0001262039-14-000007 | 10-K | XBRL Viewer

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Stockholders' Equity , Range of Options (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2013 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number Outstanding (in shares) \| shares	15,521
Options Exercisable, Number Exercisable (in shares) \| shares	12,084
Range, 0.48 to 1.20 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, minimum (in dollars per share)	$ 0.48
Exercise Price, maximum (in dollars per share)	$ 1.2
Options Outstanding, Number Outstanding (in shares) \| shares	1,331
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	1 year 9 months
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 0.97
Options Exercisable, Number Exercisable (in shares) \| shares	1,331
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0.97
Range, 3.74 to 4.65 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, minimum (in dollars per share)	3.74
Exercise Price, maximum (in dollars per share)	$ 4.65
Options Outstanding, Number Outstanding (in shares) \| shares	4,902
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	1 year 7 months 27 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.75
Options Exercisable, Number Exercisable (in shares) \| shares	4,902
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.75
Range, 5.50 to 6.25 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, minimum (in dollars per share)	5.5
Exercise Price, maximum (in dollars per share)	$ 6.25
Options Outstanding, Number Outstanding (in shares) \| shares	152
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	2 years 8 months 17 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.64
Options Exercisable, Number Exercisable (in shares) \| shares	152
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.64
Range, 8.43 to 8.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, minimum (in dollars per share)	8.43
Exercise Price, maximum (in dollars per share)	$ 8.99
Options Outstanding, Number Outstanding (in shares) \| shares	1,636
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	3 years 1 month 28 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 8.55
Options Exercisable, Number Exercisable (in shares) \| shares	1,486
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 8.53
Range, 15.28 to 19.94 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, minimum (in dollars per share)	15.28
Exercise Price, maximum (in dollars per share)	$ 19.94
Options Outstanding, Number Outstanding (in shares) \| shares	382
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	4 years 1 month 24 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 15.88
Options Exercisable, Number Exercisable (in shares) \| shares	231
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 15.28
Range, 20.13 to 24.92 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, minimum (in dollars per share)	20.13
Exercise Price, maximum (in dollars per share)	$ 24.92
Options Outstanding, Number Outstanding (in shares) \| shares	4,835
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	4 years 4 months 28 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 21.32
Options Exercisable, Number Exercisable (in shares) \| shares	2,902
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 21.20
Range, 26.70 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, minimum (in dollars per share)	26.7
Exercise Price, maximum (in dollars per share)	$ 26.7
Options Outstanding, Number Outstanding (in shares) \| shares	2,283
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	5 years 4 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 26.70
Options Exercisable, Number Exercisable (in shares) \| shares	1,080
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 26.70

Inventory (Tables)

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Inventory [Table Text Block]

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



	December 31, 2013	December 31, 2012
Raw materials	4,319	2,811
Finished goods	40,093	15,905
Consigned inventory	4,260	2,344
Inventory	48,672	21,060

Inventory

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

INVENTORY

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



	December 31, 2013	December 31, 2012
Raw materials	4,319	2,811
Finished goods	40,093	15,905
Consigned inventory	4,260	2,344
Inventory	48,672	21,060

Net Income Per Share , Anti Dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	10,590	7,795	4,015
Stock Options [Member] \| Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	7,397	7,183	3,893
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)	2,774	291	0
ESPP [Member] \| Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	419	321	122

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2013	Feb. 18, 2014	Jun. 30, 2013
Document Information [Line Items]
Entity Registrant Name	FORTINET INC
Entity Central Index Key	0001262039
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		162,853,313,000
Entity Public Float			$ 2,122,539,878

Summary of Significant Accounting Policies , Cash, Cash Equivalents and Available-for-sale Investments (Details)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]
Short-term investments, minimum original maturity	3 months
Short-term investments, maximum original maturity	1 year
Long-term investments, minimum original maturity	1 year

Net Income Per Share , Calculation of Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Line Items]
Net income	$ 44,273	$ 66,836	$ 62,492
Basic shares:
Weighted-average common shares outstanding-basic (in shares)	162,435	158,074	152,581
Diluted shares:
Weighted-average common shares outstanding-basic (in shares)	162,435	158,074	152,581
Effect of potentially dilutive securities:
Weighted-average shares used to compute diluted net income per share (in shares)	168,183	166,329	163,781
Basic (in dollars per share)	$ 0.27	$ 0.42	$ 0.41
Diluted (in dollars per share)	$ 0.26	$ 0.40	$ 0.38
Stock Options [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	5,685	8,214	11,200
Restricted Stock Units (RSUs) [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	35	0	0
ESPP [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	28	41	0

Stockholders' Equity , Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Tax withholding upon vesting of restricted stock awards	$ 1,452	$ 0	$ 0
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance, beginning	830	0
Granted	4,104	873
Forfeited	(507)	(43)
Vested	(228)	0
Balance, ending	4,199	830	0
RSUs expected to vest—December 31, 2013	3,898
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Balance, weighted-average grant-date fair value per share (in dollars per share)—beginning	$ 23.73	$ 0.00
Granted, weighted-average grant-date fair value per share (in dollars per share)	21.75	23.79
Forfeited, weighted-average grant-date fair value per share (in dollars per share)	21.48	24.76
Vested, weighted-average grant-date fair value per share (in dollars per share)	23.89	0.00
Balance, weighted-average grant-date fair value per share (in dollars per share)—ending	22.00	$ 23.73	$ 0.00
RSUs expected to vest, weighted-average grant-date fair value per share (in dollars per share)—December 31, 2012	$ 22.02
Compensation cost not yet recognized	$ 82,600
Compensation cost not yet recognized period of recognition	2 years 11 months 27 days
Shares Paid for Tax Withholding for Share Based Compensation	70
Tax withholding upon vesting of restricted stock awards	$ 1,452

Summary of Significant Accounting Policies , Foreign Currency Translation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounting Policies [Abstract]
Foreign currency transaction gains (losses)	$ (1.5)	$ (0.5)	$ (0.4)

Stockholders' Equity , ESPP Information (Details) - Employee Stock Purchase Plan [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years	6 months	6 months	6 months
Volatility (%)	44.00%	53.70%	59.90%
Risk-free interest rate (%)	0.12%	0.12%	0.07%
Dividend rate (%)	0.00%	0.00%	0.00%
Weighted-average fair value per share granted (in dollars per share)	$ 6.11	$ 7.06	$ 6.56
Shares issued under the ESPP (in shares)	672	577	0
Weighted-average price per share issued (in dollars per share)	$ 18.88	$ 18.90	$ 0

Business Combinations

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

BUSINESS COMBINATIONS

Coyote Point Systems

On March 21, 2013, we acquired all of the outstanding equity securities of Coyote Point Systems, Inc. (“Coyote”), a provider of 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 stockholder's employment during the earn-out period, the estimated fair value of these contingent obligations is being recorded as compensation expense ratably over the earn-out periods. This acquisition complements our network security strategy and allows us and our channel partners to accelerate and further deliver on our vision of providing broad security and networking functionality to customers. Furthermore, the acquisition is expected to generate synergy among certain of our existing products.

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 ($ 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	2,872
Other assets	88
Total assets acquired	9,067
Current liabilities	1,078
Long-term liabilities	2,004
Total liabilities assumed	3,082
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 (“IPR&D”) as of the acquisition date. Identified finite-lived intangible assets consist of developed technology and customer relationships that are being amortized as cost of revenue and sales and marketing expense, respectively, ratably on a straight-line basis, each over an estimated useful life of six years. Identified indefinite-lived intangible assets consisted of acquired IPR&D relating to existing research and development projects at the time of acquisition. The goodwill of $2.9 million represents the premium we paid over the fair value of the net tangible liabilities assumed and identified intangible assets acquired, due primarily to acquire 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 were considered immaterial for purposes of pro-forma financial disclosures. During the three months ended September 30, 2013, we completed the development of technology associated with the IPR&D projects, and started amortizing this developed technology as cost of revenue ratably on a straight-line basis over an estimated useful life of 6 years.

Other Fiscal 2013 Acquisition

In September 2013, we acquired certain assets of Xtera Communications, Inc. (“Xtera”), including certain load balancing solutions and certain patents, for a total consideration of $1.8 million, of which $1.7 million was paid in cash on the acquisition date and $0.1 million payment in cash is contingent upon attainment of revenue milestones. In connection with this acquisition, we acquired net tangible assets of $0.2 million, intangible assets of $1.5 million, and recognized an estimated contingent obligation of $0.1 million payable upon attainment of revenue milestones.

The results of operations of our fiscal 2013 acquisitions have been included in our consolidated statements of operations from their respective acquisition dates.

Fiscal 2012 Acquisitions

During fiscal 2012, we completed the acquisitions of two privately-held companies, XDN, Inc. (“XDN”) and IntruGuard Devices, Inc. (“IntruGuard”), together referred to as our fiscal 2012 acquisitions. Our fiscal 2012 acquisitions were completed for total cash consideration of $1.5 million which was allocated to developed technology. In fiscal 2013, we determined the net carrying value of certain developed technology was impaired and recorded an impairment charge of $0.5 million within Cost of product revenue in our consolidated statements of operations. The results of operations of our fiscal 2012 acquisitions have been included in our consolidated statements of operations from their respective acquisition dates.

- 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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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Income Taxes , Deferred Tax Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Deferred Taxes [Line Items]
Income tax benefit from employee stock option plans	$ 3,460	$ 14,278	$ 26,205
Deferred tax assets:
Net operating loss carryforward	2,183	587
Deferred revenue	47,341	36,438
Nondeductible reserves and accruals	16,055	13,437
Depreciation and amortization	(465)	920
General business credit carryforward	439	1,381
Stock-based compensation	15,468	9,413
Other	17	12
Total deferred tax assets	81,038	$ 62,188
Foreign earnings deemed to be permanently reinvested overseas	27,500
State and Local Jurisdiction [Member]
Deferred tax assets:
State net operating loss carryforwards	21,700
State tax credit carryforwards	4,200
California [Member]
Deferred Taxes [Line Items]
Amount of unrecognized deferred tax asset relating to tax credits for excess tax benefits for stock-based compensation expense	$ 3,500

Deferred Revenue

12 Months Ended

Dec. 31, 2013

Deferred Revenue Disclosure [Abstract]

DEFERRED REVENUE

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



	December 31, 2013	December 31, 2012
Product	2,915	5,411
Services	425,266	348,548
Ratable and other revenue	4,447	9,226
Total deferred revenue	432,628	363,185
Reported As:
Current	293,664	247,268
Non-current	138,964	115,917
Total deferred revenue	432,628	363,185

Financial Instruments and Fair Value

12 Months Ended

Dec. 31, 2013

Financial Instruments and Fair Value [Abstract]

FINANCIAL INSTRUMENTS AND FAIR VALUE

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



	December 31, 2013
	Amortized Cost	Unrealized Gains	Unrealized Losses		Fair Value
Corporate debt securities	603,185	1,506	(374	)	604,317
Commercial paper	69,356	7	—		69,363
Municipal bonds	38,815	48	(20	)	38,843
Certificates of deposit and term deposits	12,645	3	—		12,648
U.S. government and agency securities	2,000	1	—		2,001
Total available-for-sale securities	726,001	1,565	(394	)	727,172

	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 ($ amounts in 000’s):



	December 31, 2013
	Less Than 12 Months			12 Months or Greater		Total
	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Corporate debt securities	182,795	(374	)	500	—	183,295	(374	)
Commercial paper	7,897	—		—	—	7,897	—
Municipal bonds	14,736	(20	)	—	—	14,736	(20	)
Total available-for-sale securities	205,428	(394	)	500	—	205,928	(394	)

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 ($ amounts in 000’s):



	December 31, 2012
	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 are as follows ($ amounts in 000’s)



	December 31, 2013	December 31, 2012
Due within one year	375,497	290,719
Due within one to three years	351,675	325,892
Total	727,172	616,611

Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, included as a separate component of stockholders’ equity and in total comprehensive income. Realized gains and losses on available-for-sale securities are included in other expense, net in our consolidated statements of operations.

The unrealized losses on our available-for-sale securities were caused by fluctuations in market value and interest rates as a result of the economic environment. As the decline in market value are attributable to changes in market conditions and not credit quality, and because we have concluded currently that we neither intend to sell nor is it more likely than not that we will be required to sell these investments prior to a recovery of par value, we do not consider these investments to be other-than temporarily impaired as of December 31, 2013.

Realized gains and losses from the sale of available-for-sale securities were not significant in any period presented.

Fair Value Accounting—We apply the following fair value hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

Level 3—Unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.

We measure the fair value of money market funds using quoted prices in active markets for identical assets. The fair value of all other financial instruments was based on quoted prices for similar asserts in active markets, or model driven valuations using significant inputs derived from or corroborated by observable market data.

We classify investments within Level 1 if quoted prices are available in active markets for identical securities.

We classify items within Level 2 if the investments are valued using model driven valuations using observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Investments are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.

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



	December 31, 2013				December 31, 2012
	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs	Significant Other Unobservable Remaining Inputs	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs	Significant Other Unobservable Remaining Inputs
		(Level 1)	(Level 2)	(Level 3)		(Level 1)	(Level 2)	(Level 3)
Assets:
Corporate debt securities	604,317	—	604,317	—	531,391	—	531,391	—
Commercial paper	71,363	—	71,363	—	41,994	—	41,994	—
Municipal bonds	38,843	—	38,843	—	36,870	—	36,870	—
Certificates of deposit and term deposits	12,648	—	12,648	—	9,105	—	9,105	—
Money market funds	5,724	5,724	—	—	39,871	39,871	—	—
U.S. government and agency securities	2,001	—	2,001	—	—	—	—	—
Total	734,896	5,724	729,172	—	659,231	39,871	619,360	—

Liabilities:
Contingent consideration	1,850	—	—	1,850	—	—	—	—
Total	1,850	—	—	—	—	—	—	—

Reported as:
Cash equivalents	7,724				42,620
Short-term investments	375,497				290,719
Long-term investments	351,675				325,892
Total	734,896				659,231

The fair value of contingent consideration arising from the acquisition of Coyote Point Systems (see Note 6), is classified within Level 3 of the fair value hierarchy since it is based on a probability-based approach that includes significant unobservable inputs. The significant unobservable inputs include projected revenues and the percentage probability of occurrence to value the payment. A significant increase (decrease) in the projected revenue in isolation could result in a significantly higher (lower) fair value measurement and significant increase (decrease) in the probability of occurrence between the outcomes in isolation could result in a significantly higher (lower) fair value measurement. The fair value of the contingent consideration is calculated on a quarterly basis by management based on a collaborative effort of our operations and finance and accounting groups. Potential valuation adjustments are made as additional information becomes available, including the progress toward achieving revenue targets as compared to initial projections, the impact of market competition, and changes in actual and projected product mix and average selling price, with the impact of such adjustments being recorded in the earnings of that period.

