0001262039-13-000027 | 10-Q | XBRL Viewer

Stock Plans (Tables)

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions And Allocation of Recognized Period Costs [Table Text Block]

The following table summarizes the weighted-average assumptions relating to our employee stock options:



	Three Months Ended
	March 31, 2012
Expected term in years	4.6
Volatility (%)	52
Risk-free interest rate (%)	0.7
Dividend rate (%)	—

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Additional information related to our stock options is summarized below ($ amounts in 000’s, except per share amounts):



	Three Months Ended
	March 31, 2013	March 31, 2012
Weighted-average fair value per share granted	—	11.23
Intrinsic value of options exercised	26,059	38,102
Fair value of options vested	11,004	8,193

The following table summarizes the stock option activity and related information for the periods presented below (in 000’s, except per share amounts, exercise prices and contractual life):



	Options Outstanding
	Number of Shares		Weighted- Average Exercise Price ($)	Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value ($)
Balance—December 31, 2012	18,571		12.40
Forfeited	(325	)	21.05
Exercised	(1,464	)	5.41
Balance—March 31, 2013	16,782		12.84		189,979
Options vested and expected to vest—March 31, 2013	16,751		12.82	4.0	189,932
Options exercisable—March 31, 2013	11,157		8.63	3.3	170,182

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

The following table summarizes the activity and related information for RSUs for the period presented below (in 000’s, except per share amounts):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted-Average Grant-Date-Fair Value per Share ($)
Balance—December 31, 2012	830		23.73
Granted	2,072		23.31
Forfeited	(70	)	23.64
Balance—March 31, 2013	2,832		23.44
RSUs expected to vest—March 31, 2013	2,607		23.44

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

In determining the fair value of the shares subject to our ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions:



	Three Months Ended
	March 31, 2013	March 31, 2012
Expected term in years	0.5	0.5
Volatility (%)	48	58
Risk-free interest rate (%)	0.1	0.2
Dividend rate (%)	—	—

Additional information related to our ESPP is provided below (in 000’s, except per share amounts):



	Three Months Ended
	March 31, 2013	March 31, 2012
Weighted-average fair value per share granted ($)	6.83	8.08
Shares issued under the ESPP	329	288
Weighted-average price per share issued ($)	19.91	17.51

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

Stock-based compensation expense is included in costs and expenses as follows ($ amounts in 000’s):



	Three Months Ended
	March 31, 2013	March 31, 2012
Cost of product revenue	90	64
Cost of services revenue	1,020	745
Research and development	2,766	1,957
Sales and marketing	4,118	3,443
General and administrative	1,305	1,037
Total stock-based compensation expense	9,299	7,246

The following table summarizes stock-based compensation expense by award type ($ amounts in 000’s)



	Three Months Ended
	March 31, 2013	March 31, 2012
Stock options	5,486	6,316
RSUs	2,674	—
ESPP	1,139	930
Total stock-based compensation expense	9,299	7,246

Income Tax Benefit from Stock Option Plans [Table Text Block]

Total income tax benefit from employee stock option plans that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s):



	Three Months Ended
	March 31, 2013	March 31, 2012
Income tax benefit from employee stock option plans	3,587	6,674

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Net Income Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding, plus the dilutive effects of stock options, restricted stock units (“RSUs”), and the employee stock purchase plan (“ESPP”). Potentially dilutive shares of common stock are determined by applying the treasury stock method.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows ($ and share amounts in 000’s, except per share amounts):



	Three Months Ended
	March 31, 2013	March 31, 2012
Numerator:
Net income	12,249	14,173

Denominator:
Basic shares:
Weighted-average common stock outstanding-basic	161,282	156,010
Diluted shares:
Weighted-average common stock outstanding-basic	161,282	156,010
Effect of potentially dilutive securities:
Stock options	6,457	9,699
RSUs	72	—
ESPP	12	42
Weighted-average shares used to compute diluted net income per share	167,823	165,751
Net income per share:
Basic	0.08	0.09
Diluted	0.07	0.09

The following weighted-average shares of common stock were excluded from the computation of diluted net income per share for the periods presented, as their effect would have been antidilutive (in 000’s):



	Three Months Ended
	March 31, 2013	March 31, 2012
Stock options	6,751	6,028
RSUs	1,069	—
ESPP	331	262
	8,151	6,290

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2013	Apr. 30, 2013
Document Information [Line Items]
Entity Registrant Name	FORTINET INC
Entity Central Index Key	0001262039
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		162,225,326

Commitments and Contingencies , Purchase Obligations (Details) $ in Millions	Mar. 31, 2013 USD ($)
Independent Contract Manufacturing [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Open purchase orders and other contractual obligations	$ 36.6
Other Purchase Obligations [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Open purchase orders and other contractual obligations	$ 9.2

Commitments and Contingencies , Minimum Operating Lease Payments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2013 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Total incremental lease payments	$ 14,300
Fiscal Years:
2013 (remainder)	6,481
2014	5,121
2015	3,630
2016	3,230
2017	2,905
Thereafter	7,254
Total	$ 28,621

Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases—We lease certain facilities under various non-cancelable operating leases, which expire through 2020. In March 2013, we extended the operating lease for one of our existing facilities in Canada through 2020. The total incremental lease payments are $14.3 million. Rent expense was $2.3 million and $2.2 million during the three months ended March 31, 2013 and March 31, 2012, respectively. Rent expense is recognized using the straight-line method over the term of the lease. The aggregate future non-cancelable minimum rental payments on operating leases as of March 31, 2013 are as follows ($ amounts in 000’s):



	Rental Payment
Fiscal Years:
2013 (remainder)	6,481
2014	5,121
2015	3,630
2016	3,230
2017	2,905
Thereafter	7,254
Total	28,621

Contract Manufacturer and Other Commitments—Our independent contract manufacturers procure components and build our products based on our forecasts. These forecasts are based on estimates of future demand for our products, which are in turn based on historical trends and an analysis from our sales and marketing organizations, adjusted for overall market conditions. In order to reduce manufacturing lead times and plan for adequate component supply, we may issue purchase orders to some of our independent contract manufacturers which may not be cancellable. As of March 31, 2013, we had $36.6 million of open purchase orders with our independent contract manufacturers that may not be cancellable.

In addition to commitments with contract manufacturers, we have open purchase orders and contractual obligations in the ordinary course of business for which we have not received goods or services. As of March 31, 2013, we had $9.2 million in other purchase commitments.

Warranties—We generally provide a 1-year warranty on hardware products and a 90-day warranty on software.

