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Mykonos | BitGravity | Total | |||||||||
Net tangible assets/(liabilities) acquired | $ | (0.2 | ) | $ | 0.1 | $ | (0.1 | ) | |||
Intangible assets acquired | 24.3 | 12.4 | 36.7 | ||||||||
Goodwill | 58.5 | 0.5 | 59.0 | ||||||||
Total | $ | 82.6 | $ | 13.0 | $ | 95.6 |
2012 Acquisitions | |||||
Weighted Average Estimated Useful Life (In Years) | Amount | ||||
Existing technology | 5 | $ | 31.7 | ||
Trade name and trademarks | 7 | 1.0 | |||
In-process research and development ("IPR&D") | — | 4.0 | |||
Total | $ | 36.7 |
|
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of September 30, 2012 | |||||||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | $ | 175.4 | $ | 0.4 | $ | — | $ | 175.8 | |||||||
Certificates of deposit | 26.9 | — | — | 26.9 | |||||||||||
Commercial paper | 3.0 | — | — | 3.0 | |||||||||||
Corporate debt securities | 566.2 | 3.1 | — | 569.3 | |||||||||||
Foreign government debt securities | 10.0 | — | — | 10.0 | |||||||||||
Government-sponsored enterprise obligations | 251.2 | 0.3 | — | 251.5 | |||||||||||
Money market funds | 1,430.2 | — | — | 1,430.2 | |||||||||||
U.S. government securities | 462.7 | 0.2 | — | 462.9 | |||||||||||
Total fixed income securities | 2,925.6 | 4.0 | — | 2,929.6 | |||||||||||
Publicly-traded equity securities | 3.0 | 0.6 | — | 3.6 | |||||||||||
Total available-for-sale securities | 2,928.6 | 4.6 | — | 2,933.2 | |||||||||||
Trading securities(*) | 12.6 | — | — | 12.6 | |||||||||||
Total | $ | 2,941.2 | $ | 4.6 | $ | — | $ | 2,945.8 | |||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 1,605.7 | $ | — | $ | — | $ | 1,605.7 | |||||||
Short-term investments | 438.2 | 1.1 | — | 439.3 | |||||||||||
Long-term investments | 897.3 | 3.5 | — | 900.8 | |||||||||||
Total | $ | 2,941.2 | $ | 4.6 | $ | — | $ | 2,945.8 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. For additional information, see Note 12, Employee Benefit Plans, under the section Deferred Compensation Plan. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of December 31, 2011 | |||||||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | $ | 124.7 | $ | 0.1 | $ | (0.1 | ) | $ | 124.7 | ||||||
Certificates of deposit | 31.8 | — | — | 31.8 | |||||||||||
Commercial paper | 10.0 | — | — | 10.0 | |||||||||||
Corporate debt securities | 508.2 | 1.0 | (0.5 | ) | 508.7 | ||||||||||
Government-sponsored enterprise obligations | 430.8 | 0.3 | (0.1 | ) | 431.0 | ||||||||||
Money market funds | 1,316.2 | — | — | 1,316.2 | |||||||||||
U.S. government securities | 301.1 | — | (0.1 | ) | 301.0 | ||||||||||
Total fixed income securities | 2,722.8 | 1.4 | (0.8 | ) | 2,723.4 | ||||||||||
Total available-for-sale securities | 2,722.8 | 1.4 | (0.8 | ) | 2,723.4 | ||||||||||
Trading securities(*) | 9.3 | — | — | 9.3 | |||||||||||
Total | $ | 2,732.1 | $ | 1.4 | $ | (0.8 | ) | $ | 2,732.7 | ||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 1,350.7 | $ | — | $ | — | $ | 1,350.7 | |||||||
Short-term investments | 640.9 | 0.4 | — | 641.3 | |||||||||||
Long-term investments | 740.5 | 1.0 | (0.8 | ) | 740.7 | ||||||||||
Total | $ | 2,732.1 | $ | 1.4 | $ | (0.8 | ) | $ | 2,732.7 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. For additional information, see Note 12, Employee Benefit Plans, under the section Deferred Compensation Plan. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Due within one year | $ | 2,028.3 | $ | 0.5 | $ | — | $ | 2,028.8 | |||||||
Due between one and five years | 897.3 | 3.5 | — | 900.8 | |||||||||||
Total | $ | 2,925.6 | $ | 4.0 | $ | — | $ | 2,929.6 |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of September 30, 2012 | |||||||||||||||||||||||
Corporate debt securities | $ | 40.8 | $ | — | $ | — | $ | — | $ | 40.8 | $ | — | |||||||||||
U.S. government securities | 51.0 | — | — | — | 51.0 | — | |||||||||||||||||
Government-sponsored enterprise obligations | 20.0 | — | — | — | 20.0 | — | |||||||||||||||||
Asset-backed securities | 16.9 | — | 1.4 | — | 18.3 | — | |||||||||||||||||
Total | $ | 128.7 | $ | — | $ | 1.4 | $ | — | $ | 130.1 | $ | — |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of December 31, 2011 | |||||||||||||||||||||||
Corporate debt securities | $ | 189.9 | $ | (0.5 | ) | $ | — | $ | — | $ | 189.9 | $ | (0.5 | ) | |||||||||
U.S. government securities | 186.7 | (0.1 | ) | — | — | 186.7 | (0.1 | ) | |||||||||||||||
Government-sponsored enterprise obligations | 146.0 | (0.1 | ) | — | — | 146.0 | (0.1 | ) | |||||||||||||||
Asset-backed securities (*) | 76.8 | (0.1 | ) | 0.3 | — | 77.1 | (0.1 | ) | |||||||||||||||
Total | $ | 599.4 | $ | (0.8 | ) | $ | 0.3 | $ | — | $ | 599.7 | $ | (0.8 | ) |
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Restricted cash: | |||||||
Demand deposits | $ | 0.9 | $ | 0.6 | |||
Total restricted cash | 0.9 | 0.6 | |||||
Restricted investments: | |||||||
Corporate debt securities | 1.9 | 1.6 | |||||
Mutual funds | 1.2 | 1.0 | |||||
Money market funds | 98.7 | 75.1 | |||||
Total restricted investments | 101.8 | 77.7 | |||||
Total restricted cash and investments | $ | 102.7 | $ | 78.3 |
|
Fair Value Measurements at September 30, 2012 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale debt securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 175.8 | $ | — | $ | 175.8 | |||||||
