v2.4.0.8
Document And Entity Information (USD $)
 12 Months Ended
Sep. 30, 2014
Nov. 20, 2014
Mar. 31, 2014
Document And Entity Information [Abstract]      
Entity Registrant Name F5 NETWORKS INC    
Entity Central Index Key 0001048695    
Current Fiscal Year End Date --09-30    
Entity Filer Category Large Accelerated Filer    
Document Type 10-K    
Document Period End Date Sep. 30, 2014    
Document Fiscal Year Focus 2014    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Common Stock, Shares Outstanding   73,783,302  
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Public Float     $ 7,990,507,572
v2.4.0.8
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
ASSETS    
Cash and cash equivalents $ 281,502 $ 189,693
Short-term investments 363,877 352,450
Accounts receivable, net of allowances of $4,958 and $3,259 242,242 204,205
Inventories 24,471 19,026
Deferred tax assets 42,290 16,342
Other current assets 44,466 34,655
Total current assets 998,848 816,371
Property and equipment, net 66,791 63,522
Long-term investments 482,917 728,981
Deferred tax assets 4,434 22,389
Goodwill 556,957 523,727
Other assets, net 75,003 75,564
Total assets 2,184,950 2,230,554
LIABILITIES AND SHAREHOLDERS’ EQUITY    
Accounts payable 43,772 37,313
Accrued liabilities 108,772 92,608
Deferred revenue 484,437 421,429
Total current liabilities 636,981 551,350
Other long-term liabilities 22,718 25,202
Deferred revenue, long-term 152,312 109,944
Deferred tax liabilities 3,629 5,346
Total long-term liabilities 178,659 140,492
Commitments and contingencies (Note 8)      
Shareholders’ equity    
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding 0 0
Common stock, no par value; 200,000 shares authorized, 73,390 and 78,090 shares issued and outstanding 15,753 262,505
Accumulated other comprehensive loss (9,584) (7,414)
Retained earnings 1,363,141 1,283,621
Total shareholders’ equity 1,369,310 1,538,712
Total liabilities and shareholders’ equity $ 2,184,950 $ 2,230,554
v2.4.0.8
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
Statement of Financial Position [Abstract]    
Accounts receivable, allowances $ 4,958 $ 3,259
Preferred stock, par value (USD per share) $ 0 $ 0
Preferred stock, shares authorized 10,000 10,000
Preferred stock, shares outstanding 0 0
Common stock, par value (USD per share) $ 0 $ 0
Common stock, shares authorized 200,000 200,000
Common stock, shares issued 73,390 78,090
Common stock, shares outstanding 73,390 78,090
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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, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Net revenues                      
Products $ 255,461 $ 236,933 $ 225,135 $ 218,601 $ 212,291 $ 196,746 $ 185,107 $ 204,712 $ 936,130 $ 798,856 $ 818,555
Services 209,805 203,352 194,908 187,851 183,038 173,556 165,125 160,739 795,916 682,458 558,692
Total 465,266 440,285 420,043 406,452 395,329 370,302 350,232 365,451 1,732,046 1,481,314 1,377,247
Cost of net revenues                      
Products 43,351 40,387 37,806 37,244 35,151 32,350 29,773 31,792 158,788 129,066 137,102
Services 38,601 39,075 37,856 35,639 31,792 32,567 30,529 29,093 151,171 123,981 99,066
Total 81,952 79,462 75,662 72,883 66,943 64,917 60,302 60,885 309,959 253,047 236,168
Gross profit 383,314 360,823 344,381 333,569 328,386 305,385 289,930 304,566 1,422,087 1,228,267 1,141,079
Operating expenses                      
Sales and marketing 143,284 139,945 140,252 134,803 119,836 121,906 119,031 122,268 558,284 483,041 445,595
Research and development 65,401 67,026 67,232 64,133 54,464 54,075 52,534 48,541 263,792 209,614 177,406
General and administrative 27,148 27,773 26,033 25,500 26,512 25,327 25,889 24,673 106,454 102,401 91,775
Loss on facility sublease 0 0 0 0 2,393 0 0 0 0 2,393 0
Total 235,833 234,744 233,517 224,436 203,205 201,308 197,454 195,482 928,530 797,449 714,776
Income from operations 147,481 126,079 110,864 109,133 125,181 104,077 92,476 109,084 493,557 430,818 426,303
Other income, net 2,323 1,193 23 246 732 2,874 2,118 1,550 3,785 7,274 5,911
Income before income taxes 149,804 127,272 110,887 109,379 125,913 106,951 94,594 110,634 497,342 438,092 432,214
Provision for income taxes 55,783 47,799 41,246 41,331 49,682 38,773 31,182 41,141 186,159 160,778 157,028
Net income $ 94,021 $ 79,473 $ 69,641 $ 68,048 $ 76,231 $ 68,178 $ 63,412 $ 69,493 $ 311,183 $ 277,314 $ 275,186
Net income per share - basic (USD per share) $ 1.27 $ 1.06 $ 0.92 $ 0.88 $ 0.97 $ 0.87 $ 0.81 $ 0.88 $ 4.13 $ 3.53 $ 3.48
Weighted average shares - basic (shares) 73,817 74,812 75,508 77,438 78,353 78,516 78,601 78,789 75,395 78,565 79,135
Net income per share - diluted (USD per share) $ 1.26 $ 1.05 $ 0.91 $ 0.87 $ 0.97 $ 0.86 $ 0.80 $ 0.88 $ 4.09 $ 3.50 $ 3.45
Weighted average shares - diluted (shares) 74,366 75,369 76,244 77,822 78,674 78,864 79,114 79,278 76,092 79,136 79,780
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Consolidated Statements of Comprehensive Income Statement (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Statement of Comprehensive Income [Abstract]      
Net income $ 311,183 $ 277,314 $ 275,186
Foreign currency translation adjustment (1,997) (2,407) 295
Unrealized (losses) gains on securities, net of taxes of $101, $692, and $(1,350) for the years ended September 30, 2014, 2013, and 2012, respectively (26) (952) 2,397
Reclassification adjustment for realized gains included in net income, net of taxes of $86, $133, and $58 for the years ended September 30, 2014, 2013, and 2012, respectively (147) (226) (99)
Net change in unrealized (losses) gains on available-for-sale securities, net of tax (173) (1,178) 2,298
Total other comprehensive (loss) income (2,170) (3,585) 2,593
Comprehensive income $ 309,013 $ 273,729 $ 277,779
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Consolidated Statements of Comprehensive Income (Parentheticals) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Statement of Comprehensive Income [Abstract]      
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax $ 101 $ 692 $ (1,350)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax $ 86 $ 133 $ 58
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Consolidated Statement Of Shareholders' Equity (USD $)
In Thousands, except Share data
Total
Common Stock [Member]
Accumulated Other Comprehensive Income/(Loss) [Member]
Retained Earnings [Member]
Balance at Sep. 30, 2011 $ 1,105,436 $ 380,737 $ (6,422) $ 731,121
Balance, shares at Sep. 30, 2011   79,145,000    
Exercise of employee stock options 1,130 1,130    
Exercise of employee stock options, shares   120,000    
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
Other comprehensive gain (loss) 2,593   2,593  
Balance at Sep. 30, 2012 1,329,400 326,922 (3,829) 1,006,307
Balance, shares at Sep. 30, 2012   78,715,000    
Exercise of employee stock options 1,341 1,341    
Exercise of employee stock options, shares   126,000    
Issuance of stock under employee stock purchase plan 28,251 28,251    
Issuance of stock under employee stock purchase plan, shares   422,000    
Issuance of restricted stock, shares   1,094,000    
Repurchase of common stock (200,000) (200,000)    
Repurchase of common stock, shares   (2,267,000)    
Tax benefit from employee stock transactions 1,779 1,779    
Stock-based compensation 104,212 104,212    
Net income 277,314     277,314
Other comprehensive gain (loss) (3,585)   (3,585)  
Balance at Sep. 30, 2013 1,538,712 262,505 (7,414) 1,283,621
Balance, shares at Sep. 30, 2013 78,090,000 78,090,000    
Exercise of employee stock options 1,422 1,422    
Exercise of employee stock options, shares 149,134 149,000    
Issuance of stock under employee stock purchase plan 33,878 33,878    
Issuance of stock under employee stock purchase plan, shares   516,000    
Issuance of restricted stock, shares   1,228,000    
Repurchase of common stock (650,542) (418,879)   (231,663)
Repurchase of common stock, shares   (6,593,000)    
Tax benefit from employee stock transactions 9,671 9,671    
Stock-based compensation 127,156 127,156    
Net income 311,183     311,183
Other comprehensive gain (loss) (2,170)   (2,170)  
Balance at Sep. 30, 2014 $ 1,369,310 $ 15,753 $ (9,584) $ 1,363,141
Balance, shares at Sep. 30, 2014 73,390,000 73,390,000    
v2.4.0.8
Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Operating activities      
Net income $ 311,183 $ 277,314 $ 275,186
Adjustments to reconcile net income to net cash provided by operating activities:      
Realized (gain) loss on disposition of assets and investments (195) (187) 546
Stock-based compensation 127,156 104,212 95,348
Provisions for doubtful accounts and sales returns 2,870 1,025 1,572
Depreciation and amortization 46,121 40,005 35,139
Deferred income taxes (3,090) 474 (4,293)
Changes in operating assets and liabilities, net of amounts acquired:      
Accounts receivable (40,895) (18,867) (20,207)
Inventories (5,445) (1,617) (262)
Other current assets (9,828) (3,614) (998)
Other assets (2,502) 683 (134)
Accounts payable and accrued liabilities 18,339 16,790 9,953
Deferred revenue 105,278 83,475 103,587
Net cash provided by operating activities 548,992 499,693 495,437
Investing activities      
Purchases of investments (515,737) (938,571) (1,059,853)
Maturities of investments 523,983 613,927 784,601
Sales of investments 214,493 212,011 81,444
Decrease (increase) in restricted cash 59 (612) (19)
Acquisition of intangible assets 0 0 (250)
Acquisition of businesses, net of cash acquired (49,439) (212,642) (128,335)
Purchases of property and equipment (22,718) (26,583) (29,867)
Net cash provided by (used in) investing activities 150,641 (352,470) (352,279)
Financing activities      
Excess tax benefit from stock-based compensation 10,283 4,091 10,371
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan 35,299 29,591 25,174
Repurchase of common stock (650,542) (200,000) (184,776)
Net cash used in financing activities (604,960) (166,318) (149,231)
Net increase (decrease) in cash and cash equivalents 94,673 (19,095) (6,073)
Effect of exchange rate changes on cash and cash equivalents (2,864) (2,393) 470
Cash and cash equivalents, beginning of year 189,693 211,181 216,784
Cash and cash equivalents, end of year 281,502 189,693 211,181
Supplemental information      
Cash paid for taxes $ 169,424 $ 156,833 $ 145,874
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Summary Of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies
The Company
F5 Networks, Inc. (the “Company”)  is the leading developer and provider of software-defined application services. The Company’s core technology is a full-proxy, programmable, highly-scalable software platform called TMOS, which supports the industry’s broadest array of features and functions designed to ensure that applications delivered over Internet Protocol (IP) networks are secure, fast and available. The Company’s TMOS-based offerings include software products for local and global traffic management, network and application security, access management, web acceleration and a number of other network and application services. These products are available as modules that can run individually or as part of an integrated solution on the Company’s high-performance, scalable, purpose-built BIG-IP appliances and VIPRION chassis-based hardware, or as software-only Virtual Editions designed to run on all major hypervisors. During fiscal year 2014, the Company acquired Defense.Net, Inc. (Defense.Net), a provider of cloud-based security services for protecting data centers and Internet applications from distributed denial-of-service (DDoS) attacks. In connection with its products, the Company offers a broad range of services including consulting, training, installation, 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.
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, United States government and agency securities and international government 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, 2014, Westcon Group, Inc. and Ingram Micro, Inc. accounted for 19.8% and 14.2% of the Company’s accounts receivable, respectively. At September 30, 2013, Ingram Micro, Inc. accounted for 18.6% of the Company’s accounts receivable.
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,
 
