JUNIPER NETWORKS INC, 10-Q filed on 11/8/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2016
Nov. 4, 2016
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
JUNIPER NETWORKS INC 
 
Entity Central Index Key
0001043604 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2016 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q3 
 
Current Fiscal Year End Date
--12-31 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
380,323,150 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Net revenues:
 
 
 
 
Product
$ 928.2 
$ 925.4 
$ 2,543.3 
$ 2,589.2 
Service
357.1 
323.2 
1,061.2 
949.0 
Total net revenues
1,285.3 
1,248.6 
3,604.5 
3,538.2 
Cost of revenues:
 
 
 
 
Product
349.6 
322.6 
955.8 
923.1 
Service
136.2 
128.6 
401.9 
378.9 
Total cost of revenues
485.8 
451.2 
1,357.7 
1,302.0 
Gross margin
799.5 
797.4 
2,246.8 
2,236.2 
Operating expenses:
 
 
 
 
Research and development
251.8 
247.0 
750.7 
747.3 
Sales and marketing
242.9 
235.3 
718.4 
687.9 
General and administrative
54.0 
57.1 
172.0 
168.6 
Restructuring charges (benefits)
0.8 
0 
3.2 
(0.5)
Total operating expenses
549.5 
539.4 
1,644.3 
1,603.3 
Operating income
250.0 
258.0 
602.5 
632.9 
Other expense, net
(13.4)
(8.4)
(47.2)
(41.3)
Income before income taxes
236.6 
249.6 
555.3 
591.6 
Income tax provision
64.2 
51.9 
151.5 
155.7 
Net income
$ 172.4 
$ 197.7 
$ 403.8 
$ 435.9 
Net income per share:
 
 
 
 
Basic, in dollars per share
$ 0.45 
$ 0.52 
$ 1.06 
$ 1.11 
Diluted, in dollars per share
$ 0.45 
$ 0.51 
$ 1.04 
$ 1.09 
Shares used in computing net income per share:
 
 
 
 
Basic (in shares)
381.0 
382.8 
382.3 
393.2 
Diluted (in shares)
384.5 
389.2 
387.9 
401.2 
Cash dividends declared per common stock (in dollars per share)
$ 0.1 
$ 0.10 
$ 0.3 
$ 0.3 
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 172.4 
$ 197.7 
$ 403.8 
$ 435.9 
Available-for-sale securities:
 
 
 
 
Unrealized (losses) gains on available-for-sale securities, net of tax (provisions) benefit of ($0.3) and $0.4 during the three and nine months ended September 30, 2016, respectively, and ($3.7) and ($2.1) for the corresponding periods of the fiscal year ended December 31, 2015 (fiscal 2015), respectively
(0.6)
(3.6)
5.4 
4.6 
Reclassification adjustment for realized net gains on available-for-sale securities included in net income, net of tax provisions of zero and $0.5 during the three and nine months ended September 30, 2016, respectively, and zero for the corresponding periods of fiscal 2015
(0.3)
(0.1)
(1.1)
(0.6)
Net change on available-for-sale securities, net of taxes
(0.9)
(3.7)
4.3 
4.0 
Cash flow hedges:
 
 
 
 
Unrealized (losses) gains on cash flow hedges, net of tax (provisions) benefit of ($0.6) and ($1.2) during the three and nine months ended September 30, 2016, respectively, and $0.5 and ($0.2) for the corresponding periods of fiscal 2015, respectively
(0.3)
(1.4)
3.6 
(5.4)
Reclassification adjustment for realized net (gains) losses on cash flow hedges included in net income, net of tax provisions (benefit) of $0.3 and $0.4 during the three and nine months ended September 30, 2016, respectively, and ($0.1) and zero for the corresponding periods of fiscal 2015, respectively
(0.9)
1.8 
(1.0)
8.7 
Net change on cash flow hedges, net of taxes
(1.2)
0.4 
2.6 
3.3 
Change in foreign currency translation adjustments
(6.9)
(8.8)
(1.1)
(12.9)
Other comprehensive (loss) income, net of tax
(9.0)
(12.1)
5.8 
(5.6)
Comprehensive income
$ 163.4 
$ 185.6 
$ 409.6 
$ 430.3 
Condensed Consolidated Statements of Comprehensive Income Parentheticals (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Tax (provisions) benefit on change in unrealized gains on available-for-sale securities
$ (0.3)
$ (3.7)
$ 0.4 
$ (2.1)
Tax provision on reclassification adjustment for realized net gains on available-for-sale securities included in net income
0 
0 
0.5 
0 
Tax benefit (provisions) on change in unrealized gains (loss) on cash flow hedges
(0.6)
0.5 
(1.2)
(0.2)
Tax provisions (benefit) on reclassification adjustment for realized net (gains) losses included in net income
$ 0.3 
$ (0.1)
$ 0.4 
$ 0 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 1,689.0 
$ 1,420.9 
Short-term investments
632.7 
527.1 
Accounts receivable, net of allowances
753.6 
780.7 
Prepaid expenses and other current assets
354.1 
183.7 
Total current assets
3,429.4 
2,912.4 
Property and equipment, net
1,067.0 
1,021.0 
Long-term investments
1,158.4 
1,244.2 
Restricted cash and investments
89.8 
36.2 
Purchased intangible assets, net
113.2 
33.9 
Goodwill
3,048.4 
2,981.3 
Other long-term assets
239.0 
378.9 
Total assets
9,145.2 
8,607.9 
Current liabilities:
 
 
Short-term debt
0 
299.9 
Accounts payable
208.4 
159.3 
Accrued compensation
174.3 
269.5 
Deferred revenue
918.5 
822.9 
Other accrued liabilities
207.2 
250.3 
Total current liabilities
1,508.4 
1,801.9 
Long-term debt
2,133.1 
1,637.5 
Long-term deferred revenue
385.6 
345.2 
Long-term income taxes payable
205.1 
187.3 
Other long-term liabilities
140.5 
61.6 
Total liabilities
4,372.7 
4,033.5 
Commitments and contingencies (Note 15)
   
   
Stockholders' equity:
 
 
Convertible preferred stock, $0.00001 par value; 10.0 shares authorized; none issued and outstanding
0 
0 
Common stock, $0.00001 par value; 1,000.0 shares authorized; 380.1 shares and 384.0 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
0 
0 
Additional paid-in capital
8,256.3 
8,334.8 
Accumulated other comprehensive loss
(13.4)
(19.2)
Accumulated deficit
(3,470.4)
(3,741.2)
Total stockholders' equity
4,772.5 
4,574.4 
Total liabilities and stockholders' equity
$ 9,145.2 
$ 8,607.9 
Condensed Consolidated Balance Sheets Parentheticals (Unaudited) (USD $)
Sep. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Convertible preferred stock - par value (in dollars per share)
$ 0.00001 
$ 0.00001 
Convertible preferred stock - shares authorized
10,000,000 
10,000,000 
Convertible preferred stock - issued
0 
0 
Convertible preferred stock - outstanding
0 
0 
Common stock - par value (in dollars per share)
$ 0.00001 
$ 0.00001 
Common stock - shares authorized
1,000,000,000 
1,000,000,000 
Common stock - issued
380,100,000 
384,000,000 
Common stock - outstanding
380,100,000 
384,000,000 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:
 
 
Net income
$ 403.8 
$ 435.9 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Share-based compensation expense
162.1 
161.3 
Depreciation, amortization, and accretion
151.9 
131.5 
Restructuring and non-cash acquisition charges (benefits)
6.0 
(4.0)
Deferred income taxes
41.5 
10.0 
Loss (gain) on investments and fixed assets, net
1.6 
(6.4)
Excess tax benefits from share-based compensation
(5.8)
(7.4)
Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
Accounts receivable, net
36.6 
(15.7)
Prepaid expenses and other assets
(66.5)
8.8 
Accounts payable
52.1 
(21.8)
Accrued compensation
(77.0)
(29.0)
Income taxes payable
(7.5)
108.2 
Other accrued liabilities
(51.3)
(45.0)
Deferred revenue
124.7 
49.1 
Net cash provided by operating activities
772.2 
775.5 
Cash flows from investing activities:
 
 
Purchases of property and equipment
(162.9)
(154.9)
Purchases of available-for-sale investments
(1,251.9)
(1,147.6)
Proceeds from sales of available-for-sale investments
985.1 
625.9 
Proceeds from maturities of available-for-sale investments
232.4 
197.4 
Purchases of trading investments
(4.3)
(3.8)
Proceeds from sales of privately-held investments
9.5 
10.3 
Purchases of investments in privately-held companies
(17.1)
(5.4)
Payments for business acquisitions, net of cash and cash equivalents acquired
(96.7)
(3.5)
Changes in restricted cash
(2.4)
11.6 
Net cash used in investing activities
(308.3)
(470.0)
Cash flows from financing activities:
 
 
Proceeds from issuance of common stock
59.7 
97.0 
Purchases and retirement of common stock
(323.9)
(1,056.8)
Issuance of long-term debt, net
494.0 
594.6 
Payment of long-term debt
(300.0)
0 
Payment under lease obligations
(1.7)
(0.4)
Payment of acquired debt
(15.5)
0 
Excess tax benefits from share-based compensation
5.8 
7.4 
Payment of cash dividends
(114.4)
(118.0)
Net cash used in financing activities
(196.0)
(476.2)
Effect of foreign currency exchange rates on cash and cash equivalents
0.2 
(15.4)
Net increase (decrease) in cash and cash equivalents
268.1 
(186.1)
Cash and cash equivalents at beginning of period
1,420.9 
1,639.6 
Cash and cash equivalents at end of period
$ 1,689.0 
$ 1,453.5 
Basis of Presentation
Basis of Presentation
Basis of Presentation

Basis of Presentation

The unaudited Condensed Consolidated Financial Statements of Juniper Networks, Inc. (the “Company” or “Juniper”) have been prepared in accordance with United States of America (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. 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, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or any future period. The Condensed Consolidated Balance Sheet as of December 31, 2015, has been derived from the audited Consolidated Financial Statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.

The information included in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

As a result of the adoption of Accounting Standards Update ("ASU") No. 2015-03 (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, the Company decreased both other long-term assets and long-term debt as of December 31, 2015 on the Condensed Consolidated Balance Sheets by $11.3 million.

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

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

Recent Accounting Pronouncements

In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-15 (Topic 230) Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments. The pronouncement provides clarification guidance on certain cash flow presentation issues such as debt prepayment or debt extinguishment costs and contingent consideration payments made after a business combination and should be applied using a retrospective transition method for each period presented. For the provisions that are impracticable to apply retrospectively, those provisions may be applied prospectively as of the earliest date practicable. This pronouncement is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Statements of Cash Flows.

In June 2016, the FASB issued ASU No. 2016-13 (Topic 326) Financial Instruments - Credit Losses. The pronouncement was issued to provide more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. This pronouncement is effective for reporting periods beginning after December 15, 2019, and interim periods within those fiscal years, using a modified retrospective adoption method. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.
In March 2016, the FASB issued ASU No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. ASU-2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

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

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

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

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

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

In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers (“ASU 2014-09”) which provides guidance for revenue recognition. This ASU affects all contracts that the Company enters into with customers to transfer goods and services or for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard's core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so, the Company will need to use additional judgment and estimates than under the existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of the new revenue standard from December 15, 2016 to December 15, 2017, with early adoption permitted as of annual reporting periods beginning after December 15, 2016. Accordingly, the ASU will be effective for the Company beginning fiscal year 2018. In addition, in March 2016, the FASB issued ASU No. 2016-08 (Topic 606) Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”), which clarifies the principal-versus-agent guidance in Topic 606 and requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, the FASB also issued ASU No. 2016-10 (Topic 606) Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”), which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB also issued ASU No. 2016-12 (Topic 606) Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which amends the revenue guidance to clarify measurement and presentation as well as to include some practical expedients and policy elections. There are two transition methods available under the new standard, either cumulative effect or retrospective. ASU 2016-08, ASU 2016-10, and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements and disclosures.
Business Combinations
Business Combinations
Business Combinations

During the nine months ended September 30, 2016, the Company completed two business combinations. The Company's Condensed Consolidated Financial Statements include the operating results of these business combinations from the date of each acquisition. Pro forma results of operations for these acquisitions have not been presented as the financial impact to the Company's consolidated results of operations are not material.

Additional information, such as income tax and other contingencies, existing as of the acquisition dates but unknown to the Company may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded.

Aurrion, Inc.

On August 9, 2016, the Company acquired the remaining ownership interest in Aurrion, Inc. ("Aurrion"), increasing its ownership from 18% to 100%, for $74.3 million of cash. The acquisition of Aurrion, a privately-held provider of fabless silicon photonic technology, is expected to strengthen the Company's long-term competitive advantage in cost-effective, high-density, high-speed networks.

Prior to the acquisition, the Company had a pre-existing investment in Aurrion's equity and also held convertible debt that were remeasured to fair value of $17.2 million and $10.4 million, respectively, based upon the perspective of a market participant when estimating the fair value.
Additionally, under the terms of the acquisition agreement, the Company assumed share-based awards for continuing employees from the acquisition of Aurrion, which were granted in contemplation of future services. The fair value of these share-based awards was $55.0 million, which will be expensed as share-based compensation over the remaining service period.

BTI Systems Inc.

On April 1, 2016, the Company acquired the remaining ownership interest in BTI Systems Inc. (“BTI”), increasing its ownership from 12% to 100%, for $25.8 million of cash. BTI is a privately-held provider of cloud and metro networking systems and software to content, cloud, and service providers. The Company acquired BTI on the expectation that this would help to accelerate the Company's ability to deliver open and automated packet optical transport solutions.

Prior to the acquisition, the Company had a pre-existing investment in BTI's equity and remeasured the investment to its fair value of $17.1 million, which was based upon the perspective of a market participant when estimating the fair value. The Company also held $0.9 million of convertible debt measured at fair value and settled upon acquisition. The Company also repaid upon acquisition $18.6 million of certain outstanding BTI liabilities assumed.

Additionally, under the terms of the acquisition agreement, the Company assumed share-based awards for continuing employees from the acquisition of BTI, which were granted in contemplation of future services. The fair value of these share-based awards was $8.6 million, which will be expensed as share-based compensation over the remaining service period.

The total purchase consideration, consisting of cash consideration paid and the fair value of previous investments, of $101.9 million and $43.8 million for Aurrion and BTI, respectively, were allocated as follows (in millions):
 
Aurrion
 
BTI
 
Total
Net tangible assets acquired/(liabilities) assumed (1)
$
6.0

 
$
(19.7
)
 
$
(13.7
)
Intangible assets acquired
49.0

 
43.3

 
92.3

Goodwill (1)
46.9

 
20.2

 
67.1

    Total
$
101.9

 
$
43.8

 
$
145.7

________________________________
(1) During the three months ended September 30, 2016, the Company recorded insignificant adjustments to the preliminary fair value of certain assets acquired and liabilities assumed in the BTI acquisition. These adjustments were based on information obtained in the current period about facts and circumstances that existed at the acquisition date.

The goodwill recognized for these acquisitions was primarily attributable to expected synergies and is not deductible for U.S. federal income tax purposes.

The Company recognized $2.8 million and $10.7 million of acquisition-related costs during the three and nine months ended September 30, 2016, respectively. These acquisition-related costs were expensed in the period incurred within general and administrative expense in the Company's Condensed Consolidated Statements of Operations. There were no such charges during the three and nine months ended September 30, 2015.

The Company also recorded $0.5 million and $2.9 million of restructuring charges during the three and nine months ended September 30, 2016, related to severance costs for certain former BTI employees which were recorded in restructuring charges (benefits) in the Condensed Consolidated Statements of Operations.

Intangible Assets Acquired

A summary of the Company's intangible assets acquired through the business combinations completed during the nine months ended September 30, 2016 was as follows (in millions, except years):
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
Finite-lived intangible assets:
 
 
 
Existing technology
8
 
$
37.1

Customer relationships
8
 
5.3

Trade name
1
 
0.6

Backlog
1
 
0.3

Total intangible assets with finite lives
 
 
43.3

Indefinite-lived intangible assets:
 
 
 
In-process research and development ("IPR&D")
 
 
49.0

Total intangible assets acquired
 
 
$
92.3



As a result of the Aurrion acquisition, the Company acquired IPR&D consisting of existing research and development projects that have not yet reached technological feasibility at the time of the acquisition. The acquired IPR&D involves technology for cost-effective, high-speed networks. The IPR&D was valued using the multi-period excess earnings method under the income approach by discounting forecasted cash flows directly related to the products expected to result from the associated project.

Intangible assets related to IPR&D projects are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. Indefinite-lived intangibles are not amortized into results of operations but instead are evaluated for impairment. If and when development is complete, the associated assets would be deemed finite-lived and would then be amortized as cost of revenues over their respective estimated useful lives at that point in time. If the research and development project is abandoned, the acquired IPR&D assets are written off and charged to expense in the period of abandonment.
Cash Equivalents and Investments
Cash Equivalents and Investments
Cash Equivalents and Investments

Investments in Available-for-Sale and Trading Securities

The Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of September 30, 2016 and December 31, 2015 were as follows (in millions):
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
As of September 30, 2016
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
Asset-backed securities
$
326.8

 
$
0.6

 
$
—

 
$
327.4

Certificates of deposit
49.9

 
—

 
—

 
49.9

Commercial paper
52.4

 
—

 
—

 
52.4

Corporate debt securities
866.1

 
1.7

 
(0.5
)
 
867.3

Foreign government debt securities
38.5

 
—

 
—

 
38.5

Government-sponsored enterprise obligations
127.3

 
0.1

 
—

 
127.4

U.S. government securities
331.8

 
0.2

 
(0.1
)
 
331.9

Total fixed income securities
1,792.8

 
2.6

 
(0.6
)
 
1,794.8

Money market funds
413.0

 
—

 
—

 
413.0

Mutual funds
8.1

 
—

 
—

 
8.1

Publicly-traded equity securities
4.5

 
0.8

 
—

 
5.3

Total available-for-sale securities
2,218.4

 
3.4

 
(0.6
)
 
2,221.2

Trading securities in mutual funds(1)
20.5

 
—

 
—

 
20.5

Total
$
2,238.9

 
$
3.4

 
$
(0.6
)
 
$
2,241.7

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
379.0

 
$
—

 
$
—

 
$
379.0

Restricted Investments(2)
71.6

 
—

 
—

 
71.6

Short-term investments
631.8

 
1.0

 
(0.1
)
 
632.7

Long-term investments
1,156.5

 
2.4

 
(0.5
)
 
1,158.4

Total
$
2,238.9

 
$
3.4

 
$
(0.6
)
 
$
2,241.7


________________________________
(1) 
Balance consists of the Company's non-qualified deferred compensation plan assets.
(2) 
Includes $4.0 million of short-term restricted investments classified as prepaid expenses and other on the Condensed Consolidated Balance Sheets.

