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• | Forfeitures: The Company elected to account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect adjustment of $9.0 million, which increased the January 1, 2017 opening accumulated deficit balance on the Condensed Consolidated Balance Sheets. |
• | Income tax accounting: The Company is also required to record excess tax benefits and tax deficiencies related to stock- based compensation as income tax benefit or expense in the statement of operations prospectively when share-based awards vest or are settled. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in no impact to the January 1, 2017 opening accumulated deficit balance as previously unrecognized excess tax effects were fully offset by a valuation allowance. |
• | Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the excess tax benefits from share-based compensation as a financing activity. For the six months ended June 30, 2016, the Company reclassified $5.6 million of excess tax benefits from share-based compensation to operating activities from financing activities. |
|
As of June 30, 2017 | As of December 31, 2016 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||
Asset-backed securities | $ | 309.6 | $ | — | $ | (0.3 | ) | $ | 309.3 | $ | 303.0 | $ | 0.2 | $ | (0.2 | ) | $ | 303.0 | |||||||||||||
Certificates of deposit | 45.7 | — | — | 45.7 | 66.1 | — | — | 66.1 | |||||||||||||||||||||||
Commercial paper | 167.8 | — | — | 167.8 | 147.7 | — | — | 147.7 | |||||||||||||||||||||||
Corporate debt securities | 863.1 | 1.0 | (1.0 | ) | 863.1 | 846.5 | 0.4 | (2.0 | ) | 844.9 | |||||||||||||||||||||
Foreign government debt securities | 44.0 | — | (0.1 | ) | 43.9 | 34.0 | — | (0.1 | ) | 33.9 | |||||||||||||||||||||
Time deposits | 290.7 | — | — | 290.7 | 264.6 | — | — | 264.6 | |||||||||||||||||||||||
U.S. government agency securities | 163.5 | — | (0.5 | ) | 163.0 | 127.0 | — | (0.3 | ) | 126.7 | |||||||||||||||||||||
U.S. government securities | 359.1 | 0.1 | (0.5 | ) | 358.7 | 390.7 | 0.1 | (0.4 | ) | 390.4 | |||||||||||||||||||||
Total fixed income securities | 2,243.5 | 1.1 | (2.4 | ) | 2,242.2 | 2,179.6 | 0.7 | (3.0 | ) | 2,177.3 | |||||||||||||||||||||
Money market funds | 1,206.6 | — | — | 1,206.6 | 592.2 | — | — | 592.2 | |||||||||||||||||||||||
Mutual funds | 8.3 | — | — | 8.3 | 8.0 | — | — | 8.0 | |||||||||||||||||||||||
Publicly-traded equity securities | 6.2 | — | (0.9 | ) | 5.3 | 5.3 | — | (0.7 | ) | 4.6 | |||||||||||||||||||||
Total available-for-sale securities | 3,464.6 | 1.1 | (3.3 | ) | 3,462.4 | 2,785.1 | 0.7 | (3.7 | ) | 2,782.1 | |||||||||||||||||||||
Trading securities in mutual funds | 23.9 | — | — | 23.9 | 21.0 | — | — | 21.0 | |||||||||||||||||||||||
Total | $ | 3,488.5 | $ | 1.1 | $ | (3.3 | ) | $ | 3,486.3 | $ | 2,806.1 | $ | 0.7 | $ | (3.7 | ) | $ | 2,803.1 | |||||||||||||
Reported as: | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 1,589.2 | $ | — | $ | — | $ | 1,589.2 | $ | 907.1 | $ | — | $ | — | $ | 907.1 | |||||||||||||||
Restricted investments | 75.0 | — | — | 75.0 | 71.9 | — | — | 71.9 | |||||||||||||||||||||||
Short-term investments | 754.0 | 0.1 | (1.4 | ) | 752.7 | 753.4 | 0.1 | (1.2 | ) | 752.3 | |||||||||||||||||||||
Long-term investments | 1,070.3 | 1.0 | (1.9 | ) | 1,069.4 | 1,073.7 | 0.6 | (2.5 | ) | 1,071.8 | |||||||||||||||||||||
Total | $ | 3,488.5 | $ | 1.1 | $ | (3.3 | ) | $ | 3,486.3 | $ | 2,806.1 | $ | 0.7 | $ | (3.7 | ) | $ | 2,803.1 |
Amortized Cost | Estimated Fair Value | ||||||
Due in less than one year | $ | 1,173.2 | $ | 1,172.8 | |||
Due between one and five years | 1,070.3 | 1,069.4 | |||||
Total | $ | 2,243.5 | $ | 2,242.2 |
As of June 30, 2017 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities | $ | 270.1 | $ | (0.3 | ) | $ | — | $ | — | $ | 270.1 | $ | (0.3 | ) | |||||||||
Corporate debt securities | 391.3 | (1.0 | ) | — | — | 391.3 | (1.0 | ) | |||||||||||||||
Foreign government debt securities | 34.2 | (0.1 | ) | — | — | 34.2 | (0.1 | ) | |||||||||||||||
U.S. government agency securities | 132.5 | (0.5 | ) | — | — | 132.5 | (0.5 | ) | |||||||||||||||
U.S. government securities | 249.7 | (0.5 | ) | — | — | 249.7 | (0.5 | ) | |||||||||||||||
Total fixed income securities | 1,077.8 | (2.4 | ) | — | — | 1,077.8 | (2.4 | ) | |||||||||||||||
Publicly-traded equity securities | 5.3 | (0.9 | ) | — | — | 5.3 | (0.9 | ) | |||||||||||||||