There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2013 or December 31, 2012.

The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of December 31, 2013 ($ amounts in 000’s):



	December 31, 2013
	Fair Value	Valuation Technique	Significant Unobservable Input	Range
Contingent consideration	$1,850	Probability Weighted Income Approach	Revenue (in 000's)	$7,000 - $12,000

			Probability of occurrence (%)	40%-80%

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2013
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENT In January 2014, we entered into an agreement with Palo Alto Networks, Inc. (“Palo Alto Networks”), whereby Palo Alto Networks paid us a lump sum payment of $20.0 million for a six year mutual covenant-not-to-sue which precludes either party from asserting claims of patent infringement against the other party. The agreement also contained a release of past claims.

Property and Equipment—Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	$ 78,450	$ 56,858
Less: accumulated depreciation	(41,798)	(31,220)
Property and equipment - net	36,652	25,638
Depreciation expense	13,900	10,500	$ 7,000
Payments to acquire real estate		14,500
Land [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	13,895	13,895
Payments to acquire real estate		13,900
Building and building improvements [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	610	610
Payments to acquire real estate		600
Evaluation units [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	23,442	18,322
Computer equipment and software [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	22,442	17,176
Furniture and fixtures [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	1,697	1,501
Construction-in-progress [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	10,947	0
Leasehold improvements and tooling [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	$ 5,417	$ 5,354

Summary of Significant Accounting Policies , Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2009
Accounting Policies [Abstract]
Out-of-period Adjustment Relating to Retired Treasury Stock	$ 3.0
Repurchase and retirement of common stock (in shares)		2,100,000	1,409,264

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Nov. 17, 2009	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2000	Jan. 02, 2011	Jan. 28, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuances		53,883,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value
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	4 years 7 months 6 days
Volatility, minimum		45.00%	46.00%	40.00%
Volatility, maximum		48.00%	52.00%	47.00%
Risk-free interest rate (%)		1.20%
Risk-free interest rate, minimum			0.70%	0.60%
Risk-free interest rate, maximum			0.90%	2.00%
Dividend rate (%)		0.00%	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance - Beginning (in shares)		18,571,000	21,389,000	22,489,000
Granted (in shares)		(258,000)	(3,401,000)	(6,526,000)
Forfeited (in shares)		(820,000)	(1,441,000)	(1,397,000)
Exercised (in shares)		(2,488,000)	(4,778,000)	(6,229,000)
Balance - Ending (in shares)		15,521,000	18,571,000	21,389,000
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	$ 9.14	$ 4.21
Granted (in dollars per share)		20.89	26.38	21.05
Forfeited (in dollars per share)		22.14	19.31	11.79
Exercised (in dollars per share)		5.18	5.69	3.21
Balance - Ending (in dollars per share)		$ 13.18	12.40	9.14
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options vested and expected to vest, Outstanding (in shares)		15,496,000
Options vested and expected to vest, Weighted average exercise price (in dollars per share)		$ 13.17
Options vested and expected to vest, Weighted average remaining contractual life (in years)		3 years 2 months 28 days
Options vested and expected to vest, Aggregate intrinsic value		$ 120,178
Options exercisable, Outstanding (in shares)		12,084,000
Options exercisable, Weighted average exercise price (in dollars per share)		$ 10.52
Options exercisable, Weighted average remaining contractual life (in years)		2 years 9 months 24 days
Options exercisable, Aggregate intrinsic value		$ 118,226
Compensation cost not yet recognized		$ 39,500
Compensation cost not yet recognized period of recognition		1 year 9 months 18 days
Weighted-average fair value per share granted		$ 8.42	$ 11.13	$ 8.10
Intrinsic value of options exercised		$ 41,484	$ 92,323	$ 113,590
Total fair value of awards vested		$ 26,411	$ 25,350	$ 11,800
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		6,750,770
Maximum employee subscription rate			15.00%
Purchase price of common stock as percentage of lower of fair market value of common stock on first day of offering period or last day of purchase period			85.00%
Stock Options and Restricted Stock Units, Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuances		19,720,000
Reserved for Future Option, Restricted Stock Unit and Other Equity Award Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuances		27,412,000
Reserved for Future ESPP Issuances [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuances		6,751,000
Stock Plans 2000, 2008 and 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuances		47,131,910
Stock Plan, 2000 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					21,500,000
Stock Plan, 2000 [Member] \| Stock Options, Nonqualifying [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options					85.00%
Award vesting period					4 years
Stock Plan, 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized							5,000,000
Stock Plan, 2009 [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	21,000,000
Number of shares authorized before adjustments	9,000,000
Individual Owning 10 Percent or More of Stock [Member] \| Stock Plan, 2000 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options					110.00%
Minimum stock ownership percent triggering early award expiration					10.00%
Individual Owning 10 Percent or More of Stock [Member] \| Stock Plan, 2000 [Member] \| Stock Options, Nonqualifying [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period				5 years
Individual Owning 10 Percent or More of Stock [Member] \| Stock Plan, 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options							110.00%
Minimum stock ownership percent triggering early award expiration							10.00%
Individual Owning 10 Percent or More of Stock [Member] \| Stock Plan, 2009 [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options	110.00%
Minimum stock ownership percent triggering early award expiration	10.00%
Award expiration period	5 years
Employee [Member] \| Stock Plan, 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options							100.00%
Employee [Member] \| Stock Plan, 2009 [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options	100.00%
Directors and Other Service Providers [Member] \| Stock Plan, 2008 [Member] \| Stock Options, Nonqualifying [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options							100.00%
Directors and Other Service Providers [Member] \| Stock Plan, 2009 [Member] \| Stock Options, Nonqualifying [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price for non-statutory options	100.00%
Individual Owning 10 Percent or Less of Stock [Member] \| Stock Plan, 2000 [Member] \| Stock Options, Nonqualifying [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period					10 years
Individual Owning 10 Percent or Less of Stock [Member] \| Stock Plan, 2009 [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period	7 years
Award vesting period	4 years
Maximum stock ownership percent triggering early award expiration	10.00%
Share-based Compensation Award Authorized Number Changes, Lesser of Fixed Amount of Shares [Member] \| Stock Plan, 2009 [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized, maximum						7,000,000
Share-based Compensation Award Authorized Number Changes, Lesser of Outstanding Shares on Last Day of Preceeding Year [Member] \| Stock Plan, 2009 [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase to number of shares authorized, maximum, percent						5.00%
Minimum [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term in years				4 years 1 month 6 days
Maximum [Member] \| 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

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net income	$ 44,273	$ 66,836	$ 62,492
Other comprehensive income (loss):
Foreign currency translation (losses) gains	(1,617)	524	(553)
Unrealized (losses) gains on investments	(587)	3,331	(1,702)
Unrealized losses on cash flow hedges	0	0	(74)
Tax benefit (provision) related to items of other comprehensive income or loss	205	(1,166)	550
Other comprehensive (loss) income, net of tax	(1,999)	2,689	(1,779)
Comprehensive income	$ 42,274	$ 69,525	$ 60,713

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Net Income Per Share (Tables)

12 Months Ended

Dec. 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):



	Fiscal Year
	2013	2012	2011
Numerator:
Net income	44,273	66,836	62,492

Denominator:
Basic shares:
Weighted-average common stock outstanding-basic	162,435	158,074	152,581
Diluted shares:
Weighted-average common stock outstanding-basic	162,435	158,074	152,581
Effect of potentially dilutive securities:
Stock options	5,685	8,214	11,200
RSUs	35	—	—
ESPP	28	41	—
Weighted-average shares used to compute diluted net income per share	168,183	166,329	163,781
Net income per share:
Basic	0.27	0.42	0.41
Diluted	0.26	0.40	0.38

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

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):



	Fiscal Year
	2013	2012	2011
Stock options	7,397	7,183	3,893
RSUs	2,774	291	—
ESPP	419	321	122
	10,590	7,795	4,015

Summary of Significant Accounting Policies , Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - customers	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, benchmark		10.00%
Number of customers accounting for 10% or more of concentration risk	1	0
Percentage from a single customer	13.00%
Sales Revenue [Member]
Concentration Risk [Line Items]
Concentration risk, benchmark			10.00%
Number of customers accounting for 10% or more of concentration risk	1	1	0
Percentage from a single customer	12.00%	11.00%

Accumulated Other Comprehensive Income (Changes in Accumulated Balances of Other Comprehensive Income)(Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 3,091	$ 402
Other comprehensive income before reclassifications	(1,990)	2,721
Amounts reclassified from accumulated other comprehensive income	(9)	(32)
Net current-period other comprehensive income	(1,999)	2,689
Ending balance	1,092	3,091
Accumulated Other Comprehensive Income, Tax [Roll Forward]
Beginning balance, tax	(614)	552
Other comprehensive income before reclassifications, tax	200	(1,183)
Amounts reclassified from accumulated other comprehensive income, tax	5	17
Net current-period other comprehensive income, tax	205	(1,166)
Ending balance, tax	(409)	(614)
Foreign Currency Translation Gains and Losses [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	1,950	1,426
Other comprehensive income before reclassifications	(1,617)	524
Amounts reclassified from accumulated other comprehensive income	0	0
Net current-period other comprehensive income	(1,617)	524
Ending balance	333	1,950
Unrealized Gains and Losses on Investments [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	1,755	(1,576)
Other comprehensive income before reclassifications	(573)	3,380
Amounts reclassified from accumulated other comprehensive income	(14)	(49)
Net current-period other comprehensive income	(587)	3,331
Ending balance	$ 1,168	$ 1,755

Summary of Significant Accounting Policies , Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Reserve for sales returns	$ 4.6	$ 2.3

Income Taxes , Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Tax at federal statutory tax rate	$ 26,579	$ 36,749	$ 32,225
Stock-based compensation expense	4,571	1,570	2,222
State taxes—net of federal benefit	419	1,186	(2,457)
Domestic production activities deduction	(3,256)	(1,813)	(547)
Research and development credit	(1,650)	(144)	(887)
Foreign income taxed at different rates	6,672	(1,845)	(929)
Other	(1,667)	2,457	(46)
Total provision for income taxes	$ 31,668	$ 38,160	$ 29,581

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business—Fortinet, Inc. (“Fortinet”) was incorporated in Delaware in November 2000 and is a leading provider of network security appliances and UTM network security solutions to enterprises, service providers and governmental entities worldwide. Fortinet’s solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking, application control, anti-malware, intrusion prevention, web filtering, vulnerability management, anti-spam and WAN acceleration.

Basis of Presentation and Preparation—The consolidated financial statements of Fortinet and its wholly owned subsidiaries (collectively, the “Company,” “we,” “us” or “our”) have been prepared in accordance with GAAP. All intercompany transactions and balances have been eliminated in consolidation.

During the third quarter of fiscal 2013, we recorded an out-of-period adjustment of $3.0 million to correct the presentation on our consolidated balance sheets relating to our repurchase of 1,409,264 shares during fiscal 2009. This reclassification adjustment resulted in a decrease to the outstanding treasury stock balance and a corresponding decrease to additional paid-in capital. We believe the impact of the correction is not material to the current or prior fiscal periods. The shares that we repurchased in fiscal 2009 were retired immediately after repurchase. There was no outstanding treasury stock balance as of December 31, 2013.

Use of Estimates—The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include implicit service periods for revenue recognition, litigation and settlement costs and other loss contingencies, sales returns and allowances, reserve for bad debt, inventory valuation, warranty reserve, goodwill and other long-lived assets, investments, stock-based compensation, the accounting for income taxes related to deferred tax asset balances and reserves, and the accounting for business combinations. We base our estimates on historical experience and also on assumptions that we believe are reasonable. Actual results could differ from those estimates.

Certain Significant Risks and Uncertainties—We are subject to certain risks and uncertainties that could have a material adverse effect on our future financial position or results of operations, such as the following: changes in level of demand for our products and services, the timing and success of new product and service introductions by us or our competitors, price and sales competition and our ability to adapt to changing market conditions and dynamics such as changes in end-customer, distributor or reseller requirements or market needs, changes in expenses caused, for example, by fluctuations in foreign currency exchange rates, management of inventory, internal control over financial reporting, market acceptance of our new products and services, demand for UTM products and services in general, seasonality, failure of our channel partners to perform or other disruption in our channel, the quality of our products and services and the market perception of our response to new viruses or security breaches, general economic conditions, challenges in doing business outside of the United States, changes in customer relationships, litigation, or claims against us based on intellectual property, patent, product regulatory or other factors, product obsolescence, and our ability to attract and retain qualified employees.

We rely solely on suppliers and independent contract manufacturers for certain of our components and one third-party logistics company for distribution of certain of our products, which is located outside of U.S. The inability of any of these parties to fulfill our supply and logistics requirements could negatively impact our future operating results.

Concentration of Credit Risk—Financial instruments that subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term and long-term investments, and accounts receivable. We maintain our cash, cash equivalents, and investments in fixed income securities with major financial institutions, which our management assesses to be of high credit quality, in order to limit the exposure of each investment. Deposits held with banks may exceed the amount of insurance provided on such deposits.

Credit risk with respect to accounts receivable in general is diversified due to the number of different entities comprising our customer base and their location throughout the world. We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable. We maintain reserves for estimated potential credit losses.

As of December 31, 2013, one distributor, Exclusive Networks Group accounted for 13% of total accounts receivable. As of December 31, 2012, no single customer accounted for more than 10% of total accounts receivable.

