Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 27, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36468 | |
Entity Registrant Name | Arista Networks, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1751121 | |
Entity Address, Address Line One | 5453 Great America Parkway | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95054 | |
City Area Code | (408) | |
Local Phone Number | 547-5500 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | ANET | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 75,661,464 | |
Entity Central Index Key | 0001596532 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 970,349 | $ 1,111,286 |
Marketable securities | 1,875,552 | 1,613,082 |
Accounts receivable, net of rebates and allowances of $4,326 and $6,160, respectively | 300,217 | 391,987 |
Inventories | 438,102 | 243,825 |
Prepaid expenses and other current assets | 69,647 | 111,456 |
Total current assets | 3,653,867 | 3,471,636 |
Property and equipment, net | 32,670 | 39,273 |
Acquisition-related intangible assets, net | 77,752 | 45,235 |
Goodwill | 84,968 | 54,855 |
Investments | 4,150 | 4,150 |
Operating lease right-of-use assets | 79,929 | 87,770 |
Deferred tax assets | 443,229 | 452,025 |
Other assets | 22,807 | 30,346 |
TOTAL ASSETS | 4,399,372 | 4,185,290 |
CURRENT LIABILITIES: | ||
Accounts payable | 163,102 | 92,105 |
Accrued liabilities | 110,348 | 140,249 |
Deferred revenue | 321,290 | 312,668 |
Other current liabilities | 70,043 | 52,052 |
Total current liabilities | 664,783 | 597,074 |
Income taxes payable | 47,918 | 55,485 |
Operating lease liabilities, non-current | 74,903 | 83,022 |
Deferred revenue, non-current | 241,014 | 262,620 |
Deferred tax liabilities, non-current | 247,712 | 254,710 |
Other long-term liabilities | 39,165 | 37,693 |
TOTAL LIABILITIES | 1,315,495 | 1,290,604 |
Commitments and contingencies (Note 6) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.0001 par value—100,000 shares authorized and no shares issued and outstanding as of September 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.0001 par value—1,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 75,632 and 76,389 shares issued and outstanding as of September 30, 2020 and December 31, 2019 | 8 | 8 |
Additional paid-in capital | 1,240,147 | 1,106,305 |
Retained earnings | 1,844,656 | 1,788,230 |
Accumulated other comprehensive income (loss) | (934) | 143 |
TOTAL STOCKHOLDERS’ EQUITY | 3,083,877 | 2,894,686 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 4,399,372 | $ 4,185,290 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Rebates and allowances | $ 4,326 | $ 6,160 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 75,632,000 | 76,389,000 |
Common stock, shares outstanding (in shares) | 75,632,000 | 76,389,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 605,431 | $ 654,415 | $ 1,669,030 | $ 1,858,160 |
Cost of revenue: | ||||
Total cost of revenue | 220,469 | 237,141 | 601,728 | 670,125 |
Gross profit | 384,962 | 417,274 | 1,067,302 | 1,188,035 |
Operating expenses: | ||||
Research and development | 128,049 | 118,732 | 352,747 | 352,696 |
Sales and marketing | 53,372 | 55,279 | 161,695 | 159,372 |
General and administrative | 15,146 | 14,657 | 47,814 | 46,182 |
Total operating expenses | 196,567 | 188,668 | 562,256 | 558,250 |
Income from operations | 188,395 | 228,606 | 505,046 | 629,785 |
Other income, net | 13,224 | 19,169 | 33,637 | 45,313 |
Income before income taxes | 201,619 | 247,775 | 538,683 | 675,098 |
Provision for income taxes | 33,244 | 38,880 | 87,084 | 75,923 |
Net income | 168,375 | 208,895 | 451,599 | 599,175 |
Net income attributable to common stockholders: | ||||
Basic | 168,375 | 208,799 | 451,599 | 598,861 |
Diluted | $ 168,375 | $ 208,804 | $ 451,599 | $ 598,880 |
Net income per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 2.22 | $ 2.73 | $ 5.94 | $ 7.85 |
Diluted (in dollars per share) | $ 2.12 | $ 2.59 | $ 5.68 | $ 7.38 |
Weighted-average shares used in computing net income per share attributable to common stockholders: | ||||
Basic (in shares) | 75,999 | 76,426 | 76,024 | 76,301 |
Diluted (in shares) | 79,313 | 80,753 | 79,519 | 81,104 |
Product | ||||
Revenue: | ||||
Total revenue | $ 480,242 | $ 555,066 | $ 1,312,561 | $ 1,573,652 |
Cost of revenue: | ||||
Total cost of revenue | 199,465 | 218,220 | 539,526 | 616,906 |
Service | ||||
Revenue: | ||||
Total revenue | 125,189 | 99,349 | 356,469 | 284,508 |
Cost of revenue: | ||||
Total cost of revenue | $ 21,004 | $ 18,921 | $ 62,202 | $ 53,219 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 168,375 | $ 208,895 | $ 451,599 | $ 599,175 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 1,065 | (1,730) | (481) | (1,767) |
Available-for-sale investments: | ||||
Change in net unrealized gains (losses) on available-for-sale securities | (390) | (104) | 8,836 | 5,962 |
Less: reclassification adjustment for net (gains) included in net income | (9,432) | 0 | (9,432) | 0 |
Net change | (9,822) | (104) | (596) | 5,962 |
Other comprehensive income (loss) | (8,757) | (1,834) | (1,077) | 4,195 |
Comprehensive income | $ 159,618 | $ 207,061 | $ 450,522 | $ 603,370 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | [1] | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2018 | 75,668 | ||||||||
Beginning balance at Dec. 31, 2018 | $ 2,143,389 | $ 3,702 | $ 8 | $ 956,572 | $ 1,190,803 | $ 3,702 | $ (3,994) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 599,175 | 599,175 | |||||||
Other comprehensive income (loss), net of tax | 4,195 | 4,195 | |||||||
Stock-based compensation | 74,845 | 74,845 | |||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 1,648 | ||||||||
Issuance of common stock in connection with employee equity incentive plans | 52,177 | 52,177 | |||||||
Tax withholding paid for net share settlement of equity awards (in shares) | (29) | ||||||||
Tax withholding paid for net share settlement of equity awards | (7,069) | (7,069) | |||||||
Vesting of early-exercised stock options | 207 | 207 | |||||||
Repurchase of common stock (in shares) | (919) | ||||||||
Repurchase of common stock | (214,617) | (214,617) | |||||||
Ending balance (in shares) at Sep. 30, 2019 | 76,368 | ||||||||
Ending balance at Sep. 30, 2019 | $ 2,656,004 | $ 8 | 1,076,732 | 1,579,063 | 201 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||||
Beginning balance (in shares) at Jun. 30, 2019 | 76,555 | ||||||||
Beginning balance at Jun. 30, 2019 | $ 2,525,560 | $ 8 | 1,038,740 | 1,484,777 | 2,035 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 208,895 | 208,895 | |||||||
Other comprehensive income (loss), net of tax | (1,834) | (1,834) | |||||||
Stock-based compensation | 26,257 | 26,257 | |||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 336 | ||||||||
Issuance of common stock in connection with employee equity incentive plans | 14,073 | 14,073 | |||||||
Tax withholding paid for net share settlement of equity awards (in shares) | (11) | ||||||||
Tax withholding paid for net share settlement of equity awards | (2,407) | (2,407) | |||||||
Vesting of early-exercised stock options | 69 | 69 | |||||||
Repurchase of common stock (in shares) | (512) | ||||||||
Repurchase of common stock | (114,609) | (114,609) | |||||||
Ending balance (in shares) at Sep. 30, 2019 | 76,368 | ||||||||
Ending balance at Sep. 30, 2019 | 2,656,004 | $ 8 | 1,076,732 | 1,579,063 | 201 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 76,389 | ||||||||
Beginning balance at Dec. 31, 2019 | 2,894,686 | $ 8 | 1,106,305 | 1,788,230 | 143 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 451,599 | 451,599 | |||||||
Other comprehensive income (loss), net of tax | (1,077) | (1,077) | |||||||
Stock-based compensation | 96,947 | 96,947 | |||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 1,281 | ||||||||
Issuance of common stock in connection with employee equity incentive plans | 42,704 | 42,704 | |||||||
Tax withholding paid for net share settlement of equity awards (in shares) | (26) | ||||||||
Tax withholding paid for net share settlement of equity awards | (5,932) | (5,932) | |||||||
Vesting of early-exercised stock options | 123 | 123 | |||||||
Repurchase of common stock (in shares) | (2,012) | ||||||||
Repurchase of common stock | (395,173) | $ (395,173) | (395,173) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 75,632 | ||||||||
Ending balance at Sep. 30, 2020 | 3,083,877 | $ 8 | 1,240,147 | 1,844,656 | (934) | ||||
Beginning balance (in shares) at Jun. 30, 2020 | 75,964 | ||||||||
Beginning balance at Jun. 30, 2020 | 3,036,483 | $ 8 | 1,185,093 | 1,843,559 | 7,823 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 168,375 | 168,375 | |||||||
Other comprehensive income (loss), net of tax | (8,757) | (8,757) | |||||||
Stock-based compensation | 36,469 | 36,469 | |||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 480 | ||||||||