Certificate of deposit | — | 26.9 | — | 26.9 | |||||||||||
Commercial paper | — | 3.0 | — | 3.0 | |||||||||||
Corporate debt securities (1) | — | 571.2 | — | 571.2 | |||||||||||
Foreign government debt securities | — | 10.0 | — | 10.0 | |||||||||||
Government-sponsored enterprise obligations | 241.5 | 10.0 | — | 251.5 | |||||||||||
Money market funds (2) | 1,528.9 | — | — | 1,528.9 | |||||||||||
Mutual funds (3) | 1.2 | — | — | 1.2 | |||||||||||
U.S. government securities | 260.8 | 202.1 | — | 462.9 | |||||||||||
Total available-for-sale debt securities | 2,032.4 | 999.0 | — | 3,031.4 | |||||||||||
Available-for-sale equity securities: | |||||||||||||||
Publicly-traded equity securities | 3.6 | — | — | 3.6 | |||||||||||
Total available-for-sale securities | 2,036.0 | 999.0 | — | 3,035.0 | |||||||||||
Trading securities: | |||||||||||||||
Mutual funds (4) | 12.6 | — | — | 12.6 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 4.6 | — | 4.6 | |||||||||||
Total assets measured at fair value | $ | 2,048.6 | $ | 1,003.6 | $ | — | $ | 3,052.2 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.6 | $ | — | $ | 0.6 |
(1) | Balance includes $1.9 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust. |
(2) | Balance includes $98.7 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisitions related escrows. |
(3) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(4) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
Fair Value Measurements at September 30, 2012 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 | ||||||||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 1,430.2 | $ | 175.5 | $ | — | $ | 1,605.7 | |||||||
Short-term investments | 212.7 | 226.6 | — | 439.3 | |||||||||||
Long-term investments | 305.8 | 595.0 | — | 900.8 | |||||||||||
Restricted investments | 99.9 | 1.9 | — | 101.8 | |||||||||||
Prepaid expenses and other current assets | — | 4.6 | — | 4.6 | |||||||||||
Total assets measured at fair value | $ | 2,048.6 | $ | 1,003.6 | $ | — | $ | 3,052.2 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.6 | $ | — | $ | 0.6 |
Fair Value Measurements at December 31, 2011 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale debt securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 124.7 | $ | — | $ | 124.7 | |||||||
Certificate of deposit | — | 31.8 | — | 31.8 | |||||||||||
Commercial paper | — | 10.0 | — | 10.0 | |||||||||||
Corporate debt securities (1) | — | 510.3 | — | 510.3 | |||||||||||
Government-sponsored enterprise obligations | 314.2 | 116.8 | — | 431.0 | |||||||||||
Money market funds (2) | 1,391.3 | — | — | 1,391.3 | |||||||||||
Mutual funds (3) | 1.0 | — | — | 1.0 | |||||||||||
U.S. government securities | 149.3 | 151.7 | — | 301.0 | |||||||||||
Total available-for-sale debt securities | 1,855.8 | 945.3 | — | 2,801.1 | |||||||||||
Trading securities: | |||||||||||||||
Mutual funds (4) | 9.3 | — | — | 9.3 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 0.4 | — | 0.4 | |||||||||||
Total assets measured at fair value | $ | 1,865.1 | $ | 945.7 | $ | — | $ | 2,810.8 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 9.6 | $ | — | $ | 9.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 9.6 | $ | — | $ | 9.6 |
(1) | Balance includes $1.6 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust. |
(2) | Balance includes $75.1 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisition related escrows. |
(3) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(4) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
Fair Value Measurements at December 31, 2011 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 1,316.2 | $ | 34.5 | $ | — | $ | 1,350.7 | |||||||
Short-term investments | 168.9 | 472.4 | — | 641.3 | |||||||||||
Long-term investments | 303.9 | 436.8 | — | 740.7 | |||||||||||
Restricted investments | 76.1 | 1.6 | — | 77.7 | |||||||||||
Prepaid expenses and other current assets | — | 0.4 | — | 0.4 | |||||||||||
Total assets measured at fair value | $ | 1,865.1 | $ | 945.7 | $ | — | $ | 2,810.8 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 9.6 | $ | — | $ | 9.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 9.6 | $ | — | $ | 9.6 |
|
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Cash flow hedges | $ | 130.2 | $ | 184.3 | |||
Non-designated derivatives | 102.8 | 122.7 | |||||
Total | $ | 233.0 | $ | 307.0 |
|
PSD | SSD | Total | |||||||||
Balance as of January 1, 2012 | $ | 1,795.6 | $ | 2,132.5 | $ | 3,928.1 | |||||
Additions due to business combinations | — | 59.6 | 59.6 | ||||||||
Accumulated adjustment to goodwill | — | (0.6 | ) | (0.6 | ) | ||||||
Balance as of September 30, 2012 | $ | 1,795.6 | $ | 2,191.5 | $ | 3,987.1 |
Gross | Accumulated Amortization | Impairments and Other Charges | Net | ||||||||||||
As of September 30, 2012 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 538.1 | $ | (426.4 | ) | $ | (16.1 | ) | $ | 95.6 | |||||
Other | 92.5 | (69.4 | ) | — | 23.1 | ||||||||||
Total purchased intangible assets | $ | 630.6 | $ | (495.8 | ) | $ | (16.1 | ) | $ | 118.7 | |||||
As of December 31, 2011 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 499.5 | $ | (404.2 | ) | $ | — | $ | 95.3 | ||||||
