
 
 
 
 
 
 
 
As of September 30, 2010:
 
 
 
 
 
 
 
Vested and expected-to-vest RSUs and PSAs
10.4
 
 
$
24.83
 
 
1.7 years
 
$
315.7
 
________________________________
(1)    
RSUs assumed in connection with the acquisition of Ankeena.
(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 1.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 3.5 million shares.
Shares available for grant [Text Block] 
The following table presents the stock grant activity for the nine months ended September 30, 2010, and the total number of shares available for grant under the 2006 Plan as of September 30, 2010 (in millions):
 
Number of Shares
Balance at January 1, 2010
18.0
 
Additional authorized share reserve approved by stockholders
30.0
 
RSUs and PSAs granted (1)
(14.5
)
Options granted
(5.7
)
RSUs canceled (1)
1.5
 
Options canceled (2)
1.8
 
Options expired (2)
0.7
 
Balance at September 30, 2010
31.8
 
________________________________
(1)    
RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted the maximum number of shares that may be issued pursuant to the award over its full term.
(2)    
Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired unexercised after May 18, 2006, which become available for grant under the 2006 Plan according to its terms.
Assumptions used and the resulting estimates of fair value for employee stock options and ESPP [Text Block] 
The assumptions used and the resulting estimates of fair value for employee stock options and the employee stock purchase plan during the three and nine months ended September 30, 2010, and 2009 were:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Employee Stock Options:
 
 
 
 
 
 
 
Volatility factor
39% - 42%
 
43% - 46%
 
33% - 42%
 
43% - 58%
Risk-free interest rate
1.1% - 1.4%
 
0.4% - 4.2%
 
1.1% - 2.2%
 
0.4% - 4.2%
Expected life (years)
4.3
 
4.3 - 5.7
 
4.3
 
4.3 - 5.8
Dividend yield
—
 
—
 
—
 
—
Fair value per share
$8.93 - $9.81
 
$9.52 - $10.25
 
$7.83 - $30.36
 
$6.02 - $10.49
 
 
 
 
 
 
 
 
Employee Stock Purchase Plan:
 
 
 
 
 
 
 
Volatility factor
36%
 
46%
 
35% - 36%
 
46% - 58%
Risk-free interest rate
0.2%
 
0.3%
 
0.2%
 
0.3% - 0.4%
Expected life (years)
0.5
 
0.5
 
0.5
 
0.5
Dividend yield
—
 
—
 
—
 
—
Weighted-average fair value per share
$7.09
 
$7.35
 
$6.19 - $7.09
 
$4.51 - $7.35
 
Weighted average fair value per share of RSUs and performance share awards granted [Text Block] 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Weighted-average fair value per share:
 
 
 
 
 
 
 
RSUs
$
28.18
 
 
$
25.86
 
 
$
29.27
 
 
$
16.09
 
PSAs
$
27.76
 
 
$
26.30
 
 
$
28.73
 
 
$
17.18
 
Share-based compensation expense recorded in cost and expense categories [Text Block] 
The Company’s share-based compensation expense associated with stock options, employee stock purchases, RSUs, and PSAs is recorded in the following cost and expense categories for the three and nine months ended September 30, 2010, and 2009 (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Cost of revenues - Product
$
1.0
 
 
$
0.9
 
 
$
3.1
 
 
$
2.8
 
Cost of revenues - Service (1)
3.2
 
 
2.6
 
 
10.0
 
 
7.6
 
Research and development
19.3
 
 
14.3
 
 
55.0
 
 
44.0
 
Sales and marketing (1)
13.4
 
 
11.0
 
 
39.0
 
 
31.8
 
General and administrative
7.5
 
 
5.5
 
 
22.5
 
 
15.2
 
Total
$
44.4
 
 
$
34.3
 
 
$
129.6
 
 
$
101.4
 
________________________________
(1)    
Prior period information has been reclassified to conform to the current period's presentation.
Share-based compensation expense by award type [Text Block] 
The following table summarizes share-based compensation expense by award type (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Options
$
20.5
 
 
$
20.5
 
 
$
61.4
 
 
$
60.0
 
Assumed options
—
 
 
—
 
 
0.6
 
 
—
 
Other acquisition-related compensation
1.3
 
 
—
 
 
2.6
 
 
—
 
Assumed RSUs
—
 
 
—
 
 
0.5
 
 
—
 
RSUs and PSAs
19.1
 
 
10.3
 
 
54.6
 
 
30.3
 
Employee stock purchase plan
3.5
 
 
3.5
 
 
9.9
 
 
11.1
 
Total
$
44.4
 
 
$
34.3
 
 
$
129.6
 
 
$
101.4
 
 
Note 13 - Segments Level 3 (Tables)
Financial information for each segment [Text Block] 
The following table summarizes financial information for each segment used by the CODM (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Net revenues:
 
 
 
 
 
 
 
Infrastructure:
 
 
 
 
 
 
 
Product
$
607.6
 
 
$
472.0
 
 
$
1,753.9
 
 
$
1,396.2
 
Service
136.5
 
 
123.2
 
 
389.2
 
 
350.1
 
Total Infrastructure revenues
744.1
 
 
595.2
 
 
2,143.1
 
 
1,746.3
 
SLT:
 
 
 
 
 
 
 
Product
193.6
 
 
162.1
 
 
542.5
 
 
432.7
 
Service
74.7
 
 
66.6
 
 
217.7
 
 
195.5
 
Total SLT revenues
268.3
 
 
228.7
 
 
760.2
 
 
628.2
 
Total net revenues
1,012.4
 
 
823.9
 
 
2,903.3
 
 
2,374.5
 
Operating income:
 
 
 
 
 
 
 
Infrastructure
179.9
 
 
126.9
 
 
537.6
 
 
358.8
 
SLT
64.6
 
 
44.4
 
 
152.3
 
 
79.6
 
Total management operating income
244.5
 
 
171.3
 
 
689.9
 
 
438.4
 
Amortization of purchased intangible assets (1)
(2.4
)
 
(2.7
)
 
(5.0
)
 
(13.4
)
Share-based compensation expense
(44.4
)
 
(34.3
)
 
(129.6
)
 
(101.4
)
Share-based payroll tax expense
(0.5
)
 
(0.8
)
 
(3.8
)
 
(1.5
)
Restructuring charges
(0.2
)
 
(4.5
)
 
(8.6
)
 
(16.3
)
Acquisition-related and other charges
(1.5
)
 
(1.0
)
 
(2.1
)
 
(1.0
)
Total operating income
195.5
 
 
128.0
 
 
540.8
 
 
304.8
 
Interest and other income, net
0.2
 
 
1.7
 
 
2.5
 
 
6.6
 
Gain (loss) on equity investment
—
 
 
—
 
 
3.2
 
 
(3.3
)
Income before income taxes and noncontrolling interest
$
195.7
 
 
$
129.7
 
 
$
546.5
 
 
$
308.1
 
________________________________
(1)    
Amount includes amortization expense of purchased intangible assets in operating expenses and in cost of revenues.
Net revenues by geographic region [Text Block] 
The Company attributes revenues to geographic region based on the customer’s ship-to location. The following table shows net revenues by geographic region (in millions):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2010
 
2009
 
2010
 
2009
Americas:
 
 
 
 
 
 
 
United States
$
481.2
 
 
$
380.3
 
 
$
1,368.0
 
 
$
1,045.4
 
Other
51.6
 
 
42.5
 
 
147.4
 
 
128.0
 
Total Americas
532.8
 
 
422.8
 
 
1,515.4
 
 
1,173.4
 
Europe, Middle East and Africa
275.9
 
 
243.2
 
 
829.5
 
 
698.3
 
Asia Pacific
203.7
 
 
157.9
 
 
558.4
 
 
502.8
 
Total
$
1,012.4
 
 
$
823.9
 
 
$
2,903.3
 
 
$
2,374.5
 
 
Note 15 - Commitments and Contingencies Level 3 (Tables)
Summary of principal contractual obligations [Text Block]
The following table summarizes the Company’s future principal contractual obligations as of September 30, 2010 (in millions):
 
Total
 
2010
 
2011
 
2012
 
2013
 
2014
 
Thereafter
 
Other
Operating leases
$
278.8
 
 
$
13.3
 
 
$
45.8
 
 
$
40.6
 
 
$
31.1
 
 
$
25.8
 
 
$
122.2
 
 
$
—
 
Sublease rental income
(0.2
)
 
(0.2
)
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Purchase commitments
186.0
 
 
186.0
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Tax liabilities
102.2
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
102.2
 
Other contractual obligations
57.9
 
 
28.6
 
 
18.0
 
 
9.5
 
 
1.8
 
 
—
 
 
—
 
 
—
 
Total
$
624.7
 
 
$
227.7
 
 
$
63.8
 
 
$
50.1
 
 
$
32.9
 
 
$
25.8
 
 
$
122.2
 
 
$
102.2
 
Note 1 - Basis of Presentation Level 4 (Details) (USD $)
In Millions
3 Months Ended
Sep. 30, 2009
9 Months Ended
Sep. 30, 2009
Reclassified sales and marketing expense
$ 6 
$ 19 
Note 2 - Summary of Significant Accounting Policies Level 4 (Details) (USD $)
In Millions
3 Months Ended
Sep. 30, 2010
9 Months Ended
Sep. 30, 2010
Increase in revenue due to adoption of new revenue recognition policy
$ 50 
$ 128 
Undelivered product commitments which the Company was unable to demostrate fair value pursuant to the previous revenue accounting standards
$ 31 
$ 91 
General contractual support period for maintenance service contracts
 
one to three years 
General contractual period for training and professional services
 
one year or less 
Note 3 - Business Combination , Purchase Consideration Level 4 (Details) (USD $)
In Millions
Sep. 30, 2010
Total consideration:
 
