Document And Entity Information
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Document And Entity Information (USD $)
 12 Months Ended
Sep. 30, 2012
Nov. 15, 2012
Mar. 30, 2012
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2012    
Document Fiscal Year Focus 2012    
Document Fiscal Period Focus FY    
Entity Registrant Name F5 NETWORKS INC    
Entity Central Index Key 0001048695    
Current Fiscal Year End Date --09-30    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
Entity Public Float     $ 10,633,270,453
Entity Common Stock, Shares Outstanding   79,050,364  

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
ASSETS    
Cash and cash equivalents $ 211,181 $ 216,784
Short-term investments 320,970 325,766
Accounts receivable, net of allowances of $3,254 and $2,898 185,172 165,676
Inventories 17,410 17,149
Deferred tax assets 10,362 8,391
Other current assets 30,986 29,907
Total current assets 776,081 763,673
Property and equipment, net 59,604 47,998
Long-term investments 662,803 470,203
Deferred tax assets 35,478 34,762
Goodwill 348,239 234,691
Other assets, net 28,996 17,222
Total assets 1,911,201 1,568,549
LIABILITIES AND SHAREHOLDERS' EQUITY    
Accounts payable 27,026 33,525
Accrued liabilities 86,409 67,902
Deferred revenue 352,594 270,880
Total current liabilities 466,029 372,307
Other long-term liabilities 21,078 18,388
Deferred revenue, long-term 94,694 72,418
Total long-term liabilities 115,772 90,806
Commitments and contingencies (Note 8)      
Shareholders' equity    
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding      
Common stock, no par value; 200,000 shares authorized, 78,715 and 79,145 shares issued and outstanding 326,922 380,737
Accumulated other comprehensive loss (3,829) (6,422)
Retained earnings 1,006,307 731,121
Total shareholders' equity 1,329,400 1,105,436
Total liabilities and shareholders' equity $ 1,911,201 $ 1,568,549

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Consolidated Balance Sheets [Abstract]    
Accounts receivable, allowances $ 3,254 $ 2,898
Preferred stock, shares authorized 10,000 10,000
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 200,000 200,000
Common stock, shares issued 78,715 79,145
Common stock, shares outstanding 78,715 79,145

Consolidated Income Statements
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Consolidated Income Statements (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Net revenues                      
Products $ 209,718 $ 207,118 $ 205,165 $ 196,554 $ 197,446 $ 179,327 $ 173,710 $ 171,492 $ 818,555 $ 721,975 $ 561,142
Services 152,841 145,516 134,457 125,878 117,169 111,386 103,862 97,442 558,692 429,859 320,830
Total 362,559 352,634 339,622 322,432 314,615 290,713 277,572 268,934 1,377,247 1,151,834 881,972
Cost of net revenues                      
Products 35,752 34,482 33,668 33,200 34,485 31,803 31,423 31,614 137,102 129,325 113,834
Services 26,929 25,805 23,926 22,406 21,435 20,645 19,250 17,349 99,066 78,679 58,118
Total 62,681 60,287 57,594 55,606 55,920 52,448 50,673 48,963 236,168 208,004 171,952
Gross profit 299,878 292,347 282,028 266,826 258,695 238,265 226,899 219,971 1,141,079 943,830 710,020
Operating expenses                      
Sales and marketing 116,298 112,064 110,995 106,238 100,945 93,633 89,332 86,825 445,595 370,735 293,201
Research and development 47,731 46,985 43,568 39,122 36,552 35,245 34,507 32,606 177,406 138,910 118,314
General and administrative 24,015 23,298 22,785 21,677 21,867 21,126 19,846 20,684 91,775 83,523 68,503
Total 188,044 182,347 177,348 167,037 159,364 150,004 143,685 140,115 714,776 593,168 480,018
Income from operations 111,834 110,000 104,680 99,789 99,331 88,261 83,214 79,856 426,303 350,662 230,002
Other income, net 909 1,713 1,428 1,861 4,087 1,889 1,568 2,545 5,911 10,089 7,625
Income before income taxes 112,743 111,713 106,108 101,650 103,418 90,150 84,782 82,401 432,214 360,751 237,627
Provision for income taxes 45,026 39,377 37,467 35,158 35,808 27,601 29,207 26,738 157,028 119,354 86,474
Net income $ 67,717 $ 72,336 $ 68,641 $ 66,492 $ 67,610 $ 62,549 $ 55,575 $ 55,663 $ 275,186 $ 241,397 $ 151,153
Net income per share - basic $ 0.86 $ 0.91 $ 0.87 $ 0.84 $ 0.84 $ 0.77 $ 0.69 $ 0.69 $ 3.48 $ 2.99 $ 1.90
Weighted average shares - basic 78,980 79,135 79,156 79,272 80,317 80,866 80,809 80,644 79,135 80,658 79,609
Net income per share - diluted $ 0.85 $ 0.91 $ 0.86 $ 0.83 $ 0.84 $ 0.77 $ 0.68 $ 0.68 $ 3.45 $ 2.96 $ 1.86
Weighted average shares - diluted 79,425 79,655 79,775 79,822 80,766 81,497 81,622 81,648 79,780 81,482 81,049

Consolidated Statement Of Shareholders' Equity And Comprehensive Income
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Consolidated Statement Of Shareholders' Equity And Comprehensive Income (USD $)
In Thousands, except Share data
Common Stock [Member]
Accumulated Other Comprehensive Income/(Loss) [Member]
Retained Earnings [Member]
Total
Balance at Sep. 30, 2009 $ 462,786 $ (2,337) $ 338,571 $ 799,020
Balance, shares at Sep. 30, 2009 78,325,000      
Exercise of employee stock options 17,618     17,618
Exercise of employee stock options, shares 911,000      
Issuance of stock under employee stock purchase plan 13,936     13,936
Issuance of stock under employee stock purchase plan, shares 458,000      
Issuance of restricted stock, shares 1,849,000      
Repurchase of common stock (75,000)     (75,000)
Repurchase of common stock, shares (1,188,000)      
Tax benefit from employee stock transactions 27,102     27,102
Stock-based compensation 70,773     70,773
Net income     151,153 151,153
Foreign currency translation adjustment   (771)    
Unrealized gain (loss) on securities, net of tax   (133)    
Comprehensive income       150,249
Balance at Sep. 30, 2010 517,215 (3,241) 489,724 1,003,698
Balance, shares at Sep. 30, 2010 80,355,000      
Exercise of employee stock options 2,293     2,293
Exercise of employee stock options, shares 150,000      
Issuance of stock under employee stock purchase plan 18,932     18,932
Issuance of stock under employee stock purchase plan, shares 257,000      
Issuance of restricted stock, shares 1,370,000      
Repurchase of common stock (271,526)     (271,526)
Repurchase of common stock, shares (2,987,000)      
Tax benefit from employee stock transactions 24,076     24,076
Stock-based compensation 89,747     89,747
Net income     241,397 241,397
Foreign currency translation adjustment   (2,366)    
Unrealized gain (loss) on securities, net of tax   (815)    
Comprehensive income       238,216
Balance at Sep. 30, 2011 380,737 (6,422) 731,121 1,105,436
Balance, shares at Sep. 30, 2011 79,145,000     79,145,000
Exercise of employee stock options 1,130     1,130
Exercise of employee stock options, shares 120,000     119,834
Issuance of stock under employee stock purchase plan 24,043     24,043
Issuance of stock under employee stock purchase plan, shares 281,000      
Issuance of restricted stock, shares 832,000      
Repurchase of common stock (184,776)     (184,776)
Repurchase of common stock, shares (1,663,000)      
Tax benefit from employee stock transactions 10,440     10,440
Stock-based compensation 95,348     95,348
Net income     275,186 275,186
Foreign currency translation adjustment   295    
Unrealized gain (loss) on securities, net of tax   2,298    
Comprehensive income       277,779
Balance at Sep. 30, 2012 $ 326,922 $ (3,829) $ 1,006,307 $ 1,329,400
Balance, shares at Sep. 30, 2012 78,715,000     78,715,000

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Operating activities      
Net income $ 275,186 $ 241,397 $ 151,153
Adjustments to reconcile net income to net cash provided by operating activities:      
Realized loss (gain) on disposition of assets and investments 546 (163) (125)
Stock-based compensation 95,348 89,747 70,773
Provisions for doubtful accounts and sales returns 1,572 982 1,206
Depreciation and amortization 35,139 20,887 23,833
Deferred income taxes (4,293) 4,487 8,243
Gain auction rate securities put option     (1,491)
Loss on trading auction rate securities     1,491
Changes in operating assets and liabilities, net of amounts acquired:      
Accounts receivable (20,207) (54,526) (6,365)
Inventories (262) 1,666 (4,996)
Other current assets (998) 8,000 (17,064)
Other assets (134) 81 (1,466)
Accounts payable and accrued liabilities 9,953 20,476 12,157
Deferred revenue 103,587 83,904 76,263
Net cash provided by operating activities 495,437 416,938 313,612
Investing activities      
Purchases of investments (1,059,853) (979,597) (877,003)
Maturities of investments 784,601 795,142 603,825
Sales of investments 81,444 80,877 45,050
(Increase) decrease in restricted cash 19 (19) (2,530)
Acquisition of intangible assets (250) (5,715)  
Acquisition of businesses, net of cash acquired (128,335)    
Purchases of property and equipment (29,867) (30,445) (12,625)
Net cash used in investing activities (352,279) (139,719) (238,223)
Financing activities      
Excess tax benefit from stock-based compensation 10,371 23,623 26,532
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan 25,174 21,239 31,670
Repurchase of common stock (184,776) (271,526) (75,000)
Net cash used in financing activities (149,231) (226,664) (16,798)
Net (decrease) increase in cash and cash equivalents (6,073) 50,555 58,591
Effect of exchange rate changes on cash and cash equivalents 470 (2,525) (674)
Cash and cash equivalents, beginning of year 216,784 168,754 110,837
Cash and cash equivalents, end of year 211,181 216,784 168,754
Cash paid for taxes $ 145,874 $ 84,753 $ 67,120

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

1.  Summary of Significant Accounting Policies

The Company

F5 Networks, Inc. (the “Company”) provides products and services to help companies manage their Internet Protocol (IP) traffic and file storage infrastructure efficiently and securely. The Company’s application delivery networking products improve the performance, availability and security of applications on Internet-based networks. Internet traffic between network-based applications and clients passes through these devices where the content is inspected to ensure that it is safe and modified as necessary to ensure that it is delivered securely and in a way that optimizes the performance of both the network and the applications. The Company’s storage virtualization products simplify and reduce the cost of managing files and file storage devices, and ensure fast, secure, easy access to files for users and applications. With the purchase of Traffix Communication Systems Ltd. (Traffix Systems) in February 2012, the Company acquired a line of Diameter signaling products that enable full connectivity, enhanced scalability, and comprehensive control for telecommunications operators. These products enable operators to control their signaling networks effectively in the migration to next-generation networks and in future expansion of their subscriber bases and service portfolios. The Company also offers a broad range of services that include consulting, training, maintenance and other technical support services.

Accounting Principles

The Company’s consolidated financial statements and accompanying notes are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (GAAP).

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Certain prior year amounts, specifically relating to cash flows in connection with the disposition of investments, have been reclassified from maturities of investments to sales of investments to conform to the current year presentation in the Consolidated Statement of Cash Flows. There was no change to the net cash used in investing activities as a result of this reclassification.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates are used in accounting for revenue recognition, reserves for doubtful accounts, product returns, obsolete and excess inventory and valuation allowances on deferred tax assets. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company invests its cash and cash equivalents in deposits with four major financial institutions, which, at times, exceed federally insured limits. The Company has not experienced any losses on its cash and cash equivalents.

Investments

The Company classifies its investment securities as available-for-sale. Investment securities, consisting of certificates of deposit, corporate and municipal bonds and notes and United States government and agency securities, are reported at fair value with the related unrealized gains and losses included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses and declines in value of securities judged to be other than temporary are included in other income (expense). The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Investments in securities with maturities of less than one year or where management’s intent is to use the investments to fund current operations are classified as short-term investments. Investments with maturities of greater than one year are classified as long-term investments.

 

Concentration of Credit Risk

The Company extends credit to customers and is therefore subject to credit risk. The Company performs initial and ongoing credit evaluations of its customers’ financial condition and does not require collateral. An allowance for doubtful accounts is recorded to account for potential bad debts. Estimates are used in determining the allowance for doubtful accounts and are based upon an assessment of selected accounts and as a percentage of remaining accounts receivable by aging category. In determining these percentages, the Company evaluates historical write-offs, and current trends in customer credit quality, as well as changes in credit policies. At September 30, 2012, Avnet Technology Solutions and Ingram Micro, Inc. accounted for 13.4% and 12.0% of the Company’s accounts receivable, respectively. At September 30, 2011, Avnet Technology Solutions and Ingram Micro, Inc. accounted for 15.0% and 14.5% of the Company’s accounts receivable, respectively .  

The Company maintains its cash and investment balances with high credit quality financial institutions.

Fair Value of Financial Instruments

Short-term and long-term investments are recorded at fair value as the underlying securities are classified as available-for-sale with any unrealized gain or loss being recorded to other comprehensive income. The fair value for securities held is determined using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency.  

Inventories

The Company outsources the manufacturing of its pre-configured hardware platforms to contract manufacturers, who assemble each product to the Company’s specifications. As protection against component shortages and to provide replacement parts for its service teams, the Company also stocks limited supplies of certain key product components. The Company reduces inventory to net realizable value based on excess and obsolete inventories determined primarily by historical usage and forecasted demand. Inventories consist of hardware and related component parts and are recorded at the lower of cost or market (as determined by the first-in, first-out method).

Inventories consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Finished goods

 

$
13,565 

 

$
12,917 

Raw materials

 

 
3,845 

 

 
4,232 

 

 

$
17,410 

 

$
17,149 

 

Property and Equipment

Property and equipment is stated at cost. Depreciation of property and equipment are provided using the straight-line method over the estimated useful lives of the assets, ranging from two to five years. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the improvements. The cost of normal maintenance and repairs is charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal.

Property and equipment consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Computer equipment

 

$
95,987 

 

$
77,899 

Office furniture and equipment

 

 
12,335 

 

 
11,243 

Leasehold improvements

 

 
43,957 

 

 
41,344 

 

 

 
152,279 

 

 
130,486 

Accumulated depreciation and amortization

 

 
(92,675)

 

 
(82,488)

 

 

$
59,604 

 

$
47,998 

 

Depreciation and amortization expense totaled approximately $19.0 million, $16.6 million, and $17.8 million for the fiscal years ended September 30, 2012, 2011 and 2010, respectively.

Goodwill

Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. Goodwill was recorded in connection with the acquisition of Traffix Systems in fiscal year 2012, Acopia Networks, Inc. in fiscal year 2007, Swan Labs, Inc. in fiscal year 2006, MagniFire Websystems, Inc. in fiscal year 2004 and uRoam, Inc. in fiscal year 2003. The Company performs its annual goodwill impairment test during the second fiscal quarter. 

In September 2011, the FASB approved changes to the goodwill impairment guidance which are intended to reduce the cost and complexity of the annual impairment test. The changes provide entities the option to perform a qualitative assessment to determine whether further impairment testing is necessary. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. 

The revised guidance includes examples of events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount. These include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers.  

The changes are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. However, earlier adoption is permitted. The Company opted to early adopt this guidance for its annual goodwill impairment test performed in the second quarter of fiscal 2012.  

If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the provisions of authoritative guidance require that the Company perform a two-step impairment test on goodwill. The first step of the test identifies whether potential impairment may have occurred, while the second step of the test measures the amount of the impairment, if any. Impairment is recognized when the carrying amount of goodwill exceeds its fair value. For its annual goodwill impairment analysis, the Company operates under one reporting unit and determines the fair value of its reporting unit based on the Company’s enterprise value. In March 2012, the Company completed a qualitative assessment of potential impairment indicators and concluded that it was more-likely-than-not that the fair value of its reporting unit exceeded its carrying amount. The Company also considered potential impairment indicators at September 30, 2012 and noted no indicators of impairment. 

 

Other Assets

Other assets primarily consist of software development costs, acquired and developed technology and customer relationships.

Software development costs are charged to research and development expense in the period incurred until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the lower of unamortized cost or net realizable value of each product. Capitalized software development costs are amortized over the remaining estimated economic life of the product. The establishment of technological feasibility and the ongoing assessment of recoverability of costs require considerable judgment by the Company with respect to certain internal and external factors, including, but not limited to, anticipated future gross product revenues, estimated economic life and changes in hardware and software technology. The Company did not capitalize any software development costs in fiscal years 2012, 2011 and 2010. Amortization expense related to capitalized software development was immaterial for fiscal years 2012, 2011, and 2010.

Acquired and developed technology and customer relationship assets are recorded at cost and amortized over their estimated useful lives of five years. The estimated useful life of these assets is assessed and evaluated for reasonableness periodically. Acquired technology of $14.9 million in fiscal 2012, $15.0 million in fiscal 2007 and $8.0 million in fiscal 2006 was recorded in connection with the acquisitions of Traffix Systems, Acopia and Swan Labs, respectively. Amortization expense related to acquired technology, which is charged to cost of product revenues, totaled $5.3 million, $3.1 million and $4.6 million during the fiscal years 2012, 2011 and 2010, respectively.

Amortization expense of all other intangible assets, including customer relationships, patents and trademarks was not material during the fiscal years 2012, 2011 and 2010. 

Impairment of Long-Lived Assets

The Company assesses the impairment of long-lived assets whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be recoverable. When such events occur, management determines whether there has been impairment by comparing the anticipated undiscounted net future cash flows to the related asset’s carrying value. If impairment exists, the asset is written down to its estimated fair value. No impairment of long-lived assets was noted as of and for the year ended September 30, 2012.

Revenue Recognition

The Company sells products through distributors, resellers, and directly to end users. Revenue is recognized provided that all of the following criteria have been met:

•    Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a purchase order issued pursuant to the terms and conditions of a distributor, reseller or end user agreement.

•    Delivery has occurred. The Company uses shipping or related documents, or written evidence of customer acceptance, when applicable, to verify delivery or completion of any performance terms.

•    The sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.

•    Collectability is reasonably assured. The Company assesses collectability primarily based on the creditworthiness of the customer as determined by credit checks and related analysis, as well as the Customer’s payment history.

In certain regions where the Company does not have the ability to reasonably estimate returns, the Company defers revenue on sales to its distributors until they have received information from the channel partner indicating that the product has been sold to the end-user customer. Payment terms to domestic customers are generally net 30 days to net 45 days. Payment terms to international customers range from net 30 days to net 120 days based on normal and customary trade practices in the individual markets. The Company offers extended payment terms to certain customers, in which case, revenue is recognized when payments are due.

Whenever product, training services and post-contract customer support (PCS) elements are sold together, a portion of the sales price is allocated to each element based on their respective fair values as determined when the individual elements are sold separately. Revenue from the sale of products is recognized when the product has been shipped and the customer is obligated to pay for the product. When rights of return are present and the Company cannot estimate returns, it recognizes revenue when such rights of return lapse. Revenues for PCS are recognized on a straight-line basis over the service contract term. PCS includes a limited period of telephone support updates, repair or replacement of any failed product or component that fails during the term of the agreement, bug fixes and rights to upgrades, when and if available. Consulting services are customarily billed at fixed hourly rates, plus out-of-pocket expenses, and revenues are recognized when the consulting has been completed. Training revenue is recognized when the training has been completed.

In October 2009, the Financial Accounting Standards Board (FASB) amended the accounting standards for revenue recognition to remove from the scope of industry-specific software revenue recognition guidance any tangible products containing software components and non-software components that operate together to deliver the products essential functionality. In addition, the FASB amended the accounting standards for certain multiple element revenue arrangements to:

•    Provide updated guidance on whether multiple elements exist, how the elements in an arrangement should be separated, and how the arrangement consideration should be allocated to the separate elements;

•    Require an entity to allocate arrangement consideration to each element based on a selling price hierarchy, where the selling price for an element is based on vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if available and VSOE is not available; or the best estimate of selling price (BESP), if neither VSOE or TPE is available; and

•    Eliminate the use of the residual method and require an entity to allocate arrangement consideration using the selling price hierarchy.

