JUNIPER NETWORKS INC, 10-Q filed on 11/7/2017
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2017
Nov. 3, 2017
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, 2017 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q3 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
374,928,303 
Condensed Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Net revenues:
 
 
 
 
Product
$ 869.7 
$ 928.2 
$ 2,615.8 
$ 2,543.3 
Service
388.1 
357.1 
1,171.9 
1,061.2 
Total net revenues
1,257.8 
1,285.3 
3,787.7 
3,604.5 
Cost of revenues:
 
 
 
 
Product
336.0 
349.6 
1,026.4 
955.8 
Service
149.4 
136.2 
440.4 
401.9 
Total cost of revenues
485.4 
485.8 
1,466.8 
1,357.7 
Gross margin
772.4 
799.5 
2,320.9 
2,246.8 
Operating expenses:
 
 
 
 
Research and development
236.4 
251.8 
752.8 
750.7 
Sales and marketing
232.5 
242.9 
716.6 
718.4 
General and administrative
70.6 
54.0 
176.7 
172.0 
Restructuring charges
2.0 
0.8 
29.4 
3.2 
Total operating expenses
541.5 
549.5 
1,675.5 
1,644.3 
Operating income
230.9 
250.0 
645.4 
602.5 
Other expense, net
(5.1)
(13.4)
(33.8)
(47.2)
Income before income taxes
225.8 
236.6 
611.6 
555.3 
Income tax provision
60.1 
64.2 
157.3 
151.5 
Net income
$ 165.7 
$ 172.4 
$ 454.3 
$ 403.8 
Net income per share:
 
 
 
 
Basic (in dollars per share)
$ 0.44 
$ 0.45 
$ 1.20 
$ 1.06 
Diluted, (in dollars per share)
$ 0.43 
$ 0.45 
$ 1.18 
$ 1.04 
Shares used in computing net income per share:
 
 
 
 
Basic (in shares)
378.3 
381.0 
380.0 
382.3 
Diluted (in shares)
382.7 
384.5 
386.5 
387.9 
Cash dividends declared per common stock (in dollars per share)
$ 0.10 
$ 0.10 
$ 0.30 
$ 0.30 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 165.7 
$ 172.4 
$ 454.3 
$ 403.8 
Available-for-sale securities:
 
 
 
 
Unrealized (losses) gains net of tax benefits of $0.5 and $0.2 during the three and nine months ended September 30, 2017, respectively, and tax provision of $0.3 and benefit of $0.4 for the corresponding periods of the fiscal year ended December 31, 2016 (fiscal 2016), respectively
(0.2)
(0.6)
1.4 
5.4 
Reclassification adjustment for realized net gains included in net income, net of tax provision of $0.9 during both the three and nine months ended September 2017, respectively, and net of tax provisions of zero and $0.5 for the corresponding periods of fiscal 2016, respectively
(1.9)
(0.3)
(2.0)
(1.1)
Net change on available-for-sale securities, net of taxes
(2.1)
(0.9)
(0.6)
4.3 
Cash flow hedges:
 
 
 
 
Unrealized gains (loss) net of tax provisions of $0.5 and $3.0, for the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.6 and $1.2 for the corresponding periods of fiscal 2016, respectively
6.3 
(0.3)
14.6 
3.6 
Reclassification adjustment for realized net gains included in net income, net of tax provisions of $0.8 and $1.7 during the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.3 and $0.4 for the corresponding periods of fiscal 2016, respectively
(2.5)
(0.9)
(2.4)
(1.0)
Net change on cash flow hedges, net of taxes
3.8 
(1.2)
12.2 
2.6 
Change in foreign currency translation adjustments
8.4 
(6.9)
19.3 
(1.1)
Other comprehensive income (loss), net of taxes
10.1 
(9.0)
30.9 
5.8 
Comprehensive income
$ 175.8 
$ 163.4 
$ 485.2 
$ 409.6 
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Unrealized (losses) gains net of tax benefits of $0.5 and $0.2 during the three and nine months ended September 30, 2017, respectively, and tax provision of $0.3 and benefit of $0.4 for the corresponding periods of the fiscal year ended December 31, 2016 (fiscal 2016), respectively
$ 0.5 
$ (0.3)
$ 0.2 
$ 0.4 
Reclassification adjustment for realized net gains included in net income, net of tax provision of $0.9 during both the three and nine months ended September 2017, respectively, and net of tax provisions of zero and $0.5 for the corresponding periods of fiscal 2016, respectively
0.9 
0 
0.9 
0.5 
Unrealized gains (loss) net of tax provisions of $0.5 and $3.0, for the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.6 and $1.2 for the corresponding periods of fiscal 2016, respectively
(0.5)
(0.6)
(3.0)
(1.2)
Reclassification adjustment for realized net gains included in net income, net of tax provisions of $0.8 and $1.7 during the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.3 and $0.4 for the corresponding periods of fiscal 2016, respectively
$ 0.8 
$ 0.3 
$ 1.7 
$ 0.4 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 2,363.7 
$ 1,833.2 
Short-term investments
922.0 
752.3 
Accounts receivable, net of allowances
724.3 
1,054.1 
Prepaid expenses and other current assets
273.3 
332.3 
Total current assets
4,283.3 
3,971.9 
Property and equipment, net
1,007.5 
1,063.8 
Long-term investments
913.6 
1,071.8 
Restricted cash and investments
64.9 
99.9 
Purchased intangible assets, net
133.0 
130.2 
Goodwill
3,096.2 
3,081.7 
Other long-term assets
245.8 
237.2 
Total assets
9,744.3 
9,656.5 
Current liabilities:
 
 
Accounts payable
205.4 
221.0 
Accrued compensation
166.2 
233.6 
Deferred revenue
977.4 
1,032.0 
Other accrued liabilities
236.3 
249.3 
Total current liabilities
1,585.3 
1,735.9 
Long-term debt
2,135.7 
2,133.7 
Long-term deferred revenue
485.5 
449.1 
Long-term income taxes payable
224.0 
209.2 
Other long-term liabilities
155.7 
166.1 
Total liabilities
4,586.2 
4,694.0 
Commitments and contingencies (Note 16)
   
   
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; 377.2 shares and 381.1 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively
0 
0 
Additional paid-in capital
8,211.0 
8,281.6 
Accumulated other comprehensive loss
(6.4)
(37.3)
Accumulated deficit
(3,046.5)
(3,281.8)
Total stockholders' equity
5,158.1 
4,962.5 
Total liabilities and stockholders' equity
$ 9,744.3 
$ 9,656.5 
Condensed Consolidated Balance Sheets (Parentheticals) (Unaudited) (USD $)
Sep. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]
 
 
Convertible preferred stock - par value (in dollars per share)
$ 0.00001 
$ 0.00001 
Convertible preferred stock - shares authorized (shares)
10,000,000 
10,000,000 
Convertible preferred stock - issued (shares)
0 
0 
Convertible preferred stock - outstanding (shares)
0 
0 
Common stock - par value (in dollars per share)
$ 0.00001 
$ 0.00001 
Common stock - shares authorized (shares)
1,000,000,000 
1,000,000,000 
Common stock - issued (shares)
377,200,000 
381,100,000 
Common stock - outstanding (shares)
377,200,000 
381,100,000 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:
 
 
Net income
$ 454.3 
$ 403.8 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Share-based compensation expense
151.1 
162.1 
Depreciation, amortization, and accretion
169.7 
151.9 
(Gain) loss on investments and disposal of fixed assets, net
(6.7)
1.6 
Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
Accounts receivable, net
331.9 
36.6 
Prepaid expenses and other assets
51.2 
(22.2)
Accounts payable
(11.5)
52.1 
Accrued compensation
(60.6)
(77.0)
Income taxes payable
8.8 
(7.5)
Other accrued liabilities
(21.1)
(49.8)
Deferred revenue
(21.2)
124.7 
Net cash provided by operating activities
1,045.9 
776.3 
Cash flows from investing activities:
 
 
Purchases of property and equipment
(97.6)
(162.9)
Purchases of available-for-sale investments
(1,298.6)
(1,251.9)
Proceeds from sales of available-for-sale investments
761.2 
985.1 
Proceeds from maturities and redemptions of available-for-sale investments
521.3 
232.4 
Proceeds from Pulse note receivable
75.0 
0 
Purchases of privately-held investments
(9.8)
(17.1)
Proceeds from sales of privately-held investments
1.3 
9.5 
Purchases of trading investments
(3.9)
(4.3)
Payments for business acquisitions, net of cash and cash equivalents acquired
(33.0)
(96.7)
Changes in restricted cash
0 
(2.4)
Net cash used in investing activities
(84.1)
(308.3)
Cash flows from financing activities:
 
 
Purchases and retirement of common stock
(395.5)
(323.9)
Proceeds from issuance of common stock
64.4 
59.7 
Payment of cash dividends
(113.5)
(114.4)
Payment of debt
0 
(300.0)
Issuance of debt, net
0 
494.0 
Payment of financing obligations
0 
15.5 
Net cash used in financing activities
(444.6)
(200.1)
Effect of foreign currency exchange rates on cash and cash equivalents
13.3 
0.2 
Net increase in cash and cash equivalents
530.5 
268.1 
Cash and cash equivalents at beginning of period
1,833.2 
1,420.9 
Cash and cash equivalents at end of period
$ 2,363.7 
$ 1,689.0 
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 U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Balance Sheet as of December 31, 2016, has been derived from the audited Consolidated Financial Statements at that date. 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, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any future period.

The information included in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 (the "Form 10-K").

Excess tax benefits from share-based compensation in prior periods have been reclassified to conform to the current-period presentation in the Condensed Consolidated Statements of Cash Flows upon adoption of the accounting standard described in Note 2, Summary of Significant Accounting Policies. In addition, certain other amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current-period presentation.

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

Except for the change in certain policies related to share-based compensation upon adoption of the accounting standard described below, 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 Form 10-K.

Recently Adopted Accounting Standard

On January 1, 2017, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting, 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. The impact of the adoption on the Company's Condensed Consolidated Financial Statements was as follows:

•
Forfeitures: The Company elected to account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect adjustment of $9.0 million, which increased the January 1, 2017 opening accumulated deficit balance on the Condensed Consolidated Balance Sheets.
•
Income tax accounting: The Company is also required to record excess tax benefits and tax deficiencies related to stock- based compensation as income tax benefit or expense in the statement of operations prospectively when share-based awards vest or are settled. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in no impact to the January 1, 2017 opening accumulated deficit balance as previously unrecognized excess tax effects were fully offset by a valuation allowance.

•
Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the excess tax benefits from share-based compensation as a financing activity. For the nine months ended September 30, 2016, the Company reclassified $5.8 million of excess tax benefits from share-based compensation to operating activities from financing activities.

Recent Accounting Standards Not Yet Effective

In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements.

In May 2017, the FASB issued ASU No. 2017-09 (Topic 718) Compensation—Stock Compensation: Scope of Modification Accounting, which provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new standard is effective on a prospective basis for interim and annual periods beginning after December 15, 2017, with early adoption permitted.

In March 2017, the FASB issued ASU No. 2017-08 Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The ASU will not impact debt securities held at a discount. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods, and is to be applied on a modified retrospective basis with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements.

In February 2017, the FASB issued ASU No. 2017-05 Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends guidance on how entities account for the derecognition of a nonfinancial asset or an in substance nonfinancial asset that is not a business. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and is to be applied on either a retrospective or modified retrospective basis with early adoption permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements.

In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation.  Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017.

In January 2017, the FASB issued ASU No. 2017-01 (Topic 805) Business Combinations: Clarifying the Definition of a Business, which clarifies the definition of a business and assists entities with evaluating when a set of transferred assets and activities is a business. This ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted and will be applied on a prospective basis.

In November 2016, the FASB issued ASU No. 2016-18 (Topic 230) Statement of Cash Flow: Restricted Cash, which provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The amendments of this ASU are effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The standard must be applied retrospectively to all periods presented. The adoption of this standard will not have a material impact on the cash flow activity presented on the Company's Consolidated Statements of Cash Flows.

In October 2016, the FASB issued ASU No. 2016-16 (Topic 740) Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for annual and interim reporting periods beginning after December 15, 2017 and is to be applied on a modified retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements.

In August 2016, the FASB issued ASU No. 2016-15 (Topic 230) Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments, which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This pronouncement is effective for interim and annual reporting periods beginning after December 15, 2017 and will be applied on a retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Company's Consolidated Statements of Cash Flows.

In June 2016, the FASB issued ASU No. 2016-13 (Topic 326) Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which provides 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. 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, which requires recognition of lease assets and lease liabilities on the balance sheet by lessees for leases classified as operating leases with a lease term of more than twelve months. This ASU 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 of adoption of this standard and has commenced the assessment phase to determine the approach for implementing this standard. The adoption of this standard is expected to have a material impact on the Company's Consolidated Balance Sheets and disclosures. The Company is still evaluating the impact this standard will have on the Consolidated Statements of Operations.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which changes how entities measure equity investments and present changes in the fair value of financial liabilities measured under the fair value option. The guidance also updates certain presentation and disclosure requirements. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This ASU is to be applied on a prospective basis for amendments related to equity securities without readily determinable fair values, and all other amendments in this standard will be applied on a modified retrospective basis. For equity securities without readily determinable fair values, we expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. The Company does not anticipate that the adoption of the amendments that will be applied on a modified retrospective basis will have a material impact on the Consolidated Financial Statements.
 
In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers and several amendments thereafter (“ASU 2014-09”), which provides guidance for revenue recognition that will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. The core principle for ASU 2014-09 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. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017.

The Company intends to adopt ASU 2014-09 on January 1, 2018 retrospectively, applying the amendments to each prior reporting period presented and currently remains on schedule with its implementation and the preparation of its prior-period financial statements.

Upon adoption, the Company expects a material impact to the opening balance sheet as of January 1, 2016 related to the cumulative effect of adopting this standard, primarily due to the application of the new guidance in the areas of distributor sales, software revenue, contract acquisition costs, variable consideration, and revenue allocation. The Company continues to assess the impact of ASU 2014-09 including any changes to systems, processes, and the control environment as it works through the adoption in 2017, and there remain areas still to be fully concluded upon. In addition, there are ongoing interpretive reviews, which may alter the Company's conclusions on key accounting assessments and the financial impact of ASU 2014-09 on the Company's Consolidated Financial Statements. For further information, refer to Note 2, Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K.
Business Combinations
Business Combinations
Business Combinations

On September 18, 2017, the Company acquired 100% of Cyphort, Inc. ("Cyphort") for $33.5 million of cash. The acquisition of Cyphort, a software company providing security analytics for advanced threat defense, is expected to strengthen Juniper's security product portfolio.