 
2014
 
2013
Finished goods
 
$
18,046

 
$
13,509

Raw materials
 
6,425

 
5,517

 
 
$
24,471

 
$
19,026


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,
 
 
2014
 
2013
Computer equipment
 
$
113,290

 
$
93,326

Office furniture and equipment
 
14,325

 
13,391

Leasehold improvements
 
57,976

 
54,972

 
 
185,591

 
161,689

Accumulated depreciation and amortization
 
(118,800
)
 
(98,167
)
 
 
$
66,791

 
$
63,522


Depreciation and amortization expense totaled approximately $24.7 million, $22.3 million, and $19.0 million for the fiscal years ended September 30, 2014, 2013 and 2012, 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. Goodwill is written down when impaired. Goodwill was recorded in connection with the acquisition of Defense.Net, Inc. in May 2014, Versafe Ltd. and LineRate Systems, Inc. in fiscal year 2013, 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. For its annual goodwill impairment test in all periods to date, the Company has operated under one reporting unit and the fair value of its reporting unit has been determined by the Company’s enterprise value. The Company performs its annual goodwill impairment test during the second fiscal quarter.
As part of the annual goodwill impairment test, the Company first performs a qualitative assessment to determine whether further impairment testing is necessary. If, as a result of its qualitative assessment, it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required.
Examples of events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount 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.
If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the Company’s 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. In March 2014, 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, 2014 and noted no indicators of impairment. The Company reduced the carrying amount of goodwill by $6.1 million in the second quarter of fiscal year 2014 to correct the original accounting for a 2007 acquisition, which omitted certain acquired deferred tax assets. The Company reduced goodwill to reflect the additional deferred tax assets obtained at the date of acquisition. No other financial statement amounts were affected by this correction. The correction was not material to the current period or any of the previous period financial statements.
Other Assets
Other assets primarily consist of acquired and developed technology, software development costs and customer relationships.
Acquired technology is recorded at cost and amortized over its estimated useful life of five years. The estimated useful life of these assets is assessed and evaluated for reasonableness periodically. Acquired technology of $3.6 million in fiscal year 2014, $15.4 million in fiscal year 2013 and $14.9 million in fiscal 2012 was recorded in connection with the acquisitions of Defense.Net, Versafe and Traffix Systems, respectively.
Acquired in-process research and development (IPR&D) are intangible assets initially recognized at fair value and classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. During the development period, these assets will not be amortized as charges to earnings; instead these assets will be tested for impairment on an annual basis or more frequently if impairment indicators are identified. IPR&D was recorded in connection with the acquisition of LineRate Systems, Inc. in February 2013. In the fourth quarter of fiscal year 2014, the IPR&D project related to the LineRate acquisition was completed and amortization commenced over the technology's estimated useful life of ten years.
Amortization expense related to acquired technology, including completed IPR&D, totaled $7.9 million, $3.8 million and $5.3 million during the fiscal years 2014, 2013 and 2012, respectively, and is charged to cost of product revenues.
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 2014, 2013 and 2012. Amortization expense related to capitalized software development was immaterial for fiscal years 2014, 2013, and 2012.
The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from three to ten years. The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. Amortization expense of all other intangible assets, including customer relationships, patents and trademarks was not material during the fiscal years 2014, 2013 and 2012.
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, 2014.
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.
Revenue from the sale of products is generally 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, revenue is recognized when such rights of return lapse. 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.
Revenues for post-contract customer support (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.
Arrangement consideration is first allocated between software (consisting of nonessential and stand-alone software) and non-software deliverables. The majority of the Company’s products are hardware appliances which contain software essential to the overall functionality of the products. Hardware appliances are generally sold with PCS and on occasion, with consulting and/or training services. Arrangement consideration in such multiple element transactions is allocated to each element based on a fair value 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.
For software deliverables, the Company allocates revenue between multiple elements based on 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 delivered elements is not available, revenue is recognized on the “residual method” based on the fair value of undelivered elements. If evidence of 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.
The Company establishes VSOE for its products, PCS, consulting and training 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 uses historical sales transactions to determine whether VSOE can be established for each of the elements. In most instances, VSOE of fair value is the sales price of actual standalone (unbundled) transactions within the past 12 month period, when a substantial majority of transactions (more than 80%) are priced within a narrow range, which the Company has determined to be plus or minus 15% of the median sales price.
The Company believes that the VSOE of fair value of training and consulting services is represented by the billable rate per hour, based on the rates charged to customers when they purchase standalone training or 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 is typically not able to determine VSOE or TPE for non-software products. TPE is determined 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 selling price 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 has been able to establish BESP through the list price, less a discount deemed appropriate to maintain a reasonable gross margin. Management regularly reviews gross margin information at the consolidated level. Non-software product BESP is determined through the Company’s 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 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 these amounts 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, 2014, 2013 and 2012 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 $3.6 million, $2.8 million and $1.8 million in advertising costs during the fiscal years 2014, 2013 and 2012, 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 Company adjusts these liabilities based on a variety of factors, including the evaluation of information not previously available. These adjustments are reflected as increases or decreases to income tax expense in the period in which new information is available.
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., Traffix Communication Systems Ltd. and Versafe 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 other comprehensive income (loss) in the consolidated statements of comprehensive income.
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, 2014, 2013 and 2012.
Segments
Management has determined that the Company was organized as, and operated in, one reportable operating segment for fiscal year 2014 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 $127.2 million, $104.2 million and $95.3 million of stock-based compensation expense for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014, there was $100.0 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). On October 31, 2014, the Company’s Board of Directors and Compensation Committee approved 1,064,464 RSUs to employees and executive officers pursuant to the Company’s annual equity awards program. 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 years 2014, 2013 and 2012 were assumed as part of the acquisitions of Defense.Net, LineRate Systems and Traffix Systems, respectively. 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,
 
 
2014
 
2013
 
2012
Risk-free interest rate
 
0.05
%
 
0.06
%
 
0.14
%
Expected dividend
 
—

 
—

 
—

Expected term
 
0.5 years

 
0.5 years

 
0.5 years

Expected volatility
 
24.44
%
 
42.92
%
 
45.20
%

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 6.6% and the estimated forfeiture rate for grants awarded to all other employees was approximately 7.3% in fiscal 2014. 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 2013, the Company granted 231,320 RSUs to certain current executive officers as part of the annual equity awards program. Fifty percent of the aggregate number of RSUs vest in equal quarterly increments over four years, until such portion of the grant is fully vested on November 1, 2017. One-eighth of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal year 2014. In each case, 70% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 30% 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 37.5% of this annual equity awards RSU grant shall be subject to quarterly performance based vesting for fiscal years 2015, 2016 and 2017 (12.5% 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 November 2012, the Company granted 290,415 RSUs to certain current executive officers as part of the annual equity awards program. Fifty percent of the aggregate number of RSUs vest in equal quarterly increments over four years, until such portion of the grant is fully vested on November 1, 2016. One-quarter of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal years 2013 and 2014. The remaining 25% of this annual equity awards RSU grant shall be subject to quarterly performance based vesting for fiscal years 2015 and 2016 (12.5% 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 November 2011, as part of the annual review of executive compensation by the Compensation Committee of the Board of Directors and a change in the grant date for the Company’s annual equity awards program for the executive officers from August 1 to November 1, the Company granted 82,968 RSUs to certain current executive officers. 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-half of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal years 2012, 2013 and 2014.
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 January 22, 2014, the Company announced that its Board of Directors authorized an additional $500 million for its common stock share repurchase program. This new authorization is incremental to the existing $1.1 billion program, initially approved in October 2010 and expanded in August 2011, October 2011, April 2013 and November 2013. 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 20, 2014, the Company had repurchased and retired 18,449,755 shares at an average price of $82.41 per share and the Company had $279.6 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,
 
 
2014
 
2013
 
2012
Numerator
 
 
 
 
 
 
Net income
 
$
311,183

 
$
277,314

 
$
275,186

Denominator
 
 
 
 
 
 
Weighted average shares outstanding — basic
 
75,395

 
78,565

 
79,135

Dilutive effect of common shares from stock options and restricted stock units
 
697

 
571

 
645

Weighted average shares outstanding — diluted
 
76,092

 
79,136

 
79,780

Basic net income per share
 
$
4.13

 
$
3.53

 
$
3.48

Diluted net income per share
 
$
4.09

 
$
3.50

 
$
3.45



An immaterial amount of common shares potentially issuable from stock options for the years ended September 30, 2014, 2013 and 2012 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 February 2013, the FASB issued ASU 2013-2, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income (ASU 2013-2), to improve the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-2 requires presentation, either on the face of the financial statements or in the notes, of amounts reclassified out of accumulated other comprehensive income by component and by net income line item. ASU 2013-2 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted ASU 2013-2 in the first quarter of fiscal 2014. The adoption of ASU 2013-2 did not have a significant impact on the Company's consolidated financial statements, but did require additional disclosures.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption is not permitted. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently assessing the impact that this updated standard will have on its consolidated financial statements and footnote disclosures.
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12), which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements.
v2.4.0.8
Fair Value Measurements
 12 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
Fair Value Measurements
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, U.S. government agency securities and international government 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, 2014, were as follows (in thousands):