Cash
$ 136 
Assumed stock option and RSU awards allocated to purchase price
2 1
Total purchase consideration
138 
Business Acquisition Acquired Entity Ankeena [Member]
 
Total consideration:
 
Cash
67 
Assumed stock option and RSU awards allocated to purchase price
2 1
Total purchase consideration
69 
Business Acquisition Acquired Entity SMobile [Member]
 
Total consideration:
 
Cash
70 
Assumed stock option and RSU awards allocated to purchase price
0 1
Total purchase consideration
$ 70 
Note 3.2 - Business Combination, Purchase Price Allocation Level 4 (Details)
In Millions
Sep. 30, 2010
Dec. 31, 2009
Business Acquisition [Line Items]
 
 
Net assets (liabilities) assumed
(1)
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
39 
0 
Goodwill
101 
 
Total purchase consideration
138 
 
Business Acquisition Acquired Entity Ankeena [Member]
 
 
Business Acquisition [Line Items]
 
 
Net assets (liabilities) assumed
4 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
12 
 
Goodwill
53 
 
Total purchase consideration
69 
 
Business Acquisition Acquired Entity Ankeena [Member] | Existing Technology [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
5 
 
Business Acquisition Acquired Entity Ankeena [Member] | In Process Research And Development [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
4 
 
Business Acquisition Acquired Entity Ankeena [Member] | Core Technology [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
3 
 
Business Acquisition Acquired Entity Ankeena [Member] | Customer Contracts And Related Relationships [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Business Acquisition Acquired Entity Ankeena [Member] | Support Agreements And Related Relationships [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Business Acquisition Acquired Entity Ankeena [Member] | Noncompete Agreements [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Business Acquisition Acquired Entity SMobile [Member]
 
 
Business Acquisition [Line Items]
 
 
Net assets (liabilities) assumed
(5)
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
27 
 
Goodwill
48 
 
Total purchase consideration
70 
 
Business Acquisition Acquired Entity SMobile [Member] | Existing Technology [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
24 
 
Business Acquisition Acquired Entity SMobile [Member] | In Process Research And Development [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Business Acquisition Acquired Entity SMobile [Member] | Core Technology [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Business Acquisition Acquired Entity SMobile [Member] | Customer Contracts And Related Relationships [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
2 
 
Business Acquisition Acquired Entity SMobile [Member] | Support Agreements And Related Relationships [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Business Acquisition Acquired Entity SMobile [Member] | Noncompete Agreements [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Existing Technology [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
30 
 
In Process Research And Development [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
4 
 
Core Technology [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
3 
 
Customer Contracts And Related Relationships [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
2 
 
Support Agreements And Related Relationships [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Noncompete Agreements [Member]
 
 
Intangible assets:
 
 
Acquired finite-lived intangible assets, amount
0 
 
Note 3.3 - Business Combination, Intangible Assets Acquired Level 4 (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2010
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
$ 39 
Business Acquisition Acquired Entity Ankeena [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
4 
Acquired finite-lived intangible assets, amount
12 
Business Acquisition Acquired Entity Ankeena [Member] | Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
4 
Acquired finite-lived intangible assets, amount
5 
Business Acquisition Acquired Entity Ankeena [Member] | In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
4 
Acquired finite-lived intangible assets, amount
4 
Business Acquisition Acquired Entity Ankeena [Member] | Core Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
4 
Acquired finite-lived intangible assets, amount
3 
Business Acquisition Acquired Entity Ankeena [Member] | Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
0 
Acquired finite-lived intangible assets, amount
0 
Business Acquisition Acquired Entity Ankeena [Member] | Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
0 
Acquired finite-lived intangible assets, amount
0 
Business Acquisition Acquired Entity Ankeena [Member] | Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
0 
Acquired finite-lived intangible assets, amount
0 
Business Acquisition Acquired Entity SMobile [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
5 
Acquired finite-lived intangible assets, amount
27 
Business Acquisition Acquired Entity SMobile [Member] | Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
5 
Acquired finite-lived intangible assets, amount
24 
Business Acquisition Acquired Entity SMobile [Member] | In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
0 
Acquired finite-lived intangible assets, amount
0 
Business Acquisition Acquired Entity SMobile [Member] | Core Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
0 
Acquired finite-lived intangible assets, amount
0 
Business Acquisition Acquired Entity SMobile [Member] | Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
6 
Acquired finite-lived intangible assets, amount
2 
Business Acquisition Acquired Entity SMobile [Member] | Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
6 
Acquired finite-lived intangible assets, amount
0 
Business Acquisition Acquired Entity SMobile [Member] | Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life
2 
Acquired finite-lived intangible assets, amount
0 
Existing Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
30 
In Process Research And Development [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
4 
Core Technology [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
3 
Customer Contracts And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
2 
Support Agreements And Related Relationships [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
0 
Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Acquired finite-lived intangible assets, amount
$ 0 
Note 3.4 - Business Combination, Textuals Level 4 (Details)
9 Months Ended
Sep. 30,
3 Months Ended
Sep. 30, 2010
2010
2010
Apr. 19, 2010
9 Months Ended
Sep. 30, 2010
Jul. 30, 2010
Business Acquisition [Line Items]
 
 
 
 
 
 
Percentage acquisition of the equity securities of acquiree
 
 
 
1 
 
1 
Assumed net assets or liabilities in connection with the acquisition
(1,400,000)
(1,400,000)
3,600,000 
 
(5,000,000)
 
Assumed cash and cash equivalents in connection with the acquisition
 
 
2,300,000 
 
400,000 
 
Goodwill assigned to Infrastructure segment
101,000,000 
101,000,000 
53,100,000 
 
47,900,000 
 
Goodwill deductible for income tax purposes
0 
0 
0 
 
0 
 
Minority equity investment prior to acquisition
700,000 
700,000 
2,000,000 
 
0 
 
Percentage ownership interest in equity investment prior to acquisition
 
 
0.077 
 
0 
 
Fair value of equity method investment
 
 
5,200,000 
 
 
 
Gain on equity investments
0 
3,232,000 
3,200,000 
 
 
 
Acquisition related costs
1,500,000 
2,100,000 
 
 
 
 
Note 4 - Net Income per Share Level 4 (Details) (USD $)
In Thousands, except Share data
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Numerator
 
 
 
 
Net income attributable to Juniper Networks
$ 134,543 
$ 83,786 
$ 428,169 
$ 94,095 
Denominator
 
 
 
 
Weighted average shares used to compute basic net income per share
520,581,000 
523,878,000 
522,069,000 
523,802,000 
Effect of dilutive securities:
 
 
 
 
Employee stock awards
14,300,000 
14,200,000 
15,100,000 
8,900,000 
Weighted average shares used to compute diluted net income per share
534,880,000 
538,132,000 
537,158,000 
532,686,000 
Net income per share attributable to Juniper Networks common stockholders:
 
 
 
 
Basic
0.26 
0.16 
0.82 
0.18 
Diluted
$ 0.25 
$ 0.16 
$ 0.8 
$ 0.18 
Net Income per Share Textuals
 
 
 
 
Anti-dilutive shares excluded from computation of diluted earnings per share
16,800,000 
24,400,000 
16,400,000 
48,400,000 
Note 5 - Cash, Cash Equivalents and Investments Level 4 (Details) (USD $)
In Thousands
Sep. 30, 2010
Dec. 31, 2009
Sep. 30, 2009
Dec. 31, 2008
Cash and cash equivalents
$ 1,460,914 
$ 1,604,723 
$ 1,618,590 
$ 2,019,084 
Cash [Member]
 
 
 
 
Cash and cash equivalents
706,300 
555,100 
 
 
Demand Deposits [Member]
 
 
 
 
Cash and cash equivalents
430,000 
427,200 
 
 
Bank Time Deposits [Member]
 
 
 
 
Cash and cash equivalents
276,300 
127,900 
 
 
Cash Equivalents [Member]
 
 
 
 
Cash and cash equivalents
754,600 
1,049,600 
 
 
US Treasury Securities [Member]
 
 
 
 
Cash and cash equivalents
7,000 
0 
 
 
Certificates of Deposit [Member]
 
 
 
 
Cash and cash equivalents
5,000 
0 
 
 
Commercial Paper [Member]
 
 
 
 
Cash and cash equivalents
10,000 
17,000 
 
 
Money Market Funds [Member]
 
 
 
 
Cash and cash equivalents
732,600 
1,032,600 
 
 
Note 5.2 - Cash, Cash Equivalents, and Investments - Available for Sale Securities Level 4 (Details) (USD $)
In Millions
9 Months Ended
Sep. 30, 2010
Year Ended
Dec. 31, 2009
Trading securities:
 
 
Publicly-traded equity securities, amortized cost
$ 11 
$ 10 
Publicly-traded equity securities, gross unrealized gains
3 
0 
Publicly-traded equity securities, gross unrealized losses
0 
0 
Publicly-traded equity securities, estimated fair value
14 
10 
Total investments, amortized cost
1,230 
1,052 
Total investments, gross unrealized gains
8 
3 
Total investments, gross unrealized losses
(0)
(1)
Total investments, estimated fair value
1,238 
1,054 
Debt Securities [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
1,219 
1,042 
Fixed income securities, gross unrealized gains
5 
3 
Fixed income securities, gross unrealized losses
(0)
(1)
Fixed income securities, estimated fair value
1,224 
1,044 
US Government Debt Securities [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
288 
245 
Fixed income securities, gross unrealized gains
0 
0 
Fixed income securities, gross unrealized losses
0 
0 
Fixed income securities, estimated fair value
289 
245 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
247 
212 
Fixed income securities, gross unrealized gains
1 
1 
Fixed income securities, gross unrealized losses
0 
(0)
Fixed income securities, estimated fair value
248 
212 
Foreign Government Debt Securities [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
52 
96 
Fixed income securities, gross unrealized gains
0 
0 
Fixed income securities, gross unrealized losses
0 
(0)
Fixed income securities, estimated fair value
53 
97 
Certificates of Deposit [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
19 
 