Accrued warranty activities are summarized as follows ($ amounts in 000’s):



	For The Three Months Ended And As Of		For The Year Ended And As Of
	March 31, 2013		December 31, 2012
Accrued warranty balance—beginning of the period	2,309		2,582
Warranty costs incurred	(759	)	(2,669	)
Provision for warranty	674		2,639
Changes in prior period estimates	60		(243	)
Accrued warranty balance—end of the period	2,284		2,309

Litigation—In August 2009, Enhanced Security Research, LLC and Security Research Holdings LLC (collectively “ESR”), a non-practicing entity, filed a complaint against us in the United States District Court for the District of Delaware alleging infringement by us and other defendants of two patents. The plaintiffs are claiming unspecified damages and requesting an injunction against the alleged infringement. In June 2010, the Court granted our motion to stay pending the outcome of reexamination proceedings in the U.S. Patent and Trademark Office (“PTO”) on both asserted patents. The PTO rejected all of the claims of the patents in the suit and ESR appealed this result to the Board of Patent Appeals and Interferences (“BPAI”). In August 2012, the BPAI completed its review of both reexamination proceedings, and, after the BPAI’s review, all claims of the asserted ESR patents remain rejected. In October 2012, ESR filed an additional appeal of the BPAI decision with the United States Court of Appeal for the Federal Circuit. That appeal is still pending. We have determined that, as of this time, there is not a reasonable possibility that a loss has been incurred.

In July 2010, Network Protection Sciences, LLC (“NPS”), a non-practicing entity, filed a complaint in the United States District Court for the Eastern District of Texas alleging patent infringement by us and other defendants. NPS is claiming unspecified damages, including treble damages for willful infringement, and requests an injunction against such alleged infringement. In December 2011, the United States District Court for the Eastern District of Texas ordered the case to be transferred to the Northern District of California. In June 2012, the United States District Court for the Northern District of California dismissed the other defendants for misjoinder, and the case is proceeding with Fortinet as the sole defendant. This case is currently scheduled for a jury trial starting in September 2013. We have determined that, as of this time, there is not a reasonable possibility that a loss has been incurred.

In June 2012, we received a letter from SRI International, (“SRI”) claiming that we infringed certain SRI patents. Subsequently, we filed a complaint in the United States District Court for the Northern District of California seeking declaratory relief and a judgment that the SRI patents were invalid, unenforceable and not infringed by any of our products or services. The case is proceeding in the United States District Court for the Northern District of California. The case is currently in the early stages, and we have determined that, as of this time, there is not a reasonable possibility that a loss has been incurred.

Indemnification—Under the indemnification provisions of our standard sales contracts, we agree to defend our customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks, or trade secrets, and to pay judgments entered on such claims. Our exposure under these indemnification provisions is generally limited by the terms of our contracts to the total amount paid by our customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of the amount received under the agreement. To date, there have been no claims under such indemnification provisions.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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+ Details

Employee Benefit Plan	3 Months Ended
Employee Benefit Plan	Mar. 31, 2013
Employee Benefit Plan [Abstract]
EMPLOYEE BENEFIT PLAN	The 401(k) tax-deferred savings plan (the “401(k) Plan”) permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. Under the 401(k) Plan, participating employees may defer a portion of their pre-tax earnings, up to the annual contribution limit specified by the Internal Revenue Service (“IRS”). In Canada, we have a Group Registered Retirement Savings Plan program (the “RRSP”) which permits participants to make tax deductible contributions up to the maximum contribution limits under the Income Tax Act. Our matching contributions to the 401(k) Plans and RRSP were $0.5 million for each of the three months ended March 31, 2013 and March 31, 2012.

Property and Equipment—Net

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT—NET

PROPERTY AND EQUIPMENT—Net

Property and equipment consisted of the following ($ amounts in 000’s):



	March 31, 2013		December 31, 2012
Land	13,895		13,895
Building and building improvements	610		610
Evaluation units	19,708		18,322
Computer equipment and software	18,483		17,176
Furniture and fixtures	1,637		1,501
Leasehold improvements and tooling	5,510		5,354
Total property and equipment	59,843		56,858
Less: accumulated depreciation	(34,040	)	(31,220	)
Property and equipment—net	25,803		25,638

Depreciation expense was $3.2 million and $2.1 million for the three months ended March 31, 2013 and March 31, 2012, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Inventory (Tables)

3 Months Ended

Mar. 31, 2013

Inventory Disclosure [Abstract]

Inventory [Table Text Block]

Inventory consisted of the following ($ amounts in 000’s):



	March 31, 2013	December 31, 2012
Raw materials	5,226	4,958
Finished goods	18,707	16,102
Inventory	23,933	21,060

Deferred Revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Deferred Revenue Arrangement [Line Items]
Short-term	$ 257,332	$ 247,268
Long-term	119,082	115,917
Total deferred revenue	376,414	363,185
Product [Member]
Deferred Revenue Arrangement [Line Items]
Total deferred revenue	4,823	5,411
Services [Member]
Deferred Revenue Arrangement [Line Items]
Total deferred revenue	363,739	348,548
Ratable and other revenue [Member]
Deferred Revenue Arrangement [Line Items]
Total deferred revenue	$ 7,852	$ 9,226

- Definition

The noncurrent portion of deferred revenue amount as of balance sheet date. Deferred revenue is a liability related to a revenue producing activity for which revenue has not yet been recognized, and is not expected to be recognized in the next twelve months. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Net income	$ 12,249	$ 14,173
Other comprehensive (loss) income, net of reclassification adjustments:
Foreign currency translation gains (losses)	(952)	558
Unrealized gains on investments	42	1,799
Tax provision related to items of other comprehensive income or loss	(15)	(629)
Other comprehensive (loss) income, net of tax	(925)	1,728
Comprehensive income	$ 11,324	$ 15,901

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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- Definition

Amount before tax, net of reclassification adjustments, resulting from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency, and from transactions whose terms are denominated in a currency other than the entity's functional currency, which is attributable to the parent entity.

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+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

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-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Before tax and reclassification adjustments amount of unrealized holding gain (loss) and transfers on available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 24
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Goodwill and Other Intangible Assets—Net (Tables)

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Other Intangible Assets Major Class [Table Text Block]

The following table presents other intangible assets ($ amounts in 000’s):



	March 31, 2013
	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets:
Developed technology	5,826	1,728	4,098
Customer relationships	500	—	500
	6,326	1,728	4,598
Indefinite-lived other intangible assets:
In-process research and development			2,600
Total other intangible assets			7,198



	December 31, 2012
	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets:
Developed technology	3,541	1,424	2,117
Total other intangible assets	3,541	1,424	2,117

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

he following table summarizes estimated future amortization expense of other intangible assets with finite lives for future fiscal years ($ amounts in 000’s):



	Amount
Fiscal Years:
2013 (remainder)	1,287
2014	1,168
2015	737
2016	472
2017	467
2018	467
Total	4,598

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Movement in Standard Product Warranty Accrual [Roll Forward]
Accrued warranty balance—beginning of the period	$ 2,309	$ 2,582	$ 2,582
Warranty costs incurred	(759)		(2,669)
Provision for warranty	674		2,639
Changes in prior period estimates	60		(243)
Accrued warranty balance—end of the period	2,284		$ 2,309
Rent expense	$ 2,300	$ 2,200