 
 
Fair Value Measurements at Reporting Date Using
 
Fair Value at
September 30,
2014
 
 
Quoted Prices in
Active Markets for
Identical Securities
(Level  1)
 
Significant
Other Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Cash equivalents
 
$
43,618

 
$
—

 
$
—

 
$
43,618

Short-term investments
 
 
 
 
 
 
 
 
Available-for-sale securities — corporate bonds and notes
 
—

 
205,698

 
—

 
205,698

Available-for-sale securities — municipal bonds and notes
 
—

 
43,430

 
—

 
43,430

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

 
5,006

 
—

 
5,006

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

 
109,743

 
—

 
109,743

Long-term investments
 
 
 
 
 
 
 

Available-for-sale securities — corporate bonds and notes
 
—

 
325,282

 
—

 
325,282

Available-for-sale securities — municipal bonds and notes
 
—

 
24,582

 
—

 
24,582

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

 
7,407

 
—

 
7,407

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

 
123,087

 
—

 
123,087

Available-for-sale securities — international government securities
 
—

 
2,559

 
—

 
2,559

Total
 
$
43,618

 
$
846,794

 
$
—

 
$
890,412


The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2013, were as follows (in thousands):
 
 
 
Fair Value Measurements at Reporting Date Using
 
Fair Value at
September 30,
2013
 
 
Quoted Prices in
Active Markets for
Identical Securities
(Level 1)
 
Significant
Other Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Cash equivalents
 
$
13,145

 
$
—

 
$
—

 
$
13,145

Short-term investments
 
 
 
 
 
 
 
 
Available-for-sale securities — corporate bonds and notes
 
—

 
125,212

 
—

 
125,212

Available-for-sale securities — municipal bonds and notes
 
—

 
72,164

 
—

 
72,164

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

 
5,000

 
—

 
5,000

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

 
150,074

 
—

 
150,074

Long-term investments
 
 
 
 
 
 
 

Available-for-sale securities — corporate bonds and notes
 
—

 
260,318

 
—

 
260,318

Available-for-sale securities — municipal bonds and notes
 
—

 
24,371

 
—

 
24,371

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

 
14,798

 
—

 
14,798

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

 
426,458

 
—

 
426,458

Available-for-sale securities — auction rate securities
 
—

 
—

 
3,036

 
3,036

Total
 
$
13,145

 
$
1,078,395

 
$
3,036

 
$
1,094,576


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):
 
 
 
2014
 
2013
Balance, beginning of period
 
$
3,036

 
$
4,750

Total gains (losses) realized or unrealized:
 
 
 
 
Included in other comprehensive income
 
264

 
(14
)
Settlements
 
(3,300
)
 
(1,700
)
Balance, end of period
 
$
—

 
$
3,036

Unrealized losses attributable to assets still held as of the end of the period
 
—

 
(14
)

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.
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, 2014, the Company did not recognize any impairment charges related to goodwill, intangible assets, or long-lived assets.
v2.4.0.8
Short-Term And Long-Term Investments
 12 Months Ended
Sep. 30, 2014
Investments [Abstract]  
Short-Term And Long-Term Investments
Short-Term and Long-Term Investments
Short-term investments consist of the following (in thousands):
 
September 30, 2014
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
205,490

 
$
244

 
$
(36
)
 
$
205,698

Municipal bonds and notes
 
43,398

 
34

 
(2
)
 
43,430

U.S. government securities
 
4,996

 
10

 
—

 
5,006

U.S. government agency securities
 
109,685

 
66

 
(8
)
 
109,743

 
 
$
363,569

 
$
354

 
$
(46
)
 
$
363,877

 
September 30, 2013
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
125,010

 
$
210

 
$
(8
)
 
$
125,212

Municipal bonds and notes
 
72,116

 
58

 
(10
)
 
72,164

U.S. government securities
 
4,998

 
2

 
—

 
5,000

U.S. government agency securities
 
150,069

 
15

 
(10
)
 
150,074

 
 
$
352,193

 
$
285

 
$
(28
)
 
$
352,450


Long-term investments consist of the following (in thousands):
 
September 30, 2014
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
325,896

 
$
208

 
$
(822
)
 
$
325,282

Municipal bonds and notes
 
24,559

 
31

 
(8
)
 
24,582

U.S. government securities
 
7,377

 
30

 
—

 
7,407

U.S. government agency securities
 
123,207

 
40

 
(160
)
 
123,087

International government securities
 
2,568

 
—

 
(9
)
 
2,559

 
 
$
483,607

 
$
309

 
$
(999
)
 
$
482,917

 
September 30, 2013
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
260,345

 
$
363

 
$
(390
)
 
$
260,318

Municipal bonds and notes
 
24,332

 
44

 
(5
)
 
24,371

Auction rate securities
 
3,300

 
—

 
(264
)
 
3,036

U.S. government securities
 
14,755

 
43

 
—

 
14,798

U.S. government agency securities
 
426,616

 
294

 
(452
)
 
426,458

 
 
$
729,348

 
$
744

 
$
(1,111
)
 
$
728,981



The amortized cost and fair value of fixed maturities at September 30, 2014, by contractual years-to-maturity, are presented below (in thousands):
 
September 30, 2014
 
Cost or
Amortized
Cost
 
Fair Value
One year or less
 
$
363,569

 
$
363,877

Over one year
 
483,607

 
482,917

 
 
$
847,176

 
$
846,794


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, 2014 (in thousands):
 
 
 
Less Than 12 Months
 
12 Months or Greater
 
Total
September 30, 2014
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Corporate bonds and notes
 
$
262,771

 
$
(848
)
 
$
7,804

 
$
(10
)
 
$
270,575

 
$
(858
)
Municipal bonds and notes
 
14,649

 
(10
)
 
—

 
—

 
14,649

 
(10
)
U.S. government agency securities
 
89,464

 
(135
)
 
26,975

 
(33
)
 
116,439

 
(168
)
International government securities
 
2,559

 
(9
)
 
—

 
—

 
2,559

 
(9
)
Total
 
$
369,443

 
$
(1,002
)
 
$
34,779

 
$
(43
)
 
$
404,222

 
$
(1,045
)

The Company invests in securities that are rated investment grade or better. The unrealized losses on investments for fiscal year 2014 were primarily caused by interest rate increases.
The Company reviews the individual securities in its portfolio to determine whether a decline in a security's fair value below the amortized cost basis is other-than-temporary. The Company determined that as of September 30, 2014, there were no investments in its portfolio that were other-than-temporarily impaired.
v2.4.0.8
Business Combinations
 12 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
Business Combinations
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 2014 Acquisition of Defense.Net, Inc.
On May 22, 2014, the Company acquired all issued and outstanding shares of Defense.Net, Inc. (Defense.Net), a privately held Delaware corporation headquartered in Belmont, California for $49.7 million. Direct transaction costs associated with the acquisition were approximately $0.3 million and were expensed as general and administrative expenses in the third quarter of fiscal 2014. Defense.Net is a provider of cloud-based security services for protecting data centers and Internet applications from distributed denial-of-service (DDoS) attacks. Through this acquisition, the Company gains access to Defense.Net’s DDoS mitigation technology and service platform, their intellectual property and engineering talent. Defense.Net's cloud-based DDoS offering complements the Company's highly-scalable on-premise DDoS offering, providing a first line of defense for those customers who choose to implement both solutions. As a result of the acquisition, the Company acquired all the assets and assumed all the liabilities of Defense.Net. The results of operations of Defense.Net 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, 2014 individually or in aggregate with Defense.Net.
The purchase price allocation is as follows (in thousands):
Assets acquired
 
Cash
$
220
 
Current assets
249
 
Property and equipment, net
2,353
 
Deferred tax assets, net
1,162
 
Developed technology, customer relationships and other intangibles
6,682
 
Goodwill
39,346
 
Total assets acquired
$
50,012
 
Liabilities assumed
 
Accrued liabilities
$
(256
)
Deferred revenue
(97
)
Total liabilities assumed
(353
)
Net assets acquired
$
49,659
 
Of the total estimated purchase price, $3.6 million was allocated to developed technology and $3.1 million to customer relationships and other intangibles. To determine the fair value of developed technology, the relief-from-royalty method under the income approach was used, which included estimates and assumptions provided by Defense.Net and Company management. The relief-from-royalty method is based on a hypothetical royalty that the owner would otherwise be willing to pay to use the asset, assuming it was not already owned. Hypothetical royalty is calculated as a percentage of forecasted revenue, or the royalty rate. To value the technology acquired from Defense.Net, management used a royalty rate of 15%, which was based off of independent research of comparable royalty agreements for similar technology. A combination of the income and cost approaches were used to determine the fair value of customer relationships and other intangibles. Goodwill generated from this transaction is primarily related to expected synergies of the technology and expanded breadth of the Company's existing security solutions. Goodwill is not expected to be deductible for federal tax purposes.
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 sales and marketing expenses. The weighted average life of the amortizable intangible assets recognized from the Defense.Net acquisition was 6.6 years. The estimated useful lives for the acquired intangible assets were based on the expected future cash flows associated with each respective asset.
v2.4.0.8
Balance Sheet Details
 12 Months Ended
Sep. 30, 2014
Balance Sheet Details [Abstract]  
Balance Sheet Details
Balance Sheet Details
Goodwill
Changes in the carrying amount of goodwill during fiscal years 2014 and 2013 are summarized as follows (in thousands):
 
Balance, September 30, 2012
$
348,239

Acquisition of LineRate Systems
99,560

Acquisition of Versafe
75,937

Other
(9
)
Balance, September 30, 2013
523,727

Acquisition of Defense.Net
39,346

Adjustment to goodwill (1)
(6,116
)
Balance, September 30, 2014
$
556,957



(1)
The Company reduced the carrying amount of goodwill by $6.1 million in the second quarter of fiscal year 2014 to correct the original accounting for a 2007 acquisition, which omitted certain acquired deferred tax assets. The Company reduced goodwill to reflect the additional deferred tax assets obtained at the date of acquisition.
Other Assets
Other assets consist of the following (in thousands):
 