The following table summarizes the estimated fair value of the assets acquired at the acquisition date (in millions, except years):
 
Amount
Net tangible assets
$
1.4

Existing technology intangible asset(*)
15.4

Goodwill
16.7

   Total
$
33.5

 ________________________________
(*) Weighted average estimated useful life of 5 years.

Under the terms of the acquisition agreement with Cyphort, the Company assumed certain share-based awards for continuing employees, which were granted in contemplation of future services. The fair value of these share-based awards was $3.8 million, which will be expensed as share-based compensation over the remaining service period.

Acquisition-related costs were not material during the three and nine months ended September 30, 2017 and were expensed in the period incurred within general and administrative expense in the Company's Condensed Consolidated Statements of Operations.

The operating results of this business combination from the date of acquisition were not material to the Company's consolidated balance sheets and results of operations. Pro forma results of operations for this acquisition have not been presented, as the financial impact to the Company's consolidated results of operations is not material. The primary areas of the preliminary purchase price allocation that are subject to change relate to certain legal and income tax matters.
Cash Equivalents and Investments
Cash Equivalents and Investments
Cash Equivalents and Investments

Investments in Available-for-Sale and Trading Securities

The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of September 30, 2017 and December 31, 2016 (in millions):


As of September 30, 2017

As of December 31, 2016

Amortized
Cost

Gross Unrealized
Gains

Gross Unrealized
Losses

Estimated Fair
Value

Amortized
Cost

Gross Unrealized
Gains

Gross Unrealized
Losses

Estimated Fair
Value
Fixed income securities:















Asset-backed securities
$
288.1


$
—


$
(0.3
)

$
287.8


$
303.0


$
0.2


$
(0.2
)

$
303.0

Certificates of deposit
50.0


—


—


50.0


66.1


—


—


66.1

Commercial paper
124.0


—


—


124.0


147.7


—


—


147.7

Corporate debt securities
834.1


0.8


(0.8
)

834.1


846.5


0.4


(2.0
)

844.9

Foreign government debt securities
64.8


—


(0.1
)

64.7


34.0


—


(0.1
)

33.9

Time deposits
411.4


—


—


411.4


264.6


—


—


264.6

U.S. government agency securities
156.9


—


(0.4
)

156.5


127.0


—


(0.3
)

126.7

U.S. government securities
548.3


0.1


(0.4
)

548.0


390.7


0.1


(0.4
)

390.4

Total fixed income securities
2,477.6


0.9


(2.0
)

2,476.5


2,179.6


0.7


(3.0
)

2,177.3

Money market funds
990.7


—


—


990.7


592.2


—


—


592.2

Mutual funds
8.2


—


—


8.2


8.0


—


—


8.0

Publicly-traded equity securities
—


—


—


—


5.3


—


(0.7
)

4.6

Total available-for-sale securities
3,476.5


0.9


(2.0
)

3,475.4


2,785.1


0.7


(3.7
)

2,782.1

Trading securities in mutual funds
26.1


—


—


26.1


21.0


—


—


21.0

Total
$
3,502.6


$
0.9


$
(2.0
)

$
3,501.5


$
2,806.1


$
0.7


$
(3.7
)

$
2,803.1























Reported as:























Cash equivalents
$
1,588.8


$
—


$
—


$
1,588.8


$
907.1


$
—


$
—


$
907.1

Restricted investments
77.1


—


—


77.1


71.9


—


—


71.9

Short-term investments
922.3


0.1


(0.4
)

922.0


753.4


0.1


(1.2
)

752.3

Long-term investments
914.4


0.8


(1.6
)

913.6


1,073.7


0.6


(2.5
)

1,071.8

Total
$
3,502.6


$
0.9


$
(2.0
)

$
3,501.5


$
2,806.1


$
0.7


$
(3.7
)

$
2,803.1





The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2017 (in millions):
 
Amortized
Cost
 
Estimated Fair
Value
Due in less than one year
$
1,563.2

 
$
1,562.9

Due between one and five years
914.4

 
913.6

Total
$
2,477.6

 
$
2,476.5



The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of September 30, 2017 and December 31, 2016 (in millions):
 
As of September 30, 2017
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
224.2

 
$
(0.3
)
 
$
—

 
$
—

 
$
224.2

 
$
(0.3
)
Corporate debt securities
361.6

 
(0.5
)
 
59.5

 
(0.3
)
 
421.1

 
(0.8
)
Foreign government debt securities
36.6

 
(0.1
)
 
—

 
—

 
36.6

 
(0.1
)
U.S. government agency securities
89.0

 
(0.2
)
 
18.0

 
(0.2
)
 
107.0

 
(0.4
)
U.S. government securities
256.3

 
(0.4
)
 
1.8

 
—

 
258.1

 
(0.4
)
Total available-for-sale securities
$
967.7

 
$
(1.5
)
 
$
79.3

 
$
(0.5
)
 
$
1,047.0

 
$
(2.0
)


 
As of December 31, 2016
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
122.2

 
$
(0.2
)
 
$
—

 
$
—

 
$
122.2

 
$
(0.2
)
Corporate debt securities
470.8

 
(1.9
)
 
76.7

 
(0.1
)
 
547.5

 
(2.0
)
Foreign government debt securities
20.3

 
(0.1
)
 
—

 
—

 
20.3

 
(0.1
)
U.S. government agency securities
106.7

 
(0.3
)
 
—

 
—

 
106.7

 
(0.3
)
U.S. government securities
254.1

 
(0.4
)
 
—

 
—

 
254.1

 
(0.4
)
Total fixed income securities
974.1

 
(2.9
)
 
76.7

 
(0.1
)
 
1,050.8

 
(3.0
)
Publicly-traded equity securities
4.6

 
(0.7
)
 
—

 
—

 
4.6

 
(0.7
)
Total available-for-sale securities
$
978.7

 
$
(3.6
)
 
$
76.7

 
$
(0.1
)
 
$
1,055.4

 
$
(3.7
)


The Company had 582 and 494 investments in unrealized loss positions as of September 30, 2017 and December 31, 2016, respectively. The gross unrealized losses related to these investments were primarily due to changes in market interest rates and stock prices.

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, 2017, 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, 2017. During the three and nine months ended September 30, 2016, there were no other-than-temporary impairments associated with these investments.
During the three and nine months ended September 30, 2017 and September 30, 2016, there were no material gross realized gains or losses from either available-for-sale securities or from trading securities.

Restricted Cash and Investments

There have been no material changes to the composition of the Company's restricted cash and investments as described in Note 4, Cash Equivalents and Investments, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. The restricted investments are designated as available-for-sale securities except relating to the non-qualified deferred compensation plan which are designated as trading securities. As of September 30, 2017, total restricted cash and investments was $123.2 million, of which $58.3 million was included in prepaid expenses and other current assets and $64.9 million was included in restricted cash and investments on the Condensed Consolidated Balance Sheets.

Investments in Privately-Held Companies

As of September 30, 2017 and December 31, 2016, the carrying values of the Company's investments in privately-held companies of $72.5 million and $62.7 million, respectively, were included in other long-term assets in the Condensed Consolidated Balance Sheets. These investments include debt and redeemable preferred stock securities that are carried at fair value, and non-redeemable preferred stock and common stock securities that are carried at cost. As of September 30, 2017 and December 31, 2016, the carrying value of the investments accounted for under the cost method were $30.2 million and $19.0 million, respectively. See Note 5, Fair Value Measurements, for the Company's investments in privately-held companies that are carried at fair value.

The Company adjusts the carrying value for its investments in privately-held companies that are carried at cost for any impairment if the fair value is less than the carrying value of the respective assets on an other-than-temporary basis. There were no impairment charges for the three and nine months ended September 30, 2017. During the three and nine months ended September 30, 2016, the Company determined that certain investments in privately-held companies were other than-temporarily impaired, resulting in impairment charges of $4.5 million and $9.6 million, that were recorded within other expense, net in the Condensed Consolidated Statement of Operations.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table provides a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets (in millions):

Fair Value Measurements at
September 30, 2017 Using:



Fair Value Measurements at
December 31, 2016 Using:



Quoted Prices in
Active Markets For
Identical Assets
(Level 1)

Significant Other
Observable
Remaining Inputs
(Level 2)

Significant Other
Unobservable
Remaining Inputs
(Level 3)

Total

Quoted Prices in
Active Markets For
Identical Assets
(Level 1)

Significant Other
Observable
Remaining Inputs
(Level 2)

Significant Other
Unobservable
Remaining Inputs
(Level 3)

Total
Assets:















Available-for-sale securities:




















Asset-backed securities
$
—


$
287.8


$
—


$
287.8


$
—


$
303.0


$
—


$
303.0

Certificates of deposit
—


50.0


—


50.0


—


66.1


—


66.1

Commercial paper
—


124.0


—


124.0


—


147.7


—


147.7

Corporate debt securities
—


834.1


—


834.1


—


844.9


—


844.9

Foreign government debt securities
—


64.7


—


64.7


—


33.9


—


33.9

Money market funds
990.7


—


—


990.7


592.2


—


—


592.2

Mutual funds
8.2


—


—


8.2


8.0


—


—


8.0

Publicly-traded equity securities
—


—


—


—


4.6


—


—


4.6

Time deposits
—


411.4


—


411.4


—


264.6


—


264.6

U.S. government agency securities
—


156.5


—


156.5


—


126.7


—


126.7

U.S. government securities
343.7


204.3


—


548.0


345.0


45.4


—


390.4

Total available-for-sale securities
1,342.6


2,132.8


—


3,475.4


949.8


1,832.3


—


2,782.1

Trading securities in mutual funds
26.1


—


—


26.1


21.0


—


—


21.0

Privately-held debt and redeemable preferred stock securities
—


—


42.3


42.3


—


—


43.7


43.7

Derivative assets:























Foreign exchange contracts
—


8.5


—


8.5


—


0.9


—


0.9

Total assets measured at fair value
$
1,368.7


$
2,141.3


$
42.3


$
3,552.3


$
970.8


$
1,833.2


$
43.7


$
2,847.7

Liabilities:





















Derivative liabilities:





















Foreign exchange contracts
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)
Total liabilities measured at fair value
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)






















Total assets, reported as:





















Cash equivalents
$
947.9


$
640.9


$
—


$
1,588.8


$
549.4


$
357.7


$
—


$
907.1

Restricted investments
77.1


—


—


77.1


71.9


—


—


71.9

Short-term investments
231.9


690.1


—


922.0


178.0


574.3


—


752.3

Long-term investments
111.8


801.8


—


913.6


171.5


900.3


—


1,071.8

Prepaid expenses and other current assets
—


8.5


—


8.5


—


0.9


—


0.9

Other long-term assets
—


—


42.3


42.3


—


—


43.7


43.7

Total assets measured at fair value
$
1,368.7


$
2,141.3


$
42.3


$
3,552.3


$
970.8


$
1,833.2


$
43.7


$
2,847.7























Total liabilities, reported as:





















Other accrued liabilities
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)
Total liabilities measured at fair value
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)

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, 2017, 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 and redeemable preferred stock securities 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, 2017, there were no purchases, sales, gains, or losses related to privately-held debt and redeemable preferred stocks securities.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

As of September 30, 2017, the Company had no assets required to be measured at fair value on a nonrecurring basis. 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 materially impacting the carrying value of the investments. As of December 31, 2016, certain investments in privately-held companies with a carrying value of $1.6 million were impaired and written-down to their fair value of zero and were classified as Level 3 assets due to lack of observable inputs to determine fair value. 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. The impairment charge was recorded to other expense, net in the Condensed Consolidated Statements of Operations.

As of September 30, 2017 and December 31, 2016, the Company had no liabilities required to be 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, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. As of September 30, 2017 and December 31, 2016, the estimated fair value of the Company's long-term debt in the Condensed Consolidated Balance Sheets was $2,274.8 million and $2,215.7 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 (the “Pulse Note”), of $58.5 million and $132.9 million approximates its fair value as of September 30, 2017 and December 31, 2016. The Pulse 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 Pulse 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 are summarized as follows (in millions):
 
As of
 
September 30,
2017
 
December 31,
2016
Cash flow hedges
$
231.6

 
$
172.0

Non-designated derivatives
147.1

 
—

   Total
$
378.7

 
$
172.0



Cash Flow Hedges

The Company uses foreign currency forwards to hedge the Company's planned cost of revenues and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Execution of cash flow hedge derivatives typically occurs every month with maturities of eighteen months or less. As of September 30, 2017, an estimated $8.8 million of existing gains or losses within accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months.

The Company recognized an unrealized gain of $6.8 million and $17.6 million in accumulated other comprehensive loss for the effective portion of its derivative instruments for the three and nine months ended September 30, 2017, respectively; and unrealized gains of $0.3 million and $4.8 million for the corresponding periods of the fiscal year ended December 31, 2016, respectively. The amounts reclassified out of accumulated other comprehensive loss to cost of revenues and operating expense in the Condensed Consolidated Statements of Operations was not material during the three and nine months ended September 30, 2017 and September 30, 2016.

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, 2017 and September 30, 2016.

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

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 foreign exchange forward contracts typically have maturities of approximately one month. The outstanding non-designated derivative instruments are carried at fair value. Changes in the fair value of these derivatives recorded in other expense, net within the Condensed Consolidated Statements of Operations were not material during the three and nine months ended September 30, 2017 and September 30, 2016.
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets

Goodwill
The following table presents goodwill activity (in millions):
Balance as of December 31, 2016
$
3,081.7

Additions due to business combination
16.7

Other(*)
(2.2
)
Balance as of September 30, 2017
$
3,096.2


 ________________________________
(*) Other primarily consists of certain purchase accounting adjustments related to previously completed business combinations.
Purchased Intangible Assets

The Company’s purchased intangible assets as of September 30, 2017 and December 31, 2016, were $133.0 million and $130.2 million, respectively. The balance as of September 30, 2017 includes $15.4 million of purchased intangible assets related to the acquisition of Cyphort. See Note 3, Business Combinations, for further details.