Issuance of common stock in connection with employee equity incentive plans | 20,476 | 20,476 | |||||||
Tax withholding paid for net share settlement of equity awards (in shares) | (9) | ||||||||
Tax withholding paid for net share settlement of equity awards | (1,932) | (1,932) | |||||||
Vesting of early-exercised stock options | 41 | 41 | |||||||
Repurchase of common stock (in shares) | (803) | ||||||||
Repurchase of common stock | (167,278) | $ (167,278) | (167,278) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 75,632 | ||||||||
Ending balance at Sep. 30, 2020 | $ 3,083,877 | $ 8 | $ 1,240,147 | $ 1,844,656 | $ (934) | ||||
[1] | On January 1, 2019, we adopted Accounting Standard Codification Topic 842 - Leases (“ASC 842”), which resulted in a cumulative-effect adjustment to the beginning balance of Retained Earnings for 2019. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 451,599 | $ 599,175 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and other | 31,975 | 24,948 | |
Stock-based compensation | 96,947 | 74,845 | |
Noncash lease expense | 12,606 | 12,007 | |
Deferred income taxes | 3,261 | 10,945 | |
Gain on sale of marketable securities | (9,432) | 0 | |
Gain on investments in privately-held companies | 0 | (5,427) | |
Amortization (accretion) of investment premiums (discounts) | 6,030 | (6,032) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 98,271 | (115,475) | |
Inventories | (193,996) | 24,951 | |
Prepaid expenses and other current assets | 38,654 | 59,388 | |
Other assets | 7,850 | (7,009) | |
Accounts payable | 71,803 | (14,361) | |
Accrued liabilities | (29,811) | 5,731 | |
Deferred revenue | (34,449) | (58,216) | |
Income taxes payable | (1,667) | 29,808 | |
Other liabilities | (1,451) | 595 | |
Net cash provided by operating activities | 548,190 | 635,873 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities of marketable securities | 1,183,601 | 806,519 | |
Purchases of marketable securities | (2,216,436) | (840,098) | |
Business acquisitions, net of cash acquired | (66,317) | (1,365) | |
Purchases of property and equipment | (7,701) | (13,319) | |
Proceeds from investments in privately-held companies | 3,399 | 28,220 | |
Proceeds from sale of marketable securities | 772,978 | 0 | |
Net cash used in investing activities | (330,476) | (20,043) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock under equity plans | 42,704 | 52,177 | |
Tax withholding paid on behalf of employees for net share settlement | (5,932) | (7,069) | |
Repurchase of common stock | (395,173) | (214,617) | |
Net cash provided used in financing activities | (358,401) | (169,509) | |
Effect of exchange rate changes | (246) | (994) | |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (140,933) | 445,327 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period | 1,115,515 | 654,164 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | [1] | 974,582 | 1,099,491 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | |||
Right-of-use assets recognized upon the adoption of ASC 842 | 0 | 93,207 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 5,031 | 10,948 | |
Property and equipment included in accounts payable and accrued liabilities | $ 456 | $ 684 | |
[1] | See Note 4 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash as shown in these condensed consolidated statements of cash flows. |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization Arista Networks, Inc. (together with our subsidiaries, “we,” “our,” "Arista," "Company" or “us”) is a supplier of cloud networking solutions that use software innovations to address the needs of large-scale Internet companies, cloud service providers and next-generation enterprise. Our cloud networking solutions consist of our Extensible Operating System ("EOS"), a set of network applications and our 1/2.5/5/10/25/40/50/100/400 Gigabit Ethernet switching and routing platforms. We are incorporated in the state of Delaware. Our corporate headquarters are located in Santa Clara, California, and we have wholly-owned subsidiaries throughout the world, including North America, Europe, Asia and Australia. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. Our condensed consolidated financial statements and related financial information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 14, 2020. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets, accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates. Risks and Uncertainties The global coronavirus ("COVID-19") pandemic and resulting mitigation efforts by governments around the world to contain or slow its spread have negatively impacted the global economy, disrupted business, sales activities, global supply chains and workforce participation, including our own, and created significant volatility and disruption of financial markets. Our contract manufacturers and suppliers have experienced delays in the production and export of their products, which have negatively impacted our supply chain and could negatively impact our business in the future. In addition, we expect that COVID-19 related disruptions may have a negative impact on demand from our customers in future periods and contribute to an expected year-over-year decline in revenues for the year ending December 31, 2020. However, the extent of the impact of COVID-19 on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, and the impact of any initiatives and programs we may undertake to address financial and operational challenges, will depend on future developments, including the duration and spread of the pandemic and related mitigation efforts, as well as restrictions on travel and transport, all of which are uncertain and cannot be predicted. Management is actively monitoring the impact of the pandemic on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Recently Adopted Accounting Pronouncements Credit Losses of Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. For trade receivables, we are required to estimate lifetime expected credit losses. For available-for-sale debt securities, we are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the new guidance in our first quarter of 2020 under a modified retrospective approach, and there was no material impact to our financial statements upon adoption. In addition, we do not anticipate that it will have a material impact on our consolidated statement of operations or consolidated statements of cash flows going forward. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On February 5, 2020, the Company completed its acquisition of Big Switch Networks, Inc. (“Big Switch”), a network monitoring and software-defined networking pioneer headquartered in Santa Clara, California. With the acquisition of Big Switch, we expect to expand our data center networking solutions and further strengthen our network monitoring and observability suite delivered through Arista’s software platform CloudVision and DANZ (DataANalyZer) capabilities. We paid an aggregate of $73.3 million in cash for the acquisition, of which $5.3 million in severance and other costs was accounted for as post-combination expense and was excluded from the purchase consideration. We also incurred certain acquisition-related expenses and restructuring costs of $6.6 million, which primarily consisted of retention bonuses to continuing employees, professional and consulting fees, and facilities restructuring costs. The following table summarizes the purchase consideration of $68.0 million, and the preliminary purchase price allocation based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Preliminary Purchase Price Allocation Tangible assets $ 13,376 Liabilities (24,346) Intangible assets 49,040 Goodwill 29,926 Net assets acquired $ 67,996 We continue the process of identifying and evaluating pending escrow claims related to tax and other liabilities. Accordingly, the preliminary values reflected in the table above are subject to potential measurement period adjustments. The acquired intangible assets are amortized on a straight-line basis over their estimated useful lives as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The following table shows the valuation of the intangible assets acquired (in thousands) along with their estimated useful lives: Acquisition Date Fair Value Estimated Useful Life Developed technology $ 31,040 5 years Customer relationships 13,150 7 years Non-compete agreements 4,060 2 years Trade name 790 1 year Total intangible assets acquired $ 49,040 Goodwill of $29.9 million is primarily attributable to the expected synergies created by incorporating the solutions of the acquired businesses into our technology platform, and the value of the assembled workforce. Goodwill is not deductible for income taxes purposes. In addition, the acquisition of Big Switch did not have a material impact on our revenue and net income for the current period, and therefore pro forma financial information has not been presented. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities recorded at fair value on a recurring basis on the accompanying condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. We use a fair value hierarchy to measure fair value, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The three-tiers of the fair value hierarchy are as follows: Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level II - Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level III - Unobservable inputs that are supported by little or no market data for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their level within the fair value hierarchy (in thousands): September 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 478,702 $ — $ — $ 478,702 $ 478,702 $ — $ — U.S. Treasuries 73,656 — — 73,656 73,656 — — 552,358 — — 552,358 552,358 — — Marketable Securities: Commercial paper 51,926 — — 51,926 — 51,926 — Certificate of deposits (1) 21,218 — — 21,218 — 21,218 — U.S. government notes 522,044 412 (6) 522,450 522,450 — — Corporate bonds 824,132 2,079 (401) 825,810 — 825,810 — Agency securities 453,773 387 (12) 454,148 — 454,148 — 1,873,093 2,878 (419) 1,875,552 522,450 1,353,102 — Other Assets: Money market funds - restricted 4,233 — — 4,233 4,233 — — Total Financial Assets $ 2,429,684 $ 2,878 $ (419) $ 2,432,143 $ 1,079,041 $ 1,353,102 $ — December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 562,580 $ — $ — $ 562,580 $ 562,580 $ — $ — Certificate of deposits (1) 4,001 — — 4,001 — 4,001 — 566,581 — — 566,581 562,580 4,001 — Marketable Securities: Commercial paper 66,717 — — 66,717 — 66,717 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 518,884 414 (20) 519,278 519,278 — — Corporate bonds 787,741 2,392 (73) 790,060 — 790,060 — Agency securities 233,491 577 (41) 234,027 — 234,027 — 1,609,833 3,383 (134) 1,613,082 519,278 1,093,804 — Other Assets: Money market funds - restricted 4,229 — — 4,229 4,229 — — Total Financial Assets $ 2,180,643 $ 3,383 $ (134) $ 2,183,892 $ 1,086,087 $ 1,097,805 $ — ______________________ (1) As of September 30, 2020 and December 31, 2019, all of our certificates of deposits were domestic deposits. The unrealized losses associated with our marketable securities were immaterial as of September 30, 2020, and December 31, 2019. As of September 30, 2020 and December 31, 2019, we did not have any marketable securities that have been in a continuous unrealized loss position for more than twelve months. We invest in marketable securities that have maximum maturities of up to two years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. We did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable securities during the three and nine months ended September 30, 2020. As of September 30, 2020, the contractual maturities of our investments did not exceed 24 months. The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): September 30, 2020 Due in 1 year or less $ 1,161,664 Due in over 1 year through 2 years 713,888 Total marketable securities $ 1,875,552 The weighted-average remaining duration of our current marketable securities is approximately 0.9 years as of September 30, 2020. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption marketable securities on the accompanying unaudited condensed consolidated balance sheets. |
Financial Statements Details
Financial Statements Details | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Components [Abstract] | |
Financial Statements Details | Financial Statements Details Cash, Cash Equivalents and Restricted Cash The following table is a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows (in thousands): September 30, 2020 September 30, 2019 Cash and cash equivalents $ 970,349 $ 1,095,265 Restricted cash included in Other assets 4,233 4,226 Total cash, cash equivalents and restricted cash $ 974,582 $ 1,099,491 Restricted cash, which was included in "Other assets" on the accompanying condensed consolidated balance sheets as of September 30, 2020 and September 30, 2019, primarily consisted of $4.0 million pledged as collateral representing a security deposit required for a facility lease. Accounts Receivable, Net Accounts receivable, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Accounts receivable $ 304,543 $ 398,147 Allowance for doubtful accounts (541) (638) Product sales rebate and returns reserve (3,785) (5,522) Accounts receivable, net $ 300,217 $ 391,987 Inventories Inventories consist of the following (in thousands): September 30, 2020 December 31, 2019 Raw materials $ 223,423 $ 96,712 Finished goods 214,679 147,113 Total inventories $ 438,102 $ 243,825 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid income taxes $ 564 $ 20,153 Inventory deposit 10,024 13,716 Other current assets 43,311 64,464 Other prepaid expenses and deposits 15,748 13,123 Total prepaid expenses and other current assets $ 69,647 $ 111,456 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Equipment and machinery $ 67,978 $ 64,748 Computer hardware and software 39,335 36,627 Leasehold improvements 31,309 31,235 Furniture and fixtures 3,754 3,774 Construction-in-process 308 265 Property and equipment, gross 142,684 136,649 Less: accumulated depreciation (110,014) (97,376) Property and equipment, net $ 32,670 $ 39,273 Depreciation expense was $4.9 million and $4.8 million for the three months ended September 30, 2020 and 2019, respectively, and $15.1 million and $14.3 million for the nine months ended September 30, 2020 and 2019, respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): September 30, 2020 December 31, 2019 Accrued payroll related costs $ 44,920 $ 80,133 Accrued manufacturing costs 30,154 31,920 Accrued product development costs 16,983 11,410 Accrued professional fees 5,152 6,335 Accrued warranty costs 6,732 6,742 Accrued taxes 1,866 1,716 Other 4,541 1,993 Total accrued liabilities $ 110,348 $ 140,249 Warranty Accrual The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Nine Months Ended September 30, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 4,507 3,887 Warranty costs incurred during the period (4,517) (3,841) Warranty accrual, end of period $ 6,732 $ 5,408 Contract Balances The following table summarizes the balances of our contract assets included in "Prepaid and other current assets" on the accompanying condensed consolidated balance sheets (in thousands): Nine Months Ended September 30, 2020 Contract assets, beginning balance $ 25,565 Contract assets, ending balance 6,004 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Contract liabilities, beginning balance $ 67,268 $ 42,026 $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (6,525) (3,700) (17,946) (10,134) Less: Beginning balance reclassified to deferred revenue (2,828) (1,689) (1,942) (967) Add: Contract liabilities recognized 12,362 13,506 29,115 28,649 Contract liabilities, ending balance $ 70,277 $ 50,143 $ 70,277 $ 50,143 As of September 30, 2020 and December 31, 2019, $31.1 million and $23.4 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the accompanying condensed consolidated balance sheets. Deferred Revenue and Performance Obligations Deferred revenue is comprised primarily of unearned revenue related to multi-year post contract support, or PCS, contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Deferred revenue, beginning balance $ 577,511 $ 502,218 $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (103,889) (84,277) (243,422) (306,909) Add: Deferral of revenue in current period, excluding amounts recognized during the period 88,682 111,071 230,438 248,694 Deferred revenue, ending balance $ 562,304 $ 529,012 $ 562,304 $ 529,012 Revenue from Remaining Performance Obligations Revenue from remaining performance obligations represents contracted revenue that has not yet been recognized. This consists of contract liabilities, deferred revenue and amounts that will be invoiced in future periods. As of September 30, 2020, approximately $676.4 million of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 81% of these remaining performance obligations over the next two years and 19% during the third to the fifth year. Other Income, Net Other income, net consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest income $ 4,319 $ 13,446 $ 24,649 $ 38,451 Gain on sale of marketable securities 9,432 — 9,432 — Gain on investment in privately-held companies — 4,277 — 5,427 Other income (expense), net (527) 1,446 (444) 1,435 Total $ 13,224 $ 19,169 $ 33,637 $ 45,313 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments in privately-held companies [Abstract] | |