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Income Tax Contingency [Line Items]
Effective tax rate	28.00%	28.00%
Unrecognized tax benefits	$ 30.2		$ 27.8
Unrecognized tax benefits which, if recognized, would favorably impact the effective tax rate	29.7
Accrued interest and penalties related to uncertain tax provisions	$ 1.9

Financial Instruments and Fair Value

3 Months Ended

Mar. 31, 2013

Financial Instruments and Fair Value [Abstract]

FINANCIAL INSTRUMENTS AND FAIR VALUE

The following table summarizes our investments ($ amounts in 000’s):



	March 31, 2013
	Amortized Cost	Unrealized Gains	Unrealized Losses		Fair Value
Corporate debt securities	559,417	1,944	(251	)	561,110
Commercial paper	76,408	23	(8	)	76,423
Municipal bonds	38,939	94	(6	)	39,027
Certificates of deposit and term deposits	8,590	5	(1	)	8,594
Total available-for-sale securities	683,354	2,066	(266	)	685,154

	December 31, 2012
	Amortized Cost	Unrealized Gains	Unrealized Losses		Fair Value
Corporate debt securities	529,738	1,814	(161	)	531,391
Commercial paper	39,229	22	(6	)	39,245
Municipal bonds	36,787	83	—		36,870
Certificates of deposit and term deposits	9,099	6	—		9,105
Total available-for-sale securities	614,853	1,925	(167	)	616,611

The following table shows the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position, as of March 31, 2013 ($ amounts in 000’s):



	Less Than 12 Months			12 Months or Greater		Total
	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Corporate debt securities	168,514	(251	)	—	—	168,514	(251	)
Commercial paper	11,279	(8	)	—	—	11,279	(8	)
Municipal bonds	7,074	(6	)	—	—	7,074	(6	)
Certificates of deposit and term deposits	1,000	(1	)	—	—	1,000	(1	)
Total available-for-sale securities	187,867	(266	)	—	—	187,867	(266	)

The following table shows the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position, as of December 31, 2012 ($ amounts in 000’s):



	Less Than 12 Months			12 Months or Greater			Total
	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
Corporate debt securities	133,006	(156	)	5,010	(5	)	138,016	(161	)
Commercial paper	8,464	(6	)	—	—		8,464	(6	)
Total available-for-sale securities	141,470	(162	)	5,010	(5	)	146,480	(167	)

The contractual maturities of our investments were as follows ($ amounts in 000’s)



	March 31, 2013	December 31, 2012
Due within one year	362,996	290,719
Due within one to three years	322,158	325,892
Total	685,154	616,611

Realized gains or losses from the sale of available-for-sale securities were not significant for any of the periods presented.

The following table presents the fair value of our financial assets measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012 ($ amounts in 000’s):



	March 31, 2013			December 31, 2012
	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs
		(Level 1)	(Level 2)		(Level 1)	(Level 2)
Assets:
Corporate debt securities	561,110	—	561,110	531,391	—	531,391
Commercial paper	80,822	—	80,822	41,994	—	41,994
Municipal bonds	39,027	—	39,027	36,870	—	36,870
Certificates of deposit and term deposits	8,594	—	8,594	9,105	—	9,105
Money market funds	12,528	12,528	—	39,871	39,871	—
Total	702,081	12,528	689,553	659,231	39,871	619,360
Reported as:
Cash equivalents	16,927			42,620
Short-term investments	362,996			290,719
Long-term investments	322,158			325,892
Total	702,081			659,231

We did not hold financial assets or liabilities which were recorded at fair value using inputs in the Level 3 category as of March 31, 2013 or December 31, 2012. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2013.

Foreign Currency Derivatives

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FOREIGN CURRENCY DERIVATIVES

The notional amount of forward exchange contracts to hedge balance sheet accounts as of March 31, 2013 was ($ amounts in 000’s):



	Buy/Sell	Notional
Balance Sheet Contracts:
Currency
CAD	Buy	22,164

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
REVENUE:
Product	$ 57,950	$ 53,204
Services	75,896	62,138
Ratable and other revenue	1,974	1,905
Total revenue	135,820	117,247
COST OF REVENUE:
INTEREST INCOME	1,369	1,085
Product	22,958	19,067
Services	15,574	11,213
Ratable and other revenue	596	763
Total cost of revenue	39,128	31,043
GROSS PROFIT:
Product	34,992	34,137
Services	60,322	50,925
Ratable and other revenue	1,378	1,142
Total gross profit	96,692	86,204
OPERATING EXPENSES:
Research and development	23,334	19,667
Sales and marketing	49,976	42,036
General and administrative	7,991	5,786
Total operating expenses	81,301	67,489
OPERATING INCOME	15,391	18,715
OTHER INCOME (EXPENSE)—Net	215	(71)
INCOME BEFORE INCOME TAXES	16,975	19,729
PROVISION FOR INCOME TAXES	$ 4,726	$ 5,556
Net income per share:
Basic (in dollars per share)	$ 0.08	$ 0.09
NET INCOME	$ 12,249	$ 14,173
Diluted (in dollars per share)	$ 0.07	$ 0.09
Weighted-average shares outstanding:
Basic (in shares)	161,282	156,010
Diluted (in shares)	167,823	165,751

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Inventory, Net [Abstract]
Raw materials	$ 5,226	$ 4,958
Finished goods	18,707	16,102
Inventory	$ 23,933	$ 21,060

Stock Plans

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK PLANS

STOCKHOLDERS’ EQUITY

Employee Stock Options

The following table summarizes the weighted-average assumptions relating to our employee stock options:



	Three Months Ended
	March 31, 2012
Expected term in years	4.6
Volatility (%)	52
Risk-free interest rate (%)	0.7
Dividend rate (%)	—

There were no stock options granted during the three months ended March 31, 2013.

The following table summarizes the stock option activity and related information for the periods presented below (in 000’s, except per share amounts, exercise prices and contractual life):



	Options Outstanding
	Number of Shares		Weighted- Average Exercise Price ($)	Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value ($)
Balance—December 31, 2012	18,571		12.40
Forfeited	(325	)	21.05
Exercised	(1,464	)	5.41
Balance—March 31, 2013	16,782		12.84		189,979
Options vested and expected to vest—March 31, 2013	16,751		12.82	4.0	189,932
Options exercisable—March 31, 2013	11,157		8.63	3.3	170,182

The aggregate intrinsic value represents the pre-tax difference between the exercise price of stock options and the quoted market price of our common stock on March 31, 2013, for all in-the-money options. As of March 31, 2013, total compensation expense related to unvested stock options granted to employees but not yet recognized was $58.1 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average period of 2.4 years.