Total available-for-sale securities | $ | 1,083.1 | $ | (3.3 | ) | $ | — | $ | — | $ | 1,083.1 | $ | (3.3 | ) |
As of December 31, 2016 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities | $ | 122.2 | $ | (0.2 | ) | $ | — | $ | — | $ | 122.2 | $ | (0.2 | ) | |||||||||
Corporate debt securities | 470.8 | (1.9 | ) | 76.7 | (0.1 | ) | 547.5 | (2.0 | ) | ||||||||||||||
Foreign government debt securities | 20.3 | (0.1 | ) | — | — | 20.3 | (0.1 | ) | |||||||||||||||
U.S. government agency securities | 106.7 | (0.3 | ) | — | — | 106.7 | (0.3 | ) | |||||||||||||||
U.S. government securities | 254.1 | (0.4 | ) | — | — | 254.1 | (0.4 | ) | |||||||||||||||
Total fixed income securities | 974.1 | (2.9 | ) | 76.7 | (0.1 | ) | 1,050.8 | (3.0 | ) | ||||||||||||||
Publicly-traded equity securities | 4.6 | (0.7 | ) | — | — | 4.6 | (0.7 | ) | |||||||||||||||
Total available-for-sale securities | $ | 978.7 | $ | (3.6 | ) | $ | 76.7 | $ | (0.1 | ) | $ | 1,055.4 | $ | (3.7 | ) |
|
Fair Value Measurements at June 30, 2017 Using: | Fair Value Measurements at December 31, 2016 Using: | ||||||||||||||||||||||||||||||
Quoted Prices in Active Markets For Identical Assets (Level 1) | Significant Other Observable Remaining Inputs (Level 2) | Significant Other Unobservable Remaining Inputs (Level 3) | Total | Quoted Prices in Active Markets For Identical Assets (Level 1) | Significant Other Observable Remaining Inputs (Level 2) | Significant Other Unobservable Remaining Inputs (Level 3) | Total | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | 309.3 | $ | — | $ | 309.3 | $ | — | $ | 303.0 | $ | — | $ | 303.0 | |||||||||||||||
Certificates of deposit | — | 45.7 | — | 45.7 | — | 66.1 | — | 66.1 | |||||||||||||||||||||||
Commercial paper | — | 167.8 | — | 167.8 | — | 147.7 | — | 147.7 | |||||||||||||||||||||||
Corporate debt securities | — | 863.1 | — | 863.1 | — | 844.9 | — | 844.9 | |||||||||||||||||||||||
Foreign government debt securities | — | 43.9 | — | 43.9 | — | 33.9 | — | 33.9 | |||||||||||||||||||||||
Money market funds | 1,206.6 | — | — | 1,206.6 | 592.2 | — | — | 592.2 | |||||||||||||||||||||||
Mutual funds | 8.3 | — | — | 8.3 | 8.0 | — | — | 8.0 | |||||||||||||||||||||||
Publicly-traded equity securities | 5.3 | — | — | 5.3 | 4.6 | — | — | 4.6 | |||||||||||||||||||||||
Time deposits | — | 290.7 | — | 290.7 | — | 264.6 | — | 264.6 | |||||||||||||||||||||||
U.S. government agency securities | — | 163.0 | — | 163.0 | — | 126.7 | — | 126.7 | |||||||||||||||||||||||
U.S. government securities | 337.1 | 21.6 | — | 358.7 | 345.0 | 45.4 | — | 390.4 | |||||||||||||||||||||||
Total available-for-sale securities | 1,557.3 | 1,905.1 | — | 3,462.4 | 949.8 | 1,832.3 | — | 2,782.1 | |||||||||||||||||||||||
Trading securities in mutual funds | 23.9 | — | — | 23.9 | 21.0 | — | — | 21.0 | |||||||||||||||||||||||
Privately-held debt and redeemable preferred stock securities | — | — | 42.3 | 42.3 | — | — | 43.7 | 43.7 | |||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 5.8 | — | 5.8 | — | 0.9 | — | 0.9 | |||||||||||||||||||||||
Total assets measured at fair value | $ | 1,581.2 | $ | 1,910.9 | $ | 42.3 | $ | 3,534.4 | $ | 970.8 | $ | 1,833.2 | $ | 43.7 | $ | 2,847.7 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) | |||||||||||
Total liabilities measured at fair value | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) | |||||||||||
Total assets, reported as: | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 1,168.4 | $ | 420.8 | $ | — | $ | 1,589.2 | $ | 549.4 | $ | 357.7 | $ | — | $ | 907.1 | |||||||||||||||
Restricted investments | 75.0 | — | — | 75.0 | 71.9 | — | — | 71.9 | |||||||||||||||||||||||
Short-term investments | 194.8 | 557.9 | — | 752.7 | 178.0 | 574.3 | — | 752.3 | |||||||||||||||||||||||
Long-term investments | 143.0 | 926.4 | — | 1,069.4 | 171.5 | 900.3 | — | 1,071.8 | |||||||||||||||||||||||
Prepaid expenses and other current assets | — | 5.8 | — | 5.8 | — | 0.9 | — | 0.9 | |||||||||||||||||||||||
Other long-term assets | — | — | 42.3 | 42.3 | — | — | 43.7 | 43.7 | |||||||||||||||||||||||
Total assets measured at fair value | $ | 1,581.2 | $ | 1,910.9 | $ | 42.3 | $ | 3,534.4 | $ | 970.8 | $ | 1,833.2 | $ | 43.7 | $ | 2,847.7 | |||||||||||||||
Total liabilities, reported as: | |||||||||||||||||||||||||||||||