Other | 91.5 | (66.5 | ) | — | 25.0 | ||||||||||
Total intangible assets with finite lives | 591.0 | (470.7 | ) | — | 120.3 | ||||||||||
IPR&D with indefinite lives | 2.8 | — | — | 2.8 | |||||||||||
Total purchased intangible assets | $ | 593.8 | $ | (470.7 | ) | $ | — | $ | 123.1 |
Years Ending December 31, | Amount | ||
Remainder of 2012 | $ | 7.2 | |
2013 | 28.6 | ||
2014 | 28.5 | ||
2015 | 24.9 | ||
2016 | 12.2 | ||
Thereafter | 17.3 | ||
Total | $ | 118.7 |
|
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Inventories, net | |||||||
Production materials | $ | 61.4 | $ | 52.4 | |||
Finished goods | 19.4 | 16.7 | |||||
Total inventories, net | $ | 80.8 | $ | 69.1 |
As of | |||
September 30, 2012 | |||
Beginning balance | $ | 28.3 | |
Provisions made during the period, net | 24.3 | ||
Change in estimate | — | ||
Actual costs incurred during the period | (22.8 | ) | |
Ending balance | $ | 29.8 |
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 299.4 | $ | 288.1 | |||
Distributor inventory and other sell-through items | 136.9 | 134.0 | |||||
Deferred gross product revenue | 436.3 | 422.1 | |||||
Deferred cost of product revenue | (103.3 | ) | (136.9 | ) | |||
Deferred product revenue, net | 333.0 | 285.2 | |||||
Deferred service revenue | 659.9 | 681.8 | |||||
Total | $ | 992.9 | $ | 967.0 | |||
Reported as: | |||||||
Current | $ | 771.7 | $ | 712.6 | |||
Long-term | 221.2 | 254.4 | |||||
Total | $ | 992.9 | $ | 967.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income | $ | 2.6 | $ | 2.2 | $ | 8.3 | $ | 7.2 | |||||||
Interest expense | (12.8 | ) | (13.9 | ) | (40.6 | ) | (35.6 | ) | |||||||
Other | 6.2 | (4.2 | ) | 6.7 | (7.7 | ) | |||||||||
Other expense, net | $ | (4.0 | ) | $ | (15.9 | ) | $ | (25.6 | ) | $ | (36.1 | ) |
|
December 31, 2011 | Charges | Cash Payments | Non-cash Settlements and Other | September 30, 2012 | |||||||||||||||
Severance | $ | 3.1 | $ | 32.6 | $ | (6.6 | ) | $ | 1.0 | $ | 30.1 | ||||||||
Facilities | 1.0 | 3.2 | (1.5 | ) | — | 2.7 | |||||||||||||
Other charges | — | 0.4 | — | (0.4 | ) | — | |||||||||||||
Total | $ | 4.1 | $ | 36.2 | $ | (8.1 | ) | $ | 0.6 | $ | 32.8 |
|
As of September 30, 2012 | ||||||
Amount | Effective Interest Rates | |||||
Senior notes: | ||||||
3.10% fixed-rate notes, due 2016 ("2016 Notes") | $ | 300.0 | 3.12 | % | ||
4.60% fixed-rate notes, due 2021 ("2021 Notes") | 300.0 | 4.63 | % | |||
5.95% fixed-rate notes, due 2041 ("2041 Notes") | 400.0 | 6.01 | % | |||
Total senior notes | 1,000.0 | |||||
Unaccreted discount | (0.9 | ) | ||||
Total | $ | 999.1 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Consolidated net income | $ | 16.8 | $ | 83.7 | $ | 90.8 | $ | 328.8 | |||||||
Other comprehensive income: | |||||||||||||||
Change in unrealized gain (loss) on investments | 8.4 | (8.7 | ) | 17.5 | (5.8 | ) | |||||||||
Change in foreign currency translation adjustment | 5.2 | (7.5 | ) | 5.3 | 1.7 | ||||||||||
Total other comprehensive income (loss) | 13.6 | (16.2 | ) | 22.8 | (4.1 | ) | |||||||||
Consolidated comprehensive income | 30.4 | 67.5 | 113.6 | 324.7 | |||||||||||
Adjust for comprehensive loss attributable to noncontrolling interest | — | — | — | 0.1 | |||||||||||
Comprehensive income attributable to Juniper Networks | $ | 30.4 | $ | 67.5 | $ | 113.6 | $ | 324.8 |
|
Outstanding Options | ||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance at January 1, 2012 | 38.6 | $ | 23.98 | |||||||||
Options granted | 3.1 | 22.81 | ||||||||||
Options canceled | (2.1 | ) | 25.61 | |||||||||
Options exercised | (2.8 | ) | 10.84 | |||||||||
Options expired | (1.1 | ) | 26.97 | |||||||||
Balance at September 30, 2012 | 35.7 | $ | 24.73 | 3.2 | $ | 17.2 | ||||||
As of September 30, 2012: | ||||||||||||
Vested or expected-to-vest options | 34.6 | $ | 24.58 | 3.2 | $ | 17.1 | ||||||
Exercisable options | 27.4 | $ | 23.59 | 2.6 | $ | 15.4 |
Outstanding RSUs and PSAs | ||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance at January 1, 2012 | 19.6 | $ | 30.27 | |||||||||
RSUs granted | 7.8 | 20.83 | ||||||||||
RSUs assumed | 0.2 | 22.47 | ||||||||||
PSAs granted (*) | 2.2 | 23.07 | ||||||||||
RSUs vested | (2.2 | ) | 28.10 | |||||||||
PSAs vested | (1.9 | ) | 18.02 | |||||||||
RSUs canceled | (1.5 | ) | 28.66 | |||||||||
PSAs canceled | (0.9 | ) | 32.50 | |||||||||
Balance at September 30, 2012 | 23.3 | $ | 27.77 | 1.4 | $ | 399.0 | ||||||
As of September 30, 2012: | ||||||||||||
Vested and expected-to-vest RSUs and PSAs | 18.8 | $ | 27.56 | 1.3 | $ | 322.4 |
(*) | The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.9 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.2 million shares. |
Number of Shares | ||
Balance at January 1, 2012 | 41.1 | |
Additional shares authorized for issuance | 25.0 | |
RSUs and PSAs granted (1) | (21.0 | ) |
Options granted | (3.1 | ) |
RSUs and PSAs canceled (1) | 5.0 | |
Options canceled (2) | 2.1 | |
Options expired (2) | 1.1 | |
Balance at September 30, 2012 | 50.2 |
(1) | RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted represents the maximum number of shares that may be issued pursuant to the award over its full term. |