Amortization expense was $4.1 million and $12.6 million during the three and nine months ended September 30, 2017, respectively, and $4.8 million and $12.9 million during the three and nine months ended September 30, 2016, respectively.
Other Financial Information
Other Financial Information
Other Financial Information

Inventory

Total inventory consisted of the following (in millions):
 
As of
 
September 30,
2017
 
December 31,
2016
Production and service materials
$
72.6

 
$
75.6

Finished goods
18.3

 
19.9

Inventory
$
90.9

 
$
95.5

 
 
 
 
Reported as:
 
 
 
Prepaid expenses and other current assets
$
84.9

 
$
91.4

Other long-term assets
6.0

 
4.1

Total
$
90.9

 
$
95.5



Note Receivable

In October 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.

In October 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; and
•
require a minimum payment of $75.0 million on or prior to April 1, 2017, less any principal amount previously pre-paid to the Company.

In May 2017, the Company received payment of $75.0 million and the outstanding interest due. The Company and the issuer of the Pulse Note further mutually agreed to amend the terms of the Pulse Note to, among other things:

•
extend the maturity date of the remaining outstanding amount of approximately $58.0 million from December 31, 2018 to September 30, 2022;
•
provide that interest due after April 1, 2017 can be paid in kind by increasing the outstanding principal amount of the note or paid in cash;
•
require the promissory note to be subordinated to other debt raised by the issuer; and
•
entitle the Company to additional financial considerations if the issuer of the note and its affiliates meet certain conditions.

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. No impairment charge was required for the Pulse Note as of September 30, 2017. The outstanding balance of the Pulse Note, along with the accumulated interest paid in kind, of $58.5 million as of September 30, 2017 is classified as a long-term asset based on expected collection beyond twelve months from the Condensed Consolidated Balance Sheet date.

During the three and nine months ended September 30, 2017, the interest income on the Pulse Note was $1.6 million and $6.5 million, respectively. During the three and nine months ended and September 30, 2016, the related amount of interest income recognized was $2.7 million and $8.0 million, respectively.

Warranties

Changes during the nine months ended September 30, 2017 in the Company’s warranty reserve as reported within other accrued liabilities in the Condensed Consolidated Balance Sheets were as follows (in millions):
Balance as of December 31, 2016
$
41.3

Provisions made during the period
29.6

Actual costs incurred during the period
(41.5
)
Balance as of September 30, 2017
$
29.4



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,
2017
 
December 31,
2016
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
309.3

 
$
302.4

Distributor inventory and other sell-through items
61.9

 
74.2

Deferred gross product revenue
371.2

 
376.6

Deferred cost of product revenue
(47.5
)
 
(53.7
)
Deferred product revenue, net
323.7

 
322.9

Deferred service revenue
1,139.2

 
1,158.2

Total
$
1,462.9

 
$
1,481.1

Reported as:
 
 
 
Current
$
977.4

 
$
1,032.0

Long-term
485.5

 
449.1

Total
$
1,462.9

 
$
1,481.1


Other Expense, Net

Other expense, net, consisted of the following (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Interest income
$
14.7

 
$
9.1

 
$
37.1

 
$
25.5

Interest expense
(25.3
)
 
(25.1
)
 
(75.6
)
 
(72.6
)
Gain on investments, net
4.7

 
1.9

 
6.7

 
0.1

Other
0.8

 
0.7

 
(2.0
)
 
(0.2
)
Other expense, net
$
(5.1
)
 
$
(13.4
)
 
$
(33.8
)
 
$
(47.2
)
Restructuring Charges
Restructuring Charges
Restructuring Charges

During the first quarter of 2017, the Company initiated a restructuring plan (the “2017 Restructuring Plan”) to realign its workforce and increase operational efficiencies. During the second quarter of 2017, the Company undertook certain further actions under the 2017 Restructuring Plan, resulting in additional severance and contract termination costs that were recorded to restructuring charges in the Condensed Consolidated Statement of Operations.

During the three and nine months ended September 30, 2017, the Company recorded $0.6 million and $26.0 million of severance costs, and $1.4 million and $3.4 million of contract terminations, respectively, that were recorded to restructuring charges in the Condensed Consolidated Statement of Operations. See Note 17, Subsequent Events, for discussion of the Company's restructuring activity subsequent to September 30, 2017.

Restructuring liabilities are reported within other accrued liabilities in the Condensed Consolidated Balance Sheets. The following table provides a summary of changes in the restructuring liabilities primarily related to the 2017 Restructuring Plan initiated in February 2017 (in millions):
 
December 31, 2016(*)
 
Charges
 
Cash
Payments
 

Other
 
September 30,
2017
Severance
$
0.7

 
$
26.0

 
$
(25.5
)
 
$
(0.1
)
 
$
1.1

Contract terminations and other
0.5

 
3.4

 
(0.4
)
 
0.1

 
3.6

Total
$
1.2

 
$
29.4

 
$
(25.9
)
 
$
—

 
$
4.7

 ________________________________
(*) Consists of costs in connection with a prior restructuring plan that is substantially complete.
Debt and Financing
Debt and Financing
Debt and Financing

Debt

The Company's long-term debt is summarized as follows (in millions, except percentages):
 
As of September 30, 2017
 
Amount
 
Effective Interest
Rates
Senior Notes ("Notes"):
 
 
 
3.125% fixed-rate notes, due February 2019
$
350.0

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

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

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

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

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

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

 
6.03
%
Total senior notes
2,150.0

 
 
Unaccreted discount and debt issuance costs
(14.3
)
 
 
Total
$
2,135.7

 
 

The Notes above 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. Interest on the Notes is payable in cash semiannually.

The Company may redeem, either in whole or in part, the Senior Notes due 2020 at any time on or after May 15, 2020, the Senior Notes due 2025 at any time on or after March 15, 2025, and the other Notes at any time, in each case, according to the terms of the indentures governing the Notes.

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. 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, 2017, the Company was in compliance with all covenants in the indentures governing the Notes.

Revolving Credit Facility

In June 2014, the Company entered into a Credit Agreement (“Credit Agreement”) with certain institutional lenders that provides for a $500.0 million unsecured revolving credit facility, with an option to increase the amount of the credit facility by up to an additional $200.0 million, subject to certain conditions. Revolving loans may be borrowed, repaid and reborrowed until June 27, 2019, at which time all amounts borrowed must be repaid. 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. As of September 30, 2017, the Company was in compliance with all covenants in the Credit Agreement, and no amounts were outstanding.

Financing Arrangements

The Company provides certain customers with access to extended financing arrangements that allow for 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 providers are due to the Company within 1 to 90 days from the sale of the receivable. In these transactions with the financing providers, the Company surrenders control over the transferred assets.

Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $77.3 million and $132.6 million during the three and nine months ended September 30, 2017, respectively, and $59.3 million and $73.4 million during the three and nine months ended September 30, 2016, respectively. The Company received cash proceeds from financing providers of $57.6 million and $113.3 million during the three and nine months ended September 30, 2017, respectively, and $30.0 million and $40.8 million during the three and nine months ended September 30, 2016, respectively. As of September 30, 2017 and December 31, 2016, the amounts owed by the financing providers were $32.9 million and $13.6 million, respectively, which were recorded in accounts receivable in the Condensed Consolidated Balance Sheets.
Equity
Equity
Equity

Cash Dividends on Shares of Common Stock

During the nine months ended September 30, 2017, the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017, April 25, 2017 and July 25, 2017, which was paid on March 22, 2017, June 22, 2017 and September 22, 2017, respectively, to stockholders of record on March 1, 2017, June 1, 2017, and September 1, 2017, respectively, in the aggregate amount of $113.5 million. Any future dividends, and the establishment of record and payment dates, are subject to approval by the Board of Directors (the “Board”) of the Company or an authorized committee thereof. See Note 17, Subsequent Events, for discussion of the Company's dividend declaration subsequent to September 30, 2017.

Stock Repurchase Activities

In 2014 and 2015, 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, and subsequent increases to the authorization totaling $1.8 billion (“Stock Repurchase Program”). In February 2017, the Board authorized an additional $500.0 million increase to the Stock Repurchase Program for a total of $4.4 billion.

The following table summarizes the Company's repurchases and retirements of its common stock under its Stock Repurchase Program (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Shares repurchased
5.0

 
4.9

 
13.5

 
13.5

Average price per share
$
28.16

 
$
23.04

 
$
28.85

 
$
23.25

Amount repurchased
$
140.0

 
$
112.4

 
$
390.0

 
$
312.9



As of September 30, 2017, there was $329.7 million of authorized funds remaining under the Stock Repurchase Program.

Future share repurchases under the 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 Stock Repurchase Program may be discontinued at any time. See Note 17, Subsequent Events, for discussion of the Company's stock repurchase activity subsequent to September 30, 2017.

In addition to repurchases under the Stock Repurchase Program, the Company also repurchases common stock from certain employees in connection with the net issuance of shares to satisfy minimum tax withholding obligations upon the vesting of certain stock awards issued to such employees. Repurchases associated with tax withholdings were not material during the three and nine months ended September 30, 2017. Repurchases associated with tax withholdings were $1.4 million and $11.0 million for the three and nine months ended September 30, 2016.
Accumulated Other Comprehensive Loss, Net of Tax

The components of accumulated other comprehensive loss, net of related taxes, for the nine months ended September 30, 2017 were as follows (in millions):
 
Unrealized
Gains (Losses)
on Available-for-
Sale Securities(1)
 
Unrealized
 (Losses) Gains
on Cash Flow
Hedges(2)
 
Foreign
Currency
Translation
Adjustments
 
Total
Balance as of December 31, 2016
$
16.6

 
$
(4.5
)
 
$
(49.4
)
 
$
(37.3
)
Other comprehensive gains before reclassifications
1.4

 
14.6

 
19.3

 
35.3

Amount reclassified from accumulated other comprehensive loss
(2.0
)
 
(2.4
)
 
—

 
(4.4
)
Other comprehensive (loss) gains, net
(0.6
)
 
12.2

 
19.3

 
30.9

Balance as of September 30, 2017
$
16.0

 
$
7.7

 
$
(30.1
)
 
$
(6.4
)
________________________________
(1) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on available-for-sale securities were not material, and were included in other expense, net, in the Condensed Consolidated Statements of Operations.         
(2) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on cash flow hedges were not material, and were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans

Equity Incentive Plans

The Company has stock-based compensation plans pursuant to which it has granted stock options, restricted stock units (“RSUs”), and performance share awards (“PSAs”). The Company also maintains the Company's 2008 Employee Stock Purchase Plan (the “ESPP”) for all eligible employees.

As of September 30, 2017, 35.3 million and 11.2 million shares were available for future issuance under the Company's 2015 Equity Incentive Plan (the "2015 Plan") and the ESPP, respectively, which includes an additional 23.0 million shares under the 2015 Plan and 9.0 million shares under the ESPP that were approved by the Company's stockholders in May 2017.

Stock Option Activities

The following table summarizes the Company’s stock option activity and related information as of and for the nine months ended September 30, 2017 (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, 2016
2.4

 
$
29.20

 
 
 
 
Exercised
(0.5
)
 
14.97

 
 
 
 
  Expired/Canceled
(0.8
)
 
31.09

 
 
 
 
Balance as of September 30, 2017
1.1

 
$
34.31

 
1.1
 
$
3.1

 
 
 
 
 
 
 
 
As of September 30, 2017:
 
 
 
 
 
 
 
Vested and expected-to-vest options
1.1

 
$
34.31

 
1.1
 
$
3.1

Exercisable options
1.0

 
$
35.56

 
0.8
 
$
2.1



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

The Company’s RSU, restricted stock award ("RSA"), and PSA activity and related information as of and for the nine months ended September 30, 2017 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, 2016
20.9

 
$
24.05

 
 
 
 
RSUs granted (1)(3)
6.6

 
27.56

 
 
 
 
RSUs assumed in acquisitions
0.1

 
26.91

 
 
 
 
PSAs granted (2)(3)
0.6

 
27.37

 
 
 
 
RSUs vested
(6.0
)
 
23.81

 
 
 
 
RSAs vested
(0.4
)
 
22.80

 
 
 
 
PSAs vested
(0.5
)
 
24.29

 
 
 
 
RSUs canceled
(1.5
)
 
24.57

 
 
 
 
PSAs canceled
(0.5
)
 
25.11

 
 
 
 
Balance as of September 30, 2017
19.3

 
$
25.23

 
1.1
 
$
537.1

________________________________
(1) 
Includes service-based and market-based RSUs.
(2) 
The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee of the Board are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.6 million shares.
(3) 
The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. During the nine months ended September 30, 2017, the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017, April 25, 2017, and July 25, 2017.

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 approximately 1.2 million and 2.7 million shares of common stock through the ESPP at an average exercise price of $22.79 and $20.83 per share during the three and nine months ended September 30, 2017, respectively. Employees purchased approximately 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 during the three and nine months ended September 30, 2016, respectively.

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,
 
2017
 
2016
 
2017
 
2016
Cost of revenues - Product
$
1.5

 
$
1.5

 
$
3.8

 
$
4.9

Cost of revenues - Service
3.9

 
3.5

 
13.5

 
11.3

Research and development
18.5

 
27.2

 
67.4

 
89.0

Sales and marketing
13.7

 
17.5

 
45.3

 
40.7

General and administrative
7.4

 
5.9

 
21.1

 
17.1

Total
$
45.0

 
$
55.6

 
$
151.1

 
$
163.0



The following table summarizes share-based compensation expense by award type (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Stock options
$
0.2

 
$
1.5

 
$
0.5

 
$
3.7

RSUs, RSAs, and PSAs
41.0

 
50.3

 
138.9

 
147.6

ESPP
3.8

 
3.8

 
11.7

 
11.7

Total
$
45.0

 
$
55.6

 
$
151.1

 
$
163.0



As of September 30, 2017, the unrecognized compensation cost related to unvested stock options, RSUs, RSAs, and PSAs was $309.8 million to be recognized over a weighted-average period of 1.6 years.
Segments
Segments
Segments

The Company operates in one reportable segment. Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance, accompanied by disaggregated information about net revenues by product and service, customer vertical, and geographic region as presented below.

The following table presents net revenues by product and service (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Routing
$
585.8

 
$
620.2

 
$
1,679.9

 
$
1,699.0

Switching
212.6

 
222.5

 
730.2

 
607.2

Security
71.3

 
85.5

 
205.7

 
237.1

Total product
869.7

 
928.2

 
2,615.8

 
2,543.3

 
 
 
 
 
 
 
 
Total service
388.1

 
357.1

 
1,171.9

 
1,061.2

Total
$
1,257.8

 
$
1,285.3

 
$
3,787.7

 
$
3,604.5



In the first quarter of 2017, the Company began reporting revenue on the following key customer verticals: Cloud, Telecom/Cable, and Strategic Enterprise. A summary of the types of customers included in these verticals is as follows:

•
Cloud: companies that are heavily reliant on the cloud for their business model’s success. As an example, customers in the cloud vertical can include cloud service providers as well as enterprises that provide software-as-a-service, infrastructure-as-a-service, or platform-as-a-service.