 
 
September 30,
 
 
2014
 
2013
Acquired and developed technology and software development costs
 
$
55,133

 
$
59,453

Deposits and other
 
19,072

 
15,251

Restricted cash
 
798

 
860

 
 
$
75,003

 
$
75,564


Amortization expense related to other assets was approximately $9.5 million, $4.3 million, and $6.4 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.
Intangible assets are included in other assets on the balance sheet and consist of the following (in thousands):
 
 
 
2014
 
2013
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Acquired and developed technology and software development costs
 
$
103,031

 
$
(47,899
)
 
$
55,132

 
$
99,463

 
$
(40,010
)
 
$
59,453

Customer relationships
 
10,941

 
(3,778
)
 
7,163

 
8,399

 
(3,123
)
 
5,276

Patents and trademarks
 
3,044

 
(2,587
)
 
457

 
3,044

 
(2,525
)
 
519

Trade names
 
1,173

 
(445
)
 
728

 
1,173

 
(250
)
 
923

Non-compete covenants
 
2,732

 
(949
)
 
1,783

 
2,160

 
(200
)
 
1,960

 
 
$
120,921

 
$
(55,658
)
 
$
65,263

 
$
114,239

 
$
(46,108
)
 
$
68,131


Estimated amortization expense for intangible assets for the five succeeding fiscal years is as follows (in thousands):
 
2015
$
12,611

2016
12,516

2017
9,907

2018
8,507

2019
4,336

 
$
47,877



Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
 
 
 
September 30,
 
 
2014
 
2013
Payroll and benefits
 
$
84,055

 
$
73,461

Sales and marketing
 
2,221

 
3,746

Income tax accruals
 
8,615

 
4,196

Other
 
13,881

 
11,205

 
 
$
108,772

 
$
92,608
v2.4.0.8
Income Taxes
 12 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The United States and international components of income before income taxes are as follows (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
United States
 
$
492,577

 
$
431,833

 
$
421,346

International
 
4,765

 
6,259

 
10,868

 
 
$
497,342

 
$
438,092

 
$
432,214


The provision for income taxes (benefit) consists of the following (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
Current
 
 
 
 
 
 
U.S. federal
 
$
164,994

 
$
138,372

 
$
147,774

State
 
15,462

 
14,322

 
10,733

Foreign
 
13,287

 
6,633

 
4,218

Total
 
193,743

 
159,327

 
162,725

Deferred
 
 
 
 
 
 
U.S. federal
 
(5,778
)
 
1,310

 
(7,320
)
State
 
(83
)
 
(203
)
 
187

Foreign
 
(1,723
)
 
344

 
1,436

Total
 
(7,584
)
 
1,451

 
(5,697
)
 
 
$
186,159

 
$
160,778

 
$
157,028


The effective tax rate differs from the U.S. federal statutory rate as follows (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
Income tax provision at statutory rate
 
$
174,070

 
$
153,332

 
$
151,275

State taxes, net of federal benefit
 
12,901

 
10,944

 
8,733

Foreign operations
 
5,050

 
4,786

 
1,850

Research and development and other credits
 
(6,397
)
 
(10,649
)
 
(3,537
)
Domestic manufacturing deduction
 
(15,514
)
 
(14,047
)
 
(12,539
)
Stock-based and other compensation
 
14,583

 
15,286

 
10,501

Other
 
1,466

 
1,126

 
745

 
 
$
186,159

 
$
160,778

 
$
157,028



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,
 
 
2014
 
2013
Deferred tax assets
 
 
 
 
Net operating loss carry-forwards
 
$
8,245

 
$
10,072

Allowance for doubtful accounts
 
1,724

 
1,112

Accrued compensation and benefits
 
8,273

 
7,272

Inventories and related reserves
 
1,139

 
1,120

Stock-based compensation
 
7,295

 
5,933

Deferred revenue
 
30,662

 
26,277

Other accruals and reserves
 
13,473

 
10,131

Tax credit carryforwards
 
2,852

 
2,122

Depreciation
 
738

 
—

 
 
74,401

 
64,039

Valuation allowance
 
(7,198
)
 
(5,390
)
 
 
67,203

 
58,649

Deferred tax liabilities
 
 
 
 
Purchased intangibles and other
 
(24,108
)
 
(21,567
)
Depreciation
 
—

 
(3,697
)
 
 
(24,108
)
 
(25,264
)
 
 
 
 
 
Net deferred tax assets
 
$
43,095

 
$
33,385


At September 30, 2014, the Company had foreign net operating loss carry-forwards of approximately $27.0 million that can be carried forward indefinitely. In addition, there are $8.7 million of federal net operating loss carryforwards, the annual utilization of which is limited under Internal Revenue Code Section 382, and will expire in fiscal years 2033 and 2034. Management believes that it is more likely than not that the benefit from certain foreign net operating loss carryforwards and state tax carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance on the deferred tax assets relating to these carryforwards. The net change in the total valuation allowance was an increase of $1.8 million and $5.2 million for the years ended September 30, 2014 and 2013, respectively.
United States income and foreign withholding taxes have not been provided on approximately $27.6 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 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 2014, 2013 and 2012:
 
 
2014
 
2013
 
2012
Balance, beginning of period
 
$
7,302

 
$
5,452

 
$
5,952

Gross increases related to prior period tax positions
 
901

 
1,231

 
79

Gross decreases related to prior period tax positions
 
(224
)
 
(142
)
 
(280
)
Gross increases related to current period tax positions
 
1,081

 
1,957

 
702

Decreases relating to settlements with tax authorities
 
(2,589
)
 
—

 
(3
)
Reductions due to lapses of statute of limitations
 
(77
)
 
(1,196
)
 
(998
)
Balance, end of period
 
$
6,394

 
$
7,302

 
$
5,452


The Company recognizes interest and, if applicable, penalties (not included in the “unrecognized tax benefits” table above) for any uncertain tax positions. Interest and penalties are recorded as a component of income tax expense. In the years ended September 30, 2014, 2013 and 2012 the Company recorded approximately $5,000, $244,000 and $250,000, respectively, of interest and penalty expense related to uncertain tax positions. As of September 30, 2014 and 2013, the Company had a cumulative balance of accrued interest and penalties on unrecognized tax positions of $436,000 and $431,000, respectively.
All unrecognized tax benefits, if recognized, would affect the effective tax rate. There is a reasonable possibility that the Company’s unrecognized tax benefits will change within twelve months due to audit settlements or the expiration of statute of limitations, but the Company does not expect the change to be material to the consolidated financial statements. 
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, 2011. The Company is currently under audit by various states for fiscal years 2009 through 2013. Major jurisdictions where there are wholly owned subsidiaries of F5 Networks, Inc. which require income tax filings include the United Kingdom, Japan, Singapore, and Australia. The earliest periods open for review by local taxing authorities are fiscal years 2012 for the United Kingdom, 2007 for Japan, 2008 for Singapore, and 2010 for Australia. Within the next four fiscal quarters, the statute of limitations will begin to close on the fiscal years 2009, 2010 and 2011 state income tax returns.
v2.4.0.8
Stock-Based Compensation
 12 Months Ended
Sep. 30, 2014
Share-based Compensation [Abstract]  
Stock-Based Compensation
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 ten 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 2014 and 2013, the Company issued no stock options, stock purchase awards or stock bonuses under this plan. As of September 30, 2014, there were options to purchase 6,800 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, 2014 there were 498,605 shares available for awards under the Employee Stock Purchase Plan.
Acquisition Related Incentive Plans. 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 2014, the Company issued no stock options or restricted stock units under the Acopia Plan. As of September 30, 2014, there were options to purchase 11,853 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 2014, the Company issued no stock options or restricted stock units under the Traffix Acquisition Plan. As of September 30, 2014, there were no options outstanding, 20,156 restricted stock units outstanding and no shares available for awards under the Traffix Acquisition Plan. The Company terminated the Traffix Acquisition Plan effective January 3, 2014 and no additional shares may be issued from 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 2014, the Company issued no stock options or restricted stock units under the Traffix Plan. As of September 30, 2014, there were options to purchase 19,464 shares outstanding and no shares available for additional awards under the Traffix Plan. The Company terminated the Traffix Plan effective January 3, 2014 and no additional shares may be issued from the Traffix Plan.
In February 2013, the Company adopted the LineRate Acquisition Equity Incentive Plan, or the LineRate Acquisition Plan. The LineRate Acquisition Plan provided for discretionary grants of non-statutory stock options and stock units for employees, directors and consultants of LineRate Systems to whom the Company offered employment in connection with the Company’s acquisition of LineRate Systems. A total of 100,000 shares of common stock were reserved for issuance under the LineRate Acquisition Plan. Upon certain changes in control of the Company, the surviving entity will either assume or substitute all outstanding stock awards under the LineRate Acquisition Plan or the vesting of 50% of the stock awards shall be accelerated. During the fiscal year 2014, the Company issued no stock options or restricted stock units under the LineRate Acquisition Plan. As of September 30, 2014, there were no options outstanding, 68,773 restricted stock units outstanding and no shares available for awards under the LineRate Acquisition Plan. The Company terminated the LineRate Acquisition Plan effective January 3, 2014 and no additional shares may be issued from the LineRate Acquisition Plan.
In connection with the Company’s acquisition of LineRate Systems in the second quarter of fiscal year 2013, the Company assumed the LineRate Systems, Inc. Third Amended and Restated 2009 Equity Incentive Plan, or the LineRate Plan. Unvested options to acquire LineRate Systems' common stock were converted into options to acquire the Company’s common stock in connection with the acquisition. A total of 201,478 shares of common stock were reserved for issuance under the LineRate Plan. The plan provided for grants of stock options to persons who were employees, officers, directors, consultants or advisors to LineRate Systems on or prior to February 11, 2013. During the fiscal year 2014, the Company issued no stock options or restricted stock units under the LineRate Plan. As of September 30, 2014, there were options to purchase 22,877 shares outstanding and no shares available for additional awards under the LineRate Plan. The Company terminated the LineRate Plan effective January 3, 2014 and no additional shares may be issued from the LineRate Plan.
In September 2013, the Company adopted the Versafe Acquisition Equity Incentive Plan, or the Versafe Acquisition Plan. The Versafe Acquisition Plan provided for discretionary grants of non-statutory stock options and stock units for employees, directors and consultants of Versafe Ltd. to whom the Company offered employment in connection with the Company’s acquisition of Versafe. A total of 60,000 shares of common stock were reserved for issuance under the Versafe Acquisition Plan. Upon certain changes in control of the Company, the surviving entity will either assume or substitute all outstanding stock awards under the Versafe Acquisition Plan or the vesting of 50% of the stock awards shall be accelerated. During the fiscal year 2014, the Company issued no stock options and 42,642 restricted stock units under the Versafe Acquisition Plan. As of September 30, 2014, there were no options outstanding, 35,892 restricted stock units outstanding and no shares available for awards under the Versafe Acquisition Plan. The Company terminated the Versafe Acquisition Plan effective January 3, 2014 and no additional shares may be issued from the Versafe Acquisition Plan.
In May 2014, the Company adopted the Defense.Net Acquisition Equity Incentive Plan, or the Defense.Net Acquisition Plan. The Defense.Net Acquisition Plan provided for discretionary grants of non-statutory stock options and stock units for employees, directors and consultants of Defense.Net, Inc. to whom the Company offered employment in connection with the Company’s acquisition of Defense.Net. A total of 30,000 shares of common stock were reserved for issuance under the Defense.Net Acquisition Plan. Upon certain changes in control of the Company, the surviving entity will either assume or substitute all outstanding stock awards under the Defense.Net Acquisition Plan or the vesting of 50% of the stock awards shall be accelerated. During the fiscal year 2014, the Company issued no stock options and 23,000 restricted stock units under the Defense.Net Acquisition Plan. As of September 30, 2014, there were no options outstanding, 23,000 restricted stock units outstanding and 7,000 shares available for awards under the Defense.Net Acquisition Plan.
In connection with the Company’s acquisition of Defense.Net, Inc. in the third quarter of fiscal year 2014, the Company assumed the Defense.Net, Inc. 2012 Stock Option and Grant Plan, or the Defense.Net Plan. Unvested options to acquire Defense.Net's common stock were converted into options to acquire the Company’s common stock in connection with the acquisition. A total of 84,375 shares of common stock were reserved for issuance under the Defense.Net Plan. The plan provided for grants of stock options to persons who were employees, officers, directors, consultants or advisors to Defense.Net, Inc. on or prior to May 22, 2014. During the fiscal year 2014, the Company issued 10,088 stock options as part of such conversion under the Defense.Net Plan. As of September 30, 2014, there were options to purchase 9,774 shares outstanding and 46,757 shares available for additional awards under the Defense.Net Plan.
2014 Incentive Plan. In March 2014, the Company adopted the 2014 Incentive Plan, or the 2014 Plan, which amended and restated the 2005 Equity Incentive Plan. The 2014 Plan provides for discretionary grants of non-statutory stock options and stock units for employees, including officers, and other service providers. A total of 15,380,000 shares of common stock have been reserved for issuance under the 2014 Plan. Upon certain changes in control of the Company, all outstanding and unvested options or stock awards under the 2014 Plan will vest at the rate of 50%, unless assumed or substituted by the acquiring entity. During the fiscal year 2014, the Company issued no stock options and 1,719,690 restricted stock units under the 2014 Plan. As of September 30, 2014, there were no options outstanding, 1,290,782 restricted stock units outstanding and 3,565,538 shares available for new awards under the 2014 Plan.
A majority of the restricted stock units the Company grants to its employees vest quarterly over a two-year period. The restricted stock units under all plans were granted during fiscal years 2014, 2013 and 2012 with a per-share weighted average fair value of $83.81, $86.69 and $99.63, respectively. The fair value of restricted stock vested during fiscal years 2014, 2013 and 2012 was $128.9 million, $97.5 million and $93.8 million, respectively.
A summary of restricted stock unit activity under the 2014 Plan is as follows:
 