 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
As of December 31, 2015
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
Asset-backed securities
$
312.2

 
$
—

 
$
(0.5
)
 
$
311.7

Certificates of deposit
9.6

 
—

 
—

 
9.6

Commercial paper
17.7

 
—

 
—

 
17.7

Corporate debt securities
913.8

 
0.2

 
(2.6
)
 
911.4

Foreign government debt securities
16.5

 
—

 
—

 
16.5

Government-sponsored enterprise obligations
204.1

 
—

 
(0.4
)
 
203.7

U.S. government securities
278.0

 
—

 
(0.4
)
 
277.6

Total fixed income securities
1,751.9

 
0.2

 
(3.9
)
 
1,748.2

Money market funds
29.7

 
—

 
—

 
29.7

Mutual funds
6.1

 
0.1

 
—

 
6.2

Publicly-traded equity securities
8.7

 
0.8

 
(0.7
)
 
8.8

Total available-for-sale securities
1,796.4

 
1.1

 
(4.6
)
 
1,792.9

Trading securities in mutual funds(1)
17.7

 
—

 
—

 
17.7

Total
$
1,814.1

 
$
1.1

 
$
(4.6
)
 
$
1,810.6

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
3.4

 
$
—

 
$
—

 
$
3.4

Restricted Investments
35.8

 
0.1

 
—

 
35.9

Short-term investments
527.2

 
0.9

 
(1.0
)
 
527.1

Long-term investments
1,247.7

 
0.1

 
(3.6
)
 
1,244.2

Total
$
1,814.1

 
$
1.1

 
$
(4.6
)
 
$
1,810.6


________________________________
(1) 
Balance consists of the Company's non-qualified deferred compensation plan assets.


The contractual maturities of the Company's total fixed income securities as of September 30, 2016 were as follows (in millions):
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
Due in less than one year
$
636.3

 
$
0.2

 
$
(0.1
)
 
$
636.4

Due between one and five years
1,156.5

 
2.4

 
(0.5
)
 
1,158.4

Total
$
1,792.8

 
$
2.6

 
$
(0.6
)
 
$
1,794.8




The Company's available-for-sale securities that were in an unrealized loss position as of September 30, 2016 and December 31, 2015 were as follows (in millions):
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
As of September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities
$
195.5

 
$
(0.3
)
 
$
102.5

 
$
(0.2
)
 
$
298.0

 
$
(0.5
)
U.S. government securities
102.2

 
(0.1
)
 
—

 
—

 
102.2

 
(0.1
)
Total available-for-sale securities
$
297.7

 
$
(0.4
)
 
$
102.5

 
$
(0.2
)
 
$
400.2

 
$
(0.6
)


 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
274.2

 
$
(0.4
)
 
$
30.8

 
$
(0.1
)
 
$
305.0

 
$
(0.5
)
Certificates of deposit(*)
3.3

 
—

 
—

 
—

 
3.3

 
—

Corporate debt securities
687.9

 
(2.3
)
 
58.9

 
(0.3
)
 
746.8

 
(2.6
)
Foreign government debt securities(*)
9.5

 
—

 
—

 
—

 
9.5

 
—

Government-sponsored enterprise obligations
185.3

 
(0.4
)
 
—

 
—

 
185.3

 
(0.4
)
U.S. government securities
259.3

 
(0.4
)
 
—

 
—

 
259.3

 
(0.4
)
Total fixed income securities
1,419.5

 
(3.5
)
 
89.7

 
(0.4
)
 
1,509.2

 
(3.9
)
Publicly-traded equity securities
2.1

 
(0.7
)
 
—

 
—

 
2.1

 
(0.7
)
Total available-for-sale securities
$
1,421.6

 
$
(4.2
)
 
$
89.7

 
$
(0.4
)
 
$
1,511.3

 
$
(4.6
)
 ________________________________
(*) 
Balances less than 12 months include investments that were in an insignificant unrealized loss position as of December 31, 2015.

The Company had 221 and 682 investments in unrealized loss positions as of September 30, 2016 and December 31, 2015, respectively. The gross unrealized losses related to these investments were primarily due to changes in market interest rates and stock prices. The Company periodically reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company aggregates its investments by category and length of time the securities have been in a continuous unrealized loss position to facilitate its evaluation.

For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) it has the intention to sell any of these investments and (ii) whether it is more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. As of September 30, 2016, the Company anticipates that it will recover the entire amortized cost basis of such available-for-sale debt securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three and nine months ended September 30, 2016 and September 30, 2015.

For available-for-sale equity securities that have unrealized losses, the Company evaluates whether there is an indication of other-than-temporary impairments. This determination is based on several factors, including the financial condition and near-term prospects of the issuer and the Company's intent and ability to hold the publicly-traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value. During the three and nine months ended September 30, 2016 and September 30, 2015, there were no other-than-temporary impairments associated with these investments.

During the three and nine months ended September 30, 2016 and September 30, 2015, there were no material gross realized gains or losses from either available-for-sale securities or from trading securities.
Restricted Cash and Investments

The Company has restricted cash and investments for: (i) amounts held in escrow accounts, as required in connection with certain acquisitions completed primarily between 2014 and 2016; (ii) the India Gratuity Trust and Israel Retirement Trust, which cover statutory severance obligations in the event of termination of any of the Company's India and Israel employees, respectively; (iii) the Directors and Officers indemnification trust (“D&O Trust”); (iv) amounts held under the Company's short-term disability plan in California; and (v) amounts under the non-qualified deferred compensation ("NQDC") plan for officers and other senior-level employees. The restricted investments are designated as available-for-sale securities except relating to the NQDC plan which are designated as trading securities. As of September 30, 2016, restricted cash and investments of $20.9 million and $89.8 million were included in prepaid expenses and other current assets and restricted cash and investments, respectively, on the Condensed Consolidated Balance Sheets.

Investments in Privately-Held Companies

The Company has investments in privately-held companies, which include debt and redeemable preferred stock securities that are carried at fair value, and non-redeemable preferred stock securities and common stock that are carried at cost. The Company reviews these investments to identify and evaluate investments that have an indication of possible impairment.

As of September 30, 2016 and December 31, 2015, the carrying values of the Company's investments in privately-held companies of $61.1 million and $102.4 million, respectively, were included in other long-term assets in the Condensed Consolidated Balance Sheets. As of September 30, 2016 and December 31, 2015, the carrying value of the investments in privately-held companies includes debt and redeemable preferred stock securities of $43.7 million and $60.2 million, respectively. For the three and nine months ended September 30, 2016 and September 30, 2015, there were no unrealized gains or losses associated with the privately-held debt and redeemable preferred stock securities.

The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. During the three and nine months ended September 30, 2016, the Company determined that certain privately-held investments were other than-temporarily impaired, resulting in impairment charges of $4.5 million and $9.6 million, respectively, that were recorded within other expense, net in the Condensed Consolidated Statement of Operations. No such charges were recorded during the three and nine months ended September 30, 2015.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
A summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets were as follows (in millions):
 
Fair Value Measurements at September 30, 2016 Using:
 
 
 
Quoted Prices in
Active Markets For
Identical Assets
 
Significant Other
Observable
Remaining Inputs
 
Significant Other
Unobservable
Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Assets measured at fair value:
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Asset-backed securities
$
—

 
$
327.4

 
$
—

 
$
327.4

Certificates of deposit
—

 
49.9

 
—

 
49.9

Commercial paper
—

 
52.4

 
—

 
52.4

Corporate debt securities
—

 
867.3

 
—

 
867.3

Foreign government debt securities
—

 
38.5

 
—

 
38.5

Government-sponsored enterprise obligations
—

 
127.4

 
—

 
127.4

Money market funds(1)
413.0

 
—

 
—

 
413.0

Mutual funds(2)
8.1

 
—

 
—

 
8.1

Publicly-traded equity securities
5.3

 
—

 
—

 
5.3

U.S. government securities
320.9

 
11.0

 
—

 
331.9

Total available-for-sale securities
747.3

 
1,473.9

 
—

 
2,221.2

Trading securities in mutual funds(3)
20.5

 
—

 
—

 
20.5

Privately-held debt and redeemable preferred stock
  securities


 


 
43.7

 
43.7

Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—

 
2.7

 
—

 
2.7

Total assets measured at fair value
$
767.8

 
$
1,476.6

 
$
43.7

 
$
2,288.1

Liabilities measured at fair value:
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
(0.9
)
 
$
—

 
$
(0.9
)
Total liabilities measured at fair value
$
—

 
$
(0.9
)
 
$
—

 
$
(0.9
)
 
 
 
 
 
 
 
 
Total assets measured at fair value, reported as:
 
 
 
 
 
 
 
Cash equivalents
$
370.0

 
$
9.0

 
$
—

 
$
379.0

Restricted investments
71.6

 
—

 
—

 
71.6

Short-term investments
173.1

 
459.6

 
—

 
632.7

Long-term investments
153.1

 
1,005.3

 
—

 
1,158.4

Prepaid expenses and other current assets
—

 
2.7

 
—

 
2.7

Other long-term assets
—

 
—

 
43.7

 
43.7

Total assets measured at fair value
$
767.8

 
$
1,476.6

 
$
43.7

 
$
2,288.1

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

 
$
(0.9
)
 
$
—

 
$
(0.9
)
Total liabilities measured at fair value
$
—

 
$
(0.9
)
 
$
—

 
$
(0.9
)
________________________________
(1) 
Balance includes $43.0 million of restricted investments measured at fair value related to the Company's D&O Trust and acquisition-related escrows.
(2) 
Balance relates to restricted investments measured at fair value related to the Company's India Gratuity Trust.
(3) 
Balance relates to restricted investments measured at fair value related to the Company's NQDC plan assets.

 
Fair Value Measurements at December 31, 2015 Using:
 
 
 
Quoted Prices in
Active Markets For
Identical Assets
 
Significant Other
Observable
Remaining Inputs
 
Significant Other
Unobservable
Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Assets measured at fair value:
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Asset-backed securities
$
—

 
$
311.7

 
$
—

 
$
311.7

Certificates of deposit
—

 
9.6

 
—

 
9.6

Commercial paper
—

 
17.7

 
—

 
17.7

Corporate debt securities
—

 
911.4

 
—

 
911.4

Foreign government debt securities
—

 
16.5

 
—

 
16.5

Government-sponsored enterprise obligations
—

 
203.7

 
—

 
203.7

Money market funds(1)
29.7

 
—

 
—

 
29.7

Mutual funds(2)
6.2

 
—

 
—

 
6.2

Publicly-traded equity securities
8.8

 
—

 
—

 
8.8

U.S. government securities
247.3

 
30.3

 
—

 
277.6

Total available-for-sale securities
292.0

 
1,500.9

 
—

 
1,792.9

Trading securities in mutual funds(3)
17.7

 
—

 
—

 
17.7

Privately-held debt and redeemable preferred stock
  securities
—

 
—

 
60.2

 
60.2

Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—

 
0.4

 
—

 
0.4

Total assets measured at fair value
$
309.7

 
$
1,501.3

 
$
60.2

 
$
1,871.2

Liabilities measured at fair value:
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
(1.3
)
 
$
—

 
$
(1.3
)
Total liabilities measured at fair value
$
—

 
$
(1.3
)
 
$
—

 
$
(1.3
)
 
 
 
 
 
 
 
 
Total assets measured at fair value, reported as:
 
 
 
 
 
 
 
Cash equivalents
$
—

 
$
3.4

 
$
—

 
$
3.4

Restricted investments
35.9

 
—

 
—

 
35.9

Short-term investments
108.2

 
418.9

 
—

 
527.1

Long-term investments
165.6

 
1,078.6

 
—

 
1,244.2

Prepaid expenses and other current assets
—

 
0.4

 
—

 
0.4

Other long-term assets
—

 
—

 
60.2

 
60.2

Total assets measured at fair value
$
309.7

 
$
1,501.3

 
$
60.2

 
$
1,871.2

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

 
$
(1.3
)
 
$
—

 
$
(1.3
)
Total liabilities measured at fair value
$
—

 
$
(1.3
)
 
$
—

 
$
(1.3
)

________________________________
(1) 
Balance includes $29.7 million of restricted investments measured at fair value related to the Company's D&O Trust and acquisition-related escrows.
(2) 
Balance relates to restricted investments measured at fair value related to the Company's India Gratuity Trust.
(3) 
Balance relates to investments measured at fair value related to the Company's NQDC plan assets.

The Company's Level 2 available-for-sale fixed income securities are priced using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, or alternative pricing sources with reasonable levels of price transparency which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets. The Company's derivative instruments are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 at the beginning of the quarter in which a change in circumstances resulted in a transfer. During the three and nine months ended September 30, 2016, the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value.

All of the Company's privately-held debt and redeemable preferred stock securities are classified as Level 3 assets due to the lack of observable inputs to determine fair value. The Company estimates the fair value of its privately-held debt investments on a recurring basis using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. During the three and nine months ended September 30, 2016, the Company purchased $6.6 million and $17.1 million, respectively, related to debt securities of privately-held companies.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain of the Company's assets, including intangible assets, goodwill, and investments in privately-held companies (non-redeemable preferred stock securities and common stock), are measured at fair value on a nonrecurring basis, when they are deemed to be other-than-temporarily impaired. Investments in privately-held companies, which are normally carried at cost, are measured at fair value on a nonrecurring basis due to events and circumstances that the Company identifies as significantly impacting the fair value of investments. The Company estimates the fair value of its investments in privately-held companies using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. Purchased intangible assets are measured at fair value primarily using discounted cash flow projections.

As of September 30, 2016, certain investments in privately-held companies with a carrying value of $6.1 million were impaired and were written-down to their fair value of $1.6 million and were classified as Level 3 assets due to lack of observable inputs to determine fair value. The impairment charges of $4.5 million were recorded to other expense, net in the Condensed Consolidated Statements of Operations. As of December 31, 2015, there were no investments in privately-held companies measured at fair value on a nonrecurring basis. 

As of September 30, 2016 and December 31, 2015, the Company had no liabilities measured at fair value on a nonrecurring basis.

Assets and Liabilities Not Measured at Fair Value

The carrying amounts of the Company's accounts receivable, financing receivables, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. As of September 30, 2016 and December 31, 2015, the estimated fair value of the Company's long-term debt in the Condensed Consolidated Balance Sheets was approximately $2,283.6 million and $1,946.7 million, respectively, based on observable market inputs (Level 2). The carrying value of the promissory note, issued to the Company in connection with the previously-completed sale of Junos Pulse, of $132.9 million approximates its fair value, of which $75.0 million is recorded in prepaid expenses and other current assets and the remaining balance is recorded within other long-term assets in the Condensed Consolidated Balance Sheets as of September 30, 2016. As of December 31, 2015, the carrying value of the promissory note of $132.9 million was recorded in other long-term assets in the Condensed Consolidated Balance Sheets. The promissory note is classified as a Level 3 asset due to the lack of observable inputs to determine fair value. See Note 8, Other Financial Information, for further information on the promissory note.
Derivative Instruments
Derivative Instruments
Derivative Instruments

The Company uses derivatives to partially offset its market exposure to fluctuations in certain foreign currencies and does not enter into derivatives for speculative or trading purposes.

The notional amount of the Company's foreign currency derivatives is summarized as follows (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Cash flow hedges
$
147.9

 
$
116.8

Non-designated derivatives
—

 
71.8

     Total
$
147.9

 
$
188.6



Cash Flow Hedges

The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to cost of revenues and operating expenses. The derivatives are intended to hedge a portion of the U.S. Dollar equivalent of the Company's planned cost of revenues and operating expenses denominated in certain foreign currencies. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of one year or less. The effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive loss, and upon occurrence of the forecasted transaction, is subsequently reclassified into the cost of revenues or operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments in other expense, net, on its Condensed Consolidated Statements of Operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income are expected to be reclassified into earnings within the next twelve months.

See Note 5, Fair Value Measurements, for the fair values of the Company's derivative instruments in the Condensed Consolidated Balance Sheets.

During the three and nine months ended September 30, 2016, the Company recognized unrealized gains of $0.3 million and $4.8 million, respectively, in accumulated other comprehensive loss for the effective portion of its derivative instruments and reclassified a realized gain during the three and nine months ended September 30, 2016 of $1.2 million and $1.4 million, respectively, from accumulated other comprehensive loss to cost of revenues and operating expense in the Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2015, the Company recognized losses of $1.9 million and $5.2 million, respectively, in accumulated other comprehensive loss for the effective portion of its derivative instruments and reclassified a realized loss of $1.9 million and $8.7 million, respectively, from accumulated other comprehensive loss to cost of revenues and operating expense in the Condensed Consolidated Statements of Operations.

The ineffective portion of the Company's derivative instruments recognized in its Condensed Consolidated Statements of Operations was not material during the three and nine months ended September 30, 2016 and September 30, 2015.

Non-Designated Derivatives

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

During the three and nine months ended September 30, 2016, the Company recognized a net gain of $0.3 million and a net loss of $0.9 million, respectively, on non-designated derivative instruments within other expense, net in its Condensed Consolidated Statement of Operations. During the three and nine months ended September 30, 2015, the Company recognized net losses of $0.1 million and $0.4 million, respectively, on non-designated derivative instruments within other expense, net, in its Condensed Consolidated Statements of Operations.

Offsetting of Derivatives

The Company presents its derivative assets and derivative liabilities on a gross basis in the Condensed Consolidated Balance Sheets. However, under agreements containing provisions on netting with certain counterparties of foreign exchange contracts, subject to applicable requirements, the Company is allowed to net-settle transactions on the same date in the same currency, with a single net amount payable by one party to the other. As of September 30, 2016 and December 31, 2015, the potential effect of rights of setoff associated with derivative instruments was not material. The Company is neither required to pledge nor entitled to receive cash collateral related to these derivative transactions.
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets

Goodwill
Goodwill activity during the nine months ended September 30, 2016 was as follows (in millions):
Balance as of December 31, 2015
$
2,981.3

Additions due to business combinations
67.1

Balance as of September 30, 2016
$
3,048.4



There were no impairments to goodwill during the three and nine months ended September 30, 2016 and September 30, 2015.

Purchased Intangible Assets

The Company’s purchased intangible assets were as follows (in millions):
 
Gross
 
Accumulated
Amortization
 
Accumulated Impairments and
Other Charges
 
Net
As of September 30, 2016
 
 
 
 
 
 
 
Finite-lived intangible assets:
 
 
 
 
 
 
 
Technologies and patents
$
604.8

 
$
(501.9
)
 
$
(49.9
)
 
$
53.0

Customer contracts, support agreements, and
  related relationships
83.4

 
(70.0
)
 
(2.8
)
 
10.6

Other
2.0

 
(1.4
)
 
—

 
0.6

Total intangible assets with finite lives
690.2

 
(573.3
)
 
(52.7
)
 
64.2

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
IPR&D
49.0

 
—

 
—

 
49.0

Total purchased intangible assets
$
739.2

 
$
(573.3
)
 
$
(52.7
)
 
$
113.2

 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
Intangible assets with finite lives:
 
 
 
 
 
 
 
Technologies and patents
$
567.7

 
$
(491.8
)
 
$
(49.9
)
 
$
26.0

Customer contracts, support agreements, and
  related relationships
78.1

 
(67.8
)
 
(2.8
)
 
7.5

Other
1.1

 
(0.7
)
 
—

 
0.4

Total purchased intangible assets
$
646.9

 
$
(560.3
)
 
$
(52.7
)
 
$
33.9



The amortization of intangible assets included in the Condensed Consolidated Statements of Operations was as follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Cost of revenues
$
3.5

 
$
4.7

 
$
9.5

 
$
20.2

Operating expenses:
 
 
 
 
 
 
 
Sales and marketing
0.8

 
0.7

 
2.1

 
2.1

General and administrative
0.5

 
0.2

 
1.3

 
0.9

Total operating expenses
1.3

 
0.9

 
3.4

 
3.0

Total
$
4.8

 
$
5.6

 
$
12.9

 
$
23.2



During the nine months ended September 30, 2015, the Company recorded $5.6 million to cost of revenues in the Condensed Consolidated Statements of Operations, related to the acceleration of the end-of-life of certain intangible assets. There were no such charges during the three and nine months ended September 30, 2016 and the three months ended September 30, 2015.

There were no impairment charges related to purchased intangible assets during the three and nine months ended September 30, 2016 and September 30, 2015.

As of September 30, 2016, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):
Years Ending December 31,
Amount
Remainder of 2016
$
3.3

2017
12.5

2018
10.4

2019
10.2

2020
10.1

Thereafter
17.7

Total
$
64.2

Other Financial Information
Other Financial Information
Other Financial Information

Inventories

The Company purchases and holds inventory to provide adequate component supplies over the life of the underlying products. The majority of the Company's inventory is production components to be used in the manufacturing process, and finished goods inventory in transit. Inventories are reported within both prepaid expenses and other current assets, and other long-term assets in the Condensed Consolidated Balance Sheets. Total inventories consisted of the following (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Production materials
$
86.8

 
$
61.9

Finished goods
19.4

 
13.1

Inventories
$
106.2

 
$
75.0


Other Long-Term Assets

Other long-term assets consisted of the following (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Investments in privately-held companies
$
61.1

 
$
102.4

Promissory note in connection with the sale of Junos Pulse
57.9

 
132.9

Federal income tax receivable
40.9

 
28.9

Deferred tax asset
20.1

 
55.9

Inventory
6.5

 
8.4

Prepaid costs, deposits, and other(*)
52.5

 
50.4

Other long-term assets
$
239.0

 
$
378.9


 ________________________________
(*) 
On January 1, 2016, the Company adopted ASU 2015-03. As a result, debt issuance costs included in prepaid costs, deposits, and other were reclassified to long-term debt as of December 31, 2015 to conform to the current-year presentation.
On October 1, 2014, the Company completed the sale of its Junos Pulse product portfolio. The Company received total consideration of $230.7 million, of which $105.7 million was in cash, net of a $19.3 million working capital adjustment, and $125.0 million was in the form of a non-contingent interest-bearing promissory note due to the Company on April 1, 2016 (the “Pulse Note”). On October 2, 2015, the Company and the issuer of the Pulse Note mutually agreed to amend the original terms of the Pulse Note to, among other things, extend the maturity date from April 1, 2016 to December 31, 2018, 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. In addition, under the amended terms of the Pulse Note, the issuer is required to make a minimum payment of $75.0 million on or prior to April 1, 2017, less any principal amount previously pre-paid to the Company. The $75.0 million portion of the note receivable is classified within prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. The remaining balance, along with interest paid in kind, is classified as a long-term asset based on expected collection beyond twelve months from the Condensed Consolidated Balance Sheet date.