Other accrued liabilities | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) | |||||||||||
Total liabilities measured at fair value | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) |
|
As of | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Cash flow hedges | $ | 250.4 | $ | 172.0 | |||
Non-designated derivatives | 46.1 | — | |||||
Total | $ | 296.5 | $ | 172.0 |
|
Balance as of December 31, 2016 | $ | 3,081.7 | |
Other(*) | (2.3 | ) | |
Balance as of June 30, 2017 | $ | 3,079.4 |
|
As of | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Production and service materials | $ | 79.2 | $ | 75.6 | |||
Finished goods | 17.4 | 19.9 | |||||
Inventory | $ | 96.6 | $ | 95.5 | |||
Reported as: | |||||||
Prepaid expenses and other current assets | $ | 87.6 | $ | 91.4 | |||
Other long-term assets | 9.0 | 4.1 | |||||
Total | $ | 96.6 | $ | 95.5 |
• | extend the maturity date from April 1, 2016 to December 31, 2018; |
• | provide that interest due on the Pulse Note through December 31, 2015 shall be paid in kind by increasing the outstanding principal amount of the note and increase the interest rate on the Pulse Note; and |
• | require a minimum payment of $75.0 million on or prior to April 1, 2017, less any principal amount previously pre-paid to the Company. |
• | extend the maturity date of the remaining outstanding amount of approximately $58.0 million from December 31, 2018 to September 30, 2022; |
• | provide that interest due after April 1, 2017 can be paid in kind by increasing the outstanding principal amount of the note or paid in cash; |
• | require the promissory note to be subordinated to other debt raised by the issuer; and |
• | entitle the Company to additional financial considerations if the issuer of the note and its affiliates meet certain conditions. |
Balance as of December 31, 2016 | $ | 41.3 | |
Provisions made during the period | 20.7 | ||
Actual costs incurred during the period | (27.5 | ) | |
Balance as of June 30, 2017 | $ | 34.5 |
As of | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 265.5 | $ | 302.4 | |||
Distributor inventory and other sell-through items | 76.1 | 74.2 | |||||
Deferred gross product revenue | 341.6 | 376.6 | |||||
Deferred cost of product revenue | (44.3 | ) | (53.7 | ) | |||
Deferred product revenue, net | 297.3 | 322.9 | |||||
Deferred service revenue | 1,203.7 | 1,158.2 | |||||
Total | $ | 1,501.0 | $ | 1,481.1 | |||
Reported as: | |||||||
Current | $ | 998.0 | $ | 1,032.0 | |||
Long-term | 503.0 | 449.1 | |||||
Total | $ | 1,501.0 | $ | 1,481.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest income | $ | 12.0 | $ | 8.5 | $ | 22.4 | $ | 16.4 | |||||||
Interest expense | (25.0 | ) | (25.0 | ) | (50.3 | ) | (47.5 | ) | |||||||
Gain (loss) on investments, net | 0.8 | 3.6 | 2.0 | (1.8 | ) | ||||||||||
Other | (0.8 | ) | 1.3 | (2.8 | ) | (0.9 | ) | ||||||||
Other expense, net | $ | (13.0 | ) | $ | (11.6 | ) | $ | (28.7 | ) | $ | (33.8 | ) |
|
December 31, 2016(*) | Charges | Cash Payments | Other | June 30, 2017 | |||||||||||||||
Severance | $ | 0.7 | $ | 25.4 | $ | (18.3 | ) | $ | (0.5 | ) | $ | 7.3 | |||||||
Contract terminations and other | 0.5 | 2.0 | (0.2 | ) | 0.1 | 2.4 | |||||||||||||
Total | $ | 1.2 | $ | 27.4 | $ | (18.5 | ) | $ | (0.4 | ) | $ | 9.7 |
|
As of June 30, 2017 | ||||||
Amount | Effective Interest Rates | |||||
Senior Notes ("Notes"): | ||||||
3.125% fixed-rate notes, due February 2019 | $ | 350.0 | 3.36 | % | ||
3.300% fixed-rate notes, due June 2020 | 300.0 | 3.47 | % | |||
4.600% fixed-rate notes, due March 2021 | 300.0 | 4.69 | % | |||
4.500% fixed-rate notes, due March 2024, issued March 2014 | 350.0 | 4.63 | % | |||
4.500% fixed-rate notes, due March 2024, issued February 2016 | 150.0 | 4.87 | % | |||
4.350% fixed-rate notes, due June 2025 | 300.0 | 4.47 | % | |||
5.950% fixed-rate notes, due March 2041 | 400.0 | 6.03 | % | |||
Total senior notes | 2,150.0 | |||||
Unaccreted discount and debt issuance costs | (15.0 | ) | ||||
Total | $ | 2,135.0 | ||||
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Shares repurchased | 4.0 | 5.5 | 8.5 | 8.6 | |||||||||||
Average price per share | $ | 30.59 | $ | 23.08 | $ | 29.25 | $ | 23.37 | |||||||
Amount repurchased | $ | 125.0 | $ | 125.5 | $ | 250.0 | $ | 200.5 |
Unrealized Gains on Available-for- Sale Securities(1) | Unrealized (Losses) Gains on Cash Flow Hedges(2) | Foreign Currency Translation Adjustments | Total | ||||||||||||