 

The majority of the Company’s products are hardware appliances which contain software essential to the overall functionality of the products. Accordingly, the Company no longer recognizes revenue on sales of these products in accordance with the industry-specific software revenue recognition guidance.

For all transactions entered into prior to the first quarter of fiscal year 2011 and for sales of nonessential and stand-alone software after October 1, 2010, the Company allocates revenue for arrangements with multiple elements based on the software revenue recognition guidance. Software revenue recognition guidance requires revenue earned on software arrangements involving multiple elements to be allocated to each element based on the relative fair values of those elements. The fair value of an element must be based on VSOE. Where fair value of certain elements is not available, revenue is recognized on the “residual method” based on the fair value of undelivered elements. If evidence of the fair value of one or more undelivered elements does not exist, all revenue is deferred and recognized at the earlier of the delivery of those elements or the establishment of fair value of the remaining undelivered elements.

For transactions entered into subsequent to the adoption of the amended revenue recognition standards that are multiple-element arrangements, the arrangement consideration is allocated to each element based on the relative selling prices of all of the elements in the arrangement using the fair value hierarchy in the amended revenue recognition guidance.

Consistent with the methodology used under the previous accounting guidance, the Company establishes VSOE for its products, training services, PCS and consulting services based on the sales price charged for each element when sold separately. The sales price is discounted from the applicable list price based on various factors including the type of customer, volume of sales, geographic region and program level. The Company’s list prices are generally not fair value as discounts may be given based on the factors enumerated above. The Company believes that the fair value of its consulting services is represented by the billable consulting rate per hour, based on the rates they charge customers when they purchase standalone consulting services. The price of consulting services is not based on the type of customer, volume of sales, geographic region or program level.

The Company uses historical sales transactions to determine whether VSOE can be established for each of the elements. In most instances, VSOE is the sales price of actual standalone (unbundled) transactions within the past 12 month period that are priced within a reasonable range, which the Company has determined to be plus or minus 15% of the median sales price of each respective price list.

VSOE of PCS is based on standalone sales since the Company does not provide stated renewal rates to its customers. In accordance with the Company’s PCS pricing practice (supported by standalone renewal sales), renewal contracts are priced as a percentage of the undiscounted product list price. The PCS renewal percentages may vary, depending on the type and length of PCS purchased. The Company offers standard and premium PCS, and the term generally ranges from one to three years. The Company employs a bell-shaped-curve approach in evaluating VSOE of fair value of PCS. Under this approach, the Company considers VSOE of the fair value of PCS to exist when a substantial majority of its standalone PCS sales fall within a narrow range of pricing.

The Company is typically not able to determine TPE for its products or services. TPE is based on competitor prices for similar elements when sold separately. Generally, the Company’s go-to-market strategy differs from that of other competitive products or services in its markets and the Company’s offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine the selling prices on a stand-alone basis of similar products offered by its competitors.

When the Company is unable to establish the selling price of its non-software elements using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company is generally not able to establish VSOE for non-software product sales. Under software revenue recognition guidance, these product sales were accounted for utilizing the residual method. With the adoption of the new revenue recognition guidance, the Company has been able to establish BESP for non-software product sales through the list price, less a discount deemed appropriate to maintain a reasonable gross margin. Management regularly reviews the gross margin information. Non-software product BESP is determined through our review of historical sales transactions within the past 12 month period. Additional factors considered in determining an appropriate BESP include, but are not limited to, cost of products, pricing practices, geographies, customer classes, and distribution channels.

The Company has established and regularly validates the VSOE of fair value and BESP for elements in its multiple element arrangements. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excluded from revenues.

Shipping and Handling

Shipping and handling fees charged to the Company’s customers are recognized as product revenue in the period shipped and the related costs for providing these services are recorded as a cost of sale.

Guarantees and Product Warranties

In the normal course of business to facilitate sales of its products, the Company indemnifies other parties, including customers, resellers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold the other party harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. The Company has entered into indemnification agreements with its officers and directors, and the Company’s bylaws contain similar indemnification obligations to the Company’s agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement.

The Company offers warranties of one year for hardware for those customers without service contracts, with the option of purchasing additional warranty coverage in yearly increments. The Company accrues for warranty costs as part of its cost of sales based on associated material product costs and technical support labor costs. Accrued warranty costs as of September 30, 2012, 2011 and 2010 were not considered material. 

Research and Development

Research and development expenses consist of salaries and related benefits of product development personnel, prototype materials and expenses related to the development of new and improved products, and an allocation of facilities and depreciation expense. Research and development expenses are reflected in the statements of income as incurred.

Advertising

Advertising costs are expensed as incurred. The Company incurred $1.8 million, $2.2 million and $2.1 million in advertising costs during the fiscal years 2012, 2011 and 2010, respectively.

Income Taxes

Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and estimates of future taxable income. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized.

The Company assesses whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefits to be recognized in the financial statements from such a position is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The new guidance also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

Foreign Currency

The functional currency for the Company’s foreign subsidiaries is the local currency in which the respective entity is located, with the exception of F5 Networks, Ltd. in the United Kingdom and F5 Networks (Israel), Ltd. and Traffix Communication Systems, Ltd. in Israel, that use the U.S. dollar as their functional currency. An entity’s functional currency is determined by the currency of the economic environment in which the majority of cash is generated and expended by the entity. The financial statements of all majority-owned subsidiaries and related entities, with a functional currency other than the U.S. dollar, have been translated into U.S. dollars. All assets and liabilities of the respective entities are translated at year-end exchange rates and all revenues and expenses are translated at average rates during the respective period. Translation adjustments are reported as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity.

Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency, including U.S. dollars. Gains and losses on those foreign currency transactions are included in determining net income or loss for the period of exchange. The net effect of foreign currency gains and losses was not significant during the fiscal years ended September 30, 2012, 2011 and 2010. 

Segments

Management has determined that the Company was organized as, and operated in, one reportable operating segment for fiscal year 2012 and prior years: the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems.

Stock-Based Compensation

The Company accounts for stock-based compensation using the straight-line attribution method for recognizing compensation expense. The Company recognized $95.3 million, $89.7 million and $70.8 million of stock-based compensation expense for the fiscal years ended September 30, 2012, 2011 and 2010, respectively. As of September 30, 2012, there was $134.9 million of total unrecognized stock-based compensation cost, the majority of which will be recognized over the next two years. Going forward, stock-based compensation expenses may increase as the Company issues additional equity-based awards to continue to attract and retain key employees.

The Company issues incentive awards to its employees through stock-based compensation consisting of restricted stock units (RSUs). Pursuant to the Company’s annual equity awards program, the Company’s Compensation Committee approved 789,225 RSUs to non-executive employees on July 30, 2012 and 290,415 RSUs to executive officers on October 30, 2012. The value of RSUs is determined using the fair value method, which in this case, is based on the number of shares granted and the quoted price of the Company’s common stock on the date of grant. All stock options granted in fiscal year 2012 were assumed as part of the acquisition of Traffix Systems in the second fiscal quarter. No stock options were granted in fiscal years 2011 and 2010. In determining the fair value of shares issued under the Employee Stock Purchase Plan (ESPP), the Company uses the Black-Scholes option pricing model that employs the following key assumptions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee Stock Purchase Plan

 

 

 

Years Ended September 30,

 

 

 

2012

 

2011

 

2010

Risk-free interest rate

 

 
0.14 

%

 
0.10 

%

 
0.25 

%

Expected dividend

 

 

—

 

 

—

 

 

—

 

Expected term

 

 

0.5 years

 

 

0.5 years

 

 

0.5 years

 

Expected volatility

 

 
45.20 

%

 
53.87 

%

 
41.04 

%

The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company does not anticipate declaring dividends in the foreseeable future. Expected volatility is based on the annualized daily historical volatility of the Company’s stock price commensurate with the expected life of the ESPP option. Expected term of the ESPP option is based on an offering period of six months. The assumptions above are based on management’s best estimates at that time, which impact the fair value of the ESPP option calculated under the Black-Scholes methodology and, ultimately, the expense that will be recognized over the life of the ESPP option.

The Company recognizes compensation expense for only the portion of restricted stock units that are expected to vest. Therefore, the Company applies estimated forfeiture rates that are derived from historical employee termination behavior. Based on historical differences with forfeitures of stock-based awards granted to the Company’s executive officers and Board of Directors versus grants awarded to all other employees, the Company has developed separate forfeiture expectations for these two groups. The estimated forfeiture rate for grants awarded to the Company’s executive officers and Board of Directors was approximately 6% and the estimated forfeiture rate for grants awarded to all other employees was approximately 9% in fiscal 2012. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods.

In November 2011, as part of the annual review of executive compensation, the Compensation Committee of the Board of Directors approved a change in the grant date for the Company’s annual equity awards program for the executive officers from August 1 to November 1 (or, if such day is not a business day, on the following business day).  As a result of this change in the annual grant date, a proposal from the Compensation Committee’s outside independent compensation consultant to revise the list of peer group data in recognition of the Company’s strong revenue growth and new positioning as part of the S&P 500 index, and the Compensation Committee’s belief in the importance of the Company’s ability to retain its key employees, the Company granted 82,968 RSUs to certain current executive officers in November 2011.  Fifty percent of the aggregate number of RSUs vest in equal quarterly increments over three years, until such portion of the grant is fully vested on November 1, 2014. One-sixth of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal year 2012. In each case, 50% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 50% is based on achieving at least 80% of the quarterly EBITDA goal. The quarterly performance stock grant is paid linearly above 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100%. Each goal is evaluated individually and subject to the 80% achievement threshold and 100% over-achievement threshold. The remaining 33.33% of this annual equity awards RSU grant shall be subject to quarterly performance based vesting for fiscal years 2013 and 2014 (16.66% in each period). The Compensation Committee of the Board of Directors will set applicable performance targets and vesting formulas for each of these periods. 

In August 2011, the Company granted 170,390 RSUs to certain current executive officers as part of the annual equity awards program. Fifty percent of the aggregate number of RSUs granted as part of the annual equity awards program vest in equal quarterly increments over three years, until such portion of the grant is fully vested on August 1, 2014. One-sixth of the annual equity awards RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during the period beginning in the fourth quarter of fiscal year 2011 through the third quarter of fiscal year 2012. In each case, 50% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 50% is based on achieving at least 80% of the quarterly EBITDA goal. The quarterly performance stock grant is paid linearly above 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100%. Each goal is evaluated individually and subject to the 80% achievement threshold and 100% over-achievement threshold. The remaining 33.33% of this annual equity awards RSU grant shall be subject to performance based vesting for each of the four quarter periods beginning with the fourth quarters of fiscal years 2012 and 2013 (16.66% in each period). The Compensation Committee of the Board of Directors will set applicable performance targets and vesting formulas for each of these periods.

In August 2010, the Company granted 181,334 and 83,000 RSUs to certain current executive officers as part of the annual equity and retention awards programs, respectively. Fifty percent of the aggregate number of RSUs granted as part of the annual equity awards program vest in equal quarterly increments over three years, until such portion of the grant is fully vested on August 1, 2013. One-sixth of the annual equity awards RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during the period beginning in the fourth quarter of fiscal year 2010 through the third quarter of fiscal year 2011. In each case, 50% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 50% is based on achieving at least 80% of the quarterly EBITDA goal. The quarterly performance stock grant is paid linearly above 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100%. Each goal is evaluated individually and subject to the 80% achievement threshold and 100% over-achievement threshold. The remaining 33.33% of this annual equity awards RSU grant shall be subject to performance based vesting for each of the four quarter periods beginning with the fourth quarters of fiscal years 2011 and 2012 (16.66% in each period). The Compensation Committee of the Board of Directors will set applicable performance targets and vesting formulas for each of these periods. All RSUs granted as part of the retention awards program fully vest on August 1, 2013.

 

The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance condition will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs based on the probability assessment.

Common Stock Repurchase 

On October 25, 2011, the Company announced that its Board of Directors authorized an additional $200 million for its common stock share repurchase program. This new authorization is incremental to the existing $400 million program, initially approved in October 2010 and expanded in August 2011. Acquisitions for the share repurchase programs will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. The programs can be terminated at any time. As of November 15, 2012, the Company had repurchased and retired 9,327,774 shares at an average price of $67.63 per share and the Company had $168.7 million remaining to purchase shares as part of its repurchase programs. 

 

Earnings Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. The Company’s nonvested restricted stock awards and restricted stock units do not have nonforfeitable rights to dividends or dividend equivalents.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Numerator

 

 

 

 

 

 

 

 

 

Net income

 

$
275,186 

 

$
241,397 

 

$
151,153 

Denominator

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding — basic

 

 
79,135 

 

 
80,658 

 

 
79,609 

Dilutive effect of common shares from stock options and restricted stock units

 

 
645 

 

 
824 

 

 
1,440 

Weighted average shares outstanding — diluted

 

 
79,780 

 

 
81,482 

 

 
81,049 

Basic net income per share

 

$
3.48 

 

$
2.99 

 

$
1.90 

Diluted net income per share

 

$
3.45 

 

$
2.96 

 

$
1.86 

 

An immaterial amount of common shares potentially issuable from stock options for the years ended September 30, 2012, 2011 and 2010 are excluded from the calculation of diluted earnings per share because the exercise price was greater than the average market price of common stock for the respective period.

Recent Accounting Pronouncements

In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS (ASU 2011-04), which amends current fair value measurement and disclosure guidance to converge with International Financial Reporting Standards (IFRS) and provides increased transparency around valuation inputs and investment categorization. The Company adopted ASU 2011-04 in the second quarter of fiscal 2012. The adoption of ASU 2011-04 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.  

 

In June 2011, the FASB issued ASU 2011-05, Comprehensive Income, Presentation of Comprehensive Income (ASU 2011-05), which eliminates the option of presenting other comprehensive income as part of the statement of changes in stockholders’ equity and instead requires the entity to present other comprehensive income as either a single statement of comprehensive income combined with net income or as two separate but continuous statements. The amendments in this standard are to be applied retrospectively and are effective for fiscal years, and interim periods within those years beginning after December 15, 2011. The Company will adopt ASU 2011-05 in the first quarter of fiscal 2013 and does not expect the adoption of this standard to have an impact on its consolidated financial statements.

 

In December 2011, the FASB issued ASU 2011-12, Comprehensive Income, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (ASU 2011-12), which defers the changes in ASU 2011-05 that relate to the presentation of reclassification adjustments to other comprehensive income. No other requirements in ASU 2011-05 are affected by this deferral. Similar to ASU 2011-05, the Company will adopt ASU 2011-12 in the first quarter of fiscal 2013 and does not expect the adoption of this standard to have an impact on its consolidated financial statements.  


Summary Of Significant Accounting Policies (Policy)
v0.0.0.0
Summary Of Significant Accounting Policies (Policy)
 12 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Principles Of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Reclassifications

Certain prior year amounts, specifically relating to cash flows in connection with the disposition of investments, have been reclassified from maturities of investments to sales of investments to conform to the current year presentation in the Consolidated Statement of Cash Flows. There was no change to the net cash used in investing activities as a result of this reclassification.

Use Of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates are used in accounting for revenue recognition, reserves for doubtful accounts, product returns, obsolete and excess inventory and valuation allowances on deferred tax assets. Actual results could differ from those estimates.

Cash And Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company invests its cash and cash equivalents in deposits with four major financial institutions, which, at times, exceed federally insured limits. The Company has not experienced any losses on its cash and cash equivalents.

Investments

Investments

The Company classifies its investment securities as available-for-sale. Investment securities, consisting of certificates of deposit, corporate and municipal bonds and notes and United States government and agency securities, are reported at fair value with the related unrealized gains and losses included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses and declines in value of securities judged to be other than temporary are included in other income (expense). The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Investments in securities with maturities of less than one year or where management’s intent is to use the investments to fund current operations are classified as short-term investments. Investments with maturities of greater than one year are classified as long-term investments.

 

Concentration Of Credit Risk

Concentration of Credit Risk

The Company extends credit to customers and is therefore subject to credit risk. The Company performs initial and ongoing credit evaluations of its customers’ financial condition and does not require collateral. An allowance for doubtful accounts is recorded to account for potential bad debts. Estimates are used in determining the allowance for doubtful accounts and are based upon an assessment of selected accounts and as a percentage of remaining accounts receivable by aging category. In determining these percentages, the Company evaluates historical write-offs, and current trends in customer credit quality, as well as changes in credit policies. At September 30, 2012, Avnet Technology Solutions and Ingram Micro, Inc. accounted for 13.4% and 12.0% of the Company’s accounts receivable, respectively. At September 30, 2011, Avnet Technology Solutions and Ingram Micro, Inc. accounted for 15.0% and 14.5% of the Company’s accounts receivable, respectively .  

The Company maintains its cash and investment balances with high credit quality financial institutions.

Fair Value Of Financial Instruments

Fair Value of Financial Instruments

Short-term and long-term investments are recorded at fair value as the underlying securities are classified as available-for-sale with any unrealized gain or loss being recorded to other comprehensive income. The fair value for securities held is determined using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency.

Inventories

Inventories

The Company outsources the manufacturing of its pre-configured hardware platforms to contract manufacturers, who assemble each product to the Company’s specifications. As protection against component shortages and to provide replacement parts for its service teams, the Company also stocks limited supplies of certain key product components. The Company reduces inventory to net realizable value based on excess and obsolete inventories determined primarily by historical usage and forecasted demand. Inventories consist of hardware and related component parts and are recorded at the lower of cost or market (as determined by the first-in, first-out method).

Inventories consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Finished goods

 

$
13,565 

 

$
12,917 

Raw materials

 

 
3,845 

 

 
4,232 

 

 

$
17,410 

 

$
17,149 

 

Property And Equipment

Property and Equipment

Property and equipment is stated at cost. Depreciation of property and equipment are provided using the straight-line method over the estimated useful lives of the assets, ranging from two to five years. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the improvements. The cost of normal maintenance and repairs is charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal.

Property and equipment consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Computer equipment

 

$
95,987 

 

$
77,899 

Office furniture and equipment

 

 
12,335 

 

 
11,243 

Leasehold improvements

 

 
43,957 

 

 
41,344 

 

 

 
152,279 

 

 
130,486 

Accumulated depreciation and amortization

 

 
(92,675)

 

 
(82,488)

 

 

$
59,604 

 

$
47,998 

 

Depreciation and amortization expense totaled approximately $19.0 million, $16.6 million, and $17.8 million for the fiscal years ended September 30, 2012, 2011 and 2010, respectively.

Goodwill

Goodwill

Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. Goodwill was recorded in connection with the acquisition of Traffix Systems in fiscal year 2012, Acopia Networks, Inc. in fiscal year 2007, Swan Labs, Inc. in fiscal year 2006, MagniFire Websystems, Inc. in fiscal year 2004 and uRoam, Inc. in fiscal year 2003. The Company performs its annual goodwill impairment test during the second fiscal quarter. 

In September 2011, the FASB approved changes to the goodwill impairment guidance which are intended to reduce the cost and complexity of the annual impairment test. The changes provide entities the option to perform a qualitative assessment to determine whether further impairment testing is necessary. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. 

The revised guidance includes examples of events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount. These include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers.  

The changes are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. However, earlier adoption is permitted. The Company opted to early adopt this guidance for its annual goodwill impairment test performed in the second quarter of fiscal 2012.  

If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the provisions of authoritative guidance require that the Company perform a two-step impairment test on goodwill. The first step of the test identifies whether potential impairment may have occurred, while the second step of the test measures the amount of the impairment, if any. Impairment is recognized when the carrying amount of goodwill exceeds its fair value. For its annual goodwill impairment analysis, the Company operates under one reporting unit and determines the fair value of its reporting unit based on the Company’s enterprise value. In March 2012, the Company completed a qualitative assessment of potential impairment indicators and concluded that it was more-likely-than-not that the fair value of its reporting unit exceeded its carrying amount. The Company also considered potential impairment indicators at September 30, 2012 and noted no indicators of impairment. 

 

Other Assets

Other Assets

Other assets primarily consist of software development costs, acquired and developed technology and customer relationships.