Fixed income securities, gross unrealized gains
0 
 
Fixed income securities, gross unrealized losses
0 
 
Fixed income securities, estimated fair value
19 
 
Commercial Paper [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
17 
 
Fixed income securities, gross unrealized gains
0 
 
Fixed income securities, gross unrealized losses
0 
 
Fixed income securities, estimated fair value
17 
 
Asset-backed Securities [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
74 
 
Fixed income securities, gross unrealized gains
0 
 
Fixed income securities, gross unrealized losses
(0)
 
Fixed income securities, estimated fair value
74 
 
Corporate Debt Securities [Member]
 
 
Fixed income securities:
 
 
Fixed income securities, amortized cost
523 
488 
Fixed income securities, gross unrealized gains
4 
2 
Fixed income securities, gross unrealized losses
(0)
(0)
Fixed income securities, estimated fair value
526 
490 
Short-term Investments [Member]
 
 
Trading securities:
 
 
Total investments, amortized cost
635 
570 
Total investments, gross unrealized gains
4 
1 
Total investments, gross unrealized losses
(0)
0 
Total investments, estimated fair value
639 
571 
Other Long-term Investments [Member]
 
 
Trading securities:
 
 
Total investments, amortized cost
595 
482 
Total investments, gross unrealized gains
4 
2 
Total investments, gross unrealized losses
(0)
(1)
Total investments, estimated fair value
$ 599 
$ 484 
Note 5.3 - Cash, Cash Equivalents, and Investments - Maturities of Available for Sale Investments Level 4 (Details) (USD $)
In Millions
9 Months Ended
Sep. 30, 2010
Trading securities:
 
Publicly-traded equity securities, amortized cost
$ 11 
Publicly-traded equity securities, gross unrealized gains
3 
Publicly-traded equity securities, gross unrealized losses
0 
Publicly-traded equity securities, estimated fair value
14 
Total investments, amortized cost
1,230 
Total investments, gross unrealized gains
8 
Total investments, gross unrealized losses
(0)
Total investments, estimated fair value
1,238 
Debt Securities [Member]
 
Fixed income securities:
 
Amortized cost due within one year
624 
Gross unrealized gains due within one year
1 
Gross unrealized losses due within one year
(0)
Estimated fair value due within one year
625 
Amortized cost due between one and five years
595 
Gross unrealized gains due between one and five years
4 
Gross unrealized losses due between one and five years
(0)
Estimated fair value due between one and five year
599 
Fixed income securities, amortized cost
1,219 
Fixed income securities, gross unrealized gains
5 
Fixed income securities, gross unrealized losses
(0)
Fixed income securities, estimated fair value
1,224 
US Government Debt Securities [Member]
 
Fixed income securities:
 
Fixed income securities, amortized cost
288 
Fixed income securities, gross unrealized gains
0 
Fixed income securities, gross unrealized losses
0 
Fixed income securities, estimated fair value
289 
US Government-sponsored Enterprises Debt Securities [Member]
 
Fixed income securities:
 
Fixed income securities, amortized cost
247 
Fixed income securities, gross unrealized gains
1 
Fixed income securities, gross unrealized losses
0 
Fixed income securities, estimated fair value
248 
Foreign Government Debt Securities [Member]
 
Fixed income securities:
 
Fixed income securities, amortized cost
52 
Fixed income securities, gross unrealized gains
0 
Fixed income securities, gross unrealized losses
0 
Fixed income securities, estimated fair value
53 
Certificates of Deposit [Member]
 
Fixed income securities:
 
Fixed income securities, amortized cost
19 
Fixed income securities, gross unrealized gains
0 
Fixed income securities, gross unrealized losses
0 
Fixed income securities, estimated fair value
19 
Commercial Paper [Member]
 
Fixed income securities:
 
Fixed income securities, amortized cost
17 
Fixed income securities, gross unrealized gains
0 
Fixed income securities, gross unrealized losses
0 
Fixed income securities, estimated fair value
17 
Asset-backed Securities [Member]
 
Fixed income securities:
 
Fixed income securities, amortized cost
74 
Fixed income securities, gross unrealized gains
0 
Fixed income securities, gross unrealized losses
(0)
Fixed income securities, estimated fair value
74 
Corporate Debt Securities [Member]
 
Fixed income securities:
 
Fixed income securities, amortized cost
523 
Fixed income securities, gross unrealized gains
4 
Fixed income securities, gross unrealized losses
(0)
Fixed income securities, estimated fair value
$ 526 
Note 5.4 - Cash, Cash Equivalents, and Investments - Unrealized Loss for Trading and Available for Sale Investments Level 4 (Details) (USD $)
In Millions
9 Months Ended
Sep. 30, 2010
Schedule of Available-for-sale Securities [Line Items]
 
Fair value, less than 12 months
$ 172 
Unrealized loss, less than 12 months
(0)
Fair value, 12 months or greater
30 
Unrealized loss, 12 months or greater
0 
Total fair value, Available-for-sale investments in continuous unrealized loss position
202 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
(0)
US Government Debt Securities [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Fair value, less than 12 months
6 
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
6 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
0 
US Government-sponsored Enterprises Debt Securities [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Fair value, less than 12 months
17 
Unrealized loss, less than 12 months
0 
Fair value, 12 months or greater
5 
Unrealized loss, 12 months or greater
0 
Total fair value, Available-for-sale investments in continuous unrealized loss position
22 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
0 
Foreign Government Debt Securities [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Fair value, less than 12 months
1 
Unrealized loss, less than 12 months
0 
Fair value, 12 months or greater
5 
Unrealized loss, 12 months or greater
0 
Total fair value, Available-for-sale investments in continuous unrealized loss position
6 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
0 
Asset-backed Securities [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Fair value, less than 12 months
46 
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
46 
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
102 
Unrealized loss, less than 12 months
(0)
Fair value, 12 months or greater
20 
Unrealized loss, 12 months or greater
0 
Total fair value, Available-for-sale investments in continuous unrealized loss position
121 
Total unrealized loss, Available-for-sale investments in continuous unrealized loss position
$ (0)
Note 5.5 - Cash, Cash Equivalents, and Investments - Restricted Cash Level 4 (Details) (USD $)
Sep. 30, 2010
Dec. 31, 2009
Restricted Cash and Investments [Abstract]
 
 
Total restricted cash and investments
$ 79,080,000 
$ 53,732,000 
Restricted Cash [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted cash
25,800,000 
3,800,000 
Demand Deposits [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted cash
25,800,000 
3,800,000 
Restricted Investments [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
53,300,000 
49,900,000 
US Government Debt Securities [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
600,000 
19,800,000 
Corporate Debt Securities [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
2,700,000 
0 
Money Market Funds [Member]
 
 
Restricted Cash and Investments [Abstract]
 
 
Restricted investments
$ 50,000,000 
$ 30,100,000 
Note 5.6 - Cash, Cash Equivalents, and Investments - Textuals Level 4 (Details)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Apr. 08, 2010
Dec. 31, 2009
Total investments In unrealized loss position
46 
 
46 
 
 
52 
Investment in privately-held companies
4,600,000 
 
9,800,000 
6,300,000 
 
 
Gain on equity investments
0 
0 
3,232,000 
(3,311,000)
 
 
Loss due to impairment of privately held equity investments measured on a non-recurring basis
0 
0 
0 
(3,300,000)
 
 
Cash received for privately-held investment acquired by publicly traded company
 
 
 
1,000,000 
 
 
Common stock received for privately-held investment acquired by publicly traded company
 
 
 
1,000,000 
 
 
Investment in publicly-held company
 
0 
 
0 
 
 
Increase in restricted cash
69,600,000 
 
150,100,000 
 
 
 
Restricted cash distribution for settlement of acquisition
64,100,000 
 
124,900,000 
 
 
 
Agreed total payable amount representing the cash value of unvested restricted shares in Ankeena
8,100,000 
 
8,100,000 
 
10,700,000 
 
Vesting period for restricted shares (in years)
2 
 
2 
 
 
 
Unrealized gains on restricted investments
0 
 
0 
 
 
0 
Unrealized losses on restricted investments
0 
 
0 
 
 
0 
Business Acquisition Acquired Entity Ankeena [Member]
 
 
 
 
 
 
Gain on equity investments
 
 
3,200,000 
 
 
 
Equity Method Investee, Privately Held Companies [Member]
 
 
 
 
 
 
Minority equity investment
22,500,000 
 
22,500,000 
 
 
13,900,000 
Loss due to impairment of privately held equity investments measured on a non-recurring basis
0 
0 
0 
(3,300,000)
 
 
Note 6 - Fair Value Measurements Level 4 (Details)
In Millions
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Trading securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total trading securities measured at fair value on a recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7 
7 
0 
0 
 
 
 
 
 
 
 
 
7 
7 
0 
0 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets measured at fair value on a recurring basis
 
2,032 
1,144 
887 
0 
296 1
111 1
185 1
0 1
248 
227 
21 
0 
53 
21 
31 
0 
24 
0 
24 
0 
27 
0 
27 
0 
74 
0 
74 
0 
529 2
3 2
526 2
0 2
783 3
783 3
0 3
0 3
7 
7 
0 
0 
7 
7 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
2,038 
1,151 
887 
0 
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets measured at fair value on a recurring basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
0 
2 
0 
2 
0 
2 
0 
 
 
 