 
 
Outstanding
Stock Units
 
Weighted
Average
Grant Date
Fair Value
Balance, September 30, 2013
 
926,035

 
$
95.47

Units granted
 
1,719,690

 
83.53

Units vested
 
(1,184,877
)
 
104.87

Units cancelled
 
(170,066
)
 
90.51

Balance, September 30, 2014
 
1,290,782

 
$
88.44


A summary of stock option activity under all of the Company’s plans is as follows:
 
 
 
Options Outstanding
 
 
Number of
Shares
 
Weighted
Average
Exercise Price
per Share
Balance, September 30, 2013
 
210,219

 
$
9.80

Options granted
 
10,088

 
3.68

Options exercised
 
(149,134
)
 
9.53

Options cancelled
 
(405
)
 
3.83

Balance, September 30, 2014
 
70,768

 
$
9.53


All stock options granted in fiscal year 2014 were assumed as part of the acquisition of Defense.Net in the third fiscal quarter. All stock options granted in fiscal year 2013 were assumed as part of the acquisition of LineRate Systems in the second fiscal quarter. All stock options granted in fiscal year 2012 were assumed as part of the acquisition of Traffix Systems in the second fiscal quarter.
The total intrinsic value of options exercised during fiscal 2014, 2013 and 2012 was $14.1 million, $9.8 million and $13.2 million, respectively.
 
 
 
Number of
Shares
 
Weighted
Average
Remaining
Contractual
Life (in Years)
 
Weighted
Average
Exercise
Price
per Share
 
Aggregate
Intrinsic
Value(1)
 
 
 
 
 
 
 
 
(In thousands)
Stock options outstanding
 
70,768

 
6.08
 
$
9.53

 
$
7,728

Exercisable
 
29,435

 
3.84
 
$
19.23

 
$
2,929

Vested and expected to vest
 
68,423

 
6.01
 
$
9.77

 
$
7,456

 
(1)
Aggregate intrinsic value represents the difference between the fair value of the Company’s common stock underlying these options at September 30, 2014 and the related exercise prices.
As of September 30, 2014, equity based awards (including stock options and restricted stock units) are available for future issuance as follows:
 
 
 
Awards
Available for
Grant
Balance, September 30, 2013
2,198,736

Granted
(1,795,420
)
Cancelled
178,554

Additional shares reserved (terminated), net
3,037,425

Balance, September 30, 2014
3,619,295
v2.4.0.8
Commitments And Contingencies
 12 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies
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. The Company is currently subleasing all floors of this building.
Future minimum operating lease payments, net of sublease income, are as follows (in thousands):
 
 
 
Gross Lease
Payments
 
Sublease
Income
 
Net Lease
Payments
2015
 
22,368

 
4,032

 
18,336

2016
 
20,188

 
3,992

 
16,196

2017
 
18,444

 
4,102

 
14,342

2018
 
16,614

 
2,770

 
13,844

2019
 
12,818

 
—

 
12,818

Thereafter
 
32,334

 
—

 
32,334

 
 
$
122,766

 
$
14,896

 
$
107,870


Rent expense under non-cancelable operating leases amounted to approximately $28.6 million, $26.5 million, and $21.6 million for the fiscal years ended September 30, 2014, 2013, and 2012, 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, 2014, the Company’s purchase obligations were $24.3 million.
Litigation
Management 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 is subject to a variety of other claims and suits that arise from time to time in the ordinary course of business. Although management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact on its financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources.
v2.4.0.8
Employee Benefit Plans
 12 Months Ended
Sep. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Employee Benefit Plans
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, 2014, 2013, and 2012 were approximately $7.2 million, $6.4 million and $5.7 million, respectively. Contributions made by the Company vest over four years.
v2.4.0.8
Geographic Sales And Significant Customers
 12 Months Ended
Sep. 30, 2014
Segments, Geographical Areas [Abstract]  
Geographic Sales And Significant Customers
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. Management has determined that the Company is organized as, and operates in, one reportable operating segment: the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems.
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. Therefore, geographic information is presented only for net revenue.
The following presents revenues by geographic region (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
Americas:
 
 
 
 
 
 
United States
 
$
896,010

 
$
777,516

 
$
729,238

Other
 
89,786

 
74,391

 
64,144

Total Americas
 
985,796

 
851,907

 
793,382

EMEA
 
404,300

 
327,109

 
294,191

Japan
 
90,131

 
83,051

 
90,521

Asia Pacific
 
251,819

 
219,247

 
199,153

 
 
$
1,732,046

 
$
1,481,314

 
$
1,377,247


One worldwide distributor of the Company’s products accounted for 14.0%, 16.6%, and 17.1% of total net revenues in fiscal years 2014, 2013, and 2012, respectively. Another worldwide distributor of the Company’s products accounted for 17.4%, 15.7% and 13.8% of total net revenues in fiscal years 2014, 2013 and 2012, respectively. Another worldwide distributor of the Company’s products accounted for 14.5% and 11.8% of total net revenue in fiscal years 2014 and 2013, respectively. Two worldwide distributor accounted for 14.2% and 19.8% of the Company’s accounts receivable as of September 30, 2014. One worldwide distributor accounted for 18.6% of the Company’s accounts receivable as of September 30, 2013. No other distributors accounted for more than 10% of total net revenue or receivables.
v2.4.0.8
Quarterly Results Of Operations
 12 Months Ended
Sep. 30, 2014
Quarterly Financial Data [Abstract]  
Quarterly Results Of Operations
Quarterly Results of Operations (Unaudited)
The following presents the Company’s unaudited quarterly results of operations for the eight quarters ended September 30, 2014. 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, 2014
 
June 30, 2014
 
March 31, 2014
 
Dec. 31, 2013
 
Sept. 30, 2013
 
June 30, 2013
 
March 31, 2013
 
Dec. 31, 2012
 
 
(Unaudited and in thousands, except per share data)
Net revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
$
255,461