Software development costs are charged to research and development expense in the period incurred until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the lower of unamortized cost or net realizable value of each product. Capitalized software development costs are amortized over the remaining estimated economic life of the product. The establishment of technological feasibility and the ongoing assessment of recoverability of costs require considerable judgment by the Company with respect to certain internal and external factors, including, but not limited to, anticipated future gross product revenues, estimated economic life and changes in hardware and software technology. The Company did not capitalize any software development costs in fiscal years 2012, 2011 and 2010. Amortization expense related to capitalized software development was immaterial for fiscal years 2012, 2011, and 2010.

Acquired and developed technology and customer relationship assets are recorded at cost and amortized over their estimated useful lives of five years. The estimated useful life of these assets is assessed and evaluated for reasonableness periodically. Acquired technology of $14.9 million in fiscal 2012, $15.0 million in fiscal 2007 and $8.0 million in fiscal 2006 was recorded in connection with the acquisitions of Traffix Systems, Acopia and Swan Labs, respectively. Amortization expense related to acquired technology, which is charged to cost of product revenues, totaled $5.3 million, $3.1 million and $4.6 million during the fiscal years 2012, 2011 and 2010, respectively.

Amortization expense of all other intangible assets, including customer relationships, patents and trademarks was not material during the fiscal years 2012, 2011 and 2010.

Impairment Of Long-Lived Assets

Impairment of Long-Lived Assets

The Company assesses the impairment of long-lived assets whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be recoverable. When such events occur, management determines whether there has been impairment by comparing the anticipated undiscounted net future cash flows to the related asset’s carrying value. If impairment exists, the asset is written down to its estimated fair value. No impairment of long-lived assets was noted as of and for the year ended September 30, 2012.

Revenue Recognition

Revenue Recognition

The Company sells products through distributors, resellers, and directly to end users. Revenue is recognized provided that all of the following criteria have been met:

•    Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a purchase order issued pursuant to the terms and conditions of a distributor, reseller or end user agreement.

•    Delivery has occurred. The Company uses shipping or related documents, or written evidence of customer acceptance, when applicable, to verify delivery or completion of any performance terms.

•    The sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.

•    Collectability is reasonably assured. The Company assesses collectability primarily based on the creditworthiness of the customer as determined by credit checks and related analysis, as well as the Customer’s payment history.

In certain regions where the Company does not have the ability to reasonably estimate returns, the Company defers revenue on sales to its distributors until they have received information from the channel partner indicating that the product has been sold to the end-user customer. Payment terms to domestic customers are generally net 30 days to net 45 days. Payment terms to international customers range from net 30 days to net 120 days based on normal and customary trade practices in the individual markets. The Company offers extended payment terms to certain customers, in which case, revenue is recognized when payments are due.

Whenever product, training services and post-contract customer support (PCS) elements are sold together, a portion of the sales price is allocated to each element based on their respective fair values as determined when the individual elements are sold separately. Revenue from the sale of products is recognized when the product has been shipped and the customer is obligated to pay for the product. When rights of return are present and the Company cannot estimate returns, it recognizes revenue when such rights of return lapse. Revenues for PCS are recognized on a straight-line basis over the service contract term. PCS includes a limited period of telephone support updates, repair or replacement of any failed product or component that fails during the term of the agreement, bug fixes and rights to upgrades, when and if available. Consulting services are customarily billed at fixed hourly rates, plus out-of-pocket expenses, and revenues are recognized when the consulting has been completed. Training revenue is recognized when the training has been completed.

In October 2009, the Financial Accounting Standards Board (FASB) amended the accounting standards for revenue recognition to remove from the scope of industry-specific software revenue recognition guidance any tangible products containing software components and non-software components that operate together to deliver the products essential functionality. In addition, the FASB amended the accounting standards for certain multiple element revenue arrangements to:

•    Provide updated guidance on whether multiple elements exist, how the elements in an arrangement should be separated, and how the arrangement consideration should be allocated to the separate elements;

•    Require an entity to allocate arrangement consideration to each element based on a selling price hierarchy, where the selling price for an element is based on vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if available and VSOE is not available; or the best estimate of selling price (BESP), if neither VSOE or TPE is available; and

•    Eliminate the use of the residual method and require an entity to allocate arrangement consideration using the selling price hierarchy.

 

The majority of the Company’s products are hardware appliances which contain software essential to the overall functionality of the products. Accordingly, the Company no longer recognizes revenue on sales of these products in accordance with the industry-specific software revenue recognition guidance.

For all transactions entered into prior to the first quarter of fiscal year 2011 and for sales of nonessential and stand-alone software after October 1, 2010, the Company allocates revenue for arrangements with multiple elements based on the software revenue recognition guidance. Software revenue recognition guidance requires revenue earned on software arrangements involving multiple elements to be allocated to each element based on the relative fair values of those elements. The fair value of an element must be based on VSOE. Where fair value of certain elements is not available, revenue is recognized on the “residual method” based on the fair value of undelivered elements. If evidence of the fair value of one or more undelivered elements does not exist, all revenue is deferred and recognized at the earlier of the delivery of those elements or the establishment of fair value of the remaining undelivered elements.

For transactions entered into subsequent to the adoption of the amended revenue recognition standards that are multiple-element arrangements, the arrangement consideration is allocated to each element based on the relative selling prices of all of the elements in the arrangement using the fair value hierarchy in the amended revenue recognition guidance.

Consistent with the methodology used under the previous accounting guidance, the Company establishes VSOE for its products, training services, PCS and consulting services based on the sales price charged for each element when sold separately. The sales price is discounted from the applicable list price based on various factors including the type of customer, volume of sales, geographic region and program level. The Company’s list prices are generally not fair value as discounts may be given based on the factors enumerated above. The Company believes that the fair value of its consulting services is represented by the billable consulting rate per hour, based on the rates they charge customers when they purchase standalone consulting services. The price of consulting services is not based on the type of customer, volume of sales, geographic region or program level.

The Company uses historical sales transactions to determine whether VSOE can be established for each of the elements. In most instances, VSOE is the sales price of actual standalone (unbundled) transactions within the past 12 month period that are priced within a reasonable range, which the Company has determined to be plus or minus 15% of the median sales price of each respective price list.

VSOE of PCS is based on standalone sales since the Company does not provide stated renewal rates to its customers. In accordance with the Company’s PCS pricing practice (supported by standalone renewal sales), renewal contracts are priced as a percentage of the undiscounted product list price. The PCS renewal percentages may vary, depending on the type and length of PCS purchased. The Company offers standard and premium PCS, and the term generally ranges from one to three years. The Company employs a bell-shaped-curve approach in evaluating VSOE of fair value of PCS. Under this approach, the Company considers VSOE of the fair value of PCS to exist when a substantial majority of its standalone PCS sales fall within a narrow range of pricing.

The Company is typically not able to determine TPE for its products or services. TPE is based on competitor prices for similar elements when sold separately. Generally, the Company’s go-to-market strategy differs from that of other competitive products or services in its markets and the Company’s offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine the selling prices on a stand-alone basis of similar products offered by its competitors.

When the Company is unable to establish the selling price of its non-software elements using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company is generally not able to establish VSOE for non-software product sales. Under software revenue recognition guidance, these product sales were accounted for utilizing the residual method. With the adoption of the new revenue recognition guidance, the Company has been able to establish BESP for non-software product sales through the list price, less a discount deemed appropriate to maintain a reasonable gross margin. Management regularly reviews the gross margin information. Non-software product BESP is determined through our review of historical sales transactions within the past 12 month period. Additional factors considered in determining an appropriate BESP include, but are not limited to, cost of products, pricing practices, geographies, customer classes, and distribution channels.

The Company has established and regularly validates the VSOE of fair value and BESP for elements in its multiple element arrangements. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excluded from revenues.

Shipping And Handling

Shipping and Handling

Shipping and handling fees charged to the Company’s customers are recognized as product revenue in the period shipped and the related costs for providing these services are recorded as a cost of sale.

Guarantees And Product Warranties

Guarantees and Product Warranties

In the normal course of business to facilitate sales of its products, the Company indemnifies other parties, including customers, resellers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold the other party harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. The Company has entered into indemnification agreements with its officers and directors, and the Company’s bylaws contain similar indemnification obligations to the Company’s agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement.

The Company offers warranties of one year for hardware for those customers without service contracts, with the option of purchasing additional warranty coverage in yearly increments. The Company accrues for warranty costs as part of its cost of sales based on associated material product costs and technical support labor costs. Accrued warranty costs as of September 30, 2012, 2011 and 2010 were not considered material.

Research And Development

Research and Development

Research and development expenses consist of salaries and related benefits of product development personnel, prototype materials and expenses related to the development of new and improved products, and an allocation of facilities and depreciation expense. Research and development expenses are reflected in the statements of income as incurred.

Advertising

Advertising

Advertising costs are expensed as incurred. The Company incurred $1.8 million, $2.2 million and $2.1 million in advertising costs during the fiscal years 2012, 2011 and 2010, respectively.

Income Taxes

Income Taxes

Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and estimates of future taxable income. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized.

The Company assesses whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefits to be recognized in the financial statements from such a position is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The new guidance also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

Foreign Currency

Foreign Currency

The functional currency for the Company’s foreign subsidiaries is the local currency in which the respective entity is located, with the exception of F5 Networks, Ltd. in the United Kingdom and F5 Networks (Israel), Ltd. and Traffix Communication Systems, Ltd. in Israel, that use the U.S. dollar as their functional currency. An entity’s functional currency is determined by the currency of the economic environment in which the majority of cash is generated and expended by the entity. The financial statements of all majority-owned subsidiaries and related entities, with a functional currency other than the U.S. dollar, have been translated into U.S. dollars. All assets and liabilities of the respective entities are translated at year-end exchange rates and all revenues and expenses are translated at average rates during the respective period. Translation adjustments are reported as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity.

Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency, including U.S. dollars. Gains and losses on those foreign currency transactions are included in determining net income or loss for the period of exchange. The net effect of foreign currency gains and losses was not significant during the fiscal years ended September 30, 2012, 2011 and 2010.

Segments

Segments

Management has determined that the Company was organized as, and operated in, one reportable operating segment for fiscal year 2012 and prior years: the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems.

Stock-Based Compensation

Stock-Based Compensation

The Company accounts for stock-based compensation using the straight-line attribution method for recognizing compensation expense. The Company recognized $95.3 million, $89.7 million and $70.8 million of stock-based compensation expense for the fiscal years ended September 30, 2012, 2011 and 2010, respectively. As of September 30, 2012, there was $134.9 million of total unrecognized stock-based compensation cost, the majority of which will be recognized over the next two years. Going forward, stock-based compensation expenses may increase as the Company issues additional equity-based awards to continue to attract and retain key employees.

The Company issues incentive awards to its employees through stock-based compensation consisting of restricted stock units (RSUs). Pursuant to the Company’s annual equity awards program, the Company’s Compensation Committee approved 789,225 RSUs to non-executive employees on July 30, 2012 and 290,415 RSUs to executive officers on October 30, 2012. The value of RSUs is determined using the fair value method, which in this case, is based on the number of shares granted and the quoted price of the Company’s common stock on the date of grant. All stock options granted in fiscal year 2012 were assumed as part of the acquisition of Traffix Systems in the second fiscal quarter. No stock options were granted in fiscal years 2011 and 2010. In determining the fair value of shares issued under the Employee Stock Purchase Plan (ESPP), the Company uses the Black-Scholes option pricing model that employs the following key assumptions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee Stock Purchase Plan

 

 

 

Years Ended September 30,

 

 

 

2012

 

2011

 

2010

Risk-free interest rate

 

 
0.14 

%

 
0.10 

%

 
0.25 

%

Expected dividend

 

 

—

 

 

—

 

 

—

 

Expected term

 

 

0.5 years

 

 

0.5 years

 

 

0.5 years

 

Expected volatility

 

 
45.20 

%

 
53.87 

%

 
41.04 

%

The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company does not anticipate declaring dividends in the foreseeable future. Expected volatility is based on the annualized daily historical volatility of the Company’s stock price commensurate with the expected life of the ESPP option. Expected term of the ESPP option is based on an offering period of six months. The assumptions above are based on management’s best estimates at that time, which impact the fair value of the ESPP option calculated under the Black-Scholes methodology and, ultimately, the expense that will be recognized over the life of the ESPP option.

The Company recognizes compensation expense for only the portion of restricted stock units that are expected to vest. Therefore, the Company applies estimated forfeiture rates that are derived from historical employee termination behavior. Based on historical differences with forfeitures of stock-based awards granted to the Company’s executive officers and Board of Directors versus grants awarded to all other employees, the Company has developed separate forfeiture expectations for these two groups. The estimated forfeiture rate for grants awarded to the Company’s executive officers and Board of Directors was approximately 6% and the estimated forfeiture rate for grants awarded to all other employees was approximately 9% in fiscal 2012. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods.

In November 2011, as part of the annual review of executive compensation, the Compensation Committee of the Board of Directors approved a change in the grant date for the Company’s annual equity awards program for the executive officers from August 1 to November 1 (or, if such day is not a business day, on the following business day).  As a result of this change in the annual grant date, a proposal from the Compensation Committee’s outside independent compensation consultant to revise the list of peer group data in recognition of the Company’s strong revenue growth and new positioning as part of the S&P 500 index, and the Compensation Committee’s belief in the importance of the Company’s ability to retain its key employees, the Company granted 82,968 RSUs to certain current executive officers in November 2011.  Fifty percent of the aggregate number of RSUs vest in equal quarterly increments over three years, until such portion of the grant is fully vested on November 1, 2014. One-sixth of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal year 2012. In each case, 50% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 50% is based on achieving at least 80% of the quarterly EBITDA goal. The quarterly performance stock grant is paid linearly above 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100%. Each goal is evaluated individually and subject to the 80% achievement threshold and 100% over-achievement threshold. The remaining 33.33% of this annual equity awards RSU grant shall be subject to quarterly performance based vesting for fiscal years 2013 and 2014 (16.66% in each period). The Compensation Committee of the Board of Directors will set applicable performance targets and vesting formulas for each of these periods. 

In August 2011, the Company granted 170,390 RSUs to certain current executive officers as part of the annual equity awards program. Fifty percent of the aggregate number of RSUs granted as part of the annual equity awards program vest in equal quarterly increments over three years, until such portion of the grant is fully vested on August 1, 2014. One-sixth of the annual equity awards RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during the period beginning in the fourth quarter of fiscal year 2011 through the third quarter of fiscal year 2012. In each case, 50% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 50% is based on achieving at least 80% of the quarterly EBITDA goal. The quarterly performance stock grant is paid linearly above 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100%. Each goal is evaluated individually and subject to the 80% achievement threshold and 100% over-achievement threshold. The remaining 33.33% of this annual equity awards RSU grant shall be subject to performance based vesting for each of the four quarter periods beginning with the fourth quarters of fiscal years 2012 and 2013 (16.66% in each period). The Compensation Committee of the Board of Directors will set applicable performance targets and vesting formulas for each of these periods.

In August 2010, the Company granted 181,334 and 83,000 RSUs to certain current executive officers as part of the annual equity and retention awards programs, respectively. Fifty percent of the aggregate number of RSUs granted as part of the annual equity awards program vest in equal quarterly increments over three years, until such portion of the grant is fully vested on August 1, 2013. One-sixth of the annual equity awards RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during the period beginning in the fourth quarter of fiscal year 2010 through the third quarter of fiscal year 2011. In each case, 50% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 50% is based on achieving at least 80% of the quarterly EBITDA goal. The quarterly performance stock grant is paid linearly above 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100%. Each goal is evaluated individually and subject to the 80% achievement threshold and 100% over-achievement threshold. The remaining 33.33% of this annual equity awards RSU grant shall be subject to performance based vesting for each of the four quarter periods beginning with the fourth quarters of fiscal years 2011 and 2012 (16.66% in each period). The Compensation Committee of the Board of Directors will set applicable performance targets and vesting formulas for each of these periods. All RSUs granted as part of the retention awards program fully vest on August 1, 2013.

 

The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance condition will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs based on the probability assessment.

Common Stock Repurchase

Common Stock Repurchase 

On October 25, 2011, the Company announced that its Board of Directors authorized an additional $200 million for its common stock share repurchase program. This new authorization is incremental to the existing $400 million program, initially approved in October 2010 and expanded in August 2011. Acquisitions for the share repurchase programs will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. The programs can be terminated at any time. As of November 15, 2012, the Company had repurchased and retired 9,327,774 shares at an average price of $67.63 per share and the Company had $168.7 million remaining to purchase shares as part of its repurchase programs. 

Earnings Per Share

 

Earnings Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. The Company’s nonvested restricted stock awards and restricted stock units do not have nonforfeitable rights to dividends or dividend equivalents.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Numerator

 

 

 

 

 

 

 

 

 

Net income

 

$
275,186 

 

$
241,397 

 

$
151,153 

Denominator

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding — basic

 

 
79,135 

 

 
80,658 

 

 
79,609 

Dilutive effect of common shares from stock options and restricted stock units

 

 
645 

 

 
824 

 

 
1,440 

Weighted average shares outstanding — diluted

 

 
79,780 

 

 
81,482 

 

 
81,049 

Basic net income per share

 

$
3.48 

 

$
2.99 

 

$
1.90 

Diluted net income per share

 

$
3.45 

 

$
2.96 

 

$
1.86 

 

An immaterial amount of common shares potentially issuable from stock options for the years ended September 30, 2012, 2011 and 2010 are excluded from the calculation of diluted earnings per share because the exercise price was greater than the average market price of common stock for the respective period.