 
Total assets measured at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,047 
1,158 
889 
0 
Fair Value Measurements (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of restricted investments measured at fair value included in the balance of Government Securities
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of restricted investments measured at fair value included in the balance of Corporate Debt Securities
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of restricted investments measured at fair value included in the balance of Money Market Funds
50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Balance includes </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">$0.6 million</font><font style="font-family:inherit;font-size:8pt;"> of restricted investments measured at fair market value, related to an acquisition completed in 2005. For additional information regarding the Company's restricted investments, see Note 5, </font><font style="font-family:inherit;font-size:8pt;font-style:italic;">Cash, Cash Equivalents, and Investments</font><font style="font-family:inherit;font-size:8pt;">, under the heading “Restricted Cash.” Restricted investments are included in the restricted cash balance in the condensed consolidated balance sheet.</font></div></td></tr></table></div>
Note 6.2 - Fair Value Measurements, Assets by Balance Sheet Grouping Level 4 (Details) (USD $)
In Millions
Sep. 30, 2010
Dec. 31, 2009
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
$ 755 
$ 1,050 
Short-term investments measured at fair value
639 
571 
Long-term investments measured at fair value
599 
484 
Restricted cash measured at fair value
53 
50 
Prepaid expenses and other current assets measured at fair value
2 
 
Total assets measured at fair value
2,047 
2,154 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
733 
1,033 
Short-term investments measured at fair value
199 
101 
Long-term investments measured at fair value
174 
181 
Restricted cash measured at fair value
53 
50 
Prepaid expenses and other current assets measured at fair value
0 
 
Total assets measured at fair value
1,158 
1,365 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
22 
17 
Short-term investments measured at fair value
440 
469 
Long-term investments measured at fair value
425 
302 
Restricted cash measured at fair value
1 
0 
Prepaid expenses and other current assets measured at fair value
2 
 
Total assets measured at fair value
889 
789 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Cash equivalents measured at fair value
0 
0 
Short-term investments measured at fair value
0 
0 
Long-term investments measured at fair value
0 
0 
Restricted cash measured at fair value
0 
0 
Prepaid expenses and other current assets measured at fair value
0 
 
Total assets measured at fair value
$ 0 
$ 0 
Note 6.3 - Fair Value Measurements, Liabilities Measured On A Recurring Basis Level 4 (Details)
In Millions
3 Months Ended
Sep. 30, 2010
9 Months Ended
Sep. 30, 2010
Sep. 30, 2010
Dec. 31, 2009
Sep. 30, 2010
Dec. 31, 2009
Fair Value, Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
 
 
 
 
Derivative liabilities measured at fair value on a recurring basis
 
 
0 
2 
0 
2 
Transfers between levels of fair value [Abstract]
 
 
 
 
 
 
Number of fair value transfers of assets and liabilities between levels of the fair value hierarchy
0 
0 
 
 
 
 
Note 6.4 - Fair Value Measurement, Assets Measured On A Nonrecurring Basis Level 4 (Details) (USD $)
In Millions
3 Months Ended
Sep. 30,
2010
2009
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity investments measured on nonrecurring basis
$ 1 
$ 2 
Loss on privately held equity investments
0 
0 
Equity Method Investee, Privately Held Companies [Member]
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity investments measured on nonrecurring basis
1 
2 
Loss on privately held equity investments
0 
0 
Equity Method Investee, Privately Held Companies [Member] | Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity method investments measured at fair value on a nonrecurring basis
0 
0 
Equity Method Investee, Privately Held Companies [Member] | Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity method investments measured at fair value on a nonrecurring basis
0 
0 
Equity Method Investee, Privately Held Companies [Member] | Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity method investments measured at fair value on a nonrecurring basis
1 
2 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity method investments measured at fair value on a nonrecurring basis
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity method investments measured at fair value on a nonrecurring basis
0 
0 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items]
 
 
Equity method investments measured at fair value on a nonrecurring basis
$ 1 
$ 2 
Note 7 - Goodwill and Purchased Intangible Assets Level 4 (Details)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Goodwill [Roll Forward]
 
 
 
 
Gross Goodwill, beginning of period
 
 
4,938,600,000 
 
Accumulated Impairment, beginning of period
 
 
(1,280,000,000)
 
Goodwill, beginning of period
 
 
3,658,602,000 
 
Goodwill acquired
47,900,000 
 
101,000,000 
 
Gross Goodwill, end of period
5,039,600,000 
 
5,039,600,000 
 
Accumulated Impairment, end of period
(1,280,000,000)
 
(1,280,000,000)
 
Goodwill, end of period
3,759,631,000 
 
3,759,631,000 
 
Goodwill impairment loss
0 
0 
0 
0 
Infrastructure Segment [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Gross Goodwill, beginning of period
 
 
1,500,500,000 
 
Accumulated Impairment, beginning of period
 
 
0 
 
Goodwill, beginning of period
 
 
1,500,500,000 
 
Goodwill acquired
 
 
53,100,000 
 
Gross Goodwill, end of period
 
 
1,553,600,000 
 
Accumulated Impairment, end of period
 
 
0 
 
Goodwill, end of period
 
 
1,553,600,000 
 
Service Layer Technologies Segment [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Gross Goodwill, beginning of period
 
 
3,438,100,000 
 
Accumulated Impairment, beginning of period
 
 
(1,280,000,000)
 
Goodwill, beginning of period
 
 
2,158,100,000 
 
Goodwill acquired
 
 
47,900,000 
 
Gross Goodwill, end of period
 
 
3,486,000,000 
 
Accumulated Impairment, end of period
 
 
(1,280,000,000)
 
Goodwill, end of period
 
 
2,206,000,000 
 
Note 7.2 - Goodwill and Purchased Intangible Assets, Finite Lived Intangible Assets by Class Level 4 (Details)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Dec. 31, 2009
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Finite-lived intangible assets, gross
449 
 
449 
 
449 
Finite-lived intangible assets, accumulated amortization
(440)
 
(440)
 
(435)
Acquired finite-lived intangible assets, amount
39 
 
39 
 
0 
Finite-lived intangible assets, net
48 
 
48 
 
14 
Amortization of purchased intangible assets
2 1
3 1
5 1
13 1
 
Impairment of finite-lived intangible assets
0 
0 
0 
0 
 
Business Acquisition Acquired Entity Ankeena [Member]
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Acquired finite-lived intangible assets, amount
12 
 
 
 
 
Business Acquisition Acquired Entity SMobile [Member]
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Acquired finite-lived intangible assets, amount
27 
 
 
 
 
Technologies and Patents [Member]
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Finite-lived intangible assets, gross
380 
 
 
 
380 
Finite-lived intangible assets, accumulated amortization
(379)
 
 
 
(376)
Acquired finite-lived intangible assets, amount
33 
 
 
 
0 
Finite-lived intangible assets, net
34 
 
 
 
4 
Other Intangible Assets [Member]
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Finite-lived intangible assets, gross
69 
 
 
 
69 
Finite-lived intangible assets, accumulated amortization
(62)
 
 
 
(59)
Acquired finite-lived intangible assets, amount
6 
 
 
 
0 
Finite-lived intangible assets, net
14 
 
 
 
10 
Note 7.3 - Goodwill and Purchased Intangible Assets, Estimated Future Amortization Expense Intangible Assets Level 4 (Details) (USD $)
In Millions
9 Months Ended
Sep. 30, 2010
Finite-Lived Intangible Assets [Line Items]
 
2010 (remaining three months)
$ 3 
2011
10 
2012
10 
2013
9 
2014
8 
Thereafter
8 
Total
$ 48 
Note 8 - Other Financial Information , Warranties Level 4 (Details) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
 
Beginning balance
$ 38 
$ 36 
$ 38 
$ 40 
Provisions made during the period, net
14 
15 
38 
33 
Change in estimate
(2)
(1)
(2)
(5)
Actual costs incurred during the period
(14)
(12)
(37)
(32)
Ending balance
$ 36 
$ 37 
$ 36 
$ 37 
Note 8.2 - Other Financial Information, Deferred Revenue Level 4 (Details) (USD $)
Sep. 30, 2010
Dec. 31, 2009
Deferred Revenue Reported as [Abstract]
 
 
Deferred revenue, current
$ 594,437,000 
$ 571,652,000 
Deferred revenue, noncurrent
190,701,000 
181,937,000 
Deferred revenue, total
785,100,000 
753,600,000 
Sales Revenue, Goods, Net [Member]
 
 
Deferred Product Revenue [Abstract]
 
 
Undelivered product commitments and other product deferrals
277,700,000 
254,700,000 
Distributor inventory and other sell-through items
128,200,000 
136,600,000 
Deferred gross product revenue
405,900,000 
391,300,000 
Deferred cost of product revenue
(147,700,000)
(150,000,000)
Deferred product revenue, net
258,200,000 
241,300,000 
Sales Revenue, Services, Net [Member]
 
 
Deferred Product Revenue [Abstract]
 
 
Deferred service revenue
$ 526,900,000 
$ 512,300,000 
Note 8.3 - Other Financial Information, Restructuring Level 4 (Details)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Restructuring Reserve [Roll Forward]
 
 
 
 
Beginning Balance
 
 
9 
 
Charges
0 
5 
9 
16 
Cash payments
(1)
(3)
(7)
(6)
Adjustments
 
 
(2)
 
Ending Balance
9 
 
9 
 
Facility Closing [Member]
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Beginning Balance
 
 
5 
 
Charges
 
 
7 
 
Cash payments
 
 
(2)
 
Adjustments
 
 
(2)
 
Ending Balance
 
 
8 
 
SeveranceContractualCommitmentsAndOtherCharges [Member]
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Beginning Balance
 
 
5 
 
Charges
 
 
2 
 
Cash payments
 
 
(5)
 
Adjustments
 
 
(0)
 
Ending Balance
 
 
1 
 
Note 8.4 - Other Financial Information, Interest and Other Income Net Level 4 (Details) (USD $)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Component of Other Income, Nonoperating [Line Items]
 
 
 