 
$
236,933

 
$
225,135

 
$
218,601

 
$
212,291

 
$
196,746

 
$
185,107

 
$
204,712

Services
 
209,805

 
203,352

 
194,908

 
187,851

 
183,038

 
173,556

 
165,125

 
160,739

Total
 
465,266

 
440,285

 
420,043

 
406,452

 
395,329

 
370,302

 
350,232

 
365,451

Cost of net revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
43,351

 
40,387

 
37,806

 
37,244

 
35,151

 
32,350

 
29,773

 
31,792

Services
 
38,601

 
39,075

 
37,856

 
35,639

 
31,792

 
32,567

 
30,529

 
29,093

Total
 
81,952

 
79,462

 
75,662

 
72,883

 
66,943

 
64,917

 
60,302

 
60,885

Gross profit
 
383,314

 
360,823

 
344,381

 
333,569

 
328,386

 
305,385

 
289,930

 
304,566

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
143,284

 
139,945

 
140,252

 
134,803

 
119,836

 
121,906

 
119,031

 
122,268

Research and development
 
65,401

 
67,026

 
67,232

 
64,133

 
54,464

 
54,075

 
52,534

 
48,541

General and administrative
 
27,148

 
27,773

 
26,033

 
25,500

 
26,512

 
25,327

 
25,889

 
24,673

Loss on facility sublease
 
—

 
—

 
—

 
—

 
2,393

 
—

 
—

 
—

Total operating expenses
 
235,833

 
234,744

 
233,517

 
224,436

 
203,205

 
201,308

 
197,454

 
195,482

Income from operations
 
147,481

 
126,079

 
110,864

 
109,133

 
125,181

 
104,077

 
92,476

 
109,084

Other income, net
 
2,323

 
1,193

 
23

 
246

 
732

 
2,874

 
2,118

 
1,550

Income before income taxes
 
149,804

 
127,272

 
110,887

 
109,379

 
125,913

 
106,951

 
94,594

 
110,634

Provision for income taxes
 
55,783

 
47,799

 
41,246

 
41,331

 
49,682

 
38,773

 
31,182

 
41,141

Net income
 
$
94,021

 
$
79,473

 
$
69,641

 
$
68,048

 
$
76,231

 
$
68,178

 
$
63,412

 
$
69,493

Net income per share — basic
 
$
1.27

 
$
1.06

 
$
0.92

 
$
0.88

 
$
0.97

 
$
0.87

 
$
0.81

 
$
0.88

Weighted average shares — basic
 
73,817

 
74,812

 
75,508

 
77,438

 
78,353

 
78,516

 
78,601

 
78,789

Net income per share — diluted
 
$
1.26

 
$
1.05

 
$
0.91

 
$
0.87

 
$
0.97

 
$
0.86

 
$
0.80

 
$
0.88

Weighted average shares — diluted
 
74,366

 
75,369

 
76,244

 
77,822

 
78,674

 
78,864

 
79,114

 
79,278
v2.4.0.8
Summary Of Significant Accounting Policies (Policy)
 12 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Accounting Principles
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
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.
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, United States government and agency securities and international government 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, 2014, Westcon Group, Inc. and Ingram Micro, Inc. accounted for 19.8% and 14.2% of the Company’s accounts receivable, respectively. At September 30, 2013, Ingram Micro, Inc. accounted for 18.6% of the Company’s accounts receivable.
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).
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.
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. Goodwill is written down when impaired. Goodwill was recorded in connection with the acquisition of Defense.Net, Inc. in May 2014, Versafe Ltd. and LineRate Systems, Inc. in fiscal year 2013, 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. For its annual goodwill impairment test in all periods to date, the Company has operated under one reporting unit and the fair value of its reporting unit has been determined by the Company’s enterprise value. The Company performs its annual goodwill impairment test during the second fiscal quarter.
As part of the annual goodwill impairment test, the Company first performs a qualitative assessment to determine whether further impairment testing is necessary. If, as a result of its qualitative assessment, it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required.
Examples of events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount 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.
If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the Company’s 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. In March 2014, 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, 2014 and noted no indicators of impairment. The Company reduced the carrying amount of goodwill by $6.1 million in the second quarter of fiscal year 2014 to correct the original accounting for a 2007 acquisition, which omitted certain acquired deferred tax assets. The Company reduced goodwill to reflect the additional deferred tax assets obtained at the date of acquisition. No other financial statement amounts were affected by this correction. The correction was not material to the current period or any of the previous period financial statements.
Other Assets
Other Assets
Other assets primarily consist of acquired and developed technology, software development costs and customer relationships.
Acquired technology is recorded at cost and amortized over its estimated useful life of five years. The estimated useful life of these assets is assessed and evaluated for reasonableness periodically. Acquired technology of $3.6 million in fiscal year 2014, $15.4 million in fiscal year 2013 and $14.9 million in fiscal 2012 was recorded in connection with the acquisitions of Defense.Net, Versafe and Traffix Systems, respectively.
Acquired in-process research and development (IPR&D) are intangible assets initially recognized at fair value and classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. During the development period, these assets will not be amortized as charges to earnings; instead these assets will be tested for impairment on an annual basis or more frequently if impairment indicators are identified. IPR&D was recorded in connection with the acquisition of LineRate Systems, Inc. in February 2013. In the fourth quarter of fiscal year 2014, the IPR&D project related to the LineRate acquisition was completed and amortization commenced over the technology's estimated useful life of ten years.
Amortization expense related to acquired technology, including completed IPR&D, totaled $7.9 million, $3.8 million and $5.3 million during the fiscal years 2014, 2013 and 2012, respectively, and is charged to cost of product revenues.
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 2014, 2013 and 2012. Amortization expense related to capitalized software development was immaterial for fiscal years 2014, 2013, and 2012.
The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from three to ten years. The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. Amortization expense of all other intangible assets, including customer relationships, patents and trademarks was not material during the fiscal years 2014, 2013 and 2012.
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, 2014.
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.
Revenue from the sale of products is generally 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, revenue is recognized when such rights of return lapse. 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.
Revenues for post-contract customer support (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.
Arrangement consideration is first allocated between software (consisting of nonessential and stand-alone software) and non-software deliverables. The majority of the Company’s products are hardware appliances which contain software essential to the overall functionality of the products. Hardware appliances are generally sold with PCS and on occasion, with consulting and/or training services. Arrangement consideration in such multiple element transactions is allocated to each element based on a fair value 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.
For software deliverables, the Company allocates revenue between multiple elements based on 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 delivered elements is not available, revenue is recognized on the “residual method” based on the fair value of undelivered elements. If evidence of 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.
The Company establishes VSOE for its products, PCS, consulting and training 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 uses historical sales transactions to determine whether VSOE can be established for each of the elements. In most instances, VSOE of fair value is the sales price of actual standalone (unbundled) transactions within the past 12 month period, when a substantial majority of transactions (more than 80%) are priced within a narrow range, which the Company has determined to be plus or minus 15% of the median sales price.
The Company believes that the VSOE of fair value of training and consulting services is represented by the billable rate per hour, based on the rates charged to customers when they purchase standalone training or 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 is typically not able to determine VSOE or TPE for non-software products. TPE is determined 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 selling price 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 has been able to establish BESP through the list price, less a discount deemed appropriate to maintain a reasonable gross margin. Management regularly reviews gross margin information at the consolidated level. Non-software product BESP is determined through the Company’s 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 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 these amounts 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, 2014, 2013 and 2012 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 $3.6 million, $2.8 million and $1.8 million in advertising costs during the fiscal years 2014, 2013 and 2012, 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 Company adjusts these liabilities based on a variety of factors, including the evaluation of information not previously available. These adjustments are reflected as increases or decreases to income tax expense in the period in which new information is available.
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., Traffix Communication Systems Ltd. and Versafe 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 other comprehensive income (loss) in the consolidated statements of comprehensive income.
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, 2014, 2013 and 2012.
Segments
Segments
Management has determined that the Company was organized as, and operated in, one reportable operating segment for fiscal year 2014 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 $127.2 million, $104.2 million and $95.3 million of stock-based compensation expense for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014, there was $100.0 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). On October 31, 2014, the Company’s Board of Directors and Compensation Committee approved 1,064,464 RSUs to employees and executive officers pursuant to the Company’s annual equity awards program. 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 years 2014, 2013 and 2012 were assumed as part of the acquisitions of Defense.Net, LineRate Systems and Traffix Systems, respectively. 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,
 
 
2014
 
2013
 
2012
Risk-free interest rate
 
0.05
%
 
0.06
%
 
0.14
%
Expected dividend
 
—

 
—

 
—

Expected term
 
0.5 years

 
0.5 years

 
0.5 years

Expected volatility
 
24.44
%
 
42.92
%
 
45.20
%

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 6.6% and the estimated forfeiture rate for grants awarded to all other employees was approximately 7.3% in fiscal 2014. 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 2013, the Company granted 231,320 RSUs to certain current executive officers as part of the annual equity awards program. Fifty percent of the aggregate number of RSUs vest in equal quarterly increments over four years, until such portion of the grant is fully vested on November 1, 2017. One-eighth of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal year 2014. In each case, 70% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal and the other 30% 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 37.5% of this annual equity awards RSU grant shall be subject to quarterly performance based vesting for fiscal years 2015, 2016 and 2017 (12.5% 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 November 2012, the Company granted 290,415 RSUs to certain current executive officers as part of the annual equity awards program. Fifty percent of the aggregate number of RSUs vest in equal quarterly increments over four years, until such portion of the grant is fully vested on November 1, 2016. One-quarter of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal years 2013 and 2014. The remaining 25% of this annual equity awards RSU grant shall be subject to quarterly performance based vesting for fiscal years 2015 and 2016 (12.5% 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 November 2011, as part of the annual review of executive compensation by the Compensation Committee of the Board of Directors and a change in the grant date for the Company’s annual equity awards program for the executive officers from August 1 to November 1, the Company granted 82,968 RSUs to certain current executive officers. 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-half of the RSU grant, or a portion thereof, was subject to the Company achieving specified quarterly revenue and EBITDA goals during fiscal years 2012, 2013 and 2014.
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 January 22, 2014, the Company announced that its Board of Directors authorized an additional $500 million for its common stock share repurchase program. This new authorization is incremental to the existing $1.1 billion program, initially approved in October 2010 and expanded in August 2011, October 2011, April 2013 and November 2013. 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 20, 2014, the Company had repurchased and retired 18,449,755 shares at an average price of $82.41 per share and the Company had $279.6 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.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In February 2013, the FASB issued ASU 2013-2, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income (ASU 2013-2), to improve the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-2 requires presentation, either on the face of the financial statements or in the notes, of amounts reclassified out of accumulated other comprehensive income by component and by net income line item. ASU 2013-2 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted ASU 2013-2 in the first quarter of fiscal 2014. The adoption of ASU 2013-2 did not have a significant impact on the Company's consolidated financial statements, but did require additional disclosures.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption is not permitted. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently assessing the impact that this updated standard will have on its consolidated financial statements and footnote disclosures.
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12), which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements.
v2.4.0.8
Summary Of Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Schedule Of Inventories
Inventories consist of the following (in thousands):
 