Investments | Investments Investments in Privately-Held Companies Our investments are in the equity of privately-held companies, which do not have readily determinable fair values. These non-marketable equity securities are initially recorded at cost, and subsequently remeasured to fair value on a non-recurring basis based on observable price changes in orderly transactions for similar investments of the same issuer, or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to those investments. In addition, the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The following table summarizes the activity related to our investments in privately-held companies held as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Cost of investment $ 3,000 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 1,150 1,150 Carrying amount of investment $ 4,150 $ 4,150 During the three and nine months ended September 30, 2020, there were no realized or unrealized gains or losses recorded on investments. During the three months ended September 30, 2019, the Company recorded a realized gain of $4.3 million upon the sale of one of our investments. The realized gains were classified in "Other income, net" in the |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments We outsource most of our manufacturing and supply chain management operations to third-party contract manufacturers, who procure components and assemble products on our behalf based on our forecasts in order to reduce manufacturing lead times and ensure adequate component supply. We issue purchase orders to our contract manufacturers for finished products and a significant portion of these orders consists of firm non-cancellable commitments. In addition, we purchase strategic component inventory from certain suppliers under purchase commitments that in some cases are non-cancellable, including integrated circuits, which are consigned to our contract manufacturers. As of September 30, 2020, we had non-cancellable purchase commitments of $501.5 million, of which $484.8 million were to our contract manufacturers and suppliers. In addition, we have provided suppliers with inventory deposits to secure our obligations to purchase inventory and the amount of these deposits may increase in future periods as we work to reduce product lead times and ensure adequate component supply to meet future demand. We had $12.8 million and $16.5 million in deposits as of September 30, 2020 and December 31, 2019, respectively. These deposits are included in “Prepaid expenses and other current assets” and “Other assets” on the accompanying condensed consolidated balance sheets. Guarantees We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe on the intellectual property rights of a third party. We have, at our option and expense, the ability to repair any infringement, replace product with a non-infringing equivalent-in-function product or refund our customers all or a portion of the value of the product. Other guarantees or indemnification agreements include guarantees of product and service performance and standby letters of credit for leased facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantee and indemnification arrangements have not had a significant impact on our consolidated financial statements to date. Legal Proceedings In the ordinary course of business, we are a party to other claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property. We record a provision for contingent losses when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of September 30, 2020, provisions recorded for contingent losses related to other claims and matters have not been significant. Based on currently available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and our view of these matters may change in the future. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs, and potentially in future periods. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Repurchase Program In April 2019, our board of directors authorized a $1.0 billion stock repurchase program (the “Repurchase Program”). This authorization allows us to repurchase shares of our common stock opportunistically and will be funded from working capital. Repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or a combination of the foregoing. The Repurchase Program, which expires in April 2022, does not obligate us to acquire any of our common stock, and may be suspended or discontinued by us at any time without prior notice. As of September 30, 2020, the remaining authorized amount for stock repurchases under this program was approximately $338.7 million. A summary of the stock repurchase activity under the Repurchase Program for the three and nine months ended September 30, 2020 is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Aggregate purchase price $ 167,278 $ 395,173 Shares repurchased 803 2,012 Average price paid per share $ 208.19 $ 196.43 The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings. All shares repurchased under the Repurchase Program have been retired. Equity Award Plan Activities 2014 Equity Incentive Plan Effective January 1, 2020, the Company's board of directors authorized an increase of 2,291,660 shares to the shares available for issuance under the 2014 Equity Incentive Plan (the “2014 Plan”). Pursuant to the 2014 Plan, the 2020 share increase is determined based on 3% of the total shares of common stock outstanding as of December 31, 2019, but not to exceed 12,500,000 shares, unless the board of directors, in its discretion, determines to make a smaller increase. As of September 30, 2020, there remained approximately 21.9 million shares available for issuance under the 2014 Plan. 2014 Employee Stock Purchase Plan Effective January 1, 2020, our board of directors authorized an increase of 763,886 shares to the shares available for issuance under our 2014 Employee Stock Purchase Plan (the “ESPP”). Pursuant to the ESPP, the 2020 share increase was determined based on the least of 1% of the total shares of common stock outstanding on December 31, 2019, 2,500,000 shares, or such amount as determined by our board of directors. During the nine months ended September 30, 2020, we issued 105,667 shares at a weighted-average purchase price of $183.45 per share under the ESPP. As of September 30, 2020, there remained 3,850,993 shares available for issuance under the ESPP. Stock Option Activities The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (800) 29.15 Options canceled (31) 121.24 Balance—September 30, 2020 3,733 $ 44.71 3.7 $ 610,580 Vested and exercisable—September 30, 2020 2,489 $ 31.62 3.3 $ 436,617 Restricted Stock Unit (RSU) Activities A summary of the RSU activity under the 2014 Plan and related information are presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 1,208 213.75 RSUs vested (375) 158.18 RSUs forfeited/canceled (81) 222.27 Unvested balance—September 30, 2020 1,822 $ 211.07 1.9 $ 377,024 Shares Available for Grant The following table presents the stock activity and the total number of shares available for grant under the 2014 Plan as of September 30, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (1,208) Options canceled 31 RSUs forfeited 81 Shares traded for taxes 26 Balance—September 30, 2020 16,368 Stock-Based Compensation Expense Total stock-based compensation expenses related to options, restricted stock units, restricted stock, and employee stock purchase rights granted were allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 1,806 $ 1,258 $ 4,718 $ 3,384 Research and development 21,423 13,472 56,729 39,171 Sales and marketing 9,083 7,832 23,756 21,463 General and administrative 4,157 3,695 11,744 10,827 Total stock-based compensation $ 36,469 $ 26,257 $ 96,947 $ 74,845 As of September 30, 2020, unrecognized stock-based compensation expenses by award type and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years): September 30, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 31,114 $ 338,561 $ 12,641 $ 2,839 Weighted-average amortization period 2.7 years 3.4 years 1.4 years 2.0 years |
Net Income Per Share Available