Additional information related to our stock options is summarized below ($ amounts in 000’s, except per share amounts):



	Three Months Ended
	March 31, 2013	March 31, 2012
Weighted-average fair value per share granted	—	11.23
Intrinsic value of options exercised	26,059	38,102
Fair value of options vested	11,004	8,193

Restricted Stock Units

The following table summarizes the activity and related information for RSUs for the period presented below (in 000’s, except per share amounts):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted-Average Grant-Date-Fair Value per Share ($)
Balance—December 31, 2012	830		23.73
Granted	2,072		23.31
Forfeited	(70	)	23.64
Balance—March 31, 2013	2,832		23.44
RSUs expected to vest—March 31, 2013	2,607		23.44

As of March 31, 2013, total compensation expense related to unvested RSUs that were granted to employees and non-employees, but not yet recognized, was $64.7 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 3.7 years.

Employee Stock Purchase Plan

In determining the fair value of the shares subject to our ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions:



	Three Months Ended
	March 31, 2013	March 31, 2012
Expected term in years	0.5	0.5
Volatility (%)	48	58
Risk-free interest rate (%)	0.1	0.2
Dividend rate (%)	—	—

Additional information related to our ESPP is provided below (in 000’s, except per share amounts):



	Three Months Ended
	March 31, 2013	March 31, 2012
Weighted-average fair value per share granted ($)	6.83	8.08
Shares issued under the ESPP	329	288
Weighted-average price per share issued ($)	19.91	17.51

Stock-based Compensation Expense

Stock-based compensation expense is included in costs and expenses as follows ($ amounts in 000’s):



	Three Months Ended
	March 31, 2013	March 31, 2012
Cost of product revenue	90	64
Cost of services revenue	1,020	745
Research and development	2,766	1,957
Sales and marketing	4,118	3,443
General and administrative	1,305	1,037
Total stock-based compensation expense	9,299	7,246

The following table summarizes stock-based compensation expense by award type ($ amounts in 000’s)



	Three Months Ended
	March 31, 2013	March 31, 2012
Stock options	5,486	6,316
RSUs	2,674	—
ESPP	1,139	930
Total stock-based compensation expense	9,299	7,246

Total income tax benefit from employee stock option plans that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s):



	Three Months Ended
	March 31, 2013	March 31, 2012
Income tax benefit from employee stock option plans	3,587	6,674

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

SEGMENT AND SIGNIFICANT CUSTOMER INFORMATION

The following tables set forth revenue and property and equipment by geographic region ($ amounts in 000’s):



	Three Months Ended
Revenue	March 31, 2013	March 31, 2012
Americas:
United States	34,788	31,119
Other Americas	17,839	15,312
Total Americas	52,627	46,431
Europe, Middle East and Africa (“EMEA”)	47,326	40,886
Asia Pacific and Japan (“APAC”)	35,867	29,930
Total revenue	135,820	117,247

During the three months ended March 31, 2013 and March 31, 2012, one distributor, Exclusive Networks Group, accounted for 12% and 11% of total revenue, respectively.



Property and Equipment	March 31, 2013	December 31, 2012
Americas:
United States	19,281	18,764
Canada	3,813	4,376
Other Americas	56	87
Total Americas	23,150	23,227
EMEA	1,652	1,213
APAC	1,001	1,198
Total property and equipment—net	25,803	25,638

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Foreign Currency Derivatives (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The notional amount of forward exchange contracts to hedge balance sheet accounts as of March 31, 2013 was ($ amounts in 000’s):



	Buy/Sell	Notional
Balance Sheet Contracts:
Currency
CAD	Buy	22,164

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows ($ and share amounts in 000’s, except per share amounts):



	Three Months Ended
	March 31, 2013	March 31, 2012
Numerator:
Net income	12,249	14,173

Denominator:
Basic shares:
Weighted-average common stock outstanding-basic	161,282	156,010
Diluted shares:
Weighted-average common stock outstanding-basic	161,282	156,010
Effect of potentially dilutive securities:
Stock options	6,457	9,699
RSUs	72	—
ESPP	12	42
Weighted-average shares used to compute diluted net income per share	167,823	165,751
Net income per share:
Basic	0.08	0.09
Diluted	0.07	0.09

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]



	Three Months Ended
	March 31, 2013	March 31, 2012
Stock options	6,751	6,028
RSUs	1,069	—
ESPP	331	262
	8,151	6,290

Business Combinations (Details) - USD ($)	3 Months Ended
Business Combinations (Details) - USD ($)	Mar. 31, 2013	Sep. 30, 2012	Mar. 21, 2013	Dec. 07, 2012	Mar. 08, 2012
Business Acquisition [Line Items]
Goodwill	$ 2,800,000
Coyote Point Systems Inc [Member]
Business Acquisition [Line Items]
Goodwill			$ 2,800,000
Total consideration			6,000,000
Business Acquisition, Contingent Consideration, at Fair Value	$ 5,500,000
Cash and cash equivalents			206,000
Other current assets			501,000
Finite-lived intangible assets			2,800,000
Indefinite-lived intangible assets			2,600,000
Goodwill			2,766,000
Other assets			88,000
Total assets acquired			8,961,000
Current liabilities			1,078,000
Long-term liabilities			1,898,000
Total liabilities assumed			2,976,000
Total purchase price			5,985,000
Coyote Point Systems Inc [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Asset, Amount			500,000
Finite-Lived Intangible Asset, Useful Life	6 years
Coyote Point Systems Inc [Member] \| Technology-Based Intangible Assets [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Asset, Amount			2,300,000
Finite-Lived Intangible Asset, Useful Life	6 years
XDN, Inc [Member]
Business Acquisition [Line Items]
Total consideration				$ 500,000
Finite-lived intangible assets				$ 500,000
IntruGuard Devices, Inc [Member]
Business Acquisition [Line Items]
Total consideration					$ 1,000,000
Amount withheld in escrow					400,000
Purchased tangible assets					53,000
Liabilities assumed					43,000
Purchased identifiable intangible assets					$ 900,000
Released amounts previously withheld in escrow	$ 200,000	$ 200,000
Contingent consideration payable after eighteen months [Member] \| Coyote Point Systems Inc [Member]
Business Acquisition [Line Items]
Business Acquisition, Contingent Consideration, Potential Cash Payment	3,500,000
Contingent consideration payable after two years [Member] \| Coyote Point Systems Inc [Member]
Business Acquisition [Line Items]
Business Acquisition, Contingent Consideration, Potential Cash Payment	$ 2,000,000
In Process Research and Development [Member] \| Coyote Point Systems Inc [Member]
Business Acquisition [Line Items]
In-process research and development			$ 2,600,000

Stock Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Income tax benefit from employee stock option plans	$ 3,587	$ 6,674
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term in years		4 years 7 months 6 days
Volatility (%)		52.00%
Risk-free interest rate (%)		0.70%
Dividend rate (%)		0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance - Beginning (in shares)	18,571
Forfeited (in shares)	(325)
Exercised (in shares)	(1,464)
Balance - End (in shares)	16,782
Options vested and expected to vest (in shares)	16,751
Balance - Ending (in shares)	11,157
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Balance - Beginning (in dollars per share)	$ 12.40
Forfeited (in dollars per share)	21.05
Exercised (in dollars per share)	5.41
Balance - Ending (in dollars per share)	12.84
Options vested and expected to vest, Weighted average exercise price (in dollars per share)	12.82
Options exercisable, Weighted average exercise price (in dollars per share)	$ 8.63
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options vested and expected to vest, Weighted average remaining contractual life (in years)	4 years
Options exercisable, Weighted average remaining contractual life (in years)	3 years 3 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 189,979
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	189,932
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	170,182
Compensation cost not yet recognized	$ 58,100
Compensation cost not yet recognized period of recognition	2 years 4 months 24 days