•
Telecom/Cable: includes wireline and wireless carriers and cable operators.

•
Strategic Enterprise: generally is comprised of financial services; national, federal, state, and local governments; research and educational institutions, and enterprises not represented in the Cloud vertical.

The following table presents net revenues by customer vertical (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Cloud
$
344.9

 
$
359.4

 
$
1,056.1

 
$
911.5

Telecom/Cable
576.9

 
599.4

 
1,707.8

 
1,688.5

Strategic Enterprise
336.0

 
326.5

 
1,023.8

 
1,004.5

Total
$
1,257.8

 
$
1,285.3

 
$
3,787.7

 
$
3,604.5


The Company attributes revenues to geographic region based on the customer’s shipping address. The following table presents net revenues by geographic region (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Americas:
 
 
 
 
 
 
 
United States
$
668.8

 
$
684.6

 
$
2,076.0

 
$
1,924.9

Other
60.4

 
60.4

 
165.6

 
168.3

Total Americas
729.2

 
745.0

 
2,241.6

 
2,093.2

Europe, Middle East, and Africa
298.6

 
338.0

 
871.3

 
923.5

Asia Pacific
230.0

 
202.3

 
674.8

 
587.8

Total
$
1,257.8

 
$
1,285.3

 
$
3,787.7

 
$
3,604.5

Income Taxes
Income Taxes
Income Taxes

The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Income before income taxes
$
225.8

 
$
236.6

 
$
611.6

 
$
555.3

Income tax provision
$
60.1

 
$
64.2

 
$
157.3

 
$
151.5

Effective tax rate
26.6
%
 
27.1
%
 
25.7
%
 
27.3
%

The Company's effective tax rates during the three and nine months ended September 30, 2017 and September 30, 2016, differ from the statutory rate primarily due to the benefit of the Section 199 deduction for U.S. production activities, the federal research and development credit, and earnings in foreign jurisdictions, which are subject to lower tax rates. Additionally, the Company's effective tax rates for the three and nine months ended September 30, 2017 were also impacted by the benefit from restructuring charges and excess tax benefits related to share-based compensation.

As of September 30, 2017, the total amount of gross unrecognized tax benefits was $236.7 million, of which $204.2 million, if recognized, would favorably affect the Company's effective tax rate.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of unrecognized tax benefits could decrease up to $67.0 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 balance primarily relates to matters involving U.S and non-U.S taxation of cross-border transactions and the utilization of losses.
Net Income Per Share
Net Income Per Share
Net Income per Share

The Company computed basic and diluted net income per share as follows (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income
$
165.7

 
$
172.4

 
$
454.3

 
$
403.8

Denominator:
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
378.3

 
381.0

 
380.0

 
382.3

Dilutive effect of employee stock awards
4.4

 
3.5

 
6.5

 
5.6

Weighted-average shares used to compute diluted net income per share
382.7

 
384.5

 
386.5

 
387.9

Net income per share
 
 
 
 
 
 
 
Basic
$
0.44

 
$
0.45

 
$
1.20

 
$
1.06

Diluted
$
0.43

 
$
0.45

 
$
1.18

 
$
1.04

 
 
 
 
 
 
 
 
Anti-dilutive shares
1.0

 
2.7

 
1.2

 
2.7

Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies

Commitments

Except for the items below, there have been no material changes to the Company's commitments compared to the commitments described in Note 16, Commitments and Contingencies, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K.

Clock-Signal, Supplier Component Remediation Liability

As of September 30, 2017 and December 31, 2016, the Company had approximately $0.8 million and $10.8 million, respectively, in other accrued liabilities on the Condensed Consolidated Balance Sheets for the expected remediation costs for certain products containing a defect in a clock-signal component manufactured by a third-party supplier. The Company has been advised by the component supplier that components may begin to fail after the product has been in operation for 18 months. The Company is in the process of implementing the remediation with its customers.

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, 2017 and December 31, 2016, the Company recorded $20.1 million and $28.9 million, respectively, for such indemnification obligations in other accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. During the nine months ended September 30, 2017, $15.0 million of indemnification obligations expired and were therefore released.

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 Litigations and Investigations

In addition to the investigations discussed above, the Company is involved in other investigations, disputes, litigations, and legal proceedings. 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 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.
Subsequent Events
Subsequent Events
Subsequent Events

Restructuring Activities

Subsequent to September 30, 2017, the Company amended the 2017 Restructuring Plan to further realign its workforce. The Company expects to record severance charges of approximately $23.0 million to $27.0 million related to headcount reductions in the fourth quarter of 2017.

Dividend Declaration

On October 24, 2017, the Company announced that it had declared a cash dividend of $0.10 per share of common stock payable on December 22, 2017 to stockholders of record as of the close of business on December 1, 2017.

Stock Repurchase Activities

Subsequent to September 30, 2017, through the filing of this Report, the Company repurchased 4.0 million shares of its common stock, for an aggregate purchase price of $100.0 million at an average price of $24.80 per share, under the Stock Repurchase Program. Repurchases of approximately 3.6 million shares were settled prior to the filing of this Report and the remaining shares will be settled after the filing date. The Company has an aggregate of $229.7 million of authorized funds remaining under the Stock Repurchase Program, as of the filing date.
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 U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Balance Sheet as of December 31, 2016, has been derived from the audited Consolidated Financial Statements at that date. 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, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any future period.

The information included in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 (the "Form 10-K").

Excess tax benefits from share-based compensation in prior periods have been reclassified to conform to the current-period presentation in the Condensed Consolidated Statements of Cash Flows upon adoption of the accounting standard described in Note 2, Summary of Significant Accounting Policies. In addition, certain other amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current-period presentation.

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.
Recent accounting pronouncements 
Recently Adopted Accounting Standard

On January 1, 2017, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting, 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. The impact of the adoption on the Company's Condensed Consolidated Financial Statements was as follows:

•
Forfeitures: The Company elected to account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect adjustment of $9.0 million, which increased the January 1, 2017 opening accumulated deficit balance on the Condensed Consolidated Balance Sheets.
•
Income tax accounting: The Company is also required to record excess tax benefits and tax deficiencies related to stock- based compensation as income tax benefit or expense in the statement of operations prospectively when share-based awards vest or are settled. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in no impact to the January 1, 2017 opening accumulated deficit balance as previously unrecognized excess tax effects were fully offset by a valuation allowance.

•
Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the excess tax benefits from share-based compensation as a financing activity. For the nine months ended September 30, 2016, the Company reclassified $5.8 million of excess tax benefits from share-based compensation to operating activities from financing activities.

Recent Accounting Standards Not Yet Effective

In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements.

In May 2017, the FASB issued ASU No. 2017-09 (Topic 718) Compensation—Stock Compensation: Scope of Modification Accounting, which provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new standard is effective on a prospective basis for interim and annual periods beginning after December 15, 2017, with early adoption permitted.

In March 2017, the FASB issued ASU No. 2017-08 Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The ASU will not impact debt securities held at a discount. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods, and is to be applied on a modified retrospective basis with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements.

In February 2017, the FASB issued ASU No. 2017-05 Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends guidance on how entities account for the derecognition of a nonfinancial asset or an in substance nonfinancial asset that is not a business. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and is to be applied on either a retrospective or modified retrospective basis with early adoption permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements.

In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation.  Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017.

In January 2017, the FASB issued ASU No. 2017-01 (Topic 805) Business Combinations: Clarifying the Definition of a Business, which clarifies the definition of a business and assists entities with evaluating when a set of transferred assets and activities is a business. This ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted and will be applied on a prospective basis.

In November 2016, the FASB issued ASU No. 2016-18 (Topic 230) Statement of Cash Flow: Restricted Cash, which provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The amendments of this ASU are effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The standard must be applied retrospectively to all periods presented. The adoption of this standard will not have a material impact on the cash flow activity presented on the Company's Consolidated Statements of Cash Flows.

In October 2016, the FASB issued ASU No. 2016-16 (Topic 740) Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for annual and interim reporting periods beginning after December 15, 2017 and is to be applied on a modified retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements.

In August 2016, the FASB issued ASU No. 2016-15 (Topic 230) Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments, which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This pronouncement is effective for interim and annual reporting periods beginning after December 15, 2017 and will be applied on a retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Company's Consolidated Statements of Cash Flows.

In June 2016, the FASB issued ASU No. 2016-13 (Topic 326) Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which provides 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. 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, which requires recognition of lease assets and lease liabilities on the balance sheet by lessees for leases classified as operating leases with a lease term of more than twelve months. This ASU 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 of adoption of this standard and has commenced the assessment phase to determine the approach for implementing this standard. The adoption of this standard is expected to have a material impact on the Company's Consolidated Balance Sheets and disclosures. The Company is still evaluating the impact this standard will have on the Consolidated Statements of Operations.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which changes how entities measure equity investments and present changes in the fair value of financial liabilities measured under the fair value option. The guidance also updates certain presentation and disclosure requirements. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This ASU is to be applied on a prospective basis for amendments related to equity securities without readily determinable fair values, and all other amendments in this standard will be applied on a modified retrospective basis. For equity securities without readily determinable fair values, we expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. The Company does not anticipate that the adoption of the amendments that will be applied on a modified retrospective basis will have a material impact on the Consolidated Financial Statements.
 
In May 2014, the FASB issued ASU No. 2014-09 (Topic 606)—Revenue from Contracts with Customers and several amendments thereafter (“ASU 2014-09”), which provides guidance for revenue recognition that will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. The core principle for ASU 2014-09 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. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017.

The Company intends to adopt ASU 2014-09 on January 1, 2018 retrospectively, applying the amendments to each prior reporting period presented and currently remains on schedule with its implementation and the preparation of its prior-period financial statements.

Upon adoption, the Company expects a material impact to the opening balance sheet as of January 1, 2016 related to the cumulative effect of adopting this standard, primarily due to the application of the new guidance in the areas of distributor sales, software revenue, contract acquisition costs, variable consideration, and revenue allocation. The Company continues to assess the impact of ASU 2014-09 including any changes to systems, processes, and the control environment as it works through the adoption in 2017, and there remain areas still to be fully concluded upon. In addition, there are ongoing interpretive reviews, which may alter the Company's conclusions on key accounting assessments and the financial impact of ASU 2014-09 on the Company's Consolidated Financial Statements. For further information, refer to Note 2, Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K.
Business Combinations (Tables)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the estimated fair value of the assets acquired at the acquisition date (in millions, except years):
 
Amount
Net tangible assets
$
1.4

Existing technology intangible asset(*)
15.4

Goodwill
16.7

   Total
$
33.5

 ________________________________
(*) Weighted average estimated useful life of 5 years.
Cash Equivalents and Investments (Tables)
Unrealized gains and losses and fair value of available-for-sale and trading securities 
The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of September 30, 2017 and December 31, 2016 (in millions):


As of September 30, 2017

As of December 31, 2016

Amortized
Cost

Gross Unrealized
Gains

Gross Unrealized
Losses

Estimated Fair
Value

Amortized
Cost

Gross Unrealized
Gains

Gross Unrealized
Losses

Estimated Fair
Value
Fixed income securities:















Asset-backed securities
$
288.1


$
—


$
(0.3
)

$
287.8


$
303.0


$
0.2


$
(0.2
)

$
303.0

Certificates of deposit
50.0


—


—


50.0


66.1


—


—


66.1

Commercial paper
124.0


—


—


124.0


147.7


—


—


147.7

Corporate debt securities
834.1


0.8


(0.8
)

834.1


846.5


0.4


(2.0
)

844.9

Foreign government debt securities
64.8


—


(0.1
)

64.7


34.0


—


(0.1
)

33.9

Time deposits
411.4


—


—


411.4


264.6


—


—


264.6

U.S. government agency securities
156.9


—


(0.4
)

156.5


127.0


—


(0.3
)

126.7

U.S. government securities
548.3


0.1


(0.4
)

548.0


390.7


0.1


(0.4
)

390.4

Total fixed income securities
2,477.6


0.9


(2.0
)

2,476.5


2,179.6


0.7


(3.0
)

2,177.3

Money market funds
990.7


—


—


990.7


592.2


—


—


592.2

Mutual funds
8.2


—


—


8.2


8.0


—


—


8.0

Publicly-traded equity securities
—


—


—


—


5.3


—


(0.7
)

4.6

Total available-for-sale securities
3,476.5


0.9


(2.0
)

3,475.4


2,785.1


0.7


(3.7
)

2,782.1

Trading securities in mutual funds
26.1


—


—


26.1


21.0


—


—


21.0

Total
$
3,502.6


$
0.9


$
(2.0
)

$
3,501.5


$
2,806.1


$
0.7


$
(3.7
)

$
2,803.1























Reported as:























Cash equivalents
$
1,588.8


$
—


$
—


$
1,588.8


$
907.1


$
—


$
—


$
907.1

Restricted investments
77.1


—


—


77.1


71.9


—


—


71.9

Short-term investments
922.3


0.1


(0.4
)

922.0


753.4


0.1


(1.2
)

752.3

Long-term investments
914.4


0.8


(1.6
)

913.6


1,073.7


0.6


(2.5
)

1,071.8

Total
$
3,502.6


$
0.9


$
(2.0
)

$
3,501.5


$
2,806.1


$
0.7


$
(3.7
)

$
2,803.1





Maturities of fixed income securities 
The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2017 (in millions):
 
Amortized
Cost
 
Estimated Fair
Value
Due in less than one year
$
1,563.2

 
$
1,562.9

Due between one and five years
914.4

 
913.6

Total
$
2,477.6

 
$
2,476.5

Available-for-sale securities in unrealized loss position 
The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of September 30, 2017 and December 31, 2016 (in millions):
 
As of September 30, 2017
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
224.2

 
$
(0.3
)
 
$
—

 
$
—

 
$
224.2

 
$
(0.3
)
Corporate debt securities
361.6

 
(0.5
)
 
59.5

 
(0.3
)
 
421.1

 
(0.8
)
Foreign government debt securities
36.6

 
(0.1
)
 
—

 
—

 
36.6

 
(0.1
)
U.S. government agency securities
89.0

 
(0.2
)
 