Balance as of December 31, 2016 | $ | 16.6 | $ | (4.5 | ) | $ | (49.4 | ) | $ | (37.3 | ) | ||||
Other comprehensive gains before reclassifications | 1.6 | 8.3 | 10.9 | 20.8 | |||||||||||
Amount reclassified from accumulated other comprehensive loss | (0.1 | ) | 0.1 | — | — | ||||||||||
Other comprehensive gains, net | 1.5 | 8.4 | 10.9 | 20.8 | |||||||||||
Balance as of June 30, 2017 | $ | 18.1 | $ | 3.9 | $ | (38.5 | ) | $ | (16.5 | ) |
(1) | The reclassifications out of accumulated other comprehensive loss during the six months ended June 30, 2017 for realized gains on available-for-sale securities were not material, and were included in other expense, net, in the Condensed Consolidated Statements of Operations. |
(2) | The reclassifications out of accumulated other comprehensive loss during the six months ended June 30, 2017 for realized gains on cash flow hedges were not material, and were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations. |
|
Outstanding Options | ||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2016 | 2.4 | $ | 29.20 | |||||||||
Exercised | (0.4 | ) | 16.63 | |||||||||
Expired/canceled | (0.7 | ) | 30.83 | |||||||||
Balance as of June 30, 2017 | 1.3 | $ | 32.46 | 1.2 | $ | 4.8 | ||||||
As of June 30, 2017: | ||||||||||||
Vested and expected-to-vest options | 1.3 | $ | 32.46 | 1.2 | $ | 4.8 | ||||||
Exercisable options | 1.2 | $ | 33.63 | 0.9 | $ | 3.6 |
Outstanding RSUs, RSAs, and PSAs | ||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2016 | 20.9 | $ | 24.05 | |||||||||
RSUs granted (1)(3) | 5.8 | 27.55 | ||||||||||
PSAs granted (2)(3) | 0.6 | 27.37 | ||||||||||
RSUs vested | (5.6 | ) | 23.87 | |||||||||
RSAs vested | (0.3 | ) | 22.70 | |||||||||
PSAs vested | (0.6 | ) | 24.41 | |||||||||
RSUs canceled | (1.0 | ) | 24.08 | |||||||||
PSAs canceled | (0.3 | ) | 24.77 | |||||||||
Balance as of June 30, 2017 | 19.5 | $ | 25.08 | 1.3 | $ | 542.8 |
(1) | Includes service-based and market-based RSUs. |
(2) | The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.6 million shares. |
(3) | The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. During the six months ended June 30, 2017, the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017 and April 25, 2017. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenues - Product | $ | 1.4 | $ | 1.5 | $ | 2.3 | $ | 3.4 | |||||||
Cost of revenues - Service | 5.3 | 4.3 | 9.6 | 7.8 | |||||||||||
Research and development | 14.1 | 29.5 | 48.9 | 61.8 | |||||||||||
Sales and marketing | 16.3 | 13.8 | 31.6 | 23.2 | |||||||||||
General and administrative | 7.0 | 6.5 | 13.7 | 11.2 | |||||||||||
Total | $ | 44.1 | $ | 55.6 | $ | 106.1 | $ | 107.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Stock options | $ | 0.2 | $ | 1.1 | $ | 0.3 | $ | 2.3 | |||||||
RSUs, RSAs, and PSAs | 40.1 | 50.4 | 97.9 | 97.2 | |||||||||||
ESPP | 3.8 | 4.1 | 7.9 | 7.9 | |||||||||||
Total | $ | 44.1 | $ | 55.6 | $ | 106.1 | $ | 107.4 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Routing | $ | 572.5 | $ | 574.7 | $ | 1,094.1 | $ | 1,078.8 | |||||||
Switching | 276.0 | 209.2 | 517.6 | 384.7 | |||||||||||
Security | 68.7 | 78.2 | 134.4 | 151.6 | |||||||||||
Total product | 917.2 | 862.1 | 1,746.1 | 1,615.1 | |||||||||||
Total service | 391.7 | 359.2 | 783.8 | 704.1 | |||||||||||
Total | $ | 1,308.9 | $ | 1,221.3 | $ | 2,529.9 | $ | 2,319.2 |
• | Cloud: companies that are heavily reliant on the cloud for their business model’s success. As an example, customers in the cloud vertical can include cloud service providers as well as enterprises that provide software-as-a-service, infrastructure-as-a-service, or platform-as-a-service. |
• | Telecom/Cable: includes wireline and wireless carriers and cable operators. |
• | Strategic Enterprise: generally is comprised of financial services; national, federal, state, and local governments; research and educational institutions, and enterprises not represented in the Cloud vertical. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cloud | $ | 379.6 | $ | 287.3 | $ | 711.2 | $ | 552.1 | |||||||
Telecom/Cable | 562.4 | 571.0 | 1,130.9 | 1,089.1 | |||||||||||
Strategic Enterprise | 366.9 | 363.0 | 687.8 | 678.0 | |||||||||||
Total | $ | 1,308.9 | $ | 1,221.3 | $ | 2,529.9 | $ | 2,319.2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Americas: | |||||||||||||||