Net Income Per Share Available to Common Stock | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Available to Common Stock | Net Income Per Share Available to Common Stock The following table sets forth the computation of our basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Basic: Net income $ 168,375 $ 208,895 $ 451,599 $ 599,175 Less: undistributed earnings allocated to participating securities — (96) — (314) Net income available to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Diluted: Net income attributable to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Add: undistributed earnings allocated to participating securities — 5 — 19 Net income attributable to common stockholders, diluted $ 168,375 $ 208,804 $ 451,599 $ 598,880 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,308 4,308 3,489 4,784 Employee stock purchase plan 6 19 6 19 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,313 80,753 79,519 81,104 Net income per share attributable to common stockholders: Basic $ 2.22 $ 2.73 $ 5.94 $ 7.85 Diluted $ 2.12 $ 2.59 $ 5.68 $ 7.38 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options and RSUs to purchase common stock 251 277 395 211 Employee stock purchase plan 17 41 84 59 Total 268 318 479 270 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 201,619 $ 247,775 $ 538,683 $ 675,098 Provision for income taxes 33,244 38,880 87,084 75,923 Effective tax rate 16.5 % 15.7 % 16.2 % 11.2 % The effective tax rates reflect tax expense recorded on pre-tax income in the three and nine months ended September 30, 2020 and September 30, 2019, respectively. The change in the effective tax rates in the three and nine months ended September 30, 2020, as compared to the same periods in 2019, was primarily due to a decrease in tax benefits attributable to stock-based compensation. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate in one reportable segment. The following table represents revenue based on the customer’s location, as determined by the customer’s shipping address (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 452,693 $ 532,318 $ 1,289,182 $ 1,418,325 Europe, Middle East and Africa 89,588 75,439 226,189 298,768 Asia-Pacific 63,150 46,658 153,659 141,067 Total revenue $ 605,431 $ 654,415 $ 1,669,030 $ 1,858,160 Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location, are summarized as follows (in thousands): September 30, 2020 December 31, 2019 United States $ 24,469 $ 32,565 International 8,201 6,708 Total $ 32,670 $ 39,273 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On September 21, 2020, the Company entered into a Merger Agreement to acquire Awake Security, Inc. (“Awake Security”), a network detection and response (“NDR”) platform provider headquartered in Santa Clara, California, and on October 7, 2020, we completed the acquisition of Awake Security. The acquisition will be included in our consolidated financial statements beginning in the fourth quarter of 2020, and will be financed from our existing cash balance . |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets, accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Credit Losses of Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. For trade receivables, we are required to estimate lifetime expected credit losses. For available-for-sale debt securities, we are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the new guidance in our first quarter of 2020 under a modified retrospective approach, and there was no material impact to our financial statements upon adoption. In addition, we do not anticipate that it will have a material impact on our consolidated statement of operations or consolidated statements of cash flows going forward. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase consideration of $68.0 million, and the preliminary purchase price allocation based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Preliminary Purchase Price Allocation Tangible assets $ 13,376 Liabilities (24,346) Intangible assets 49,040 Goodwill 29,926 Net assets acquired $ 67,996 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table shows the valuation of the intangible assets acquired (in thousands) along with their estimated useful lives: Acquisition Date Fair Value Estimated Useful Life Developed technology $ 31,040 5 years Customer relationships 13,150 7 years Non-compete agreements 4,060 2 years Trade name 790 1 year Total intangible assets acquired $ 49,040 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Assets by Level | The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their level within the fair value hierarchy (in thousands): September 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 478,702 $ — $ — $ 478,702 $ 478,702 $ — $ — U.S. Treasuries 73,656 — — 73,656 73,656 — — 552,358 — — 552,358 552,358 — — Marketable Securities: Commercial paper 51,926 — — 51,926 — 51,926 — Certificate of deposits (1) 21,218 — — 21,218 — 21,218 — U.S. government notes 522,044 412 (6) 522,450 522,450 — — Corporate bonds 824,132 2,079 (401) 825,810 — 825,810 — Agency securities 453,773 387 (12) 454,148 — 454,148 — 1,873,093 2,878 (419) 1,875,552 522,450 1,353,102 — Other Assets: Money market funds - restricted 4,233 — — 4,233 4,233 — — Total Financial Assets $ 2,429,684 $ 2,878 $ (419) $ 2,432,143 $ 1,079,041 $ 1,353,102 $ — December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 562,580 $ — $ — $ 562,580 $ 562,580 $ — $ — Certificate of deposits (1) 4,001 — — 4,001 — 4,001 — 566,581 — — 566,581 562,580 4,001 — Marketable Securities: Commercial paper 66,717 — — 66,717 — 66,717 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 518,884 414 (20) 519,278 519,278 — — Corporate bonds 787,741 2,392 (73) 790,060 — 790,060 — Agency securities 233,491 577 (41) 234,027 — 234,027 — 1,609,833 3,383 (134) 1,613,082 519,278 1,093,804 — Other Assets: Money market funds - restricted 4,229 — — 4,229 4,229 — — Total Financial Assets $ 2,180,643 $ 3,383 $ (134) $ 2,183,892 $ 1,086,087 $ 1,097,805 $ — ______________________ (1) As of September 30, 2020 and December 31, 2019, all of our certificates of deposits were domestic deposits. |
Fair Value of Available-For-Sale Investments By Contractual Maturity | The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): September 30, 2020 Due in 1 year or less $ 1,161,664 Due in over 1 year through 2 years 713,888 Total marketable securities $ 1,875,552 |
Financial Statements Details (T
Financial Statements Details (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Components [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table is a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows (in thousands): September 30, 2020 September 30, 2019 Cash and cash equivalents $ 970,349 $ 1,095,265 Restricted cash included in Other assets 4,233 4,226 Total cash, cash equivalents and restricted cash $ 974,582 $ 1,099,491 |
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Accounts receivable $ 304,543 $ 398,147 Allowance for doubtful accounts (541) (638) Product sales rebate and returns reserve (3,785) (5,522) Accounts receivable, net $ 300,217 $ 391,987 |
Schedule of Inventories | Inventories consist of the following (in thousands): September 30, 2020 December 31, 2019 Raw materials $ 223,423 $ 96,712 Finished goods 214,679 147,113 Total inventories $ 438,102 $ 243,825 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid income taxes $ 564 $ 20,153 Inventory deposit 10,024 13,716 Other current assets 43,311 64,464 Other prepaid expenses and deposits 15,748 13,123 Total prepaid expenses and other current assets $ 69,647 $ 111,456 |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Equipment and machinery $ 67,978 $ 64,748 Computer hardware and software 39,335 36,627 Leasehold improvements 31,309 31,235 Furniture and fixtures 3,754 3,774 Construction-in-process 308 265 Property and equipment, gross 142,684 136,649 Less: accumulated depreciation (110,014) (97,376) Property and equipment, net $ 32,670 $ 39,273 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): September 30, 2020 December 31, 2019 Accrued payroll related costs $ 44,920 $ 80,133 Accrued manufacturing costs 30,154 31,920 Accrued product development costs 16,983 11,410 Accrued professional fees 5,152 6,335 Accrued warranty costs 6,732 6,742 Accrued taxes 1,866 1,716 Other 4,541 1,993 Total accrued liabilities $ 110,348 $ 140,249 |
Schedule of Warranty Accrual | The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Nine Months Ended September 30, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 4,507 3,887 Warranty costs incurred during the period (4,517) (3,841) Warranty accrual, end of period $ 6,732 $ 5,408 |
Schedule of Contract Balances | The following table summarizes the balances of our contract assets included in "Prepaid and other current assets" on the accompanying condensed consolidated balance sheets (in thousands): Nine Months Ended September 30, 2020 Contract assets, beginning balance $ 25,565 Contract assets, ending balance 6,004 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Contract liabilities, beginning balance $ 67,268 $ 42,026 $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (6,525) (3,700) (17,946) (10,134) Less: Beginning balance reclassified to deferred revenue (2,828) (1,689) (1,942) (967) Add: Contract liabilities recognized 12,362 13,506 29,115 28,649 Contract liabilities, ending balance $ 70,277 $ 50,143 $ 70,277 $ 50,143 |
Schedule of Deferred Revenue | The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Deferred revenue, beginning balance $ 577,511 $ 502,218 $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (103,889) (84,277) (243,422) (306,909) Add: Deferral of revenue in current period, excluding amounts recognized during the period 88,682 111,071 230,438 248,694 Deferred revenue, ending balance $ 562,304 $ 529,012 $ 562,304 $ 529,012 |