18.0

 
(0.2
)
 
107.0

 
(0.4
)
U.S. government securities
256.3

 
(0.4
)
 
1.8

 
—

 
258.1

 
(0.4
)
Total available-for-sale securities
$
967.7

 
$
(1.5
)
 
$
79.3

 
$
(0.5
)
 
$
1,047.0

 
$
(2.0
)


 
As of December 31, 2016
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
122.2

 
$
(0.2
)
 
$
—

 
$
—

 
$
122.2

 
$
(0.2
)
Corporate debt securities
470.8

 
(1.9
)
 
76.7

 
(0.1
)
 
547.5

 
(2.0
)
Foreign government debt securities
20.3

 
(0.1
)
 
—

 
—

 
20.3

 
(0.1
)
U.S. government agency securities
106.7

 
(0.3
)
 
—

 
—

 
106.7

 
(0.3
)
U.S. government securities
254.1

 
(0.4
)
 
—

 
—

 
254.1

 
(0.4
)
Total fixed income securities
974.1

 
(2.9
)
 
76.7

 
(0.1
)
 
1,050.8

 
(3.0
)
Publicly-traded equity securities
4.6

 
(0.7
)
 
—

 
—

 
4.6

 
(0.7
)
Total available-for-sale securities
$
978.7

 
$
(3.6
)
 
$
76.7

 
$
(0.1
)
 
$
1,055.4

 
$
(3.7
)


Fair Value Measurements (Tables)
Assets and liabilities measured at fair value on a recurring basis
The following table provides a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets (in millions):

Fair Value Measurements at
September 30, 2017 Using:



Fair Value Measurements at
December 31, 2016 Using:



Quoted Prices in
Active Markets For
Identical Assets
(Level 1)

Significant Other
Observable
Remaining Inputs
(Level 2)

Significant Other
Unobservable
Remaining Inputs
(Level 3)

Total

Quoted Prices in
Active Markets For
Identical Assets
(Level 1)

Significant Other
Observable
Remaining Inputs
(Level 2)

Significant Other
Unobservable
Remaining Inputs
(Level 3)

Total
Assets:















Available-for-sale securities:




















Asset-backed securities
$
—


$
287.8


$
—


$
287.8


$
—


$
303.0


$
—


$
303.0

Certificates of deposit
—


50.0


—


50.0


—


66.1


—


66.1

Commercial paper
—


124.0


—


124.0


—


147.7


—


147.7

Corporate debt securities
—


834.1


—


834.1


—


844.9


—


844.9

Foreign government debt securities
—


64.7


—


64.7


—


33.9


—


33.9

Money market funds
990.7


—


—


990.7


592.2


—


—


592.2

Mutual funds
8.2


—


—


8.2


8.0


—


—


8.0

Publicly-traded equity securities
—


—


—


—


4.6


—


—


4.6

Time deposits
—


411.4


—


411.4


—


264.6


—


264.6

U.S. government agency securities
—


156.5


—


156.5


—


126.7


—


126.7

U.S. government securities
343.7


204.3


—


548.0


345.0


45.4


—


390.4

Total available-for-sale securities
1,342.6


2,132.8


—


3,475.4


949.8


1,832.3


—


2,782.1

Trading securities in mutual funds
26.1


—


—


26.1


21.0


—


—


21.0

Privately-held debt and redeemable preferred stock securities
—


—


42.3


42.3


—


—


43.7


43.7

Derivative assets:























Foreign exchange contracts
—


8.5


—


8.5


—


0.9


—


0.9

Total assets measured at fair value
$
1,368.7


$
2,141.3


$
42.3


$
3,552.3


$
970.8


$
1,833.2


$
43.7


$
2,847.7

Liabilities:





















Derivative liabilities:





















Foreign exchange contracts
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)
Total liabilities measured at fair value
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)






















Total assets, reported as:





















Cash equivalents
$
947.9


$
640.9


$
—


$
1,588.8


$
549.4


$
357.7


$
—


$
907.1

Restricted investments
77.1


—


—


77.1


71.9


—


—


71.9

Short-term investments
231.9


690.1


—


922.0


178.0


574.3


—


752.3

Long-term investments
111.8


801.8


—


913.6


171.5


900.3


—


1,071.8

Prepaid expenses and other current assets
—


8.5


—


8.5


—


0.9


—


0.9

Other long-term assets
—


—


42.3


42.3


—


—


43.7


43.7

Total assets measured at fair value
$
1,368.7


$
2,141.3


$
42.3


$
3,552.3


$
970.8


$
1,833.2


$
43.7


$
2,847.7























Total liabilities, reported as:





















Other accrued liabilities
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)
Total liabilities measured at fair value
$
—


$
(0.6
)

$
—


$
(0.6
)

$
—


$
(4.9
)

$
—


$
(4.9
)
Derivative Instruments (Tables)
Derivative instruments
The notional amount of the Company's foreign currency derivatives are summarized as follows (in millions):
 
As of
 
September 30,
2017
 
December 31,
2016
Cash flow hedges
$
231.6

 
$
172.0

Non-designated derivatives
147.1

 
—

   Total
$
378.7

 
$
172.0

Goodwill and Purchased Intangible Assets (Tables)
Goodwill
The following table presents goodwill activity (in millions):
Balance as of December 31, 2016
$
3,081.7

Additions due to business combination
16.7

Other(*)
(2.2
)
Balance as of September 30, 2017
$
3,096.2


 ________________________________
(*) Other primarily consists of certain purchase accounting adjustments related to previously completed business combinations.
Other Financial Information (Tables)
Inventories 
Total inventory consisted of the following (in millions):
 
As of
 
September 30,
2017
 
December 31,
2016
Production and service materials
$
72.6

 
$
75.6

Finished goods
18.3

 
19.9

Inventory
$
90.9

 
$
95.5

 
 
 
 
Reported as:
 
 
 
Prepaid expenses and other current assets
$
84.9

 
$
91.4

Other long-term assets
6.0

 
4.1

Total
$
90.9

 
$
95.5

Warranties 
Changes during the nine months ended September 30, 2017 in the Company’s warranty reserve as reported within other accrued liabilities in the Condensed Consolidated Balance Sheets were as follows (in millions):
Balance as of December 31, 2016
$
41.3

Provisions made during the period
29.6

Actual costs incurred during the period
(41.5
)
Balance as of September 30, 2017
$
29.4

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,
2017
 
December 31,
2016
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
309.3

 
$
302.4

Distributor inventory and other sell-through items
61.9

 
74.2

Deferred gross product revenue
371.2

 
376.6

Deferred cost of product revenue
(47.5
)
 
(53.7
)
Deferred product revenue, net
323.7

 
322.9

Deferred service revenue
1,139.2

 
1,158.2

Total
$
1,462.9

 
$
1,481.1

Reported as:
 
 
 
Current
$
977.4

 
$
1,032.0

Long-term
485.5

 
449.1

Total
$
1,462.9

 
$
1,481.1

Other expense, net 
Other expense, net, consisted of the following (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Interest income
$
14.7

 
$
9.1

 
$
37.1

 
$
25.5

Interest expense
(25.3
)
 
(25.1
)
 
(75.6
)
 
(72.6
)
Gain on investments, net
4.7

 
1.9

 
6.7

 
0.1

Other
0.8

 
0.7

 
(2.0
)
 
(0.2
)
Other expense, net
$
(5.1
)
 
$
(13.4
)
 
$
(33.8
)
 
$
(47.2
)
Restructuring Charges (Tables)
Schedule of restructuring liabilities
Restructuring liabilities are reported within other accrued liabilities in the Condensed Consolidated Balance Sheets. The following table provides a summary of changes in the restructuring liabilities primarily related to the 2017 Restructuring Plan initiated in February 2017 (in millions):
 
December 31, 2016(*)
 
Charges
 
Cash
Payments
 

Other
 
September 30,
2017
Severance
$
0.7

 
$
26.0

 
$
(25.5
)
 
$
(0.1
)
 
$
1.1

Contract terminations and other
0.5

 
3.4

 
(0.4
)
 
0.1

 
3.6

Total
$
1.2

 
$
29.4

 
$
(25.9
)
 
$
—

 
$
4.7

 ________________________________
(*) Consists of costs in connection with a prior restructuring plan that is substantially complete.
Debt and Financing (Tables)
Long-term debt
The Company's long-term debt is summarized as follows (in millions, except percentages):
 
As of September 30, 2017
 
Amount
 
Effective Interest
Rates
Senior Notes ("Notes"):
 
 
 
3.125% fixed-rate notes, due February 2019
$
350.0

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

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

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

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

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

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

 
6.03
%
Total senior notes
2,150.0

 
 
Unaccreted discount and debt issuance costs
(14.3
)
 
 
Total
$
2,135.7

 
 

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 (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Shares repurchased
5.0

 
4.9

 
13.5

 
13.5

Average price per share
$
28.16

 
$
23.04

 
$
28.85

 
$
23.25

Amount repurchased
$
140.0

 
$
112.4

 
$
390.0

 
$
312.9

Components of accumulated other comprehensive income, net of taxes 
The components of accumulated other comprehensive loss, net of related taxes, for the nine months ended September 30, 2017 were as follows (in millions):
 
Unrealized
Gains (Losses)
on Available-for-
Sale Securities(1)
 
Unrealized
 (Losses) Gains
on Cash Flow
Hedges(2)
 
Foreign
Currency
Translation
Adjustments
 
Total
Balance as of December 31, 2016
$
16.6

 
$
(4.5
)
 
$
(49.4
)
 
$
(37.3
)
Other comprehensive gains before reclassifications
1.4

 
14.6

 
19.3

 
35.3

Amount reclassified from accumulated other comprehensive loss
(2.0
)
 
(2.4
)
 
—

 
(4.4
)
Other comprehensive (loss) gains, net
(0.6
)
 
12.2

 
19.3

 
30.9

Balance as of September 30, 2017
$
16.0

 
$
7.7

 
$
(30.1
)
 
$
(6.4
)
________________________________
(1) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on available-for-sale securities were not material, and were included in other expense, net, in the Condensed Consolidated Statements of Operations.         
(2) 
The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on cash flow hedges were not material, and were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations.
Employee Benefit Plans (Tables)
Schedule of share-based compensation, stock options, activity 
The following table summarizes the Company’s stock option activity and related information as of and for the nine months ended September 30, 2017 (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, 2016
2.4

 
$
29.20

 
 
 
 
Exercised
(0.5
)
 
14.97

 
 
 
 
  Expired/Canceled
(0.8
)
 
31.09

 
 
 
 
Balance as of September 30, 2017
1.1

 
$
34.31

 
1.1
 
$
3.1

 
 
 
 
 
 
 
 
As of September 30, 2017:
 
 
 
 
 
 
 
Vested and expected-to-vest options
1.1

 
$
34.31

 
1.1
 
$
3.1

Exercisable options
1.0

 
$
35.56

 
0.8
 
$
2.1

Schedule of nonvested share activity 
The Company’s RSU, restricted stock award ("RSA"), and PSA activity and related information as of and for the nine months ended September 30, 2017 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, 2016
20.9

 
$
24.05

 
 
 
 
RSUs granted (1)(3)
6.6

 
27.56

 
 
 
 
RSUs assumed in acquisitions
0.1

 
26.91

 
 
 
 
PSAs granted (2)(3)
0.6

 
27.37

 
 
 
 
RSUs vested
(6.0
)
 
23.81

 
 
 
 
RSAs vested
(0.4
)
 
22.80

 
 
 
 
PSAs vested
(0.5
)
 
24.29

 
 
 
 
RSUs canceled
(1.5
)
 
24.57

 
 
 
 
PSAs canceled
(0.5
)
 
25.11

 
 
 
 
Balance as of September 30, 2017
19.3

 
$
25.23

 
1.1
 
$
537.1

________________________________
(1) 
Includes service-based and market-based RSUs.
(2) 
The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee of the Board are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.6 million shares.
(3) 
The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. During the nine months ended September 30, 2017, the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017, April 25, 2017, and July 25, 2017.
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,
 
2017
 
2016
 
2017
 
2016
Cost of revenues - Product
$
1.5

 
$
1.5

 
$
3.8

 
$
4.9

Cost of revenues - Service
3.9

 
3.5

 
13.5

 
11.3

Research and development
18.5

 
27.2

 
67.4

 
89.0

Sales and marketing
13.7

 
17.5

 
45.3

 
40.7

General and administrative
7.4

 
5.9

 
21.1

 
17.1

Total
$
45.0

 
$
55.6

 
$
151.1

 
$
163.0

Disclosure of share-based compensation arrangements by share-based payment award 
The following table summarizes share-based compensation expense by award type (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Stock options
$
0.2

 
$
1.5

 
$
0.5

 
$
3.7

RSUs, RSAs, and PSAs
41.0

 
50.3

 
138.9

 
147.6

ESPP
3.8

 
3.8

 
11.7

 
11.7

Total
$
45.0

 
$
55.6

 
$
151.1

 
$
163.0

Segments (Tables)
Financial information for each segment 
The following table presents net revenues by customer vertical (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Cloud
$
344.9

 
$
359.4

 
$
1,056.1

 
$
911.5

Telecom/Cable
576.9

 
599.4

 
1,707.8

 
1,688.5

Strategic Enterprise
336.0

 
326.5

 
1,023.8

 
1,004.5

Total
$
1,257.8

 
$
1,285.3

 
$
3,787.7

 
$
3,604.5

The following table presents net revenues by product and service (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Routing
$
585.8

 
$
620.2

 
$
1,679.9

 
$
1,699.0

Switching
212.6

 
222.5

 
730.2

 
607.2

Security
71.3

 
85.5

 
205.7

 
237.1

Total product
869.7

 
928.2

 
2,615.8

 
2,543.3

 
 
 
 
 
 
 
 
Total service
388.1

 
357.1

 
1,171.9

 
1,061.2

Total
$
1,257.8

 
$
1,285.3

 
$
3,787.7

 
$
3,604.5

Net revenues by geographic region 
The Company attributes revenues to geographic region based on the customer’s shipping address. The following table presents net revenues by geographic region (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Americas:
 
 
 
 
 
 
 
United States
$
668.8

 
$
684.6

 
$
2,076.0

 
$
1,924.9

Other
60.4

 
60.4

 
165.6

 
168.3

Total Americas
729.2

 
745.0

 
2,241.6

 
2,093.2

Europe, Middle East, and Africa
298.6

 
338.0

 
871.3

 
923.5

Asia Pacific
230.0

 
202.3

 
674.8

 
587.8

Total
$
1,257.8

 
$
1,285.3

 
$
3,787.7

 
$
3,604.5

Income Taxes (Tables)
Schedule of effective income tax rate reconciliation
The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Income before income taxes
$
225.8