The Company considers notes receivable to be impaired when, based on current information and events, it is probable that the Company will not be able to collect the scheduled payments of principal or interest when due. Further, the Company measures any impairment to the Pulse Note based on the present value of expected cash flows, which are discounted at the note's effective interest rate, compared to the recorded investment of the note, including principal and accrued interest. Based on the impairment assessment, no impairment charge was required to the Pulse Note as of September 30, 2016. Interest income on the Pulse Note is accrued and credited to interest income as it is earned, unless it is not probable the Company will collect the amounts due or if the present value of expected cash flows is less than the recorded investment. During the three and nine months ended September 30, 2016, the related amount of interest income recognized was $2.7 million and $8.0 million, respectively. During the three and nine months ended September 30, 2015, the related amount of interest income recognized was $1.6 million and $4.7 million, respectively.

Warranties

The Company accrues for warranty costs based on associated material, labor for customer support, and overhead at the time revenue is recognized. This accrual is reported within other accrued liabilities in the Condensed Consolidated Balance Sheets. Changes in the Company’s warranty reserve during the nine months ended September 30, 2016 were as follows (in millions):
Balance as of December 31, 2015
$
28.4

Provisions made during the period
19.9

Actual costs incurred during the period
(20.9
)
Balance as of September 30, 2016
$
27.4


Deferred Revenue

Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
250.4

 
$
210.1

Distributor inventory and other sell-through items
92.8

 
81.8

Deferred gross product revenue
343.2

 
291.9

Deferred cost of product revenue
(45.3
)
 
(51.6
)
Deferred product revenue, net
297.9

 
240.3

Deferred service revenue
1,006.2

 
927.8

Total
$
1,304.1

 
$
1,168.1

Reported as:
 
 
 
Current
$
918.5

 
$
822.9

Long-term
385.6

 
345.2

Total
$
1,304.1

 
$
1,168.1



Deferred product revenue represents unrecognized revenue related to shipments to distributors that have not sold through to end-users, undelivered product commitments, and other shipments that have not met all revenue recognition criteria. In circumstances when costs are deferred, deferred product revenue is recorded net of the related costs of product revenue. Deferred service revenue represents billable amounts for service contracts, which include technical support, hardware and software maintenance, professional services, and training, for which services have not been rendered.

Other Expense, Net

Other expense, net, consisted of the following (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Interest income
$
9.1

 
$
5.7

 
$
25.5

 
$
16.3

Interest expense
(25.1
)
 
(21.6
)
 
(72.6
)
 
(61.9
)
Gain on investments, net
1.9

 
6.0

 
0.1

 
6.8

Other
0.7

 
1.5

 
(0.2
)
 
(2.5
)
Other expense, net
$
(13.4
)
 
$
(8.4
)
 
$
(47.2
)
 
$
(41.3
)


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

Long-Term Debt

The Company's long-term debt was summarized as follows (in millions, except percentages):
 
As of September 30, 2016
 
Amount
 
Effective Interest
Rates
Senior Notes:
 
 
 
3.125% fixed-rate notes, due February 2019
$
350.0

 
3.36
%
3.300% fixed-rate notes, due June 2020
300.0

 
3.47
%
4.600% fixed-rate notes, due March 2021
300.0

 
4.69
%
4.500% fixed-rate notes, due March 2024, issued March 2014
350.0

 
4.63
%
4.500% fixed-rate notes, due March 2024, issued February 2016
150.0

 
4.87
%
4.350% fixed-rate notes, due June 2025
300.0

 
4.47
%
5.950% fixed-rate notes, due March 2041
400.0

 
6.03
%
Total senior notes
2,150.0

 
 
Unaccreted discount and debt issuance costs
(16.9
)
 
 
Total
$
2,133.1

 
 

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

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

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

In the event of a change of control repurchase event, the holders of the Notes may require the Company to repurchase for cash all or part of the Notes at a purchase price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest, if any.
Interest on the Notes is payable in cash semiannually. The effective interest rates for the Notes include the interest on the Notes, accretion of the discount, and amortization of issuance costs. The indentures that govern the Notes also contain various covenants, including limitations on the Company's ability to incur liens or enter into sale-leaseback transactions over certain dollar thresholds.
As of September 30, 2016, the Company was in compliance with all covenants in the indentures governing the Notes.
Revolving Credit Facility

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

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

As of September 30, 2016, the Company was in compliance with all covenants in the Credit Agreement, and no amounts were outstanding.

Financing Arrangements

The Company provides certain channel partners access to extended financing arrangements that require longer payment terms than those typically provided by the Company by factoring accounts receivable to third-party financing providers (“financing providers”). The program does not and is not intended to affect the timing of the Company's revenue recognition. Under the financing arrangements, proceeds from the financing provider are due to the Company within 30 to 90 days from the sale of the receivable. In these transactions with the financing provider, the Company surrenders control over the transferred assets. During 2015, the Company transitioned certain distribution partners from the third party financing program to the Company's commercial payment terms.

Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $59.3 million and $73.4 million during the three and nine months ended September 30, 2016, respectively, and $11.4 million and $69.9 million during the three and nine months ended September 30, 2015, respectively. The Company received cash proceeds from financing providers of $30.0 million and $40.8 million during the three and nine months ended September 30, 2016, respectively, and $9.1 million and $94.6 million during the three and nine months ended September 30, 2015, respectively. As of September 30, 2016 and December 31, 2015, the amounts owed by the financing provider were $33.8 million and $1.2 million, respectively, which were recorded in accounts receivable on the Condensed Consolidated Balance Sheets.
Equity
Equity
Equity

Cash Dividends on Shares of Common Stock

During the nine months ended September 30, 2016, the Company declared quarterly cash dividends of $0.10 per share of common stock on January 27, 2016, April 28, 2016, and July 26, 2016, which were paid on March 22, 2016, June 22, 2016, and September 22, 2016, respectively, to stockholders of record on March 1, 2016, June 1, 2016, and September 1, 2016, respectively, in the aggregate amount of $114.4 million. Any future dividends, and the establishment of record and payment dates, are subject to approval by the Board of Directors (the “Board”) of Juniper Networks or authorized committee thereof. See Note 16, Subsequent Events, for discussion of the Company's dividend declaration subsequent to September 30, 2016.

Stock Repurchase Activities

In February 2014, the Board approved a stock repurchase program that authorized the Company to repurchase up to $2.1 billion of its common stock, including $1.2 billion pursuant to an accelerated share repurchase program (“2014 Stock Repurchase Program”). In October 2014 and July 2015, the Board authorized a $1.3 billion and $500.0 million increase, respectively, to the 2014 Stock Repurchase Program for a total of $3.9 billion. As of September 30, 2016, there was $219.7 million of authorized funds remaining under the 2014 Stock Repurchase Program. In addition to repurchases under the Company’s stock repurchase program, the Company also repurchases common stock from certain employees in connection with the net issuance of shares to satisfy minimum tax withholding obligations upon the vesting of certain stock awards issued to such employees.

The following table summarizes the Company's repurchases and retirements of its common stock under its stock repurchase program and repurchases associated with minimum tax withholdings (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Repurchases Under Stock Repurchase Program
 
 
 
 
 
 
 
Shares repurchased
4.9

 
1.8

 
13.5

 
42.4

Average price per share
$
23.04

 
$
28.01

 
$
23.25

 
$
24.78

Amount repurchased
$
112.4

 
$
50.0

 
$
312.9

 
$
1,050.0

 
 
 
 
 
 
 
 
Repurchases for Tax Withholding
 
 
 
 
 
 
 
Shares repurchased
0.1

 
0.1

 
0.5

 
0.3

Average price per share
$
23.37

 
$
26.75

 
$
24.47

 
$
25.50

Amount repurchased
$
1.4

 
$
2.9

 
$
11.0

 
$
7.6



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

Accumulated Other Comprehensive Loss, Net of Tax

The components of accumulated other comprehensive loss, net of related taxes, during the nine months ended September 30, 2016 were as follows (in millions):
 
Unrealized
Gains (Losses)
on Available-for-
Sale Securities(1)
 
Unrealized
Gains (Losses)
on Cash Flow
Hedges(2)
 
Foreign
Currency
Translation
Adjustments
 
Total
Balance as of December 31, 2015
$
17.0

 
$
(1.3
)
 
$
(34.9
)
 
$
(19.2
)
Other comprehensive gains (losses) before
   reclassifications
5.4

 
3.6

 
(1.1
)
 
7.9

Amount reclassified from accumulated other
   comprehensive loss
(1.1
)
 
(1.0
)
 
—

 
(2.1
)
Other comprehensive gains (losses), net
4.3

 
2.6

 
(1.1
)
 
5.8

Balance as of September 30, 2016
$
21.3

 
$
1.3

 
$
(36.0
)
 
$
(13.4
)
________________________________
(1) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2016 for realized gains on available-for-sale securities of $1.1 million are included in other expense, net, in the Condensed Consolidated Statements of Operations.
(2) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2016 for realized gains on cash flow hedges are included within research and development of $0.3 million, sales and marketing of $0.3 million, cost of revenues of $0.4 million, and an insignificant amount of realized loss in general and administrative to which the hedged transactions relate in the Condensed Consolidated Statements of Operations.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans

Equity Incentive Plans

The Company’s equity incentive plans include the 2015 Equity Incentive Plan (the “2015 Plan”), the 2006 Equity Incentive Plan (the “2006 Plan”), and the 2008 Employee Stock Purchase Plan (the “ESPP”). Under these plans, the Company has granted stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and performance share awards (“PSAs”). In addition, in connection with certain past acquisitions, the Company has assumed stock options, RSUs, RSAs, and PSAs under the stock plans of the acquired companies and exchanged the assumed awards for the Company's stock options, RSUs, RSAs, and PSAs, respectively.

The 2015 Plan was adopted and approved by the Company's stockholders in May 2015 and had an initial authorized share reserve of 38.0 million shares of common stock plus the addition of any shares subject to outstanding awards under the 2006 Plan and the Amended and Restated 1996 Stock Plan that were outstanding as of May 19, 2015, and that subsequently expire or otherwise terminate, up to a maximum of an additional 29.0 million shares. As of September 30, 2016, an aggregate of 19.5 million shares were subject to outstanding equity awards under the 2015 Plan and the 2006 Plan. As of September 30, 2016, 23.6 million shares were available for future issuance under the 2015 Plan and no shares were available for future issuance under the 2006 Plan.

The ESPP was adopted and approved by the Company's stockholders in May 2008. To date, the Company's stockholders have approved a share reserve of 26.0 million shares of the Company's common stock for issuance under this plan, which includes an additional 7.0 million shares approved by the Company's stockholders in May 2015. The ESPP permits eligible employees to acquire shares of the Company’s common stock at a 15% discount to the offering price (as determined in the ESPP) through periodic payroll deductions of up to 10% of base compensation, subject to individual purchase limits of 6,000 shares in any twelve-month period or $25,000 worth of stock, determined at the fair market value of the shares at the time the stock purchase option is granted, in one calendar year. As of September 30, 2016, approximately 21.1 million shares have been issued and 4.9 million shares remain available for future issuance under the ESPP.

On August 9, 2016, the Company completed the acquisition of Aurrion. In connection with the acquisition, the Company assumed stock options, RSUs, RSAs, and PSAs that had been granted under the Aurrion, Inc. Amended and Restated 2008 Equity Incentive Plan (the "Aurrion Plan") and converted the awards for Juniper Networks' stock options, RSUs, RSAs, and PSAs, respectively, based on an exchange ratio set forth in the acquisition agreement. The Company assumed an aggregate of 2.5 million shares of stock options, RSUs, RSAs, and PSAs in connection with the acquisition of Aurrion. No additional awards can be granted under the Aurrion Plan.

On April 1, 2016, the Company completed the acquisition of BTI. In connection with the acquisition, the Company assumed RSUs and PSAs that had been granted under the BTI Amended and Restated 2012 Stock Option Plan and Long-Term Incentive Plan (the "BTI Plan") and converted the awards for Juniper's RSUs and PSAs, respectively, based on an exchange ratio set forth in the acquisition agreement. The Company assumed an aggregate of 0.4 million shares of RSUs and PSAs in connection with the acquisition of BTI. No additional awards can be granted under the BTI Plan.

As of September 30, 2016, stock options, RSUs, RSAs, and PSAs representing approximately 3.6 million shares of common stock were outstanding under all awards assumed through the Company's acquisitions.

Stock Option Activities

The Company’s stock option activity and related information as of and for the nine months ended September 30, 2016 were as follows (in millions, except for per share amounts and years):
 
Outstanding Options
 
Number of Shares
 
Weighted Average
Exercise Price
per Share
 
Weighted Average
Remaining
Contractual Term
(In Years)
 
Aggregate
Intrinsic
Value
Balance as of December 31, 2015
3.6

 
$
27.52

 
 
 
 
Assumed in acquisitions
0.1

 
8.42

 
 
 
 
Exercised
(0.4
)
 
13.72

 
 
 
 
  Expired
(0.2
)
 
32.09

 
 
 
 
Balance as of September 30, 2016
3.1

 
$
28.48

 
1.6
 
$
9.1

 
 
 
 
 
 
 
 
As of September 30, 2016:
 
 
 
 
 
 
 
Vested and expected-to-vest options
3.1

 
$
28.49

 
1.6
 
$
9.1

Exercisable options
3.0

 
$
29.20

 
1.4
 
$
7.4



The aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $24.06 per share as of September 30, 2016, and the exercise price of the applicable options multiplied by the number of related options. The pre-tax intrinsic value of options exercised, representing the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price of each option, was $0.3 million and $4.6 million for the three and nine months ended September 30, 2016, respectively.

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

The Company’s RSU, RSA, and PSA activity and related information as of and for the nine months ended September 30, 2016 were as follows (in millions, except per share amounts and years):
 
Outstanding RSUs, RSAs, and PSAs
 
Number of Shares
 
Weighted Average
Grant-Date Fair
Value per Share
 
Weighted Average
Remaining
Contractual Term
(In Years)
 
Aggregate
Intrinsic
Value
Balance as of December 31, 2015
18.6

 
$
22.71

 
 
 
 
RSUs granted (1)(3)
7.3

 
24.54

 
 
 
 
RSUs assumed in acquisitions
0.3

 
23.88

 
 
 
 
RSAs assumed in acquisitions
0.3

 
23.08

 
 
 
 
PSAs granted (2)(3)
0.8

 
23.51

 
 
 
 
PSAs assumed in acquisitions
2.2

 
22.63

 
 
 
 
RSUs vested
(6.0
)
 
22.38

 
 
 
 
RSAs vested
(0.9
)
 
20.66

 
 
 
 
PSAs vested
(0.7
)
 
21.61

 
 
 
 
RSUs canceled
(1.2
)
 
23.04

 
 
 
 
PSAs canceled
(0.7
)
 
22.59

 
 
 
 
Balance as of September 30, 2016
20.0

 
$
23.63

 
1.2
 
$
481.9

________________________________
(1) 
Includes service-based and market-based RSUs granted under the 2015 Plan according to its terms.
(2) 
The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.5 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.8 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 nine months ended September 30, 2016, the Company declared quarterly cash dividends of $0.10 per share of common stock on January 27, 2016, April 28, 2016, and July 26, 2016, which were paid on March 22, 2016, June 22, 2016, and September 22, 2016, respectively, to stockholders of record on March 1, 2016, June 1, 2016, and September 1, 2016, respectively, in the aggregate amount of $114.4 million.

Employee Stock Purchase Plan

The ESPP is implemented in a series of offering periods, each currently six months in duration, or such other period as determined by the Board. Employees purchased 1.4 million and 2.7 million shares of common stock through the ESPP at an average exercise price of $19.29 and $19.66 per share for the three and nine months September 30, 2016, respectively, and 1.3 million and 2.7 million shares at an average per share price of $19.18 and $19.25 for the three and nine months ended September 30, 2015, respectively.

Valuation Assumptions

There were no market-based RSUs granted during the three months ended September 30, 2016 and September 30, 2015. The weighted-average assumptions used and the resulting estimates of fair value for ESPP, market-based RSUs, and stock options assumed during the three and nine months ended September 30, 2016 and September 30, 2015 were as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
ESPP (1):
 
 
 
 
 
 
 
Volatility
29%
 
26%
 
32%
 
29%
Risk-free interest rate
0.4%
 
0.2%
 
0.4%
 
0.1%
Expected life (years)
0.5
 
0.5
 
0.5
 
0.5
Dividend yield
1.8%
 
1.4%
 
1.7%
 
1.7%
Weighted-average fair value per share
$5.20
 
$6.20
 
$5.56
 
$5.63
 
 
 
 
 
 
 
 
Market-based RSUs (2):
 
 
 
 
 
 
 
Volatility
—
 
—
 
36%
 
34%
Risk-free interest rate
—
 
—
 
1.2%
 
1.4%
Dividend yield
—
 
—
 
1.7%
 
1.8%
Weighted-average fair value per share
—
 
—
 
$14.71
 
$14.97
 
 
 
 
 
 
 
 
Stock Options Assumed (1):
 
 
 
 
 
 
 
Volatility
31%
 
—
 
31%
 
—
Risk-free interest rate
0.6%
 
—
 
0.6%
 
—
Expected life (years)
1.2
 
—
 
1.2
 
—
Dividend yield
1.7%
 
—
 
1.7%
 
—
Weighted-average fair value per share
$14.21
 
—
 
$14.21
 
—
________________________________
(1) 
The fair value of ESPP and stock options assumed utilizes the Black-Scholes-Merton option-pricing model.
(2) 
The fair value of market-based RSUs utilizes the Monte Carlo valuation methodology. The Company amortizes the fair value of these awards over the derived service period adjusted for estimated forfeitures for each separately vesting tranche of the award. Provided that the derived service is rendered, the total fair value of the market-based RSUs at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria.     