 
Interest income and expense, net
$ 300,000 
$ 1,600,000 
$ 1,800,000 
$ 5,200,000 
Other income and expense, net
(100,000)
100,000 
700,000 
1,400,000 
Total interest and other income, net
$ 205,000 
$ 1,733,000 
$ 2,497,000 
$ 6,581,000 
Note 9 - Financing Arrangements Level 4 (Details)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Dec. 31, 2009
Financing Arrangements [Abstract]
 
 
 
 
 
Number of days due from receivable
 
 
30 
 
 
Sale of receivables
153 
123 
436 
295 
 
Proceeds from sale and collection of receivables
147 
102 
424 
277 
 
Receivables from sale of receivables
102 
 
102 
 
90 
Cash received from financing provider that has not been recognized as revenue
36 
 
36 
 
53 
Note 10 - Derivative Instruments Level 4 (Details)
In Millions
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Sep. 30, 2010
Foreign currency forward contracts:
 
 
 
 
 
 
Notional amount of foreign currency derivative purchase contracts
€ 25 
$ 32 
£ 10 
$ 15 
$ 29 
? 1,333 
Weighted-average maturity
2 months 
 
2 months 
 
2 months 
 
Note 10.2 - Derivative Instruments, Balance Sheet Location Level 4 (Details) (Foreign Exchange Contract [Member], USD $)
In Millions
Sep. 30, 2010
Dec. 31, 2009
Foreign Exchange Contract [Member] | Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset Designated as Hedging Instrument, Fair Value
$ 2 
$ 0 
Foreign Exchange Contract [Member] | Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability Designated as Hedging Instrument, Fair Value
$ 0 
$ 2 
Note 10.3 - Derivative Instruments, Gain (Loss) Level 4 (Details)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Derivative Instruments Textuals Abstract [Abstract]
 
 
 
 
Maturities of cash flow hedge derivatives
 
 
less than one year 
 
Ineffectiveness of hedging instruments in interest and other income, net
immaterial 
immaterial 
immaterial 
immaterial 
Reclassification time of other comprehensive income (loss) into income
 
 
within the next 12 months 
 
Ineffective portion of derivative instruments recognized in the statement of operations
immaterial 
immaterial 
immaterial 
immaterial 
Maturity period of non-designated hedges derivatives
 
 
approximately two months 
 
Foreign Exchange Contract [Member] | Operating Expense [Member] | Cash Flow Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Loss reclassified from accumulated other comprehensive income into Statements of Operations, effective portion
(2)
 
(5)
 
Gain reclassified from accumulated other comprehensive income into Statements of Operations, effective portion
 
3 
 
2 
Foreign Exchange Contract [Member] | Interest And Other Income, Net [Member] | Nondesignated [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative instruments not designated as hedging instruments, loss
 
 
(1)
 
Derivative instruments not designated as hedging instruments, gain
1 
2 
 
5 
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Loss recognized in accumulated other comprehensive income, effective portion
 
 
(2)
 
Gain recognized in accumulated other comprehensive income, effective portion
3 
2 
 
1 
Note 11 - Equity Level 4 (Details) (USD $)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Consolidated net income
$ 134,337,000 
$ 83,786,000 
$ 429,290,000 
$ 94,095,000 
Other comprehensive loss, net of tax:
 
 
 
 
Change in net unrealized losses on investments, net of tax of nil
8,700,000 
(900,000)
7,000,000 
1,700,000 
Change in foreign currency translation adjustment, net of tax of nil
6,300,000 
4,900,000 
(1,200,000)
6,000,000 
Total other comprehensive loss, net of tax
15,000,000 
4,000,000 
5,800,000 
7,700,000 
Consolidated comprehensive income (loss)
149,300,000 
87,800,000 
435,100,000 
101,800,000 
Adjust for comprehensive income (loss) attributable to noncontrolling interest
200,000 
0 
(1,100,000)
0 
Comprehensive income (loss) attributable to Juniper Networks
$ 149,500,000 
$ 87,800,000 
$ 434,000,000 
$ 101,800,000 
Note 11.2 Equity, Stock Repurchase Activities Level 4 (Details) (USD $)
In Millions, except Per Share data
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Common stock repurchased and retired under stock repurchase programs, shares
5 
3 
14 
13 
Common stock repurchased and retired under stock repurchase programs, average purchase price
$ 26.81 
$ 24.67 
$ 27.09 
$ 19.18 
Common stock repurchased and retired under stock repurchase programs, value
$ 135 
$ 72 
$ 387 
$ 241 
Common stock repurchased from employees in connection with net issuances, shares
0 
0 
0 
0 
Repurchases related to net issuances, average purchase price
 
 
25.75 
 
Shares repurchased and retired related to net issuances, value
(0)
 
2 
 
Stock Repurchase Program 2008 [Member]
 
 
 
 
Common stock authorized for repurchase under the 2010 and 2008 Stock Repurchase Programs
 
 
1,000 
 
Stock repurchase program remaining authorized funds
 
 
0 
 
Stock Repurchase Program 2010 [Member]
 
 
 
 
Common stock authorized for repurchase under the 2010 and 2008 Stock Repurchase Programs
 
 
1,000 
 
Stock repurchase program remaining authorized funds
 
 
932 
 
Note 11.3 Equity, Stockholders' Equity Activity Level 4 (Details) (USD $)
3 Months Ended
Sep. 30, 2010
3 Months Ended
Jun. 30, 2010
3 Months Ended
Mar. 31, 2010
3 Months Ended
Sep. 30, 2009
3 Months Ended
Jun. 30, 2009
3 Months Ended
Mar. 31, 2009
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
$ 6,316,899,000 
$ 6,171,800,000 
$ 6,121,300,000 
$ 5,957,400,000 
$ 5,816,800,000 
$ 5,829,700,000 
Consolidated net income
134,337,000 
130,300,000 
164,600,000 
83,786,000 
14,700,000 
(4,500,000)
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
8,700,000 
(1,300,000)
(400,000)
(900,000)
6,200,000 
(3,600,000)
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
6,300,000 
(4,800,000)
(2,700,000)
4,900,000 
11,600,000 
(10,500,000)
Stock Issued During Period, Value, Employee Stock Purchase Plan
21,000,000 
 
20,800,000 
19,800,000 
 
19,300,000 
Stock Issued During Period, Value, Stock Options Exercised
62,400,000 
53,700,000 
101,200,000 
61,100,000 
29,200,000 
3,300,000 
Value Shares Assumed In Connection With Business Acquisition
 
2,300,000 
 
 
 
 
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
(1,000,000)
(2,000,000)
 
 
 
Stock Repurchased and Retired During Period, Value
(134,900,000)
(177,400,000)
(74,400,000)
(71,900,000)
(49,500,000)
(119,800,000)
Shares Repuchased And Retired Related To Net Issuances
 
 
 
(200,000)
 
 
Shares repurchased and retired related to net issuances, value
(100,000)
 
(1,800,000)
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
43,100,000 
43,300,000 
40,600,000 
34,400,000 
33,500,000 
33,600,000 
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
4,300,000 
5,400,000 
50,600,000 
9,600,000 
(58,600,000)
10,500,000 
Common Stock Including Additional Paid in Capital [Member]
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
9,449,553,000 
9,363,200,000 
9,267,600,000 
9,006,300,000 
8,881,800,000 
8,878,100,000 
Consolidated net income
0 
0 
0 
0 
0 
0 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
0 
0 
0 
0 
0 
0 
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
0 
0 
0 
0 
0 
0 
Stock Issued During Period, Value, Employee Stock Purchase Plan
21,000,000 
 
20,800,000 
19,800,000 
 
19,300,000 
Stock Issued During Period, Value, Stock Options Exercised
62,400,000 
53,700,000 
101,200,000 
61,100,000 
29,200,000 
3,300,000 
Value Shares Assumed In Connection With Business Acquisition
 
2,300,000 
 
 
 
 
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
0 
0 
0 
 
 
 
Stock Repurchased and Retired During Period, Value
(44,400,000)
(9,100,000)
(5,700,000)
(400,000)
(400,000)
(100,000)
Shares Repuchased And Retired Related To Net Issuances
 
 
 
0 
 
 
Shares repurchased and retired related to net issuances, value
0 
 
0 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
43,100,000 
43,300,000 
40,600,000 
34,400,000 
33,500,000 
33,600,000 
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
4,300,000 
5,400,000 
50,600,000 
9,600,000 
(58,600,000)
10,500,000 
Retained Earnings [Member]
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
(3,137,836,000)
(3,181,700,000)
(3,143,900,000)
(3,052,400,000)
(3,064,500,000)
(3,030,100,000)
Consolidated net income
134,500,000 
130,500,000 
163,100,000 
83,786,000 
14,700,000 
(4,500,000)
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
0 
0 
0 
0 
0 
0 
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
0 
0 
0 
0 
0 
0 
Stock Issued During Period, Value, Employee Stock Purchase Plan
0 
 
0 
0 
 
0 
Stock Issued During Period, Value, Stock Options Exercised
0 
0 
0 
0 
0 
0 
Value Shares Assumed In Connection With Business Acquisition
 
0 
 
 
 
 
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
0 
0 
 
 
 
Stock Repurchased and Retired During Period, Value
(90,500,000)
(168,300,000)
(68,700,000)
(71,500,000)
(49,100,000)
(119,700,000)
Shares Repuchased And Retired Related To Net Issuances
 
 
 
(200,000)
 
 
Shares repurchased and retired related to net issuances, value
(100,000)
 
(1,800,000)
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
0 
0 
0 
0 
0 
0 
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
0 
0 
0 
0 
0 
0 
Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
4,427,000 
(10,600,000)
(4,500,000)
3,500,000 
(500,000)
(18,300,000)
Consolidated net income
0 
0 
0 
0 
0 
0 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
8,700,000 
(1,300,000)
(400,000)
(900,000)
6,200,000 
(3,600,000)
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
6,300,000 
(4,800,000)
(2,700,000)
4,900,000 
11,600,000 
(10,500,000)
Stock Issued During Period, Value, Employee Stock Purchase Plan
0 
 