 
$
236.6

 
$
611.6

 
$
555.3

Income tax provision
$
60.1

 
$
64.2

 
$
157.3

 
$
151.5

Effective tax rate
26.6
%
 
27.1
%
 
25.7
%
 
27.3
%

Net Income Per Share (Tables)
Schedule of earnings per share, basic and diluted
The Company computed basic and diluted net income per share as follows (in millions, except per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income
$
165.7

 
$
172.4

 
$
454.3

 
$
403.8

Denominator:
 
 
 
 
 
 
 
Weighted-average shares used to compute basic net income per share
378.3

 
381.0

 
380.0

 
382.3

Dilutive effect of employee stock awards
4.4

 
3.5

 
6.5

 
5.6

Weighted-average shares used to compute diluted net income per share
382.7

 
384.5

 
386.5

 
387.9

Net income per share
 
 
 
 
 
 
 
Basic
$
0.44

 
$
0.45

 
$
1.20

 
$
1.06

Diluted
$
0.43

 
$
0.45

 
$
1.18

 
$
1.04

 
 
 
 
 
 
 
 
Anti-dilutive shares
1.0

 
2.7

 
1.2

 
2.7

Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2016
Accounting Standards Update 2016-09, Excess Tax Benefit Component
Jan. 1, 2017
Accounting Standards Update 2016-09, Excess Tax Benefit Component
Additional Paid-in Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Cumulative effect adjustment
 
 
 
$ 9.0 
Net cash provided by operating activities
1,045.9 
776.3 
5.8 
 
Net cash used in financing activities
$ (444.6)
$ (200.1)
$ (5.8)
 
Business Combinations - Narrative (Details) (Cyphort, USD $)
In Millions, unless otherwise specified
0 Months Ended
Sep. 18, 2017
Sep. 18, 2017
Cyphort
 
 
Business Acquisition [Line Items]
 
 
Voting interests acquired (percentage)
 
100.00% 
Fair value of grants acquired
 
$ 3.8 
Payments to acquire businesses
$ 33.5 
 
Business Combinations - Purchase Price Allocation (Details) (Cyphort, USD $)
In Millions, unless otherwise specified
0 Months Ended
Sep. 18, 2017
Sep. 18, 2017
Cyphort
 
 
Business Acquisition [Line Items]
 
 
Net tangible assets
 
$ 1.4 
Existing technology intangible asset()
 
15.4 
Goodwill, Gross
 
16.7 
Total
 
$ 33.5 
Weighted Average Estimated Useful Life (in Years)
5 years 
 
Cash Equivalents and Investments - Available-For-Sale and Trading Securities (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
$ 3,476.5 
$ 2,785.1 
Available-for-sale securities, gross unrealized gains
0.9 
0.7 
Available-for-sale securities, gross unrealized losses
(2.0)
(3.7)
Available-for-sale securities, estimated fair value
3,475.4 
2,782.1 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
3,502.6 
2,806.1 
Total investments, gross unrealized gains
0.9 
0.7 
Total investments, gross unrealized losses
(2.0)
(3.7)
Total investments, estimated fair value
3,501.5 
2,803.1 
Debt Securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
2,477.6 
2,179.6 
Available-for-sale securities, gross unrealized gains
0.9 
0.7 
Available-for-sale securities, gross unrealized losses
(2.0)
(3.0)
Available-for-sale securities, estimated fair value
2,476.5 
2,177.3 
Asset-backed securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
288.1 
303.0 
Available-for-sale securities, gross unrealized gains
0 
0.2 
Available-for-sale securities, gross unrealized losses
(0.3)
(0.2)
Available-for-sale securities, estimated fair value
287.8 
303.0 
Certificates of deposit
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
50.0 
66.1 
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
50.0 
66.1 
Commercial paper
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
124.0 
147.7 
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
124.0 
147.7 
Corporate debt securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
834.1 
846.5 
Available-for-sale securities, gross unrealized gains
0.8 
0.4 
Available-for-sale securities, gross unrealized losses
(0.8)
(2.0)
Available-for-sale securities, estimated fair value
834.1 
844.9 
Foreign government debt securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
64.8 
34.0 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
(0.1)
(0.1)
Available-for-sale securities, estimated fair value
64.7 
33.9 
Time deposits
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
411.4 
264.6 
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
411.4 
264.6 
U.S. government agency securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
156.9 
127.0 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
(0.4)
(0.3)
Available-for-sale securities, estimated fair value
156.5 
126.7 
U.S. government securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
548.3 
390.7 
Available-for-sale securities, gross unrealized gains
0.1 
0.1 
Available-for-sale securities, gross unrealized losses
(0.4)
(0.4)
Available-for-sale securities, estimated fair value
548.0 
390.4 
Mutual funds
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
8.2 
8.0 
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
8.2 
8.0 
Trading securities:
 
 
Trading securities, amortized cost
26.1 
21.0 
Gross Unrealized Gains
0 
0 
Gross Unrealized Losses
0 
0 
Trading securities, estimated fair value
26.1 
21.0 
Money market funds
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
990.7 
592.2 
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
990.7 
592.2 
Publicly-traded equity securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities, amortized cost
0 
5.3 
Available-for-sale securities, gross unrealized gains
0 
0 
Available-for-sale securities, gross unrealized losses
0 
(0.7)
Available-for-sale securities, estimated fair value
0 
4.6 
Cash equivalents
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
1,588.8 
907.1 
Total investments, gross unrealized gains
0 
0 
Total investments, gross unrealized losses
0 
0 
Total investments, estimated fair value
1,588.8 
907.1 
Restricted investments
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
77.1 
71.9 
Total investments, gross unrealized gains
0 
0 
Total investments, gross unrealized losses
0 
0 
Total investments, estimated fair value
77.1 
71.9 
Short-term investments
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
922.3 
753.4 
Total investments, gross unrealized gains
0.1 
0.1 
Total investments, gross unrealized losses
(0.4)
(1.2)
Total investments, estimated fair value
922.0 
752.3 
Long-term investments
 
 
Available-for-sale and Trading Securities [Abstract]
 
 
Total investments, amortized cost
914.4 
1,073.7 
Total investments, gross unrealized gains
0.8 
0.6 
Total investments, gross unrealized losses
(1.6)
(2.5)
Total investments, estimated fair value
$ 913.6 
$ 1,071.8 
Cash Equivalents and Investments - Maturities of Fixed Income Investments (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Schedule of Fixed Income Securities Maturities [Abstract]
 
Amortized cost due within one year
$ 1,563.2 
Amortized cost due between one and five years
914.4 
Total investments, amortized cost
2,477.6 
Estimated fair value due within one year
1,562.9 
Estimated fair value due between one and five year
913.6 
Total investments, estimated fair value
$ 2,476.5 
Cash Equivalents and Investments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Investment
Dec. 31, 2016
Investment
Sep. 30, 2017
Prepaid expenses and other current assets
Sep. 30, 2017
Restricted Cash and Investments, Noncurrent
Sep. 30, 2017
Debt Securities
Sep. 30, 2016
Debt Securities
Sep. 30, 2017
Debt Securities
Sep. 30, 2016
Debt Securities
Sep. 30, 2017
Publicly-traded equity securities
Sep. 30, 2016
Publicly-traded equity securities
Sep. 30, 2017
Publicly-traded equity securities
Sep. 30, 2016
Publicly-traded equity securities
Sep. 30, 2017
Certain Investments In Privately-Held Companies
Sep. 30, 2016
Certain Investments In Privately-Held Companies
Sep. 30, 2017
Certain Investments In Privately-Held Companies
Sep. 30, 2016
Certain Investments In Privately-Held Companies
Cash Equivalents and Investments [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investments in unrealized loss position
582 
494 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted Cash and Cash Equivalents Items [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTTI
 
 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
 
Restricted cash and investments
123.2 
 
58.3 
64.9 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in privately-held companies
72.5 
62.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost method investment
30.2 
19.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of privately-held investment
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 4.5 
$ 0 
$ 9.6 
Cash Equivalents and Investments - Unrealized Loss on Available-for-Sale Securities (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
$ 978.7 
Unrealized loss, less than 12 months
 
(3.6)
Fair value, 12 months or greater
 
76.7 
Unrealized loss, 12 months or greater
 
(0.1)
Total fair value, available-for-sale investments in continuous unrealized loss position
 
1,055.4 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
(3.7)
Debt Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
967.7 
974.1 
Unrealized loss, less than 12 months
(1.5)
(2.9)
Fair value, 12 months or greater
79.3 
76.7 
Unrealized loss, 12 months or greater
(0.5)
(0.1)
Total fair value, available-for-sale investments in continuous unrealized loss position
1,047.0 
1,050.8 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(2.0)
(3.0)
Asset-backed securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
224.2 
122.2 
Unrealized loss, less than 12 months
(0.3)
(0.2)
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
224.2 
122.2 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.3)
(0.2)
Corporate debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
361.6 
470.8 
Unrealized loss, less than 12 months
(0.5)
(1.9)
Fair value, 12 months or greater
59.5 
76.7 
Unrealized loss, 12 months or greater
(0.3)
(0.1)
Total fair value, available-for-sale investments in continuous unrealized loss position
421.1 
547.5 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.8)
(2.0)
Foreign government debt securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
36.6 
20.3 
Unrealized loss, less than 12 months
(0.1)
(0.1)
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
36.6 
20.3 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.1)
(0.1)
U.S. government agency securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
89.0 
106.7 
Unrealized loss, less than 12 months
(0.2)
(0.3)
Fair value, 12 months or greater
18.0 
0 
Unrealized loss, 12 months or greater
(0.2)
0 
Total fair value, available-for-sale investments in continuous unrealized loss position
107.0 
106.7 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.4)
(0.3)
U.S. government securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
256.3 
254.1 
Unrealized loss, less than 12 months
(0.4)
(0.4)
Fair value, 12 months or greater
1.8 
0 
Unrealized loss, 12 months or greater
0 
0 
Total fair value, available-for-sale investments in continuous unrealized loss position
258.1 
254.1 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
(0.4)
(0.4)
Publicly-traded equity securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair value, less than 12 months
 
4.6 
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
 
4.6 
Total unrealized loss, available-for-sale investments in continuous unrealized loss position
 
$ (0.7)
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Available-for-sale securities:
 
 
Available-for-sale securities
$ 3,475.4 
$ 2,782.1 
Asset-backed securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
287.8 
303.0 
Certificates of deposit
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
50.0 
66.1 
Commercial paper
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
124.0 
147.7 
Corporate debt securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
834.1 
844.9 
Foreign government debt securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
64.7 
33.9 
Money market funds
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
990.7 
592.2 
Publicly-traded equity securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
4.6 
Time deposits
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
411.4 
264.6 
U.S. government agency securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
156.5 
126.7 
U.S. government securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
548.0 
390.4 
Fair Value, Measurements, Recurring
 
 
Derivative assets:
 
 
Total assets measured at fair value
3,552.3 
2,847.7 
Liabilities measured at fair value:
 
 
Other accrued liabilities
(0.6)
(4.9)
Total liabilities measured at fair value
(0.6)
(4.9)
Reported Value [Abstract]
 
 
Cash equivalents
1,588.8 
907.1 
Restricted investments
77.1 
71.9 
Short-term investments
922.0 
752.3 
Long-term investments
913.6 
1,071.8 
Prepaid expenses and other current assets
8.5 
0.9 
Other long-term assets
42.3 
43.7 
Fair Value, Measurements, Recurring |
Foreign exchange contracts
 
 
Derivative assets:
 
 
Foreign exchange contracts
8.5 
0.9 
Liabilities measured at fair value:
 
 
Derivative liabilities
(0.6)
(4.9)
Fair Value, Measurements, Recurring |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Derivative assets:
 
 
Total assets measured at fair value
1,368.7 
970.8 
Liabilities measured at fair value:
 
 
Other accrued liabilities
0 
0 
Total liabilities measured at fair value
0 
0 
Reported Value [Abstract]
 
 
Cash equivalents
947.9 
549.4 
Restricted investments
77.1 
71.9 
Short-term investments
231.9 
178.0 
Long-term investments
111.8 
171.5 
Prepaid expenses and other current assets
0 
0 
Other long-term assets
0 
0 
Fair Value, Measurements, Recurring |
Quoted Prices in Active Markets For Identical Assets (Level 1) |
Foreign exchange contracts
 
 
Derivative assets:
 
 
Foreign exchange contracts
0 
0 
Liabilities measured at fair value:
 
 
Derivative liabilities
0 
0 
Fair Value, Measurements, Recurring |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Derivative assets:
 
 
Total assets measured at fair value
2,141.3 
1,833.2 
Liabilities measured at fair value:
 
 
Other accrued liabilities
(0.6)
(4.9)
Total liabilities measured at fair value
(0.6)
(4.9)
Reported Value [Abstract]
 
 
Cash equivalents
640.9 
357.7 
Restricted investments
0 
0 
Short-term investments
690.1 
574.3 
Long-term investments
801.8 
900.3 
Prepaid expenses and other current assets
8.5 
0.9 
Other long-term assets
0 
0 
Fair Value, Measurements, Recurring |
Significant Other Observable Remaining Inputs (Level 2) |
Foreign exchange contracts
 
 
Derivative assets:
 
 
Foreign exchange contracts
8.5 
0.9 
Liabilities measured at fair value:
 
 
Derivative liabilities
(0.6)
(4.9)
Fair Value, Measurements, Recurring |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Derivative assets:
 
 
Total assets measured at fair value
42.3 
43.7 
Liabilities measured at fair value:
 
 
Other accrued liabilities
0 
0 
Total liabilities measured at fair value
0 
0 
Reported Value [Abstract]
 
 
Cash equivalents
0 
0 
Restricted investments
0 
0 
Short-term investments
0 
0 
Long-term investments
0 
0 
Prepaid expenses and other current assets
0 
0 
Other long-term assets
42.3 
43.7 
Fair Value, Measurements, Recurring |
Significant Other Unobservable Remaining Inputs (Level 3) |
Foreign exchange contracts
 
 
Derivative assets:
 
 
Foreign exchange contracts
0 
0 
Liabilities measured at fair value:
 