Net Income Per Share , Calculation of Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Earnings Per Share [Line Items]
Net income	$ 12,249	$ 14,173
Basic shares:
Weighted-average common shares outstanding-basic (in shares)	161,282	156,010
Diluted shares:
Weighted-average common shares outstanding-basic (in shares)	161,282	156,010
Effect of potentially dilutive securities:
Weighted-average shares used to compute diluted net income per share (in shares)	167,823	165,751
Net income per share:
Basic (in dollars per share)	$ 0.08	$ 0.09
Diluted (in dollars per share)	$ 0.07	$ 0.09
Stock Options [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	6,457	9,699
Restricted Stock Units (RSUs) [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	72	0
ESPP [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	12	42

Foreign Currency Derivatives (Details) $ in Thousands	Mar. 31, 2013 USD ($)
Canada, Dollars
Derivatives, Fair Value [Line Items]
Notional Amount of Foreign Currency Derivative Purchase Contracts	$ 22,164

Deferred Revenue (Tables)

3 Months Ended

Mar. 31, 2013

Deferred Revenue Disclosure [Abstract]

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]

Deferred revenue consisted of the following ($ amounts in 000’s):



	March 31, 2013	December 31, 2012
Product	4,823	5,411
Services	363,739	348,548
Ratable and other revenue	7,852	9,226
Total deferred revenue	376,414	363,185
Reported As:
Short-term	257,332	247,268
Long-term	119,082	115,917
Total deferred revenue	376,414	363,185

Employee Benefit Plan (Details) - USD ($) $ in Millions	3 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Mar. 31, 2013	Mar. 31, 2012
Employee Benefit Plan [Abstract]
Matching contributions to the RRSP and 401(k) Plans	$ 0.5	$ 0.5

Segment and Significant Customer Information (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Revenue and property and equipment by geographic region [Table Text Block]

The following tables set forth revenue and property and equipment by geographic region ($ amounts in 000’s):



	Three Months Ended
Revenue	March 31, 2013	March 31, 2012
Americas:
United States	34,788	31,119
Other Americas	17,839	15,312
Total Americas	52,627	46,431
Europe, Middle East and Africa (“EMEA”)	47,326	40,886
Asia Pacific and Japan (“APAC”)	35,867	29,930
Total revenue	135,820	117,247

During the three months ended March 31, 2013 and March 31, 2012, one distributor, Exclusive Networks Group, accounted for 12% and 11% of total revenue, respectively.



Property and Equipment	March 31, 2013	December 31, 2012
Americas:
United States	19,281	18,764
Canada	3,813	4,376
Other Americas	56	87
Total Americas	23,150	23,227
EMEA	1,652	1,213
APAC	1,001	1,198
Total property and equipment—net	25,803	25,638

Financial Instruments and Fair Value , Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 683,354	$ 614,853
Unrealized Gains	2,066	1,925
Unrealized Losses	(266)	(167)
Fair Value	685,154	616,611
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Unrealized Losses	(266)	(162)
12 Months or Greater, Unrealized Losses	0	(5)
Total, Unrealized Losses	(266)	(167)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Due within one year	362,996	290,719
Due within one to three years	322,158	325,892
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	559,417	529,738
Unrealized Gains	1,944	1,814
Unrealized Losses	(251)	(161)
Fair Value	561,110	531,391
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Unrealized Losses	(251)	(156)
12 Months or Greater, Unrealized Losses	0	(5)
Total, Unrealized Losses	(251)	(161)
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	76,408	39,229
Unrealized Gains	23	22
Unrealized Losses	(8)	(6)
Fair Value	76,423	39,245
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Unrealized Losses	(8)	(6)
12 Months or Greater, Unrealized Losses	0	0
Total, Unrealized Losses	(8)	(6)
Municipal Bonds [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Unrealized Losses	(6)
12 Months or Greater, Unrealized Losses	0
Total, Unrealized Losses	(6)
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	38,939	36,787
Unrealized Gains	94	83
Unrealized Losses	(6)	0
Fair Value	39,027	36,870
Certificates of deposit and term deposits [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,590	9,099
Unrealized Gains	5	6
Unrealized Losses	(1)	0
Fair Value	8,594	$ 9,105
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Unrealized Losses	(1)
12 Months or Greater, Unrealized Losses	0
Total, Unrealized Losses	$ (1)

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The aggregate future non-cancelable minimum rental payments on operating leases as of March 31, 2013 are as follows ($ amounts in 000’s):



	Rental Payment
Fiscal Years:
2013 (remainder)	6,481
2014	5,121
2015	3,630
2016	3,230
2017	2,905
Thereafter	7,254
Total	28,621

Schedule of Product Warranty Liability [Table Text Block]

Accrued warranty activities are summarized as follows ($ amounts in 000’s):



	For The Three Months Ended And As Of		For The Year Ended And As Of
	March 31, 2013		December 31, 2012
Accrued warranty balance—beginning of the period	2,309		2,582
Warranty costs incurred	(759	)	(2,669	)
Provision for warranty	674		2,639
Changes in prior period estimates	60		(243	)
Accrued warranty balance—end of the period	2,284		2,309

Financial Instruments and Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Financial Instruments and Fair Value [Abstract]

Summary of Investments [Table Text Block]

The following table summarizes our investments ($ amounts in 000’s):



	March 31, 2013
	Amortized Cost	Unrealized Gains	Unrealized Losses		Fair Value
Corporate debt securities	559,417	1,944	(251	)	561,110
Commercial paper	76,408	23	(8	)	76,423
Municipal bonds	38,939	94	(6	)	39,027
Certificates of deposit and term deposits	8,590	5	(1	)	8,594
Total available-for-sale securities	683,354	2,066	(266	)	685,154

	December 31, 2012
	Amortized Cost	Unrealized Gains	Unrealized Losses		Fair Value
Corporate debt securities	529,738	1,814	(161	)	531,391
Commercial paper	39,229	22	(6	)	39,245
Municipal bonds	36,787	83	—		36,870
Certificates of deposit and term deposits	9,099	6	—		9,105
Total available-for-sale securities	614,853	1,925	(167	)	616,611

Schedule of Unrealized Loss on Investments [Table Text Block]



	Less Than 12 Months			12 Months or Greater		Total
	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Corporate debt securities	168,514	(251	)	—	—	168,514	(251	)
Commercial paper	11,279	(8	)	—	—	11,279	(8	)
Municipal bonds	7,074	(6	)	—	—	7,074	(6	)
Certificates of deposit and term deposits	1,000	(1	)	—	—	1,000	(1	)
Total available-for-sale securities	187,867	(266	)	—	—	187,867	(266	)