 
 
September 30,
 
 
2014
 
2013
Finished goods
 
$
18,046

 
$
13,509

Raw materials
 
6,425

 
5,517

 
 
$
24,471

 
$
19,026
Schedule Of Property And Equipment
Property and equipment consist of the following (in thousands):
 
 
 
September 30,
 
 
2014
 
2013
Computer equipment
 
$
113,290

 
$
93,326

Office furniture and equipment
 
14,325

 
13,391

Leasehold improvements
 
57,976

 
54,972

 
 
185,591

 
161,689

Accumulated depreciation and amortization
 
(118,800
)
 
(98,167
)
 
 
$
66,791

 
$
63,522
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,
 
 
2014
 
2013
 
2012
Risk-free interest rate
 
0.05
%
 
0.06
%
 
0.14
%
Expected dividend
 
—

 
—

 
—

Expected term
 
0.5 years

 
0.5 years

 
0.5 years

Expected volatility
 
24.44
%
 
42.92
%
 
45.20
%
Schedule Of Computation Of Basic And Diluted Net Income Per Share
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,
 
 
2014
 
2013
 
2012
Numerator
 
 
 
 
 
 
Net income
 
$
311,183

 
$
277,314

 
$
275,186

Denominator
 
 
 
 
 
 
Weighted average shares outstanding — basic
 
75,395

 
78,565

 
79,135

Dilutive effect of common shares from stock options and restricted stock units
 
697

 
571

 
645

Weighted average shares outstanding — diluted
 
76,092

 
79,136

 
79,780

Basic net income per share
 
$
4.13

 
$
3.53

 
$
3.48

Diluted net income per share
 
$
4.09

 
$
3.50

 
$
3.45
v2.4.0.8
Fair Value Measurements (Tables)
 12 Months Ended
Sep. 30, 2014
Fair Value Disclosures [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, 2014, were as follows (in thousands):

 
 
Fair Value Measurements at Reporting Date Using
 
Fair Value at
September 30,
2014
 
 
Quoted Prices in
Active Markets for
Identical Securities
(Level  1)
 
Significant
Other Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Cash equivalents
 
$
43,618

 
$
—

 
$
—

 
$
43,618

Short-term investments
 
 
 
 
 
 
 
 
Available-for-sale securities — corporate bonds and notes
 
—

 
205,698

 
—

 
205,698

Available-for-sale securities — municipal bonds and notes
 
—

 
43,430

 
—

 
43,430

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

 
5,006

 
—

 
5,006

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

 
109,743

 
—

 
109,743

Long-term investments
 
 
 
 
 
 
 

Available-for-sale securities — corporate bonds and notes
 
—

 
325,282

 
—

 
325,282

Available-for-sale securities — municipal bonds and notes
 
—

 
24,582

 
—

 
24,582

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

 
7,407

 
—

 
7,407

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

 
123,087

 
—

 
123,087

Available-for-sale securities — international government securities
 
—

 
2,559

 
—

 
2,559

Total
 
$
43,618

 
$
846,794

 
$
—

 
$
890,412


The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2013, were as follows (in thousands):
 
 
 
Fair Value Measurements at Reporting Date Using
 
Fair Value at
September 30,
2013
 
 
Quoted Prices in
Active Markets for
Identical Securities
(Level 1)
 
Significant
Other Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Cash equivalents
 
$
13,145

 
$
—

 
$
—

 
$
13,145

Short-term investments
 
 
 
 
 
 
 
 
Available-for-sale securities — corporate bonds and notes
 
—

 
125,212

 
—

 
125,212

Available-for-sale securities — municipal bonds and notes
 
—

 
72,164

 
—

 
72,164

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

 
5,000

 
—

 
5,000

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

 
150,074

 
—

 
150,074

Long-term investments
 
 
 
 
 
 
 

Available-for-sale securities — corporate bonds and notes
 
—

 
260,318

 
—

 
260,318

Available-for-sale securities — municipal bonds and notes
 
—

 
24,371

 
—

 
24,371

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

 
14,798

 
—

 
14,798

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

 
426,458

 
—

 
426,458

Available-for-sale securities — auction rate securities
 
—

 
—

 
3,036

 
3,036

Total
 
$
13,145

 
$
1,078,395

 
$
3,036

 
$
1,094,576
Schedule Of Reconciliation Of Items Measured At Fair Value On A Recurring Basis That Used Significant Unobservable Inputs (Level 3)
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):
 
 
 
2014
 
2013
Balance, beginning of period
 
$
3,036

 
$
4,750

Total gains (losses) realized or unrealized:
 
 
 
 
Included in other comprehensive income
 
264

 
(14
)
Settlements
 
(3,300
)
 
(1,700
)
Balance, end of period
 
$
—

 
$
3,036

Unrealized losses attributable to assets still held as of the end of the period
 
—

 
(14
)
v2.4.0.8
Short-Term And Long-Term Investments (Tables)
 12 Months Ended
Sep. 30, 2014
Schedule of Investments [Line Items]  
Schedule Of Amortized Cost And Fair Value Of Fixed Maturities By Contractual Years-To-Maturity
The amortized cost and fair value of fixed maturities at September 30, 2014, by contractual years-to-maturity, are presented below (in thousands):
 
September 30, 2014
 
Cost or
Amortized
Cost
 
Fair Value
One year or less
 
$
363,569

 
$
363,877

Over one year
 
483,607

 
482,917

 
 
$
847,176

 
$
846,794
Schedule Of Investments That Have Been In A Continuous Unrealized Loss Position
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, 2014 (in thousands):
 
 
 
Less Than 12 Months
 
12 Months or Greater
 
Total
September 30, 2014
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Corporate bonds and notes
 
$
262,771

 
$
(848
)
 
$
7,804

 
$
(10
)
 
$
270,575

 
$
(858
)
Municipal bonds and notes
 
14,649

 
(10
)
 
—

 
—

 
14,649

 
(10
)
U.S. government agency securities
 
89,464

 
(135
)
 
26,975

 
(33
)
 
116,439

 
(168
)
International government securities
 
2,559

 
(9
)
 
—

 
—

 
2,559

 
(9
)
Total
 
$
369,443

 
$
(1,002
)
 
$
34,779

 
$
(43
)
 
$
404,222

 
$
(1,045
)
Short-Term Investments [Member]
  
Schedule of Investments [Line Items]  
Schedule Of Short-Term And Long-Term Investments
Short-term investments consist of the following (in thousands):
 
September 30, 2014
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
205,490

 
$
244

 
$
(36
)
 
$
205,698

Municipal bonds and notes
 
43,398

 
34

 
(2
)
 
43,430

U.S. government securities
 
4,996

 
10

 
—

 
5,006

U.S. government agency securities
 
109,685

 
66

 
(8
)
 
109,743

 
 
$
363,569

 
$
354

 
$
(46
)
 
$
363,877

 
September 30, 2013
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
125,010

 
$
210

 
$
(8
)
 
$
125,212

Municipal bonds and notes
 
72,116

 
58

 
(10
)
 
72,164

U.S. government securities
 
4,998

 
2

 
—

 
5,000

U.S. government agency securities
 
150,069

 
15

 
(10
)
 
150,074

 
 
$
352,193

 
$
285

 
$
(28
)
 
$
352,450
Long-Term Investments [Member]
  
Schedule of Investments [Line Items]  
Schedule Of Short-Term And Long-Term Investments
Long-term investments consist of the following (in thousands):
 
September 30, 2014
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
325,896

 
$
208

 
$
(822
)
 
$
325,282

Municipal bonds and notes
 
24,559

 
31

 
(8
)
 
24,582

U.S. government securities
 
7,377

 
30

 
—

 
7,407

U.S. government agency securities
 
123,207

 
40

 
(160
)
 
123,087

International government securities
 
2,568

 
—

 
(9
)
 
2,559

 
 
$
483,607

 
$
309

 
$
(999
)
 
$
482,917

 
September 30, 2013
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Corporate bonds and notes
 
$
260,345

 
$
363

 
$
(390
)
 
$
260,318

Municipal bonds and notes
 
24,332

 
44

 
(5
)
 
24,371

Auction rate securities
 
3,300

 
—

 
(264
)
 
3,036

U.S. government securities
 
14,755

 
43

 
—

 
14,798

U.S. government agency securities
 
426,616

 
294

 
(452
)
 
426,458

 
 
$
729,348

 
$
744

 
$
(1,111
)
 
$
728,981
v2.4.0.8
Business Combinations (Tables)
 12 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
Schedule Of Purchase Price Allocation
The purchase price allocation is as follows (in thousands):
Assets acquired
 
Cash
$
220
 
Current assets
249
 
Property and equipment, net
2,353
 
Deferred tax assets, net
1,162
 
Developed technology, customer relationships and other intangibles
6,682
 
Goodwill
39,346
 
Total assets acquired
$
50,012
 
Liabilities assumed
 
Accrued liabilities
$
(256
)
Deferred revenue
(97
)
Total liabilities assumed
(353
)
Net assets acquired
$
49,659
 
v2.4.0.8
Balance Sheet Details (Tables)
 12 Months Ended
Sep. 30, 2014
Balance Sheet Details [Abstract]  
Schedule Of Goodwill
Changes in the carrying amount of goodwill during fiscal years 2014 and 2013 are summarized as follows (in thousands):
 
Balance, September 30, 2012
$
348,239

Acquisition of LineRate Systems
99,560

Acquisition of Versafe
75,937

Other
(9
)
Balance, September 30, 2013
523,727

Acquisition of Defense.Net
39,346

Adjustment to goodwill (1)
(6,116
)
Balance, September 30, 2014
$
556,957



(1)
The Company reduced the carrying amount of goodwill by $6.1 million in the second quarter of fiscal year 2014 to correct the original accounting for a 2007 acquisition, which omitted certain acquired deferred tax assets. The Company reduced goodwill to reflect the additional deferred tax assets obtained at the date of acquisition.
Schedule Of Other Assets
Other assets consist of the following (in thousands):
 
 
 
September 30,
 
 
2014
 
2013
Acquired and developed technology and software development costs
 
$
55,133

 
$
59,453

Deposits and other
 
19,072

 
15,251

Restricted cash
 
798

 
860

 
 
$
75,003

 
$
75,564
Schedule Of Intangible Assets
Intangible assets are included in other assets on the balance sheet and consist of the following (in thousands):
 
 
 
2014
 
2013
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Acquired and developed technology and software development costs
 