During fiscal 2013 and fiscal 2012, one distributor, Exclusive Networks Group accounted for 12% and 11% of total revenue, respectively. During fiscal 2011, no single customer or distributor accounted for more than 10% of total revenue.

Financial Instruments and Fair Value—We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Due to their short-term nature, the carrying amounts reported in the consolidated financial statements approximate the fair value for accounts receivable, accounts payable, accrued liabilities, and accrued payroll and compensation.

Comprehensive Income—Comprehensive income includes certain changes in equity from non-owner sources that are excluded from net income. Specifically, cumulative foreign currency translation adjustments, unrealized gains and losses on available-for-sale investments, and unrealized gains and losses on cash flow hedges are included in comprehensive income.

Foreign Currency Translation and Transaction Gains and Losses—Assets and liabilities of foreign subsidiaries with non-U.S. dollar functional currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet dates and expenses are translated using average exchange rates during the period. The resulting foreign translation adjustments are included in the consolidated balance sheets in the stockholders' equity section as a component of accumulated other comprehensive income (loss) and are included in the consolidated statements of comprehensive income. Foreign currency transaction losses of $1.5 million, $0.5 million and $0.4 million, are included in other expense, net for fiscal 2013, 2012 and 2011, respectively.

Cash, Cash Equivalents and Available-for-sale Investments—We consider all highly liquid investments, purchased with original maturities of three months or less, to be cash equivalents. Cash and cash equivalents consist of balances with banks, and highly liquid investments in money market funds, commercial paper, and certificates of deposit and term deposits.

We classify our investments as available-for-sale at the time of purchase since it is our intent that these investments are available for current operations, and include these investments on our balance sheet as either short-term or long-term investments depending on their maturity at the time of purchase. Investments with original maturities greater than three months that mature less than one year from the consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the consolidated balance sheet date are classified as long-term investments.

Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. We consult with our investment managers and consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.

For debt securities in an unrealized loss position which is deemed to be other-than-temporary, the difference between the security’s then-current amortized cost basis and fair value is separated into (i) the amount of the impairment related to the credit loss (i.e., the credit loss component) and (ii) the amount of the impairment related to all other factors (i.e., the non-credit loss component). The credit loss component is recognized in earnings. The non-credit loss component is recognized in accumulated other comprehensive loss.

Other Investments—Investments in privately held companies where we own less than 20% of the voting stock and have no indicators of significant influence over operating and financial policies of those companies are included in Other assets in the consolidated balance sheets and are accounted for under the cost method. For these non-quoted investments, we regularly review the assumptions underlying the operating performance and cash flow forecasts based on information provided by these privately held companies. If it is determined that an other-than-temporary decline exists in an equity security, we write down the investment to its fair value and record the related impairment as an investment loss in our consolidated statements of operations.

Inventory—Inventory is recorded at the lower of average cost or market, after we give appropriate consideration to obsolescence and inventory in excess of anticipated future demand. Certain inventories are held at consignment locations. This consigned inventory was $4.3 million as of December 31, 2013, of which $4.1 million is raw materials and $0.2 million is finished goods and $2.3 million as of December 31, 2012, of which $2.1 million is raw materials and $0.2 million is finished goods. In assessing the ultimate recoverability of inventory, we are required to make estimates regarding future customer demand, the timing of new product introductions, economic trends and market conditions. If the actual product demand is significantly lower than forecasted, we could be required to record additional inventory write-downs, which could have an adverse impact on our gross margins and profitability.

Property and Equipment—Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:



	Estimated Useful Lives
Building and building improvements	2 years
Evaluation units	1 year
Computer software	1 year
Computer equipment and tooling	2 years
Furniture and fixtures	3 years
Leasehold improvements	Shorter of useful life or lease term

Impairment of Long-Lived Assets—We evaluate events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of those assets, we record an impairment charge in the period in which we make the determination. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Certain purchased intangible assets were measured at fair value resulting in an impairment charge of $0.5 million, which is recorded as Cost of sales in the consolidated statements of operations during fiscal 2013.

Goodwill —Goodwill represents the excess of purchase consideration over the estimated fair value of net assets of businesses acquired in a business combination. Goodwill acquired in a business combination are not amortized, but instead tested for impairment at least annually during the fourth quarter. We perform our annual goodwill impairment analysis at the reporting unit level. As of December 31, 2013, we had one reporting unit.

In reviewing goodwill for impairment we have the option to (i) assess qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount or (ii) bypass the qualitative assessment and proceed directly to a quantitative assessment. If we opt to perform a qualitative assessment, the factors we may review include, but are not limited to (a) macroeconomic conditions; (b) industry and market considerations; (c) cost factors; (d) overall financial performance; (e) other relevant entity-specific events such as changes in management, strategy, customers, or litigation; (f) events affecting the reporting unit; or (g) or sustained decrease in share price. If we believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. A quantitative assessment utilizes a two-step process. In the first step, the fair value of the reporting unit is determined, and is compared against its carrying amount, including goodwill. We consider a combination of an income-based approach using projected discounted cash flows and a market-based approach using multiples of comparable companies to determine the fair value. The fair value of the reporting unit is estimated using significant judgment based on a combination of the income and the market approaches. Under the income approach, we estimate fair value of the reporting unit based on the present value of forecasted future cash flows that the reporting unit is expected to generate over its remaining life. Under the market approach, we estimate fair value of our reporting unit based on an analysis that compares the value of the reporting unit to values of other companies in similar lines of business. If the fair value of the reporting unit is less than its carrying value, then we perform the second step to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill. When the carrying value of the reporting unit's goodwill exceeds its implied fair value, we record an impairment loss equal to the difference. We have not been required to perform this second step of the process because the fair value of our reporting unit exceeded the net book value as of December 31, 2013.

Determining the fair value of the reporting unit requires us to make judgments and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, operating trends, risk-adjusted discount rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We may also test goodwill for impairment between annual tests in the presence of impairment indicators.

Other Intangible Assets—Intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed using the straight-line method over the estimated economic lives of the assets, which range from one to six years.

Deferred Revenue—Deferred revenue consists of amounts that have been invoiced but that have not yet been recognized as revenue. This generally includes subscription and support services which are invoiced upfront and delivered over twelve months or longer.

Income Taxes—We record income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. We assess the likelihood that some portion or all of our deferred tax assets will be recovered from future taxable income within the respective jurisdictions, and to the extent we believe that recovery does not meet the “more-likely-than-not” standard, based solely on its technical merits as of the reporting date, we establish a valuation allowance.

We account for uncertain tax positions in accordance with GAAP, which defines the confidence level that a tax position must meet in order to be recognized in the financial statements. The tax effects of a position are recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.

We operate in various tax jurisdictions and are subject to audit by various tax authorities. We provide for tax contingencies whenever it is deemed more likely than not that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relevant tax law and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies.

Stock-Based Compensation Expense—We have elected to use the Black-Scholes option pricing model to determine the fair value of our employee stock options and ESPP. The fair value of RSUs is based on the closing market price of our common stock on the date of grant. Stock-based compensation expense is amortized on a straight-line basis, net of estimated forfeitures. PSUs are RSUs that contain both service-based and market-based vesting conditions. PSUs vest over a specified service period upon the satisfaction of certain market-based vesting conditions, and settle into shares of our common stock upon vesting over a two- or three-year period. The fair value of a PSU is calculated using the Monte Carlo simulation model on the date of grant and is based on the market price of our common stock on the date of grant modified to reflect the impact of the market-based vesting condition, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions.

Advertising Expense—Advertising costs are expensed when incurred and are included in operating expenses in the accompanying consolidated statements of operations. Our advertising expenses were not significant for any periods presented.

Research and Development Costs—Research and development costs are expensed as incurred.

Software Development Costs—The costs to develop software have not been capitalized as we believe our current software development process is essentially completed concurrent with the establishment of technological feasibility.

Revenue Recognition—We derive revenue from sales of products, including appliances and software, and services, including subscription, support and other services. The majority of our products are hardware appliances containing software components that function together to provide the essential functionality of the product.We record revenue from our hardware appliances in accordance with general revenue recognition accounting guidance.

Our product revenue also includes software products that may operate on the hardware appliances, but are not considered essential to the functionality of the hardware and are subject to industry-specific software revenue recognition guidance. Certain of our software, when sold with our appliances, are considered essential to their functionality and as a result are accounted for as non-software deliverables. However, this same software, if sold separately, is accounted for under industry-specific software revenue recognition guidance.

When a sales arrangement contains multiple elements, such as hardware appliances, software, customer support services, and/or professional services, we allocate revenue to each element based on a selling price hierarchy. In multiple element arrangements where software is more-than-incidental, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy. When applying the relative selling price method, we determine the selling price for each deliverable using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use our best estimate of selling (“BESP”) price for that deliverable. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for each element.

VSOE of fair value for elements of an arrangement is based upon the normal pricing practices for those services when sold separately. In establishing VSOE, we require that a substantial majority of the selling prices for a service fall within a reasonably narrow pricing range, generally evidenced by a substantial majority of such historical stand-alone transactions falling within a reasonably narrow range of the median rates.

We are typically not able to determine TPE for our products or services. TPE is determined based on competitor prices for similar deliverables when sold separately which is generally unavailable.

For our hardware appliances, we use BESP as our selling price. For our support and other services, we generally use VSOE as our selling price estimate. When we are unable to establish a selling price using VSOE for our support and other services, we use BESP in our allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis. We determine BESP for a product or service by considering multiple factors including, but not limited to, cost of products, gross margin objectives, pricing practices, geographies, customer classes and distribution channels.

We recognize revenue for our software sales based on industry-specific software revenue recognition guidance. Under industry-specific software revenue recognition guidance, we use the residual method to recognize revenue when a product agreement includes one or more elements to be delivered and VSOE of fair value for all undelivered elements exists. If evidence of the fair value of one or more undelivered elements does not exist, all revenue is generally deferred and recognized when delivery of those elements occurs or when fair value can be established. When the undelivered element for which we do not have VSOE of fair value is support, revenue for the entire arrangement is recognized ratably over the support period.

Revenue is recognized when all of the following criteria have been met:


•	Persuasive evidence of an arrangement exists. Binding contracts or purchase orders are generally used to determine the existence of an arrangement.


•	Delivery has occurred or services have been rendered. Delivery occurs when we fulfill an order and title and risk of loss has been transferred. Services revenue is deferred and recognized ratably over the period during which the services are to be performed, which is typically from one to three years. Professional service revenue is recognized upon delivery or completion of performance.

•

Sales price is fixed or determinable. We assess whether the sales price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. In the event payment terms differ from our standard business practices, the sales price is deemed to be not fixed or determinable and revenue is recognized when the payments become due, provided the remaining criteria for revenue recognition have been met. In the event the sales price is subject to refund or adjustment, the sales price is deemed to be not fixed or determinable and revenue is recognized when the refund or adjustment privileges expire provided the remaining criteria for revenue recognition have been met.


•	Collectibility is probable. We assess collectibility based primarily on creditworthiness as determined by credit checks and analysis, as well as payment history.

For arrangements which include end-customer acceptance criteria, revenue is recognized upon acceptance. We recognize product revenue on sales to distributors that have no general right of return and direct sales to end-customers upon shipment, once all other revenue recognition criteria have been met. Certain distributors that stock our products are granted stock rotation rights,limited rights of return as well as rebates for sales of our products. The arrangement fee for this group of distributors is not fixed and determinable when products are shipped and revenue is therefore deferred and recognized upon sell-through. Substantially all of our products have been sold in combination with services, which consist of subscriptions and/or support. Subscription services provide access to our antivirus, intrusion prevention, web filtering, and anti-spam functionality. Support services include rights to unspecified software upgrades, maintenance releases and patches, telephone and Internet access to technical support personnel, and hardware support.

The subscription and support services start on the date the customer registers the appliance. The customer is then entitled to service for the stated contractual period beginning on the registration date.

We offer certain sales incentives to channel partners. We reduce revenue for estimates of sales returns and allowances. Additionally, in limited circumstances we may permit end-customers, distributors and resellers to return our products, subject to varying limitations, for a refund within a reasonably short period from the date of purchase. We estimate and record reserves for sales incentives and sales returns based on historical experience.

Shipping charges billed to customers are included in revenues and related costs are included in cost of revenue. Sales commissions and other incremental costs to acquire contracts are expensed as incurred.

Accounts Receivable—Trade accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and reserves for sales returns and allowances. The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. The allowance for doubtful accounts was not significant as of December 31, 2013 and 2012. The reserve for sales returns and allowances is based on specific criteria including agreements to provide rebates and other factors known at the time, as well as estimates of the amount of goods shipped that will be returned. To determine the adequacy of the reserves for sales returns and allowances, we analyze historical experience of actual rebates and returns as well as current product return information. The reserve for sales returns was $4.6 million and $2.3 million as of December 31, 2013 and 2012, respectively.

Warranties—We generally provide a 1-year warranty on hardware products and a 90-day warranty on software. A provision for estimated future costs related to warranty activities is recorded as a component of cost of product revenues when the product revenues are recognized, based upon historical product failure rates and historical costs incurred in correcting product failures. In the event we change our warranty reserve estimates, the resulting charge against future cost of sales or reversal of previously recorded charges may materially affect our gross margins and operating results.

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



	Fiscal Year
	2013		2012		2011
Accrued warranty balance—beginning of the period	2,309		2,582		1,878
Warranty costs incurred	(3,444	)	(2,669	)	(1,778	)
Provision for warranty for the year, including warranty liabilities assumed in connection with an acquisition	3,965		2,639		2,103
Changes in prior period estimates	207		(243	)	379
Accrued warranty balance—end of the period	3,037		2,309		2,582

Foreign Currency Derivatives—Our sales contracts are primarily denominated in U.S. dollars and therefore substantially all of our revenue is not subject to foreign currency translation risk. However, a substantial portion of our operating expenses incurred outside the U.S. are denominated in foreign currencies and are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian dollar ("CAD"). To help protect against significant fluctuations in value and the volatility of future cash flows caused by changes in currency exchange rates, we engage in foreign currency risk management activities to hedge balance sheet items denominated in CAD. We do not use these contracts for speculative or trading purposes. All of the derivative instruments are with high quality financial institutions and we monitor the creditworthiness of these parties. These contracts typically have maturities between one and three months. We record changes in the fair value of forward exchange contracts related to balance sheet accounts as other expense, net in the consolidated statement of operations.