	Less Than 12 Months			12 Months or Greater			Total
	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
Corporate debt securities	133,006	(156	)	5,010	(5	)	138,016	(161	)
Commercial paper	8,464	(6	)	—	—		8,464	(6	)
Total available-for-sale securities	141,470	(162	)	5,010	(5	)	146,480	(167	)

Investments Classified by Contractual Maturity Date [Table Text Block]

The contractual maturities of our investments were as follows ($ amounts in 000’s)



	March 31, 2013	December 31, 2012
Due within one year	362,996	290,719
Due within one to three years	322,158	325,892
Total	685,154	616,611

Fair Value, by Balance Sheet Grouping and Measurement Inputs, Disclosure [Table Text Block]

The following table presents the fair value of our financial assets measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012 ($ amounts in 000’s):



	March 31, 2013			December 31, 2012
	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs
		(Level 1)	(Level 2)		(Level 1)	(Level 2)
Assets:
Corporate debt securities	561,110	—	561,110	531,391	—	531,391
Commercial paper	80,822	—	80,822	41,994	—	41,994
Municipal bonds	39,027	—	39,027	36,870	—	36,870
Certificates of deposit and term deposits	8,594	—	8,594	9,105	—	9,105
Money market funds	12,528	12,528	—	39,871	39,871	—
Total	702,081	12,528	689,553	659,231	39,871	619,360
Reported as:
Cash equivalents	16,927			42,620
Short-term investments	362,996			290,719
Long-term investments	322,158			325,892
Total	702,081			659,231

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Property and Equipment—Net (Tables)

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment consisted of the following ($ amounts in 000’s):



	March 31, 2013		December 31, 2012
Land	13,895		13,895
Building and building improvements	610		610
Evaluation units	19,708		18,322
Computer equipment and software	18,483		17,176
Furniture and fixtures	1,637		1,501
Leasehold improvements and tooling	5,510		5,354
Total property and equipment	59,843		56,858
Less: accumulated depreciation	(34,040	)	(31,220	)
Property and equipment—net	25,803		25,638

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 12,249	$ 14,173
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	3,536	2,082
Amortization of investment premiums	3,051	3,255
Stock-based compensation expense	9,299	7,246
Excess tax benefit from employee stock option plans	(1,453)	(2,320)
Other non-cash items, net	(540)	19
Changes in operating assets and liabilities:
Accounts receivable—net	5,747	10,763
Inventory	(4,520)	(3,409)
Prepaid expenses and other current assets	(202)	(345)
Other assets	(8,568)	569
Accounts payable	4,957	(6,319)
Accrued liabilities	(11)	(231)
Accrued payroll and compensation	(2,416)	(547)
Deferred revenue	12,677	19,696
Income taxes payable	4,305	3,886
Net cash provided by operating activities	38,111	48,518
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments	(171,506)	(192,567)
Sales of investments	13,823	17,416
Maturities of investments	86,018	115,026
Purchases of property and equipment	(1,534)	(1,624)
Payments made in connection with acquisitions, net of cash acquired	(5,979)	(550)
Net cash used in investing activities	(79,178)	(62,299)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	14,464	13,551
Excess tax benefit from employee stock option plans	1,453	2,320
Net cash provided by financing activities	15,917	15,871
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(441)	703
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(25,591)	2,793
CASH AND CASH EQUIVALENTS—Beginning of year	122,975	71,990
CASH AND CASH EQUIVALENTS—End of year	97,384	74,783
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes	8,579	1,010
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of property and equipment not yet paid	744	688
Liability incurred in connection with business acquisition	$ 0	$ 400

Consolidated Balance Sheets Parenthetical - $ / shares	Mar. 31, 2013	Dec. 31, 2012
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	300,000,000	300,000,000
Common Stock, shares issued	163,550,000	161,757,000
Common Stock, shares outstanding	162,141,000	160,348,000

Business Combinations

3 Months Ended

Mar. 31, 2013

Business Combinations [Abstract]

BUSINESS COMBINATIONS

On March 21, 2013, we acquired all of the outstanding equity securities of Coyote Point Systems, Inc. (“Coyote”), a provider of enterprise-class application delivery, load balancing and acceleration solutions, for $6.0 million in cash. The acquisition also includes a contingent obligation for up to $5.5 million in future earn-out payments to former stockholders of Coyote, if specified future operational objectives, service conditions and financial results are met within two years of the acquisition date. Of the maximum $5.5 million in contingent earn-out payments, up to $3.5 million will be payable after eighteen months from the acquisition date, and up to $2.0 million will be payable after two years from the acquisition date. As the future earn-out payments are also contingent upon one of Coyote’s former stockholders being in continued employment with us during the earn-out period, these contingent obligations will be recorded as compensation expense ratably over the earn-out periods for future services provided to us.

We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to Coyote’s identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair value assigned to the intangible assets acquired was determined using the income approach which discounts expected cash flows to present value using our estimates and assumptions.

The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date ($ amounts in 000’s):



Cash and cash equivalents	206
Other current assets	501
Finite-lived intangible assets	2,800
Indefinite-lived intangible assets	2,600
Goodwill	2,766
Other assets	88
Total assets acquired	8,961
Current liabilities	1,078
Long-term liabilities	1,898
Total liabilities assumed	2,976
Total purchase price	5,985

Of the total acquired identified intangible assets, we allocated $2.3 million to developed technology, $0.5 million to customer relationships, and $2.6 million to in-process research and development. Identified finite-lived intangible assets consist of developed technology and customer relationships that will be amortized as cost of revenue and sales and marketing expense, respectively, ratably on a straight-line basis, each over an estimated useful life of 6 years. Identified indefinite-lived intangible assets consist of in-process research and development, which will be amortized upon completion of development. The goodwill of $2.8 million represents the premium we paid over the fair value of the net tangible liabilities assumed and identified intangible assets acquired. We paid this premium for a number of reasons, primarily for acquiring developed and in-process technology. None of the goodwill recognized as a result of the acquisition is deductible for income tax purposes. The financial results of this acquisition are considered immaterial for purposes of pro-forma financial disclosures.

On December 7, 2012, we completed the acquisition of XDN, Inc., a provider of cloud-based content delivery solutions, for a total consideration of $0.5 million. We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to identifiable intangible assets acquired based on their estimated fair market value as of the acquisition date. The purchase price allocation resulted in purchased identifiable intangible assets of $0.5 million. Identifiable intangible assets consist of purchased technology. The fair value assigned to identifiable intangible assets acquired was determined using the market approach, which compares the value of the purchased assets to similar assets in similar lines of business. Purchased identifiable intangible assets are being amortized as cost of revenue ratably over three years. The financial results of this acquisition are considered immaterial for purposes of pro forma financial disclosures.