Share-Based Compensation Expense

Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Condensed Consolidated Statements of Operations (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Cost of revenues - Product
$
1.5

 
$
1.3

 
$
4.9

 
$
4.5

Cost of revenues - Service
3.5

 
3.2

 
11.3

 
10.4

Research and development
27.2

 
31.0

 
89.0

 
94.1

Sales and marketing
17.5

 
13.0

 
40.7

 
32.2

General and administrative
5.9

 
8.0

 
17.1

 
20.1

Total
$
55.6

 
$
56.5

 
$
163.0

 
$
161.3



The following table summarizes share-based compensation expense by award type (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Stock options
$
1.5

 
$
1.5

 
$
3.7

 
$
5.2

RSUs, RSAs, and PSAs
50.3

 
52.4

 
147.6

 
146.3

ESPP
3.8

 
2.6

 
11.7

 
9.8

Total
$
55.6

 
$
56.5

 
$
163.0

 
$
161.3



The unrecognized compensation cost, adjusted for estimated forfeitures, recognized over a weighted-average period related to unvested stock options, RSUs, RSAs, and PSAs as of September 30, 2016 were as follows (in millions, except years):
 
Unrecognized
Compensation Cost
 
Weighted Average
Period
(In Years)
Stock options
$
2.2

 
2.1
RSUs, RSAs, and PSAs
$
262.5

 
1.7
Segments
Segments
Segments

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

Net revenues by product and service were as follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Routing
$
620.2

 
$
604.4

 
$
1,699.0

 
$
1,711.6

Switching
222.5

 
201.4

 
607.2

 
558.1

Security
85.5

 
119.6

 
237.1

 
319.5

Total product
928.2

 
925.4

 
2,543.3

 
2,589.2

 
 
 
 
 
 
 
 
Total service
357.1

 
323.2

 
1,061.2

 
949.0

Total
$
1,285.3

 
$
1,248.6

 
$
3,604.5

 
$
3,538.2



The Company attributes revenues to geographic region based on the customer’s shipping address. Net revenues by geographic region were as follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Americas:
 
 
 
 
 
 
 
United States
$
684.6

 
$
665.6

 
$
1,924.9

 
$
1,869.7

Other
60.4

 
47.2

 
168.3

 
167.9

Total Americas
745.0

 
712.8

 
2,093.2

 
2,037.6

Europe, Middle East, and Africa
338.0

 
355.0

 
923.5

 
975.1

Asia Pacific
202.3

 
180.8

 
587.8

 
525.5

Total
$
1,285.3

 
$
1,248.6

 
$
3,604.5

 
$
3,538.2


No customer accounted for 10% or more of the Company's net revenues during the three and nine months ended September 30, 2016 and September 30, 2015, respectively.
The geographic information for property and equipment, net and purchased intangible assets, net was as follows (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
United States
$
1,031.6

 
$
925.5

International
148.6

 
129.4

Property and equipment, net and purchased intangible assets, net
$
1,180.2

 
$
1,054.9



The Company tracks assets by physical location. The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of September 30, 2016 and December 31, 2015, were attributable to U.S. operations.
Income Taxes
Income Taxes
Income Taxes

The Company's effective tax rate for the three and nine months ended September 30, 2016 of 27.1% and 27.2%, respectively, differs from the federal statutory rate of 35% primarily due to the benefit of the Section 199 deduction for U.S. production activities, the federal research and development (“R&D”) credit, and earnings in foreign jurisdictions, which are subject to lower tax rates, and the impact of the discrete items referenced in the table below.

The Company's effective tax rate for the three and nine months ended September 30, 2015 of 20.8% and 26.3%, respectively, differs from the federal statutory rate of 35% primarily due to the benefit of the Section 199 deduction for U.S. production activities and earnings in foreign jurisdictions, which are subject to lower tax rates, and the impact of the discrete items referenced in the table below.
The effective tax rates for the three and nine months ended September 30, 2016 and September 30, 2015 include the tax expense (benefit) of the following discrete items (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Cost-sharing adjustment(1)
$
—

 
$
(13.2
)
 
$
—

 
$
(13.2
)
Gain and losses on investments in privately-held
   companies
0.7

 
—

 
(0.5
)
 
—

Restructuring charges
(0.3
)
 
—

 
(0.3
)
 
—

Acquisition-related charges
$
(0.7
)
 
$
—

 
$
(3.8
)
 
$
—


________________________________
(1) Represents cumulative impact through fiscal year 2014 for the change in treatment of share-based compensation as a result of the U.S. Tax Court decision in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015).

As of September 30, 2016, the total amount of gross unrecognized tax benefits was $220.4 million, of which $190.7 million, if recognized, would affect the Company's effective tax rate. As a result of the closure of the California Franchise Tax Board (“FTB”) audit discussed below, the gross unrecognized tax benefits was reduced by approximately $14.3 million, which did not affect the Company’s effective tax rate.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. There is a greater than remote likelihood that the balance of the gross unrecognized tax benefits will decrease by approximately $5.4 million within the next twelve months due to lapses of applicable statutes of limitations and the completion of tax review cycles in various tax jurisdictions.

The Company is currently under examination by the Internal Revenue Service (“IRS”) for the 2007 through 2009 tax years. In March 2016, the IRS concluded its field audit and issued a final assessment. The Company is appealing this assessment. As of September 30, 2016, the Company believes the resolution of the audits is unlikely to have a material effect on its consolidated financial condition or results of operations.

In June 2016, the California FTB concluded its audit of the 2004 through 2006 tax years. The audit was resolved without impact to the Company’s financial statements. The Company is no longer subject to an audit of its California income taxes through the 2006 tax year.

The Company is also subject to separate ongoing examinations by the UK tax authorities for the 2013 tax year and the India tax authorities for the 2003 tax year, 2004 through 2008 tax years, and the 2009 through 2012 tax years. As of September 30, 2016, the Company is not aware of any other examinations by tax authorities in any other major jurisdictions in which it files income tax returns.

In 2008, the Company received a proposed adjustment from the India tax authorities related to the 2004 tax year. In 2009, the India tax authorities commenced a separate investigation of our 2004 through 2008 tax returns and are disputing the Company's determination of taxable income due to the cost basis of certain fixed assets. The Company accrued $4.6 million in penalties and interest in 2009 related to this matter. The Company understands that in accordance with the administrative and judicial process in India, the Company may be required to make payments that are substantially higher than the amount accrued in order to ultimately settle this issue. The Company strongly believes that any assessment it may receive in excess of the amount accrued would be inconsistent with applicable India tax laws and intends to defend this position vigorously.

The Company is pursuing all available administrative remedies relative to these matters. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to these proposed adjustments and the ultimate resolution of these matters is unlikely to have a material effect on its consolidated financial condition or results of operations; however, there is still a possibility that an adverse outcome of these matters could have a material effect on its consolidated financial condition and results of operations.
Net Income Per Share
Net Income Per Share
Net Income per Share

The Company computed basic and diluted net income per share attributable to Juniper Networks common stockholders as follows (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Numerator:
 
 
 
 
 
 
 
Net income
$
172.4

 
$
197.7

 
$
403.8

 
$
435.9

Denominator:
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net
  income per share
381.0

 
382.8

 
382.3

 
393.2

Dilutive effect of employee stock awards
3.5

 
6.4

 
5.6

 
8.0

Weighted-average shares used to compute diluted
  net income per share
384.5

 
389.2

 
387.9

 
401.2

Net income per share
 
 
 
 
 
 
 
Basic
$
0.45

 
$
0.52

 
$
1.06

 
$
1.11

Diluted
$
0.45

 
$
0.51

 
$
1.04

 
$
1.09

 
 
 
 
 
 
 
 
Anti-dilutive shares
2.7

 
3.1

 
2.7

 
3.7



Basic net income per share is computed using net income available to common stockholders and the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed using net income available to common stockholders and the weighted-average number of common shares outstanding plus dilutive common shares outstanding during the period. Dilutive potential common shares consist of common shares issuable upon exercise of stock options, issuances of ESPP, and vesting of RSUs, RSAs, and PSAs. The Company includes the common shares underlying PSAs in the calculation of diluted net income per share only when they become contingently issuable. Anti-dilutive shares are excluded from the computation of diluted net income per share.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies

Commitments

Operating Leases

The Company leases its facilities and certain equipment under non-cancelable operating leases that expire at various dates through August 31, 2026. Certain leases require the Company to pay variable costs such as taxes, maintenance, and insurance and include renewal options and escalation clauses. Future minimum payments under the non-cancelable operating leases totaled $121.9 million as of September 30, 2016. Rent expense was $9.6 million and $29.2 million for the three and nine months ended September 30, 2016, respectively, and $10.8 million and $33.2 million for the three and nine months ended September 30, 2015, respectively.

Data Center Lease Agreement

On July 10, 2015, the Company entered into a data center lease agreement through March 2026 in which the Company has the option to extend the term of the lease for up to twenty years in increments of either five years or ten years, for approximately 63,000 square feet of space in the State of Washington. As of September 30, 2016, the total payment for the financing obligation under the lease agreement is expected to be approximately $116.4 million over the ten-year term. The lease agreement provides the Company with a tenant allowance of $6.0 million to be used for tenant leasehold improvements. Any unused tenant allowance may be applied as a credit to the rent payment. During the three months ended September 30, 2016, the Company received reimbursement for tenant allowances of $4.4 million. The space is used, among other things, to consolidate certain of the Company's laboratory operations currently located in Sunnyvale, California.

As the Company is subject to certain contractual obligations during the construction period, the Company was deemed the owner of the property during the construction period. As of December 31, 2015, the Company capitalized the construction costs by recording a build-to-suit lease asset under construction in progress of $45.6 million, which is a component of property and equipment, net, and a corresponding build-to-suit financing liability, which is a component of other long-term liabilities, in the Condensed Consolidated Balance Sheets. Through the date of construction completion, the Company recorded additional construction costs of $15.2 million.

Upon the completion of construction in April 2016, the Company assessed whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance. The Company concluded that it had a certain form of continuing economic involvement in the facility, which precluded sale-leaseback accounting treatment. As a result, a total of $60.9 million of costs capitalized were placed in service and are depreciated over the lease term.

Purchase Commitments with Contract Manufacturers and Suppliers

In order to reduce manufacturing lead times and in the interest of having access to adequate component supply, the Company enters into agreements with contract manufacturers and certain suppliers to procure inventory based on the Company's requirements. A significant portion of the Company's purchase commitments arising from these agreements consists of firm and non-cancelable commitments. These purchase commitments totaled $592.7 million as of September 30, 2016.

The Company establishes a liability in connection with purchase commitments related to quantities in excess of its demand forecasts or obsolete materials charges for components purchased by the contract manufacturers based on the Company’s demand forecast or customer orders. As of September 30, 2016, the Company had accrued $15.9 million based on its estimate of such charges.

Debt and Interest Payment on Debt

As of September 30, 2016, the Company held long-term debt consisting of the Notes with a carrying value of $2,133.1 million. Of these Notes, $350.0 million will mature in 2019 and bears interest at a fixed rate of 3.125%, $300.0 million will mature in 2020 and bears interest at a fixed rate of 3.30%, $300.0 million will mature in 2021 and bears interest at a fixed rate of 4.60%, $500.0 million will mature in 2024 and bears interest at a fixed rate of 4.50%, $300.0 million will mature in 2025 and bears interest at a fixed rate of 4.35%, and $400.0 million will mature in 2041 and bears interest at a fixed rate of 5.95%. Interest on the Notes is payable semiannually. See Note 9, Debt and Financing, for further discussion of the Company's long-term debt.

Tax Liabilities

As of September 30, 2016, the Company had $205.1 million included in long-term income taxes payable in the Condensed Consolidated Balance Sheets for unrecognized tax positions. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments related to this amount due to uncertainties in the timing of tax audit outcomes.

Guarantees

The Company enters into agreements with customers that contain indemnification provisions relating to potential situations where claims could be alleged that the Company’s products solely, or in combination with other third party products, infringe the intellectual property rights of a third-party. As of September 30, 2016, the Company recorded $30.5 million for such indemnification obligations in other accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. The Company also has financial guarantees consisting of guarantees of product and service performance, standby letters of credit for certain lease facilities and insurance programs, and guarantees related to third-party customer-financing arrangements of $6.5 million and $15.8 million, as of September 30, 2016 and December 31, 2015, respectively.

Legal Proceedings

Investigations

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

Other Litigation

In addition to the investigations discussed above, the Company is involved in other disputes, litigations, and legal proceedings. The Company intends to aggressively defend itself in these matters, and while there can be no assurances and the outcome of these matters is currently not determinable, the Company currently believes that none of these existing claims or proceedings are likely to have a material adverse effect on its financial position. Notwithstanding the foregoing, there are many uncertainties associated with any litigation and these matters or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could adversely affect gross margins in future periods. If any of those events were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, if any, which could result in the need to adjust the liability and record additional expenses.

The Company records an accrual for loss contingencies for legal proceedings when it believes that an unfavorable outcome is both (a) probable and (b) the amount or range of any possible loss is reasonably estimable. The Company has not recorded any accrual for loss contingencies associated with such legal proceedings or the investigations discussed above.
Subsequent Events
Subsequent Events
Subsequent Events

On October 25, 2016, the Company announced that it had declared a cash dividend of $0.10 per share of common stock payable on December 22, 2016 to stockholders of record as of the close of business on December 1, 2016.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation

The unaudited Condensed Consolidated Financial Statements of Juniper Networks, Inc. (the “Company” or “Juniper”) have been prepared in accordance with United States of America (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. 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, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or any future period. The Condensed Consolidated Balance Sheet as of December 31, 2015, has been derived from the audited Consolidated Financial Statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.

The information included in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
Recent accounting pronouncements 
Recent Accounting Pronouncements

In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-15 (Topic 230) Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments. The pronouncement provides clarification guidance on certain cash flow presentation issues such as debt prepayment or debt extinguishment costs and contingent consideration payments made after a business combination and should be applied using a retrospective transition method for each period presented. For the provisions that are impracticable to apply retrospectively, those provisions may be applied prospectively as of the earliest date practicable. This pronouncement is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Statements of Cash Flows.

In June 2016, the FASB issued ASU No. 2016-13 (Topic 326) Financial Instruments - Credit Losses. The pronouncement was issued to provide more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. This pronouncement is effective for reporting periods beginning after December 15, 2019, and interim periods within those fiscal years, using a modified retrospective adoption method. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.
In March 2016, the FASB issued ASU No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. ASU-2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures.

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

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

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

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

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

In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers (“ASU 2014-09”) which provides guidance for revenue recognition. This ASU affects all contracts that the Company enters into with customers to transfer goods and services or for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard's core principle is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so, the Company will need to use additional judgment and estimates than under the existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of the new revenue standard from December 15, 2016 to December 15, 2017, with early adoption permitted as of annual reporting periods beginning after December 15, 2016. Accordingly, the ASU will be effective for the Company beginning fiscal year 2018. In addition, in March 2016, the FASB issued ASU No. 2016-08 (Topic 606) Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”), which clarifies the principal-versus-agent guidance in Topic 606 and requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, the FASB also issued ASU No. 2016-10 (Topic 606) Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”), which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB also issued ASU No. 2016-12 (Topic 606) Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which amends the revenue guidance to clarify measurement and presentation as well as to include some practical expedients and policy elections. There are two transition methods available under the new standard, either cumulative effect or retrospective. ASU 2016-08, ASU 2016-10, and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements and disclosures.
Business Combinations (Tables)
Schedule of Business Acquisitions, by Acquisition 
The total purchase consideration, consisting of cash consideration paid and the fair value of previous investments, of $101.9 million and $43.8 million for Aurrion and BTI, respectively, were allocated as follows (in millions):
 
Aurrion
 
BTI
 
Total
Net tangible assets acquired/(liabilities) assumed (1)
$
6.0

 
$
(19.7
)
 
$
(13.7
)
Intangible assets acquired
49.0

 
43.3

 
92.3

Goodwill (1)
46.9

 
20.2

 
67.1

    Total
$
101.9

 
$
43.8

 
$
145.7

________________________________
(1) During the three months ended September 30, 2016, the Company recorded insignificant adjustments to the preliminary fair value of certain assets acquired and liabilities assumed in the BTI acquisition. These adjustments were based on information obtained in the current period about facts and circumstances that existed at the acquisition date.
Schedule of Intangible Assets Acquired as Part of Business Combination 
A summary of the Company's intangible assets acquired through the business combinations completed during the nine months ended September 30, 2016 was as follows (in millions, except years):
 
Weighted
Average
Estimated
Useful
Life
(In Years)
 
Amount
Finite-lived intangible assets:
 
 
 
Existing technology
8
 
$
37.1

Customer relationships
8
 
5.3

Trade name
1
 
0.6

Backlog
1
 
0.3

Total intangible assets with finite lives
 
 
43.3

Indefinite-lived intangible assets:
 
 
 
In-process research and development ("IPR&D")
 
 
49.0

Total intangible assets acquired
 
 
$
92.3

Cash Equivalents and Investments (Tables)
Unrealized gains and losses and fair value of available-for-sale and trading securities 
The Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of September 30, 2016 and December 31, 2015 were as follows (in millions):
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
As of September 30, 2016
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
Asset-backed securities
$
326.8

 
$
0.6

 
$
—

 
$
327.4

Certificates of deposit
49.9

 
—

 
—

 
49.9

Commercial paper
52.4

 
—

 
—

 
52.4

Corporate debt securities
866.1

 
1.7

 
(0.5
)
 
867.3

Foreign government debt securities
38.5

 
—

 
—

 
38.5

Government-sponsored enterprise obligations
127.3

 
0.1

 
—

 
127.4

U.S. government securities
331.8

 
0.2

 
(0.1
)
 
331.9

Total fixed income securities
1,792.8

 
2.6

 
(0.6
)
 
1,794.8

Money market funds
413.0

 
—

 
—

 
413.0

Mutual funds
8.1

 
—

 
—

 
8.1

Publicly-traded equity securities
4.5

 
0.8

 
—

 
5.3

Total available-for-sale securities
2,218.4

 
3.4

 
(0.6
)
 
2,221.2

Trading securities in mutual funds(1)
20.5

 
—

 
—

 
20.5

Total
$
2,238.9

 
$
3.4

 
$
(0.6
)
 
$
2,241.7

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
379.0

 
$
—

 
$
—

 
$
379.0

Restricted Investments(2)
71.6

 
—

 
—

 
71.6

Short-term investments
631.8

 
1.0

 
(0.1
)
 
632.7

Long-term investments
1,156.5

 
2.4

 
(0.5
)
 
1,158.4

Total
$
2,238.9

 
$
3.4

 
$
(0.6
)
 
$
2,241.7


________________________________
(1) 
Balance consists of the Company's non-qualified deferred compensation plan assets.
(2) 
Includes $4.0 million of short-term restricted investments classified as prepaid expenses and other on the Condensed Consolidated Balance Sheets.