United States | $ | 749.1 | $ | 661.3 | $ | 1,407.2 | $ | 1,240.3 | |||||||
Other | 51.7 | 58.7 | 105.2 | 107.9 | |||||||||||
Total Americas | 800.8 | 720.0 | 1,512.4 | 1,348.2 | |||||||||||
Europe, Middle East, and Africa | 288.2 | 300.1 | 572.7 | 585.5 | |||||||||||
Asia Pacific | 219.9 | 201.2 | 444.8 | 385.5 | |||||||||||
Total | $ | 1,308.9 | $ | 1,221.3 | $ | 2,529.9 | $ | 2,319.2 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Income before income taxes | $ | 245.2 | $ | 192.2 | $ | 385.8 | $ | 318.7 | |||||||
Income tax provision | $ | 65.4 | $ | 52.2 | $ | 97.2 | $ | 87.3 | |||||||
Effective tax rate | 26.7 | % | 27.2 | % | 25.2 | % | 27.4 | % |
|
|
|
• | Forfeitures: The Company elected to account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect adjustment of $9.0 million, which increased the January 1, 2017 opening accumulated deficit balance on the Condensed Consolidated Balance Sheets. |
• | Income tax accounting: The Company is also required to record excess tax benefits and tax deficiencies related to stock- based compensation as income tax benefit or expense in the statement of operations prospectively when share-based awards vest or are settled. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in no impact to the January 1, 2017 opening accumulated deficit balance as previously unrecognized excess tax effects were fully offset by a valuation allowance. |
• | Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the excess tax benefits from share-based compensation as a financing activity. For the six months ended June 30, 2016, the Company reclassified $5.6 million of excess tax benefits from share-based compensation to operating activities from financing activities. |
|
As of June 30, 2017 | As of December 31, 2016 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||
Asset-backed securities | $ | 309.6 | $ | — | $ | (0.3 | ) | $ | 309.3 | $ | 303.0 | $ | 0.2 | $ | (0.2 | ) | $ | 303.0 | |||||||||||||
Certificates of deposit | 45.7 | — | — | 45.7 | 66.1 | — | — | 66.1 | |||||||||||||||||||||||
Commercial paper | 167.8 | — | — | 167.8 | 147.7 | — | — | 147.7 | |||||||||||||||||||||||
Corporate debt securities | 863.1 | 1.0 | (1.0 | ) | 863.1 | 846.5 | 0.4 | (2.0 | ) | 844.9 | |||||||||||||||||||||
Foreign government debt securities | 44.0 | — | (0.1 | ) | 43.9 | 34.0 | — | (0.1 | ) | 33.9 | |||||||||||||||||||||
Time deposits | 290.7 | — | — | 290.7 | 264.6 | — | — | 264.6 | |||||||||||||||||||||||
U.S. government agency securities | 163.5 | — | (0.5 | ) | 163.0 | 127.0 | — | (0.3 | ) | 126.7 | |||||||||||||||||||||
U.S. government securities | 359.1 | 0.1 | (0.5 | ) | 358.7 | 390.7 | 0.1 | (0.4 | ) | 390.4 | |||||||||||||||||||||
Total fixed income securities | 2,243.5 | 1.1 | (2.4 | ) | 2,242.2 | 2,179.6 | 0.7 | (3.0 | ) | 2,177.3 | |||||||||||||||||||||
Money market funds | 1,206.6 | — | — | 1,206.6 | 592.2 | — | — | 592.2 | |||||||||||||||||||||||
Mutual funds | 8.3 | — | — | 8.3 | 8.0 | — | — | 8.0 | |||||||||||||||||||||||
Publicly-traded equity securities | 6.2 | — | (0.9 | ) | 5.3 | 5.3 | — | (0.7 | ) | 4.6 | |||||||||||||||||||||
Total available-for-sale securities | 3,464.6 | 1.1 | (3.3 | ) | 3,462.4 | 2,785.1 | 0.7 | (3.7 | ) | 2,782.1 | |||||||||||||||||||||
Trading securities in mutual funds | 23.9 | — | — | 23.9 | 21.0 | — | — | 21.0 | |||||||||||||||||||||||
Total | $ | 3,488.5 | $ | 1.1 | $ | (3.3 | ) | $ | 3,486.3 | $ | 2,806.1 | $ | 0.7 | $ | (3.7 | ) | $ | 2,803.1 | |||||||||||||
Reported as: | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 1,589.2 | $ | — | $ | — | $ | 1,589.2 | $ | 907.1 | $ | — | $ | — | $ | 907.1 | |||||||||||||||
Restricted investments | 75.0 | — | — | 75.0 | 71.9 | — | — | 71.9 | |||||||||||||||||||||||
Short-term investments | 754.0 | 0.1 | (1.4 | ) | 752.7 | 753.4 | 0.1 | (1.2 | ) | 752.3 | |||||||||||||||||||||
Long-term investments | 1,070.3 | 1.0 | (1.9 | ) | 1,069.4 | 1,073.7 | 0.6 | (2.5 | ) | 1,071.8 | |||||||||||||||||||||
Total | $ | 3,488.5 | $ | 1.1 | $ | (3.3 | ) | $ | 3,486.3 | $ | 2,806.1 | $ | 0.7 | $ | (3.7 | ) | $ | 2,803.1 |
Amortized Cost | Estimated Fair Value | ||||||
Due in less than one year | $ | 1,173.2 | $ | 1,172.8 | |||
Due between one and five years | 1,070.3 | 1,069.4 | |||||
Total | $ | 2,243.5 | $ | 2,242.2 |