Schedule of Other Income (Expense), Net | Other income, net consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest income $ 4,319 $ 13,446 $ 24,649 $ 38,451 Gain on sale of marketable securities 9,432 — 9,432 — Gain on investment in privately-held companies — 4,277 — 5,427 Other income (expense), net (527) 1,446 (444) 1,435 Total $ 13,224 $ 19,169 $ 33,637 $ 45,313 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments in privately-held companies [Abstract] | |
Equity Securities without Readily Determinable Fair Value | The following table summarizes the activity related to our investments in privately-held companies held as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Cost of investment $ 3,000 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 1,150 1,150 Carrying amount of investment $ 4,150 $ 4,150 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Shares Repurchased | A summary of the stock repurchase activity under the Repurchase Program for the three and nine months ended September 30, 2020 is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Aggregate purchase price $ 167,278 $ 395,173 Shares repurchased 803 2,012 Average price paid per share $ 208.19 $ 196.43 |
Schedule of Option Activity | The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (800) 29.15 Options canceled (31) 121.24 Balance—September 30, 2020 3,733 $ 44.71 3.7 $ 610,580 Vested and exercisable—September 30, 2020 2,489 $ 31.62 3.3 $ 436,617 |
Schedule of Restricted Stock Units Activity | A summary of the RSU activity under the 2014 Plan and related information are presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 1,208 213.75 RSUs vested (375) 158.18 RSUs forfeited/canceled (81) 222.27 Unvested balance—September 30, 2020 1,822 $ 211.07 1.9 $ 377,024 |
Schedule of Shares Available for Grant | The following table presents the stock activity and the total number of shares available for grant under the 2014 Plan as of September 30, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (1,208) Options canceled 31 RSUs forfeited 81 Shares traded for taxes 26 Balance—September 30, 2020 16,368 |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expenses related to options, restricted stock units, restricted stock, and employee stock purchase rights granted were allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 1,806 $ 1,258 $ 4,718 $ 3,384 Research and development 21,423 13,472 56,729 39,171 Sales and marketing 9,083 7,832 23,756 21,463 General and administrative 4,157 3,695 11,744 10,827 Total stock-based compensation $ 36,469 $ 26,257 $ 96,947 $ 74,845 |
Schedule of Unrecognized Stock-Based Compensation Expense | As of September 30, 2020, unrecognized stock-based compensation expenses by award type and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years): September 30, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 31,114 $ 338,561 $ 12,641 $ 2,839 Weighted-average amortization period 2.7 years 3.4 years 1.4 years 2.0 years |
Net Income Per Share Availabl_2
Net Income Per Share Available to Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share Available to Common Stock | The following table sets forth the computation of our basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Basic: Net income $ 168,375 $ 208,895 $ 451,599 $ 599,175 Less: undistributed earnings allocated to participating securities — (96) — (314) Net income available to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Diluted: Net income attributable to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Add: undistributed earnings allocated to participating securities — 5 — 19 Net income attributable to common stockholders, diluted $ 168,375 $ 208,804 $ 451,599 $ 598,880 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,308 4,308 3,489 4,784 Employee stock purchase plan 6 19 6 19 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,313 80,753 79,519 81,104 Net income per share attributable to common stockholders: Basic $ 2.22 $ 2.73 $ 5.94 $ 7.85 Diluted $ 2.12 $ 2.59 $ 5.68 $ 7.38 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options and RSUs to purchase common stock 251 277 395 211 Employee stock purchase plan 17 41 84 59 Total 268 318 479 270 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 201,619 $ 247,775 $ 538,683 $ 675,098 Provision for income taxes 33,244 38,880 87,084 75,923 Effective tax rate 16.5 % 15.7 % 16.2 % 11.2 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Long Lived Assets, by Location | The following table represents revenue based on the customer’s location, as determined by the customer’s shipping address (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 452,693 $ 532,318 $ 1,289,182 $ 1,418,325 Europe, Middle East and Africa 89,588 75,439 226,189 298,768 Asia-Pacific 63,150 46,658 153,659 141,067 Total revenue $ 605,431 $ 654,415 $ 1,669,030 $ 1,858,160 Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location, are summarized as follows (in thousands): September 30, 2020 December 31, 2019 United States $ 24,469 $ 32,565 International 8,201 6,708 Total $ 32,670 $ 39,273 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Feb. 05, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 84,968 | $ 54,855 | |
Big Switch | |||
Business Acquisition [Line Items] | |||
Cash paid to acquire business | $ 73,300 | ||
Post-combination expense | 5,300 | ||
Acquisition related costs | 6,600 | ||
Total fair value of consideration transferred | 68,000 | ||
Goodwill | $ 29,926 |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Feb. 05, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 84,968 | $ 54,855 | |
Big Switch | |||
Business Acquisition [Line Items] | |||
Tangible assets | $ 13,376 | ||
Liabilities | (24,346) | ||
Intangible assets | 49,040 | ||
Goodwill | 29,926 | ||
Net assets acquired | $ 67,996 |
Business Combinations - Sched_2
Business Combinations - Schedule of Intangible Assets Acquired (Details) - Big Switch $ in Thousands | Feb. 05, 2020USD ($) |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 49,040 |
Developed technology | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 31,040 |
Intangible assets, weighted average useful life | 5 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 13,150 |
Intangible assets, weighted average useful life | 7 years |
Non-compete agreements | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 4,060 |
Intangible assets, weighted average useful life | 2 years |
Trade name | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 790 |
Intangible assets, weighted average useful life | 1 year |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Amortized Cost | $ 552,358 | $ 566,581 |
Cash Equivalents, Fair Value | 552,358 | 566,581 |
Marketable Securities, Amortized Cost | 1,873,093 | 1,609,833 |
Marketable Securities, Unrealized Gains | 2,878 | 3,383 |
Marketable Securities, Unrealized Losses | (419) | (134) |
Marketable Securities, Fair Value | 1,875,552 | 1,613,082 |
Total Financial Assets, Amortized Cost | 2,429,684 | 2,180,643 |
Total Financial Assets, Fair Value | 2,432,143 | 2,183,892 |
Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 552,358 | 562,580 |
Marketable Securities, Fair Value | 522,450 | 519,278 |
Total Financial Assets, Fair Value | 1,079,041 | 1,086,087 |
Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | 4,001 |
Marketable Securities, Fair Value | 1,353,102 | 1,093,804 |
Total Financial Assets, Fair Value | 1,353,102 | 1,097,805 |
Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | 0 |
Marketable Securities, Fair Value | 0 | 0 |
Total Financial Assets, Fair Value | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Amortized Cost | 478,702 | 562,580 |
Cash Equivalents, Fair Value | 478,702 | 562,580 |
Money market funds | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 478,702 | 562,580 |
Money market funds | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | 0 |
Money market funds | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | 0 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Amortized Cost | 73,656 | |
Cash Equivalents, Fair Value | 73,656 | |
U.S. Treasuries | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 73,656 | |
U.S. Treasuries | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | |
U.S. Treasuries | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 51,926 | 66,717 |
Marketable Securities, Unrealized Gains | 0 | 0 |
Marketable Securities, Unrealized Losses | 0 | 0 |
Marketable Securities, Fair Value | 51,926 | 66,717 |
Commercial paper | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
Commercial paper | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 51,926 | 66,717 |