 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
As of December 31, 2015
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
Asset-backed securities
$
312.2

 
$
—

 
$
(0.5
)
 
$
311.7

Certificates of deposit
9.6

 
—

 
—

 
9.6

Commercial paper
17.7

 
—

 
—

 
17.7

Corporate debt securities
913.8

 
0.2

 
(2.6
)
 
911.4

Foreign government debt securities
16.5

 
—

 
—

 
16.5

Government-sponsored enterprise obligations
204.1

 
—

 
(0.4
)
 
203.7

U.S. government securities
278.0

 
—

 
(0.4
)
 
277.6

Total fixed income securities
1,751.9

 
0.2

 
(3.9
)
 
1,748.2

Money market funds
29.7

 
—

 
—

 
29.7

Mutual funds
6.1

 
0.1

 
—

 
6.2

Publicly-traded equity securities
8.7

 
0.8

 
(0.7
)
 
8.8

Total available-for-sale securities
1,796.4

 
1.1

 
(4.6
)
 
1,792.9

Trading securities in mutual funds(1)
17.7

 
—

 
—

 
17.7

Total
$
1,814.1

 
$
1.1

 
$
(4.6
)
 
$
1,810.6

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
Cash equivalents
$
3.4

 
$
—

 
$
—

 
$
3.4

Restricted Investments
35.8

 
0.1

 
—

 
35.9

Short-term investments
527.2

 
0.9

 
(1.0
)
 
527.1

Long-term investments
1,247.7

 
0.1

 
(3.6
)
 
1,244.2

Total
$
1,814.1

 
$
1.1

 
$
(4.6
)
 
$
1,810.6


________________________________
(1) 
Balance consists of the Company's non-qualified deferred compensation plan assets.
Maturities of fixed income securities 
The contractual maturities of the Company's total fixed income securities as of September 30, 2016 were as follows (in millions):
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Estimated Fair
Value
Due in less than one year
$
636.3

 
$
0.2

 
$
(0.1
)
 
$
636.4

Due between one and five years
1,156.5

 
2.4

 
(0.5
)
 
1,158.4

Total
$
1,792.8

 
$
2.6

 
$
(0.6
)
 
$
1,794.8

Available-for-sale securities in unrealized loss position 
The Company's available-for-sale securities that were in an unrealized loss position as of September 30, 2016 and December 31, 2015 were as follows (in millions):
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
As of September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities
$
195.5

 
$
(0.3
)
 
$
102.5

 
$
(0.2
)
 
$
298.0

 
$
(0.5
)
U.S. government securities
102.2

 
(0.1
)
 
—

 
—

 
102.2

 
(0.1
)
Total available-for-sale securities
$
297.7

 
$
(0.4
)
 
$
102.5

 
$
(0.2
)
 
$
400.2

 
$
(0.6
)


 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
274.2

 
$
(0.4
)
 
$
30.8

 
$
(0.1
)
 
$
305.0

 
$
(0.5
)
Certificates of deposit(*)
3.3

 
—

 
—

 
—

 
3.3

 
—

Corporate debt securities
687.9

 
(2.3
)
 
58.9

 
(0.3
)
 
746.8

 
(2.6
)
Foreign government debt securities(*)
9.5

 
—

 
—

 
—

 
9.5

 
—

Government-sponsored enterprise obligations
185.3

 
(0.4
)
 
—

 
—

 
185.3

 
(0.4
)
U.S. government securities
259.3

 
(0.4
)
 
—

 
—

 
259.3

 
(0.4
)
Total fixed income securities
1,419.5

 
(3.5
)
 
89.7

 
(0.4
)
 
1,509.2

 
(3.9
)
Publicly-traded equity securities
2.1

 
(0.7
)
 
—

 
—

 
2.1

 
(0.7
)
Total available-for-sale securities
$
1,421.6

 
$
(4.2
)
 
$
89.7

 
$
(0.4
)
 
$
1,511.3

 
$
(4.6
)
 ________________________________
(*) 
Balances less than 12 months include investments that were in an insignificant unrealized loss position as of December 31, 2015.
Fair Value Measurements (Tables)
Assets and liabilities measured at fair value on a recurring basis
A summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets were as follows (in millions):
 
Fair Value Measurements at September 30, 2016 Using:
 
 
 
Quoted Prices in
Active Markets For
Identical Assets
 
Significant Other
Observable
Remaining Inputs
 
Significant Other
Unobservable
Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Assets measured at fair value:
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Asset-backed securities
$
—

 
$
327.4

 
$
—

 
$
327.4

Certificates of deposit
—

 
49.9

 
—

 
49.9

Commercial paper
—

 
52.4

 
—

 
52.4

Corporate debt securities
—

 
867.3

 
—

 
867.3

Foreign government debt securities
—

 
38.5

 
—

 
38.5

Government-sponsored enterprise obligations
—

 
127.4

 
—

 
127.4

Money market funds(1)
413.0

 
—

 
—

 
413.0

Mutual funds(2)
8.1

 
—

 
—

 
8.1

Publicly-traded equity securities
5.3

 
—

 
—

 
5.3

U.S. government securities
320.9

 
11.0

 
—

 
331.9

Total available-for-sale securities
747.3

 
1,473.9

 
—

 
2,221.2

Trading securities in mutual funds(3)
20.5

 
—

 
—

 
20.5

Privately-held debt and redeemable preferred stock
  securities


 


 
43.7

 
43.7

Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—

 
2.7

 
—

 
2.7

Total assets measured at fair value
$
767.8

 
$
1,476.6

 
$
43.7

 
$
2,288.1

Liabilities measured at fair value:
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
(0.9
)
 
$
—

 
$
(0.9
)
Total liabilities measured at fair value
$
—

 
$
(0.9
)
 
$
—

 
$
(0.9
)
 
 
 
 
 
 
 
 
Total assets measured at fair value, reported as:
 
 
 
 
 
 
 
Cash equivalents
$
370.0

 
$
9.0

 
$
—

 
$
379.0

Restricted investments
71.6

 
—

 
—

 
71.6

Short-term investments
173.1

 
459.6

 
—

 
632.7

Long-term investments
153.1

 
1,005.3

 
—

 
1,158.4

Prepaid expenses and other current assets
—

 
2.7

 
—

 
2.7

Other long-term assets
—

 
—

 
43.7

 
43.7

Total assets measured at fair value
$
767.8

 
$
1,476.6

 
$
43.7

 
$
2,288.1

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

 
$
(0.9
)
 
$
—

 
$
(0.9
)
Total liabilities measured at fair value
$
—

 
$
(0.9
)
 
$
—

 
$
(0.9
)
________________________________
(1) 
Balance includes $43.0 million of restricted investments measured at fair value related to the Company's D&O Trust and acquisition-related escrows.
(2) 
Balance relates to restricted investments measured at fair value related to the Company's India Gratuity Trust.
(3) 
Balance relates to restricted investments measured at fair value related to the Company's NQDC plan assets.

 
Fair Value Measurements at December 31, 2015 Using:
 
 
 
Quoted Prices in
Active Markets For
Identical Assets
 
Significant Other
Observable
Remaining Inputs
 
Significant Other
Unobservable
Remaining Inputs
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
Assets measured at fair value:
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Asset-backed securities
$
—

 
$
311.7

 
$
—

 
$
311.7

Certificates of deposit
—

 
9.6

 
—

 
9.6

Commercial paper
—

 
17.7

 
—

 
17.7

Corporate debt securities
—

 
911.4

 
—

 
911.4

Foreign government debt securities
—

 
16.5

 
—

 
16.5

Government-sponsored enterprise obligations
—

 
203.7

 
—

 
203.7

Money market funds(1)
29.7

 
—

 
—

 
29.7

Mutual funds(2)
6.2

 
—

 
—

 
6.2

Publicly-traded equity securities
8.8

 
—

 
—

 
8.8

U.S. government securities
247.3

 
30.3

 
—

 
277.6

Total available-for-sale securities
292.0

 
1,500.9

 
—

 
1,792.9

Trading securities in mutual funds(3)
17.7

 
—

 
—

 
17.7

Privately-held debt and redeemable preferred stock
  securities
—

 
—

 
60.2

 
60.2

Derivative assets:
 
 
 
 
 
 
 
Foreign exchange contracts
—

 
0.4

 
—

 
0.4

Total assets measured at fair value
$
309.7

 
$
1,501.3

 
$
60.2

 
$
1,871.2

Liabilities measured at fair value:
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
(1.3
)
 
$
—

 
$
(1.3
)
Total liabilities measured at fair value
$
—

 
$
(1.3
)
 
$
—

 
$
(1.3
)
 
 
 
 
 
 
 
 
Total assets measured at fair value, reported as:
 
 
 
 
 
 
 
Cash equivalents
$
—

 
$
3.4

 
$
—

 
$
3.4

Restricted investments
35.9

 
—

 
—

 
35.9

Short-term investments
108.2

 
418.9

 
—

 
527.1

Long-term investments
165.6

 
1,078.6

 
—

 
1,244.2

Prepaid expenses and other current assets
—

 
0.4

 
—

 
0.4

Other long-term assets
—

 
—

 
60.2

 
60.2

Total assets measured at fair value
$
309.7

 
$
1,501.3

 
$
60.2

 
$
1,871.2

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

 
$
(1.3
)
 
$
—

 
$
(1.3
)
Total liabilities measured at fair value
$
—

 
$
(1.3
)
 
$
—

 
$
(1.3
)

________________________________
(1) 
Balance includes $29.7 million of restricted investments measured at fair value related to the Company's D&O Trust and acquisition-related escrows.
(2) 
Balance relates to restricted investments measured at fair value related to the Company's India Gratuity Trust.
(3) 
Balance relates to investments measured at fair value related to the Company's NQDC plan assets.
Derivative Instruments (Tables)
Derivative instruments
The notional amount of the Company's foreign currency derivatives is summarized as follows (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Cash flow hedges
$
147.9

 
$
116.8

Non-designated derivatives
—

 
71.8

     Total
$
147.9

 
$
188.6

Goodwill and Purchased Intangible Assets (Tables)
Goodwill 
Goodwill activity during the nine months ended September 30, 2016 was as follows (in millions):
Balance as of December 31, 2015
$
2,981.3

Additions due to business combinations
67.1

Balance as of September 30, 2016
$
3,048.4

Finite-lived intangible assets by major class 
The Company’s purchased intangible assets were as follows (in millions):
 
Gross
 
Accumulated
Amortization
 
Accumulated Impairments and
Other Charges
 
Net
As of September 30, 2016
 
 
 
 
 
 
 
Finite-lived intangible assets:
 
 
 
 
 
 
 
Technologies and patents
$
604.8

 
$
(501.9
)
 
$
(49.9
)
 
$
53.0

Customer contracts, support agreements, and
  related relationships
83.4

 
(70.0
)
 
(2.8
)
 
10.6

Other
2.0

 
(1.4
)
 
—

 
0.6

Total intangible assets with finite lives
690.2

 
(573.3
)
 
(52.7
)
 
64.2

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
IPR&D
49.0

 
—

 
—

 
49.0

Total purchased intangible assets
$
739.2

 
$
(573.3
)
 
$
(52.7
)
 
$
113.2

 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
Intangible assets with finite lives:
 
 
 
 
 
 
 
Technologies and patents
$
567.7

 
$
(491.8
)
 
$
(49.9
)
 
$
26.0

Customer contracts, support agreements, and
  related relationships
78.1

 
(67.8
)
 
(2.8
)
 
7.5

Other
1.1

 
(0.7
)
 
—

 
0.4

Total purchased intangible assets
$
646.9

 
$
(560.3
)
 
$
(52.7
)
 
$
33.9

Schedule of indefinite-lived intangible assets by major class 
The Company’s purchased intangible assets were as follows (in millions):
 
Gross
 
Accumulated
Amortization
 
Accumulated Impairments and
Other Charges
 
Net
As of September 30, 2016
 
 
 
 
 
 
 
Finite-lived intangible assets:
 
 
 
 
 
 
 
Technologies and patents
$
604.8

 
$
(501.9
)
 
$
(49.9
)
 
$
53.0

Customer contracts, support agreements, and
  related relationships
83.4

 
(70.0
)
 
(2.8
)
 
10.6

Other
2.0

 
(1.4
)
 
—

 
0.6

Total intangible assets with finite lives
690.2

 
(573.3
)
 
(52.7
)
 
64.2

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
IPR&D
49.0

 
—

 
—

 
49.0

Total purchased intangible assets
$
739.2

 
$
(573.3
)
 
$
(52.7
)
 
$
113.2

 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
Intangible assets with finite lives:
 
 
 
 
 
 
 
Technologies and patents
$
567.7

 
$
(491.8
)
 
$
(49.9
)
 
$
26.0

Customer contracts, support agreements, and
  related relationships
78.1

 
(67.8
)
 
(2.8
)
 
7.5

Other
1.1

 
(0.7
)
 
—

 
0.4

Total purchased intangible assets
$
646.9

 
$
(560.3
)
 
$
(52.7
)
 
$
33.9

Amortization of intangible assets included in the Condensed Consolidated Statements of Operations 
The amortization of intangible assets included in the Condensed Consolidated Statements of Operations was as follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Cost of revenues
$
3.5

 
$
4.7

 
$
9.5

 
$
20.2

Operating expenses:
 
 
 
 
 
 
 
Sales and marketing
0.8

 
0.7

 
2.1

 
2.1

General and administrative
0.5

 
0.2

 
1.3

 
0.9

Total operating expenses
1.3

 
0.9

 
3.4

 
3.0

Total
$
4.8

 
$
5.6

 
$
12.9

 
$
23.2

Estimated future amortization expense of purchased intangible assets with finite lives 
As of September 30, 2016, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):
Years Ending December 31,
Amount
Remainder of 2016
$
3.3

2017
12.5

2018
10.4

2019
10.2

2020
10.1

Thereafter
17.7

Total
$
64.2

Other Financial Information (Tables)
Inventories 
Total inventories consisted of the following (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Production materials
$
86.8

 
$
61.9

Finished goods
19.4

 
13.1

Inventories
$
106.2

 
$
75.0

Other long-term assets 
Other long-term assets consisted of the following (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Investments in privately-held companies
$
61.1

 
$
102.4

Promissory note in connection with the sale of Junos Pulse
57.9

 
132.9

Federal income tax receivable
40.9

 
28.9

Deferred tax asset
20.1

 
55.9

Inventory
6.5

 
8.4

Prepaid costs, deposits, and other(*)
52.5

 
50.4

Other long-term assets
$
239.0

 
$
378.9


 ________________________________
(*) 
On January 1, 2016, the Company adopted ASU 2015-03. As a result, debt issuance costs included in prepaid costs, deposits, and other were reclassified to long-term debt as of December 31, 2015 to conform to the current-year presentation.
Warranties 
Changes in the Company’s warranty reserve during the nine months ended September 30, 2016 were as follows (in millions):
Balance as of December 31, 2015
$
28.4

Provisions made during the period
19.9

Actual costs incurred during the period
(20.9
)
Balance as of September 30, 2016
$
27.4

Deferred revenue 
Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
250.4

 
$
210.1

Distributor inventory and other sell-through items
92.8

 
81.8

Deferred gross product revenue
343.2

 
291.9

Deferred cost of product revenue
(45.3
)
 
(51.6
)
Deferred product revenue, net
297.9

 
240.3

Deferred service revenue
1,006.2

 
927.8

Total
$
1,304.1

 
$
1,168.1

Reported as:
 
 
 
Current
$
918.5

 
$
822.9

Long-term
385.6

 
345.2

Total
$
1,304.1

 
$
1,168.1

Other income (expense), net 
Other expense, net, consisted of the following (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Interest income
$
9.1

 
$
5.7

 
$
25.5

 
$
16.3

Interest expense
(25.1
)
 
(21.6
)
 
(72.6
)
 
(61.9
)
Gain on investments, net
1.9

 
6.0

 
0.1

 
6.8

Other
0.7

 
1.5

 
(0.2
)
 
(2.5
)
Other expense, net
$
(13.4
)
 
$
(8.4
)
 
$
(47.2
)
 
$
(41.3
)
Debt and Financing (Tables)
Long-term debt
The Company's long-term debt was summarized as follows (in millions, except percentages):
 
As of September 30, 2016
 
Amount
 
Effective Interest
Rates
Senior Notes:
 
 
 
3.125% fixed-rate notes, due February 2019
$
350.0

 
3.36
%
3.300% fixed-rate notes, due June 2020
300.0

 
3.47
%
4.600% fixed-rate notes, due March 2021
300.0

 
4.69
%
4.500% fixed-rate notes, due March 2024, issued March 2014
350.0

 
4.63
%
4.500% fixed-rate notes, due March 2024, issued February 2016
150.0

 
4.87
%
4.350% fixed-rate notes, due June 2025
300.0

 
4.47
%
5.950% fixed-rate notes, due March 2041
400.0

 
6.03
%
Total senior notes
2,150.0

 
 
Unaccreted discount and debt issuance costs
(16.9
)
 
 
Total
$
2,133.1

 
 

Equity (Tables)
Schedule of Repurchase Agreements 
The following table summarizes the Company's repurchases and retirements of its common stock under its stock repurchase program and repurchases associated with minimum tax withholdings (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Repurchases Under Stock Repurchase Program
 
 
 
 
 
 
 
Shares repurchased
4.9

 
1.8

 
13.5

 
42.4

Average price per share
$
23.04

 
$
28.01

 
$
23.25

 
$
24.78

Amount repurchased
$
112.4

 
$
50.0

 
$
312.9

 
$
1,050.0

 
 
 
 
 
 
 
 
Repurchases for Tax Withholding
 
 
 
 
 
 
 
Shares repurchased
0.1

 
0.1

 
0.5

 
0.3

Average price per share
$
23.37

 
$
26.75

 
$
24.47

 
$
25.50

Amount repurchased
$
1.4

 
$
2.9

 
$
11.0

 
$
7.6

Components of accumulated other comprehensive income, net of taxes 
The components of accumulated other comprehensive loss, net of related taxes, during the nine months ended September 30, 2016 were as follows (in millions):
 
Unrealized
Gains (Losses)
on Available-for-
Sale Securities(1)
 
Unrealized
Gains (Losses)
on Cash Flow
Hedges(2)
 
Foreign
Currency
Translation
Adjustments
 
Total
Balance as of December 31, 2015
$
17.0

 
$
(1.3
)
 
$
(34.9
)
 
$
(19.2
)
Other comprehensive gains (losses) before
   reclassifications
5.4

 
3.6

 
(1.1
)
 
7.9

Amount reclassified from accumulated other
   comprehensive loss
(1.1
)
 
(1.0
)
 
—

 
(2.1
)
Other comprehensive gains (losses), net
4.3

 
2.6

 
(1.1
)
 
5.8

Balance as of September 30, 2016
$
21.3

 
$
1.3

 
$
(36.0
)
 
$
(13.4
)
________________________________
(1) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2016 for realized gains on available-for-sale securities of $1.1 million are included in other expense, net, in the Condensed Consolidated Statements of Operations.
(2) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2016 for realized gains on cash flow hedges are included within research and development of $0.3 million, sales and marketing of $0.3 million, cost of revenues of $0.4 million, and an insignificant amount of realized loss in general and administrative to which the hedged transactions relate in the Condensed Consolidated Statements of Operations.
Employee Benefit Plans (Tables)
Schedule of share-based compensation, stock options, activity 
The Company’s stock option activity and related information as of and for the nine months ended September 30, 2016 were as follows (in millions, except for per share amounts and years):
 
Outstanding Options
 
Number of Shares
 
Weighted Average
Exercise Price
per Share
 
Weighted Average
Remaining
Contractual Term
(In Years)
 
Aggregate
Intrinsic
Value
Balance as of December 31, 2015
3.6

 
$
27.52

 
 
 
 
Assumed in acquisitions
0.1

 
8.42

 
 
 
 
Exercised
(0.4
)
 
13.72

 
 
 
 
  Expired
(0.2
)
 
32.09

 
 
 
 
Balance as of September 30, 2016
3.1

 
$
28.48

 
1.6
 
$
9.1

 
 
 
 
 
 
 
 
As of September 30, 2016:
 
 
 
 
 
 
 
Vested and expected-to-vest options
3.1

 
$
28.49

 
1.6
 
$
9.1

Exercisable options
3.0

 
$
29.20

 
1.4
 
$
7.4

Schedule of nonvested share activity 
The Company’s RSU, RSA, and PSA activity and related information as of and for the nine months ended September 30, 2016 were as follows (in millions, except per share amounts and years):
 
Outstanding RSUs, RSAs, and PSAs
 
Number of Shares
 
Weighted Average
Grant-Date Fair
Value per Share
 
Weighted Average
Remaining
Contractual Term
(In Years)
 
Aggregate
Intrinsic
Value
Balance as of December 31, 2015
18.6

 
$
22.71

 
 
 
 
RSUs granted (1)(3)
7.3

 
24.54

 
 
 
 
RSUs assumed in acquisitions
0.3

 
23.88

 
 
 
 
RSAs assumed in acquisitions
0.3

 
23.08

 
 
 
 
PSAs granted (2)(3)
0.8

 
23.51

 
 
 
 
PSAs assumed in acquisitions
2.2

 
22.63

 
 
 
 
RSUs vested
(6.0
)
 
22.38

 
 
 
 
RSAs vested
(0.9
)
 
20.66

 
 
 
 
PSAs vested
(0.7
)
 
21.61

 
 
 
 
RSUs canceled
(1.2
)
 
23.04

 
 
 
 
PSAs canceled
(0.7
)
 
22.59

 
 
 
 
Balance as of September 30, 2016
20.0

 
$
23.63

 
1.2
 
$
481.9

________________________________
(1) 
Includes service-based and market-based RSUs granted under the 2015 Plan according to its terms.
(2) 
The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is 0.5 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.8 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 nine months ended September 30, 2016, the Company declared quarterly cash dividends of $0.10 per share of common stock on January 27, 2016, April 28, 2016, and July 26, 2016, which were paid on March 22, 2016, June 22, 2016, and September 22, 2016, respectively, to stockholders of record on March 1, 2016, June 1, 2016, and September 1, 2016, respectively, in the aggregate amount of $114.4 million.
Estimates of weighted average fair value per share under employee purchase plan and stock option plan 
The weighted-average assumptions used and the resulting estimates of fair value for ESPP, market-based RSUs, and stock options assumed during the three and nine months ended September 30, 2016 and September 30, 2015 were as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
ESPP (1):
 
 
 
 
 
 
 
Volatility
29%
 
26%
 
32%
 
29%
Risk-free interest rate
0.4%
 
0.2%
 
0.4%
 
0.1%
Expected life (years)
0.5
 
0.5
 
0.5
 
0.5
Dividend yield
1.8%
 
1.4%
 
1.7%
 
1.7%
Weighted-average fair value per share
$5.20
 
$6.20
 
$5.56
 
$5.63
 
 
 
 
 
 
 
 
Market-based RSUs (2):
 
 
 
 
 
 
 
Volatility
—
 
—
 
36%
 
34%
Risk-free interest rate
—
 
—
 
1.2%
 
1.4%
Dividend yield
—
 
—
 
1.7%
 
1.8%
Weighted-average fair value per share
—
 
—
 
$14.71
 
$14.97
 
 
 
 
 
 
 
 
Stock Options Assumed (1):
 
 
 
 
 
 
 
Volatility
31%
 
—
 
31%
 
—
Risk-free interest rate
0.6%
 
—
 
0.6%
 
—
Expected life (years)
1.2
 
—
 
1.2
 
—
Dividend yield
1.7%
 
—
 
1.7%
 
—
Weighted-average fair value per share
$14.21
 
—
 
$14.21
 
—
________________________________
(1) 
The fair value of ESPP and stock options assumed utilizes the Black-Scholes-Merton option-pricing model.
(2) 
The fair value of market-based RSUs utilizes the Monte Carlo valuation methodology. The Company amortizes the fair value of these awards over the derived service period adjusted for estimated forfeitures for each separately vesting tranche of the award. Provided that the derived service is rendered, the total fair value of the market-based RSUs at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria.     