As of June 30, 2017 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities | $ | 270.1 | $ | (0.3 | ) | $ | — | $ | — | $ | 270.1 | $ | (0.3 | ) | |||||||||
Corporate debt securities | 391.3 | (1.0 | ) | — | — | 391.3 | (1.0 | ) | |||||||||||||||
Foreign government debt securities | 34.2 | (0.1 | ) | — | — | 34.2 | (0.1 | ) | |||||||||||||||
U.S. government agency securities | 132.5 | (0.5 | ) | — | — | 132.5 | (0.5 | ) | |||||||||||||||
U.S. government securities | 249.7 | (0.5 | ) | — | — | 249.7 | (0.5 | ) | |||||||||||||||
Total fixed income securities | 1,077.8 | (2.4 | ) | — | — | 1,077.8 | (2.4 | ) | |||||||||||||||
Publicly-traded equity securities | 5.3 | (0.9 | ) | — | — | 5.3 | (0.9 | ) | |||||||||||||||
Total available-for-sale securities | $ | 1,083.1 | $ | (3.3 | ) | $ | — | $ | — | $ | 1,083.1 | $ | (3.3 | ) |
As of December 31, 2016 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Asset-backed securities | $ | 122.2 | $ | (0.2 | ) | $ | — | $ | — | $ | 122.2 | $ | (0.2 | ) | |||||||||
Corporate debt securities | 470.8 | (1.9 | ) | 76.7 | (0.1 | ) | 547.5 | (2.0 | ) | ||||||||||||||
Foreign government debt securities | 20.3 | (0.1 | ) | — | — | 20.3 | (0.1 | ) | |||||||||||||||
U.S. government agency securities | 106.7 | (0.3 | ) | — | — | 106.7 | (0.3 | ) | |||||||||||||||
U.S. government securities | 254.1 | (0.4 | ) | — | — | 254.1 | (0.4 | ) | |||||||||||||||
Total fixed income securities | 974.1 | (2.9 | ) | 76.7 | (0.1 | ) | 1,050.8 | (3.0 | ) | ||||||||||||||
Publicly-traded equity securities | 4.6 | (0.7 | ) | — | — | 4.6 | (0.7 | ) | |||||||||||||||
Total available-for-sale securities | $ | 978.7 | $ | (3.6 | ) | $ | 76.7 | $ | (0.1 | ) | $ | 1,055.4 | $ | (3.7 | ) |
|
Fair Value Measurements at June 30, 2017 Using: | Fair Value Measurements at December 31, 2016 Using: | ||||||||||||||||||||||||||||||
Quoted Prices in Active Markets For Identical Assets (Level 1) | Significant Other Observable Remaining Inputs (Level 2) | Significant Other Unobservable Remaining Inputs (Level 3) | Total | Quoted Prices in Active Markets For Identical Assets (Level 1) | Significant Other Observable Remaining Inputs (Level 2) | Significant Other Unobservable Remaining Inputs (Level 3) | Total | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | 309.3 | $ | — | $ | 309.3 | $ | — | $ | 303.0 | $ | — | $ | 303.0 | |||||||||||||||
Certificates of deposit | — | 45.7 | — | 45.7 | — | 66.1 | — | 66.1 | |||||||||||||||||||||||
Commercial paper | — | 167.8 | — | 167.8 | — | 147.7 | — | 147.7 | |||||||||||||||||||||||
Corporate debt securities | — | 863.1 | — | 863.1 | — | 844.9 | — | 844.9 | |||||||||||||||||||||||
Foreign government debt securities | — | 43.9 | — | 43.9 | — | 33.9 | — | 33.9 | |||||||||||||||||||||||
Money market funds | 1,206.6 | — | — | 1,206.6 | 592.2 | — | — | 592.2 | |||||||||||||||||||||||
Mutual funds | 8.3 | — | — | 8.3 | 8.0 | — | — | 8.0 | |||||||||||||||||||||||
Publicly-traded equity securities | 5.3 | — | — | 5.3 | 4.6 | — | — | 4.6 | |||||||||||||||||||||||
Time deposits | — | 290.7 | — | 290.7 | — | 264.6 | — | 264.6 | |||||||||||||||||||||||
U.S. government agency securities | — | 163.0 | — | 163.0 | — | 126.7 | — | 126.7 | |||||||||||||||||||||||
U.S. government securities | 337.1 | 21.6 | — | 358.7 | 345.0 | 45.4 | — | 390.4 | |||||||||||||||||||||||
Total available-for-sale securities | 1,557.3 | 1,905.1 | — | 3,462.4 | 949.8 | 1,832.3 | — | 2,782.1 | |||||||||||||||||||||||
Trading securities in mutual funds | 23.9 | — | — | 23.9 | 21.0 | — | — | 21.0 | |||||||||||||||||||||||
Privately-held debt and redeemable preferred stock securities | — | — | 42.3 | 42.3 | — | — | 43.7 | 43.7 | |||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 5.8 | — | 5.8 | — | 0.9 | — | 0.9 | |||||||||||||||||||||||
Total assets measured at fair value | $ | 1,581.2 | $ | 1,910.9 | $ | 42.3 | $ | 3,534.4 | $ | 970.8 | $ | 1,833.2 | $ | 43.7 | $ | 2,847.7 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) | |||||||||||
Total liabilities measured at fair value | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) | |||||||||||
Total assets, reported as: | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 1,168.4 | $ | 420.8 | $ | — | $ | 1,589.2 | $ | 549.4 | $ | 357.7 | $ | — | $ | 907.1 | |||||||||||||||
Restricted investments | 75.0 | — | — | 75.0 | 71.9 | — | — | 71.9 | |||||||||||||||||||||||