Additionally, independent of any hedging activities, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our consolidated statements of operations. Our hedging activities are intended to reduce, but not eliminate, the impact of currency exchange rate movements. As our hedging activities are relatively short-term in nature and are focused on CAD, long-term material changes in the value of the U.S. dollar against other foreign currencies, such as the EUR, GBP and JPY could adversely impact our operating expenses in the future.

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



	Buy/Sell	Notional
Balance Sheet Contracts:
Currency—As of December 31, 2013
CAD	Buy	21,867

Currency—As of December 31, 2012
CAD	Buy	17,968

Recently Adopted Accounting Pronouncements

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 on January 1, 2013, and presented the effects within Note 15, Accumulated Other Comprehensive Income.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU 2013-11 will be effective for us beginning in the first quarter of fiscal 2014. Early adoption is permitted. Since ASU 2013-11 only impacts financial statement disclosure requirements for unrecognized tax benefits, we do not expect its adoption to have an impact on our financial position or results of operations.

Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Inventory, Net [Abstract]
Raw materials	$ 4,319	$ 2,811
Finished goods	40,093	15,905
Consignment inventory	4,260	2,344
Inventory	$ 48,672	$ 21,060

Stockholders' Equity

12 Months Ended

Dec. 31, 2013

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

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Stock-Based Compensation Plans

Our stock-based compensation plans include the 2000 Stock Option Plan (the “2000 Plan”), the 2008 Stock Plan (the “2008 Plan”), the 2009 Equity Incentive Plan (the “2009 Plan”), and the ESPP.

2000 Stock Plan—During 2000, we adopted the 2000 Plan, which includes both incentive and non-statutory stock options. Under the 2000 Plan, we may grant options to purchase up to 21,500,000 shares of common stock to employees, directors and other service providers at prices not less than the fair market value at date of grant for incentive stock options and not less than 85% of fair market value for non-statutory options. Options granted to a person who, at the time of the grant, owns more than 10% of the voting power of all classes of stock shall be at no less than 110% of the fair market value and expire five years from the date of grant. All other options generally have a contractual term of 10 years. Options generally vest over four years.

2008 Stock Plan—On January 28, 2008, our board of directors approved the 2008 Plan and French Sub-Plan, which includes both incentive and non-statutory stock options. The maximum aggregate number of shares which may be subject to options and sold under the 2008 Plan and the French Sub-Plan is 5,000,000 shares, plus any shares that, as of the date of stockholder approval of the 2008 Plan, have been reserved but not issued under the 2000 Plan or shares subject to stock options or similar awards granted under the 2000 Plan that expire or otherwise terminate without having been exercised in full or that are forfeited to or repurchased by us.

Under the 2008 Plan and the French Sub-Plan, we may grant options to employees, directors and other service providers. In the case of an incentive stock option granted to an employee, who at the time of grant, owns stock representing more than 10% of the total combined voting power of all classes of stock, the exercise price shall be no less than 110% of the fair market value per share on the date of grant and expire five years from the date of grant, and options granted to any other employee, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. In the case of a nonstatutory stock option and options granted to other service providers, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant.

2009 Equity Incentive Plan—On November 17, 2009, our board of directors approved the 2009 Plan and French Sub-Plan, which includes awards of stock options, stock appreciation rights, restricted stock, RSUs, and PSUs or performance shares. The maximum aggregate number of shares that may be issued under the 2009 Plan is 9,000,000 shares, plus any shares subject to stock options or similar awards granted under the 2008 Plan and the 2000 Plan that expire or otherwise terminate without having been exercised in full and shares issued pursuant to awards granted under the 2008 Plan and the 2000 Plan that are forfeited to or repurchased by us, with the maximum number of shares to be added to the 2009 Plan pursuant to such terminations, forfeitures and repurchases not to exceed 21,000,000 shares. The shares may be authorized, but unissued or reacquired common stock. The number of shares available for issuance under the 2009 Plan will be increased on the first day of each fiscal year beginning with fiscal 2011, in an amount equal to the lesser of (i) 7,000,000 shares, (ii) five percent (5%) of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by our board of directors. Under the 2009 Plan and the French Sub-Plan, we may grant awards to employees, directors and other service providers. In the case of an incentive stock option granted to an employee who, at the time of the grant, owns stock representing more than 10% of the voting power of all classes of stock, the exercise price shall be no less than 110% of the fair market value per share on the date of grant and expire five years from the date of grant, and options granted to any other employee, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. In the case of a non statutory stock option and options granted to other service providers, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. Options granted to individuals owning less than 10% of the total combined voting power of all classes of stock generally have a contractual term of seven years and options generally vest over four years.

As of December 31, 2013, a total of 47,131,910 shares were authorized and available for issuance under the 2000 Plan, 2008 Plan and 2009 Plan.

Employee Stock Purchase Plan—In June 2011, our stockholders approved the ESPP. The purpose of the ESPP is to provide eligible employees with the opportunity to purchase common stock through regular, systematic payroll deductions, up to a maximum of 15% of employees’ compensation for each purchase period at purchase prices equal to 85% of the lesser of the fair market value of our common stock at the first trading date of the applicable offering period or the purchase date. As of December 31, 2013, 6,750,770 shares were authorized and available for issuance under the ESPP.

Employee Stock Options

In determining the fair value of our employee stock options, we use the Black-Scholes option pricing model, which employs the following assumptions.

Valuation method—We estimate the fair value of stock options granted.

Expected Term—The expected term represents the period that our stock-based awards are expected to be outstanding. As we do not have sufficient historical experience for determining the expected term of the stock option awards granted, we have based our expected term on the simplified method, which is calculated as the average weighted vesting period and contractual life.

Expected Volatility—The computation of expected volatility for the periods presented includes the historical and implied stock volatility of comparable companies from a representative peer group selected based on industry and market capitalization data and our weighted historical volatility following our initial public offering in November 2009.

Fair Value of Common Stock—The fair value of our common stock is the closing sales price of the common stock (or the closing bid, if no sales were reported) on the effective on the date of grant.

Risk-Free Interest Rate—We base the risk-free interest rate used in the Black-Scholes valuation model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Expected Dividend—The expected dividend weighted-average assumption is zero.

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



	Fiscal Year
	2013	2012	2011
Expected term in years	4.6	4.6	4.1 – 4.6
Volatility (%)	45 – 48	46 – 52	40 – 57
Risk-free interest rate (%)	1.2	0.7 – 0.9	0.6 – 2.0
Dividend rate (%)	—	—	—

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, 2010	22,489		4.21
Granted	6,526		21.05
Forfeited	(1,397	)	11.79
Exercised	(6,229	)	3.21
Balance—December 31, 2011	21,389		9.14
Granted	3,401		26.38
Forfeited	(1,441	)	19.31
Exercised	(4,778	)	5.69
Balance—December 31, 2012	18,571		12.40
Granted	258		20.89
Forfeited	(820	)	22.14
Exercised	(2,488	)	5.18
Balance—December 31, 2013	15,521		13.18
Options vested and expected to vest—December 31, 2013	15,496		13.17	3.24	120,178
Options exercisable—December 31, 2013	12,084		10.52	2.82	118,226

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 December 31, 2013, for all in-the-money options. As of December 31, 2013, total compensation expense related to unvested stock options granted to employees but not yet recognized was $39.5 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average period of 1.8 years.

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



	Fiscal Year
	2013	2012	2011
Weighted-average fair value per share granted	8.42	11.13	8.10
Intrinsic value of options exercised	41,484	92,323	113,590
Fair value of options vested	26,411	25,350	11,800

The following table summarizes information about outstanding and exercisable stock options as of December 31, 2013, as follows (in 000’s, except per share amounts, exercise prices and contractual life):



	Options Outstanding			Options Exercisable
Range of Exercise Prices ($)	Number Outstanding	Weighted- Average Remaining Contractual Life (Years)	Weighted- Average Exercise Price ($)	Number Exercisable	Weighted- Average Exercise Price ($)
0.48–1.20	1,331	1.75	0.97	1,331	0.97
3.74–4.65	4,902	1.66	3.75	4,902	3.75
5.50–6.25	152	2.71	5.64	152	5.64
8.43–8.99	1,636	3.16	8.55	1,486	8.53
15.28–19.94	382	4.15	15.88	231	15.28
20.13–24.92	4,835	4.41	21.32	2,902	21.20
26.70–26.70	2,283	5.01	26.70	1,080	26.70
	15,521			12,084

Restricted Stock Units

The following table summarizes the activity and related information for RSUs for the periods 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, 2011	—		—
Granted	873		23.79
Forfeited	(43	)	24.76
Vested	—		—
Balance—December 31, 2012	830		23.73
Granted	4,104		21.75
Forfeited	(507	)	21.48
Vested	(228	)	23.89
Balance—December 31, 2013	4,199		22.00
RSUs expected to vest—December 31, 2013	3,898		22.02

As of December 31, 2013, total compensation expense related to unvested RSUs that were granted to employees and non-employees under the 2009 Plan, but not yet recognized, was $82.6 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 2.99 years.

RSUs settle into shares of common stock upon vesting. RSUs that were previously granted began vesting in fiscal 2013. Upon the vesting of the RSUs, we net-settled the RSUs and withheld a portion of the shares to satisfy minimum statutory employee withholding taxes. Total payment for the employees’ tax obligations to the taxing authorities is reflected as a financing activity within the consolidated statements of cash flows. These net settlements had the effect of share repurchases by us as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to us.

The following summarizes the number and value of the shares withheld for employee taxes for fiscal 2013 (in 000’s):



Shares withheld for taxes	70
Amount withheld for taxes ($)	1,452

Performance Stock Units

During fiscal 2013, we granted PSUs to certain of our executive officers. Based on the achievement of the market-based vesting conditions during the performance period, the final settlement of the PSUs will range between 0% and 150% of the target shares underlying the PSUs based on a specified objective formula approved by our Compensation Committee. The PSUs entitle our executive officers to receive a number of shares of our common stock based on the performance of our stock price over a two- or three-year period as compared to the NASDAQ Composite index for the same periods.

The following table summarizes the weighted-average assumptions relating to our PSUs for fiscal 2013:



Expected term in years	2.97
Volatility (%)	50.11
Risk-free interest rate (%)	0.67
Dividend rate (%)	—

We granted 180,000 PSUs during fiscal 2013 to our executive officers, of which 50,000 shares were forfeited during fiscal 2013. The PSUs had a grant date fair value of $22.06 per share, and are included in the aforementioned activity for RSUs.

As of December 31, 2013, total compensation expense related to unvested PSUs that were granted to certain of our executive officers, but not yet recognized, was $2.4 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 2.59 years.

Shares Reserved for Future Issuances

The following table presents the common stock reserved for future issuance (in 000’s):



	December 31, 2013
Outstanding stock options and RSUs	19,720
Reserved for future stock option, RSU and other equity award grants	27,412
Reserved for future ESPP issuances	6,751
Total common stock reserved for future issuances	53,883

Employee Stock Purchase Plan

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



	Fiscal Year
	2013	2012	2011
Expected term in years	0.5	0.5	0.5
Volatility (%)	44.0	53.7	59.9
Risk-free interest rate (%)	0.12	0.12	0.07
Dividend rate (%)	—	—	—

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



	Fiscal Year
	2013	2012	2011
Weighted-average fair value per share granted ($)	6.11	7.06	6.56
Shares issued under the ESPP	672	577	—
Weighted-average price per share issued ($)	18.88	18.90	—

Stock-based Compensation Expense

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



	Fiscal Year
	2013	2012	2011
Cost of product revenue	383	333	183
Cost of services revenue	4,841	3,736	1,790
Research and development	13,271	9,226	4,691
Sales and marketing	19,526	12,793	9,325
General and administrative	6,450	4,602	3,026
Total stock-based compensation expense	44,471	30,690	19,015

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



	Fiscal Year
	2013	2012	2011
Stock options	20,806	24,506	17,416
RSUs	18,968	1,714	—
ESPP	4,697	4,470	1,599
Total stock-based compensation expense	44,471	30,690	19,015

Total income tax benefit associated with stock-based compensation that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s):



	Fiscal Year
	2013	2012	2011
Income tax benefit associated with stock-based compensation	8,331	5,870	3,822

Share Repurchase Program

On December 6, 2013, our Board of Directors authorized a Share Repurchase Program (“the Program”) to repurchase up to $200.0 million of our outstanding common stock through December 31, 2014. Under the Program, share repurchases may be made by us from time to time in privately negotiated transactions or in open market transactions. The Program does not require us to purchase a minimum number of shares, and may be suspended, modified or discontinued at any time without prior notice. In December 2013, we repurchased 2.1 million shares of common stock under the Program in open market transactions for an aggregate purchase price of $38.9 million. The share repurchases were financed by available cash balances and cash from operations. As of December 31, 2013, $161.1 million remains available for future share repurchases under the Program.