Summary Of Significant Accounting Policies (Tables)
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Summary Of Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Schedule Of Inventories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Finished goods

 

$
13,565 

 

$
12,917 

Raw materials

 

 
3,845 

 

 
4,232 

 

 

$
17,410 

 

$
17,149 

 

Schedule Of Property And Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Computer equipment

 

$
95,987 

 

$
77,899 

Office furniture and equipment

 

 
12,335 

 

 
11,243 

Leasehold improvements

 

 
43,957 

 

 
41,344 

 

 

 
152,279 

 

 
130,486 

Accumulated depreciation and amortization

 

 
(92,675)

 

 
(82,488)

 

 

$
59,604 

 

$
47,998 

 

Schedule Of Assumptions In Determining The Fair Value Of Shares Issued Under The Employee Stock Purchase Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee Stock Purchase Plan

 

 

 

Years Ended September 30,

 

 

 

2012

 

2011

 

2010

Risk-free interest rate

 

 
0.14 

%

 
0.10 

%

 
0.25 

%

Expected dividend

 

 

—

 

 

—

 

 

—

 

Expected term

 

 

0.5 years

 

 

0.5 years

 

 

0.5 years

 

Expected volatility

 

 
45.20 

%

 
53.87 

%

 
41.04 

%

 

Schedule Of Computation Of Basic And Diluted Net Income Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Numerator

 

 

 

 

 

 

 

 

 

Net income

 

$
275,186 

 

$
241,397 

 

$
151,153 

Denominator

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding — basic

 

 
79,135 

 

 
80,658 

 

 
79,609 

Dilutive effect of common shares from stock options and restricted stock units

 

 
645 

 

 
824 

 

 
1,440 

Weighted average shares outstanding — diluted

 

 
79,780 

 

 
81,482 

 

 
81,049 

Basic net income per share

 

$
3.48 

 

$
2.99 

 

$
1.90 

Diluted net income per share

 

$
3.45 

 

$
2.96 

 

$
1.86 

 


Summary Of Significant Accounting Policies (Narrative) (Details)
v0.0.0.0
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
 0 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Nov. 15, 2012
Oct. 25, 2011
Aug. 31, 2011
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2012
Restricted Stock Unit [Member]
Sep. 30, 2011
Restricted Stock Unit [Member]
Sep. 30, 2010
Restricted Stock Unit [Member]
Nov. 30, 2011
Annual Equity Program [Member]
Aug. 31, 2011
Annual Equity Program [Member]
Aug. 31, 2010
Annual Equity Program [Member]
Aug. 31, 2010
Retention Awards Program [Member]
Oct. 30, 2012
Non-Executive Employees [Member]
Oct. 30, 2012
Executive Officers [Member]
Sep. 30, 2012
Minimum [Member]
Sep. 30, 2012
Minimum [Member]
Restricted Stock Unit [Member]
Sep. 30, 2012
Maximum [Member]
Sep. 30, 2012
Maximum [Member]
Restricted Stock Unit [Member]
Sep. 30, 2012
Avnet Technology Solutions [Member]
Sep. 30, 2011
Avnet Technology Solutions [Member]
Sep. 30, 2012
Ingram Micro, Inc. [Member]
Sep. 30, 2011
Ingram Micro, Inc. [Member]
Sep. 30, 2012
Hardware [Member]
Sep. 30, 2012
Traffix Systems [Member]
Sep. 30, 2007
Acopia [Member]
Sep. 30, 2006
Swan Labs [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]                                                      
Accounts receivable from major customers, percentage                                       13.40% 15.00% 12.00% 14.50%        
Property and equipment, useful life                               2 years   5 years                  
Depreciation and amortization expense       $ 19,000,000 $ 16,600,000 $ 17,800,000                                          
Acquired and developed technology and customer relationship assets estimated useful lives       5 years                                              
Acquired technology in connection with the acquisitions                                                 14,900,000 15,000,000 8,000,000
Amortization expense related to acquired technology       5,300,000 3,100,000 4,600,000                                          
Domestic accounts receivable terms of payment                               30 days   45 days                  
International accounts receivable terms of payment                               30 days   120 days                  
Range of VSOE to median sales price       15.00%                                              
Customer support package term                               1 year   3 years                  
Standard product warranty period                                               1 year      
Advertising costs       1,800,000 2,200,000 2,100,000                                          
Stock-based compensation       95,348,000 89,747,000 70,773,000                                          
Unrecognized stock-based compensation cost       134,900,000                                              
Unrecognized stock-based compensation cost, period for recognition, years       2 years                                              
Approved RSUs to employees and executive officers by compensation committee                           789,225 290,415                        
ESSP option, offering period       6 months                                              
Estimated forfeiture rate for grants awarded to executive officers and board of directors       6.00%                                              
Estimated forfeiture rate for grants awarded to all other employees       9.00%                                              
Approved RSUs to employees and executive officers pursuant to the Company's annual equity awards program             1,189,299     82,968 170,390 181,334 83,000                            
Percentage of the aggregate number of RSUs granted that vest in equal quarterly increments                   50.00% 50.00% 50.00%                              
Annual equity awards program vesting period             2 years 2 years 2 years 3 years 3 years 3 years         1 year   4 years                
Percentage of quarterly performance stock grant based on achieving quarterly revenue goal                   50.00% 50.00% 50.00%                              
Percentage of quarterly revenue goal to be achieved for performance stock grant                   80.00% 80.00% 80.00%                              
Percentage of quarterly performance stock grant based on achieving EBITDA goal                   50.00% 50.00% 50.00%                              
Percentage of achievement threshold to which the goals are entitled                   80.00% 80.00% 80.00%                              
Percentage of over-achievement threshold to which the goals are entitled                   100.00% 100.00% 100.00%                              
Percentage of annual equity awards RSU grant subject to performance based vesting                   33.33% 33.33% 33.33%                              
Percentage of annual equity awards RSU grant subject to performance based vesting in each period                   16.66% 16.66% 16.66%                              
Common stock share repurchase program, amount authorized     400,000,000                                                
Common stock share repurchase program, additional amount   200,000,000                                                  
Shares repurchased and retired 9,327,774                                                    
Shares repurchased and retired, average price per share $ 67.63                                                    
Stock repurchase program, remaining amount $ 168,700,000                                                    

Summary Of Significant Accounting Policies (Schedule Of Inventories) (Details)
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Summary Of Significant Accounting Policies (Schedule Of Inventories) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Summary Of Significant Accounting Policies [Abstract]    
Finished goods $ 13,565 $ 12,917
Raw materials 3,845 4,232
Inventories, Total $ 17,410 $ 17,149

Summary Of Significant Accounting Policies (Schedule Of Property And Equipment) (Details)
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Summary Of Significant Accounting Policies (Schedule Of Property And Equipment) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Summary Of Significant Accounting Policies [Abstract]    
Computer equipment $ 95,987 $ 77,899
Office furniture and equipment 12,335 11,243
Leasehold improvements 43,957 41,344
Property and equipment, gross 152,279 130,486
Accumulated depreciation and amortization (92,675) (82,488)
Property and equipment, net $ 59,604 $ 47,998

Summary Of Significant Accounting Policies (Schedule Of Assumptions In Determining The Fair Value Of Shares Issued Under The Employee Stock Purchase Plan) (Details)
v0.0.0.0
Summary Of Significant Accounting Policies (Schedule Of Assumptions In Determining The Fair Value Of Shares Issued Under The Employee Stock Purchase Plan) (Details)
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Summary Of Significant Accounting Policies [Abstract]      
Risk-free interest rate 0.14% 0.10% 0.25%
Expected dividend         
Expected term 6 months 6 months 6 months
Expected volatility 45.20% 53.87% 41.04%

Summary Of Significant Accounting Policies (Schedule Of Computation Of Basic And Diluted Net Income Per Share) (Details)
v0.0.0.0
Summary Of Significant Accounting Policies (Schedule Of Computation Of Basic And Diluted Net Income Per Share) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Summary Of Significant Accounting Policies [Abstract]                      
Net income $ 67,717 $ 72,336 $ 68,641 $ 66,492 $ 67,610 $ 62,549 $ 55,575 $ 55,663 $ 275,186 $ 241,397 $ 151,153
Weighted average shares outstanding - basic 78,980 79,135 79,156 79,272 80,317 80,866 80,809 80,644 79,135 80,658 79,609
Dilutive effect of common shares from stock options and restricted stock units                 645 824 1,440
Weighted average shares outstanding - diluted 79,425 79,655 79,775 79,822 80,766 81,497 81,622 81,648 79,780 81,482 81,049
Basic net income per share $ 0.86 $ 0.91 $ 0.87 $ 0.84 $ 0.84 $ 0.77 $ 0.69 $ 0.69 $ 3.48 $ 2.99 $ 1.90
Diluted net income per share $ 0.85 $ 0.91 $ 0.86 $ 0.83 $ 0.84 $ 0.77 $ 0.68 $ 0.68 $ 3.45 $ 2.96 $ 1.86

Fair Value Measurements
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Fair Value Measurements
 12 Months Ended
Sep. 30, 2012
Fair Value Measurements [Abstract]  
Fair Value Measurements

2.  Fair Value Measurements

In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Company determines fair value using a fair value hierarchy that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances and expands disclosure about fair value measurements.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date, essentially the exit price.

The levels of fair value hierarchy are:

Level 1: Quoted prices in active markets for identical assets and liabilities at the measurement date that the Company has the ability to access.  

Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Unobservable inputs for which there is little or no market data available. These inputs reflect management’s assumptions of what market participants would use in pricing the asset or liability.

Level 1 investments are valued based on quoted market prices in active markets and include the Company’s cash equivalent investments. Level 2 investments, which include investments that are valued based on quoted prices in markets that are not active, broker or dealer quotations, actual trade data, benchmark yields or alternative pricing sources with reasonable levels of price transparency, include the Company’s certificates of deposit, corporate bonds and notes, municipal bonds and notes, U.S. government securities and U.S. government agency securities. Fair values for the Company’s level 2 investments are based on similar assets without applying significant judgments. In addition, all of the Company’s level 2 investments have a sufficient level of trading volume to demonstrate that the fair values used are appropriate for these investments.

A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2012, were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

Quoted Prices in

 

Significant

 

Significant

 

 

 

 

 

Active Markets for

 

Other Observable

 

Unobservable

 

Fair Value at

 

 

Identical Securities

 

Inputs

 

Inputs

 

September 30,

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

2012

Cash equivalents

 

$
35,658 

 

$

—

 

$

—

 

$
35,658 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — certificates of deposit

 

 

—

 

 
3,533 

 

 

—

 

 
3,533 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
193,990 

 

 

—

 

 
193,990 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
63,422 

 

 

—

 

 
63,422 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
60,025 

 

 

—

 

 
60,025 

Long-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
229,441 

 

 

—

 

 
229,441 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
30,307 

 

 

—

 

 
30,307 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

—

 

 
4,995 

 

 

—

 

 
4,995 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
393,310 

 

 

—

 

 
393,310 

Available-for-sale securities — auction rate securities

 

 

—

 

 

—

 

 
4,750 

 

 
4,750 

Total

 

$
35,658 

 

$
979,023 

 

$
4,750 

 

$
1,019,431 

The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2011, were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

Quoted Prices in

 

Significant

 

Significant

 

 

 

 

 

Active Markets for

 

Other Observable

 

Unobservable

 

Fair Value at

 

 

Identical Securities

 

Inputs

 

Inputs

 

September 30,

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

2011

Cash equivalents

 

$
33,740 

 

$

—

 

$

—

 

$
33,740 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
137,156 

 

 

—

 

 
137,156 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
82,715 

 

 

—

 

 
82,715 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

—

 

 
799 

 

 

—

 

 
799 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
105,096 

 

 

—

 

 
105,096 

Long-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
141,150 

 

 

—

 

 
141,150 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
30,714 

 

 

—

 

 
30,714 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
285,329 

 

 

—

 

 
285,329 

Available-for-sale securities — auction rate securities

 

 

—

 

 

—

 

 
13,010 

 

 
13,010 

Total

 

$
33,740 

 

$
782,959 

 

$
13,010 

 

$
829,709 

 

Due to the auction failures of the Company’s auction rate securities (ARS) that began in the second quarter of fiscal year 2008, there are still no quoted prices in active markets for similar assets as of September 30, 2012. Therefore, the Company has classified its ARS as level 3 financial assets. The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

Balance, beginning of period

 

$
13,010 

 

$
16,043 

Total gains realized or unrealized:

 

 

 

 

 

 

Included in other comprehensive income

 

 
1,740 

 

 
967 

Settlements

 

 
(10,000)

 

 
(4,000)

Balance, end of period

 

$
4,750 

 

$
13,010 

Unrealized gains attributable to assets still held as of the end of the period

 

 
112 

 

 
314 

 

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable or there is limited market activity such that the determination of fair value requires significant judgment or estimation. Level 3 investment securities primarily include certain ARS for which there was a decrease in the observation of market pricing. At September 30, 2012, the values of these securities were estimated primarily using discounted cash flow analysis that incorporated transaction details such as contractual terms, maturity, timing and amount of future cash flows, as well as assumptions about liquidity and credit valuation adjustments of marketplace participants at September 30, 2012. Significant fluctuations in any of these inputs in isolation would result in changes in the fair value of the Company’s ARS, but due to the balance at September 30, 2012, any change would not be material to the consolidated financial statements.

 

The Company uses the fair value hierarchy for financial assets and liabilities. The Company’s non-financial assets and liabilities, which include goodwill, intangible assets, and long-lived assets, are not required to be carried at fair value on a recurring basis. These non-financial assets and liabilities are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. The Company reviews goodwill and intangible assets for impairment annually, during the second quarter of each fiscal year, or as circumstances indicate the possibility of impairment. The Company monitors the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate its carrying amount may not be recoverable. During the year ended September 30, 2012, the Company did not recognize any impairment charges related to goodwill, intangible assets, or long-lived assets.


Fair Value Measurements (Tables)
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Fair Value Measurements (Tables)
 12 Months Ended
Sep. 30, 2012
Fair Value Measurements [Abstract]  
Schedule Of Financial Assets Measured At Fair Value on A Recurring Basis

The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2012, were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

Quoted Prices in

 

Significant

 

Significant

 

 

 

 

 

Active Markets for

 

Other Observable

 

Unobservable

 

Fair Value at

 

 

Identical Securities

 

Inputs

 

Inputs

 

September 30,

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

2012

Cash equivalents

 

$
35,658 

 

$

—

 

$

—

 

$
35,658 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — certificates of deposit

 

 

—

 

 
3,533 

 

 

—

 

 
3,533 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
193,990 

 

 

—

 

 
193,990 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
63,422 

 

 

—

 

 
63,422 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
60,025 

 

 

—

 

 
60,025 

Long-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
229,441 

 

 

—

 

 
229,441 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
30,307 

 

 

—

 

 
30,307 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

—

 

 
4,995 

 

 

—

 

 
4,995 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
393,310 

 

 

—

 

 
393,310 

Available-for-sale securities — auction rate securities

 

 

—

 

 

—

 

 
4,750 

 

 
4,750 

Total

 

$
35,658 

 

$
979,023 

 

$
4,750 

 

$
1,019,431 

The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2011, were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

 

 

 

Quoted Prices in

 

Significant

 

Significant

 

 

 

 

 

Active Markets for

 

Other Observable

 

Unobservable

 

Fair Value at

 

 

Identical Securities

 

Inputs

 

Inputs

 

September 30,

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

2011

Cash equivalents

 

$
33,740 

 

$

—

 

$

—

 

$
33,740 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
137,156 

 

 

—

 

 
137,156 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
82,715 

 

 

—

 

 
82,715 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

—

 

 
799 

 

 

—

 

 
799 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
105,096 

 

 

—

 

 
105,096 

Long-term investments

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities — corporate bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
141,150 

 

 

—

 

 
141,150 

Available-for-sale securities — municipal bonds and

 

 

 

 

 

 

 

 

 

 

 

 

notes

 

 

—

 

 
30,714 

 

 

—

 

 
30,714 

Available-for-sale securities — U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

agency securities

 

 

—

 

 
285,329 

 

 

—

 

 
285,329 

Available-for-sale securities — auction rate securities

 

 

—

 

 

—

 

 
13,010 

 

 
13,010 

Total

 

$
33,740 

 

$
782,959 

 

$
13,010 

 

$
829,709 

 

Schedule Of Reconciliation Of Items Measured At Fair Value On A Recurring Basis That Used Significant Unobservable Inputs (Level 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

Balance, beginning of period

 

$
13,010 

 

$
16,043 

Total gains realized or unrealized:

 

 

 

 

 

 

Included in other comprehensive income

 

 
1,740 

 

 
967 

Settlements

 

 
(10,000)

 

 
(4,000)

Balance, end of period

 

$
4,750 

 

$
13,010 

Unrealized gains attributable to assets still held as of the end of the period

 

 
112 

 

 
314 

 


Fair Value Measurements (Schedule Of Financial Assets Measured At Fair Value On A Recurring Basis) (Details)
v0.0.0.0
Fair Value Measurements (Schedule Of Financial Assets Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Cash equivalents, fair value $ 35,658 $ 33,740
Available-for-sale securities 983,773  
Financial assets measured at fair value on a recurring basis, total 1,019,431 829,709
Quoted Prices In Active Markets For Identical Securities (Level 1) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Cash equivalents, fair value 35,658 33,740
Financial assets measured at fair value on a recurring basis, total 35,658 33,740
Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Financial assets measured at fair value on a recurring basis, total 979,023 782,959
Significant Unobservable Inputs (Level 3) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Financial assets measured at fair value on a recurring basis, total 4,750 13,010
Short-Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 3,533  
Short-Term Investments [Member] | Certificates Of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 3,533  
Short-Term Investments [Member] | Corporate Bonds And Notes [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 193,990 137,156
Short-Term Investments [Member] | Corporate Bonds And Notes [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 193,990 137,156
Short-Term Investments [Member] | Municipal Bonds And Notes [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 63,422 82,715
Short-Term Investments [Member] | Municipal Bonds And Notes [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 63,422 82,715
Short-Term Investments [Member] | U.S. Government Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities   799
Short-Term Investments [Member] | U.S. Government Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities   799
Short-Term Investments [Member] | U.S. Government Agency Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 60,025 105,096
Short-Term Investments [Member] | U.S. Government Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 60,025 105,096
Long-Term Investments [Member] | Corporate Bonds And Notes [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 229,441 141,150
Long-Term Investments [Member] | Corporate Bonds And Notes [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 229,441 141,150
Long-Term Investments [Member] | Municipal Bonds And Notes [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 30,307 30,714
Long-Term Investments [Member] | Municipal Bonds And Notes [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 30,307 30,714
Long-Term Investments [Member] | U.S. Government Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 4,995  
Long-Term Investments [Member] | U.S. Government Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 4,995  
Long-Term Investments [Member] | U.S. Government Agency Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 393,310 285,329
Long-Term Investments [Member] | U.S. Government Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 393,310 285,329
Long-Term Investments [Member] | Auction Rate Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 4,750 13,010
Long-Term Investments [Member] | Auction Rate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities $ 4,750 $ 13,010

Fair Value Measurements (Schedule Of Reconciliation Of Items Measured At Fair Value On A Recurring Basis That Used Significant Unobservable Inputs (Level 3)) (Details)
v0.0.0.0
Fair Value Measurements (Schedule Of Reconciliation Of Items Measured At Fair Value On A Recurring Basis That Used Significant Unobservable Inputs (Level 3)) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Fair Value Measurements [Abstract]    
Balance, beginning of period $ 13,010 $ 16,043
Total gains realized or unrealized: Included in other comprehensive income 1,740 967
Settlements (10,000) (4,000)
Balance, end of period 4,750 13,010
Unrealized gains attributable to assets still held as of the end of the period $ 112 $ 314

Short-Term And Long-Term Investments
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Short-Term And Long-Term Investments
 12 Months Ended
Sep. 30, 2012
Short-Term And Long-Term Investments [Abstract]  
Short-Term And Long-Term Investments

 3.  Short-Term and Long-Term Investments

Short-term investments consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2012

 

Cost

 

Gains

 

Losses

 

Fair Value

Certificates of deposit

 

$
3,528 

 

$
5 

 

$

 -

 

$
3,533 

Corporate bonds and notes

 

 
193,548 

 

 
482 

 

 
(40)

 

 
193,990 

Municipal bonds and notes

 

 
63,371 

 

 
61 

 

 
(10)

 

 
63,422 

U.S. government agency securities

 

 
60,010 

 

 
15 

 

 

 -

 

 
60,025 

 

 

$
320,457 

 

$
563 

 

$
(50)

 

$
320,970 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2011

 

Cost

 

Gains

 

Losses

 

Fair Value

Corporate bonds and notes

 

$
137,087 

 

$
251 

 

$
(182)

 

$
137,156 

Municipal bonds and notes

 

 
82,687 

 

 
62 

 

 
(34)

 

 
82,715 

U.S. government securities

 

 
799 

 

 

 -

 

 

 -

 

 
799 

U.S. government agency securities

 

 
105,050 

 

 
55 

 

 
(9)

 

 
105,096 

 

 

$
325,623 

 

$
368 

 

$
(225)

 

$
325,766 

 

Long-term investments consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2012

 

Cost

 

Gains

 

Losses

 

Fair Value

Corporate bonds and notes

 

$
228,438 

 

$
1,063 

 

$
(60)

 

$
229,441 

Municipal bonds and notes

 

 
30,177 

 

 
138 

 

 
(8)

 

 
30,307 

Auction rate securities

 

 
5,000 

 

 

 -

 

 
(250)

 

 
4,750 

U.S. government securities

 

 
4,983 

 

 
12 

 

 

 -

 

 
4,995 

U.S. government agency securities

 

 
392,959 

 

 
389 

 

 
(38)

 

 
393,310 

 

 

$
661,557 

 

$
1,602 

 

$
(356)

 

$
662,803 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2011

 

Cost

 

Gains

 

Losses

 

Fair Value

Corporate bonds and notes

 

$
141,315 

 

$
415 

 

$
(580)

 

$
141,150 

Municipal bonds and notes

 

 
30,575 

 

 
151 

 

 
(12)

 

 
30,714 

Auction rate securities

 

 
15,000 

 

 

 -

 

 
(1,990)

 

 
13,010 

U.S. government agency securities

 

 
285,334 

 

 
164 

 

 
(169)

 

 
285,329 

 

 

$
472,224 

 

$
730 

 

$
(2,751)

 

$
470,203 

 

The amortized cost and fair value of fixed maturities at September 30, 2012, by contractual years-to-maturity, are presented below (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

 

 

 

 

Amortized

 

 

 

 

 

Cost

 

Fair Value

One year or less

 

$
320,457 

 

$
320,970 

Over one year

 

 
661,557 

 

 
662,803 

 

 

$
982,014 

 

$
983,773 

 

 

The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of September 30, 2012 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than 12 Months

 

12 Months or Greater

 

Total

 

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

September 30, 2012

 

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

Corporate bonds and notes

 

$
57,946 

 

$
(98)

 

$
3,510 

 

$
(2)

 

$
61,456 

 

$
(100)

Municipal bonds and notes

 

 
16,310 

 

 
(18)

 

 

 -

 

 

 -

 

 
16,310 

 

 
(18)

Auction rate securities

 

 

 -

 

 

 -

 

 
4,750 

 

 
(250)

 

 
4,750 

 

 
(250)

U.S. government agency securities

 

 
80,898 

 

 
(38)

 

 

 -

 

 

 -

 

 
80,898 

 

 
(38)

Total

 

$
155,154 

 

$
(154)

 

$
8,260 

 

$
(252)

 

$
163,414 

 

$
(406)

 

The Company invests in securities that are rated investment grade or better. The unrealized losses on investments for fiscal year 2012 were primarily caused by reductions in the values of the ARS due to the illiquid markets and were partially offset by unrealized gains related to interest rate decreases.