(2) | Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired after May 18, 2006, which become available for grant under the 2006 Plan according to its terms. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2012 | 2011 | 2012 | 2011 | ||||
Stock Options: | |||||||
Volatility | 46% | 46% | 46% | 41% | |||
Risk-free interest rate | 0.7% | 0.8% | 0.8% | 1.7% | |||
Expected life (years) | 4.2 | 4.1 | 4.2 | 4.3 | |||
Dividend yield | — | — | — | — | |||
Weighted-average fair value per share | $6.89 | $8.34 | $8.46 | $15.12 | |||
Employee Stock Purchase Plan: | |||||||
Volatility | 42% | 45% | 47% | 40% | |||
Risk-free interest rate | 0.1% | 0.2% | 0.1% | 0.2% | |||
Expected life (years) | 0.5 | 0.5 | 0.5 | 0.5 | |||
Dividend yield | — | — | — | — | |||
Weighted-average fair value per share | $4.77 | $6.37 | $5.53 | $7.50 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Cost of revenues - Product | $ | 1.2 | $ | 1.2 | $ | 3.5 | $ | 3.4 | |||||||
Cost of revenues - Service | 3.8 | 3.8 | 13.2 | 12.1 | |||||||||||
Research and development | 26.0 | 26.5 | 80.3 | 75.4 | |||||||||||
Sales and marketing | 21.4 | 20.6 | 64.3 | 53.0 | |||||||||||
General and administrative | 6.7 | 8.4 | 24.7 | 25.7 | |||||||||||
Total | $ | 59.1 | $ | 60.5 | $ | 186.0 | $ | 169.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Stock options | $ | 14.3 | $ | 18.8 | $ | 47.1 | $ | 58.4 | |||||||
RSUs and PSAs | 39.7 | 35.6 | 122.3 | 93.6 | |||||||||||
Assumed RSUs | 0.4 | — | 1.0 | — | |||||||||||
Employee stock purchase plan | 4.7 | 4.6 | 15.6 | 13.2 | |||||||||||
Other acquisition-related compensation | — | 1.5 | — | 4.4 | |||||||||||
Total | $ | 59.1 | $ | 60.5 | $ | 186.0 | $ | 169.6 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net revenues: | |||||||||||||||
PSD | $ | 892.9 | $ | 879.8 | $ | 2,588.6 | $ | 2,695.3 | |||||||
SSD | 225.4 | 226.0 | 636.0 | 632.7 | |||||||||||
Total net revenues | 1,118.3 | 1,105.8 | 3,224.6 | 3,328.0 | |||||||||||
Segment contribution margin: | |||||||||||||||
PSD | 356.1 | 381.8 | 1,011.9 | 1,214.3 | |||||||||||
SSD | 99.8 | 94.5 | 256.2 | 250.3 | |||||||||||
Total segment contribution margin | 455.9 | 476.3 | 1,268.1 | 1,464.6 | |||||||||||
Corporate unallocated expenses (1) | (266.5 | ) | (255.1 | ) | (794.2 | ) | (755.4 | ) | |||||||
Amortization of purchased intangible assets (2) | (9.0 | ) | (6.7 | ) | (25.1 | ) | (20.2 | ) | |||||||
Share-based compensation expense | (59.1 | ) | (60.5 | ) | (186.0 | ) | (169.6 | ) | |||||||
Share-based payroll tax expense | (0.1 | ) | (0.2 | ) | (1.1 | ) | (9.2 | ) | |||||||
Restructuring and other charges (3) | (83.4 | ) | (16.8 | ) | (88.6 | ) | (15.6 | ) | |||||||
Acquisition-related and other charges (4) | (0.3 | ) | — | (1.2 | ) | (9.3 | ) | ||||||||
Other | 5.3 | — | 5.3 | — | |||||||||||
Total operating income | 42.8 | 137.0 | 177.2 | 485.3 | |||||||||||
Other expense, net | (4.0 | ) | (15.9 | ) | (25.6 | ) | (36.1 | ) | |||||||
Income before income taxes and noncontrolling interest | $ | 38.8 | $ | 121.1 | $ | 151.6 | $ | 449.2 |
(1) | Amount includes unallocated costs for global functions such as sales, marketing, and general and administrative. |
(2) | Amount includes amortization expense of purchased intangible assets reported in operating expenses and in cost of revenues. |
(3) | Amount includes restructuring and other charges reported in operating expenses and in cost of revenues. |
(4) | Amount includes acquisition-related costs reported in operating expenses and in cost of revenues. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Americas: | |||||||||||||||
United States | $ | 507.6 | $ | 502.3 | $ | 1,513.6 | $ | 1,552.3 | |||||||
Other | 52.7 | 54.2 | 165.3 | 164.6 | |||||||||||
Total Americas | 560.3 | 556.5 | 1,678.9 | 1,716.9 | |||||||||||
Europe, Middle East, and Africa | 321.3 | 311.3 | 927.7 | 940.2 | |||||||||||
Asia Pacific | 236.7 | 238.0 | 618.0 | 670.9 | |||||||||||
Total | $ | 1,118.3 | $ | 1,105.8 | $ | 3,224.6 | $ | 3,328.0 |
|
|
Total | Remainder of 2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Other | ||||||||||||||||||||||||
Operating leases | $ | 280.6 | $ | 15.9 | $ | 52.1 | $ | 45.6 | $ | 37.2 | $ | 28.6 | $ | 101.2 | $ | — | |||||||||||||||
Purchase commitments | 105.0 | 105.0 | — | — | — | — | — | — | |||||||||||||||||||||||
Tax liabilities | 116.9 | — | — | — | — | — | — | 116.9 | |||||||||||||||||||||||
Long-term debt | 1,000.0 | — | — | — | — | 300.0 | 700.0 | — | |||||||||||||||||||||||
Interest payment on long-term debt | 826.2 | — | 46.9 | 46.9 | 46.9 | 41.9 | 643.6 | — | |||||||||||||||||||||||
Other contractual obligations | 143.3 | 131.2 | 6.3 | 3.4 | 2.4 | — | — | — | |||||||||||||||||||||||
Total | $ | 2,472.0 | $ | 252.1 | $ | 105.3 | $ | 95.9 | $ | 86.5 | $ | 370.5 | $ | 1,444.8 | $ | 116.9 |
|
|
|
Mykonos | BitGravity | Total | |||||||||
Net tangible assets/(liabilities) acquired | $ | (0.2 | ) | $ | 0.1 | $ | (0.1 | ) | |||
Intangible assets acquired | 24.3 | 12.4 | 36.7 | ||||||||
Goodwill | 58.5 | 0.5 | 59.0 | ||||||||
Total | $ | 82.6 | $ | 13.0 | $ | 95.6 |
2012 Acquisitions | |||||
Weighted Average Estimated Useful Life (In Years) | Amount | ||||
Existing technology | 5 | $ | 31.7 | ||
Trade name and trademarks | 7 | 1.0 | |||
In-process research and development ("IPR&D") | — | 4.0 | |||
Total | $ | 36.7 |
|