0 
0 
 
0 
Stock Issued During Period, Value, Stock Options Exercised
0 
0 
0 
0 
0 
0 
Value Shares Assumed In Connection With Business Acquisition
 
0 
 
 
 
 
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
0 
0 
 
 
 
Stock Repurchased and Retired During Period, Value
0 
0 
0 
0 
0 
0 
Shares Repuchased And Retired Related To Net Issuances
 
 
 
0 
 
 
Shares repurchased and retired related to net issuances, value
0 
 
0 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
0 
0 
0 
0 
0 
0 
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
0 
0 
0 
0 
0 
0 
Noncontrolling Interest [Member]
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
700,000 
900,000 
2,100,000 
 
 
 
Consolidated net income
(200,000)
(200,000)
1,500,000 
 
 
 
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax
0 
0 
0 
 
 
 
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax
0 
0 
0 
 
 
 
Stock Issued During Period, Value, Employee Stock Purchase Plan
0 
 
0 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
0 
0 
0 
 
 
 
Value Shares Assumed In Connection With Business Acquisition
 
0 
 
 
 
 
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders
 
(1,000,000)
(2,000,000)
 
 
 
Stock Repurchased and Retired During Period, Value
0 
0 
0 
 
 
 
Shares repurchased and retired related to net issuances, value
0 
 
0 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value
0 
0 
0 
 
 
 
Adjustments to Additional Paid in Capital, Tax Effect from Share-based Compensation
0 
0 
0 
 
 
 
Note 12 - Employee Benefit Plans Level 4 (Details) (USD $)
3 Months Ended
Sep. 30, 2010
9 Months Ended
Sep. 30, 2010
Share-Based Compensation Plans
 
 
Maximum Additional Shares Expire Unexercised, Under 1996 and 2000 Plan
75,000,000 
75,000,000 
Additional Shares Reserved for Issuance, Under 2006 Plan
 
30,000,000 
Number of Shares in Outstanding Equity Awards, Under 2006 Plan
58,800,000 
58,800,000 
Number of Shares Available for Future Issuance, Under 2006 Plan
31,800,000 
31,800,000 
Common Stock Issuance in Respect of Assumed Awards in Connection With Acquisition
 
800,000 
Outstanding Stock Options and RSU's Covering Shares of Common Stock
2,100,000 
2,100,000 
Closing Stock Price At Plan Period End
$ 30.35 
$ 30.35 
Stock Option Activities
 
 
Beginning Balance, Number of Shares
 
67,400,000 
Beginning Balance, Weighted Average Exercise Price
 
20.84 
Options Granted, Number of Shares
 
5,700,000 
Options Granted, Weighted Average Exercise Price
 
28.71 
Options Assumed, Number of Shares
 
400,000 1
Options Asuumed, Weighted Average Exercise Price
 
29.42 
Options Canceled, Number of Shares
 
(1,800,000)
Options Canceled, Weighted Average Exercise Price
 
21.64 
Options Exercised, Number of Shares
 
(12,200,000)
Options Exercised, Weighted Average Exercise Price
 
17.94 
Options Expired, Number of Shares
 
(700,000)2
Options Expired, Weighted Average Exercise Price
 
61.71 
Ending Balance, Number of Shares
58,800,000 
58,800,000 
Ending Balance, Weighted Average Exercise Price
21.66 
21.66 
Weighted Average Remaining Contractual Term at Period End
 
4.2 
Aggregate Intrinsic Value at Period End
526,400,000 
526,400,000 
Vested or Expected-to-Vest Options, Number of Shares at Period End
55,800,000 
55,800,000 
Vested or Expected-to-Vest Options, Weighted Average Exercise Price at Period End
21.56 
21.56 
Vested and Expected-to-Vest Options, Weighted Average Remaining Contractual Term at Period End
 
4.1 
Vested or Expected-to-Vest Options, Aggregate Intrinsic Value at Period End
505,300,000 
505,300,000 
Exercisable Options, Number of Shares at Period End
39,400,000 
39,400,000 
Exercisable Options, Weighted Average Exercise Price at Period End
$ 20.86 
$ 20.86 
Exercisable Options, Weighted Average Remaining Contractual Term at Period End
 
3.6 
Exercisable Options, Aggregate Intrinsic Value at Period End
 
386,800,000 
Intrinsic Value of Options Exercise, Pre-Tax
37,500,000 
133,900,000 
Total Fair Value of Options Vested
19,200,000 
66,300,000 
Equity Incentive Plan 2006 [Member]
 
 
Share-Based Compensation Plans
 
 
Number of Shares in Authorized Share Reserve, Under 2006 Plan
 
64,500,000 
Additional Shares Reserved for Issuance, Under 2006 Plan
 
30,000,000 
Number of Shares in Outstanding Equity Awards, Under 2006 Plan
 
58,800,000 
Number of Shares Available for Future Issuance, Under 2006 Plan
 
31,800,000 
Stock Option Activities
 
 
Ending Balance, Number of Shares
 
58,800,000 
Employee Stock Purchase Plan 2008 [Member]
 
 
Share-Based Compensation Plans
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price
 
0.15 
Periodic Payroll Deductions of Base Compensation in Percent
 
0.1 
Maximum Purchase of Common Stock, Shares
 
6,000 
Maximum Purchase of Common Stock, Value
 
25,000 
ESPP purchase period, share limitation (in months)
 
12 
ESPP purchase period, value limitation (in calendar years)
 
1 
Note 12.2 - Employee Benefit Plans, Share Based Compensation, Equity Instruments Other Than Options Level 4 (Details)
In Millions, except Share data, unless otherwise specified
9 Months Ended
Sep. 30,		 3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2010
2010
2009
Feb. 01, 2009
2010
2009
2010
2009
2010
2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation Arrangement Vesting Period PSA in Years
3 
 
 
 
 
 
 
 
 
 
 
Restricted Stock Units Vest From Grant Date In Years
 
 
 
 
 
 
 
 
 
3 
4 
Restricted Stock Units And Performance Share Awards Activities
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Number of Shares
9,100,000 
 
 
 
 
 
 
 
 
 
 
Beginning Balance, Weighted Average Grant-Date Fair Value
21.76 
 
 
 
 
 
 
 
 
 
 
Awards Granted, Number of Shares
14,500,000 1
3,400,000 
3,500,000 2
 
 
 
 
 
 
 
 
Awards Granted, Weighted Average Grant-Date Fair Value
 
29.27 
28.73 
 
 
 
 
 
 
 
 
Awards Assumed, Number of Shares
 
400,000 3
 
 
 
 
 
 
 
 
 
Awards Assumed, Weighted Average Grant-Date Fair Value
 
31.18 
 
 
 
 
 
 
 
 
 
Awards Vested, Number of Shares
 
(1,600,000)
(400,000)
 
 
 
 
 
 
 
 
Awards Vested, Weighted Average Grant-Date Fair Value
 
26.01 
20.64 
 
 
 
 
 
 
 
 
Awards Canceled, Number of Shares
1,500,000 1
(500,000)
(300,000)
 
 
 
 
 
 
 
 
Awards Canceled, Weighted Average Grant-Date Fair Value
 
24.72 
20.92 
 
 
 
 
 
 
 
 
Ending Balance, Number of Shares
13,600,000 
 
 
 
 
 
 
 
 
 
 
Ending Balance, Weighted Average Grant-Date Fair Value
25.13 
 
 
 
 
 
 
 
 
 
 
RSUs and PSAs, Weighted Average Remaining Contractual Term at Period End
1.8 
 
 
 
 
 
 
 
 
 
 
RSUs and PSAs, Aggregate Intrinsic Value at Period End
411 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Number of Shares at Period End
10,400,000 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Weighted Average Grant-Date Fair Value at Period End
24.83 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Weighted Average Remaining Contractual Term at Period End
1.7 
 
 
 
 
 
 
 
 
 
 
Vested and Expected-to-Vest RSUs and PSAs, Aggregate Intrinsic Value at Period End
316 
 
 
 
 
 
 
 
 
 
 
Aggregate Number Of Shares Subject to PSAs Granted
 
 
1,400,000 
 
 
 
 
 
 
 
 
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
 
 
3,500,000 
 
 
 
 
 
 
 
 
Employee Stock Purchase Plans 2008 and 1999 [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Stock based compensation incremental Board approved offering period in months
 
 
 
 
 
 
 
6 
 
 
 
Stock Issued During Period, Shares, Employee Stock Purchase Plans
 
 
 
1,600,000 
 
1,000,000 
1,600,000 
2,000,000 
1,600,000 
 
 
Average Price of Common Stock, Per Share
 
 
 
12.04 
 
21.30 
12.28 
21.20 
12.28 
 
 
Common stock issued since inception under the ESPP
 
 
 
 
 
2,000,000 
 
2,000,000 
 
 
 
Common stock remaining for future issuance, ESPP
 
 
 
 
0 
8,400,000 
 
8,400,000 
 
 
 
[1] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">RSUs and PSAs with a per share or unit purchase price lower than </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">100%</font><font style="font-family:inherit;font-size:8pt;"> of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted the maximum number of shares that may be issued pursuant to the award over its full term.</font></div></td></tr></table></div>
[2] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">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 </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">1.4 million</font><font style="font-family:inherit;font-size:8pt;"> shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">0</font><font style="font-family:inherit;font-size:8pt;"> to </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">3.5 million</font><font style="font-family:inherit;font-size:8pt;"> shares.</font></div></td></tr></table></div>
Note 12.3 - Employee Benefit Plans, Shares Available For Grant Level 4 (Details)
9 Months Ended
Sep. 30, 2010
Shares Available For Grant
 