On March 8, 2012, we completed the acquisition of IntruGuard Devices, Inc. (“IntruGuard”), a supplier of Intelligent Availability Protection Systems, for a total consideration of $1.0 million. Of the total consideration, $0.4 million was withheld in escrow as security for IntruGuard’s indemnification obligations. We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair market values as of the acquisition date. The purchase price allocation resulted in purchased tangible assets of $53,000 and liabilities of $43,000, and purchased identifiable intangible assets of $0.9 million. Identifiable intangible assets consist of purchased technology. The fair value assigned to identifiable intangible assets acquired was determined using the income approach, which discounts expected future cash flows to present value using estimates and assumptions determined by us. Purchased identifiable intangible assets are being amortized as cost of revenue ratably over three years. Of the $0.4 million previously withheld in escrow, $0.2 million and $0.2 million were released to the selling stockholders during the three months ended September 30, 2012 and the three months ended March 31, 2013, respectively. The financial results of this acquisition are considered immaterial for purposes of pro forma financial disclosures.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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-Number 88-16
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

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-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2013
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective tax rate was 28% for each of the three months ended March 31, 2013 and March 31, 2012. The provision for income taxes for the periods presented is comprised of foreign income taxes, U.S. federal and state taxes, and withholding tax. As of March 31, 2013 and December 31, 2012, unrecognized tax benefits were $30.2 million and $27.8 million, respectively. The total amount of $29.7 million in unrecognized tax benefits, if recognized, would favorably impact the effective tax rate. It is our policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of March 31, 2013, we had approximately $1.9 million accrued for estimated interest related to uncertain tax provisions. We do not expect any material unrecognized tax benefits to expire within the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
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-Article 4

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 97,384	$ 122,975
Short-term investments	362,996	290,719
Accounts receivable—Net	102,359	107,642
Inventory	23,933	21,060
Prepaid expenses and other current assets	26,988	26,878
Total current assets	613,660	569,274
PROPERTY AND EQUIPMENT—Net	25,803	25,638
LONG-TERM INVESTMENTS	322,158	325,892
GOODWILL AND OTHER INTANGIBLE ASSETS—Net	9,964	2,117
OTHER ASSETS	61,144	52,576
TOTAL ASSETS	1,032,729	975,497
CURRENT LIABILITIES:
Accounts payable	26,369	20,816
Accrued liabilities	21,677	22,263
Accrued payroll and compensation	26,350	28,957
Deferred revenue	257,332	247,268
Total current liabilities	331,728	319,304
DEFERRED REVENUE—Non-current	119,082	115,917
OTHER LIABILITIES	34,210	29,342
Total liabilities	485,020	464,563
COMMITMENTS AND CONTINGENCIES (Note 7)
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value — 300,000 shares authorized; 163,550 and 161,757 shares issued and 162,141 and 160,348 shares outstanding as of March 31, 2013 and December 31, 2012, respectively	164	162
Additional paid-in capital	425,524	400,075
Treasury stock	(2,995)	(2,995)
Accumulated other comprehensive income	2,166	3,091
Retained earnings	122,850	110,601
Total stockholders' equity	547,709	510,934
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,032,729	$ 975,497

Segment and Significant Customer Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
Concentration risk, percentage	12.00%	11.00%
Revenue	$ 135,820	$ 117,247
Property and equipment - net	25,803		$ 25,638
Americas [Member]
Segment Reporting Information [Line Items]
Revenue	52,627	46,431
Property and equipment - net	23,150		23,227
United States
Segment Reporting Information [Line Items]
Revenue	34,788	31,119
Property and equipment - net	19,281		18,764
Canada [Member]
Segment Reporting Information [Line Items]
Property and equipment - net	3,813		4,376
Other Americas [Member]
Segment Reporting Information [Line Items]
Revenue	17,839	15,312
Property and equipment - net	56		87
EMEA [Member]
Segment Reporting Information [Line Items]
Revenue	47,326	40,886
Property and equipment - net	1,652		1,213
APAC [Member]
Segment Reporting Information [Line Items]
Revenue	35,867	$ 29,930
Property and equipment - net	$ 1,001		$ 1,198

Stock Plans , ESPP Information (Details) - Employee Stock Purchase Plan [Member] - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years	6 months	6 months
Volatility (%)	48.00%	58.00%
Risk-free interest rate (%)	0.14%	0.20%
Dividend rate (%)	0.00%	0.00%
Weighted-average fair value per share granted (in dollars per share)	$ 6.83	$ 8.08
Shares issued under the ESPP (in shares)	329	288
Weighted-average price per share issued (in dollars per share)	$ 19.91	$ 17.51

- Definition

Number of shares issued during the period as a result of an employee stock purchase plan.

+ References + Details

Deferred Revenue

3 Months Ended

Mar. 31, 2013

Deferred Revenue Disclosure [Abstract]

DEFERRED REVENUE

Deferred revenue consisted of the following ($ amounts in 000’s):



	March 31, 2013	December 31, 2012
Product	4,823	5,411
Services	363,739	348,548
Ratable and other revenue	7,852	9,226
Total deferred revenue	376,414	363,185
Reported As:
Short-term	257,332	247,268
Long-term	119,082	115,917
Total deferred revenue	376,414	363,185

Inventory

3 Months Ended

Mar. 31, 2013

Inventory Disclosure [Abstract]

INVENTORY

Inventory consisted of the following ($ amounts in 000’s):



	March 31, 2013	December 31, 2012
Raw materials	5,226	4,958
Finished goods	18,707	16,102
Inventory	23,933	21,060

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2013
Accounting Policies [Abstract]
Presentation and Preparation of Consolidated Financial Statements [Policy Text Block]	Basis of Presentation and Preparation The unaudited condensed consolidated financial statements of Fortinet, Inc. and its wholly owned subsidiaries (collectively, “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended December 31, 2012, contained in our Annual Report on Form 10-K (“Form 10-K”) filed with the SEC on February 27, 2013. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the operating results for any subsequent quarter, for the full year or any future periods. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. There have been no material changes in our significant accounting policies as of and for the three months ended March 31, 2013, as compared to the significant accounting policies described in the Form 10-K. Certain prior period amounts have been combined on the condensed consolidated balance sheets.

Stock Plans , Range of Options (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Weighted-average fair value per share granted	$ 0.00	$ 11.23
Intrinsic value of options exercised	$ 26,059	$ 38,102
Fair value of options vested	$ 11,004	$ 8,193

Stock Plans , Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 9,299	$ 7,246
Cost of Product Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	90	64
Cost of Services Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,020	745
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,766	1,957
Selling and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	4,118	3,443
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,305	1,037
Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	5,486	6,316
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,674	0
Employee Stock [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 1,139	$ 930

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2013
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The unaudited condensed consolidated financial statements of Fortinet, Inc. and its wholly owned subsidiaries (collectively, “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended December 31, 2012, contained in our Annual Report on Form 10-K (“Form 10-K”) filed with the SEC on February 27, 2013. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the operating results for any subsequent quarter, for the full year or any future periods. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. There have been no material changes in our significant accounting policies as of and for the three months ended March 31, 2013, as compared to the significant accounting policies described in the Form 10-K. Certain prior period amounts have been combined on the condensed consolidated balance sheets. Recently Adopted Accounting Pronouncement In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220)—Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. We adopted ASU 2013-02 in the three months ended March 31, 2013. The amounts reclassified out of accumulated other comprehensive income were immaterial for the three months ended March 31, 2013 and March 31, 2012.