 
Derivative liabilities
0 
0 
Fair Value, Measurements, Recurring |
Asset-backed securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
287.8 
303.0 
Fair Value, Measurements, Recurring |
Asset-backed securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Asset-backed securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
287.8 
303.0 
Fair Value, Measurements, Recurring |
Asset-backed securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Certificates of deposit
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
50.0 
66.1 
Fair Value, Measurements, Recurring |
Certificates of deposit |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Certificates of deposit |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
50.0 
66.1 
Fair Value, Measurements, Recurring |
Certificates of deposit |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Commercial paper
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
124.0 
147.7 
Fair Value, Measurements, Recurring |
Commercial paper |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Commercial paper |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
124.0 
147.7 
Fair Value, Measurements, Recurring |
Commercial paper |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Corporate debt securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
834.1 
844.9 
Fair Value, Measurements, Recurring |
Corporate debt securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Corporate debt securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
834.1 
844.9 
Fair Value, Measurements, Recurring |
Corporate debt securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Foreign government debt securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
64.7 
33.9 
Fair Value, Measurements, Recurring |
Foreign government debt securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Foreign government debt securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
64.7 
33.9 
Fair Value, Measurements, Recurring |
Foreign government debt securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Money market funds
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
990.7 
592.2 
Fair Value, Measurements, Recurring |
Money market funds |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
990.7 
592.2 
Fair Value, Measurements, Recurring |
Money market funds |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Money market funds |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Mutual funds
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
8.2 
8.0 
Trading securities in mutual funds
26.1 
21.0 
Fair Value, Measurements, Recurring |
Mutual funds |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
8.2 
8.0 
Trading securities in mutual funds
26.1 
21.0 
Fair Value, Measurements, Recurring |
Mutual funds |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Trading securities in mutual funds
0 
0 
Fair Value, Measurements, Recurring |
Mutual funds |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Trading securities in mutual funds
0 
0 
Fair Value, Measurements, Recurring |
Publicly-traded equity securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
4.6 
Fair Value, Measurements, Recurring |
Publicly-traded equity securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
4.6 
Fair Value, Measurements, Recurring |
Publicly-traded equity securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Publicly-traded equity securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Time deposits
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
411.4 
264.6 
Fair Value, Measurements, Recurring |
Time deposits |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Time deposits |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
411.4 
264.6 
Fair Value, Measurements, Recurring |
Time deposits |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
U.S. government agency securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
156.5 
126.7 
Fair Value, Measurements, Recurring |
U.S. government agency securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
U.S. government agency securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
156.5 
126.7 
Fair Value, Measurements, Recurring |
U.S. government agency securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
U.S. government securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
548.0 
390.4 
Fair Value, Measurements, Recurring |
U.S. government securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
343.7 
345.0 
Fair Value, Measurements, Recurring |
U.S. government securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
204.3 
45.4 
Fair Value, Measurements, Recurring |
U.S. government securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Total available-for-sale securities
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
3,475.4 
2,782.1 
Fair Value, Measurements, Recurring |
Total available-for-sale securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
1,342.6 
949.8 
Fair Value, Measurements, Recurring |
Total available-for-sale securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
2,132.8 
1,832.3 
Fair Value, Measurements, Recurring |
Total available-for-sale securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring |
Privately-held debt and redeemable preferred stock securities
 
 
Available-for-sale securities:
 
 
Privately-held debt and redeemable preferred stock securities
42.3 
43.7 
Fair Value, Measurements, Recurring |
Privately-held debt and redeemable preferred stock securities |
Quoted Prices in Active Markets For Identical Assets (Level 1)
 
 
Available-for-sale securities:
 
 
Privately-held debt and redeemable preferred stock securities
0 
0 
Fair Value, Measurements, Recurring |
Privately-held debt and redeemable preferred stock securities |
Significant Other Observable Remaining Inputs (Level 2)
 
 
Available-for-sale securities:
 
 
Privately-held debt and redeemable preferred stock securities
0 
0 
Fair Value, Measurements, Recurring |
Privately-held debt and redeemable preferred stock securities |
Significant Other Unobservable Remaining Inputs (Level 3)
 
 
Available-for-sale securities:
 
 
Privately-held debt and redeemable preferred stock securities
$ 42.3 
$ 43.7 
Fair Value Measurements - Narrative (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Significant Other Observable Remaining Inputs (Level 2)
Dec. 31, 2016
Significant Other Observable Remaining Inputs (Level 2)
Sep. 30, 2017
Privately-held debt and redeemable preferred stock securities
Significant Other Unobservable Remaining Inputs (Level 3)
Fair Value, Measurements, Recurring
Sep. 30, 2017
Privately-held debt and redeemable preferred stock securities
Significant Other Unobservable Remaining Inputs (Level 3)
Fair Value, Measurements, Recurring
Dec. 31, 2016
Certain Investments In Privately-Held Companies
Significant Other Unobservable Remaining Inputs (Level 3)
Fair Value, Measurements, Nonrecurring
Sep. 30, 2017
Junos Pulse
May 1, 2017
Junos Pulse
Dec. 31, 2016
Junos Pulse
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on investments
 
 
 
 
$ 0 
$ 0 
 
 
 
 
Cost method investment
30,200,000 
19,000,000 
 
 
 
 
1,600,000 
 
 
 
Cos method investment, fair value
 
 
 
 
 
 
0 
 
 
 
Long-term Debt, Fair Value
 
 
2,274,800,000 
2,215,700,000 
 
 
 
 
 
 
Note receivable
 
 
 
 
 
 
 
$ 58,500,000 
$ 58,000,000 
$ 132,900,000 
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Non-designated derivatives
Dec. 31, 2016
Non-designated derivatives
Sep. 30, 2017
Cash flow hedges
Designated as hedge
Dec. 31, 2016
Cash flow hedges
Designated as hedge
Sep. 30, 2017
Foreign exchange contracts
Cash flow hedges
Sep. 30, 2016
Foreign exchange contracts
Cash flow hedges
Sep. 30, 2017
Foreign exchange contracts
Cash flow hedges
Sep. 30, 2016
Foreign exchange contracts
Cash flow hedges
Derivatives, Notional Amount [Line Items]
 
 
 
 
 
 
 
 
 
 
Notional amount of foreign currency derivatives
$ 378.7 
$ 172.0 
$ 147.1 
$ 0 
$ 231.6 
$ 172.0 
 
 
 
 
Maturities of cash flow hedge derivatives
 
 
1 month 
 
18 months 
 
 
 
 
 
Gains or losses is expected to be reclassified into earnings within the next 12 months
 
 
 
 
8.8 
 
 
 
 
 
Derivative instruments, gain (loss) recognized in other comprehensive income (loss), Effective portion
 
 
 
 
 
 
$ 6.8 
$ 0.3 
$ 17.6 
$ 4.8 
Goodwill and Purchased Intangible Assets - Goodwill (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Goodwill [Roll Forward]
 
Balance as of December 31, 2016
$ 3,081.7 
Additions due to business combination
16.7 
Other
(2.2)
Balance as of September 30, 2017
$ 3,096.2 
Goodwill and Purchased Intangible Assets - Purchased Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Sep. 18, 2017
Cyphort
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
Purchased intangible assets, net
$ 133.0 
 
$ 133.0 
 
$ 130.2 
 
Intangible acquired
 
 
 
 
 
15.4 
Amortization of intangible assets
$ 4.1 
$ 4.8 
$ 12.6 
$ 12.9 
 
 
Other Financial Information - Inventories, Net (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Schedule Of Inventory [Line Items]
 
 
Production and service materials
$ 72.6 
$ 75.6 
Finished goods
18.3 
19.9 
Inventory
90.9 
95.5 
Prepaid expenses and other current assets
 
 
Schedule Of Inventory [Line Items]
 
 
Inventory
84.9 
91.4 
Other Noncurrent Assets
 
 
Schedule Of Inventory [Line Items]
 
 
Inventory
$ 6.0 
$ 4.1 
Other Financial Information - Other Long Term Assets (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
May 1, 2017
Junos Pulse
Sep. 30, 2017
Junos Pulse
Sep. 30, 2016
Junos Pulse
Sep. 30, 2017
Junos Pulse
Sep. 30, 2016
Junos Pulse
May 1, 2017
Junos Pulse
Dec. 31, 2016
Junos Pulse
Oct. 1, 2014
Junos Pulse
Apr. 1, 2017
Prepaid expenses and other current assets
Junos Pulse
Other Financial Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Consideration
 
 
 
 
 
 
 
 
 
$ 230.7 
 
Cash Consideration
 
 
 
 
 
 
 
 
 
105.7 
 
Working capital adjustment
 
 
 
 
 
 
 
 
 
19.3 
 
Note receivable carrying value
 
 
 
 
 
 
 
 
 
125.0 
75.0 
Proceeds from Pulse note receivable
75.0 
0 
75.0 
 
 
 
 
 
 
 
 
Note receivable
 
 
 
58.5 
 
58.5 
 
58.0 
132.9 
 
 
Interest income
 
 
 
$ 1.6 
$ 2.7 
$ 6.5 
$ 8.0 
 
 
 
 
Other Financial Information - Warranties (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Movement in Standard Product Warranty Accrual [Roll Forward]
 
Balance as of December 31, 2016
$ 41.3 
Provisions made during the period
29.6 
Actual costs incurred during the period
(41.5)
Balance as of September 30, 2017
$ 29.4 
Other Financial Information - Deferred Revenue (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Deferred product revenue:
 
 
Deferred product revenue, net
$ 1,462.9 
$ 1,481.1 
Deferred service revenue
 
 
Deferred service revenue
1,462.9 
1,481.1 
Deferred revenue
1,462.9 
1,481.1 
Reported as:
 
 
Current
977.4 
1,032.0 
Long-term
485.5 
449.1 
Deferred revenue
1,462.9 
1,481.1 
Deferred product revenue:
 
 
Deferred product revenue:
 
 
Undelivered product commitments and other product deferrals
309.3 
302.4 
Distributor inventory and other sell-through items
61.9 
74.2 
Deferred gross product revenue
371.2 
376.6 
Deferred cost of product revenue
(47.5)
(53.7)
Deferred product revenue, net
323.7 
322.9 
Deferred service revenue
 
 
Deferred service revenue
323.7 
322.9 
Deferred revenue
323.7 
322.9 
Reported as:
 
 
Deferred revenue
323.7 
322.9 
Deferred service revenue
 
 
Deferred product revenue:
 
 
Deferred product revenue, net
1,139.2 
1,158.2 
Deferred service revenue
 
 
Deferred service revenue
1,139.2 
1,158.2 
Deferred revenue
1,139.2 
1,158.2 
Reported as:
 
 
Deferred revenue
$ 1,139.2 
$ 1,158.2 
Other Financial Information - Other Income (Expense), Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Other Financial Information [Abstract]
 
 
 
 
Interest income
$ 14.7 
$ 9.1 
$ 37.1 
$ 25.5 
Interest expense
(25.3)
(25.1)
(75.6)
(72.6)
Gain on investments, net
4.7 
1.9 
6.7 
0.1 
Other
0.8 
0.7 
(2.0)
(0.2)
Other expense, net
$ (5.1)
$ (13.4)
$ (33.8)
$ (47.2)
Restructuring Charges (Charges and Changes to Restructuring)(Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Restructuring Reserve [Roll Forward]
 
 
 
 
Restructuring liability, beginning balance
 
 
$ 1.2 
 
Charges
2.0 
0.8 
29.4 
3.2 
Cash Payments
 
 
(25.9)
 
Other
 
 
0 
 
Restructuring liability, ending balance
4.7 
 
4.7 
 
Severance
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Restructuring liability, beginning balance
 
 
0.7 
 
Charges
 
 
26.0 
 
Cash Payments
 
 
(25.5)
 
Other
 
 
(0.1)
 
Restructuring liability, ending balance
1.1 
 
1.1 
 
Severance |
2017 Restructuring Plan
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Charges
0.6 
 
26.0 
 
Contract terminations and other
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Restructuring liability, beginning balance
 
 
0.5 
 
Charges
 
 
3.4 
 
Cash Payments
 
 
(0.4)
 
Other
 
 
0.1 
 
Restructuring liability, ending balance
3.6 
 
3.6 
 
Contract terminations and other |
2017 Restructuring Plan
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Charges
$ 1.4 
 
$ 3.4 
 
Debt and Financing (Summary of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Long-term debt, gross
$ 2,150.0 
 
Unaccreted discount and debt issuance costs
(14.3)
 
Long-term debt
2,135.7 
2,133.7 
Redemption percent due to change in control (percentage)
101.00% 
 
3.125% fixed-rate notes, due February 2019
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
350.0 
 
Effective Interest Rates
3.36% 
 
Long-term debt, stated interest rate
3.125% 
 
3.300% fixed-rate notes, due June 2020
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
300.0 
 
Effective Interest Rates
3.47% 
 
Long-term debt, stated interest rate
3.30% 
 
4.600% fixed-rate notes, due March 2021
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
300.0 
 
Effective Interest Rates
4.69% 
 
Long-term debt, stated interest rate
4.60% 
 
4.500% fixed-rate notes, due March 2024, issued March 2014
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
350.0 
 
Effective Interest Rates
4.63% 
 
Long-term debt, stated interest rate
4.50% 
 
4.500% fixed-rate notes, due March 2024, issued February 2016
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
150.0 
 
Effective Interest Rates
4.87% 
 
Long-term debt, stated interest rate
4.50% 
 
4.350% fixed-rate notes, due June 2025
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
300.0 
 
Effective Interest Rates
4.47% 
 
Long-term debt, stated interest rate
4.35% 
 
5.950% fixed-rate notes, due March 2041
 
 
Debt Instrument [Line Items]
 
 
Long-term debt, gross
$ 400.0 
 
Effective Interest Rates
6.03% 
 
Long-term debt, stated interest rate
5.95% 
 
Debt and Financing - Revolving Credit Facility (Details) (Revolving Credit Facility, USD $)
0 Months Ended
Sep. 30, 2017
Jun. 27, 2014
Jun. 27, 2014
Base Rate
Minimum
Jun. 27, 2014
Base Rate
Maximum
Jun. 27, 2014
Eurodollar
Minimum
Jun. 27, 2014
Eurodollar
Maximum
Line of Credit Facility [Line Items]
 
 
 
 
 
 
Revolving credit facility limit
 
$ 500,000,000.0 
 
 
 
 
Revolving credit facility, additional borrowing capacity
 
200,000,000 
 
 
 