Short-term investments | 194.8 | 557.9 | — | 752.7 | 178.0 | 574.3 | — | 752.3 | |||||||||||||||||||||||
Long-term investments | 143.0 | 926.4 | — | 1,069.4 | 171.5 | 900.3 | — | 1,071.8 | |||||||||||||||||||||||
Prepaid expenses and other current assets | — | 5.8 | — | 5.8 | — | 0.9 | — | 0.9 | |||||||||||||||||||||||
Other long-term assets | — | — | 42.3 | 42.3 | — | — | 43.7 | 43.7 | |||||||||||||||||||||||
Total assets measured at fair value | $ | 1,581.2 | $ | 1,910.9 | $ | 42.3 | $ | 3,534.4 | $ | 970.8 | $ | 1,833.2 | $ | 43.7 | $ | 2,847.7 | |||||||||||||||
Total liabilities, reported as: | |||||||||||||||||||||||||||||||
Other accrued liabilities | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) | |||||||||||
Total liabilities measured at fair value | $ | — | $ | (0.6 | ) | $ | — | $ | (0.6 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | (4.9 | ) |
|
As of | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Cash flow hedges | $ | 250.4 | $ | 172.0 | |||
Non-designated derivatives | 46.1 | — | |||||
Total | $ | 296.5 | $ | 172.0 |
|
Balance as of December 31, 2016 | $ | 3,081.7 | |
Other(*) | (2.3 | ) | |
Balance as of June 30, 2017 | $ | 3,079.4 |
|
As of | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Production and service materials | $ | 79.2 | $ | 75.6 | |||
Finished goods | 17.4 | 19.9 | |||||
Inventory | $ | 96.6 | $ | 95.5 | |||
Reported as: | |||||||
Prepaid expenses and other current assets | $ | 87.6 | $ | 91.4 | |||
Other long-term assets | 9.0 | 4.1 | |||||
Total | $ | 96.6 | $ | 95.5 |
Balance as of December 31, 2016 | $ | 41.3 | |
Provisions made during the period | 20.7 | ||
Actual costs incurred during the period | (27.5 | ) | |
Balance as of June 30, 2017 | $ | 34.5 |
As of | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Deferred product revenue: | |||||||
Undelivered product commitments and other product deferrals | $ | 265.5 | $ | 302.4 | |||
Distributor inventory and other sell-through items | 76.1 | 74.2 | |||||
Deferred gross product revenue | 341.6 | 376.6 | |||||
Deferred cost of product revenue | (44.3 | ) | (53.7 | ) | |||
Deferred product revenue, net | 297.3 | 322.9 | |||||
Deferred service revenue | 1,203.7 | 1,158.2 | |||||
Total | $ | 1,501.0 | $ | 1,481.1 | |||
Reported as: | |||||||
Current | $ | 998.0 | $ | 1,032.0 | |||
Long-term | 503.0 | 449.1 | |||||
Total | $ | 1,501.0 | $ | 1,481.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest income | $ | 12.0 | $ | 8.5 | $ | 22.4 | $ | 16.4 | |||||||
Interest expense | (25.0 | ) | (25.0 | ) | (50.3 | ) | (47.5 | ) | |||||||
Gain (loss) on investments, net | 0.8 | 3.6 | 2.0 | (1.8 | ) | ||||||||||
Other | (0.8 | ) | 1.3 | (2.8 | ) | (0.9 | ) | ||||||||
Other expense, net | $ | (13.0 | ) | $ | (11.6 | ) | $ | (28.7 | ) | $ | (33.8 | ) |
|
December 31, 2016(*) | Charges | Cash Payments | Other | June 30, 2017 | |||||||||||||||
Severance | $ | 0.7 | $ | 25.4 | $ | (18.3 | ) | $ | (0.5 | ) | $ | 7.3 | |||||||
Contract terminations and other | 0.5 | 2.0 | (0.2 | ) | 0.1 | 2.4 | |||||||||||||
Total | $ | 1.2 | $ | 27.4 | $ | (18.5 | ) | $ | (0.4 | ) | $ | 9.7 |
|
As of June 30, 2017 | ||||||
Amount | Effective Interest Rates | |||||
Senior Notes ("Notes"): | ||||||
3.125% fixed-rate notes, due February 2019 | $ | 350.0 | 3.36 | % | ||
3.300% fixed-rate notes, due June 2020 | 300.0 | 3.47 | % | |||
4.600% fixed-rate notes, due March 2021 | 300.0 | 4.69 | % | |||
4.500% fixed-rate notes, due March 2024, issued March 2014 | 350.0 | 4.63 | % | |||
4.500% fixed-rate notes, due March 2024, issued February 2016 | 150.0 | 4.87 | % | |||
4.350% fixed-rate notes, due June 2025 | 300.0 | 4.47 | % | |||
5.950% fixed-rate notes, due March 2041 | 400.0 | 6.03 | % | |||
Total senior notes | 2,150.0 | |||||
Unaccreted discount and debt issuance costs | (15.0 | ) | ||||
Total | $ | 2,135.0 | ||||
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Shares repurchased | 4.0 | 5.5 | 8.5 | 8.6 | |||||||||||
Average price per share | $ | 30.59 | $ | 23.08 | $ | 29.25 | $ | 23.37 | |||||||
Amount repurchased | $ | 125.0 | $ | 125.5 | $ | 250.0 | $ | 200.5 |
Unrealized Gains on Available-for- Sale Securities(1) | Unrealized (Losses) Gains on Cash Flow Hedges(2) | Foreign Currency Translation Adjustments | Total | ||||||||||||
Balance as of December 31, 2016 | $ | 16.6 | $ | (4.5 | ) | $ | (49.4 | ) | $ | (37.3 | ) | ||||