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of September 30, 2012 | |||||||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | $ | 175.4 | $ | 0.4 | $ | — | $ | 175.8 | |||||||
Certificates of deposit | 26.9 | — | — | 26.9 | |||||||||||
Commercial paper | 3.0 | — | — | 3.0 | |||||||||||
Corporate debt securities | 566.2 | 3.1 | — | 569.3 | |||||||||||
Foreign government debt securities | 10.0 | — | — | 10.0 | |||||||||||
Government-sponsored enterprise obligations | 251.2 | 0.3 | — | 251.5 | |||||||||||
Money market funds | 1,430.2 | — | — | 1,430.2 | |||||||||||
U.S. government securities | 462.7 | 0.2 | — | 462.9 | |||||||||||
Total fixed income securities | 2,925.6 | 4.0 | — | 2,929.6 | |||||||||||
Publicly-traded equity securities | 3.0 | 0.6 | — | 3.6 | |||||||||||
Total available-for-sale securities | 2,928.6 | 4.6 | — | 2,933.2 | |||||||||||
Trading securities(*) | 12.6 | — | — | 12.6 | |||||||||||
Total | $ | 2,941.2 | $ | 4.6 | $ | — | $ | 2,945.8 | |||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 1,605.7 | $ | — | $ | — | $ | 1,605.7 | |||||||
Short-term investments | 438.2 | 1.1 | — | 439.3 | |||||||||||
Long-term investments | 897.3 | 3.5 | — | 900.8 | |||||||||||
Total | $ | 2,941.2 | $ | 4.6 | $ | — | $ | 2,945.8 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. For additional information, see Note 12, Employee Benefit Plans, under the section Deferred Compensation Plan. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of December 31, 2011 | |||||||||||||||
Fixed income securities: | |||||||||||||||
Asset-backed securities | $ | 124.7 | $ | 0.1 | $ | (0.1 | ) | $ | 124.7 | ||||||
Certificates of deposit | 31.8 | — | — | 31.8 | |||||||||||
Commercial paper | 10.0 | — | — | 10.0 | |||||||||||
Corporate debt securities | 508.2 | 1.0 | (0.5 | ) | 508.7 | ||||||||||
Government-sponsored enterprise obligations | 430.8 | 0.3 | (0.1 | ) | 431.0 | ||||||||||
Money market funds | 1,316.2 | — | — | 1,316.2 | |||||||||||
U.S. government securities | 301.1 | — | (0.1 | ) | 301.0 | ||||||||||
Total fixed income securities | 2,722.8 | 1.4 | (0.8 | ) | 2,723.4 | ||||||||||
Total available-for-sale securities | 2,722.8 | 1.4 | (0.8 | ) | 2,723.4 | ||||||||||
Trading securities(*) | 9.3 | — | — | 9.3 | |||||||||||
Total | $ | 2,732.1 | $ | 1.4 | $ | (0.8 | ) | $ | 2,732.7 | ||||||
Reported as: | |||||||||||||||
Cash equivalents | $ | 1,350.7 | $ | — | $ | — | $ | 1,350.7 | |||||||
Short-term investments | 640.9 | 0.4 | — | 641.3 | |||||||||||
Long-term investments | 740.5 | 1.0 | (0.8 | ) | 740.7 | ||||||||||
Total | $ | 2,732.1 | $ | 1.4 | $ | (0.8 | ) | $ | 2,732.7 |
(*) | Balance includes the Company's non-qualified deferred compensation plan assets. For additional information, see Note 12, Employee Benefit Plans, under the section Deferred Compensation Plan. |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Due within one year | $ | 2,028.3 | $ | 0.5 | $ | — | $ | 2,028.8 | |||||||
Due between one and five years | 897.3 | 3.5 | — | 900.8 | |||||||||||
Total | $ | 2,925.6 | $ | 4.0 | $ | — | $ | 2,929.6 |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of September 30, 2012 | |||||||||||||||||||||||
Corporate debt securities | $ | 40.8 | $ | — | $ | — | $ | — | $ | 40.8 | $ | — | |||||||||||
U.S. government securities | 51.0 | — | — | — | 51.0 | — | |||||||||||||||||
Government-sponsored enterprise obligations | 20.0 | — | — | — | 20.0 | — | |||||||||||||||||
Asset-backed securities | 16.9 | — | 1.4 | — | 18.3 | — | |||||||||||||||||
Total | $ | 128.7 | $ | — | $ | 1.4 | $ | — | $ | 130.1 | $ | — |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of December 31, 2011 | |||||||||||||||||||||||
Corporate debt securities | $ | 189.9 | $ | (0.5 | ) | $ | — | $ | — | $ | 189.9 | $ | (0.5 | ) | |||||||||
U.S. government securities | 186.7 | (0.1 | ) | — | — | 186.7 | (0.1 | ) | |||||||||||||||
Government-sponsored enterprise obligations | 146.0 | (0.1 | ) | — | — | 146.0 | (0.1 | ) | |||||||||||||||
Asset-backed securities (*) | 76.8 | (0.1 | ) | 0.3 | — | 77.1 | (0.1 | ) | |||||||||||||||
Total | $ | 599.4 | $ | (0.8 | ) | $ | 0.3 | $ | — | $ | 599.7 | $ | (0.8 | ) |
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Restricted cash: | |||||||
Demand deposits | $ | 0.9 | $ | 0.6 | |||
Total restricted cash | 0.9 | 0.6 | |||||
Restricted investments: | |||||||
Corporate debt securities | 1.9 | 1.6 | |||||
Mutual funds | 1.2 | 1.0 | |||||
Money market funds | 98.7 | 75.1 | |||||
Total restricted investments | 101.8 | 77.7 | |||||
Total restricted cash and investments | $ | 102.7 | $ | 78.3 |
|
Fair Value Measurements at September 30, 2012 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale debt securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 175.8 | $ | — | $ | 175.8 | |||||||
Certificate of deposit | — | 26.9 | — | 26.9 | |||||||||||
Commercial paper | — | 3.0 | — | 3.0 | |||||||||||
Corporate debt securities (1) | — | 571.2 | — | 571.2 | |||||||||||
Foreign government debt securities | — | 10.0 | — | 10.0 | |||||||||||
Government-sponsored enterprise obligations | 241.5 | 10.0 | — | 251.5 | |||||||||||
Money market funds (2) | 1,528.9 | — | — | 1,528.9 | |||||||||||
Mutual funds (3) | 1.2 | — | — | 1.2 | |||||||||||
U.S. government securities | 260.8 | 202.1 | — | 462.9 | |||||||||||