ARS are variable-rate debt securities. The Company limits its investments in ARS to securities that carry an AAA/A- (or equivalent) rating from recognized rating agencies and limits the amount of credit exposure to any one issuer. At the time of the Company’s initial investment and at the date of this report, all ARS were in compliance with the Company’s investment policy. In the past, the auction process allowed investors to obtain immediate liquidity if so desired by selling the securities at their face amounts. Liquidity for these securities has historically been provided by an auction process that resets interest rates on these investments on average every 7-35 days. However, as has been reported in the financial press, the disruptions in the credit markets adversely affected the auction market for these types of securities.


Short-Term And Long-Term Investments (Tables)
v0.0.0.0
Short-Term And Long-Term Investments (Tables)
 12 Months Ended
Sep. 30, 2012
Schedule of Investments [Line Items]  
Schedule Of Amortized Cost And Fair Value Of Fixed Maturities By Contractual Years-To-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

 

 

 

 

Amortized

 

 

 

 

 

Cost

 

Fair Value

One year or less

 

$
320,457 

 

$
320,970 

Over one year

 

 
661,557 

 

 
662,803 

 

 

$
982,014 

 

$
983,773 

 

Schedule Of Investments That Have Been In A Continuous Unrealized Loss Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than 12 Months

 

12 Months or Greater

 

Total

 

 

 

 

 

Gross

 

 

 

 

Gross

 

 

 

 

Gross

 

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

September 30, 2012

 

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

Corporate bonds and notes

 

$
57,946 

 

$
(98)

 

$
3,510 

 

$
(2)

 

$
61,456 

 

$
(100)

Municipal bonds and notes

 

 
16,310 

 

 
(18)

 

 

 -

 

 

 -

 

 
16,310 

 

 
(18)

Auction rate securities

 

 

 -

 

 

 -

 

 
4,750 

 

 
(250)

 

 
4,750 

 

 
(250)

U.S. government agency securities

 

 
80,898 

 

 
(38)

 

 

 -

 

 

 -

 

 
80,898 

 

 
(38)

Total

 

$
155,154 

 

$
(154)

 

$
8,260 

 

$
(252)

 

$
163,414 

 

$
(406)

 

Short-Term Investments [Member]
  
Schedule of Investments [Line Items]  
Schedule Of Short-Term And Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2012

 

Cost

 

Gains

 

Losses

 

Fair Value

Certificates of deposit

 

$
3,528 

 

$
5 

 

$

 -

 

$
3,533 

Corporate bonds and notes

 

 
193,548 

 

 
482 

 

 
(40)

 

 
193,990 

Municipal bonds and notes

 

 
63,371 

 

 
61 

 

 
(10)

 

 
63,422 

U.S. government agency securities

 

 
60,010 

 

 
15 

 

 

 -

 

 
60,025 

 

 

$
320,457 

 

$
563 

 

$
(50)

 

$
320,970 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2011

 

Cost

 

Gains

 

Losses

 

Fair Value

Corporate bonds and notes

 

$
137,087 

 

$
251 

 

$
(182)

 

$
137,156 

Municipal bonds and notes

 

 
82,687 

 

 
62 

 

 
(34)

 

 
82,715 

U.S. government securities

 

 
799 

 

 

 -

 

 

 -

 

 
799 

U.S. government agency securities

 

 
105,050 

 

 
55 

 

 
(9)

 

 
105,096 

 

 

$
325,623 

 

$
368 

 

$
(225)

 

$
325,766 

 

Long-Term Investments [Member]
  
Schedule of Investments [Line Items]  
Schedule Of Short-Term And Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2012

 

Cost

 

Gains

 

Losses

 

Fair Value

Corporate bonds and notes

 

$
228,438 

 

$
1,063 

 

$
(60)

 

$
229,441 

Municipal bonds and notes

 

 
30,177 

 

 
138 

 

 
(8)

 

 
30,307 

Auction rate securities

 

 
5,000 

 

 

 -

 

 
(250)

 

 
4,750 

U.S. government securities

 

 
4,983 

 

 
12 

 

 

 -

 

 
4,995 

U.S. government agency securities

 

 
392,959 

 

 
389 

 

 
(38)

 

 
393,310 

 

 

$
661,557 

 

$
1,602 

 

$
(356)

 

$
662,803 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost or

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2011

 

Cost

 

Gains

 

Losses

 

Fair Value

Corporate bonds and notes

 

$
141,315 

 

$
415 

 

$
(580)

 

$
141,150 

Municipal bonds and notes

 

 
30,575 

 

 
151 

 

 
(12)

 

 
30,714 

Auction rate securities

 

 
15,000 

 

 

 -

 

 
(1,990)

 

 
13,010 

U.S. government agency securities

 

 
285,334 

 

 
164 

 

 
(169)

 

 
285,329 

 

 

$
472,224 

 

$
730 

 

$
(2,751)

 

$
470,203 

 


Short-Term And Long-Term Investments (Schedule Of Short-Term And Long-Term Investments) (Details)
v0.0.0.0
Short-Term And Long-Term Investments (Schedule Of Short-Term And Long-Term Investments) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Schedule of Investments [Line Items]    
Cost or Amortized Cost $ 982,014  
Fair Value 983,773  
Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 320,457 325,623
Gross Unrealized Gains 563 368
Gross Unrealized Losses (50) (225)
Fair Value 320,970 325,766
Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 661,557 472,224
Gross Unrealized Gains 1,602 730
Gross Unrealized Losses (356) (2,751)
Fair Value 662,803 470,203
Certificates Of Deposit [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 3,528  
Gross Unrealized Gains 5  
Fair Value 3,533  
Corporate Bonds And Notes [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 193,548 137,087
Gross Unrealized Gains 482 251
Gross Unrealized Losses (40) (182)
Fair Value 193,990 137,156
Corporate Bonds And Notes [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 228,438 141,315
Gross Unrealized Gains 1,063 415
Gross Unrealized Losses (60) (580)
Fair Value 229,441 141,150
Municipal Bonds And Notes [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 63,371 82,687
Gross Unrealized Gains 61 62
Gross Unrealized Losses (10) (34)
Fair Value 63,422 82,715
Municipal Bonds And Notes [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 30,177 30,575
Gross Unrealized Gains 138 151
Gross Unrealized Losses (8) (12)
Fair Value 30,307 30,714
Auction Rate Securities [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 5,000 15,000
Gross Unrealized Losses (250) (1,990)
Fair Value 4,750 13,010
U.S. Government Securities [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost   799
Fair Value   799
U.S. Government Securities [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 4,983  
Gross Unrealized Gains 12  
Fair Value 4,995  
U.S. Government Agency Securities [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 60,010 105,050
Gross Unrealized Gains 15 55
Gross Unrealized Losses   (9)
Fair Value 60,025 105,096
U.S. Government Agency Securities [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 392,959 285,334
Gross Unrealized Gains 389 164
Gross Unrealized Losses (38) (169)
Fair Value $ 393,310 $ 285,329

Short-Term And Long-Term Investments (Schedule Of Amortized Cost And Fair Value Of Fixed Maturities By Contractual Years-To-Maturity) (Details)
v0.0.0.0
Short-Term And Long-Term Investments (Schedule Of Amortized Cost And Fair Value Of Fixed Maturities By Contractual Years-To-Maturity) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Short-Term And Long-Term Investments [Abstract]  
Cost or Amortized Cost, Fixed Maturities, One year or less $ 320,457
Cost or Amortized Cost, Fixed Maturities, Over one year 661,557
Cost or Amortized Cost 982,014
Fair Value, Fixed Maturities, One year or less 320,970
Fair Value, Fixed Maturities, Over one year 662,803
Fair Value $ 983,773

Short-Term And Long-Term Investments (Schedule Of Investments That Have Been In A Continuous Unrealized Loss Position) (Details)
v0.0.0.0
Short-Term And Long-Term Investments (Schedule Of Investments That Have Been In A Continuous Unrealized Loss Position) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months $ 155,154
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 8,260
Fair Value, Continuous Loss Position, Unrealized Loss, Total 163,414
Gross Unrealized Losses, Continuous Loss Position, Less Than 12 Months (154)
Gross Unrealized Losses, Continuous Loss Position, 12 Months or Greater (252)
Gross Unrealized Losses, Continuous Loss Position, Total (406)
Corporate Bonds And Notes [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months 57,946
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 3,510
Fair Value, Continuous Loss Position, Unrealized Loss, Total 61,456
Gross Unrealized Losses, Continuous Loss Position, Less Than 12 Months (98)
Gross Unrealized Losses, Continuous Loss Position, 12 Months or Greater (2)
Gross Unrealized Losses, Continuous Loss Position, Total (100)
Municipal Bonds And Notes [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months 16,310
Fair Value, Continuous Loss Position, Unrealized Loss, Total 16,310
Gross Unrealized Losses, Continuous Loss Position, Less Than 12 Months (18)
Gross Unrealized Losses, Continuous Loss Position, Total (18)
Auction Rate Securities [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 4,750
Fair Value, Continuous Loss Position, Unrealized Loss, Total 4,750
Gross Unrealized Losses, Continuous Loss Position, 12 Months or Greater (250)
Gross Unrealized Losses, Continuous Loss Position, Total (250)
U.S. Government Agency Securities [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months 80,898
Fair Value, Continuous Loss Position, Unrealized Loss, Total 80,898
Gross Unrealized Losses, Continuous Loss Position, Less Than 12 Months (38)
Gross Unrealized Losses, Continuous Loss Position, Total $ (38)
Minimum [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Liquidity days for the securities provided by auction process 7 days
Maximum [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Liquidity days for the securities provided by auction process 35 days

Business Combinations
v0.0.0.0
Business Combinations
 12 Months Ended
Sep. 30, 2012
Business Combinations [Abstract]  
Business Combinations

4. Business Combinations  

The Company’s acquisitions are accounted for under the acquisition method. The total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. The fair value assigned to the tangible and intangible assets acquired and liabilities assumed are based on estimates and assumptions provided by management. Goodwill is not amortized but instead is tested for impairment at least annually, as described in Note 1.  

Fiscal Year 2012 Acquisition of Traffix Communication Systems Ltd.  

On February 22, 2012, the Company acquired all issued and outstanding shares of Traffix Communication Systems Ltd. and subsidiaries (Traffix Systems), a privately held Israeli corporation headquartered in Hod HaSharon, Israel for $133.7 million in cash. Direct transaction costs associated with the acquisition were approximately $0.8 million and were expensed in the second quarter of fiscal 2012. Traffix Systems provides Diameter signaling products for telecommunications service providers. The Company expects to advance its competitive advantage in the worldwide marketplace by leveraging Traffix System’s signaling processing technology and general expertise and the Company’s own data routing technology. As a result of the acquisition, the Company acquired all the assets of Traffix Systems, all property, equipment and other assets that Traffix Systems used in its business and assumed all the liabilities of Traffix Systems. The results of operations of Traffix Systems have been included in the Company’s consolidated financial statements from the date of acquisition. Pro forma results of operations for this acquisition have not been presented as this transaction is not considered a material acquisition and the effects were not material to the Company’s financial results for the year ended September 30, 2012.  

The purchase price allocation is as follows (in thousands):  

  

 

 

 

 

 

Assets acquired 

  

 

 

 

Cash............................................................................................................................................................................................. 

  

$

5,388

  

Fair value of current assets.............................................................................................................................................. 

  

 

1,123

  

Property and equipment, net............................................................................................................................................. 

  

 

406

  

Developed technology, customer relationships and other intangibles........................................................... 

  

 

17,624

  

Goodwill....................................................................................................................................................................................... 

  

 

113,210

  

  

  

 

 

 

 

  

Total assets acquired............................................................................................................................................................ 

  

$

137,751

  

  

  

 

 

 

 

  

Liabilities assumed 

  

 

 

 

Accrued liabilities.................................................................................................................................................................... 

  

$

(3,627

) 

Deferred revenue................................................................................................................................................................... 

  

 

(402

) 

  

  

 

 

 

 

  

Total liabilities assumed....................................................................................................................................................... 

  

 

(4,029

) 

  

  

 

 

 

 

  

Net assets acquired.............................................................................................................................................................. 

  

$

133,722

  

  

  

 

 

 

 

  

Of the total estimated purchase price, $14.9 million was allocated to developed technology, and $2.7 million to customer relationships and other intangibles. To determine the value of developed technology, the income approach was used, which included estimates and assumptions provided by Traffix Systems and Company management, which are considered those of a market participant. The income approach estimates the fair value of an asset based on its earnings and cash flow capacity. A combination of the income and cost approaches were used to determine the fair value of customer relationships and other intangibles. The cost approach requires an estimation of the costs required by a market participant to reproduce the asset. Goodwill generated from this transaction is primarily related to expected synergies of the technology and expanded opportunities within the telecommunications industry. The purchase price of Traffix is anticipated to be recovered for Israeli tax purposes through amortization deductions over a five year period beginning in the year after the year in which the acquisition was accomplished. The amortization of the purchase price for Israeli tax purposes is contingent upon receiving necessary rulings from the Israeli Office of Chief Scientist and the Israeli Tax Authority.  

Developed technology will be amortized on a straight-line basis over its estimated useful life of five years and included in cost of net product revenues. Customer relationships will be amortized on a straight-line basis over its estimated useful life of ten years and included in general and administrative expenses. The weighted average life of the amortizable intangible assets recognized from the Traffix acquisition was 5.7 years. The estimated useful lives for the acquired intangible assets were based on the expected future cash flows associated with the respective asset.  

The fair value of replacement stock-based compensation awards issued by the Company attributable to precombination services was immaterial and has not been reflected in the consideration transferred.  


Business Combinations (Tables)
v0.0.0.0
Business Combinations (Tables)
 12 Months Ended
Sep. 30, 2012
Business Combinations [Abstract]  
Schedule Of Purchase Price Allocation

 

 

 

 

 

Assets acquired 

  

 

 

 

Cash............................................................................................................................................................................................. 

  

$

5,388

  

Fair value of current assets.............................................................................................................................................. 

  

 

1,123

  

Property and equipment, net............................................................................................................................................. 

  

 

406

  

Developed technology, customer relationships and other intangibles........................................................... 

  

 

17,624

  

Goodwill....................................................................................................................................................................................... 

  

 

113,210

  

  

  

 

 

 

 

  

Total assets acquired............................................................................................................................................................ 

  

$

137,751

  

  

  

 

 

 

 

  

Liabilities assumed 

  

 

 

 

Accrued liabilities.................................................................................................................................................................... 

  

$

(3,627

) 

Deferred revenue................................................................................................................................................................... 

  

 

(402

) 

  

  

 

 

 

 

  

Total liabilities assumed....................................................................................................................................................... 

  

 

(4,029

) 

  

  

 

 

 

 

  

Net assets acquired.............................................................................................................................................................. 

  

$

133,722

  

  

  

 

 

 

 

  

 


Business Combinations (Narrative) (Details)
v0.0.0.0
Business Combinations (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
 0 Months Ended 12 Months Ended
Feb. 22, 2012
Sep. 30, 2012
Traffix Systems [Member]
    
Business Acquisition [Line Items]    
Business acquisition, cash paid $ 133.7  
Business acquisition, transaction costs 0.8  
Amortization deduction period for acquisition purchase price recovery 5 years  
Amortization period   5 years 8 months 12 days
Developed Technology Rights [Member]
    
Business Acquisition [Line Items]    
Estimated purchase price 14.9  
Amortization period   5 years
Customer Relationships [Member]
    
Business Acquisition [Line Items]    
Estimated purchase price $ 2.7  
Amortization period   10 years

Business Combinations (Schedule Of Purchase Price Allocation) (Details)
v0.0.0.0
Business Combinations (Schedule Of Purchase Price Allocation) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Business Combinations [Abstract]  
Cash $ 5,388
Fair value of current assets 1,123
Property and equipment, net 406
Developed technology, customer relationships and other intangibles 17,624
Goodwill 113,210
Total assets acquired 137,751
Accrued liabilities (3,627)
Deferred revenue (402)
Total liabilities assumed (4,029)
Net assets acquired $ 133,722

Balance Sheet Details
v0.0.0.0
Balance Sheet Details
 12 Months Ended
Sep. 30, 2012
Balance Sheet Details [Abstract]  
Balance Sheet Details

 5.  Balance Sheet Details

Other Assets

Other assets consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Acquired and developed technology and software development cost

 

$
18,129 

 

$
8,520 

Deposits and other

 

 
10,688 

 

 
8,540 

Restricted cash

 

 
179 

 

 
162 

 

 

$
28,996 

 

$
17,222 

 

 

Amortization expense related to other assets was approximately $6.4 million, $4.3 million, and $6.0 million for the fiscal years ended September 30, 2012, 2011 and 2010, respectively.