Commercial paper | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
Certificate of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Amortized Cost | 4,001 | |
Cash Equivalents, Fair Value | 4,001 | |
Marketable Securities, Amortized Cost | 21,218 | 3,000 |
Marketable Securities, Unrealized Gains | 0 | 0 |
Marketable Securities, Unrealized Losses | 0 | 0 |
Marketable Securities, Fair Value | 21,218 | 3,000 |
Certificate of deposits | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | |
Marketable Securities, Fair Value | 0 | 0 |
Certificate of deposits | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 4,001 | |
Marketable Securities, Fair Value | 21,218 | 3,000 |
Certificate of deposits | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, Fair Value | 0 | |
Marketable Securities, Fair Value | 0 | 0 |
U.S. government notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 522,044 | 518,884 |
Marketable Securities, Unrealized Gains | 412 | 414 |
Marketable Securities, Unrealized Losses | (6) | (20) |
Marketable Securities, Fair Value | 522,450 | 519,278 |
U.S. government notes | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 522,450 | 519,278 |
U.S. government notes | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
U.S. government notes | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 824,132 | 787,741 |
Marketable Securities, Unrealized Gains | 2,079 | 2,392 |
Marketable Securities, Unrealized Losses | (401) | (73) |
Marketable Securities, Fair Value | 825,810 | 790,060 |
Corporate bonds | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
Corporate bonds | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 825,810 | 790,060 |
Corporate bonds | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 453,773 | 233,491 |
Marketable Securities, Unrealized Gains | 387 | 577 |
Marketable Securities, Unrealized Losses | (12) | (41) |
Marketable Securities, Fair Value | 454,148 | 234,027 |
Agency securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
Agency securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 454,148 | 234,027 |
Agency securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fair Value | 0 | 0 |
Money market funds - restricted | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Amortized Cost | 4,233 | 4,229 |
Other Assets, Fair Value | 4,233 | 4,229 |
Money market funds - restricted | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Fair Value | 4,233 | 4,229 |
Money market funds - restricted | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Fair Value | 0 | 0 |
Money market funds - restricted | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Fair Value | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Marketable securities, maximum maturity period | 24 months |
Marketable securities, weighted average remaining duration | 10 months 24 days |
Fair Value Measurements - Inves
Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Due in 1 year or less | $ 1,161,664 | |
Due in over 1 year through 2 years | 713,888 | |
Total marketable securities | $ 1,875,552 | $ 1,613,082 |
Financial Statements Details -
Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | ||
Balance Sheet Components [Abstract] | ||||||
Cash and cash equivalents | $ 970,349 | $ 1,111,286 | $ 1,095,265 | |||
Restricted cash included in Other assets | 4,233 | 4,226 | ||||
Total cash, cash equivalents and restricted cash | 974,582 | [1] | $ 1,115,515 | 1,099,491 | [1] | $ 654,164 |
Restricted cash, pledged as collateral | $ 4,000 | $ 4,000 | ||||
[1] | See Note 4 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash as shown in these condensed consolidated statements of cash flows. |
Financial Statements Details _2
Financial Statements Details - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Components [Abstract] | ||
Accounts receivable | $ 304,543 | $ 398,147 |
Allowance for doubtful accounts | (541) | (638) |
Product sales rebate and returns reserve | (3,785) | (5,522) |
Accounts receivable, net | $ 300,217 | $ 391,987 |
Financial Statements Details _3
Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Components [Abstract] | ||
Raw materials | $ 223,423 | $ 96,712 |
Finished goods | 214,679 | 147,113 |
Total inventories | $ 438,102 | $ 243,825 |
Financial Statements Details _4
Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Components [Abstract] | ||
Prepaid income taxes | $ 564 | $ 20,153 |
Inventory deposit | 10,024 | 13,716 |
Other current assets | 43,311 | 64,464 |
Other prepaid expenses and deposits | 15,748 | 13,123 |
Total prepaid expenses and other current assets | $ 69,647 | $ 111,456 |
Financial Statements Details _5
Financial Statements Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 142,684 | $ 142,684 | $ 136,649 | ||
Less: accumulated depreciation | (110,014) | (110,014) | (97,376) | ||
Property and equipment, net | 32,670 | 32,670 | 39,273 | ||
Depreciation | 4,900 | $ 4,800 | 15,100 | $ 14,300 | |
Equipment and machinery | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 67,978 | 67,978 | 64,748 | ||
Computer hardware and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 39,335 | 39,335 | 36,627 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 31,309 | 31,309 | 31,235 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 3,754 | 3,754 | 3,774 | ||
Construction-in-process | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 308 | $ 308 | $ 265 |
Financial Statements Details _6
Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Balance Sheet Components [Abstract] | ||||
Accrued payroll related costs | $ 44,920 | $ 80,133 | ||
Accrued manufacturing costs | 30,154 | 31,920 | ||
Accrued product development costs | 16,983 | 11,410 | ||
Accrued professional fees | 5,152 | 6,335 | ||
Accrued warranty costs | 6,732 | 6,742 | $ 5,408 | $ 5,362 |
Accrued taxes | 1,866 | 1,716 | ||
Other | 4,541 | 1,993 | ||
Total accrued liabilities | $ 110,348 | $ 140,249 |
Financial Statements Details _7
Financial Statements Details - Warranty Accrual (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Warranty [Roll Forward] | ||
Warranty accrual, beginning of period | $ 6,742 | $ 5,362 |
Liabilities accrued for warranties issued during the period | 4,507 | 3,887 |
Warranty costs incurred during the period | (4,517) | (3,841) |
Warranty accrual, end of period | $ 6,732 | $ 5,408 |
Financial Statements Details _8
Financial Statements Details - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Change in Contract with Customer, Asset [Roll Forward] | ||||
Contract assets, beginning balance | $ 25,565 | |||
Contract assets, ending balance | $ 6,004 | 6,004 | ||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Contract liabilities, beginning balance | 67,268 | $ 42,026 | 61,050 | $ 32,595 |
Less: Revenue recognized from beginning balance | (6,525) | (3,700) | (17,946) | (10,134) |
Less: Beginning balance reclassified to deferred revenue | (2,828) | (1,689) | (1,942) | (967) |
Add: Contract liabilities recognized | 12,362 | 13,506 | 29,115 | 28,649 |
Contract liabilities, ending balance | 70,277 | $ 50,143 | 70,277 | $ 50,143 |
Other Current Liabilities | ||||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Contract liabilities, beginning balance | 23,400 | |||
Contract liabilities, ending balance | $ 31,100 | $ 31,100 |
Financial Statements Details _9
Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Movement in Deferred Revenue [Roll Forward] | ||||
Deferred revenue, beginning balance | $ 577,511 | $ 502,218 | $ 575,288 | $ 587,227 |
Less: Revenue recognized from beginning balance | (103,889) | (84,277) | (243,422) | (306,909) |
Add: Deferral of revenue in current period, excluding amounts recognized during the period | 88,682 | 111,071 | 230,438 | 248,694 |
Deferred revenue, ending balance | $ 562,304 | $ 529,012 | $ 562,304 | $ 529,012 |
Financial Statements Details_10
Financial Statements Details - Performance Obligations (Details) $ in Millions | Sep. 30, 2020USD ($) |
Balance Sheet Components [Abstract] | |
Revenue, remaining performance obligation, amount | $ 676.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 81.00% |
Performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, percentage | 19.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 5 years |
Financial Statements Details_11
Financial Statements Details - Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance Sheet Components [Abstract] | ||||
Interest income | $ 4,319 | $ 13,446 | $ 24,649 | $ 38,451 |
Gain on sale of marketable securities | 9,432 | 0 | 9,432 | 0 |
Gain on investment in privately-held companies | 0 | 4,277 | 0 | 5,427 |
Other income (expense), net | (527) | 1,446 | (444) | 1,435 |
Total other income (expense), net | $ 13,224 | $ 19,169 | $ 33,637 | $ 45,313 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Equity Securities without Readily Determinable Fair Value | |||||