Total available-for-sale debt securities | 2,032.4 | 999.0 | — | 3,031.4 | |||||||||||
Available-for-sale equity securities: | |||||||||||||||
Publicly-traded equity securities | 3.6 | — | — | 3.6 | |||||||||||
Total available-for-sale securities | 2,036.0 | 999.0 | — | 3,035.0 | |||||||||||
Trading securities: | |||||||||||||||
Mutual funds (4) | 12.6 | — | — | 12.6 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 4.6 | — | 4.6 | |||||||||||
Total assets measured at fair value | $ | 2,048.6 | $ | 1,003.6 | $ | — | $ | 3,052.2 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.6 | $ | — | $ | 0.6 |
(1) | Balance includes $1.9 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust. |
(2) | Balance includes $98.7 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisitions related escrows. |
(3) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(4) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
Fair Value Measurements at December 31, 2011 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets measured at fair value: | |||||||||||||||
Available-for-sale debt securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 124.7 | $ | — | $ | 124.7 | |||||||
Certificate of deposit | — | 31.8 | — | 31.8 | |||||||||||
Commercial paper | — | 10.0 | — | 10.0 | |||||||||||
Corporate debt securities (1) | — | 510.3 | — | 510.3 | |||||||||||
Government-sponsored enterprise obligations | 314.2 | 116.8 | — | 431.0 | |||||||||||
Money market funds (2) | 1,391.3 | — | — | 1,391.3 | |||||||||||
Mutual funds (3) | 1.0 | — | — | 1.0 | |||||||||||
U.S. government securities | 149.3 | 151.7 | — | 301.0 | |||||||||||
Total available-for-sale debt securities | 1,855.8 | 945.3 | — | 2,801.1 | |||||||||||
Trading securities: | |||||||||||||||
Mutual funds (4) | 9.3 | — | — | 9.3 | |||||||||||
Derivative assets: | |||||||||||||||
Foreign exchange contracts | — | 0.4 | — | 0.4 | |||||||||||
Total assets measured at fair value | $ | 1,865.1 | $ | 945.7 | $ | — | $ | 2,810.8 | |||||||
Liabilities measured at fair value: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Foreign exchange contracts | $ | — | $ | 9.6 | $ | — | $ | 9.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 9.6 | $ | — | $ | 9.6 |
(1) | Balance includes $1.6 million of restricted investments measured at fair market value, related to the Company's India Gratuity Trust. |
(2) | Balance includes $75.1 million of restricted investments measured at fair market value, related to the Company's D&O trust and acquisition related escrows. |
(3) | Balance relates to the restricted investments measured at fair market value of the Company's India Gratuity Trust. |
(4) | Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets. |
Fair Value Measurements at September 30, 2012 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 | ||||||||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 1,430.2 | $ | 175.5 | $ | — | $ | 1,605.7 | |||||||
Short-term investments | 212.7 | 226.6 | — | 439.3 | |||||||||||
Long-term investments | 305.8 | 595.0 | — | 900.8 | |||||||||||
Restricted investments | 99.9 | 1.9 | — | 101.8 | |||||||||||
Prepaid expenses and other current assets | — | 4.6 | — | 4.6 | |||||||||||
Total assets measured at fair value | $ | 2,048.6 | $ | 1,003.6 | $ | — | $ | 3,052.2 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 0.6 | $ | — | $ | 0.6 |
Fair Value Measurements at December 31, 2011 Using: | |||||||||||||||
Quoted Prices in Active Markets For Identical Assets | Significant Other Observable Remaining Inputs | Significant Other Unobservable Remaining Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Total assets measured at fair value, reported as: | |||||||||||||||
Cash equivalents | $ | 1,316.2 | $ | 34.5 | $ | — | $ | 1,350.7 | |||||||
Short-term investments | 168.9 | 472.4 | — | 641.3 | |||||||||||
Long-term investments | 303.9 | 436.8 | — | 740.7 | |||||||||||
Restricted investments | 76.1 | 1.6 | — | 77.7 | |||||||||||
Prepaid expenses and other current assets | — | 0.4 | — | 0.4 | |||||||||||
Total assets measured at fair value | $ | 1,865.1 | $ | 945.7 | $ | — | $ | 2,810.8 | |||||||
Total liabilities measured at fair value, reported as: | |||||||||||||||
Other accrued liabilities | $ | — | $ | 9.6 | $ | — | $ | 9.6 | |||||||
Total liabilities measured at fair value | $ | — | $ | 9.6 | $ | — | $ | 9.6 |
|
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Cash flow hedges | $ | 130.2 | $ | 184.3 | |||
Non-designated derivatives | 102.8 | 122.7 | |||||
Total | $ | 233.0 | $ | 307.0 |
|
Gross | Accumulated Amortization | Impairments and Other Charges | Net | ||||||||||||
As of September 30, 2012 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 538.1 | $ | (426.4 | ) | $ | (16.1 | ) | $ | 95.6 | |||||
Other | 92.5 | (69.4 | ) | — | 23.1 | ||||||||||
Total purchased intangible assets | $ | 630.6 | $ | (495.8 | ) | $ | (16.1 | ) | $ | 118.7 | |||||
As of December 31, 2011 | |||||||||||||||
Intangible assets with finite lives: | |||||||||||||||
Technologies and patents | $ | 499.5 | $ | (404.2 | ) | $ | — | $ | 95.3 | ||||||
Other | 91.5 | (66.5 | ) | — | 25.0 | ||||||||||
Total intangible assets with finite lives | 591.0 | (470.7 | ) | — | 120.3 | ||||||||||