Beginning Balance, Number of Shares
18,000,000 
Additional Authorized Share Reserve Approved By Shareholders
30,000,000 
Awards Granted, Number of Shares
(14,500,000)1
Options Granted, Number of Shares
(5,700,000)
Awards Canceled, Number of Shares
1,500,000 1
Options Canceled, Number of Shares
1,800,000 2
Options Expired, Number of Shares
700,000 2
Ending Balance, Number of Shares
31,800,000 
Fair Market Value on Date of Grant For RSUS And PSAS Issued at Discount, Maximum Percentage
1 
Common Stock for Each Share Subject to RSUs and PSAs
2.1 
Common Stock for Future Issuance Under its Stock Award
112,600,000 
Restricted Stock [Member]
 
Shares Available For Grant
 
Awards Granted, Number of Shares
(3,400,000)
Awards Assumed, Number of Shares
400,000 3
Awards Canceled, Number of Shares
(500,000)
Performance Share Awards [Member]
 
Shares Available For Grant
 
Awards Granted, Number of Shares
(3,500,000)4
Awards Canceled, Number of Shares
(300,000)
Equity Incentive Plan 2006 [Member]
 
Shares Available For Grant
 
Additional Authorized Share Reserve Approved By Shareholders
30,000,000 
Ending Balance, Number of Shares
31,800,000 
[1] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">RSUs and PSAs with a per share or unit purchase price lower than </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">100%</font><font style="font-family:inherit;font-size:8pt;"> of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted the maximum number of shares that may be issued pursuant to the award over its full term.</font></div></td></tr></table></div>
[4] <div style="font-family:Times New Roman;font-size:10pt;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td rowspan="1" colspan="1"><div style="line-height:100%;text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">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 </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">1.4 million</font><font style="font-family:inherit;font-size:8pt;"> shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">0</font><font style="font-family:inherit;font-size:8pt;"> to </font><font style="font-family:inherit;font-size:8pt;color:#000000;text-decoration:none;">3.5 million</font><font style="font-family:inherit;font-size:8pt;"> shares.</font></div></td></tr></table></div>
Note 12.4 - Employee Benefit Plans, Assumptions and Resulting Estimates of Fair Value Level 4 (Details) (USD $)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Employee Stock Option [Member]
 
 
 
 
Estimates of Fair Value
 
 
 
 
Share-based compensation stock option contractual life from grant date since 2006, in years
7 
 
 
 
Share-based compensation stock option contractual life from grant date, prior to 2006, in years
10 
 
 
 
Employee Stock Option [Member] | Lower Range Limit [Member]
 
 
 
 
Estimates of Fair Value
 
 
 
 
Volatility factor
0.39 
0.43 
0.33 
0.43 
Risk-free interest rate
0.011 
0.004 
0.011 
0.004 
Expected life (years)
4.3 
4.3 
4.3 
4.3 
Dividend yield
0 
0 
0 
0 
Fair value per share
$ 8.93 
$ 9.52 
$ 7.83 
$ 6.02 
Employee Stock Option [Member] | Upper Range Limit [Member]
 
 
 
 
Estimates of Fair Value
 
 
 
 
Volatility factor
0.42 
0.46 
0.42 
0.58 
Risk-free interest rate
0.014 
0.042 
0.022 
0.042 
Expected life (years)
4.3 
5.7 
4.3 
5.8 
Dividend yield
0 
0 
0 
0 
Fair value per share
9.81 
10.25 
30.36 
10.49 
Employee Stock Purchase Plan 2008 [Member] | Lower Range Limit [Member]
 
 
 
 
Estimates of Fair Value
 
 
 
 
Volatility factor
0.36 
0.46 
0.35 
0.46 
Risk-free interest rate
0.002 
0.003 
0.002 
0.003 
Expected life (years)
0.5 
0.5 
0.5 
0.5 
Dividend yield
0 
0 
0 
0 
Weighted-average fair value per share
7.09 
7.35 
6.19 
4.51 
Employee Stock Purchase Plan 2008 [Member] | Upper Range Limit [Member]
 
 
 
 
Estimates of Fair Value
 
 
 
 
Volatility factor
0.36 
0.46 
0.36 
0.58 
Risk-free interest rate
0.002 
0.003 
0.002 
0.004 
Expected life (years)
0.5 
0.5 
0.5 
0.5 
Dividend yield
0 
0 
0 
0 
Weighted-average fair value per share
$ 7.09 
$ 7.35 
$ 7.09 
$ 7.35 
Note 12.5 - Employee Benefit Plans, Weighted Average Fair Value Per Share Level 4 (Details) (USD $)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Weighted Average Fair Value Per Share of RSU's and Performance Share Awards Granted
 
 
 
 
RSU's
$ 28.18 
$ 25.86 
$ 29.27 
$ 16.09 
PSA's
$ 27.76 
$ 26.3 
$ 28.73 
$ 17.18 
Note 12.6 - Employee Benefit Plans, Share Based Compensation by Cost and Expense Categories Level 4 (Details) (USD $)
In Thousands
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Allocated Stock-Based Compensation
$ 44,400 
$ 34,300 1
$ 129,600 
$ 101,400 1
Cost of Revenues, Product [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Allocated Stock-Based Compensation
1,000 
900 
3,100 
2,800 
Cost of Revenues, Service [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Allocated Stock-Based Compensation
3,200 
2,600 1
10,000 
7,600 1
Research and Development [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Allocated Stock-Based Compensation
19,300 
14,300 
55,000 
44,000 
Selling and Marketing Expense [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Allocated Stock-Based Compensation
13,400 
11,000 1
39,000 
31,800 1
General and Administrative Expense [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Allocated Stock-Based Compensation
$ 7,500 
$ 5,500 
$ 22,500 
$ 15,200 
Note 12.7 - Employee Benefit Plans, Share Based Compensation by Share Based Payment Award Types Level 4 (Details)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Dec. 31, 2009
Share-based Compensation Expense by Award Type
 
 
 
 
 
Share-Based Compensation Expense, Total
44 
34 
130 
101 
 
Employee Benefit Textuals [Abstract]
 
 
 
 
 
Unrecognized Compensation Cost Related to Unvested Stock Options - Adjusted for Forfeitures
118 
 
118 
 
 
Weighted Average Period that Unrecognized Compensation Cost Will be Recognized (years)
 
 
2.4 
 
 
Unrecognized Compensation Cost Related to Unvested RSU's and PSA's
130 
 
130 
 
 
Weighted Average Period That Unrecognized Compensation Cost Will be Recognized - RSU's and PSA's (In Years)
 
 
2.4 
 
 
Employee Contribution Matched in Percent
 
 
0.25 
 
 
Matching Contributions to Plan
3 
3 
11 
10 
 
Deferred Compensation Liability
7 
 
7 
 
5 
Employee Stock Option [Member]
 
 
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
 
 
Share-Based Compensation Expense, Total
21 
21 
61 
60 
 
Employee Stock Purchase Plan 2008 [Member]
 
 
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
 
 
Share-Based Compensation Expense, Total
4 
4 
10 
11 
 
Acquiree Stock Options [Member]
 
 
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
 
 
Share-Based Compensation Expense, Total
0 
0 
1 
0 
 
Other Acquisition Related Compensation [Member]
 
 
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
 
 
Share-Based Compensation Expense, Total
1 
0 
3 
0 
 
Assumed Restricted Stock Units [Member]
 
 
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
 
 
Share-Based Compensation Expense, Total
0 
0 
1 
0 
 
Restricted Stock Units and Performance Share Awards [Member]
 
 
 
 
 
Share-based Compensation Expense by Award Type
 
 
 
 
 
Share-Based Compensation Expense, Total
19 
10 
55 
30 
 
Note 13 - Segments Level 4 (Details) (USD $)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Segment Reporting Information, Revenue [Abstract]
 
 
 
 
Product revenue, net
$ 801,183,000 
$ 634,074,000 
$ 2,296,442,000 
$ 1,828,896,000 
Service revenue, net
211,224,000 
189,838,000 
606,883,000 
545,562,000 
Total net revenues
1,012,407,000 
823,912,000 
2,903,325,000 
2,374,458,000 
Operating Income (Loss) [Abstract]
 
 
 
 
Total management operating income
244,500,000 
171,300,000 
689,900,000 
438,400,000 
Amortization of purchased intangible assets
(2,400,000)1
(2,700,000)1
(5,000,000)1
(13,400,000)1
Stock-based compensation
(44,400,000)
(34,300,000)
(129,555,000)
(101,445,000)
Share-based payroll tax expense
(500,000)
(800,000)
(3,800,000)
(1,500,000)
Restructuring charges
(181,000)
(4,493,000)
(8,550,000)
(16,251,000)
Acquisition-related and other charges
(1,525,000)
(1,000,000)
(2,066,000)
(1,000,000)
Operating income
195,536,000 
127,955,000 
540,786,000 
304,843,000 
Interest and other income, net
205,000 
1,733,000 
2,497,000 
6,581,000 
Gain (loss) on equity investments
0 
0 
3,232,000 
(3,311,000)
Income before income taxes and noncontrolling interest
195,741,000 
129,688,000 
546,515,000 
308,113,000 
Infrastructure Segment [Member]
 
 
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
 
 
Product revenue, net
607,600,000 
472,000,000 
1,753,900,000 
1,396,200,000 
Service revenue, net
136,500,000 
123,200,000 
389,200,000 
350,100,000 
Total net revenues
744,100,000 
595,200,000 
2,143,100,000 
1,746,300,000 
Operating Income (Loss) [Abstract]
 
 
 
 
Total management operating income
179,900,000 
126,900,000 
537,600,000 
358,800,000 
Depreciation expense
27,800,000 
24,100,000 
78,900,000 
69,100,000 
Service Layer Technologies Segment [Member]
 
 
 
 
Segment Reporting Information, Revenue [Abstract]
 
 
 