Cost of investment | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | ||
Cumulative impairment | 0 | 0 | 0 | ||
Cumulative upward adjustment | 1,150,000 | 1,150,000 | 1,150,000 | ||
Investments | 4,150,000 | 4,150,000 | $ 4,150,000 | ||
Equity Securities, Gain (Loss) | |||||
Realized gain (loss) | 0 | $ 4,300,000 | 0 | ||
Unrealized gain | $ 0 | $ 0 | $ 0 | $ 1,200,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Long-term Purchase Commitment [Line Items] | ||
Non-cancellable purchase commitments | $ 501.5 | |
Deposits to purchase inventory | 12.8 | $ 16.5 |
Contract with manufacturers and suppliers | ||
Long-term Purchase Commitment [Line Items] | ||
Non-cancellable purchase commitments | $ 484.8 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | Jan. 01, 2020 | Sep. 30, 2020 | Apr. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized amount for stock repurchases | $ 1,000,000,000 | ||
Remaining authorized repurchase amount | $ 338,700,000 | ||
Number of additional shares authorized for issuance (in shares) | 2,292,000 | ||
2014 Equity Incentive Plan | Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares authorized for issuance (in shares) | 2,291,660 | ||
Percent of shares outstanding to increase number of shares available for grant and issuance | 3.00% | ||
Maximum increase of number of shares available for issuance (in shares) | 12,500,000 | ||
Common stock reserved for issuance (in shares) | 21,900,000 | ||
2014 Employee Stock Purchase Plan | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares authorized for issuance (in shares) | 763,886 | ||
Percent of shares outstanding to increase number of shares available for grant and issuance | 1.00% | ||
Maximum increase of number of shares available for issuance (in shares) | 2,500,000 | ||
Common stock reserved for issuance (in shares) | 3,850,993 | ||
Shares issued during period (in shares) | 105,667 | ||
Weighted-average purchase price (in dollars per share) | $ 183.45 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate purchase price | $ 167,278 | $ 114,609 | $ 395,173 | $ 214,617 |
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate purchase price | $ 167,278 | $ 395,173 | ||
Shares repurchased (in shares) | 803 | 512 | 2,012 | 919 |
Average price paid per share (in dollars per share) | $ 208.19 | $ 196.43 |
Stockholders' Equity - Option A
Stockholders' Equity - Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Number of Shares Underlying Outstanding Options | ||
Outstanding, beginning balance (in shares) | 4,564 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | (800) | |
Options canceled (in shares) | (31) | |
Outstanding, ending balance (in shares) | 3,733 | 4,564 |
Vested and exercisable (in shares) | 2,489 | |
Weighted- Average Exercise Price per Share | ||
Outstanding, beginning balance (in dollars per share) | $ 42.50 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 29.15 | |
Options canceled (in dollars per share) | 121.24 | |
Outstanding, ending balance (in dollars per share) | 44.71 | $ 42.50 |
Vested and exercisable (in dollars per share) | $ 31.62 | |
Weighted- Average Remaining Contractual Term (Years) and Aggregate Intrinsic Value of Stock Options | ||
Weighted-average remaining contractual term of stock options outstanding | 3 years 8 months 12 days | 4 years 4 months 24 days |
Weighted-average remaining contractual term of stock options vested and exercisable | 3 years 3 months 18 days | |
Aggregate intrinsic value of stock options outstanding | $ 610,580 | $ 740,387 |
Aggregate intrinsic value of stock options outstanding, vested and exercisable | $ 436,617 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Unit (RSU) Activities (Details) - RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Unvested beginning balance (in shares) | 1,070 | |
RSUs granted (in shares) | 1,208 | |
RSUs vested (in shares) | (375) | |
RSUs forfeited/canceled (in shares) | (81) | |
Unvested ending balance (in shares) | 1,822 | 1,070 |
Weighted- Average Grant Date Fair Value Per Share | ||
Unvested beginning balance (in dollars per share) | $ 190.35 | |
RSUs granted (in dollars per share) | 213.75 | |
RSUs vested (in dollars per share) | 158.18 | |
RSUs forfeited/canceled (in dollars per share) | 222.27 | |
Unvested ending balance (in dollars per share) | $ 211.07 | $ 190.35 |
Restricted Stock Unit Activities, Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Unvested, weighted average remaining contractual term (in years) | 1 year 10 months 24 days | 1 year 6 months |
Unvested, aggregate intrinsic value | $ 377,024 | $ 217,701 |
Stockholders' Equity - Shares A
Stockholders' Equity - Shares Available for Grant (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2020shares | |
Number of Shares | |
Beginning balance (in shares) | 15,146 |
Authorized (in shares) | 2,292 |
Options granted (in shares) | 0 |
Options canceled (in shares) | 31 |
Shares traded for taxes (in shares) | 26 |
Ending balance (in shares) | 16,368 |
RSU | |
Number of Shares | |
RSUs granted (in shares) | (1,208) |
RSUs forfeited (in shares) | 81 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 36,469 | $ 26,257 | $ 96,947 | $ 74,845 |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 31,114 | $ 31,114 | ||
Weighted-average amortization period | 2 years 8 months 12 days | |||
RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 338,561 | $ 338,561 | ||
Weighted-average amortization period | 3 years 4 months 24 days | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 12,641 | $ 12,641 | ||
Weighted-average amortization period | 1 year 4 months 24 days | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 2,839 | $ 2,839 | ||
Weighted-average amortization period | 2 years | |||
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 1,806 | 1,258 | $ 4,718 | 3,384 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 21,423 | 13,472 | 56,729 | 39,171 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 9,083 | 7,832 | 23,756 | 21,463 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 4,157 | $ 3,695 | $ 11,744 | $ 10,827 |
Net Income Per Share Availabl_3
Net Income Per Share Available to Common Stock - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic: | ||||
Net Income (Loss) Attributable to Parent | $ 168,375 | $ 208,895 | $ 451,599 | $ 599,175 |
Less: undistributed earnings allocated to participating securities | 0 | (96) | 0 | (314) |
Net income attributable to common stockholders, basic | 168,375 | 208,799 | 451,599 | 598,861 |
Diluted: | ||||
Net income attributable to common stockholders, basic | 168,375 | 208,799 | 451,599 | 598,861 |
Add: undistributed earnings allocated to participating securities | 0 | 5 | 0 | 19 |
Net income attributable to common stockholders, diluted | $ 168,375 | $ 208,804 | $ 451,599 | $ 598,880 |
Denominator: | ||||
Weighted-average shares used in computing net income per share available to common stockholders, basic (in shares) | 75,999 | 76,426 | 76,024 | 76,301 |
Add weighted-average effect of dilutive securities: | ||||
Stock options and RSUs (in shares) | 3,308 | 4,308 | 3,489 | 4,784 |
Employee stock purchase plan (in shares) | 6 | 19 | 6 | 19 |
Weighted-average shares used in computing net income per share available to common stockholders, diluted (in shares) | 79,313 | 80,753 | 79,519 | 81,104 |
Net income per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 2.22 | $ 2.73 | $ 5.94 | $ 7.85 |
Diluted (in dollars per share) | $ 2.12 | $ 2.59 | $ 5.68 | $ 7.38 |
Net Income Per Share Availabl_4
Net Income Per Share Available to Common Stock - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 268 | 318 | 479 | 270 |
Stock options and RSUs to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 251 | 277 | 395 | 211 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 17 | 41 | 84 | 59 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 201,619 | $ 247,775 | $ 538,683 | $ 675,098 |
Provision for income taxes | $ 33,244 | $ 38,880 | $ 87,084 | $ 75,923 |
Effective tax rate | 16.50% | 15.70% | 16.20% | 11.20% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||||
Number of Reportable Segments | segment | 1 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 605,431 | $ 654,415 | $ 1,669,030 | $ 1,858,160 | |
Long-lived assets | 32,670 | 32,670 | $ 39,273 | ||
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 452,693 | 532,318 | 1,289,182 | 1,418,325 | |
Europe, Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 89,588 | 75,439 | 226,189 | 298,768 | |
Asia-Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 63,150 | $ 46,658 | 153,659 | $ 141,067 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | 24,469 | 24,469 | 32,565 | ||
International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 8,201 | $ 8,201 | $ 6,708 |