IPR&D with indefinite lives | 2.8 | — | — | 2.8 | |||||||||||
Total purchased intangible assets | $ | 593.8 | $ | (470.7 | ) | $ | — | $ | 123.1 |
PSD | SSD | Total | |||||||||
Balance as of January 1, 2012 | $ | 1,795.6 | $ | 2,132.5 | $ | 3,928.1 | |||||
Additions due to business combinations | — | 59.6 | 59.6 | ||||||||
Accumulated adjustment to goodwill | — | (0.6 | ) | (0.6 | ) | ||||||
Balance as of September 30, 2012 | $ | 1,795.6 | $ | 2,191.5 | $ | 3,987.1 |
Years Ending December 31, | Amount | ||
Remainder of 2012 | $ | 7.2 | |
2013 | 28.6 | ||
2014 | 28.5 | ||
2015 | 24.9 | ||
2016 | 12.2 | ||
Thereafter | 17.3 | ||
Total | $ | 118.7 |
|
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Inventories, net | |||||||
Production materials | $ | 61.4 | $ | 52.4 | |||
Finished goods | 19.4 | 16.7 | |||||
Total inventories, net | $ | 80.8 | $ | 69.1 |
As of | |||
September 30, 2012 | |||
Beginning balance | $ | 28.3 | |
Provisions made during the period, net | 24.3 | ||
Change in estimate | — | ||
Actual costs incurred during the period | (22.8 | ) | |
Ending balance | $ | 29.8 |
As of | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 299.4 | $ | 288.1 | |||
Distributor inventory and other sell-through items | 136.9 | 134.0 | |||||
Deferred gross product revenue | 436.3 | 422.1 | |||||
Deferred cost of product revenue | (103.3 | ) | (136.9 | ) | |||
Deferred product revenue, net | 333.0 | 285.2 | |||||
Deferred service revenue | 659.9 | 681.8 | |||||
Total | $ | 992.9 | $ | 967.0 | |||
Reported as: | |||||||
Current | $ | 771.7 | $ | 712.6 | |||
Long-term | 221.2 | 254.4 | |||||
Total | $ | 992.9 | $ | 967.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income | $ | 2.6 | $ | 2.2 | $ | 8.3 | $ | 7.2 | |||||||
Interest expense | (12.8 | ) | (13.9 | ) | (40.6 | ) | (35.6 | ) | |||||||
Other | 6.2 | (4.2 | ) | 6.7 | (7.7 | ) | |||||||||
Other expense, net | $ | (4.0 | ) | $ | (15.9 | ) | $ | (25.6 | ) | $ | (36.1 | ) |
|
December 31, 2011 | Charges | Cash Payments | Non-cash Settlements and Other | September 30, 2012 | |||||||||||||||
Severance | $ | 3.1 | $ | 32.6 | $ | (6.6 | ) | $ | 1.0 | $ | 30.1 | ||||||||
Facilities | 1.0 | 3.2 | (1.5 | ) | — | 2.7 | |||||||||||||
Other charges | — | 0.4 | — | (0.4 | ) | — | |||||||||||||
Total | $ | 4.1 | $ | 36.2 | $ | (8.1 | ) | $ | 0.6 | $ | 32.8 |
|
As of September 30, 2012 | ||||||
Amount | Effective Interest Rates | |||||
Senior notes: | ||||||
3.10% fixed-rate notes, due 2016 ("2016 Notes") | $ | 300.0 | 3.12 | % | ||
4.60% fixed-rate notes, due 2021 ("2021 Notes") | 300.0 | 4.63 | % | |||
5.95% fixed-rate notes, due 2041 ("2041 Notes") | 400.0 | 6.01 | % | |||
Total senior notes | 1,000.0 | |||||
Unaccreted discount | (0.9 | ) | ||||
Total | $ | 999.1 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Consolidated net income | $ | 16.8 | $ | 83.7 | $ | 90.8 | $ | 328.8 | |||||||
Other comprehensive income: | |||||||||||||||
Change in unrealized gain (loss) on investments | 8.4 | (8.7 | ) | 17.5 | (5.8 | ) | |||||||||
Change in foreign currency translation adjustment | 5.2 | (7.5 | ) | 5.3 | 1.7 | ||||||||||
Total other comprehensive income (loss) | 13.6 | (16.2 | ) | 22.8 | (4.1 | ) | |||||||||
Consolidated comprehensive income | 30.4 | 67.5 | 113.6 | 324.7 | |||||||||||
Adjust for comprehensive loss attributable to noncontrolling interest | — | — | — | 0.1 | |||||||||||
Comprehensive income attributable to Juniper Networks | $ | 30.4 | $ | 67.5 | $ | 113.6 | $ | 324.8 |
|
Outstanding Options | ||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance at January 1, 2012 | 38.6 | $ | 23.98 | |||||||||
Options granted | 3.1 | 22.81 | ||||||||||
Options canceled | (2.1 | ) | 25.61 | |||||||||
Options exercised | (2.8 | ) | 10.84 | |||||||||
Options expired | (1.1 | ) | 26.97 | |||||||||
Balance at September 30, 2012 | 35.7 | $ | 24.73 | 3.2 | $ | 17.2 | ||||||
As of September 30, 2012: | ||||||||||||
Vested or expected-to-vest options | 34.6 | $ | 24.58 | 3.2 | $ | 17.1 | ||||||
Exercisable options | 27.4 | $ | 23.59 | 2.6 | $ | 15.4 |
Outstanding RSUs and PSAs | ||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance at January 1, 2012 | 19.6 | $ | 30.27 | |||||||||
RSUs granted | 7.8 | 20.83 | ||||||||||
RSUs assumed | 0.2 | 22.47 | ||||||||||
PSAs granted (*) | 2.2 | 23.07 | ||||||||||
RSUs vested | (2.2 | ) | 28.10 | |||||||||
PSAs vested | (1.9 | ) | 18.02 | |||||||||
RSUs canceled | (1.5 | ) | 28.66 | |||||||||
PSAs canceled | (0.9 | ) | 32.50 | |||||||||
Balance at September 30, 2012 | 23.3 | $ | 27.77 | 1.4 | $ | 399.0 | ||||||
As of September 30, 2012: | ||||||||||||
Vested and expected-to-vest RSUs and PSAs | 18.8 | $ | 27.56 | 1.3 | $ | 322.4 |
(*) | The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.9 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 2.2 million shares. |
Number of Shares | ||
Balance at January 1, 2012 | 41.1 | |
Additional shares authorized for issuance | 25.0 | |
RSUs and PSAs granted (1) | (21.0 | ) |
Options granted | (3.1 | ) |
RSUs and PSAs canceled (1) | 5.0 | |
Options canceled (2) | 2.1 | |
Options expired (2) | 1.1 | |
Balance at September 30, 2012 | 50.2 |