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
REVENUE:
Product	$ 278,046	$ 248,948	$ 197,408
Services	329,723	274,043	220,268
Ratable and other revenue	7,528	10,648	15,900
Total revenue	615,297	533,639	433,576
COST OF REVENUE:
Product	114,611	93,971	73,201
Services	64,123	50,682	35,486
Ratable and other revenue	1,909	2,767	4,911
Total cost of revenue	180,643	147,420	113,598
GROSS PROFIT:
Product	163,435	154,977	124,207
Services	265,600	223,361	184,782
Ratable and other revenue	5,619	7,881	10,989
Total gross profit	434,654	386,219	319,978
OPERATING EXPENSES:
Research and development	102,660	81,078	63,577
Sales and marketing	224,991	179,155	145,532
General and administrative	34,913	25,511	21,965
Total operating expenses	362,564	285,744	231,074
OPERATING INCOME	72,090	100,475	88,904
INTEREST INCOME	5,306	5,006	3,523
OTHER EXPENSE—Net	(1,455)	(485)	(354)
INCOME BEFORE INCOME TAXES	75,941	104,996	92,073
PROVISION FOR INCOME TAXES	31,668	38,160	29,581
NET INCOME	$ 44,273	$ 66,836	$ 62,492
Net income per share attributable to common stockholders (Note 8):
Basic (in dollars per share)	$ 0.27	$ 0.42	$ 0.41
Diluted (in dollars per share)	$ 0.26	$ 0.40	$ 0.38
Weighted-average shares outstanding:
Basic (in shares)	162,435	158,074	152,581
Diluted (in shares)	168,183	166,329	163,781

Stockholders' Equity (Tables)

12 Months Ended

Dec. 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]



	Fiscal Year
	2013	2012	2011
Expected term in years	4.6	4.6	4.1 – 4.6
Volatility (%)	45 – 48	46 – 52	40 – 57
Risk-free interest rate (%)	1.2	0.7 – 0.9	0.6 – 2.0
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):



	Fiscal Year
	2013	2012	2011
Weighted-average fair value per share granted	8.42	11.13	8.10
Intrinsic value of options exercised	41,484	92,323	113,590
Fair value of options vested	26,411	25,350	11,800

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, 2010	22,489		4.21
Granted	6,526		21.05
Forfeited	(1,397	)	11.79
Exercised	(6,229	)	3.21
Balance—December 31, 2011	21,389		9.14
Granted	3,401		26.38
Forfeited	(1,441	)	19.31
Exercised	(4,778	)	5.69
Balance—December 31, 2012	18,571		12.40
Granted	258		20.89
Forfeited	(820	)	22.14
Exercised	(2,488	)	5.18
Balance—December 31, 2013	15,521		13.18
Options vested and expected to vest—December 31, 2013	15,496		13.17	3.24	120,178
Options exercisable—December 31, 2013	12,084		10.52	2.82	118,226

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]



	Options Outstanding			Options Exercisable
Range of Exercise Prices ($)	Number Outstanding	Weighted- Average Remaining Contractual Life (Years)	Weighted- Average Exercise Price ($)	Number Exercisable	Weighted- Average Exercise Price ($)
0.48–1.20	1,331	1.75	0.97	1,331	0.97
3.74–4.65	4,902	1.66	3.75	4,902	3.75
5.50–6.25	152	2.71	5.64	152	5.64
8.43–8.99	1,636	3.16	8.55	1,486	8.53
15.28–19.94	382	4.15	15.88	231	15.28
20.13–24.92	4,835	4.41	21.32	2,902	21.20
26.70–26.70	2,283	5.01	26.70	1,080	26.70
	15,521			12,084

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 periods 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, 2011	—		—
Granted	873		23.79
Forfeited	(43	)	24.76
Vested	—		—
Balance—December 31, 2012	830		23.73
Granted	4,104		21.75
Forfeited	(507	)	21.48
Vested	(228	)	23.89
Balance—December 31, 2013	4,199		22.00
RSUs expected to vest—December 31, 2013	3,898		22.02

Schedule of Share-based Compensation, Shares Withheld for Taxes [Table Text Block]

The following summarizes the number and value of the shares withheld for employee taxes for fiscal 2013 (in 000’s):



Shares withheld for taxes	70
Amount withheld for taxes ($)	1,452

Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions [Table Text Block]

The following table summarizes the weighted-average assumptions relating to our PSUs for fiscal 2013:



Expected term in years	2.97
Volatility (%)	50.11
Risk-free interest rate (%)	0.67
Dividend rate (%)	—

Schedule of Shares Reserved for Future Issuance [Table Text Block]

The following table presents the common stock reserved for future issuance (in 000’s):



	December 31, 2013
Outstanding stock options and RSUs	19,720
Reserved for future stock option, RSU and other equity award grants	27,412
Reserved for future ESPP issuances	6,751
Total common stock reserved for future issuances	53,883

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

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



	Fiscal Year
	2013	2012	2011
Expected term in years	0.5	0.5	0.5
Volatility (%)	44.0	53.7	59.9
Risk-free interest rate (%)	0.12	0.12	0.07
Dividend rate (%)	—	—	—

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



	Fiscal Year
	2013	2012	2011
Weighted-average fair value per share granted ($)	6.11	7.06	6.56
Shares issued under the ESPP	672	577	—
Weighted-average price per share issued ($)	18.88	18.90	—

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):



	Fiscal Year
	2013	2012	2011
Cost of product revenue	383	333	183
Cost of services revenue	4,841	3,736	1,790
Research and development	13,271	9,226	4,691
Sales and marketing	19,526	12,793	9,325
General and administrative	6,450	4,602	3,026
Total stock-based compensation expense	44,471	30,690	19,015

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



	Fiscal Year
	2013	2012	2011
Stock options	20,806	24,506	17,416
RSUs	18,968	1,714	—
ESPP	4,697	4,470	1,599
Total stock-based compensation expense	44,471	30,690	19,015

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

Total income tax benefit associated with stock-based compensation that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s):



	Fiscal Year
	2013	2012	2011
Income tax benefit associated with stock-based compensation	8,331	5,870	3,822

Goodwill and Other Intangible Assets - Net

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS - NET

GOODWILL AND OTHER INTANGIBLE ASSETS—Net

We recorded $2.9 million of goodwill based on the purchase price allocation of the acquisition of Coyote during fiscal 2013. There were no impairments to goodwill during fiscal 2013.

The following tables present other intangible assets ($ amounts in 000’s):



	December 31, 2013
	Weighted-Average Useful Life (in Years)	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets-net:
Developed technology	4.6	8,971	2,568	6,403
Customer relationships	6.0	500	62	438
Total other intangible assets—net		9,471	2,630	6,841



	December 31, 2012
	Weighted-Average Useful Life (in Years)	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets-net:
Developed technology	3.0	3,541	1,424	2,117
Total other intangible assets—net		3,541	1,424	2,117

Amortization expense was $1.7 million, $1.0 million, and $0.4 million in fiscal 2013, 2012 and 2011, respectively. The following table summarizes estimated future amortization expense of other intangible assets with finite lives for future fiscal years ($ amounts in 000’s):



	Amount
Fiscal Years:
2014	1,782
2015	1,601
2016	1,287
2017	901
2018	900
Thereafter	370
Total	6,841

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

The following table summarizes our future principal contractual obligations as of December 31, 2013 ($ amounts in 000's):



	Total	2014	2015	2016	2017	2018	Thereafter
Operating lease commitments	31,905	8,759	6,006	4,938	4,347	3,383	4,472
Less: Sublease rental income	1,140	720	420	—	—	—	—
Operating lease commitments, net	30,765	8,039	5,586	4,938	4,347	3,383	4,472
Purchase commitments	37,794	37,794	—	—	—	—	—
Other contract commitments	9,946	9,632	173	50	41	50	—
Total	78,505	55,465	5,759	4,988	4,388	3,433	4,472

Operating Leases—We lease certain facilities under various non-cancelable operating leases, which expire through 2020. The terms of certain operating leases provide for renewal options. Future minimum payments under the non-cancelable operating leases totaled $31.9 million as of December 31, 2013. Rent expense was $9.8 million, $8.7 million and $8.2 million for fiscal 2013, 2012, and 2011, respectively. Rent expense and sublease rental income are recognized using the straight-line method over the term of the lease. Sublease rental income was $0.7 million, $0.8 million, and $0.7 million in fiscal 2013, 2012, and 2011, respectively.

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 cancelable. As of December 31, 2013, we had $37.8 million of open purchase orders with our independent contract manufacturers that may not be cancelable.

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 December 31, 2013, we had $9.9 million in other purchase commitments.

Litigation—We are involved in disputes, litigation, and other legal actions, including, but not limited to, the matters described below. We are defending these litigation matters, and while there can be no assurances and the outcome of these matters is currently not determinable, we currently believe that there are no existing claims or proceedings that are likely to have a material adverse effect on our financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require us to make royalty payments, which could adversely affect our gross margins in future periods. If any of those events were to occur, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any, which could result in the need to adjust the liability and record additional expenses. We have not: recorded any material accrual for loss contingencies associated with such legal proceedings; determined that an unfavorable outcome is probable or reasonably possible; or determined that the amount or range of any possible loss is reasonably estimable.

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 were claiming unspecified damages and were 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. The litigation related to ESR is no longer estimated to be material to us.

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. 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 thereafter proceeded with Fortinet as the sole defendant. Between June and August 2013, we filed a number of pretrial motions with the Court. As a result of those motions, the Court found that NPS had engaged in litigation misconduct. The Court also granted our motion to strike NPS’s expert report on the issue of damages. Shortly thereafter, in September 2013, NPS agreed to abandon the case and we did not make any payments related to this case. NPS and its principals furthermore agreed not to sue us on related patents. The litigation related to NPS is no longer material to us.

In June 2012, we received a letter from SRI International, (“SRI”) claiming that we infringed certain SRI patents. We settled this matter in December 2013.

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.

Business Combinations Business Combinations (Tables)

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Schedule of Fair Value of Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the fair value of assets acquired and liabilities assumed ($ 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	2,872
Other assets	88
Total assets acquired	9,067
Current liabilities	1,078
Long-term liabilities	2,004
Total liabilities assumed	3,082
Total purchase price	5,985

Subsequent Events (Details) - Subsequent Event [Member] $ in Millions	1 Months Ended
	Jan. 31, 2014 USD ($)
Subsequent Event [Line Items]
Covenant-not-to-sue	$ 20.0
Covenant Not to Sue, Term	6 years

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Basis of Presentation and Preparation

Use of Estimates

Certain Significant Risks and Uncertainties

Concentration of Credit Risk

Financial Instruments and Fair Value

Comprehensive Income

Foreign Currency Translation and Transaction Gains and Losses

Cash, Cash Equivalents and Available-for-sale Investments

Other Investments

Inventory

Property and Equipment



	Estimated Useful Lives
Building and building improvements	2 years
Evaluation units	1 year
Computer software	1 year
Computer equipment and tooling	2 years
Furniture and fixtures	3 years
Leasehold improvements	Shorter of useful life or lease term

Impairment of Long-Lived Assets

Goodwill

Other Intangible Assets

Deferred Revenue and Revenue Recognition

We are typically not able to determine TPE for our products or services. TPE is determined based on competitor prices for similar deliverables when sold separately which is generally unavailable.

Revenue is recognized when all of the following criteria have been met:


•	Persuasive evidence of an arrangement exists. Binding contracts or purchase orders are generally used to determine the existence of an arrangement.


•	Delivery has occurred or services have been rendered. Delivery occurs when we fulfill an order and title and risk of loss has been transferred. Services revenue is deferred and recognized ratably over the period during which the services are to be performed, which is typically from one to three years. Professional service revenue is recognized upon delivery or completion of performance.

•


•	Collectibility is probable. We assess collectibility based primarily on creditworthiness as determined by credit checks and analysis, as well as payment history.

Income Taxes

Stock-Based Compensation Expense

Advertising Expense

Research and Development Costs

Research and Development Costs—Research and development costs are expensed as incurred.

Software Development Costs

Accounts Receivable

Warranties

Foreign Currency Derivatives

Financial Instruments and Fair Value , Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 726,001	$ 614,853
Unrealized Gains	1,565	1,925
Unrealized Losses	(394)	(167)
Total	727,172	616,611
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	205,428	141,470
Less Than 12 Months, Unrealized Losses	(394)	(162)
12 Months or Greater, Fair Value	500	5,010
12 Months or Greater, Unrealized Losses	0	(5)
Total, Fair Value	205,928	146,480
Total, Unrealized Losses	(394)	(167)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Due within one year	375,497	290,719
Due within one to three years	351,675	325,892
Total	727,172	616,611
U.S. government and agency securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,000
Unrealized Gains	1
Unrealized Losses	0
Total	2,001
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Total	2,001
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	603,185	529,738
Unrealized Gains	1,506	1,814
Unrealized Losses	(374)	(161)
Total	604,317	531,391
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	182,795	133,006
Less Than 12 Months, Unrealized Losses	(374)	(156)
12 Months or Greater, Fair Value	500	5,010
12 Months or Greater, Unrealized Losses	0	(5)
Total, Fair Value	183,295	138,016
Total, Unrealized Losses	(374)	(161)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Total	604,317	531,391
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	69,356	39,229
Unrealized Gains	7	22
Unrealized Losses	0	(6)
Total	69,363	39,245
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	7,897	8,464
Less Than 12 Months, Unrealized Losses	0	(6)
12 Months or Greater, Fair Value	0	0
12 Months or Greater, Unrealized Losses	0	0
Total, Fair Value	7,897	8,464
Total, Unrealized Losses	0	(6)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Total	69,363	39,245
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	38,815	36,787
Unrealized Gains	48	83
Unrealized Losses	(20)	0
Total	38,843	36,870
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	14,736
Less Than 12 Months, Unrealized Losses	(20)
12 Months or Greater, Fair Value	0
12 Months or Greater, Unrealized Losses	0
Total, Fair Value	14,736
Total, Unrealized Losses	(20)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Total	38,843	36,870
Certificates of deposit and term deposits [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,645	9,099
Unrealized Gains	3	6
Unrealized Losses	0	0
Total	12,648	9,105
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Total	$ 12,648	$ 9,105

Summary of Significant Accounting Policies , Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Consignment inventory	$ 4,260	$ 2,344
Consignment inventory, raw materials	4,100	2,100
Consignment inventory, finished goods	$ 200	$ 200

Segment Information (Tables)

12 Months Ended

Dec. 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):



	Fiscal Year
Revenue	2013	2012	2011
Americas:
United States	162,327	145,369	120,456
Other Americas	90,459	71,687	52,038
Total Americas	252,786	217,056	172,494
Europe, Middle East, and Africa ("EMEA")	208,979	184,175	152,385
Asia Pacific and Japan ("APAC")	153,532	132,408	108,697
Total revenue	615,297	533,639	433,576


Property and Equipment	December 31, 2013	December 31, 2012
Americas:
United States	29,334	18,764
Canada	4,372	4,376
Other Americas	45	87
Total Americas	33,751	23,227
EMEA	1,273	1,213
APAC	1,628	1,198
Total property and equipment—net	36,652	25,638

Investment in Privately-Held Company (Details) $ in Millions	Aug. 31, 2013 USD ($)
Investments, All Other Investments [Abstract]
Cost Method Investments, Original Cost	$ 2.0