Schedule of employee service share-based compensation, allocation of recognized period costs 
Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Condensed Consolidated Statements of Operations (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Cost of revenues - Product
$
1.5

 
$
1.3

 
$
4.9

 
$
4.5

Cost of revenues - Service
3.5

 
3.2

 
11.3

 
10.4

Research and development
27.2

 
31.0

 
89.0

 
94.1

Sales and marketing
17.5

 
13.0

 
40.7

 
32.2

General and administrative
5.9

 
8.0

 
17.1

 
20.1

Total
$
55.6

 
$
56.5

 
$
163.0

 
$
161.3

Disclosure of share-based compensation arrangements by share-based payment award 
The following table summarizes share-based compensation expense by award type (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Stock options
$
1.5

 
$
1.5

 
$
3.7

 
$
5.2

RSUs, RSAs, and PSAs
50.3

 
52.4

 
147.6

 
146.3

ESPP
3.8

 
2.6

 
11.7

 
9.8

Total
$
55.6

 
$
56.5

 
$
163.0

 
$
161.3

Schedule of unrecognized compensation cost, nonvested awards 
The unrecognized compensation cost, adjusted for estimated forfeitures, recognized over a weighted-average period related to unvested stock options, RSUs, RSAs, and PSAs as of September 30, 2016 were as follows (in millions, except years):
 
Unrecognized
Compensation Cost
 
Weighted Average
Period
(In Years)
Stock options
$
2.2

 
2.1
RSUs, RSAs, and PSAs
$
262.5

 
1.7


Segments (Tables)
Financial information for each segment 
Net revenues by product and service were as follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Routing
$
620.2

 
$
604.4

 
$
1,699.0

 
$
1,711.6

Switching
222.5

 
201.4

 
607.2

 
558.1

Security
85.5

 
119.6

 
237.1

 
319.5

Total product
928.2

 
925.4

 
2,543.3

 
2,589.2

 
 
 
 
 
 
 
 
Total service
357.1

 
323.2

 
1,061.2

 
949.0

Total
$
1,285.3

 
$
1,248.6

 
$
3,604.5

 
$
3,538.2

Net revenues by geographic region 
The Company attributes revenues to geographic region based on the customer’s shipping address. Net revenues by geographic region were as follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Americas:
 
 
 
 
 
 
 
United States
$
684.6

 
$
665.6

 
$
1,924.9

 
$
1,869.7

Other
60.4

 
47.2

 
168.3

 
167.9

Total Americas
745.0

 
712.8

 
2,093.2

 
2,037.6

Europe, Middle East, and Africa
338.0

 
355.0

 
923.5

 
975.1

Asia Pacific
202.3

 
180.8

 
587.8

 
525.5

Total
$
1,285.3

 
$
1,248.6

 
$
3,604.5

 
$
3,538.2

Long-lived Assets by Geographic Areas 
The geographic information for property and equipment, net and purchased intangible assets, net was as follows (in millions):
 
As of
 
September 30,
2016
 
December 31,
2015
United States
$
1,031.6

 
$
925.5

International
148.6

 
129.4

Property and equipment, net and purchased intangible assets, net
$
1,180.2

 
$
1,054.9

Income Taxes (Tables)
Schedule of effective income tax rate reconciliation
The effective tax rates for the three and nine months ended September 30, 2016 and September 30, 2015 include the tax expense (benefit) of the following discrete items (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Cost-sharing adjustment(1)
$
—

 
$
(13.2
)
 
$
—

 
$
(13.2
)
Gain and losses on investments in privately-held
   companies
0.7

 
—

 
(0.5
)
 
—

Restructuring charges
(0.3
)
 
—

 
(0.3
)
 
—

Acquisition-related charges
$
(0.7
)
 
$
—

 
$
(3.8
)
 
$
—


________________________________
(1) Represents cumulative impact through fiscal year 2014 for the change in treatment of share-based compensation as a result of the U.S. Tax Court decision in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015).
Net Income Per Share (Tables)
Schedule of earnings per share, basic and diluted
The Company computed basic and diluted net income per share attributable to Juniper Networks common stockholders as follows (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Numerator:
 
 
 
 
 
 
 
Net income
$
172.4

 
$
197.7

 
$
403.8

 
$
435.9

Denominator:
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net
  income per share
381.0

 
382.8

 
382.3

 
393.2

Dilutive effect of employee stock awards
3.5

 
6.4

 
5.6

 
8.0

Weighted-average shares used to compute diluted
  net income per share
384.5

 
389.2

 
387.9

 
401.2

Net income per share
 
 
 
 
 
 
 
Basic
$
0.45

 
$
0.52

 
$
1.06

 
$
1.11

Diluted
$
0.45

 
$
0.51

 
$
1.04

 
$
1.09

 
 
 
 
 
 
 
 
Anti-dilutive shares
2.7

 
3.1

 
2.7

 
3.7

Basis of Presentation (Details) (Accounting Standards Update 2015-03 [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Long-term Debt [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Deferred finance costs, net
$ 11.3 
Other Assets [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Deferred finance costs, net
$ (11.3)
Business Combinations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Aug. 9, 2016
Aurrion, Inc [Member]
Aug. 9, 2016
Aurrion, Inc [Member]
Aug. 8, 2016
Aurrion, Inc [Member]
Apr. 1, 2016
BTI Systems, Inc [Member]
Mar. 31, 2016
BTI Systems, Inc [Member]
Sep. 30, 2016
BTI Systems, Inc [Member]
Sep. 30, 2016
BTI Systems, Inc [Member]
Apr. 1, 2016
BTI Systems, Inc [Member]
Mar. 31, 2016
BTI Systems, Inc [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest prior to acquisition of remaining ownership interest
 
 
 
 
 
 
18.00% 
 
 
 
 
 
12.00% 
Ownership interest
 
 
 
 
 
100.00% 
 
 
 
 
 
100.00% 
 
Payments to acquire business
 
 
 
 
$ 74.3 
 
 
$ 25.8 
 
 
 
 
 
Fair value of pre-existing equity investment
 
 
 
 
17.2 
 
 
17.1 
 
 
 
 
 
Fair value of pre-existing convertible debt
 
 
 
 
10.4 
 
 
 
 
 
 
 
 
Fair value of share-based compensation assumed
 
 
 
 
55.0 
 
 
8.6 
 
 
 
 
 
Convertible debt held during pre-existing investment
 
 
 
 
 
 
 
 
0.9 
 
 
 
 
Repayment of liabilities incurred
 
 
 
 
 
 
 
18.6 
 
 
 
 
 
Acquisition related costs
2.8 
0 
10.7 
0 
 
 
 
 
 
 
 
 
 
Restructuring charges related to employee severance
 
 
 
 
 
 
 
 
 
$ 0.5 
$ 2.9 
 
 
Business Combinations - Purchase Price Allocation (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
Goodwill
$ 3,048.4 
$ 2,981.3 
Aurrion, Inc [Member]
 
 
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
Net tangible liabilities assumed
6.0 
 
Intangible assets acquired
49.0 
 
Goodwill
46.9 
 
Total
101.9 
 
BTI Systems, Inc [Member]
 
 
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
Net tangible liabilities assumed
(19.7)
 
Intangible assets acquired
43.3 
 
Goodwill
20.2 
 
Total
43.8 
 
Aurrion, Inc. and BTI Systems, Inc. [Member]
 
 
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
Net tangible liabilities assumed
(13.7)
 
Intangible assets acquired
92.3 
 
Goodwill
67.1 
 
Total
$ 145.7 
 
Business Combinations - Intangible Assets Acquired (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
 
Finite-lived intangible assets:
$ 43.3 
Total intangible assets acquired
92.3 
Existing Technology [Member]
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
Weighted Average Estimated Useful Life (In Years)
8 years 
Finite-lived intangible assets:
37.1 
Customer Relationships [Member]
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
Weighted Average Estimated Useful Life (In Years)
8 years 
Finite-lived intangible assets:
5.3 
Trade Name [Member]
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
Weighted Average Estimated Useful Life (In Years)
1 year 
Finite-lived intangible assets:
0.6 
Backlog [Member]
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
Weighted Average Estimated Useful Life (In Years)
1 year 
Finite-lived intangible assets:
0.3 
In-process research and development (IPR&D) [Member]
 
Acquired Indefinite-lived Intangible Assets [Line Items]
 
Indefinite-lived intangible assets:
$ 49.0 
Cash Equivalents and Investments - Available-For-Sale and Trading Securities (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
$ 2,218.4 
$ 1,796.4 
Available-for-sale securities, gross unrealized gains
3.4 
1.1 
Available-for-sale securities, gross unrealized losses
(0.6)
(4.6)
Available-for-sale securities, estimated fair value
2,221.2 
1,792.9 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
2,238.9 
1,814.1 
Total investments, gross unrealized gains
3.4 
1.1 
Total investments, gross unrealized losses
(0.6)
(4.6)
Total investments, estimated fair value
2,241.7 
1,810.6 
Cash equivalents [Member]
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
379.0 
3.4 
Total investments, gross unrealized gains
0 
0 
Total investments, gross unrealized losses
0 
0 
Total investments, estimated fair value
379.0 
3.4 
Restricted investments [Member]
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
71.6 
35.8 
Total investments, gross unrealized gains
0 
0.1 
Total investments, gross unrealized losses
0 
0 
Total investments, estimated fair value
71.6 
35.9 
Restricted investments [Member] |
Prepaid expenses and other current assets [Member]
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, estimated fair value
4.0 
 
Short-term investments [Member]
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
631.8 
527.2 
Total investments, gross unrealized gains
1.0 
0.9 
Total investments, gross unrealized losses
(0.1)
(1.0)
Total investments, estimated fair value
632.7 
527.1 
Long-term investments [Member]
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
1,156.5 
1,247.7 
Total investments, gross unrealized gains
2.4 
0.1 
Total investments, gross unrealized losses
(0.5)
(3.6)
Total investments, estimated fair value
1,158.4 
1,244.2 
Debt Securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
1,792.8 
1,751.9 
Available-for-sale securities, gross unrealized gains
2.6 
0.2 
Available-for-sale securities, gross unrealized losses
(0.6)
(3.9)
Available-for-sale securities, estimated fair value
1,794.8 
1,748.2 
Asset-backed securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
326.8 
312.2 
Available-for-sale securities, gross unrealized gains
0.6 
0 
Available-for-sale securities, gross unrealized losses
0 
(0.5)
Available-for-sale securities, estimated fair value
327.4 
311.7 
Certificates of deposit [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
49.9 
9.6 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
0 
0 
Available-for-sale securities, estimated fair value
49.9 
9.6 
Commercial paper [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
52.4 
17.7 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
0 
0 
Available-for-sale securities, estimated fair value
52.4 
17.7 
Corporate debt securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
866.1 
913.8 
Available-for-sale securities, gross unrealized gains
1.7 
0.2 
Available-for-sale securities, gross unrealized losses
(0.5)
(2.6)
Available-for-sale securities, estimated fair value
867.3 
911.4 
Foreign government debt securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
38.5 
16.5 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
0 
0 
Available-for-sale securities, estimated fair value
38.5 
16.5 
Government-sponsored enterprise obligations [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
127.3 
204.1 
Available-for-sale securities, gross unrealized gains
0.1 
0 
Available-for-sale securities, gross unrealized losses
0 
(0.4)
Available-for-sale securities, estimated fair value
127.4 
203.7 
US government securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
331.8 
278.0 
Available-for-sale securities, gross unrealized gains
0.2 
0 
Available-for-sale securities, gross unrealized losses
(0.1)
(0.4)
Available-for-sale securities, estimated fair value
331.9 
277.6 
Money market funds [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
413.0 
29.7 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
0 
0 
Available-for-sale securities, estimated fair value
413.0 
29.7 
Mutual funds [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
8.1 
6.1 
Available-for-sale securities, gross unrealized gains
0 
0.1 
Available-for-sale securities, gross unrealized losses
0 
0 
Available-for-sale securities, estimated fair value
8.1 
6.2 
Trading securities:
 
 
Trading securities, amortized cost
20.5 
17.7 
Trading securities, gross unrealized gains
0 
0 
Trading securities, gross unrealized losses
0 
0 
Trading securities, estimated fair value
20.5 
17.7 
Publicly-traded equity securities [Member]
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
4.5 
8.7 
Available-for-sale securities, gross unrealized gains
0.8 
0.8 
Available-for-sale securities, gross unrealized losses
0 
(0.7)
Available-for-sale securities, estimated fair value
$ 5.3 
$ 8.8 
Cash Equivalents and Investments - Maturities of Fixed Income Investments (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Schedule of Fixed Income Securities Maturities [Abstract]
 
Amortized cost due within one year
$ 636.3 
Gross unrealized gains due within one year
0.2 
Gross unrealized losses due within one year
(0.1)
Estimated fair value due within one year
636.4 
Amortized cost due between one and five years
1,156.5 
Gross unrealized gains due between one and five years
2.4 
Gross unrealized losses due between one and five year
(0.5)
Estimated fair value due between one and five year
1,158.4 
Total investments, amortized cost
1,792.8 
Gross Unrealized Gains
2.6 
Gross Unrealized Losses
(0.6)
Total investments, estimated fair value
$ 1,794.8 
Cash Equivalents, and Investments, Narrative (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Investment
Sep. 30, 2015
Sep. 30, 2016
Investment
Sep. 30, 2015
Dec. 31, 2015
Investment
Cash Equivalents and Investments [Abstract]
 
 
 
 
 
Total investments in unrealized loss position
221 
 
221 
 
682 
Restricted cash and investments, current
$ 20,900,000 
 
$ 20,900,000 
 
 
Restricted cash and investments, noncurrent
89,800,000 
 
89,800,000 
 
36,200,000 
Investments in privately-held companies
61,100,000 
 
61,100,000 
 
102,400,000 
Privately held investments at fair value
43,700,000 
 
43,700,000 
 
60,200,000 
Unrealized gain (loss) on privately-held debt securities
0 
0 
0 
0 
 
Impairment of privately-held investment
$ 4,500,000 
$ 0 
$ 9,600,000 
$ 0 
 
Cash Equivalents and Investments - Unrealized Loss on Available-for-Sale Securities (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
$ 297.7 
$ 1,421.6 
Unrealized loss, less than 12 months
(0.4)
(4.2)
Fair value, 12 months or greater
102.5 
89.7 
Unrealized loss, 12 months or greater
(0.2)
(0.4)
Total fair value, available-for-sale investments in continuous unrealized loss position
400.2 
1,511.3 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.6)
(4.6)
Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
1,419.5 
Unrealized loss, less than 12 months
 
(3.5)
Fair value, 12 months or greater
 
89.7 
Unrealized loss, 12 months or greater
 
(0.4)
Total fair value, available-for-sale investments in continuous unrealized loss position
 
1,509.2 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
(3.9)
Asset-backed securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
274.2 
Unrealized loss, less than 12 months
 
(0.4)
Fair value, 12 months or greater
 
30.8 
Unrealized loss, 12 months or greater
 
(0.1)
Total fair value, available-for-sale investments in continuous unrealized loss position
 
305.0 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
(0.5)
Certificates of deposit [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
3.3 
Unrealized loss, less than 12 months
 
0 
Fair value, 12 months or greater
 
0 
Unrealized loss, 12 months or greater
 
0 
Total fair value, available-for-sale investments in continuous unrealized loss position
 
3.3 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
0 
Corporate debt securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
195.5 
687.9 
Unrealized loss, less than 12 months
(0.3)
(2.3)
Fair value, 12 months or greater
102.5 
58.9 
Unrealized loss, 12 months or greater
(0.2)
(0.3)
Total fair value, available-for-sale investments in continuous unrealized loss position
298.0 
746.8 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.5)
(2.6)
Foreign government debt securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
9.5 
Unrealized loss, less than 12 months
 
0 
Fair value, 12 months or greater
 
0 
Unrealized loss, 12 months or greater
 
0 
Total fair value, available-for-sale investments in continuous unrealized loss position
 
9.5 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
0 
Government-sponsored enterprise obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
185.3 
Unrealized loss, less than 12 months
 
(0.4)
Fair value, 12 months or greater
 
0 
Unrealized loss, 12 months or greater
 
0 
Total fair value, available-for-sale investments in continuous unrealized loss position
 
185.3 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
(0.4)
US government securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
102.2 
259.3 
Unrealized loss, less than 12 months
(0.1)
(0.4)
Fair value, 12 months or greater
0 
0 
Unrealized loss, 12 months or greater
0 
0 
Total fair value, available-for-sale investments in continuous unrealized loss position
102.2 
259.3 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.1)
(0.4)
Publicly-traded equity securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
2.1 
Unrealized loss, less than 12 months
 
(0.7)
Fair value, 12 months or greater
 
0 
Unrealized loss, 12 months or greater
 
0 
Total fair value, available-for-sale investments in continuous unrealized loss position
 
2.1 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
$ (0.7)
Fair Value Measurements (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Dec. 31, 2015
Available-for-sale securities:
 
 
 
Available-for-sale securities
$ 2,221.2 
$ 2,221.2 
$ 1,792.9 
Fair Value Measurements (Textuals)
 
 
 
Restricted investments
43.0 
43.0 
29.7 
Asset-backed Securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
327.4 
327.4 
311.7 
Certificates of deposit [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
49.9 
49.9 
9.6 
Commercial paper [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
52.4 
52.4 
17.7 
Corporate debt securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
867.3 
867.3 
911.4 
Foreign government debt securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
38.5 
38.5 
16.5 
Government-sponsored enterprise obligations [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
127.4 
127.4 
203.7 
Money market funds [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
413.0 
413.0 
29.7 
Mutual funds [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
8.1 
8.1 
6.2 
Trading securities:
 
 
 
Trading securities
20.5 
20.5 
17.7 
Publicly-traded equity securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
5.3 
5.3 
8.8 
US government securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
331.9 
331.9 
277.6 
Privately-held debt and redeemable preferred stock securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
1,794.8 
1,794.8 
1,748.2 
Fair Value, Measurements, Recurring [Member]
 
 
 
Derivative assets:
 
 
 
Total assets measured at fair value
2,288.1 
2,288.1 
1,871.2 
Liabilities measured at fair value:
 
 
 
Other accrued liabilities
(0.9)
(0.9)
(1.3)
Total liabilities measured at fair value
(0.9)
(0.9)
(1.3)
Cash equivalents
379.0 
379.0 
3.4 
Restricted investments
71.6 
71.6 
35.9 
Short-term investments
632.7 
632.7 
527.1 
Long-term investments
1,158.4 
1,158.4 
1,244.2 
Prepaid expenses and other current assets
2.7 
2.7 
0.4 
Other long-term assets
43.7 
43.7 
60.2 
Fair Value, Measurements, Recurring [Member] |
Foreign exchange contract [Member]
 
 
 
Derivative assets:
 
 
 
Foreign exchange contracts
2.7 
2.7 
0.4 
Liabilities measured at fair value:
 
 
 
Derivative liabilities
(0.9)
(0.9)
(1.3)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Derivative assets:
 
 
 
Total assets measured at fair value
767.8 
767.8 
309.7 
Liabilities measured at fair value:
 
 
 