 
Basis spread on variable rate
 
 
0.00% 
0.50% 
0.90% 
1.50% 
Line of credit, outstanding
$ 0 
 
 
 
 
 
Debt and Financing - Customer Financing Arrangements (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
 
 
 
Sale of receivable
$ 77.3 
$ 59.3 
$ 132.6 
$ 73.4 
 
Proceeds from sale and collection of receivables
57.6 
30.0 
113.3 
40.8 
 
Receivables from sale of receivables
$ 32.9 
 
$ 32.9 
 
$ 13.6 
Minimum
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Number of days due from receivable
 
 
1 day 
 
 
Maximum
 
 
 
 
 
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. 25, 2017
Apr. 25, 2017
Jan. 26, 2017
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Stockholders' Equity Note [Abstract]
 
 
 
 
 
 
 
Cash dividends declared per common stock (in dollars per share)
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.30 
$ 0.30 
Common stock dividends paid
 
 
 
 
 
$ 113.5 
 
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, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Feb. 28, 2017
Oct. 31, 2014
Feb. 28, 2014
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
 
 
Shares repurchased and retired related to net issuances
 
$ 1,400,000 
 
$ 11,000,000 
 
 
 
2014 Stock Repurchase Program
 
 
 
 
 
 
 
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
 
 
Stock repurchase program, authorized amount
 
 
 
 
4,400,000,000 
 
2,100,000,000 
Additional amount authorized under Stock Repurchase Plan
 
 
 
 
500,000,000 
1,800,000,000 
 
Stock repurchased (in shares)
5.0 
4.9 
13.5 
13.5 
 
 
 
Average price per share (in dollars per share)
$ 28.16 
$ 23.04 
$ 28.85 
$ 23.25 
 
 
 
Amount repurchased
140,000,000 
112,400,000 
390,000,000 
312,900,000 
 
 
 
Stock repurchase program, remaining authorized repurchase amount
329,700,000 
 
329,700,000 
 
 
 
 
Stock Repurchase Program 2014, Accelerated Share Repurchase
 
 
 
 
 
 
 
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
 
 
Stock repurchase program, authorized amount
 
 
 
 
 
 
$ 1,200,000,000 
Equity - Components of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2017
AOCI Attributable to Parent
Dec. 31, 2016
AOCI Attributable to Parent
Sep. 30, 2017
Unrealized Gains on Available-for- Sale Securities
Sep. 30, 2017
Unrealized (Losses) Gains on Cash Flow Hedges
Sep. 30, 2017
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
 
 
Balance as of December 31, 2016
 
$ (6.4)
$ (37.3)
$ 16.6 
$ (4.5)
$ (49.4)
Other comprehensive gains before reclassifications
35.3 
 
 
1.4 
14.6 
19.3 
Amount reclassified from accumulated other comprehensive loss
(4.4)
 
 
(2.0)
(2.4)
0 
Other comprehensive (loss) gains, net
30.9 
 
 
(0.6)
12.2 
19.3 
Balance as of September 30, 2017
 
$ (6.4)
$ (37.3)
$ 16.0 
$ 7.7 
$ (30.1)
Employee Benefit Plans ( Equity Incentive Plan and Stock Option Activity) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended 0 Months Ended 0 Months Ended
Sep. 30, 2017
May 25, 2017
Equity incentive plan 2015
Sep. 30, 2017
Equity incentive plan 2015
May 25, 2017
Employee stock purchase plan 2008
Sep. 30, 2017
Employee stock purchase plan 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
Number of additional shares authorized (shares)
 
23.0 
 
9.0 
 
Share-Based Compensation Plans
 
 
 
 
 
Number of shares available for future issuance
 
 
35.3 
 
11.2 
Number of Shares
 
 
 
 
 
Balance at beginning of period (in shares)
2.4 
 
 
 
 
Exercised (in shares)
(0.5)
 
 
 
 
Expired/canceled (in shares)
(0.8)
 
 
 
 
Balance at end of period (in shares)
1.1 
 
 
 
 
Weighted Average Exercise Price per Share
 
 
 
 
 
Balance at beginning of period (in dollars per share)
$ 29.20 
 
 
 
 
Exercised (in dollars per share)
$ 14.97 
 
 
 
 
Expired/canceled (in dollars per share)
$ 31.09 
 
 
 
 
Balance at end of period (in dollars per share)
$ 34.31 
 
 
 
 
Weighted average remaining contractual term at end of period
1 year 1 month 6 days 
 
 
 
 
Aggregate intrinsic value at end of period
$ 3.1 
 
 
 
 
Vested or expected-to-vest options at end of period (in shares)
1.1 
 
 
 
 
Vested or expected-to-vest options, weighted average exercise price at end of period (in dollars per share)
$ 34.31 
 
 
 
 
Vested and expected-to-vest options, weighted average remaining contractual term at end of period
1 year 1 month 6 days 
 
 
 
 
Vested or expected-to-vest options, aggregate intrinsic value at end of period
3.1 
 
 
 
 
Exercisable options at end of period (in shares)
1.0 
 
 
 
 
Exercisable options, weighted average exercise price at end of period (in dollars per share)
$ 35.56 
 
 
 
 
Exercisable options, weighted average remaining contractual term at end of period
9 months 18 days 
 
 
 
 
Exercisable options, aggregate intrinsic value at end of period
$ 2.1 
 
 
 
 
Employee Benefit Plans - 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. 25, 2017
Apr. 25, 2017
Jan. 26, 2017
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Cash dividends declared per common stock (in dollars per share)
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.30 
$ 0.30 
Common stock dividends paid
 
 
 
 
 
$ 113.5 
 
Employee stock purchase plan 2008
 
 
 
 
 
 
 
Employee Stock Purchase Plan
 
 
 
 
 
 
 
Expiration period for ESPP
 
 
 
 
 
6 months 
 
Stock issued during period, shares, employee stock purchase plans (in shares)
 
 
 
1,200,000 
1,400,000 
2,700,000 
2,700,000 
Average price of common stock, per share (in dollars per share)
 
 
 
$ 22.79 
$ 19.29 
$ 20.83 
$ 19.66 
RSUs, RSAs, and PSAs
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Balance at beginning of period (in shares)
 
 
 
 
 
20,900,000 
 
Balance at end of period (in shares)
 
 
 
19,300,000 
 
19,300,000 
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Balance at beginning of period (in dollars per share)
 
 
 
 
 
$ 24.05 
 
Balance at end of period (in dollars per share)
 
 
 
$ 25.23 
 
$ 25.23 
 
Weighted Average Remaining Contractual Term (In Years)
 
 
 
 
 
1 year 1 month 20 days 
 
Aggregate Intrinsic Value
 
 
 
$ 537.1 
 
$ 537.1 
 
Restricted Stock Units (RSUs)
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
6,600,000 
 
Assumed in acquisitions (in shares)
 
 
 
 
 
100,000 
 
Vested (in shares)
 
 
 
 
 
(6,000,000)
 
Canceled (in shares)
 
 
 
 
 
(1,500,000)
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Granted (in dollars per share)
 
 
 
 
 
$ 27.56 
 
Assumed in acquisition (in dollars per share)
 
 
 
 
 
$ 26.91 
 
Vested (in dollars per share)
 
 
 
 
 
$ 23.81 
 
Canceled (in dollars per share)
 
 
 
 
 
$ 24.57 
 
Performance shares (PSAs)
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
600,000 
 
Vested (in shares)
 
 
 
 
 
(500,000)
 
Canceled (in shares)
 
 
 
 
 
(500,000)
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Granted (in dollars per share)
 
 
 
 
 
$ 27.37 
 
Vested (in dollars per share)
 
 
 
 
 
$ 24.29 
 
Canceled (in dollars per share)
 
 
 
 
 
$ 25.11 
 
Aggregate number of shares subject to PSAs granted
 
 
 
 
 
400,000 
 
Minimum shares to be issued on achievement of performance goals in respect of PSAs (shares)
 
 
 
 
 
0 
 
Maximum shares to be issued on achievement of performance goals in respect of PSAs (shares)
 
 
 
 
 
600,000 
 
Restricted stock awards (RSAs)
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
Vested (in shares)
 
 
 
 
 
(400,000)
 
Weighted Average Grant-Date Fair Value per Share
 
 
 
 
 
 
 
Vested (in dollars per share)
 
 
 
 
 
$ 22.80 
 
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, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
$ 45.0 
$ 55.6 
$ 151.1 
$ 163.0 
Stock options
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
0.2 
1.5 
0.5 
3.7 
RSUs, RSAs, and PSAs
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
41.0 
50.3 
138.9 
147.6 
ESPP
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
3.8 
3.8 
11.7 
11.7 
Cost of revenues - Product
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
1.5 
1.5 
3.8 
4.9 
Cost of revenues - Service
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
3.9 
3.5 
13.5 
11.3 
Research and development
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
18.5 
27.2 
67.4 
89.0 
Sales and marketing
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
13.7 
17.5 
45.3 
40.7 
General and administrative
 
 
 
 
Stock Based Compensation Expense Recorded in Cost and Expense Categories
 
 
 
 
Share-based compensation expense
$ 7.4 
$ 5.9 
$ 21.1 
$ 17.1 
Employee Benefit Plans - Share Based Compensation by Share Based Payment Award Types (Details) (Restricted Stock Units, Restricted Stock Award and Performance Share Award, USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Restricted Stock Units, Restricted Stock Award and Performance Share Award
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized Compensation Cost
$ 309.8 
Weighted Average Period (In Years)
1 year 7 months 18 days 
Segments (Revenue by product) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
segment
Sep. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Number of reportable segments
 
 
1 
 
Product
$ 869.7 
$ 928.2 
$ 2,615.8 
$ 2,543.3 
Service
388.1 
357.1 
1,171.9 
1,061.2 
Total net revenues
1,257.8 
1,285.3 
3,787.7 
3,604.5 
Routing
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product
585.8 
620.2 
1,679.9 
1,699.0 
Switching
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product
212.6 
222.5 
730.2 
607.2 
Security
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product
71.3 
85.5 
205.7 
237.1 
Total product
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product
869.7 
928.2 
2,615.8 
2,543.3 
Total service
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Service
$ 388.1 
$ 357.1 
$ 1,171.9 
$ 1,061.2 
Segments - Revenues by Customer Vertical (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
$ 1,257.8 
$ 1,285.3 
$ 3,787.7 
$ 3,604.5 
Cloud
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
344.9 
359.4 
1,056.1 
911.5 
Telecom/Cable
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
576.9 
599.4 
1,707.8 
1,688.5 
Strategic Enterprise
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
$ 336.0 
$ 326.5 
$ 1,023.8 
$ 1,004.5 
Segments - Geographic (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
$ 1,257.8 
$ 1,285.3 
$ 3,787.7 
$ 3,604.5 
Total Americas
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
729.2 
745.0 
2,241.6 
2,093.2 
United States
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
668.8 
684.6 
2,076.0 
1,924.9 
Other
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
60.4 
60.4 
165.6 
168.3 
Europe, Middle East, and Africa
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
298.6 
338.0 
871.3 
923.5 
Asia Pacific
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
$ 230.0 
$ 202.3 
$ 674.8 
$ 587.8 
Income Taxes (Details of Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Tax Disclosure [Abstract]
 
 
 
 
Income before income taxes
$ 225.8 
$ 236.6 
$ 611.6 
$ 555.3 
Income tax provision
60.1 
64.2 
157.3 
151.5 
Effective tax rate
26.60% 
27.10% 
25.70% 
27.30% 
Unrecognized tax benefits
236.7 
 
236.7 
 
Unrecognized tax benefits that would impact effective tax rate
204.2 
 
204.2 
 
Unrecognized tax benefits could decrease up to
$ 67.0 
 
$ 67.0 
 
Net Income Per Share (Basic and Diluted Income Per Share) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Numerator:
 
 
 
 
Net income
$ 165.7 
$ 172.4 
$ 454.3 
$ 403.8 
Denominator:
 
 
 
 
Weighted-average shares used to compute basic net income per share (in shares)
378.3 
381.0 
380.0 
382.3 
Dilutive effect of employee stock awards (in shares)
4.4 
3.5 
6.5 
5.6 
Weighted-average shares used to compute diluted net income per share (in shares)
382.7 
384.5 
386.5 
387.9 
Net income per share
 
 
 
 
Basic (in dollars per share)
$ 0.44 
$ 0.45 
$ 1.20 
$ 1.06 
Diluted, (in dollars per share)
$ 0.43 
$ 0.45 
$ 1.18 
$ 1.04 
Anti-dilutive shares
1.0 
2.7 
1.2 
2.7 
Commitments and Contingencies - Commitments (Details) (Damages from Product Defects, USD $)
In Millions, unless otherwise specified
0 Months Ended
Sep. 30, 2017
Sep. 30, 2017
Dec. 31, 2016
Damages from Product Defects
 
 
 
Loss Contingencies [Line Items]
 
 
 
Supplier component remediation liability
 
$ 0.8 
$ 10.8 
Supplier component remediation, estimated period that components may begin to fail
18 months 
 
 
Commitments and Contingencies - Guarantees (Details) (Indemnification Agreement, USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Indemnification Agreement
 
 
Guarantor Obligations [Line Items]
 
 
Guarantor obligations, current carrying value
$ 20.1 
$ 28.9 
Guarantor obligations, reversal of accrual recorded previously
$ 15.0 
 
Subsequent Events (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 1 Months Ended
Jul. 25, 2017
Apr. 25, 2017
Jan. 26, 2017
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Oct. 24, 2017
Subsequent Event
Nov. 7, 2017
Common Stock
Subsequent Event
Nov. 7, 2017
Minimum
Severance
Subsequent Event
Nov. 7, 2017
Maximum
Severance
Subsequent Event
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring related expenses, expected
 
 
 
 
 
 
 
 
 
$ 23.0 
$ 27.0 
Cash dividends declared per common stock (in dollars per share)
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.10 
$ 0.30 
$ 0.30 
$ 0.10 
 
 
 
Stock repurchased during period (in shares)
 
 
 
 
 
 
 
 
4.0 
 
 
Shares repurchased during the period
 
 
 
 
 
 
 
 
100.0 
 
 
Average price per share (in dollars per share)
 
 
 
 
 
 
 
 
$ 24.80 
 
 
Shares settled (in shares)
 
 
 
 
 
 
 
 
3.6 
 
 
Stock repurchase program, remaining authorized repurchase amount
 
 
 
 
 
 
 
 
$ 229.7