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

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



	Fiscal Year
	2013		2012		2011
Accrued warranty balance—beginning of the period	2,309		2,582		1,878
Warranty costs incurred	(3,444	)	(2,669	)	(1,778	)
Provision for warranty for the year, including warranty liabilities assumed in connection with an acquisition	3,965		2,639		2,103
Changes in prior period estimates	207		(243	)	379
Accrued warranty balance—end of the period	3,037		2,309		2,582

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 December 31, 2013 was (amounts in 000’s):



	Buy/Sell	Notional
Balance Sheet Contracts:
Currency—As of December 31, 2013
CAD	Buy	21,867

Currency—As of December 31, 2012
CAD	Buy	17,968

Schedule II (Details) - USD ($) $ in Thousands	12 Months Ended
Schedule II (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 115	$ 336	$ 303
Charged to costs and expenses	(83)	(221)	33
Ending balance	32	115	336
Sales Returns Reserve [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	2,267	2,351	1,979
Charged to costs and expenses	2,306	(84)	372
Ending balance	$ 4,573	$ 2,267	$ 2,351

Summary of Significant Accounting Policies , Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Movement in Standard Product Warranty Accrual [Roll Forward]
Accrued warranty balance—beginning of the period	$ 2,309	$ 2,582	$ 1,878
Warranty costs incurred	(3,444)	(2,669)	(1,778)
Provision for warranty for the year, including warranty liabilities assumed in connection with an acquisition	3,965	2,639	2,103
Changes in prior period estimates	207	(243)	379
Accrued warranty balance—end of the period	$ 3,037	$ 2,309	$ 2,582
Hardware Products [Member]
Warranties [Line Items]
Warranty length	1 year
Software Products [Member]
Warranties [Line Items]
Warranty length	90 days

Accumulated Other Comprehensive Income (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
OTHER EXPENSE—Net	$ (1,455)	$ (485)	$ (354)
Provision for income taxes	(31,668)	(38,160)	(29,581)
NET INCOME	44,273	66,836	$ 62,492
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
OTHER EXPENSE—Net	(14)	(49)
Provision for income taxes	5	17
NET INCOME	$ (9)	$ (32)

- Definition

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

+ References

+ Details

Property and Equipment—Net (Tables)

12 Months Ended

Dec. 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):



	December 31, 2013		December 31, 2012
Land	13,895		13,895
Building and building improvements	610		610
Evaluation units	23,442		18,322
Computer equipment and software	22,442		17,176
Furniture and fixtures	1,697		1,501
Construction-in-progress	10,947		—
Leasehold improvements and tooling	5,417		5,354
Total property and equipment	78,450		56,858
Less: accumulated depreciation	(41,798	)	(31,220	)
Property and equipment—net	36,652		25,638

Commitments and Contingencies Minimum Operating Lease Payments (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Operating Lease Commitments:
Operating lease commitments, 2014	$ 8,759
Operating lease commitments, 2015	6,006
Operating lease commitments, 2016	4,938
Operating lease commitments, 2017	4,347
Operating lease commitments, 2018	3,383
Operating lease commitments, Thereafter	4,472
Operating lease commitments	31,905
Sublease Commitments:
Sublease rental income, 2014	720
Sublease rental income, 2015	420
Sublease rental income, 2016	0
Sublease rental income, 2017	0
Sublease rental income, 2018	0
Sublease rental income, Thereafter	0
Sublease rental income	1,140
Operating commitments, net:
Operating commitments, net, 2014	8,039
Operating commitments, net, 2015	5,586
Operating commitments, net, 2016	4,938
Operating commitments, net, 2017	4,347
Operating commitments, net, 2018	3,383
Operating commitments, net, Thereafter	4,472
Operating commitments, net	30,765
Purchase commitments:
Purchase commitments, 2014	37,794
Purchase commitments, 2015	0
Purchase commitments, 2016	0
Purchase commitments, 2017	0
Purchase commitments, 2018	0
Purchase commitments, Thereafter	0
Purchase commitments	37,794
Other contract commitments:
Other contract commitments, 2014	9,632
Other contract commitments, 2015	173
Other contract commitments, 2016	50
Other contract commitments, 2017	41
Other contract commitments, 2018	50
Other contract commitments, Thereafter	0
Other contract commitments	9,946
Contractual Obligation, Due in Third Year	4,988
Contractual Obligation	78,505
Contractual Obligation, Due in Next Twelve Months	55,465
Contractual Obligation, Due in Second Year	5,759
Contractual Obligation, Due in Fourth Year	4,388
Contractual Obligation, Due in Fifth Year	3,433
Contractual Obligation, Due after Fifth Year	$ 4,472

Deferred Revenue (Tables)

12 Months Ended

Dec. 31, 2013

Deferred Revenue Disclosure [Abstract]

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

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



	December 31, 2013	December 31, 2012
Product	2,915	5,411
Services	425,266	348,548
Ratable and other revenue	4,447	9,226
Total deferred revenue	432,628	363,185
Reported As:
Current	293,664	247,268
Non-current	138,964	115,917
Total deferred revenue	432,628	363,185

Financial Instruments and Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Financial Instruments and Fair Value [Abstract]

Summary of Investments [Table Text Block]

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



	December 31, 2013
	Amortized Cost	Unrealized Gains	Unrealized Losses		Fair Value
Corporate debt securities	603,185	1,506	(374	)	604,317
Commercial paper	69,356	7	—		69,363
Municipal bonds	38,815	48	(20	)	38,843
Certificates of deposit and term deposits	12,645	3	—		12,648
U.S. government and agency securities	2,000	1	—		2,001
Total available-for-sale securities	726,001	1,565	(394	)	727,172

	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]

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 ($ amounts in 000’s):



	December 31, 2013
	Less Than 12 Months			12 Months or Greater		Total
	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Corporate debt securities	182,795	(374	)	500	—	183,295	(374	)
Commercial paper	7,897	—		—	—	7,897	—
Municipal bonds	14,736	(20	)	—	—	14,736	(20	)
Total available-for-sale securities	205,428	(394	)	500	—	205,928	(394	)

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 ($ amounts in 000’s):



	December 31, 2012
	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 are as follows ($ amounts in 000’s)



	December 31, 2013	December 31, 2012
Due within one year	375,497	290,719
Due within one to three years	351,675	325,892
Total	727,172	616,611

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

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



	December 31, 2013				December 31, 2012
	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs	Significant Other Unobservable Remaining Inputs	Aggregate Fair Value	Quoted Prices in Active Markets For Identical Assets	Significant Other Observable Remaining Inputs	Significant Other Unobservable Remaining Inputs
		(Level 1)	(Level 2)	(Level 3)		(Level 1)	(Level 2)	(Level 3)
Assets:
Corporate debt securities	604,317	—	604,317	—	531,391	—	531,391	—
Commercial paper	71,363	—	71,363	—	41,994	—	41,994	—
Municipal bonds	38,843	—	38,843	—	36,870	—	36,870	—
Certificates of deposit and term deposits	12,648	—	12,648	—	9,105	—	9,105	—
Money market funds	5,724	5,724	—	—	39,871	39,871	—	—
U.S. government and agency securities	2,001	—	2,001	—	—	—	—	—
Total	734,896	5,724	729,172	—	659,231	39,871	619,360	—

Liabilities:
Contingent consideration	1,850	—	—	1,850	—	—	—	—
Total	1,850	—	—	—	—	—	—	—

Reported as:
Cash equivalents	7,724				42,620
Short-term investments	375,497				290,719
Long-term investments	351,675				325,892
Total	734,896				659,231

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]



	December 31, 2013
	Fair Value	Valuation Technique	Significant Unobservable Input	Range
Contingent consideration	$1,850	Probability Weighted Income Approach	Revenue (in 000's)	$7,000 - $12,000

			Probability of occurrence (%)	40%-80%

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table summarizes the changes in accumulated balances of other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000's):



	December 31, 2013
	Foreign Currency Translation Gains and Losses		Unrealized Gains and Losses on Investments		Tax benefit or provision related to items of other comprehensive income or loss		Total
Beginning balance	1,950		1,755		(614	)	3,091
Other comprehensive income before reclassifications	(1,617	)	(573	)	200		(1,990	)
Amounts reclassified from accumulated other comprehensive income	—		(14	)	5		(9	)
Net current-period other comprehensive income	(1,617	)	(587	)	205		(1,999	)
Ending balance	333		1,168		(409	)	1,092



	December 31, 2012
	Foreign Currency Translation Gains and Losses	Unrealized Gains and Losses on Investments		Tax benefit or provision related to items of other comprehensive income or loss		Total
Beginning balance	1,426	(1,576	)	552		402
Other comprehensive income before reclassifications	524	3,380		(1,183	)	2,721
Amounts reclassified from accumulated other comprehensive income	—	(49	)	17		(32	)
Net current-period other comprehensive income	524	3,331		(1,166	)	2,689
Ending balance	1,950	1,755		(614	)	3,091

The following table provides details about the reclassification out of accumulated other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000s):



December 31, 2013
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains on investments	(14	)	Other expense, net
Tax provision related to items of other comprehensive income or loss	5		Provision for income taxes
Total reclassification for the period	(9	)



December 31, 2012
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains on investments	(49	)	Other expense, net
Tax provision related to items of other comprehensive income or loss	17		Provision for income taxes
Total reclassification for the period	(32	)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=28358780&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Schedule II

3 Months Ended

Mar. 31, 2013

Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS



	Fiscal Year
	2013		2012		2011
	($ amounts in 000’s)
Allowance for Doubtful Accounts:
Beginning balance	115		336		303
Charged (credited) to costs and expenses, net of write-offs	(83	)	(221	)	33
Ending balance	32		115		336

Sales Returns Reserve:
Beginning balance	2,267		2,351		1,979
Charged (credited) to costs and expenses, net of deductions	2,306		(84	)	372
Ending balance	4,573		2,267		2,351

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Balance, shares at Dec. 31, 2010		150,172	(1,409)
Balance at Dec. 31, 2010	$ 232,453	$ 150	$ (2,995)	$ 251,844	$ 2,181	$ (18,727)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		6,229
Exercise of stock options	19,968	$ 6		19,962
Stock-based compensation expense	19,015			19,015
Income tax benefit from employee stock option plans	26,205			26,205
Net unrealized gain (loss) on investments—net of taxes	(1,153)				(1,153)
Net unrealized loss on derivatives qualifying as cash flow hedges	(74)				(74)
Net change in cumulative translation adjustments	(552)				(552)
Net income	62,492					62,492
Balance, shares at Dec. 31, 2011		156,401	(1,409)
Balance at Dec. 31, 2011	358,354	$ 156	$ (2,995)	317,026	402	43,765
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		4,779
Exercise of stock options	27,183	$ 5		27,178
Issuance of common stock in connection with employee stock purchase plan (in shares)		577
Issuance of common stock in connection with employee stock purchase plan	10,904	$ 1		10,903
Stock-based compensation expense	30,690			30,690
Income tax benefit from employee stock option plans	14,278			14,278
Net unrealized gain (loss) on investments—net of taxes	2,165				2,165
Net change in cumulative translation adjustments	524				524
Net income	66,836					66,836
Balance, shares at Dec. 31, 2012		161,757	(1,409)
Balance at Dec. 31, 2012	510,934	$ 162	$ (2,995)	400,075	3,091	110,601
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		2,488
Exercise of stock options	12,888	$ 2		12,886
Issuance of common stock in connection with employee stock purchase plan (in shares)		672
Issuance of common stock in connection with employee stock purchase plan	12,696	$ 1		12,695
Issuance of common stock upon vesting of restricted stock units		228
Tax withholding upon vesting of restricted stock awards (in shares)		(70)
Tax withholding upon vesting of restricted stock awards	$ (1,452)			(1,452)
Repurchase and retirement of common stock (in shares)	2,100	(3,540)	1,409
Repurchase and retirement of common stock	$ (38,949)	$ (4)	$ 2,995	(8,929)		(33,011)
Stock-based compensation expense	43,909			43,909
Income tax benefit from employee stock option plans	3,460			3,460
Net unrealized gain (loss) on investments—net of taxes	(382)				(382)
Net change in cumulative translation adjustments	(1,617)				(1,617)
Net income	44,273					44,273
Balance, shares at Dec. 31, 2013		161,535	0
Balance at Dec. 31, 2013	$ 585,760	$ 161	$ 0	$ 462,644	$ 1,092	$ 121,863

Stockholders' Equity , Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 44,471	$ 30,690	$ 19,015
Income tax benefit from employee stock option plans	8,331	5,870	3,822
Cost of Product Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	383	333	183
Cost of Services Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	4,841	3,736	1,790
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	13,271	9,226	4,691
Selling and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	19,526	12,793	9,325
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	6,450	4,602	3,026
Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	20,806	24,506	17,416
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	18,968	1,714	0
ESPP [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 4,697	$ 4,470	$ 1,599

Consolidated Balance Sheets Parenthetical - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Allowance for doubtful accounts and sales returns	$ 4,605	$ 2,382
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	300,000	300,000
Common Stock, shares issued	161,535	161,757
Common Stock, shares outstanding	161,535	160,348

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

Income before income taxes consisted of the following ($ amounts in 000’s):



	Fiscal Year
	2013		2012	2011
Domestic	83,076		95,730	85,411
Foreign	(7,135	)	9,266	6,662
Total income before income taxes	75,941		104,996	92,073

The provision for income taxes consisted of the following ($ amounts in 000’s):



	Fiscal Year
	2013		2012		2011
Current:
Federal	43,384		43,765		34,856
State	2,490		1,992		2,785
Foreign	4,175		2,266		1,402
Total current	50,049		48,023		39,043
Deferred:
Federal	(17,149	)	(9,677	)	(9,326	)
State	(1,232	)	(186	)	(136	)
Foreign	—		—		—
Total deferred	(18,381	)	(9,863	)	(9,462	)
Provision for income taxes	31,668		38,160		29,581

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows ($ amounts in 000’s):



	Fiscal Year
	2013		2012		2011
Tax at federal statutory tax rate	26,579		36,749		32,225
Stock-based compensation expense	4,571		1,570		2,222
State taxes—net of federal benefit	419		1,186		(2,457	)
Domestic production activities deduction	(3,256	)	(1,813	)	(547	)
Research and development credit	(1,650	)	(144	)	(887	)
Foreign income taxed at different rates	6,672		(1,845	)	(929	)
Other	(1,667	)	2,457		(46	)
Total provision for income taxes	31,668		38,160		29,581

Significant permanent differences arise from the portion of stock-based compensation expense that is not expected to generate a tax deduction, such as stock-based compensation expense on stock option grants to certain foreign employees, offset by the actual tax benefits in the current periods from disqualifying dispositions of shares held by our U.S. employees. For stock options exercised by our U.S. employees, we receive an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price, tax effected. Due to this, our income taxes payable have been reduced by the tax benefits from employee stock plan awards. The income tax benefits for fiscal 2013, 2012, and 2011 associated with dispositions from employee stock transactions of $3.5 million, $14.3 million, and $26.2 million, respectively, were recognized as additional paid-in capital.