Other accrued liabilities
0 
0 
0 
Total liabilities measured at fair value
0 
0 
0 
Cash equivalents
370.0 
370.0 
0 
Restricted investments
71.6 
71.6 
35.9 
Short-term investments
173.1 
173.1 
108.2 
Long-term investments
153.1 
153.1 
165.6 
Prepaid expenses and other current assets
0 
0 
0 
Other long-term assets
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Foreign exchange contract [Member]
 
 
 
Derivative assets:
 
 
 
Foreign exchange contracts
0 
0 
0 
Liabilities measured at fair value:
 
 
 
Derivative liabilities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Derivative assets:
 
 
 
Total assets measured at fair value
1,476.6 
1,476.6 
1,501.3 
Liabilities measured at fair value:
 
 
 
Other accrued liabilities
(0.9)
(0.9)
(1.3)
Total liabilities measured at fair value
(0.9)
(0.9)
(1.3)
Cash equivalents
9.0 
9.0 
3.4 
Restricted investments
0 
0 
0 
Short-term investments
459.6 
459.6 
418.9 
Long-term investments
1,005.3 
1,005.3 
1,078.6 
Prepaid expenses and other current assets
2.7 
2.7 
0.4 
Other long-term assets
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Foreign exchange contract [Member]
 
 
 
Derivative assets:
 
 
 
Foreign exchange contracts
2.7 
2.7 
0.4 
Liabilities measured at fair value:
 
 
 
Derivative liabilities
(0.9)
(0.9)
(1.3)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Derivative assets:
 
 
 
Total assets measured at fair value
43.7 
43.7 
60.2 
Liabilities measured at fair value:
 
 
 
Other accrued liabilities
0 
0 
0 
Total liabilities measured at fair value
0 
0 
0 
Cash equivalents
0 
0 
0 
Restricted investments
0 
0 
0 
Short-term investments
0 
0 
0 
Long-term investments
0 
0 
0 
Prepaid expenses and other current assets
0 
0 
0 
Other long-term assets
43.7 
43.7 
60.2 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Foreign exchange contract [Member]
 
 
 
Derivative assets:
 
 
 
Foreign exchange contracts
0 
0 
0 
Liabilities measured at fair value:
 
 
 
Derivative liabilities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
327.4 
327.4 
311.7 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
327.4 
327.4 
311.7 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
49.9 
49.9 
9.6 
Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
49.9 
49.9 
9.6 
Fair Value, Measurements, Recurring [Member] |
Certificates of deposit [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
52.4 
52.4 
17.7 
Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
52.4 
52.4 
17.7 
Fair Value, Measurements, Recurring [Member] |
Commercial paper [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
867.3 
867.3 
911.4 
Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
867.3 
867.3 
911.4 
Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
38.5 
38.5 
16.5 
Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
38.5 
38.5 
16.5 
Fair Value, Measurements, Recurring [Member] |
Foreign government debt securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
127.4 
127.4 
203.7 
Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
127.4 
127.4 
203.7 
Fair Value, Measurements, Recurring [Member] |
Government-sponsored enterprise obligations [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Money market funds [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
413.0 
413.0 
29.7 
Fair Value, Measurements, Recurring [Member] |
Money market funds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
413.0 
413.0 
29.7 
Fair Value, Measurements, Recurring [Member] |
Money market funds [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Money market funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
8.1 
8.1 
6.2 
Trading securities:
 
 
 
Trading securities
20.5 
20.5 
17.7 
Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
8.1 
8.1 
6.2 
Trading securities:
 
 
 
Trading securities
20.5 
20.5 
17.7 
Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Trading securities:
 
 
 
Trading securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Mutual funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Trading securities:
 
 
 
Trading securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
5.3 
5.3 
8.8 
Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
5.3 
5.3 
8.8 
Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Publicly-traded equity securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
US government securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
331.9 
331.9 
277.6 
Fair Value, Measurements, Recurring [Member] |
US government securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
320.9 
320.9 
247.3 
Fair Value, Measurements, Recurring [Member] |
US government securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
11.0 
11.0 
30.3 
Fair Value, Measurements, Recurring [Member] |
US government securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
2,221.2 
2,221.2 
1,792.9 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
747.3 
747.3 
292.0 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
1,473.9 
1,473.9 
1,500.9 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Available-for-sale securities:
 
 
 
Available-for-sale securities
0 
0 
0 
Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member]
 
 
 
Trading securities:
 
 
 
Privately-held debt and redeemable preferred stock securities
43.7 
43.7 
60.2 
Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Trading securities:
 
 
 
Privately-held debt and redeemable preferred stock securities
   
   
0 
Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Trading securities:
 
 
 
Privately-held debt and redeemable preferred stock securities
   
   
0 
Fair Value, Measurements, Recurring [Member] |
Privately-held debt and redeemable preferred stock securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Trading securities:
 
 
 
Privately-held debt and redeemable preferred stock securities
43.7 
43.7 
60.2 
Fair Value Measurements (Textuals)
 
 
 
Purchases of privately-held investments
$ 6.6 
$ 17.1 
 
Fair Value Measurements - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Prepaid expenses and other current assets [Member]
Dec. 31, 2015
Other Long-term Assets [Member]
Sep. 30, 2016
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Nonrecurring [Member]
Sep. 30, 2016
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2015
Fair Value, Inputs, Level 2 [Member]
Sep. 30, 2016
Debt Securities [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2015
Debt Securities [Member]
Fair Value, Measurements, Recurring [Member]
Sep. 30, 2016
Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Sep. 30, 2016
Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2015
Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Sep. 30, 2016
Debt Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2015
Debt Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of privately-held investments
 
 
 
 
 
 
 
 
 
 
 
$ 6.6 
$ 17.1 
 
 
 
Privately-held investment
6.1 
 
6.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
Privately-held investment, fair value
 
 
 
 
 
 
1.6 
 
 
43.7 
60.2 
43.7 
43.7 
60.2 
   
0 
Impairment of privately-held investment
4.5 
0 
9.6 
0 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term and Long-term debt, fair value
 
 
 
 
 
 
 
2,283.6 
1,946.7 
 
 
 
 
 
 
 
Note receivable carrying value
$ 132.9 
 
$ 132.9 
 
$ 75.0 
$ 132.9 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]
 
 
Notional amount of foreign currency derivatives
$ 147.9 
$ 188.6 
Cash flow hedges [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional amount of foreign currency derivatives
147.9 
116.8 
Non-designated derivatives [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Notional amount of foreign currency derivatives
$ 0 
$ 71.8 
Derivative Instruments, Cash Flow Hedges and Offsetting of Derivatives (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Derivatives, Fair Value [Line Items]
 
 
 
 
Maximum length of time hedged in cash flow hedge
 
 
1 year 
 
Foreign exchange contract [Member] |
Cash flow hedging [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Derivative instruments, gain (loss) recognized in other comprehensive income (loss), Effective portion
$ 0.3 
$ (1.9)
$ 4.8 
$ (5.2)
Foreign exchange contract [Member] |
Cash flow hedging [Member] |
Cost of Revenues [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Derivative instruments, gain (loss) reclassified from accumulated OCI into operating expense, Effective portion
1.2 
(1.9)
 
 
Foreign exchange contract [Member] |
Cash flow hedging [Member] |
Operating expense [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Derivative instruments, gain (loss) reclassified from accumulated OCI into operating expense, Effective portion
 
 
$ 1.4 
$ (8.7)
Derivative Instruments, Non-Designated Hedges (Details) (Foreign exchange contract [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Maturity period of non designated hedges derivatives
 
 
2 months 
 
Other income (expense), net [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Net gain (loss) on non-designated derivative instruments
$ 0.3 
$ (0.1)
$ (0.9)
$ (0.4)
Goodwill and Purchased Intangible Assets, Goodwill (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Goodwill [Roll Forward]
 
Balance as of December 31, 2015
$ 2,981.3 
Additions due to business combinations
67.1 
Balance as of September 30, 2016
$ 3,048.4 
Goodwill and Purchased Intangible Assets, Purchased Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Purchased Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
$ 690.2 
 
Finite-lived intangible assets, accumulated amortization
(573.3)
 
Finite-lived intangible assets, impairments and other charges
(52.7)
 
Finite-lived intangible assets, net
64.2 
 
Total purchased intangible assets, gross
739.2 
646.9 
Total purchased intangible assets, accumulated amortization
(573.3)
(560.3)
Total purchased intangible assets, impairments and other charges
(52.7)
(52.7)
Total purchased intangible assets, net
113.2 
33.9 
In-process research and development (IPR&D) [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
49.0 
 
Technologies and patents [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
604.8 
567.7 
Finite-lived intangible assets, accumulated amortization
(501.9)
(491.8)
Finite-lived intangible assets, impairments and other charges
(49.9)
(49.9)
Finite-lived intangible assets, net
53.0 
26.0 
Customer contracts, support agreements, and related relationships [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
83.4 
78.1 
Finite-lived intangible assets, accumulated amortization
(70.0)
(67.8)
Finite-lived intangible assets, impairments and other charges
(2.8)
(2.8)
Finite-lived intangible assets, net
10.6 
7.5 
Other intangible assets [Member]
 
 
Purchased Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
2.0 
1.1 
Finite-lived intangible assets, accumulated amortization
(1.4)
(0.7)
Finite-lived intangible assets, impairments and other charges
0 
0 
Finite-lived intangible assets, net
$ 0.6 
$ 0.4 
Goodwill and Purchased Intangible Assets, Finite Lived Intangible Assets by Class (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of intangible assets
$ 4,800,000 
$ 5,600,000 
$ 12,900,000 
$ 23,200,000 
Cost of Revenues [Member]
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of intangible assets
3,500,000 
4,700,000 
9,500,000 
20,200,000 
Acceleration of the end of life of certain intangible assets, finite-lived
0 
0 
0 
5,600,000 
Sales and Marketing Expense [Member]
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of intangible assets
800,000 
700,000 
2,100,000 
2,100,000 
General and Administrative Expense [Member]
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of intangible assets
500,000 
200,000 
1,300,000 
900,000 
Operating expense [Member]
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of intangible assets
$ 1,300,000 
$ 900,000 
$ 3,400,000 
$ 3,000,000 
Goodwill and Purchased Intangible Assets, Estimated Future Amortization Expense Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
Remainder of 2016
$ 3.3 
2017
12.5 
2018
10.4 
2019
10.2 
2020
10.1 
Thereafter
17.7 
Finite-lived intangible assets, net
$ 64.2 
Other Financial Information, Inventories, Net (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Other Financial Information [Abstract]
 
 
Production materials
$ 86.8 
$ 61.9 
Finished goods
19.4 
13.1 
Inventories
$ 106.2 
$ 75.0 
Other Financial Information, Other Long Term Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 18 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2016
Junos Pulse [Member]
Sep. 30, 2015
Junos Pulse [Member]
Sep. 30, 2016
Junos Pulse [Member]
Sep. 30, 2015
Junos Pulse [Member]
Oct. 1, 2014
Junos Pulse [Member]
Apr. 1, 2017
Junos Pulse [Member]
Scenario, Forecast [Member]
Sep. 30, 2016
Prepaid expenses and other current assets [Member]
Junos Pulse [Member]
Other Financial Information [Line Items]
 
 
 
 
 
 
 
 
 
Investments in privately-held companies
$ 61.1 
$ 102.4 
 
 
 
 
 
 
 
Promissory note in connection with the sale of Junos Pulse
57.9 
132.9 
 
 
 
 
125.0 
 
75.0 
Federal income tax receivable
40.9 
28.9 
 
 
 
 
 
 
 
Deferred tax asset
20.1 
55.9 
 
 
 
 
 
 
 
Inventory
6.5 
8.4 
 
 
 
 
 
 
 
Prepaid costs, deposits, and other
52.5 
50.4 
 
 
 
 
 
 
 
Other long-term assets
239.0 
378.9 
 
 
 
 
 
 
 
Consideration
 
 
 
 
 
 
230.7 
 
 
Cash Consideration
 
 
 
 
 
 
105.7 
 
 
Working capital adjustment
 
 
 
 
 
 
19.3 
 
 
Required minimum payment due on notes receivable
 
 
 
 
 
 
 
75.0 
 
Interest income
 
 
$ 2.7 
$ 1.6 
$ 8.0 
$ 4.7 
 
 
 
Other Financial Information, Warranties (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
 
Balance as of December 31, 2015
$ 28.4 
Provisions made during the period
19.9 
Adjustments related to pre-existing warranties
(20.9)
Balance as of September 30, 2016
$ 27.4 
Other Financial Information, Deferred Revenue (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Deferred revenue:
 
 
Total deferred revenue
$ 1,304.1 
$ 1,168.1 
Reported as:
 
 
Current
918.5 
822.9 
Long-term
385.6 
345.2 
Total deferred revenue
1,304.1 
1,168.1 
Sales Revenue, Product, Net [Member]
 
 
Deferred revenue:
 
 
Undelivered product commitments and other product deferrals
250.4 
210.1 
Distributor inventory and other sell-through items
92.8 
81.8 
Deferred gross product revenue
343.2 
291.9 
Deferred cost of product revenue
(45.3)
(51.6)
Total deferred revenue
297.9 
240.3 
Reported as:
 
 
Total deferred revenue
297.9 
240.3 
Sales Revenue, Service, Net [Member]
 
 
Deferred revenue:
 
 
Total deferred revenue
1,006.2 
927.8 
Reported as:
 
 
Total deferred revenue
$ 1,006.2 
$ 927.8 
Other Financial Information, Other Income (Expense), Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Other Financial Information [Abstract]
 
 
 
 
Interest income
$ 9.1 
$ 5.7 
$ 25.5 
$ 16.3 
Interest expense
(25.1)
(21.6)
(72.6)
(61.9)
Gain on investments, net
1.9 
6.0 
0.1 
6.8 
Other
0.7 
1.5 
(0.2)
(2.5)
Other expense, net
$ (13.4)
$ (8.4)
$ (47.2)
$ (41.3)
Debt and Financing (Details) (USD $)
9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Fixed Rate Note Due 2019 [Member]
Feb. 29, 2016
Fixed Rate Note Due 2019 [Member]
Sep. 30, 2016
Fixed rate note due 2020 [Member]
Mar. 31, 2015
Fixed rate note due 2020 [Member]
Sep. 30, 2016
Fixed rate note due 2020 [Member]
One Month Prior to Maturity [Member]
Sep. 30, 2016
Fixed rate note due 2020 [Member]
Three Months Prior to Maturity [Member]
Treasury Rate [Member]
Sep. 30, 2016
Fixed rate note due 2020 [Member]
On or After May 15, 2020 [Member]
Sep. 30, 2016
Fixed rate note due 2021 [Member]
Mar. 31, 2011
Fixed rate note due 2021 [Member]
Sep. 30, 2016
Fixed Rate Note Due 2024, Issued March 2014 [Member]
Mar. 31, 2014
Fixed Rate Note Due 2024, Issued March 2014 [Member]
Sep. 30, 2016
Fixed Rate Note Due 2024, Issued February 2016 [Member]
Feb. 29, 2016
Fixed Rate Note Due 2024, Issued February 2016 [Member]
Sep. 30, 2016
Fixed rate note due 2025 [Member]
Mar. 31, 2015
Fixed rate note due 2025 [Member]
Sep. 30, 2016
Fixed rate note due 2025 [Member]
One Month Prior to Maturity [Member]
Treasury Rate [Member]
Sep. 30, 2016
Fixed rate note due 2025 [Member]
Three Months Prior to Maturity [Member]
Sep. 30, 2016
Fixed rate note due 2025 [Member]
On or After March 15, 2025 [Member]
Sep. 30, 2016
Fixed rate note due 2041 [Member]
Mar. 31, 2011
Fixed rate note due 2041 [Member]
Sep. 30, 2016
Other Fixed Rate Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, gross
$ 2,150,000,000 
$ 350,000,000 
$ 350,000,000 
$ 300,000,000 
$ 300,000,000 
 
 
 
$ 300,000,000 
$ 300,000,000 
$ 350,000,000 
$ 350,000,000 
$ 150,000,000 
$ 150,000,000 
$ 300,000,000 
$ 300,000,000 
 
 
 
$ 400,000,000 
$ 400,000,000 
 
Unaccreted discount and debt issuance costs
(16,900,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt
$ 2,133,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective interest rate
 
3.36% 
 
3.47% 
 
 
 
 
4.69% 
 
4.63% 
 
4.87% 
 
4.47% 
 
 
 
 
6.03% 
 
 
Long-term debt, stated interest rate
 
3.125% 
3.125% 
3.30% 
3.30% 
 
 
 
4.60% 
4.60% 
4.50% 
 
4.50% 
4.50% 
4.35% 
4.35% 
 
 
 
5.95% 
5.95% 
 
Redemption period
 
 
 
1 month 
 
 
 
 
 
 
 
 
 
 
3 months 
 
 
 
 
 
 
 
Redemption price
 
 
 
 
 
100.00% 
 
100.00% 
 
 
 
 
 
 
 
 
 
100.00% 
100.00% 
 
 
100.00% 
Redemption discount rate, basis spread on variable rate
 
 
 
 
 
 
0.30% 
 
 
 
 
 
 
 
 
 
0.375% 
 
 
 
 
 
Redemption percent due to change in control
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and Financing Revolving Credit Facility (Details) (Revolving Credit Facility [Member], USD $)
0 Months Ended
Jun. 27, 2014
Line of Credit Facility [Line Items]
 
Revolving credit facility limit
$ 500,000,000.0 
Revolving credit facility, additional borrowing capacity
$ 200,000,000 
Base Rate [Member] |
Minimum [Member]
 
Line of Credit Facility [Line Items]
 
Basis spread on variable rate
0.00% 
Base Rate [Member] |
Maximum [Member]
 
Line of Credit Facility [Line Items]
 
Basis spread on variable rate
0.50% 
Eurodollar [Member] |
Minimum [Member]
 
Line of Credit Facility [Line Items]
 
Basis spread on variable rate
0.90% 
Eurodollar [Member] |
Maximum [Member]
 
Line of Credit Facility [Line Items]
 
Basis spread on variable rate
1.50% 
Federal Funds Rate [Member]
 
Line of Credit Facility [Line Items]
 
Basis spread on variable rate
0.50% 
ICE Benchmark Administration Settlement Rate [Member]
 
Line of Credit Facility [Line Items]
 
Basis spread on variable rate
1.00% 
Debt and Financing Customer Financing Arrangements (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
 
 
 
Sale of receivable
$ 59.3 
$ 11.4 
$ 73.4 
$ 69.9 
 
Proceeds from sale and collection of receivables
30.0 
9.1 
40.8 
94.6 
 
Receivables from sale of receivables
$ 33.8 
 
$ 33.8 
 
$ 1.2 
Minimum [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Number of days due from receivable
 
 
30 days 
 
 
Maximum [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Number of days due from receivable
 
 
90 days 
 
 
Equity, Cash Dividends on Shares of Common Stock (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended
Jul. 26, 2016
Apr. 28, 2016
Jan. 27, 2016
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Stockholders' Equity Note [Abstract]
 
 
 
 
 
 
 
Cash dividends declared per common stock (in dollars per share)
$ 0.1 
$ 0.1 
$ 0.1 
$ 0.1 
$ 0.10 
$ 0.3 
$ 0.3 
Common stock dividends paid
 
 
 
 
 
$ 114.4 
 
Equity, Stock Repurchase Activities (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Jul. 31, 2015
Oct. 31, 2014
Feb. 28, 2014
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
 
 
Stock repurchase program, authorized amount
 
 
 
 
 
 
$ 2,100,000,000 
Stock repurchased for tax withholding (in shares)
0.1 
0.1 
0.5 
0.3 
 
 
 
Stock repurchased for tax withholdings (in dollars per share)
$ 23.37 
$ 26.75 
$ 24.47 
$ 25.50 
 
 
 
Value of shares repurchased for tax withholding
1,400,000 
2,900,000 
11,000,000 
7,600,000 
 
 
 
2014 Stock Repurchase Program [Member]
 
 
 
 
 
 
 
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
 
 
Stock repurchase program, authorized amount
 
 
 
 
3,900,000,000 
 
1,200,000,000 
Additional amount authorized under Stock Repurchase Plan
 
 
 
 
500,000,000 
1,300,000,000 
 
Stock repurchase program, remaining authorized repurchase amount
219,700,000 
 
219,700,000 
 
 
 
 
Stock repurchased and retired (in shares)
4.9 
1.8 
13.5 
42.4 
 
 
 