 
Product revenue, net
193,600,000 
162,100,000 
542,500,000 
432,700,000 
Service revenue, net
74,700,000 
66,600,000 
217,700,000 
195,500,000 
Total net revenues
268,300,000 
228,700,000 
760,200,000 
628,200,000 
Operating Income (Loss) [Abstract]
 
 
 
 
Total management operating income
64,600,000 
44,400,000 
152,300,000 
79,600,000 
Depreciation expense
$ 9,400,000 
$ 9,700,000 
$ 28,500,000 
$ 29,400,000 
Note 13.2 - Segments, Geographical Level 4 (Details) (USD $)
In Thousands
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
Total net revenues
$ 1,012,407 
$ 823,912 
$ 2,903,325 
$ 2,374,458 
Total Americas [Member]
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
Total net revenues
532,800 
422,800 
1,515,400 
1,173,400 
United States [Member]
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
Total net revenues
481,200 
380,300 
1,368,000 
1,045,400 
Other Country [Member]
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
Total net revenues
51,600 
42,500 
147,400 
128,000 
Europe Middle East And Africa [Member]
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
Total net revenues
275,900 
243,200 
829,500 
698,300 
Asia Pacific [Member]
 
 
 
 
Entity-Wide Disclosure on Geographic Areas, Revenue from External Customers Attributed to Individual Foreign Countries [Line Items]
 
 
 
 
Total net revenues
$ 203,700 
$ 157,900 
$ 558,400 
$ 502,800 
Note 13.3 - Segments, Major Customers Level 4 (Details)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Dec. 31, 2009
Entity-Wide Revenue, Major Customer [Line Items]
 
 
 
 
 
Customers accounting for 10% or more of Companys net revenues
0 
 
 
0 
 
Verizon revenues as a percentage of net revenues
 
0.104 
0.1 
 
 
Percent of property and equipment held in US
0.80 
 
0.80 
 
0.80 
Note 14 - Income Taxes Level 4 (Details)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,		 3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
3 Months Ended
Jun. 30, 2009
3 Months Ended
Mar. 31, 2009
2010
2009
2010
2010
2009
2010
2009
3 Months Ended
Sep. 30, 2010
9 Months Ended
Sep. 30, 2010
Sep. 30, 2010
Dec. 31, 2009
Income Tax Contingency [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax provision
61,404,000 
45,902,000 
 
 
117,225,000 
214,018,000 
 
 
 
 
 
 
 
 
 
Effective tax rate
0.31 
0.35 
 
 
0.21 
0.69 
 
 
 
 
 
 
 
 
 
Income tax benefit
 
 
52,100,000 
54,100,000 
 
 
 
 
 
 
 
 
 
 
 
Federal statutory rate
 
 
 
 
 
 
 
0.35 
0.35 
0.35 
0.35 
 
 
 
 
Decrease in gross unrecognized tax benefit
 
 
 
 
 
 
68,300,000 
 
 
 
 
 
 
 
 
Increase in valuation allowance against deferred tax assets
 
 
 
 
 
 
 
 
 
 
 
3,200,000 
8,400,000 
 
 
Decrease In interest and penalities
 
 
 
 
 
 
5,100,000 
 
 
 
 
 
 
 
 
Income tax charges impacting effective tax rate
 
4,600,000 
 
61,800,000 
 
 
 
 
 
 
 
 
 
 
 
Income tax penalties and interest accrued
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of ongoing tax examinations
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
Interest and penalties recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,600,000 
Possible decrease in gross unrecognized tax benefits within next 12 months
 
 
 
 
7,100,000 
 
 
 
 
 
 
 
 
 
 
Note 15 - Commitments and Contingencies Level 4 (Details)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2010
2009
2010
2009
Summarization of principal contractual obligations
 
 
 
 
Operating leases
279 
 
279 
 
Sublease rental income
(0)
 
(0)
 
Purchase commitments
186 
 
186 
 
Tax liabilities
102 
 
102 
 
Other contractual obligations
58 
 
58 
 
Total
625 
 
625 
 
Commitments Textuals [Abstract]
 
 
 
 
Future minimum payments under the non-cancelable operating leases, net of committed sublease income
279 
 
279 
 
Rent expense
14 
14 
42 
43 
Purchase commitments
186 
 
186 
 
Accrual for estimated carrying charges or obsolete materials charges
21 
 
21 
 
Unrecognized tax positions included in current and long-term liabiities
102 
 
102 
 
Indemnity-related and service-related escrows
27 
 
27 
 
Data center hosting agreement
14 
 
14 
 
Licensing and servicing agreements
9 
 
9 
 
Software subscription agreement
8 
 
8 
 
Principal Contractual Obligations Maturity Period Current Year [Member]
 
 
 
 
Summarization of principal contractual obligations
 
 
 
 
Operating leases
13 
 
 
 
Sublease rental income
(0)
 
 
 
Purchase commitments
186 
 
 
 
Tax liabilities
0 
 
 
 
Other contractual obligations
29 
 
 
 
Total
228 
 
 
 
Commitments Textuals [Abstract]
 
 
 
 
Purchase commitments
186 
 
 
 
Unrecognized tax positions included in current and long-term liabiities
0 
 
 
 
Principal Contractual Obligations Maturity Period Year One [Member]
 
 
 
 
Summarization of principal contractual obligations
 
 
 
 
Operating leases
46 
 
 
 
Sublease rental income
0 
 
 
 
Purchase commitments
0 
 
 
 
Tax liabilities
0 
 
 
 
Other contractual obligations
18 
 
 
 
Total
64 
 
 
 
Commitments Textuals [Abstract]
 
 
 
 
Purchase commitments
0 
 
 
 
Unrecognized tax positions included in current and long-term liabiities
0 
 
 
 
Principal Contractual Obligations Maturity Period Year Two [Member]
 
 
 
 
Summarization of principal contractual obligations
 
 
 
 
Operating leases
41 
 
 
 
Sublease rental income
0 
 
 
 
Purchase commitments
0 
 
 
 
Tax liabilities
0 
 
 
 
Other contractual obligations
10 
 
 
 
Total
50 
 
 
 
Commitments Textuals [Abstract]
 
 
 
 
Purchase commitments
0 
 
 
 
Unrecognized tax positions included in current and long-term liabiities
0 
 
 
 
Principal Contractual Obligations Maturity Period Year Three [Member]
 
 
 
 
Summarization of principal contractual obligations
 
 
 
 
Operating leases
31 
 
 
 
Sublease rental income
0 
 
 
 
Purchase commitments
0 
 
 
 
Tax liabilities
0 
 
 
 
Other contractual obligations
2 
 
 
 
Total
33 
 
 
 
Commitments Textuals [Abstract]
 
 
 
 
Purchase commitments
0 
 
 
 
Unrecognized tax positions included in current and long-term liabiities
0 
 
 
 
Principal Contractual Obligations Maturity Period Year Four [Member]
 
 
 
 
Summarization of principal contractual obligations
 
 
 
 
Operating leases
26 
 
 
 
Sublease rental income
0 
 
 
 
Purchase commitments
0 
 
 
 
Tax liabilities
0 
 
 
 
Other contractual obligations
0 
 
 
 
Total
26 
 
 
 
Commitments Textuals [Abstract]
 
 
 
 
Purchase commitments
0 
 
 
 
Unrecognized tax positions included in current and long-term liabiities
0 
 
 
 
Principal Contractual Obligations Maturity Period After Year Four [Member]
 
 
 
 
Summarization of principal contractual obligations
 
 
 
 
Operating leases
122 
 
 
 
Sublease rental income
0 
 
 
 
Purchase commitments
0 
 
 
 
Tax liabilities
0 
 
 
 
Other contractual obligations
0 
 
 
 
Total
122 
 
 
 
Commitments Textuals [Abstract]
 
 
 
 
Purchase commitments
0 
 
 
 
Unrecognized tax positions included in current and long-term liabiities
0 
 
 
 
Principal Contractual Obligations Other [Member]
 
 
 
 
Summarization of principal contractual obligations
 
 
 
 
Operating leases
0 
 
 
 
Sublease rental income
0 
 
 
 
Purchase commitments
0 
 
 
 
Tax liabilities
102 
 
 
 
Other contractual obligations
0 
 
 
 
Total
102 
 
 
 
Commitments Textuals [Abstract]
 
 
 
 
Purchase commitments
0 
 
 
 
Unrecognized tax positions included in current and long-term liabiities
102 
 
 
 
Note 15.2 - Commitments and Contingencies, Guarantees Level 4 (Details) (USD $)
In Millions
Sep. 30, 2010
Dec. 31, 2009
Guarantees And Standby Letters Of Credit [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 22 
$ 34 
Third Party Customer Financing Guarantee [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 9 
$ 22 
Note 15.3 - Commitments and Contingencies, Legal Proceedings Level 4 (Details)
In Millions
3 Months Ended
Dec. 31, 2009
3 Months Ended
Sep. 30, 2006
9 Months Ended
Sep. 30, 2010
Loss Contingencies [Line Items]
 
 
 
Class actions filed on July 14, 2006 and August 29, 2006
 
2 
 
Cash payment for litigation settlement
169 
 
 
Number of other issuers included in IPO lawsuit allegations
 
 
300 
Estimated incremental tax liability excluding interest and penalties related to NOPA
 
 
807 
Note 16 - Joint Venture Level 4 (Details)
Sep. 30, 2010
Schedule of Equity Method Investments [Line Items]
 
Company's interest in the joint venture - NSN
0.60 
Note 17 - Subsequent Events Level 4 (Details) (USD $)
In Millions, except Per Share data
Nov. 05, 2010
Subsequent Event [Line Items]
 
Common stock repurchased and retired under stock repurchase programs, shares
3 
Common stock repurchased and retired under stock repurchase programs, value
$ 93 
Common stock repurchased and retired under stock repurchase programs, average purchase price
31.85 
Stock repurchase program remaining authorized funds
$ 839