As of December 31, 2013, we did not recognize California tax credits relating to excess tax benefits for stock-based compensation expense of $3.5 million. Unrecognized excess tax benefits will be accounted for as a credit to additional paid-in capital when realized through a reduction in income taxes payable.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets as of the years ended are presented below ($ amount in 000’s):



	December 31, 2013		December 31, 2012
Deferred tax assets:
Net operating loss carryforward	2,183		587
Deferred revenue	47,341		36,438
Nondeductible reserves and accruals	16,055		13,437
Depreciation and amortization	(465	)	920
General business credit carryforward	439		1,381
Stock-based compensation expense	15,468		9,413
Other	17		12
Total deferred tax assets	81,038		62,188

In assessing the realizability of deferred tax assets, we considered whether it is more likely than not that some portion or all of our deferred tax assets will be realized. This realization is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We concluded that it is more likely than not that we would be able to realize the benefits of our deferred tax assets in the future.

As of December 31, 2013, we had foreign net operating loss carryforwards of $21.7 million. The foreign net operating losses carry forward indefinitely. As of December 31, 2013, we had state tax credit carryforwards of $4.2 million available to offset our future state taxes. The state credits carry forward indefinitely.

Our policy with respect to undistributed foreign subsidiaries’ earnings is to consider those earnings to be indefinitely reinvested and, accordingly, no related provision of U.S. federal and state income taxes has been provided on such earnings. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes in the various foreign countries. As of December 31, 2013, we have not recorded U.S. income tax on $27.5 million of foreign earnings that are deemed to be permanently reinvested overseas.

We operate under a tax incentive agreement in Singapore, which is effective through December 31, 2023, and may be extended if certain additional requirements are satisfied. The tax incentive agreement is conditional upon our meeting certain employment and investment thresholds. We did not realize any tax savings from the Singapore tax incentives in fiscal 2013 because of net tax losses in that jurisdiction.

As of December 31, 2013, we had $29.6 million of unrecognized tax benefits, of which, if recognized, $29.2 million would favorably affect our effective tax rate. Our policy is to include accrued interest and penalties related to uncertain tax benefits in income tax expense. As of December 31, 2013, 2012 and 2011, accrued interest and penalties were $1.0 million, $1.5 million, and $0.6 million, respectively.

The aggregate changes in the balance of unrecognized tax benefits are as follows ($ amounts in 000’s):



	Fiscal Year
	2013		2012		2011
Unrecognized tax benefits, beginning of year	27,808		19,269		12,083
Gross increases for tax positions related to the current year	4,713		7,550		9,049
Gross increases for tax positions related to the prior year	405		1,479		—
Gross decreases for tax positions related to the prior year	(3,322	)	(490	)	(1,863	)
Unrecognized tax benefits, end of year	29,604		27,808		19,269

As of December 31, 2013, 2012 and 2011, $30.2 million, $28.8 million, and $19.1 million, respectively, of the amounts reflected above were recorded as Income taxes payable—non-current in our consolidated balance sheet.

As of December 31, 2013, there was no unrecognized tax benefits that we expect would change significantly over the next 12 months.

We file income tax returns in the U.S. federal jurisdiction, and various U.S. state and foreign jurisdictions. As we have net operating loss carryforwards for the state jurisdictions, the statute of limitations is open for all tax years. Additionally, we have foreign net operating losses that have an indefinite life. Generally, we are no longer subject to non-U.S. income tax examinations by tax authorities for tax years prior to 2007.

During January 2013, the U.S. Federal Research and Development Tax Credit was reinstated retroactively to fiscal 2012. The U.S. Federal Research and Development Tax Credit benefit was recorded in the first quarter of fiscal 2013, the period of enactment. The State of California has been conducting an audit of our state income tax returns for fiscal 2010 and fiscal 2011. We do not expect this audit to have a significant detrimental effect on our income tax liability nor have a material impact on our results of operations.

On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment; however, we do not anticipate the impact of these changes to be material to our consolidated financial position, consolidated results of operations, or both.

Net Income Per Share

12 Months Ended

Dec. 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, RSUs, and 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):



	Fiscal Year
	2013	2012	2011
Numerator:
Net income	44,273	66,836	62,492

Denominator:
Basic shares:
Weighted-average common stock outstanding-basic	162,435	158,074	152,581
Diluted shares:
Weighted-average common stock outstanding-basic	162,435	158,074	152,581
Effect of potentially dilutive securities:
Stock options	5,685	8,214	11,200
RSUs	35	—	—
ESPP	28	41	—
Weighted-average shares used to compute diluted net income per share	168,183	166,329	163,781
Net income per share:
Basic	0.27	0.42	0.41
Diluted	0.26	0.40	0.38



	Fiscal Year
	2013	2012	2011
Stock options	7,397	7,183	3,893
RSUs	2,774	291	—
ESPP	419	321	122
	10,590	7,795	4,015

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 115,873	$ 122,975
Short-term investments	375,497	290,719
Accounts receivable, net of allowance for doubtful accounts and sales returns of $4,605 and $2,382 as of December 31, 2013 and 2012, respectively	130,471	107,642
Inventory	48,672	21,060
Deferred tax assets	50,980	13,663
Prepaid expenses and other current assets	14,053	13,215
Total current assets	735,546	569,274
PROPERTY AND EQUIPMENT—Net	36,652	25,638
DEFERRED TAX ASSET—Non-current	30,058	48,525
LONG-TERM INVESTMENTS	351,675	325,892
GOODWILL	2,872	0
OTHER INTANGIBLE ASSETS—Net	6,841	2,117
OTHER ASSETS	4,820	4,051
TOTAL ASSETS	1,168,464	975,497
CURRENT LIABILITIES:
Accounts payable	35,599	20,816
Accrued liabilities	27,380	18,481
Accrued payroll and compensation	34,997	28,957
Income taxes payable	21,421	3,782
Deferred revenue	293,664	247,268
Total current liabilities	413,061	319,304
DEFERRED REVENUE—Non-current	138,964	115,917
INCOME TAXES PAYABLE—Non-current	30,208	28,778
OTHER LIABILITIES	471	564
Total liabilities	582,704	464,563
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value — 300,000 shares authorized; 161,535 and 161,757 shares issued and 161,535 and 160,348 shares outstanding as of December 31, 2013 and December 31, 2012, respectively	161	162
Additional paid-in capital	462,644	400,075
Treasury stock	0	(2,995)
Accumulated other comprehensive income	1,092	3,091
Retained earnings	121,863	110,601
Total stockholders' equity	585,760	510,934
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,168,464	$ 975,497

Income Taxes , Reconciliation of Pre-Tax Income(Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
Domestic	$ 83,076	$ 95,730	$ 85,411
Foreign	(7,135)	9,266	6,662
INCOME BEFORE INCOME TAXES	$ 75,941	$ 104,996	$ 92,073

Summary of Significant Accounting Policies , Derivatives (Details) - CAD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
CAD
Derivative [Line Items]
Notional amount of forward exchange contracts	$ 21,867	$ 17,968

Business Combinations (2013 Acquisitions) (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 21, 2013	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Sep. 13, 2013	Mar. 31, 2013
Business Acquisition [Line Items]
Goodwill				$ 2,872	$ 0		$ 2,900
Xtera Communications, Inc. [Member]
Business Acquisition [Line Items]
Cash paid to acquire business		$ 1,700
Contingent consideration						$ 100
Finite-lived intangible assets		1,500	$ 1,500
Total consideration		1,800
Purchased tangible assets						$ 200
Estimated contingent obligation		$ 100	$ 100
Coyote Point Systems, Inc. [Member]
Business Acquisition [Line Items]
Cash paid to acquire business	$ 6,000
Contingent consideration	5,500
Cash and cash equivalents	206
Other current assets	501
Finite-lived intangible assets	2,800
Indefinite-lived intangible assets	2,600
Goodwill	2,872
Other assets	88
Total assets acquired	9,067
Current liabilities	1,078
Long-term liabilities	2,004
Total liabilities assumed	3,082
Total purchase price	5,985
Developed Technology [Member]
Business Acquisition [Line Items]
Amortizable life of purchased indentifiable intangible assets				4 years 7 months 17 days	2 years 11 months 23 days
Developed Technology [Member] \| Coyote Point Systems, Inc. [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 2,300
Useful life of finite-lived intangible assets	6 years
Amortizable life of purchased indentifiable intangible assets			6 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Amortizable life of purchased indentifiable intangible assets				6 years
Customer Relationships [Member] \| Coyote Point Systems, Inc. [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 500
Useful life of finite-lived intangible assets	6 years
Payable after Eighteen Months from Acquisition Date [Member] \| Coyote Point Systems, Inc. [Member]
Business Acquisition [Line Items]
Contingent consideration	$ 3,500
Payable after Two Years from Acquisition Date [Member] \| Coyote Point Systems, Inc. [Member]
Business Acquisition [Line Items]
Contingent consideration	2,000
In Process Research and Development [Member] \| Coyote Point Systems, Inc. [Member]
Business Acquisition [Line Items]
Indefinite-lived intangible assets	$ 2,600

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Dec. 31, 2013 USD ($) Segment_Managers business_activity operating_segment reportable_segment	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Segment Reporting Information [Line Items]
Business activity (in business activities) \| business_activity	1
Segment managers responsible for operations (in segment managers) \| Segment_Managers	0
Number of operating segments (in operating segments) \| operating_segment	1
Number of reportable segments (in reportable segments) \| reportable_segment	1
Revenue	$ 615,297	$ 533,639	$ 433,576
Property and equipment - net	36,652	25,638
Americas [Member]
Segment Reporting Information [Line Items]
Revenue	252,786	217,056	172,494
Property and equipment - net	33,751	23,227
United States
Segment Reporting Information [Line Items]
Revenue	162,327	145,369	120,456
Property and equipment - net	29,334	18,764
Canada [Member]
Segment Reporting Information [Line Items]
Property and equipment - net	4,372	4,376
Other Americas [Member]
Segment Reporting Information [Line Items]
Revenue	90,459	71,687	52,038
Property and equipment - net	45	87
EMEA [Member]
Segment Reporting Information [Line Items]
Revenue	208,979	184,175	152,385
Property and equipment - net	1,273	1,213
APAC [Member]
Segment Reporting Information [Line Items]
Revenue	153,532	132,408	$ 108,697
Property and equipment - net	$ 1,628	$ 1,198

Summary of Significant Accounting Policies , Other Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2013
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life of finite-lived intangible assets	1 year
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life of finite-lived intangible assets	6 years

Property and Equipment—Net

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT—Net

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



	December 31, 2013		December 31, 2012
Land	13,895		13,895
Building and building improvements	610		610
Evaluation units	23,442		18,322
Computer equipment and software	22,442		17,176
Furniture and fixtures	1,697		1,501
Construction-in-progress	10,947		—
Leasehold improvements and tooling	5,417		5,354
Total property and equipment	78,450		56,858
Less: accumulated depreciation	(41,798	)	(31,220	)
Property and equipment—net	36,652		25,638

Depreciation expense was $13.9 million, $10.5 million and $7.0 million in fiscal 2013, 2012 and 2011, respectively. In fiscal 2012, we purchased certain real property, including land and buildings in Sunnyvale, California, for cash of $14.5 million, to support the growth in our business operations. Of the total cost, we allocated $13.9 million to land and $0.6 million to building and building improvements. In fiscal 2013, construction-in-progress relates to enhancements to the land and building for our new corporate headquarters.

Investment in Privately-Held Company	12 Months Ended
Investment in Privately-Held Company	Dec. 31, 2013
Investments, All Other Investments [Abstract]
INVESTMENT IN PRIVATELY-HELD COMPANY	INVESTMENT IN PRIVATELY-HELD COMPANY In August 2013, we invested $2.0 million in equity securities in HyTrust, a privately-held company. This investment is accounted for as a cost-basis investment, as we own less than 20% of the voting securities and do not have the ability to exercise significant influence over operating and financial policies of the entity. This investment is carried at historical cost and is within Other assets on our consolidated balance sheet and measured at fair value on a nonrecurring basis when indicators of impairment exist. As of December 31, 2013, no events have occurred that would adversely affect the carrying value of this investment.

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Benefit Plan [Abstract]
Matching contribution on employee contributions, Percent	50.00%
Maximum contibution percentage of each employee's eligible earnings, Percent	4.00%
Matching contributions to the RRSP and 401(k) Plans	$ 2.1	$ 1.8	$ 1.5

Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. We have one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, we have determined that we have one operating segment, and therefore, one reportable segment.