Common stock repurchased under stock repurchase program average purchase price (in dollars per share)
$ 23.04 
$ 28.01 
$ 23.25 
$ 24.78 
 
 
 
Common stock repurchased and retired under stock repurchase program, value
$ 112,400,000 
$ 50,000,000 
$ 312,900,000 
$ 1,050,000,000 
 
 
 
Equity, Components of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Unrealized Gains (Losses) on Available-for- Sale Securities [Member]
Sep. 30, 2016
Unrealized Gains (Losses) on Available-for- Sale Securities [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 30, 2016
Unrealized Gains (Losses) on Cash Flow Hedges [Member]
Sep. 30, 2016
Unrealized Gains (Losses) on Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 30, 2016
Foreign Currency Translation Adjustments [Member]
Sep. 30, 2016
AOCI Attributable to Parent [Member]
Dec. 31, 2015
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2015
 
 
 
 
$ 17.0 
 
$ (1.3)
 
$ (34.9)
$ (13.4)
$ (19.2)
Other comprehensive gains (losses) before reclassifications
 
 
7.9 
 
5.4 
 
3.6 
 
(1.1)
 
 
Amount reclassified from accumulated other comprehensive income
 
 
(2.1)
 
(1.1)
 
(1.0)
 
0 
 
 
Other comprehensive gains (losses), net
 
 
5.8 
 
4.3 
 
2.6 
 
(1.1)
 
 
Balance as of September 30, 2016
 
 
 
 
21.3 
 
1.3 
 
(36.0)
(13.4)
(19.2)
Other expense, net
13.4 
8.4 
47.2 
41.3 
 
1.1 
 
 
 
 
 
Research and development expense
251.8 
247.0 
750.7 
747.3 
 
 
 
0.3 
 
 
 
Sales and marketing
242.9 
235.3 
718.4 
687.9 
 
 
 
0.3 
 
 
 
Cost of revenues
$ 485.8 
$ 451.2 
$ 1,357.7 
$ 1,302.0 
 
 
 
$ 0.4 
 
 
 
Employee Benefit Plans (Details) (USD $)
3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Dec. 31, 2015
Aug. 9, 2016
Employee Stock Options, Restricted Stock Units (RSUs), Restricted Stock Awards and Performance Shares [Member]
Aurrion, Inc [Member]
Apr. 1, 2016
Restricted Stock Units (RSUs) and Performance Shares [Member]
BTI Systems, Inc [Member]
Sep. 30, 2016
Equity incentive plan 2015 [Member]
May 19, 2015
Equity incentive plan 2015 [Member]
May 19, 2015
Equity Incentive Plan 2015, 2006, and 1996 [Member]
Sep. 30, 2016
Equity Incentive Plan 2015 and 2006 [Member]
Sep. 30, 2016
Equity Incentive Plan 1996 and 2006 [Member]
Sep. 30, 2016
Employee stock purchase plan 2008 [Member]
Sep. 30, 2016
Employee Stock Purchase Plan 2008 Additional Authorization [Member]
Share-Based Compensation Plans
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares in authorized
 
 
 
 
 
 
38,000,000 
 
 
 
 
 
Maximum additional shares expire unexercised, under 1996 and 2000 plan
 
 
 
 
 
 
 
29,000,000 
 
 
 
 
Number of shares outstanding
 
 
 
 
 
 
 
 
19,500,000 
 
 
 
Number of shares available for future issuance
 
 
 
 
 
23,600,000 
 
 
 
0 
4,900,000 
 
Common stock, capital shares reserved for future issuance
 
 
 
 
 
 
 
 
 
 
26,000,000 
7,000,000 
Share-based compensation arrangement by share-based payment award, discount from market price
 
 
 
 
 
 
 
 
 
 
15.00% 
 
Periodic payroll deduction - percentage of base salary
 
 
 
 
 
 
 
 
 
 
10.00% 
 
Maximum purchase of common stock, shares
 
 
 
 
 
 
 
 
 
 
6,000 
 
Share-based compensation arrangement by share-based payment award, offering period
 
 
 
 
 
 
 
 
 
 
12 months 
 
Maximum purchase of common stock, value
 
 
 
 
 
 
 
 
 
 
$ 25,000 
 
Share-based compensation arrangement by share-based payment award, expiration period
 
 
 
 
 
 
 
 
 
 
1 year 
 
Common stock, shares, issued
380,100,000 
380,100,000 
384,000,000 
 
 
 
 
 
 
 
21,100,000 
 
Share-based compensation assumed in acquisition (in shares)
 
 
 
2,500,000 
 
 
 
 
 
 
 
 
Assumed (in shares)
 
 
 
 
400,000 
 
 
 
 
 
 
 
Outstanding stock options, restricted stock units, and restricted stock awards from awards assumed (in shares)
3,600,000 
3,600,000 
 
 
 
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period (in shares)
 
3,600,000 
 
 
 
 
 
 
 
 
 
 
Assumed in acquisitions (in shares)
 
100,000 
 
 
 
 
 
 
 
 
 
 
Exercised (in shares)
 
(400,000)
 
 
 
 
 
 
 
 
 
 
Expired (in shares)
 
(200,000)
 
 
 
 
 
 
 
 
 
 
Balance at end of period (in shares)
3,100,000 
3,100,000 
 
 
 
 
 
 
 
 
 
 
Weighted Average Exercise Price per Share
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period (in dollars per share)
 
$ 27.52 
 
 
 
 
 
 
 
 
 
 
Assumed in acquisitions (in dollars per share)
 
$ 8.42 
 
 
 
 
 
 
 
 
 
 
Exercised (in dollars per share)
 
$ 13.72 
 
 
 
 
 
 
 
 
 
 
Expired (in dollars per share)
 
$ 32.09 
 
 
 
 
 
 
 
 
 
 
Balance at end of period (in dollars per share)
$ 28.48 
$ 28.48 
 
 
 
 
 
 
 
 
 
 
Weighted average remaining contractual term at end of period
 
1 year 7 months 6 days 
 
 
 
 
 
 
 
 
 
 
Aggregate intrinsic value at end of period
9,100,000 
9,100,000 
 
 
 
 
 
 
 
 
 
 
Vested or expected-to-vest options at end of period (in shares)
3,100,000 
3,100,000 
 
 
 
 
 
 
 
 
 
 
Vested or expected-to-vest options, weighted average exercise price at end of period (in dollars per share)
$ 28.49 
$ 28.49 
 
 
 
 
 
 
 
 
 
 
Vested and expected-to-vest options, weighted average remaining contractual term at end of period
 
1 year 7 months 6 days 
 
 
 
 
 
 
 
 
 
 
Vested or expected-to-vest options, aggregate intrinsic value at end of period
9,100,000 
9,100,000 
 
 
 
 
 
 
 
 
 
 
Exercisable options at end of period (in shares)
3,000,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
Exercisable options, weighted average exercise price at end of period (in dollars per share)
$ 29.20 
$ 29.20 
 
 
 
 
 
 
 
 
 
 
Exercisable options, weighted average remaining contractual term at end of period
 
1 year 4 months 24 days 
 
 
 
 
 
 
 
 
 
 
Exercisable options, aggregate intrinsic value at end of period
7,400,000 
7,400,000 
 
 
 
 
 
 
 
 
 
 
Share price (in dollars per share)
$ 24.06 
$ 24.06 
 
 
 
 
 
 
 
 
 
 
Pre-tax intrinsic value of options exercised
$ 300,000 
$ 4,600,000 
 
 
 
 
 
 
 
 
 
 
Employee Benefit Plans, Share Based Compensation, Equity Instruments Other Than Options (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended
Jul. 26, 2016
Apr. 28, 2016
Jan. 27, 2016
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Cash dividends declared per common stock (in dollars per share)
$ 0.1 
$ 0.1 
$ 0.1 
$ 0.1 
$ 0.10 
$ 0.3 
$ 0.3 
Common stock dividends paid
 
 
 
 
 
$ 114.4 
 
Employee stock purchase plan 2008 [Member]
 
 
 
 
 
 
 
Employee Stock Purchase Plan
 
 
 
 
 
 
 
Stock issued during period, shares, employee stock purchase plans (in shares)
 
 
 
1,400,000 
1,300,000 
2,700,000 
2,700,000 
Average price of common stock, per share (in dollars per share)
 
 
 
$ 19.29 
$ 19.18 
$ 19.66 
$ 19.25 
RSUs, RSAs, and PSAs [Member]
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Balance at beginning of period (in shares)
 
 
 
 
 
18,600,000 
 
Balance at end of period (in shares)
 
 
 
20,000,000 
 
20,000,000 
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Balance at beginning of period (in dollars per share)
 
 
 
 
 
$ 22.71 
 
Balance at end of period (in dollars per share)
 
 
 
$ 23.63 
 
$ 23.63 
 
Weighted Average Remaining Contractual Term (In Years)
 
 
 
 
 
1 year 2 months 12 days 
 
Aggregate Intrinsic Value
 
 
 
$ 481.9 
 
$ 481.9 
 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
7,300,000 
 
Assumed (in shares)
 
 
 
 
 
300,000 
 
Vested (in shares)
 
 
 
 
 
(6,000,000)
 
Canceled (in shares)
 
 
 
 
 
(1,200,000)
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Granted (in dollars per share)
 
 
 
 
 
$ 24.54 
 
Assumed (in dollars per share)
 
 
 
 
 
$ 23.88 
 
Vested (in dollars per share)
 
 
 
 
 
$ 22.38 
 
Canceled (in dollars per share)
 
 
 
 
 
$ 23.04 
 
Performance shares (PSAs)
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
800,000 
 
Assumed (in shares)
 
 
 
 
 
2,200,000 
 
Vested (in shares)
 
 
 
 
 
(700,000)
 
Canceled (in shares)
 
 
 
 
 
(700,000)
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Granted (in dollars per share)
 
 
 
 
 
$ 23.51 
 
Assumed (in dollars per share)
 
 
 
 
 
$ 22.63 
 
Vested (in dollars per share)
 
 
 
 
 
$ 21.61 
 
Canceled (in dollars per share)
 
 
 
 
 
$ 22.59 
 
Aggregate number of shares subject to PSAs granted
 
 
 
 
 
500,000 
 
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
 
 
 
 
 
800,000 
 
Restricted stock awards (RSAs)
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Assumed (in shares)
 
 
 
 
 
300,000 
 
Vested (in shares)
 
 
 
 
 
(900,000)
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Assumed (in dollars per share)
 
 
 
 
 
$ 23.08 
 
Vested (in dollars per share)
 
 
 
 
 
$ 20.66 
 
Employee Benefit Plans, Assumptions and Resulting Estimates of Fair Value (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
ESPP [Member]
 
 
 
 
Estimates of Fair Value
 
 
 
 
Volatility
29.00% 
26.00% 
32.00% 
29.00% 
Risk-free interest rate
0.40% 
0.20% 
0.40% 
0.10% 
Expected life (years)
6 months 
6 months 
6 months 
6 months 
Dividend yield
1.80% 
1.40% 
1.70% 
1.70% 
Weighted-average fair value per share (in dollars per share)
$ 5.20 
$ 6.20 
$ 5.56 
$ 5.63 
Market-based RSUs [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Granted (in shares)
0 
0 
 
 
Estimates of Fair Value
 
 
 
 
Volatility
 
 
36.00% 
34.00% 
Risk-free interest rate
 
 
1.20% 
1.40% 
Dividend yield
 
 
1.70% 
1.80% 
Weighted-average fair value per share (in dollars per share)
 
 
$ 14.71 
$ 14.97 
Stock Options [Member]
 
 
 
 
Estimates of Fair Value
 
 
 
 
Volatility
31.00% 
 
31.00% 
 
Risk-free interest rate
0.60% 
 
0.60% 
 
Expected life (years)
1 year 2 months 12 days 
 
1 year 2 months 12 days 
 
Dividend yield
1.70% 
 
1.70% 
 
Weighted-average fair value per share (in dollars per share)
$ 14.21 
 
$ 14.21 
 
Employee Benefit Plans, Share Based Compensation by Cost and Expense Categories (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
$ 55.6 
$ 56.5 
$ 163.0 
$ 161.3 
Stock Options [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
1.5 
1.5 
3.7 
5.2 
RSUs, RSAs, and PSAs [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
50.3 
52.4 
147.6 
146.3 
ESPP [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
3.8 
2.6 
11.7 
9.8 
Cost of Revenues, Product [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
1.5 
1.3 
4.9 
4.5 
Cost of Revenues, Service [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
3.5 
3.2 
11.3 
10.4 
Research and Development [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
27.2 
31.0 
89.0 
94.1 
Sales and Marketing [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
17.5 
13.0 
40.7 
32.2 
General and Administrative [Member]
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
$ 5.9 
$ 8.0 
$ 17.1 
$ 20.1 
Employee Benefit Plans, Share Based Compensation by Share Based Payment Award Types (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Stock Options [Member]
 
Unrecognized Compensation Cost [Abstract]
 
Unrecognized Compensation Cost
$ 2.2 
Weighted Average Period (In Years)
2 years 1 month 6 days 
RSUs, RSAs, and PSAs [Member]
 
Unrecognized Compensation Cost [Abstract]
 
Unrecognized Compensation Cost
$ 262.5 
Weighted Average Period (In Years)
1 year 8 months 12 days 
Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
segment
Sep. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Number of reportable segments
 
 
1 
 
Total net revenues
$ 1,285.3 
$ 1,248.6 
$ 3,604.5 
$ 3,538.2 
Routing [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
620.2 
604.4 
1,699.0 
1,711.6 
Switching [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
222.5 
201.4 
607.2 
558.1 
Security [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
85.5 
119.6 
237.1 
319.5 
Total product [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
928.2 
925.4 
2,543.3 
2,589.2 
Total service [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
$ 357.1 
$ 323.2 
$ 1,061.2 
$ 949.0 
Segments, Geographical (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
Total net revenues
$ 1,285.3 
$ 1,248.6 
$ 3,604.5 
$ 3,538.2 
 
Property and equipment, net and purchased intangible assets, net
1,180.2 
 
1,180.2 
 
1,054.9 
United States [Member]
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
Total net revenues
684.6 
665.6 
1,924.9 
1,869.7 
 
Property and equipment, net and purchased intangible assets, net
1,031.6 
 
1,031.6 
 
925.5 
Other [Member]
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
Total net revenues
60.4 
47.2 
168.3 
167.9 
 
Americas [Member]
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
Total net revenues
745.0 
712.8 
2,093.2 
2,037.6 
 
EMEA [Member]
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
Total net revenues
338.0 
355.0 
923.5 
975.1 
 
Asia Pacific [Member]
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
Total net revenues
202.3 
180.8 
587.8 
525.5 
 
International [Member]
 
 
 
 
 
Net Revenues by Geographic Region [Line Items]
 
 
 
 
 
Property and equipment, net and purchased intangible assets, net
$ 148.6 
 
$ 148.6 
 
$ 129.4 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
State and Local Jurisdiction [Member]
California Franchise Tax Board [Member]
Dec. 31, 2009
Foreign Country [Member]
Sep. 30, 2016
Maximum [Member]
Income Tax Contingency [Line Items]
 
 
 
 
 
 
 
Effective income tax rate
27.10% 
20.80% 
27.20% 
26.30% 
 
 
 
Effective income tax rate reconciliation, at federal statutory income tax rate
35.00% 
35.00% 
35.00% 
35.00% 
 
 
 
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
 
 
 
 
Cost-sharing adjustment
$ 0 
$ (13.2)
$ 0 
$ (13.2)
 
 
 
Gain and losses on investments in privately-held companies
0.7 
0 
(0.5)
0 
 
 
 
Restructuring charges
(0.3)
0 
(0.3)
0 
 
 
 
Acquisition-related charges
(0.7)
0 
(3.8)
0 
 
 
 
Unrecognized tax benefits
220.4 
 
220.4 
 
 
 
 
Unrecognized tax benefits that would impact effective tax rate
190.7 
 
190.7 
 
 
 
 
Decrease in unrecognized tax benefit due to closure of audit
 
 
 
 
14.3 
 
 
Greater than remote likelihood decrease in gross unrecognized tax benefits within next 12 months
 
 
 
 
 
 
5.4 
Interest and penalties recorded
 
 
 
 
 
$ 4.6 
 
Net Income Per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Numerator
 
 
 
 
Net income
$ 172.4 
$ 197.7 
$ 403.8 
$ 435.9 
Denominator
 
 
 
 
Weighted-average shares used to compute basic net income per share (in shares)
381.0 
382.8 
382.3 
393.2 
Dilutive effect of employee stock awards (in shares)
3.5 
6.4 
5.6 
8.0 
Weighted-average shares used to compute diluted net income per share (in shares)
384.5 
389.2 
387.9 
401.2 
Net income per share:
 
 
 
 
Basic, in dollars per share
$ 0.45 
$ 0.52 
$ 1.06 
$ 1.11 
Diluted, in dollars per share
$ 0.45 
$ 0.51 
$ 1.04 
$ 1.09 
Net Income per Share Textuals
 
 
 
 
Potential anti-dilutive shares (in shares)
2.7 
3.1 
2.7 
3.7 
Commitments and Contingencies (Details) (USD $)
0 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended
Jul. 10, 2015
sqft
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Jul. 10, 2015
Sep. 30, 2016
Construction in Progress [Member]
Dec. 31, 2015
Construction in Progress [Member]
Sep. 30, 2016
Assets Held under build-to-suit lease [Member]
Sep. 30, 2016
Fixed Rate Note Due 2019 [Member]
Feb. 29, 2016
Fixed Rate Note Due 2019 [Member]
Sep. 30, 2016
Fixed rate note due 2020 [Member]
Mar. 31, 2015
Fixed rate note due 2020 [Member]
Sep. 30, 2016
Fixed rate note due 2021 [Member]
Mar. 31, 2011
Fixed rate note due 2021 [Member]
Sep. 30, 2016
Fixed rate note due 2024 [Member]
Sep. 30, 2016
Fixed rate note due 2025 [Member]
Mar. 31, 2015
Fixed rate note due 2025 [Member]
Sep. 30, 2016
Fixed rate note due 2041 [Member]
Mar. 31, 2011
Fixed rate note due 2041 [Member]
Jul. 10, 2015
Minimum [Member]
Jul. 10, 2015
Maximum [Member]
Summarization of principal contractual obligations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future minimum payments under the non-cancelable operating leases
 
$ 121,900,000 
 
$ 121,900,000 
 
 
$ 116,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rent expense
 
9,600,000 
10,800,000 
29,200,000 
33,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lease term, option to extend
20 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increment for lease extension
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
10 years 
Square feet of leased space
63,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of lease
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenant allowance
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenant Reimbursements
 
4,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
 
1,067,000,000 
 
1,067,000,000 
 
1,021,000,000 
 
 
45,600,000 
60,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Addition to build-to-suit asset
 
 
 
 
 
 
 
15,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total purchase commitments
 
592,700,000 
 
592,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for estimated carrying charges or obsolete materials charges
 
15,900,000 
 
15,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, carrying value
 
2,133,100,000 
 
2,133,100,000 
 
1,637,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, gross
 
2,150,000,000 
 
2,150,000,000 
 
 
 
 
 
 
350,000,000 
350,000,000 
300,000,000 
300,000,000 
300,000,000 
300,000,000 
500,000,000 
300,000,000 
300,000,000 
400,000,000 
400,000,000 
 
 
Short-term and Long-term debt, stated interest rate
 
 
 
 
 
 
 
 
 
 
3.125% 
3.125% 
3.30% 
3.30% 
4.60% 
4.60% 
4.50% 
4.35% 
4.35% 
5.95% 
5.95% 
 
 
Long-term income taxes payable
 
$ 205,100,000 
 
$ 205,100,000 
 
$ 187,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies, Guarantees (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Financing guarantees, bank guarantees, and standby letters of credit [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 6.5 
$ 15.8 
Other Current Liabilities [Member] |
Indemnification Agreement [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 30.5 
 
Subsequent Events (Details)
0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended
Jul. 26, 2016
Apr. 28, 2016
Jan. 27, 2016
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Oct. 25, 2016
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
Cash dividends declared per common stock (in dollars per share)
$ 0.1 
$ 0.1 
$ 0.1 
$ 0.1 
$ 0.10 
$ 0.3 
$ 0.3 
$ 0.1