Changes in the carrying amount of Goodwill during fiscal years 2012 and 2011 are summarized as follows (in thousands): 

 

 

 

 

 

 

 

 

  

 

 

 

 

Balance, September 30, 2010 

 

 

 

 

$

234,700

Other 

 

 

 

 

 

(9)

Balance, September 30, 2011 

 

 

 

 

 

234,691

Acquisition of Traffix Systems 

 

 

 

 

 

113,210

Other 

 

 

 

 

 

338

Balance, September 30, 2012 

 

 

 

 

$

348,239

 

Intangible assets consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

 

Gross

 

 

 

 

 

Gross

 

 

 

 

 

 

Carrying

 

Accumulated

 

Net Carrying

 

Carrying

 

Accumulated

 

Net Carrying

 

 

Amount

 

Amortization

 

Amount

 

Amount

 

Amortization

 

Amount

Acquired and developed technology and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

software development cost

 

$
54,240 

 

$
(36,111)

 

$
18,129 

 

$
39,109 

 

$
(30,589)

 

$
8,520 

Customer relationships

 

 
5,379 

 

 
(2,855)

 

 
2,524 

 

 
2,699 

 

 
(2,314)

 

 
385 

Patents and trademarks

 

 
3,044 

 

 
(2,464)

 

 
580 

 

 
3,044 

 

 
(2,214)

 

 
830 

Trade names

 

 
263 

 

 
(218)

 

 
45 

 

 
200 

 

 
(163)

 

 
37 

Non-compete covenants

 

 
200 

 

 
(200)

 

 

 -

 

 
200 

 

 
(200)

 

 

 -

 

 

$
63,126 

 

$
(41,848)

 

$
21,278 

 

$
45,252 

 

$
(35,480)

 

$
9,772 

 

 

Estimated amortization expense for intangible assets for the five succeeding fiscal years is as follows (in thousands):

 

 

 

 

 

 

 

 

2013

 

$
4,260 

2014

 

 
4,174 

2015

 

 
4,161 

2016

 

 
4,161 

2017

 

 
2,395 

 

 

$
19,151 

 

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Payroll and benefits

 

$
61,720 

 

$
47,824 

Sales and marketing

 

 
4,407 

 

 
5,062 

Income tax accruals

 

 
8,621 

 

 
4,860 

Other

 

 
11,661 

 

 
10,156 

 

 

$
86,409 

 

$
67,902 

 

 


Balance Sheet Details (Tables)
v0.0.0.0
Balance Sheet Details (Tables)
 12 Months Ended
Sep. 30, 2012
Balance Sheet Details [Abstract]  
Schedule Of Other Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Acquired and developed technology and software development cost

 

$
18,129 

 

$
8,520 

Deposits and other

 

 
10,688 

 

 
8,540 

Restricted cash

 

 
179 

 

 
162 

 

 

$
28,996 

 

$
17,222 

 

Schedule Of Goodwill

 

 

 

 

 

 

 

  

 

 

 

 

Balance, September 30, 2010 

 

 

 

 

$

234,700

Other 

 

 

 

 

 

(9)

Balance, September 30, 2011 

 

 

 

 

 

234,691

Acquisition of Traffix Systems 

 

 

 

 

 

113,210

Other 

 

 

 

 

 

338

Balance, September 30, 2012 

 

 

 

 

$

348,239

 

Schedule Of Intangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

 

Gross

 

 

 

 

 

Gross

 

 

 

 

 

 

Carrying

 

Accumulated

 

Net Carrying

 

Carrying

 

Accumulated

 

Net Carrying

 

 

Amount

 

Amortization

 

Amount

 

Amount

 

Amortization

 

Amount

Acquired and developed technology and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

software development cost

 

$
54,240 

 

$
(36,111)

 

$
18,129 

 

$
39,109 

 

$
(30,589)

 

$
8,520 

Customer relationships

 

 
5,379 

 

 
(2,855)

 

 
2,524 

 

 
2,699 

 

 
(2,314)

 

 
385 

Patents and trademarks

 

 
3,044 

 

 
(2,464)

 

 
580 

 

 
3,044 

 

 
(2,214)

 

 
830 

Trade names

 

 
263 

 

 
(218)

 

 
45 

 

 
200 

 

 
(163)

 

 
37 

Non-compete covenants

 

 
200 

 

 
(200)

 

 

 -

 

 
200 

 

 
(200)

 

 

 -

 

 

$
63,126 

 

$
(41,848)

 

$
21,278 

 

$
45,252 

 

$
(35,480)

 

$
9,772 

 

Schedule Of Estimated Amortization Expense For Intangible Assets

 

 

 

 

 

 

 

 

2013

 

$
4,260 

2014

 

 
4,174 

2015

 

 
4,161 

2016

 

 
4,161 

2017

 

 
2,395 

 

 

$
19,151 

 

Schedule Of Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

2012

 

2011

Payroll and benefits

 

$
61,720 

 

$
47,824 

Sales and marketing

 

 
4,407 

 

 
5,062 

Income tax accruals

 

 
8,621 

 

 
4,860 

Other

 

 
11,661 

 

 
10,156 

 

 

$
86,409 

 

$
67,902 

 


Balance Sheet Details (Schedule Of Other Assets) (Details)
v0.0.0.0
Balance Sheet Details (Schedule Of Other Assets) (Details) (USD $)
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Balance Sheet Details [Abstract]      
Acquired and developed technology and software development cost $ 18,129,000 $ 8,520,000  
Deposits and other 10,688,000 8,540,000  
Restricted cash 179,000 162,000  
Other assets 28,996,000 17,222,000  
Amortization expense related to other assets $ 6,400,000 $ 4,300,000 $ 6,000,000

Balance Sheet Details (Schedule Of Goodwill) (Details)
v0.0.0.0
Balance Sheet Details (Schedule Of Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Goodwill, Beginning Balance $ 234,691 $ 234,700
Other 338 (9)
Goodwill, Ending Balance 348,239 234,691
Traffix Systems [Member]
    
Acquisition $ 113,210  

Balance Sheet Details (Schedule Of Intangible Assets) (Details)
v0.0.0.0
Balance Sheet Details (Schedule Of Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 63,126 $ 45,252
Accumulated Amortization (41,848) (35,480)
Net Carrying Amount 21,278 9,772
Acquired And Developed Technology And Software Development Cost [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 54,240 39,109
Accumulated Amortization (36,111) (30,589)
Net Carrying Amount 18,129 8,520
Customer Relationships [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 5,379 2,699
Accumulated Amortization (2,855) (2,314)
Net Carrying Amount 2,524 385
Patents And Trademarks [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,044 3,044
Accumulated Amortization (2,464) (2,214)
Net Carrying Amount 580 830
Trade Names [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 263 200
Accumulated Amortization (218) (163)
Net Carrying Amount 45 37
Non-Compete Covenants [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 200 200
Accumulated Amortization $ (200) $ (200)

Balance Sheet Details (Schedule Of Estimated Amortization Expense For Intangible Assets) (Details)
v0.0.0.0
Balance Sheet Details (Schedule Of Estimated Amortization Expense For Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Balance Sheet Details [Abstract]  
2013 $ 4,260
2014 4,174
2015 4,161
2016 4,161
2017 2,395
Total estimated amortization expense $ 19,151

Balance Sheet Details (Schedule Of Accrued Liabilities) (Details)
v0.0.0.0
Balance Sheet Details (Schedule Of Accrued Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Balance Sheet Details [Abstract]    
Payroll and benefits $ 61,720 $ 47,824
Sales and marketing 4,407 5,062
Income tax accruals 8,621 4,860
Other 11,661 10,156
Total accrued liabilities $ 86,409 $ 67,902

Income Taxes
v0.0.0.0
Income Taxes
 12 Months Ended
Sep. 30, 2012
Income Taxes [Abstract]  
Income Taxes

6.  Income Taxes

The United States and international components of income before income taxes are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

United States

 

$
421,346 

 

$
342,741 

 

$
225,698 

International

 

 
10,868 

 

 
18,010 

 

 
11,929 

 

 

$
432,214 

 

$
360,751 

 

$
237,627 

 

The provision for income taxes (benefit) consists of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Current

 

 

 

 

 

 

 

 

 

U.S. federal

 

$
147,774 

 

$
103,620 

 

$
79,802 

State

 

 
10,733 

 

 
7,397 

 

 
4,722 

Foreign

 

 
4,218 

 

 
5,743 

 

 
3,230 

Total

 

 
162,725 

 

 
116,760 

 

 
87,754 

Deferred

 

 

 

 

 

 

 

 

 

U.S. federal

 

 
(7,320)

 

 
3,070 

 

 
(2,049)

State

 

 
187 

 

 
(144)

 

 
(1,091)

Foreign

 

 
1,436 

 

 
(332)

 

 
1,860 

Total

 

 
(5,697)

 

 
2,594 

 

 
(1,280)

 

 

$
157,028 

 

$
119,354 

 

$
86,474 

 

The effective tax rate differs from the U.S. federal statutory rate as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Income tax provision at statutory rate

 

$
151,275 

 

$
126,263 

 

$
83,170 

State taxes, net of federal benefit

 

 
9,223 

 

 
5,999 

 

 
2,871 

Impact of foreign income taxes

 

 
1,850 

 

 
(892)

 

 
915 

Research and development and other credits

 

 
(2,401)

 

 
(5,486)

 

 
(2,124)

Domestic manufacturing deduction

 

 
(13,657)

 

 
(9,844)

 

 
(3,766)

Impact of stock-based compensation

 

 
7,807 

 

 
5,310 

 

 
2,825 

Other

 

 
2,931 

 

 
(1,996)

 

 
2,583 

 

 

$
157,028 

 

$
119,354 

 

$
86,474 

 

The tax effects of the temporary differences that give rise to the deferred tax assets and liabilities are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

Deferred tax assets

 

 

 

 

 

 

Net operating loss carry-forwards

 

$
1,366 

 

$
452 

Allowance for doubtful accounts

 

 
1,106 

 

 
898 

Accrued compensation and benefits

 

 
6,371 

 

 
4,879 

Inventories and related reserves

 

 
1,223 

 

 
1,564 

Stock-based compensation

 

 
11,713 

 

 
8,969 

Deferred revenue

 

 
23,372 

 

 
19,400 

Other accruals and reserves

 

 
9,594 

 

 
9,629 

Depreciation

 

 

 -

 

 
1,403 

Tax credit carry-forwards

 

 
793 

 

 
1,657 

 

 

 
55,538 

 

 
48,851 

Valuation allowance

 

 
(208)

 

 

 -

Deferred tax liabilities

 

 

 

 

 

 

Purchased intangibles and other

 

 
(6,329)

 

 
(5,698)

Depreciation

 

 
(3,161)

 

 

 -

 

 

 
(9,490)

 

 
(5,698)

Net deferred tax assets 

 

$
45,840 

 

$
43,153 

 

At September 30, 2012, the Company had net operating loss carry-forwards of approximately $13.6 million, gross.   All net operating loss carry-forwards relate to Traffix Communication Systems Ltd., an Israeli entity acquired by the Company during the second quarter of fiscal year 2012. These operating losses carry-forward indefinitely.

United States income and foreign withholding taxes have not been provided on approximately $24.3 million of undistributed earnings from the Company’s international subsidiaries. The Company has not recognized a deferred tax liability for the undistributed earnings of its foreign subsidiaries because the Company currently does not expect to remit those earnings in the foreseeable future. Determination of the amount of unrecognized deferred tax liability related to undistributed earnings of foreign subsidiaries is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs.

The increase in the effective tax rate from fiscal year 2011 to fiscal year 2012 was primarily due to an to the expiration of the United States federal credit for Increasing Research Activities at December 31, 2011 and an increase in nondeductible stock-based compensation attributable to foreign based employees. 

  

The Company recognizes the financial statement impact of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest impact that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant tax authority. 

 

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits in fiscal years 2012, 2011 and 2010:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2010

Balance, beginning of period

 

$
5,952 

 

$
6,568 

 

$
5,841 

Gross (decreases) increases related to prior period tax positions

 

 
(201)

 

 
1,198 

 

 
442 

Gross increases related to current period tax positions

 

 
702 

 

 
1,659 

 

 
432 

Decreases relating to settlements with tax authorities

 

 
(3)

 

 
(243)

 

 

—  

Reductions due to lapses of statute of limitations

 

 
(998)

 

 
(3,230)

 

 
(147)

Balance, end of period

 

$
5,452 

 

$
5,952 

 

$
6,568 

 

The Company recognizes interest and, if applicable, penalties (not included in the “unrecognized tax benefits” table above) for any uncertain tax positions. This interest and penalty expense will be a component of income tax expense. In the years ended September 30, 2012, 2011 and 2010 the Company accrued approximately $250,000, $283,000 and $390,000, respectively, of interest expense related to its liability for unrecognized tax benefits. No penalties were recognized in fiscal years 2012, 2011 and 2010 or accrued for at September 30, 2012, 2011 and 2010.  

All unrecognized tax benefits, if recognized, would affect the effective tax rate. The Company does not anticipate that total unrecognized tax benefits will significantly change within the next twelve months.

The Company and its subsidiaries are subject to U.S. federal income tax as well as the income tax of multiple state and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for fiscal years through September 30, 2008. Major jurisdictions where there are wholly owned subsidiaries of F5 Networks, Inc. which require income tax filings include the United Kingdom, Japan, Australia and Germany. The earliest periods open for review by these local taxing authorities are fiscal years 2010 for the United Kingdom and Japan, and 2007 for Australia and Germany. Within the next four fiscal quarters, the statute of limitations will begin to close on the fiscal years ended 2008 and 2009 tax returns filed in various states and the fiscal year ended 2009 federal income tax return. 


Income Taxes (Tables)
v0.0.0.0
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2012
Income Taxes [Abstract]  
Components Of Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

United States

 

$
421,346 

 

$
342,741 

 

$
225,698 

International

 

 
10,868 

 

 
18,010 

 

 
11,929 

 

 

$
432,214 

 

$
360,751 

 

$
237,627 

 

Schedule Of Provision For Income Taxes (Benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Current

 

 

 

 

 

 

 

 

 

U.S. federal

 

$
147,774 

 

$
103,620 

 

$
79,802 

State

 

 
10,733 

 

 
7,397 

 

 
4,722 

Foreign

 

 
4,218 

 

 
5,743 

 

 
3,230 

Total

 

 
162,725 

 

 
116,760 

 

 
87,754 

Deferred

 

 

 

 

 

 

 

 

 

U.S. federal

 

 
(7,320)

 

 
3,070 

 

 
(2,049)

State

 

 
187 

 

 
(144)

 

 
(1,091)

Foreign

 

 
1,436 

 

 
(332)

 

 
1,860 

Total

 

 
(5,697)

 

 
2,594 

 

 
(1,280)

 

 

$
157,028 

 

$
119,354 

 

$
86,474 

 

Schedule Of Effective Tax Rate Differs From The U.S. Federal Statutory Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Income tax provision at statutory rate

 

$
151,275 

 

$
126,263 

 

$
83,170 

State taxes, net of federal benefit

 

 
9,223 

 

 
5,999 

 

 
2,871 

Impact of foreign income taxes

 

 
1,850 

 

 
(892)

 

 
915 

Research and development and other credits

 

 
(2,401)

 

 
(5,486)

 

 
(2,124)

Domestic manufacturing deduction

 

 
(13,657)

 

 
(9,844)

 

 
(3,766)

Impact of stock-based compensation

 

 
7,807 

 

 
5,310 

 

 
2,825 

Other

 

 
2,931 

 

 
(1,996)

 

 
2,583 

 

 

$
157,028 

 

$
119,354 

 

$
86,474 

 

Schedule Of Tax Effects To Deferred Tax Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

Deferred tax assets

 

 

 

 

 

 

Net operating loss carry-forwards

 

$
1,366 

 

$
452 

Allowance for doubtful accounts

 

 
1,106 

 

 
898 

Accrued compensation and benefits

 

 
6,371 

 

 
4,879 

Inventories and related reserves

 

 
1,223 

 

 
1,564 

Stock-based compensation

 

 
11,713 

 

 
8,969 

Deferred revenue

 

 
23,372 

 

 
19,400 

Other accruals and reserves

 

 
9,594 

 

 
9,629 

Depreciation

 

 

 -

 

 
1,403 

Tax credit carry-forwards

 

 
793 

 

 
1,657 

 

 

 
55,538 

 

 
48,851 

Valuation allowance

 

 
(208)

 

 

 -

Deferred tax liabilities

 

 

 

 

 

 

Purchased intangibles and other

 

 
(6,329)

 

 
(5,698)

Depreciation

 

 
(3,161)

 

 

 -

 

 

 
(9,490)

 

 
(5,698)

Net deferred tax assets 

 

$
45,840 

 

$
43,153 

 

Schedule Of Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2010

Balance, beginning of period

 

$
5,952 

 

$
6,568 

 

$
5,841 

Gross (decreases) increases related to prior period tax positions

 

 
(201)

 

 
1,198 

 

 
442 

Gross increases related to current period tax positions

 

 
702 

 

 
1,659 

 

 
432 

Decreases relating to settlements with tax authorities

 

 
(3)

 

 
(243)

 

 

—  

Reductions due to lapses of statute of limitations

 

 
(998)

 

 
(3,230)

 

 
(147)

Balance, end of period

 

$
5,452 

 

$
5,952 

 

$
6,568 

 


Income Taxes (Narrative) (Details)
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Income Taxes (Narrative) (Details) (USD $)
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Income Taxes [Abstract]      
Operating loss carry-forwards, net $ 13,600,000    
Undistributed earnings from international subsidiaries 24,300,000    
Unrecognized tax benefits, interest expenses accrued $ 250,000 $ 283,000 $ 390,000

Income Taxes (Components Of Income Before Income Taxes) (Details)
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Income Taxes (Components Of Income Before Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Income Taxes [Abstract]                      
United States                 $ 421,346 $ 342,741 $ 225,698
International                 10,868 18,010 11,929
Income before income taxes $ 112,743 $ 111,713 $ 106,108 $ 101,650 $ 103,418 $ 90,150 $ 84,782 $ 82,401 $ 432,214 $ 360,751 $ 237,627

Income Taxes (Schedule Of Provision For Income Taxes (Benefit)) (Details)
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Income Taxes (Schedule Of Provision For Income Taxes (Benefit)) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Income Taxes [Abstract]                      
Current, U.S. federal                 $ 147,774 $ 103,620 $ 79,802
Current, State                 10,733 7,397 4,722
Current, Foreign                 4,218 5,743 3,230
Total                 162,725 116,760 87,754
Deferred, U.S. federal                 (7,320) 3,070 (2,049)
Deferred, State                 187 (144) (1,091)
Deferred, Foreign                 1,436 (332) 1,860
Total                 (5,697) 2,594 (1,280)
Income taxes (benefit) $ 45,026 $ 39,377 $ 37,467 $ 35,158 $ 35,808 $ 27,601 $ 29,207 $ 26,738 $ 157,028 $ 119,354 $ 86,474

Income Taxes (Schedule Of Effective Tax Rate Differs From The U.S. Federal Statutory Rate) (Details)
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Income Taxes (Schedule Of Effective Tax Rate Differs From The U.S. Federal Statutory Rate) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Income Taxes [Abstract]      
Income tax provision at statutory rate $ 151,275 $ 126,263 $ 83,170
State taxes, net of federal benefit 9,223 5,999 2,871
Impact of foreign income taxes 1,850 (892) 915
Research and development and other credits (2,401) (5,486) (2,124)
Domestic manufacturing deduction (13,657) (9,844) (3,766)
Impact of stock-based compensation 7,807 5,310 2,825
Other 2,931 (1,996) 2,583
Income taxes (benefit) $ 157,028 $ 119,354 $ 86,474

Income Taxes (Schedule Of Tax Effects To Deferred Tax Assets And Liabilities) (Details)
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Income Taxes (Schedule Of Tax Effects To Deferred Tax Assets And Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Income Taxes [Abstract]    
Net operating loss carry-forwards $ 1,366 $ 452
Allowance for doubtful accounts 1,106 898
Accrued compensation and benefits 6,371 4,879
Inventories and related reserves 1,223 1,564
Stock-based compensation 11,713 8,969
Deferred revenue 23,372 19,400
Other accruals and reserves 9,594 9,629
Depreciation   1,403
Tax credit carry-forwards 793 1,657
Total deferred tax assets before deferred liabilities 55,538 48,851
Valuation allowance (208)  
Purchased intangibles and other (6,329) (5,698)
Depreciation (3,161)  
Total deferred tax liabilities (9,490) (5,698)
Net deferred tax assets $ 45,840 $ 43,153

Income Taxes (Schedule Of Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details)
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Income Taxes (Schedule Of Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Income Taxes [Abstract]      
Balance, beginning of period $ 5,952 $ 6,568 $ 5,841
Gross (decreases) increases related to prior period tax positions (201) 1,198 442
Gross increases related to current period tax positions 702 1,659 432
Decreases relating to settlements with tax authorities (3) (243)  
Reductions due to lapses of statute of limitations (998) (3,230) (147)
Balance, end of period $ 5,452 $ 5,952 $ 6,568

Stock-Based Compensation
v0.0.0.0
Stock-Based Compensation
 12 Months Ended
Sep. 30, 2012
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

7.  Stock-based Compensation

The majority of awards consist of restricted stock units and to a lesser degree, stock options. Employees vest in restricted stock units and stock options ratably over the corresponding service term, generally one to four years. The Company’s stock options expire 10 years from the date of grant. Restricted stock units are payable in shares of the Company’s common stock as the periodic vesting requirements are satisfied. The value of a restricted stock unit is based upon the fair market value of the Company’s common stock on the date of grant. The value of restricted stock units is determined using the intrinsic value method and is based on the number of shares granted and the quoted price of the Company’s common stock on the date of grant. Alternatively, the Company used the Black-Scholes option pricing model to determine the fair value of its stock options. Compensation expense related to restricted stock units and stock options is recognized over the vesting period. The Company has adopted a number of stock-based compensation plans as discussed below.

1998 Equity Incentive Plan. In November 1998, the Company adopted the 1998 Equity Incentive Plan, or the 1998 Plan, which provided for discretionary grants of non-qualified and incentive stock options, stock purchase awards and stock bonuses for employees and other service providers. The 1998 Plan expired on November 11, 2008 and no shares remain available for awards under the 1998 Plan. Upon certain changes in control of the Company, all outstanding and unvested options or stock awards under the 1998 Plan will vest at the rate of 50%, unless assumed or substituted by the acquiring entity. During the fiscal years 2012 and 2011, the Company issued no stock options, stock purchase awards or stock bonuses under this plan. As of September 30, 2012, there were options to purchase 106,909 shares outstanding under the 1998 Plan.