(1) | RSUs and PSAs with a per share or unit purchase price lower than 100% of the fair market value of the Company's common stock on the day of the grant under the 2006 Plan are counted against shares authorized under the plan as two and one-tenth shares of common stock for each share subject to such award. The number of shares subject to PSAs granted represents the maximum number of shares that may be issued pursuant to the award over its full term. |
(2) | Includes canceled or expired options under the 1996 Plan and the 2000 Plan that expired after May 18, 2006, which become available for grant under the 2006 Plan according to its terms. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2012 | 2011 | 2012 | 2011 | ||||
Stock Options: | |||||||
Volatility | 46% | 46% | 46% | 41% | |||
Risk-free interest rate | 0.7% | 0.8% | 0.8% | 1.7% | |||
Expected life (years) | 4.2 | 4.1 | 4.2 | 4.3 | |||
Dividend yield | — | — | — | — | |||
Weighted-average fair value per share | $6.89 | $8.34 | $8.46 | $15.12 | |||
Employee Stock Purchase Plan: | |||||||
Volatility | 42% | 45% | 47% | 40% | |||
Risk-free interest rate | 0.1% | 0.2% | 0.1% | 0.2% | |||
Expected life (years) | 0.5 | 0.5 | 0.5 | 0.5 | |||
Dividend yield | — | — | — | — | |||
Weighted-average fair value per share | $4.77 | $6.37 | $5.53 | $7.50 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Cost of revenues - Product | $ | 1.2 | $ | 1.2 | $ | 3.5 | $ | 3.4 | |||||||
Cost of revenues - Service | 3.8 | 3.8 | 13.2 | 12.1 | |||||||||||
Research and development | 26.0 | 26.5 | 80.3 | 75.4 | |||||||||||
Sales and marketing | 21.4 | 20.6 | 64.3 | 53.0 | |||||||||||
General and administrative | 6.7 | 8.4 | 24.7 | 25.7 | |||||||||||
Total | $ | 59.1 | $ | 60.5 | $ | 186.0 | $ | 169.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Stock options | $ | 14.3 | $ | 18.8 | $ | 47.1 | $ | 58.4 | |||||||
RSUs and PSAs | 39.7 | 35.6 | 122.3 | 93.6 | |||||||||||
Assumed RSUs | 0.4 | — | 1.0 | — | |||||||||||
Employee stock purchase plan | 4.7 | 4.6 | 15.6 | 13.2 | |||||||||||
Other acquisition-related compensation | — | 1.5 | — | 4.4 | |||||||||||
Total | $ | 59.1 | $ | 60.5 | $ | 186.0 | $ | 169.6 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net revenues: | |||||||||||||||
PSD | $ | 892.9 | $ | 879.8 | $ | 2,588.6 | $ | 2,695.3 | |||||||
SSD | 225.4 | 226.0 | 636.0 | 632.7 | |||||||||||
Total net revenues | 1,118.3 | 1,105.8 | 3,224.6 | 3,328.0 | |||||||||||
Segment contribution margin: | |||||||||||||||
PSD | 356.1 | 381.8 | 1,011.9 | 1,214.3 | |||||||||||
SSD | 99.8 | 94.5 | 256.2 | 250.3 | |||||||||||
Total segment contribution margin | 455.9 | 476.3 | 1,268.1 | 1,464.6 | |||||||||||
Corporate unallocated expenses (1) | (266.5 | ) | (255.1 | ) | (794.2 | ) | (755.4 | ) | |||||||
Amortization of purchased intangible assets (2) | (9.0 | ) | (6.7 | ) | (25.1 | ) | (20.2 | ) | |||||||
Share-based compensation expense | (59.1 | ) | (60.5 | ) | (186.0 | ) | (169.6 | ) | |||||||
Share-based payroll tax expense | (0.1 | ) | (0.2 | ) | (1.1 | ) | (9.2 | ) | |||||||
Restructuring and other charges (3) | (83.4 | ) | (16.8 | ) | (88.6 | ) | (15.6 | ) | |||||||
Acquisition-related and other charges (4) | (0.3 | ) | — | (1.2 | ) | (9.3 | ) | ||||||||
Other | 5.3 | — | 5.3 | — | |||||||||||
Total operating income | 42.8 | 137.0 | 177.2 | 485.3 | |||||||||||
Other expense, net | (4.0 | ) | (15.9 | ) | (25.6 | ) | (36.1 | ) | |||||||
Income before income taxes and noncontrolling interest | $ | 38.8 | $ | 121.1 | $ | 151.6 | $ | 449.2 |
(1) | Amount includes unallocated costs for global functions such as sales, marketing, and general and administrative. |
(2) | Amount includes amortization expense of purchased intangible assets reported in operating expenses and in cost of revenues. |
(3) | Amount includes restructuring and other charges reported in operating expenses and in cost of revenues. |
(4) | Amount includes acquisition-related costs reported in operating expenses and in cost of revenues. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Americas: | |||||||||||||||
United States | $ | 507.6 | $ | 502.3 | $ | 1,513.6 | $ | 1,552.3 | |||||||
Other | 52.7 | 54.2 | 165.3 | 164.6 | |||||||||||
Total Americas | 560.3 | 556.5 | 1,678.9 | 1,716.9 | |||||||||||
Europe, Middle East, and Africa | 321.3 | 311.3 | 927.7 | 940.2 | |||||||||||
Asia Pacific | 236.7 | 238.0 | 618.0 | 670.9 | |||||||||||
Total | $ | 1,118.3 | $ | 1,105.8 | $ | 3,224.6 | $ | 3,328.0 |
|
Total | Remainder of 2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Other | ||||||||||||||||||||||||
Operating leases | $ | 280.6 | $ | 15.9 | $ | 52.1 | $ | 45.6 | $ | 37.2 | $ | 28.6 | $ | 101.2 | $ | — | |||||||||||||||
Purchase commitments | 105.0 | 105.0 | — | — | — | — | — | — | |||||||||||||||||||||||
Tax liabilities | 116.9 | — | — | — | — | — | — | 116.9 | |||||||||||||||||||||||
Long-term debt | 1,000.0 | — | — | — | — | 300.0 | 700.0 | — | |||||||||||||||||||||||
Interest payment on long-term debt | 826.2 | — | 46.9 | 46.9 | 46.9 | 41.9 | 643.6 | — | |||||||||||||||||||||||
Other contractual obligations | 143.3 | 131.2 | 6.3 | 3.4 | 2.4 | — | — | — | |||||||||||||||||||||||
Total | $ | 2,472.0 | $ | 252.1 | $ | 105.3 | $ | 95.9 | $ | 86.5 | $ | 370.5 | $ | 1,444.8 | $ | 116.9 |
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