Revenue by geographic region is based on the billing address of the customer. The following tables set forth revenue and property and equipment by geographic region ($ amounts in 000’s):



	Fiscal Year
Revenue	2013	2012	2011
Americas:
United States	162,327	145,369	120,456
Other Americas	90,459	71,687	52,038
Total Americas	252,786	217,056	172,494
Europe, Middle East, and Africa ("EMEA")	208,979	184,175	152,385
Asia Pacific and Japan ("APAC")	153,532	132,408	108,697
Total revenue	615,297	533,639	433,576


Property and Equipment	December 31, 2013	December 31, 2012
Americas:
United States	29,334	18,764
Canada	4,372	4,376
Other Americas	45	87
Total Americas	33,751	23,227
EMEA	1,273	1,213
APAC	1,628	1,198
Total property and equipment—net	36,652	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

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-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

+ Details

Summary of Significant Accounting Policies , Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2013
Building and building improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Evaluation units [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	1 year
Computer software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	1 year
Computer equipment and tooling [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years

Summary of Significant Accounting Policies , Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2013
Minimum [Member]
Revenue from External Customer [Line Items]
Revenue recognition period (in years)	1 year
Maximum [Member]
Revenue from External Customer [Line Items]
Revenue recognition period (in years)	3 years

Income Taxes , Provision for Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current:
Federal	$ 43,384	$ 43,765	$ 34,856
State	2,490	1,992	2,785
Foreign	4,175	2,266	1,402
Total current	50,049	48,023	39,043
Deferred:
Federal	(17,149)	(9,677)	(9,326)
State	(1,232)	(186)	(136)
Foreign	0	0	0
Total deferred	(18,381)	(9,863)	(9,462)
Total provision for income taxes	$ 31,668	$ 38,160	$ 29,581

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 44,273	$ 66,836	$ 62,492
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,623	11,564	6,989
Amortization of investment premiums	11,634	12,962	12,515
Stock-based compensation expense	43,909	30,690	19,015
Excess tax benefit from employee stock option plans	(2,974)	(12,069)	(19,829)
Other non-cash items, net	961	881	22
Changes in operating assets and liabilities:
Accounts receivable—net	(22,080)	(12,120)	(23,246)
Inventory	(35,093)	(11,303)	(6,034)
Deferred tax assets	(18,750)	(9,254)	(7,874)
Prepaid expenses and other current assets	(907)	791	(2,915)
Other assets	1,243	2,470	227
Accounts payable	10,485	961	6,801
Accrued liabilities	1,654	301	1,765
Accrued payroll and compensation	6,013	4,599	4,773
Deferred revenue	68,871	68,292	42,177
Income taxes payable	22,522	28,265	35,964
Net cash provided by operating activities	147,384	183,866	132,842
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments	(552,778)	(601,087)	(516,906)
Sales of investments	57,897	26,268	44,503
Maturities of investments	369,659	415,440	311,824
Purchases of property and equipment	(13,877)	(22,083)	(3,624)
Payments made in connection with acquisitions, net of cash acquired	(7,635)	(1,249)	(2,623)
Net cash used in investing activities	(146,734)	(182,711)	(166,826)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	25,584	38,087	19,968
Taxes paid related to net share settlement of equity awards	(1,452)	0	0
Excess tax benefit from stock-based compensation	2,974	12,069	19,829
Repurchase and retirement of common stock	(33,529)	0	0
Net cash (used in) provided by financing activities	(6,423)	50,156	39,797
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(1,329)	(326)	(682)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(7,102)	50,985	5,131
CASH AND CASH EQUIVALENTS—Beginning of year	122,975	71,990	66,859
CASH AND CASH EQUIVALENTS—End of year	115,873	122,975	71,990
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid (refunded) for income taxes, net	25,445	17,088	(305)
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of property and equipment not yet paid	4,253	398	440
Liability incurred in connection with business acquisition	100	201	0
Liability incurred for repurchase of common stock	$ 5,420	$ 0	$ 0

Goodwill and Other Intangible Assets - Net (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block]

The following tables present other intangible assets ($ amounts in 000’s):



	December 31, 2013
	Weighted-Average Useful Life (in Years)	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets-net:
Developed technology	4.6	8,971	2,568	6,403
Customer relationships	6.0	500	62	438
Total other intangible assets—net		9,471	2,630	6,841



	December 31, 2012
	Weighted-Average Useful Life (in Years)	Gross	Accumulated Amortization	Net
Finite-lived other intangible assets-net:
Developed technology	3.0	3,541	1,424	2,117
Total other intangible assets—net		3,541	1,424	2,117

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

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:
2014	1,782
2015	1,601
2016	1,287
2017	901
2018	900
Thereafter	370
Total	6,841

Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Deferred Revenue Arrangement [Line Items]
Short-term	$ 293,664	$ 247,268
Long-term	138,964	115,917
Total deferred revenue	432,628	363,185
Product [Member]
Deferred Revenue Arrangement [Line Items]
Total deferred revenue	2,915	5,411
Services [Member]
Deferred Revenue Arrangement [Line Items]
Total deferred revenue	425,266	348,548
Ratable and other revenue [Member]
Deferred Revenue Arrangement [Line Items]
Total deferred revenue	$ 4,447	$ 9,226

Goodwill and Other Intangible Assets - Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Mar. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 2,872	$ 0		$ 2,900
Finite-Lived Intangible Assets, Net [Abstract]
Gross	9,471	3,541
Accumulated Amortization	2,630	1,424
Total	6,841	2,117
Amortization expense	1,700	1,000	$ 400
Fiscal Years:
2014	1,782
2015	1,601
2016	1,287
2017	901
2018	900
Thereafter	370
Total	$ 6,841	$ 2,117
Developed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizable life of purchased indentifiable intangible assets	4 years 7 months 17 days	2 years 11 months 23 days
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 8,971	$ 3,541
Accumulated Amortization	2,568	1,424
Total	6,403	2,117
Fiscal Years:
Total	$ 6,403	$ 2,117
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizable life of purchased indentifiable intangible assets	6 years
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 500
Accumulated Amortization	62
Total	438
Fiscal Years:
Total	$ 438

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2013
Employee Benefit Plan [Abstract]
EMPLOYEE BENEFIT PLAN	EMPLOYEE BENEFIT PLAN Tax-deferred savings plan under our 401(k) Plan, participating employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit. 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 board of directors approved 50% matching contributions on employee contributions up to 4% of each employee’s eligible earnings. Our matching contributions to the 401(k) Plans and RRSP for fiscal 2013, 2012, and 2011 were $2.1 million, $1.8 million, and $1.5 million, respectively.

Business Combinations (2012 Acquisitions) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($) business
Business Acquisition [Line Items]
Number of businesses acquired \| business		2
Fiscal 2012 Acquisitions [Member] \| Developed Technology [Member]
Business Acquisition [Line Items]
Cash paid to acquire business		$ 1.5
Cost of Sales [Member] \| Fiscal 2012 Acquisitions [Member]
Business Acquisition [Line Items]
Asset impairment charges	$ 0.5

Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2013

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table summarizes the changes in accumulated balances of other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000's):



	December 31, 2013
	Foreign Currency Translation Gains and Losses		Unrealized Gains and Losses on Investments		Tax benefit or provision related to items of other comprehensive income or loss		Total
Beginning balance	1,950		1,755		(614	)	3,091
Other comprehensive income before reclassifications	(1,617	)	(573	)	200		(1,990	)
Amounts reclassified from accumulated other comprehensive income	—		(14	)	5		(9	)
Net current-period other comprehensive income	(1,617	)	(587	)	205		(1,999	)
Ending balance	333		1,168		(409	)	1,092



	December 31, 2012
	Foreign Currency Translation Gains and Losses	Unrealized Gains and Losses on Investments		Tax benefit or provision related to items of other comprehensive income or loss		Total
Beginning balance	1,426	(1,576	)	552		402
Other comprehensive income before reclassifications	524	3,380		(1,183	)	2,721
Amounts reclassified from accumulated other comprehensive income	—	(49	)	17		(32	)
Net current-period other comprehensive income	524	3,331		(1,166	)	2,689
Ending balance	1,950	1,755		(614	)	3,091

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The following table provides details about the reclassification out of accumulated other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000s):



December 31, 2013
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains on investments	(14	)	Other expense, net
Tax provision related to items of other comprehensive income or loss	5		Provision for income taxes
Total reclassification for the period	(9	)



December 31, 2012
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains on investments	(49	)	Other expense, net
Tax provision related to items of other comprehensive income or loss	17		Provision for income taxes
Total reclassification for the period	(32	)

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2013 USD ($) patent	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating lease commitments	$ 31,905
Rent expense	9,800	$ 8,700	$ 8,200
Sublease rental income	700	$ 800	$ 700
Open purchase orders and other contractual obligations	37,794
Other contract commitments	$ 9,946
Number of patents involved in litigation \| patent	2

Stockholders' Equity , Performance Stock Units (Details) - Performance Shares [Member] $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($) $ / shares shares
Performance Share, Weighted Average Assumptions [Abstract]
Expected term in years	2 years 11 months 19 days
Volatility (%)	50.11%
Risk-free interest rate (%)	0.67%
Dividend rate (%)	0.00%
Granted	180,000
Granted, weighted-average grant-date fair value per share (in dollars per share) \| $ / shares	$ 22.06
Forfeited	50,000
Compensation cost not yet recognized \| $	$ 2.4
Compensation cost not yet recognized period of recognition	2 years 7 months 2 days
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance share target range, percent	0.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance share target range, percent	150.00%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Income before income taxes consisted of the following ($ amounts in 000’s):



	Fiscal Year
	2013		2012	2011
Domestic	83,076		95,730	85,411
Foreign	(7,135	)	9,266	6,662
Total income before income taxes	75,941		104,996	92,073

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income taxes consisted of the following ($ amounts in 000’s):



	Fiscal Year
	2013		2012		2011
Current:
Federal	43,384		43,765		34,856
State	2,490		1,992		2,785
Foreign	4,175		2,266		1,402
Total current	50,049		48,023		39,043
Deferred:
Federal	(17,149	)	(9,677	)	(9,326	)
State	(1,232	)	(186	)	(136	)
Foreign	—		—		—
Total deferred	(18,381	)	(9,863	)	(9,462	)
Provision for income taxes	31,668		38,160		29,581

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows ($ amounts in 000’s):



	Fiscal Year
	2013		2012		2011
Tax at federal statutory tax rate	26,579		36,749		32,225
Stock-based compensation expense	4,571		1,570		2,222
State taxes—net of federal benefit	419		1,186		(2,457	)
Domestic production activities deduction	(3,256	)	(1,813	)	(547	)
Research and development credit	(1,650	)	(144	)	(887	)
Foreign income taxed at different rates	6,672		(1,845	)	(929	)
Other	(1,667	)	2,457		(46	)
Total provision for income taxes	31,668		38,160		29,581

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets as of the years ended are presented below ($ amount in 000’s):



	December 31, 2013		December 31, 2012
Deferred tax assets:
Net operating loss carryforward	2,183		587
Deferred revenue	47,341		36,438
Nondeductible reserves and accruals	16,055		13,437
Depreciation and amortization	(465	)	920
General business credit carryforward	439		1,381
Stock-based compensation expense	15,468		9,413
Other	17		12
Total deferred tax assets	81,038		62,188

Summary of Income Tax Contingencies [Table Text Block]

The aggregate changes in the balance of unrecognized tax benefits are as follows ($ amounts in 000’s):



	Fiscal Year
	2013		2012		2011
Unrecognized tax benefits, beginning of year	27,808		19,269		12,083
Gross increases for tax positions related to the current year	4,713		7,550		9,049
Gross increases for tax positions related to the prior year	405		1,479		—
Gross decreases for tax positions related to the prior year	(3,322	)	(490	)	(1,863	)
Unrecognized tax benefits, end of year	29,604		27,808		19,269

Stockholders' Equity , Share Repurchase Program (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 06, 2013	Dec. 31, 2013	Dec. 31, 2009
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock repurchase program, authorized amount	$ 200,000
Stock repurchased in the period, shares		2,100,000	1,409,264
Stock repurchased in the period, value		$ 38,949
Remaining authorized repurchase amount under the program		$ 161,100

Income Taxes , Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Unrecognized tax benefits that would favoraby affect effective tax rate	$ 29,200
Accrued interest and penalties related to uncertain tax benefits	1,000	$ 1,500	$ 600
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning of year	27,808	19,269	12,083
Gross increases for tax positions related to the current year	4,713	7,550	9,049
Gross increases for tax positions related to the prior year	405	1,479	0
Gross decreases for tax positions related to the prior year	(3,322)	(490)	(1,863)
Unrecognized tax benefits, end of year	29,604	27,808	19,269
Liability for uncertain tax positions	$ 30,200	$ 28,800	$ 19,100

Financial Instruments and Fair Value , Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
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	$ 734,896	$ 659,231
Contingent consideration	1,850
Financial Liabilities Fair Value Disclosure	1,850
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	5,724	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	729,172	619,360
Estimate of Fair Value [Member] \| Recurring [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	1,850
Estimate of Fair Value [Member] \| U.S. government and agency securities [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	2,001
Estimate of Fair Value [Member] \| U.S. government and agency 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
Estimate of Fair Value [Member] \| U.S. government and agency 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	2,001
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	604,317	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
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	604,317	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	71,363	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
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	71,363	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	38,843	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
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	38,843	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	12,648	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
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	12,648	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	5,724	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	5,724	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
Reported as [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	734,896	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	7,724	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	375,497	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	351,675	$ 325,892
Income Approach Valuation Technique [Member] \| Estimate of Fair Value [Member] \| Recurring [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	1,850
Contingent Liability [Member] \| Minimum [Member] \| Income Approach Valuation Technique [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Revenue	$ 7,000
Fair Value Inputs, Probability of Occurrence	40.00%
Contingent Liability [Member] \| Maximum [Member] \| Income Approach Valuation Technique [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Revenue	$ 12,000
Fair Value Inputs, Probability of Occurrence	80.00%

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

The following table summarizes our future principal contractual obligations as of December 31, 2013 ($ amounts in 000's):



	Total	2014	2015	2016	2017	2018	Thereafter
Operating lease commitments	31,905	8,759	6,006	4,938	4,347	3,383	4,472
Less: Sublease rental income	1,140	720	420	—	—	—	—
Operating lease commitments, net	30,765	8,039	5,586	4,938	4,347	3,383	4,472
Purchase commitments	37,794	37,794	—	—	—	—	—
Other contract commitments	9,946	9,632	173	50	41	50	—
Total	78,505	55,465	5,759	4,988	4,388	3,433	4,472

Summary of Significant Accounting Policies , Impairment of Long-Lived Assets (Details) $ in Millions	12 Months Ended
	Dec. 31, 2013 USD ($)
Accounting Policies [Abstract]
Impairment of long-lived assets	$ 0.5