Other comprehensive gains before reclassifications | 1.6 | 8.3 | 10.9 | 20.8 | |||||||||||
Amount reclassified from accumulated other comprehensive loss | (0.1 | ) | 0.1 | — | — | ||||||||||
Other comprehensive gains, net | 1.5 | 8.4 | 10.9 | 20.8 | |||||||||||
Balance as of June 30, 2017 | $ | 18.1 | $ | 3.9 | $ | (38.5 | ) | $ | (16.5 | ) |
(1) | The reclassifications out of accumulated other comprehensive loss during the six months ended June 30, 2017 for realized gains on available-for-sale securities were not material, and were included in other expense, net, in the Condensed Consolidated Statements of Operations. |
(2) | The reclassifications out of accumulated other comprehensive loss during the six months ended June 30, 2017 for realized gains on cash flow hedges were not material, and were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations. |
|
Outstanding Options | ||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2016 | 2.4 | $ | 29.20 | |||||||||
Exercised | (0.4 | ) | 16.63 | |||||||||
Expired/canceled | (0.7 | ) | 30.83 | |||||||||
Balance as of June 30, 2017 | 1.3 | $ | 32.46 | 1.2 | $ | 4.8 | ||||||
As of June 30, 2017: | ||||||||||||
Vested and expected-to-vest options | 1.3 | $ | 32.46 | 1.2 | $ | 4.8 | ||||||
Exercisable options | 1.2 | $ | 33.63 | 0.9 | $ | 3.6 |
Outstanding RSUs, RSAs, and PSAs | ||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||
Balance as of December 31, 2016 | 20.9 | $ | 24.05 | |||||||||
RSUs granted (1)(3) | 5.8 | 27.55 | ||||||||||
PSAs granted (2)(3) | 0.6 | 27.37 | ||||||||||
RSUs vested | (5.6 | ) | 23.87 | |||||||||
RSAs vested | (0.3 | ) | 22.70 | |||||||||
PSAs vested | (0.6 | ) | 24.41 | |||||||||
RSUs canceled | (1.0 | ) | 24.08 | |||||||||
PSAs canceled | (0.3 | ) | 24.77 | |||||||||
Balance as of June 30, 2017 | 19.5 | $ | 25.08 | 1.3 | $ | 542.8 |
(1) | Includes service-based and market-based RSUs. |
(2) | The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.6 million shares. |
(3) | The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. During the six months ended June 30, 2017, the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017 and April 25, 2017. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenues - Product | $ | 1.4 | $ | 1.5 | $ | 2.3 | $ | 3.4 | |||||||
Cost of revenues - Service | 5.3 | 4.3 | 9.6 | 7.8 | |||||||||||
Research and development | 14.1 | 29.5 | 48.9 | 61.8 | |||||||||||
Sales and marketing | 16.3 | 13.8 | 31.6 | 23.2 | |||||||||||
General and administrative | 7.0 | 6.5 | 13.7 | 11.2 | |||||||||||
Total | $ | 44.1 | $ | 55.6 | $ | 106.1 | $ | 107.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Stock options | $ | 0.2 | $ | 1.1 | $ | 0.3 | $ | 2.3 | |||||||
RSUs, RSAs, and PSAs | 40.1 | 50.4 | 97.9 | 97.2 | |||||||||||
ESPP | 3.8 | 4.1 | 7.9 | 7.9 | |||||||||||
Total | $ | 44.1 | $ | 55.6 | $ | 106.1 | $ | 107.4 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cloud | $ | 379.6 | $ | 287.3 | $ | 711.2 | $ | 552.1 | |||||||
Telecom/Cable | 562.4 | 571.0 | 1,130.9 | 1,089.1 | |||||||||||
Strategic Enterprise | 366.9 | 363.0 | 687.8 | 678.0 | |||||||||||
Total | $ | 1,308.9 | $ | 1,221.3 | $ | 2,529.9 | $ | 2,319.2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Routing | $ | 572.5 | $ | 574.7 | $ | 1,094.1 | $ | 1,078.8 | |||||||
Switching | 276.0 | 209.2 | 517.6 | 384.7 | |||||||||||
Security | 68.7 | 78.2 | 134.4 | 151.6 | |||||||||||
Total product | 917.2 | 862.1 | 1,746.1 | 1,615.1 | |||||||||||
Total service | 391.7 | 359.2 | 783.8 | 704.1 | |||||||||||
Total | $ | 1,308.9 | $ | 1,221.3 | $ | 2,529.9 | $ | 2,319.2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Americas: | |||||||||||||||
United States | $ | 749.1 | $ | 661.3 | $ | 1,407.2 | $ | 1,240.3 | |||||||
Other | 51.7 | 58.7 | 105.2 | 107.9 | |||||||||||
Total Americas | 800.8 | 720.0 | 1,512.4 | 1,348.2 | |||||||||||
Europe, Middle East, and Africa | 288.2 | 300.1 | 572.7 | 585.5 | |||||||||||
Asia Pacific | 219.9 | 201.2 | 444.8 | 385.5 | |||||||||||
Total | $ | 1,308.9 | $ | 1,221.3 | $ | 2,529.9 | $ | 2,319.2 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Income before income taxes | $ | 245.2 | $ | 192.2 | $ | 385.8 | $ | 318.7 | |||||||
Income tax provision | $ | 65.4 | $ | 52.2 | $ | 97.2 | $ | 87.3 | |||||||
Effective tax rate | 26.7 | % | 27.2 | % | 25.2 | % | 27.4 | % |
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