2011 Employee Stock Purchase Plan. In April 2012, the board of directors amended and restated the Company’s 1999 Employee Stock Purchase Plan, or the Employee Stock Purchase Plan. A total of 6,000,000 shares of common stock have been reserved for issuance under the Employee Stock Purchase Plan. The Employee Stock Purchase Plan permits eligible employees to acquire shares of the Company’s common stock through periodic payroll deductions of up to 15% of base compensation. No employee may purchase more than 10,000 shares during an offering period. In addition, no employee may purchase more than  $25,000 worth of stock, determined by the fair market value of the shares at the time such option is granted, in one calendar year. The Employee Stock Purchase Plan has been implemented in a series of offering periods, each 6 months in duration. The price at which the common stock may be purchased is 85% of the lesser of the fair market value of the Company’s common stock on the first day of the applicable offering period or on the last day of the respective purchase period. As of September 30, 2012 there were 1,436,347 shares available for awards under the Employee Stock Purchase Plan.

2000 Equity Incentive Plan. In July 2000, the Company adopted the 2000 Employee Equity Incentive Plan, or the 2000 Plan, which provided for discretionary grants of non-qualified stock options, stock purchase awards and stock bonuses for non-executive employees and other service providers. A total of 7,000,000 shares of common stock were reserved for issuance under the 2000 Plan. Upon certain changes in control of the Company, all outstanding and unvested options or stock awards under the 2000 Plan will vest at the rate of 50%, unless assumed or substituted by the acquiring entity. As of September 30, 2012, there were options to purchase 88,784 shares outstanding and no shares available for awards under the 2000 Plan. The Company terminated the 2000 Plan effective November 1, 2008 and no additional shares may be issued from the 2000 Plan.

Acquisition Related Incentive Plans. In July 2003, the Company adopted the uRoam Acquisition Equity Incentive Plan, or the uRoam Plan, in connection with the hiring of the former employees of uRoam, Inc. A total of 500,000 shares of common stock were reserved for issuance under the uRoam Plan. The plan provided for discretionary grants of non-qualified and incentive stock options, stock purchase awards and stock bonuses. The Company has not granted any stock purchase awards or stock bonuses under this plan. As of September 30, 2012 there were options to purchase 1,650 shares outstanding and no shares available for additional awards under the uRoam Plan.

In July 2004, the Company adopted the MagniFire Acquisition Equity Incentive Plan, or the MagniFire Plan, in connection with the hiring of the former employees of MagniFire Websystems, Inc. A total of  830,000 shares of common stock were reserved for issuance under the MagniFire Plan. The plan provided for discretionary grants of non-qualified and incentive stock options, stock purchase awards and stock bonuses. The Company has not granted any stock purchase awards or stock bonuses under this plan. As of September 30, 2012 there were options to purchase 2,690 shares outstanding and no shares available for additional awards under the MagniFire Plan.  

In connection with the Company’s acquisition of Acopia in the fourth quarter of fiscal year 2007, the Company assumed the Acopia 2001 Stock Incentive Plan, or the Acopia Plan. Unvested options to acquire Acopia’s common stock were converted into options to acquire the Company’s common stock in connection with the acquisition. A total of 2,230,703 shares of common stock were reserved for issuance under the Acopia Plan. The plan provided for discretionary grants of non-qualified and incentive stock options, restricted stock awards and other stock-based awards to persons who were employees, officers, directors, consultants or advisors to Acopia on or prior to September 12, 2007. During the fiscal year 2012, the Company issued no stock options or restricted stock units under the Acopia Plan. As of September 30, 2012, there were options to purchase 20,617 shares outstanding and no shares available for awards under the Acopia Plan. The Company terminated the Acopia Plan effective November 1, 2008 and no additional shares may be issued from the Acopia Plan.

In February 2012, the Company adopted the Traffix Acquisition Equity Incentive Plan, or the Traffix Acquisition Plan. The Traffix Acquisition Plan provided for discretionary grants of non-statutory stock options and stock units for employees, directors and consultants of Traffix Communication Systems Ltd. to whom the Company offered employment in connection with the Company’s acquisition of Traffix. A total of 75,000 shares of common stock were reserved for issuance under the Traffix Acquisition Plan. Upon certain changes in control of the Company, the surviving entity will either assume or substitute all outstanding stock awards under the Traffix Acquisition Plan or the vesting of 50% of the stock awards shall be accelerated. During the fiscal year 2012, the Company issued no stock options and 53,358 restricted stock units under the Traffix Acquisition Plan. As of September 30, 2012, there were no stock options outstanding, 50,782 restricted stock units outstanding and no shares available for additional awards under the Traffix Acquisition Plan.  

In connection with the Company’s acquisition of Traffix Systems in the second quarter of fiscal year 2012, the Company assumed the Traffix 2007 Israeli Employee Share Option Plan, or the Traffix Plan. Unvested options to acquire Traffix’s common stock were converted into options to acquire the Company’s common stock in connection with the acquisition. A total of 106,829 shares of common stock were reserved for issuance under the Traffix Plan. The plan provided for grants of stock options to persons who were employees, officers, directors, consultants or advisors to Traffix on or prior to February 21, 2012. During the fiscal year 2012, the Company issued 74,347 stock options as part of such conversion under the Traffix Plan. As of September 30, 2012, there were options to purchase 63,824 shares outstanding and no shares available for additional awards under the Traffix Plan. 

2005 Equity Incentive Plan. In December 2004, the Company adopted the 2005 Equity Incentive Plan, or the 2005 Plan, which provides for discretionary grants of non-statutory stock options and stock units for employees, including officers, and other service providers. A total of 12,400,000 shares of common stock have been reserved for issuance under the 2005 Plan. Upon certain changes in control of the Company, all outstanding and unvested options or stock awards under the 2005 Plan will vest at the rate of 50%, unless assumed or substituted by the acquiring entity. During the fiscal year 2012, the Company issued no stock options and 1,189,299 restricted stock units under the 2005 Plan. As of September 30, 2012, there were no options outstanding,  1,717,444 restricted stock units outstanding and 2,422,360 shares available for new awards under the 2005 Plan.

A majority of the restricted stock units granted in fiscal years 2012, 2011 and 2010 vest quarterly over a two-year period. The restricted stock units were granted during fiscal years 2012, 2011 and 2010 with a per-share weighted average fair value of $99.63, $94.99 and $86.32, respectively. The fair value of restricted stock vested during fiscal years 2012, 2011 and 2010 was $93.8 million, $145.0 million and $116.4 million, respectively.

A summary of restricted stock unit activity under the 2005 Plan is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

Outstanding

 

Grant Date

 

 

Stock Units

 

Fair Value

Balance, September 30, 2011

 

 
1,456,686 

 

$
44.40 

Units granted

 

 
1,189,299 

 

 
98.10 

Units vested

 

 
(818,468)

 

 
112.74 

Units cancelled

 

 
(110,073)

 

 
91.16 

Balance, September 30, 2012

 

 
1,717,444 

 

$
46.02 

 

A summary of stock option activity under all of the Company’s plans is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Outstanding

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

Number of

 

Exercise Price

 

 

Shares

 

per Share

Balance, September 30, 2011

 

 
331,424 

 

$
12.66 

Options granted

 

 
74,347 

 

 
3.70 

Options exercised

 

 
(119,834)

 

 
9.43 

Options cancelled

 

 
(1,463)

 

 
2.51 

Balance, September 30, 2012

 

 
284,474 

 

$
11.73 

 

All stock options granted in fiscal year 2012 were assumed as part of the acquisition of Traffix Systems in the second fiscal quarter. No stock options were granted in fiscal years 2011 and 2010. 

The total intrinsic value of options exercised during fiscal 2012, 2011 and 2010 was $13.2 million, $15.2 million and $36.6 million, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

Weighted

 

 

 

 

 

 

 

Average

 

Average

 

 

 

 

 

 

 

Remaining

 

Exercise

 

Aggregate

 

 

Number of

 

Contractual

 

Price

 

Intrinsic

 

 

Shares

 

Life (in Years)

 

per Share

 

Value(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Stock options outstanding

 

 
284,474 

 

 
3.24 

 

$
11.73 

 

$
26,431 

Exercisable

 

 
229,715 

 

 
1.90 

 

$
13.61 

 

$
20,910 

Vested and expected to vest

 

 
278,541 

 

 
3.12 

 

$
11.90 

 

$
25,833 

 

(1)    Aggregate intrinsic value represents the difference between the fair value of the Company’s common stock underlying these options at September 30, 2012 and the related exercise prices.

As of September 30, 2012, equity based awards (including stock options and restricted stock units) are available for future issuance as follows:

 

 

 

 

 

 

 

 

 

 

Awards

 

 

Available for

 

 

Grant

Balance, September 30, 2011

 

 
3,501,586 

Granted

 

 
(1,317,004)

Cancelled

 

 
114,112 

Additional shares reserved (terminated), net

 

 
123,666 

Balance, September 30, 2012

 

 
2,422,360 

 

 


Stock-Based Compensation (Tables)
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Stock-Based Compensation (Tables)
 12 Months Ended
Sep. 30, 2012
Stock-Based Compensation [Abstract]  
Schedule Of Summary Of Restricted Stock Unit Activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

Outstanding

 

Grant Date

 

 

Stock Units

 

Fair Value

Balance, September 30, 2011

 

 
1,456,686 

 

$
44.40 

Units granted

 

 
1,189,299 

 

 
98.10 

Units vested

 

 
(818,468)

 

 
112.74 

Units cancelled

 

 
(110,073)

 

 
91.16 

Balance, September 30, 2012

 

 
1,717,444 

 

$
46.02 

 

Schedule Of Stock Option Activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Outstanding

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

Number of

 

Exercise Price

 

 

Shares

 

per Share

Balance, September 30, 2011

 

 
331,424 

 

$
12.66 

Options granted

 

 
74,347 

 

 
3.70 

Options exercised

 

 
(119,834)

 

 
9.43 

Options cancelled

 

 
(1,463)

 

 
2.51 

Balance, September 30, 2012

 

 
284,474 

 

$
11.73 

 

Schedule Of Outstanding Stock Options Currently Exercisable, Vested And Expected To Vest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

Weighted

 

 

 

 

 

 

 

Average

 

Average

 

 

 

 

 

 

 

Remaining

 

Exercise

 

Aggregate

 

 

Number of

 

Contractual

 

Price

 

Intrinsic

 

 

Shares

 

Life (in Years)

 

per Share

 

Value(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Stock options outstanding

 

 
284,474 

 

 
3.24 

 

$
11.73 

 

$
26,431 

Exercisable

 

 
229,715 

 

 
1.90 

 

$
13.61 

 

$
20,910 

Vested and expected to vest

 

 
278,541 

 

 
3.12 

 

$
11.90 

 

$
25,833 

 

(1)    Aggregate intrinsic value represents the difference between the fair value of the Company’s common stock underlying these options at September 30, 2012 and the related exercise prices.

Schedule Of Equity Based Awards (Including Stock Options And Restricted Stock Units)

 

 

 

 

 

 

 

 

 

 

Awards

 

 

Available for

 

 

Grant

Balance, September 30, 2011

 

 
3,501,586 

Granted

 

 
(1,317,004)

Cancelled

 

 
114,112 

Additional shares reserved (terminated), net

 

 
123,666 

Balance, September 30, 2012

 

 
2,422,360 

 


Stock-Based Compensation (Narrative) (Details)
v0.0.0.0
Stock-Based Compensation (Narrative) (Details) (USD $)
 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2012
1998 Equity Incentive Plan [Member]
Sep. 30, 2011
1998 Equity Incentive Plan [Member]
Sep. 30, 2012
2011 Employee Stock Purchase Plan [Member]
Sep. 30, 2012
2000 Equity Incentive Plan [Member]
Jul. 31, 2003
uRoam Acquisition Equity Incentive Plan [Member]
Sep. 30, 2012
MagniFire Acquisition Equity Incentive Plan [Member]
Jul. 31, 2004
MagniFire Acquisition Equity Incentive Plan [Member]
Sep. 30, 2012
Acopia Plan [Member]
Feb. 29, 2012
Traffix Plan [Member]
Sep. 30, 2012
Traffix Plan [Member]
Mar. 31, 2012
Traffix Plan [Member]
Sep. 30, 2012
2005 Equity Incentive Plan [Member]
Sep. 30, 2012
Stock Options [Member]
Sep. 30, 2012
Restricted Stock Unit [Member]
Sep. 30, 2011
Restricted Stock Unit [Member]
Sep. 30, 2010
Restricted Stock Unit [Member]
Sep. 30, 2012
Minimum [Member]
Restricted Stock Unit [Member]
Sep. 30, 2012
Maximum [Member]
Restricted Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                          
Annual equity awards program vesting period                                 2 years 2 years 2 years 1 year 4 years
Restricted stock units vesting period in years                                 2 years 2 years 2 years 1 year 4 years
Stock option expiration period from date of grant                               10 years          
Vesting rate of stock options and awards upon certain changes in ownership control       50.00%     50.00%         50.00%     50.00%            
Shares available for award                             2,422,360            
Stock options issued during period 74,347                       74,347                
Shares available for purchase under stock option plan 1,650       106,909 1,436,347 88,784   2,690   20,617   63,824                
Common stock reserved for issuance           6,000,000 7,000,000 500,000   830,000 2,230,703 75,000   106,829 12,400,000            
Percentage of base compensation for which employees can acquire shares of common stock           15.00%                              
Maximum shares allowed for purchase by employee in period           10,000                              
Maximum aggregate fair value of stock that an employee may purchase           $ 25,000                              
Share-based compensation award, offering period 6 months 6 months 6 months                                    
Percentage of common stock lesser of the fair market value           85.00%                              
Restricted stock units issued                             1,189,299            
Stock units issued                         53,358       1,189,299        
Outstanding stock units                         50,782   1,717,444   1,717,444 1,456,686      
Weighted average fair value of restricted stock units granted                                 $ 99.63 $ 94.99 $ 86.32    
Fair market value of restricted stock vested                                 93,800,000 145,000,000 116,400,000    
Total intrinsic value of options exercised $ 13,200,000 $ 15,200,000 $ 36,600,000                                    

Stock-Based Compensation (Schedule Of Summary Of Restricted Stock Unit Activity) (Details)
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Stock-Based Compensation (Schedule Of Summary Of Restricted Stock Unit Activity) (Details) (Restricted Stock Unit [Member], USD $)
 12 Months Ended
Sep. 30, 2012
Restricted Stock Unit [Member]
  
Schedule Of Summary Of Restricted Stock Unit Activity [Line Items]  
Outstanding Stock Units, Beginning balance 1,456,686
Outstanding Stock Units, Units granted 1,189,299
Outstanding Stock Units, Units vested (818,468)
Outstanding Stock Units, Units cancelled (110,073)
Outstanding Stock Units, Ending balance 1,717,444
Weighted Average Grant Date Fair Value, Beginning balance $ 44.40
Weighted Average Grant Date Fair Value, Units granted $ 98.10
Weighted Average Grant Date Fair Value, Units vested $ 112.74
Weighted Average Grant Date Fair Value, Units cancelled $ 91.16
Weighted Average Grant Date Fair Value, Ending balance $ 46.02

Stock-Based Compensation (Schedule Of Stock Option Activity) (Details)
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Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $)
 12 Months Ended
Sep. 30, 2012
Stock-Based Compensation [Abstract]  
Number of Shares, Beginning balance 331,424
Number of Shares, Options granted 74,347
Number of Shares, Options exercised (119,834)
Number of Shares, Options cancelled (1,463)
Number of Shares, Ending balance 284,474
Weighted Average Exercise Price per Share, Beginning balance $ 12.66
Weighted Average Exercise Price per Share, Options granted $ 3.70
Weighted Average Exercise Price per Share, Options exercised $ 9.43
Weighted Average Exercise Price per Share, Options cancelled $ 2.51
Weighted Average Exercise Price per Share, Ending balance $ 11.73

Stock-Based Compensation (Schedule Of Outstanding Stock Options Currently Exercisable, Vested And Expected To Vest) (Details)
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Stock-Based Compensation (Schedule Of Outstanding Stock Options Currently Exercisable, Vested And Expected To Vest) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Stock-Based Compensation [Abstract]    
Stock options outstanding 284,474 331,424
Stock options outstanding, Weighted Average Remaining Contractual Life (in Years) 3 years 2 months 27 days  
Stock options outstanding, Weighted Average Exercise Price per Share $ 11.73 $ 12.66
Stock options outstanding, Aggregate Intrinsic Value $ 26,431 [1]  
Exercisable, Number of Shares 229,715  
Exercisable, Weighted Average Remaining Contractual Life (in Years) 1 year 10 months 24 days  
Exercisable, Weighted Average Exercise Price per Share $ 13.61  
Exercisable, Aggregate Intrinsic Value 20,910 [1]  
Vested and expected to vest, Number of Shares 278,541  
Vested and expected to vest, Weighted Average Remaining Contractual Life (in Years) 3 years 1 month 13 days  
Vested and expected to vest, Weighted Average Exercise Price per Share $ 11.90  
Vested and expected to vest, Aggregate Intrinsic Value $ 25,833 [1]  
[1] Aggregate intrinsic value represents the difference between the fair value of the Company’s common stock underlying these options at September 30, 2012 and the related exercise prices.

Stock-Based Compensation (Schedule Of Equity Based Awards (Including Stock Options And Restricted Stock Units)) (Details)
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Stock-Based Compensation (Schedule Of Equity Based Awards (Including Stock Options And Restricted Stock Units)) (Details) (Equity Based Awards [Member])
 12 Months Ended
Sep. 30, 2012
Equity Based Awards [Member]
  
Schedule Of Equity Based Awards Including Stock Options And Restricted Stock Units [Line Items]  
Awards Available for Grant, Beginning balance 3,501,586
Awards Available for Grant, Granted (1,317,004)
Awards Available for Grant, Cancelled 114,112
Additional shares reserved (terminated), net 123,666
Awards Available for Grant, Ending balance 2,422,360

Commitments And Contingencies
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Commitments And Contingencies
 12 Months Ended
Sep. 30, 2012
Commitments And Contingencies [Abstract]  
Commitments And Contingencies

8. Commitments and Contingencies

Operating Leases

The majority of the Company’s operating lease payments relate to the Company’s three building corporate headquarters in Seattle, Washington. In April 2010, the lease for all three buildings was amended and now the lease will expire in 2022 with an option for renewal. The Company also leases additional office space for product development and sales and support personnel in the United States and internationally.

In October 2006, the Company entered into an agreement to lease a total of approximately 137,000 square feet of office space in a building known as 333 Elliott West, which is adjacent to the three buildings that serve as the Company’s corporate headquarters. The lease expires in 2018. During 2008, the Company entered into two separate sublease agreements to sublease approximately 112,500 square feet of this building.  The Company amended both subleases in 2012, which adjusted the respective rentable square feet and sublease term for each subtenant. Both subleases will now expire in 2018.

Future minimum operating lease payments, net of sublease income, are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Lease

 

Sublease

 

Net Lease

 

 

Payments

 

Income

 

Payments

2013

 

 
19,336 

 

 
4,219 

 

 
15,117 

2014

 

 
18,154 

 

 
3,215 

 

 
14,939 

2015

 

 
16,427 

 

 
1,460 

 

 
14,967 

2016

 

 
15,779 

 

 
1,412 

 

 
14,367 

2017

 

 
15,913 

 

 
1,450 

 

 
14,463 

Thereafter

 

 
54,434 

 

 
1,861 

 

 
52,573 

 

 

$
140,043 

 

$
13,617 

 

$
126,426 

 

Rent expense under non-cancelable operating leases amounted to approximately $21.6 million, $19.0 million, and $17.5 million for the fiscal years ended September 30, 2012, 2011, and 2010, respectively.

Purchase Obligations

Purchase obligations are comprised of purchase commitments with the Company’s contract manufacturers. The agreement with the Company’s primary contract manufacturer allows them to procure component inventory on the Company’s behalf based on the Company’s production forecast. The Company is obligated to purchase component inventory that the contract manufacturer procures in accordance with the forecast, unless cancellation is given within applicable lead times. As of September 30, 2012, the Company’s purchase obligations were $16.2 million.

Litigation

The Company is not aware of any pending legal proceedings that, individually or in the aggregate, are reasonably possible to have a material adverse effect on the Company’s business, operating results, or financial condition. The Company may in the future be party to litigation arising in the ordinary course of business, including claims that we allegedly infringe upon third-party intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources.