Business Combinations Purchase Price Allocation (Tables)

3 Months Ended

Mar. 31, 2013

Business Combinations [Abstract]

Schedule of Purchase Price Allocation [Table Text Block]

The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date ($ amounts in 000’s):



Cash and cash equivalents	206
Other current assets	501
Finite-lived intangible assets	2,800
Indefinite-lived intangible assets	2,600
Goodwill	2,766
Other assets	88
Total assets acquired	8,961
Current liabilities	1,078
Long-term liabilities	1,898
Total liabilities assumed	2,976
Total purchase price	5,985

Goodwill and Other Intangible Assets—Net

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS—NET

INTANGIBLE ASSETS—NET

We acquired $2.8 million of goodwill during the three months ended March 31, 2013, which approximates the carrying value as of March 31, 2013.

The following table presents other intangible assets ($ amounts in 000’s):



	March 31, 2013
	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets:
Developed technology	5,826	1,728	4,098
Customer relationships	500	—	500
	6,326	1,728	4,598
Indefinite-lived other intangible assets:
In-process research and development			2,600
Total other intangible assets			7,198



	December 31, 2012
	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets:
Developed technology	3,541	1,424	2,117
Total other intangible assets	3,541	1,424	2,117

Amortization expense was $0.3 million and $0.2 million during the three months ended March 31, 2013 and March 31, 2012, respectively. The following table summarizes estimated future amortization expense of other intangible assets with finite lives for future fiscal years ($ amounts in 000’s):



	Amount
Fiscal Years:
2013 (remainder)	1,287
2014	1,168
2015	737
2016	472
2017	467
2018	467
Total	4,598

Net Income Per Share , Anti Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	8,151	6,290
Stock Options [Member] \| Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	6,751	6,028
Restricted Stock Units (RSUs) [Member] \| Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	1,069	0
ESPP [Member] \| Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	331	262

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

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-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Property and Equipment—Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	$ 59,843		$ 56,858
Less: accumulated depreciation	(34,040)		(31,220)
Property and equipment - net	25,803		25,638
Depreciation expense	3,200	$ 2,100
Land [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	13,895		13,895
Building and building improvements [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	610		610
Evaluation units [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	19,708		18,322
Computer equipment and software [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	18,483		17,176
Furniture and fixtures [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	1,637		1,501
Leasehold improvements and tooling [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	$ 5,510		$ 5,354

Goodwill and Other Intangible Assets—Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 21, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 2,800
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived other intangible assets, gross	6,326
Accumulated amortization	1,728			$ 1,424
Intangible assets, gross				3,541
Intangible assets, net	7,198			2,117
2013 (remainder)	1,287
2014	1,168
2015	737
2016	472
2017	467
2018	467
Total	4,598
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived other intangible assets, gross	5,826			3,541
Accumulated amortization	1,728			1,424
Amortization expense	300	$ 200
Total	4,098			$ 2,117
Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Accumulated amortization	0
Total	$ 500
Coyote Point Systems Inc [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill			$ 2,800
Coyote Point Systems Inc [Member] \| Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Customer relationships, gross			2,300
Coyote Point Systems Inc [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Customer relationships, gross			500
Coyote Point Systems Inc [Member] \| In Process Research and Development [Member]
Finite-Lived Intangible Assets, Net [Abstract]
In-process research and development			$ 2,600

Financial Instruments and Fair Value , Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months, Fair Value	$ 187,867	$ 141,470
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	266	162
12 Months or Greater, Fair Value	0	(5,010)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	5
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	187,867	146,480
Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months, Fair Value	168,514	133,006
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	251	156
12 Months or Greater, Fair Value	0	(5,010)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	5
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	168,514	138,016
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months, Fair Value	11,279	8,464
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	8	6
12 Months or Greater, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	11,279	8,464
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months, Fair Value	7,074
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	6
12 Months or Greater, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	7,074
Certificates of deposit and term deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less Than 12 Months, Fair Value	1,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	1
12 Months or Greater, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,000
Estimate of Fair Value [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	702,081	659,231
Estimate of Fair Value [Member] \| Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	12,528	39,871
Estimate of Fair Value [Member] \| Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	689,553	619,360
Estimate of Fair Value [Member] \| Corporate debt securities [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	561,110	531,391
Estimate of Fair Value [Member] \| Corporate debt securities [Member] \| Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Estimate of Fair Value [Member] \| Corporate debt securities [Member] \| Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	561,110	531,391
Estimate of Fair Value [Member] \| Commercial paper [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	80,822	41,994
Estimate of Fair Value [Member] \| Commercial paper [Member] \| Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Estimate of Fair Value [Member] \| Commercial paper [Member] \| Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	80,822	41,994
Estimate of Fair Value [Member] \| Municipal bonds [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	39,027	36,870
Estimate of Fair Value [Member] \| Municipal bonds [Member] \| Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Estimate of Fair Value [Member] \| Municipal bonds [Member] \| Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	39,027	36,870
Estimate of Fair Value [Member] \| Certificates of deposit and term deposits [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	8,594	9,105
Estimate of Fair Value [Member] \| Certificates of deposit and term deposits [Member] \| Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Estimate of Fair Value [Member] \| Certificates of deposit and term deposits [Member] \| Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	8,594	9,105
Estimate of Fair Value [Member] \| Money market funds [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	12,528	39,871
Estimate of Fair Value [Member] \| Money market funds [Member] \| Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	12,528	39,871
Estimate of Fair Value [Member] \| Money market funds [Member] \| Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Reported as [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	702,081	659,231
Reported as [Member] \| Recurring [Member] \| Cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	16,927	42,620
Reported as [Member] \| Recurring [Member] \| Short-term investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	362,996	290,719
Reported as [Member] \| Recurring [Member] \| Long-term investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	$ 322,158	$ 325,892

Stock Plans , Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance—December 31, 2012	830
Granted	2,072
Forfeited	(70)
Balance—March 31, 2013	2,832
RSUs expected to vest—December 31, 2012	2,607
Balance, weighted-average grant-date fair value per share (in dollars per share)—December 31, 2012	$ 23.73
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Granted, weighted-average grant-date fair value per share (in dollars per share)		$ 23.31
Forfeited, weighted-average grant-date fair value per share (in dollars per share)		$ 23.64
Balance, weighted-average grant-date fair value per share (in dollars per share)—March 31, 2013	23.44
RSUs expected to vest, weighted-average grant-date fair value per share (in dollars per share)—March 31, 2013	$ 23.44
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 64.7
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	3 years 8 months 12 days