Commitment And Contingencies (Tables)
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Commitment And Contingencies (Tables)
 12 Months Ended
Sep. 30, 2012
Commitments And Contingencies [Abstract]  
Schedule Of Future Minimum Operating Lease Payments, Net Of Sublease Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Lease

 

Sublease

 

Net Lease

 

 

Payments

 

Income

 

Payments

2013

 

 
19,336 

 

 
4,219 

 

 
15,117 

2014

 

 
18,154 

 

 
3,215 

 

 
14,939 

2015

 

 
16,427 

 

 
1,460 

 

 
14,967 

2016

 

 
15,779 

 

 
1,412 

 

 
14,367 

2017

 

 
15,913 

 

 
1,450 

 

 
14,463 

Thereafter

 

 
54,434 

 

 
1,861 

 

 
52,573 

 

 

$
140,043 

 

$
13,617 

 

$
126,426 

 


Commitments And Contingencies (Narrative) (Details)
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Commitments And Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Apr. 30, 2010
property
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Oct. 31, 2006
333 Elliott West [Member]
Dec. 31, 2008
333 Elliott West [Member]
agreement
Commitments And Contingencies [Line Items]            
Number of buildings in the amended and restated lease 3          
Number of sublease agreements           2
Office space occupied under lease agreement         137,000  
Area of building subject to sublease agreement           112,500
Rent expense under non-cancelable operating leases   $ 21.6 $ 19.0 $ 17.5    
Contract manufacturers' purchase obligations   $ 16.2        
Lease expiration, corporate headquarters   Dec. 31, 2022     Dec. 31, 2018  

Commitments And Contingencies (Schedule Of Future Minimum Operating Lease Payments, Net Of Sublease Income) (Details)
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Commitments And Contingencies (Schedule Of Future Minimum Operating Lease Payments, Net Of Sublease Income) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Commitments And Contingencies [Abstract]  
Gross Lease Payments, 2013 $ 19,336
Gross Lease Payments, 2014 18,154
Gross Lease Payments, 2015 16,427
Gross Lease Payments, 2016 15,779
Gross Lease Payments, 2017 15,913
Gross Lease Payments, Thereafter 54,434
Gross Lease Payments, Total 140,043
Sublease Income, 2013 4,219
Sublease Income, 2014 3,215
Sublease Income, 2015 1,460
Sublease Income, 2016 1,412
Sublease Income, 2017 1,450
Sublease Income, Thereafter 1,861
Sublease Income, Total 13,617
Net Lease Payments, 2013 15,117
Net Lease Payments, 2014 14,939
Net Lease Payments, 2015 14,967
Net Lease Payments, 2016 14,367
Net Lease Payments, 2017 14,463
Net Lease Payments, Thereafter 52,573
Net Lease Payments, Total $ 126,426

Employee Benefit Plans
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Employee Benefit Plans
 12 Months Ended
Sep. 30, 2012
Employee Benefit Plans [Abstract]  
Employee Benefit Plans

9. Employee Benefit Plans

The Company has a 401(k) savings plan whereby eligible employees may voluntarily contribute a percentage of their compensation. The Company may, at its discretion, match a portion of the employees’ eligible contributions. Contributions by the Company to the plan during the years ended September 30, 2012, 2011, and 2010 were approximately $5.7 million, $4.7 million and $3.8 million, respectively. Contributions made by the Company vest over four years. 


Employee Benefit Plans (Details)
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Employee Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Employee Benefit Plans [Abstract]      
Contributions by the Company to the plan $ 5.7 $ 4.7 $ 3.8
Employer contribution, vesting period 4 years    

Geographic Sales And Significant Customers
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Geographic Sales And Significant Customers
 12 Months Ended
Sep. 30, 2012
Geographic Sales And Significant Customers [Abstract]  
Geographic Sales And Significant Customers

10. Geographic Sales and Significant Customers

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company does business in four main geographic regions: the Americas (primarily the United States); Europe, the Middle East, and Africa (EMEA); Japan; and the Asia Pacific region (APAC). The Company’s chief operating decision-making group reviews financial information presented on a consolidated basis accompanied by information about revenues by geographic region. The Company’s foreign offices conduct sales, marketing and support activities. Revenues are attributed by geographic location based on the location of the customer. The Company’s assets are primarily located in the United States and not allocated to any specific region. Therefore, geographic information is presented only for net revenue.

The following presents revenues by geographic region (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Americas:

 

 

 

 

 

 

 

 

 

United States

 

$
729,238 

 

$
627,806 

 

$
481,717 

Other

 

 
64,144 

 

 
49,062 

 

 
35,552 

Total Americas

 

 
793,382 

 

 
676,868 

 

 
517,269 

EMEA

 

 
294,191 

 

 
240,453 

 

 
201,259 

Japan

 

 
90,521 

 

 
74,824 

 

 
59,151 

Asia Pacific

 

 
199,153 

 

 
159,689 

 

 
104,293 

 

 

$
1,377,247 

 

$
1,151,834 

 

$
881,972 

 

 

One worldwide distributor of the Company’s products accounted for 17.1%,  18.1%, and 14.5%  of total net revenues in fiscal years 2012, 2011, and 2010, respectively.  Another worldwide distributor of the Company’s products accounted for 13.8% and 10.7% of total net revenues in fiscal years 2012 and 2011, respectively. Another worldwide distributor of the Company’s products accounted for 10.2% of total net revenue in fiscal year 2010. Two worldwide distributors accounted for 13.4% and 12.0% of the Company’s accounts receivable as of September 30, 2012. Two worldwide distributors accounted for 15.0% and 14.5% of the Company’s accounts receivable as of September 30, 2011. No other distributors accounted for more than 10% of total net revenue or receivables.  


Geographic Sales And Significant Customers (Tables)
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Geographic Sales And Significant Customers (Tables)
 12 Months Ended
Sep. 30, 2012
Geographic Sales And Significant Customers [Abstract]  
Schedule Of Revenues By Geographic Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended September 30,

 

 

2012

 

2011

 

2010

Americas:

 

 

 

 

 

 

 

 

 

United States

 

$
729,238 

 

$
627,806 

 

$
481,717 

Other

 

 
64,144 

 

 
49,062 

 

 
35,552 

Total Americas

 

 
793,382 

 

 
676,868 

 

 
517,269 

EMEA

 

 
294,191 

 

 
240,453 

 

 
201,259 

Japan

 

 
90,521 

 

 
74,824 

 

 
59,151 

Asia Pacific

 

 
199,153 

 

 
159,689 

 

 
104,293 

 

 

$
1,377,247 

 

$
1,151,834 

 

$
881,972 

 


Geographic Sales And Significant Customers (Details)
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Geographic Sales And Significant Customers (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Segment Reporting Information [Line Items]                      
Sales revenue, net $ 362,559 $ 352,634 $ 339,622 $ 322,432 $ 314,615 $ 290,713 $ 277,572 $ 268,934 $ 1,377,247 $ 1,151,834 $ 881,972
United States [Member]
                      
Segment Reporting Information [Line Items]                      
Sales revenue, net                 729,238 627,806 481,717
Other Americas [Member]
                      
Segment Reporting Information [Line Items]                      
Sales revenue, net                 64,144 49,062 35,552
Americas [Member]
                      
Segment Reporting Information [Line Items]                      
Sales revenue, net                 793,382 676,868 517,269
EMEA [Member]
                      
Segment Reporting Information [Line Items]                      
Sales revenue, net                 294,191 240,453 201,259
Japan [Member]
                      
Segment Reporting Information [Line Items]                      
Sales revenue, net                 90,521 74,824 59,151
Asia Pacific [Member]
                      
Segment Reporting Information [Line Items]                      
Sales revenue, net                 $ 199,153 $ 159,689 $ 104,293
Worldwide Distributor 1 [Member]
                      
Segment Reporting Information [Line Items]                      
Net revenues from worldwide distributor, percent                 17.10% 18.10% 14.50%
Worldwide distributors accounted for account receivable, percent                 13.40% 15.00%  
Worldwide Distributor 2 [Member]
                      
Segment Reporting Information [Line Items]                      
Net revenues from worldwide distributor, percent                 13.80% 10.70%  
Worldwide distributors accounted for account receivable, percent                 12.00% 14.50%  
Worldwide Distributor 3 [Member]
                      
Segment Reporting Information [Line Items]                      
Net revenues from worldwide distributor, percent                     10.20%

Quarterly Results Of Operations
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Quarterly Results Of Operations
 12 Months Ended
Sep. 30, 2012
Quarterly Results Of Operations [Abstract]  
Quarterly Results Of Operations

11. Quarterly Results of Operations (Unaudited)

The following presents the Company’s unaudited quarterly results of operations for the eight quarters ended September 30, 2012. The information should be read in conjunction with the Company’s financial statements and related notes included elsewhere in this report. This unaudited information has been prepared on the same basis as the audited financial statements and includes all adjustments, consisting only of normal recurring adjustments that were considered necessary for a fair statement of the Company’s operating results for the quarters presented.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Sept. 30,

 

June 30,

 

March 31,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

March 31,

 

Dec. 31,

 

 

2012

 

2012

 

2012

 

2011

 

2011

 

2011

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited and in thousands, except per share data)

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$
209,718 

 

$
207,118 

 

$
205,165 

 

$
196,554 

 

$
197,446 

 

$
179,327 

 

$
173,710 

 

$
171,492 

Services

 

 
152,841 

 

 
145,516 

 

 
134,457 

 

 
125,878 

 

 
117,169 

 

 
111,386 

 

 
103,862 

 

 
97,442 

Total

 

 
362,559 

 

 
352,634 

 

 
339,622 

 

 
322,432 

 

 
314,615 

 

 
290,713 

 

 
277,572 

 

 
268,934 

Cost of net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

 
35,752 

 

 
34,482 

 

 
33,668 

 

 
33,200 

 

 
34,485 

 

 
31,803 

 

 
31,423 

 

 
31,614 

Services

 

 
26,929 

 

 
25,805 

 

 
23,926 

 

 
22,406 

 

 
21,435 

 

 
20,645 

 

 
19,250 

 

 
17,349 

Total

 

 
62,681 

 

 
60,287 

 

 
57,594 

 

 
55,606 

 

 
55,920 

 

 
52,448 

 

 
50,673 

 

 
48,963 

Gross profit

 

 
299,878 

 

 
292,347 

 

 
282,028 

 

 
266,826 

 

 
258,695 

 

 
238,265 

 

 
226,899 

 

 
219,971 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 
116,298 

 

 
112,064 

 

 
110,995 

 

 
106,238 

 

 
100,945 

 

 
93,633 

 

 
89,332 

 

 
86,825 

Research and development

 

 
47,731 

 

 
46,985 

 

 
43,568 

 

 
39,122 

 

 
36,552 

 

 
35,245 

 

 
34,507 

 

 
32,606 

General and administrative

 

 
24,015 

 

 
23,298 

 

 
22,785 

 

 
21,677 

 

 
21,867 

 

 
21,126 

 

 
19,846 

 

 
20,684 

Total operating expenses

 

 
188,044 

 

 
182,347 

 

 
177,348 

 

 
167,037 

 

 
159,364 

 

 
150,004 

 

 
143,685 

 

 
140,115 

Income from operations

 

 
111,834 

 

 
110,000 

 

 
104,680 

 

 
99,789 

 

 
99,331 

 

 
88,261 

 

 
83,214 

 

 
79,856 

Other income, net

 

 
909 

 

 
1,713 

 

 
1,428 

 

 
1,861 

 

 
4,087 

 

 
1,889 

 

 
1,568 

 

 
2,545 

Income before income taxes

 

 
112,743 

 

 
111,713 

 

 
106,108 

 

 
101,650 

 

 
103,418 

 

 
90,150 

 

 
84,782 

 

 
82,401 

Provision for income taxes

 

 
45,026 

 

 
39,377 

 

 
37,467 

 

 
35,158 

 

 
35,808 

 

 
27,601 

 

 
29,207 

 

 
26,738 

Net income

 

$
67,717 

 

$
72,336 

 

$
68,641 

 

$
66,492 

 

$
67,610 

 

$
62,549 

 

$
55,575 

 

$
55,663 

Net income per share —           basic

 

$
0.86 

 

$
0.91 

 

$
0.87 

 

$
0.84 

 

$
0.84 

 

$
0.77 

 

$
0.69 

 

$
0.69 

Weighted average shares —      basic

 

 
78,980 

 

 
79,135 

 

 
79,156 

 

 
79,272 

 

 
80,317 

 

 
80,866 

 

 
80,809 

 

 
80,644 

Net income per share —           diluted

 

$
0.85 

 

$
0.91 

 

$
0.86 

 

$
0.83 

 

$
0.84 

 

$
0.77 

 

$
0.68 

 

$
0.68 

Weighted average shares — diluted

 

 
79,425 

 

 
79,655 

 

 
79,775 

 

 
79,822 

 

 
80,766 

 

 
81,497 

 

 
81,622 

 

 
81,648 

 

 

 

 

 

 

 


Quarterly Results Of Operations (Tables)
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Quarterly Results Of Operations (Tables)
 12 Months Ended
Sep. 30, 2012
Quarterly Results Of Operations [Abstract]  
Schedule Of Quarterly Results Of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Sept. 30,

 

June 30,

 

March 31,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

March 31,

 

Dec. 31,

 

 

2012

 

2012

 

2012

 

2011

 

2011

 

2011

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited and in thousands, except per share data)

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$
209,718 

 

$
207,118 

 

$
205,165 

 

$
196,554 

 

$
197,446 

 

$
179,327 

 

$
173,710 

 

$
171,492 

Services

 

 
152,841 

 

 
145,516 

 

 
134,457 

 

 
125,878 

 

 
117,169 

 

 
111,386 

 

 
103,862 

 

 
97,442 

Total

 

 
362,559 

 

 
352,634 

 

 
339,622 

 

 
322,432 

 

 
314,615 

 

 
290,713 

 

 
277,572 

 

 
268,934 

Cost of net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

 
35,752 

 

 
34,482 

 

 
33,668 

 

 
33,200 

 

 
34,485 

 

 
31,803 

 

 
31,423 

 

 
31,614 

Services

 

 
26,929 

 

 
25,805 

 

 
23,926 

 

 
22,406 

 

 
21,435 

 

 
20,645 

 

 
19,250 

 

 
17,349 

Total

 

 
62,681 

 

 
60,287 

 

 
57,594 

 

 
55,606 

 

 
55,920 

 

 
52,448 

 

 
50,673 

 

 
48,963 

Gross profit

 

 
299,878 

 

 
292,347 

 

 
282,028 

 

 
266,826 

 

 
258,695 

 

 
238,265 

 

 
226,899 

 

 
219,971 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 
116,298 

 

 
112,064 

 

 
110,995 

 

 
106,238 

 

 
100,945 

 

 
93,633 

 

 
89,332 

 

 
86,825 

Research and development

 

 
47,731 

 

 
46,985 

 

 
43,568 

 

 
39,122 

 

 
36,552 

 

 
35,245 

 

 
34,507 

 

 
32,606 

General and administrative

 

 
24,015 

 

 
23,298 

 

 
22,785 

 

 
21,677 

 

 
21,867 

 

 
21,126 

 

 
19,846 

 

 
20,684 

Total operating expenses

 

 
188,044 

 

 
182,347 

 

 
177,348 

 

 
167,037 

 

 
159,364 

 

 
150,004 

 

 
143,685 

 

 
140,115 

Income from operations

 

 
111,834 

 

 
110,000 

 

 
104,680 

 

 
99,789 

 

 
99,331 

 

 
88,261 

 

 
83,214 

 

 
79,856 

Other income, net

 

 
909 

 

 
1,713 

 

 
1,428 

 

 
1,861 

 

 
4,087 

 

 
1,889 

 

 
1,568 

 

 
2,545 

Income before income taxes

 

 
112,743 

 

 
111,713 

 

 
106,108 

 

 
101,650 

 

 
103,418 

 

 
90,150 

 

 
84,782 

 

 
82,401 

Provision for income taxes

 

 
45,026 

 

 
39,377 

 

 
37,467 

 

 
35,158 

 

 
35,808 

 

 
27,601 

 

 
29,207 

 

 
26,738 

Net income

 

$
67,717 

 

$
72,336 

 

$
68,641 

 

$
66,492 

 

$
67,610 

 

$
62,549 

 

$
55,575 

 

$
55,663 

Net income per share —           basic

 

$
0.86 

 

$
0.91 

 

$
0.87 

 

$
0.84 

 

$
0.84 

 

$
0.77 

 

$
0.69 

 

$
0.69 

Weighted average shares —      basic

 

 
78,980 

 

 
79,135 

 

 
79,156 

 

 
79,272 

 

 
80,317 

 

 
80,866 

 

 
80,809 

 

 
80,644 

Net income per share —           diluted

 

$
0.85 

 

$
0.91 

 

$
0.86 

 

$
0.83 

 

$
0.84 

 

$
0.77 

 

$
0.68 

 

$
0.68 

Weighted average shares — diluted

 

 
79,425 

 

 
79,655 

 

 
79,775 

 

 
79,822 

 

 
80,766 

 

 
81,497 

 

 
81,622 

 

 
81,648 

 


Quarterly Results Of Operations (Schedule Of Quarterly Results Of Operations) (Details)
v0.0.0.0
Quarterly Results Of Operations (Schedule Of Quarterly Results Of Operations) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Quarterly Results Of Operations [Abstract]                      
Products $ 209,718 $ 207,118 $ 205,165 $ 196,554 $ 197,446 $ 179,327 $ 173,710 $ 171,492 $ 818,555 $ 721,975 $ 561,142
Services 152,841 145,516 134,457 125,878 117,169 111,386 103,862 97,442 558,692 429,859 320,830
Total 362,559 352,634 339,622 322,432 314,615 290,713 277,572 268,934 1,377,247 1,151,834 881,972
Products 35,752 34,482 33,668 33,200 34,485 31,803 31,423 31,614 137,102 129,325 113,834
Services 26,929 25,805 23,926 22,406 21,435 20,645 19,250 17,349 99,066 78,679 58,118
Total 62,681 60,287 57,594 55,606 55,920 52,448 50,673 48,963 236,168 208,004 171,952
Gross profit 299,878 292,347 282,028 266,826 258,695 238,265 226,899 219,971 1,141,079 943,830 710,020
Sales and marketing 116,298 112,064 110,995 106,238 100,945 93,633 89,332 86,825 445,595 370,735 293,201
Research and development 47,731 46,985 43,568 39,122 36,552 35,245 34,507 32,606 177,406 138,910 118,314
General and administrative 24,015 23,298 22,785 21,677 21,867 21,126 19,846 20,684 91,775 83,523 68,503
Total 188,044 182,347 177,348 167,037 159,364 150,004 143,685 140,115 714,776 593,168 480,018
Income from operations 111,834 110,000 104,680 99,789 99,331 88,261 83,214 79,856 426,303 350,662 230,002
Other income, net 909 1,713 1,428 1,861 4,087 1,889 1,568 2,545 5,911 10,089 7,625
Income before income taxes 112,743 111,713 106,108 101,650 103,418 90,150 84,782 82,401 432,214 360,751 237,627
Provision for income taxes 45,026 39,377 37,467 35,158 35,808 27,601 29,207 26,738 157,028 119,354 86,474
Net income $ 67,717 $ 72,336 $ 68,641 $ 66,492 $ 67,610 $ 62,549 $ 55,575 $ 55,663 $ 275,186 $ 241,397 $ 151,153
Net income per share - basic $ 0.86 $ 0.91 $ 0.87 $ 0.84 $ 0.84 $ 0.77 $ 0.69 $ 0.69 $ 3.48 $ 2.99 $ 1.90
Weighted average shares - basic 78,980 79,135 79,156 79,272 80,317 80,866 80,809 80,644 79,135 80,658 79,609
Net income per share - diluted $ 0.85 $ 0.91 $ 0.86 $ 0.83 $ 0.84 $ 0.77 $ 0.68 $ 0.68 $ 3.45 $ 2.96 $ 1.86
Weighted average shares outstanding - diluted 79,425 79,655 79,775 79,822 80,766 81,497 81,622 81,648 79,780 81,482 81,049