$
103,031

 
$
(47,899
)
 
$
55,132

 
$
99,463

 
$
(40,010
)
 
$
59,453

Customer relationships
 
10,941

 
(3,778
)
 
7,163

 
8,399

 
(3,123
)
 
5,276

Patents and trademarks
 
3,044

 
(2,587
)
 
457

 
3,044

 
(2,525
)
 
519

Trade names
 
1,173

 
(445
)
 
728

 
1,173

 
(250
)
 
923

Non-compete covenants
 
2,732

 
(949
)
 
1,783

 
2,160

 
(200
)
 
1,960

 
 
$
120,921

 
$
(55,658
)
 
$
65,263

 
$
114,239

 
$
(46,108
)
 
$
68,131
Schedule Of Estimated Amortization Expense For Intangible Assets
Estimated amortization expense for intangible assets for the five succeeding fiscal years is as follows (in thousands):
 
2015
$
12,611

2016
12,516

2017
9,907

2018
8,507

2019
4,336

 
$
47,877
Schedule Of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
 
 
 
September 30,
 
 
2014
 
2013
Payroll and benefits
 
$
84,055

 
$
73,461

Sales and marketing
 
2,221

 
3,746

Income tax accruals
 
8,615

 
4,196

Other
 
13,881

 
11,205

 
 
$
108,772

 
$
92,608
v2.4.0.8
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Components Of Income Before Income Taxes
The United States and international components of income before income taxes are as follows (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
United States
 
$
492,577

 
$
431,833

 
$
421,346

International
 
4,765

 
6,259

 
10,868

 
 
$
497,342

 
$
438,092

 
$
432,214
Schedule Of Provision For Income Taxes (Benefit)
The provision for income taxes (benefit) consists of the following (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
Current
 
 
 
 
 
 
U.S. federal
 
$
164,994

 
$
138,372

 
$
147,774

State
 
15,462

 
14,322

 
10,733

Foreign
 
13,287

 
6,633

 
4,218

Total
 
193,743

 
159,327

 
162,725

Deferred
 
 
 
 
 
 
U.S. federal
 
(5,778
)
 
1,310

 
(7,320
)
State
 
(83
)
 
(203
)
 
187

Foreign
 
(1,723
)
 
344

 
1,436

Total
 
(7,584
)
 
1,451

 
(5,697
)
 
 
$
186,159

 
$
160,778

 
$
157,028
Schedule Of Effective Tax Rate Differs From The U.S. Federal Statutory Rate
The effective tax rate differs from the U.S. federal statutory rate as follows (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
Income tax provision at statutory rate
 
$
174,070

 
$
153,332

 
$
151,275

State taxes, net of federal benefit
 
12,901

 
10,944

 
8,733

Foreign operations
 
5,050

 
4,786

 
1,850

Research and development and other credits
 
(6,397
)
 
(10,649
)
 
(3,537
)
Domestic manufacturing deduction
 
(15,514
)
 
(14,047
)
 
(12,539
)
Stock-based and other compensation
 
14,583

 
15,286

 
10,501

Other
 
1,466

 
1,126

 
745

 
 
$
186,159

 
$
160,778

 
$
157,028
Schedule Of Tax Effects To Deferred Tax Assets And Liabilities
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,
 
 
2014
 
2013
Deferred tax assets
 
 
 
 
Net operating loss carry-forwards
 
$
8,245

 
$
10,072

Allowance for doubtful accounts
 
1,724

 
1,112

Accrued compensation and benefits
 
8,273

 
7,272

Inventories and related reserves
 
1,139

 
1,120

Stock-based compensation
 
7,295

 
5,933

Deferred revenue
 
30,662

 
26,277

Other accruals and reserves
 
13,473

 
10,131

Tax credit carryforwards
 
2,852

 
2,122

Depreciation
 
738

 
—

 
 
74,401

 
64,039

Valuation allowance
 
(7,198
)
 
(5,390
)
 
 
67,203

 
58,649

Deferred tax liabilities
 
 
 
 
Purchased intangibles and other
 
(24,108
)
 
(21,567
)
Depreciation
 
—

 
(3,697
)
 
 
(24,108
)
 
(25,264
)
 
 
 
 
 
Net deferred tax assets
 
$
43,095

 
$
33,385
Schedule Of Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits in fiscal years 2014, 2013 and 2012:
 
 
2014
 
2013
 
2012
Balance, beginning of period
 
$
7,302

 
$
5,452

 
$
5,952

Gross increases related to prior period tax positions
 
901

 
1,231

 
79

Gross decreases related to prior period tax positions
 
(224
)
 
(142
)
 
(280
)
Gross increases related to current period tax positions
 
1,081

 
1,957

 
702

Decreases relating to settlements with tax authorities
 
(2,589
)
 
—

 
(3
)
Reductions due to lapses of statute of limitations
 
(77
)
 
(1,196
)
 
(998
)
Balance, end of period
 
$
6,394

 
$
7,302

 
$
5,452
v2.4.0.8
Stock-Based Compensation (Tables)
 12 Months Ended
Sep. 30, 2014
Share-based Compensation [Abstract]  
Schedule Of Summary Of Restricted Stock Unit Activity
A summary of restricted stock unit activity under the 2014 Plan is as follows:
 
 
 
Outstanding
Stock Units
 
Weighted
Average
Grant Date
Fair Value
Balance, September 30, 2013
 
926,035

 
$
95.47

Units granted
 
1,719,690

 
83.53

Units vested
 
(1,184,877
)
 
104.87

Units cancelled
 
(170,066
)
 
90.51

Balance, September 30, 2014
 
1,290,782

 
$
88.44
Schedule Of Stock Option Activity
A summary of stock option activity under all of the Company’s plans is as follows:
 
 
 
Options Outstanding
 
 
Number of
Shares
 
Weighted
Average
Exercise Price
per Share
Balance, September 30, 2013
 
210,219

 
$
9.80

Options granted
 
10,088

 
3.68

Options exercised
 
(149,134
)
 
9.53

Options cancelled
 
(405
)
 
3.83

Balance, September 30, 2014
 
70,768

 
$
9.53
Schedule Of Outstanding Stock Options Currently Exercisable, Vested And Expected To Vest
 
 
Number of
Shares
 
Weighted
Average
Remaining
Contractual
Life (in Years)
 
Weighted
Average
Exercise
Price
per Share
 
Aggregate
Intrinsic
Value(1)
 
 
 
 
 
 
 
 
(In thousands)
Stock options outstanding
 
70,768

 
6.08
 
$
9.53

 
$
7,728

Exercisable
 
29,435

 
3.84
 
$
19.23

 
$
2,929

Vested and expected to vest
 
68,423

 
6.01
 
$
9.77

 
$
7,456

 
(1)
Aggregate intrinsic value represents the difference between the fair value of the Company’s common stock underlying these options at September 30, 2014 and the related exercise prices.
Schedule Of Equity Based Awards (Including Stock Options And Restricted Stock Units)
As of September 30, 2014, equity based awards (including stock options and restricted stock units) are available for future issuance as follows:
 
 
 
Awards
Available for
Grant
Balance, September 30, 2013
2,198,736

Granted
(1,795,420
)
Cancelled
178,554

Additional shares reserved (terminated), net
3,037,425

Balance, September 30, 2014
3,619,295
v2.4.0.8
Commitment And Contingencies (Tables)
 12 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
Schedule Of Future Minimum Operating Lease Payments, Net Of Sublease Income
Future minimum operating lease payments, net of sublease income, are as follows (in thousands):
 
 
 
Gross Lease
Payments
 
Sublease
Income
 
Net Lease
Payments
2015
 
22,368

 
4,032

 
18,336

2016
 
20,188

 
3,992

 
16,196

2017
 
18,444

 
4,102

 
14,342

2018
 
16,614

 
2,770

 
13,844

2019
 
12,818

 
—

 
12,818

Thereafter
 
32,334

 
—

 
32,334

 
 
$
122,766

 
$
14,896

 
$
107,870
v2.4.0.8
Geographic Sales And Significant Customers (Tables)
 12 Months Ended
Sep. 30, 2014
Segments, Geographical Areas [Abstract]  
Schedule Of Revenues By Geographic Region
The following presents revenues by geographic region (in thousands):
 
 
 
Years Ended September 30,
 
 
2014
 
2013
 
2012
Americas:
 
 
 
 
 
 
United States
 
$
896,010

 
$
777,516

 
$
729,238

Other
 
89,786

 
74,391

 
64,144

Total Americas
 
985,796

 
851,907

 
793,382

EMEA
 
404,300

 
327,109

 
294,191

Japan
 
90,131

 
83,051

 
90,521

Asia Pacific
 
251,819

 
219,247

 
199,153

 
 
$
1,732,046

 
$
1,481,314

 
$
1,377,247
v2.4.0.8
Quarterly Results Of Operations (Tables)
 12 Months Ended
Sep. 30, 2014
Quarterly Financial Data [Abstract]  
Schedule Of Quarterly Results Of Operations
 
 
Three Months Ended
 
 
Sept. 30, 2014
 
June 30, 2014
 
March 31, 2014
 
Dec. 31, 2013
 
Sept. 30, 2013
 
June 30, 2013
 
March 31, 2013
 
Dec. 31, 2012
 
 
(Unaudited and in thousands, except per share data)
Net revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
$
255,461

 
$
236,933

 
$
225,135

 
$
218,601

 
$
212,291

 
$
196,746

 
$
185,107

 
$
204,712

Services
 
209,805

 
203,352

 
194,908

 
187,851

 
183,038

 
173,556

 
165,125

 
160,739

Total
 
465,266

 
440,285

 
420,043

 
406,452

 
395,329

 
370,302

 
350,232

 
365,451

Cost of net revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
43,351

 
40,387

 
37,806

 
37,244

 
35,151

 
32,350

 
29,773

 
31,792

Services
 
38,601

 
39,075

 
37,856

 
35,639

 
31,792

 
32,567

 
30,529

 
29,093

Total
 
81,952

 
79,462

 
75,662

 
72,883

 
66,943

 
64,917

 
60,302

 
60,885

Gross profit
 
383,314

 
360,823

 
344,381

 
333,569

 
328,386

 
305,385

 
289,930

 
304,566

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
143,284

 
139,945

 
140,252

 
134,803

 
119,836

 
121,906

 
119,031

 
122,268

Research and development
 
65,401

 
67,026

 
67,232

 
64,133

 
54,464

 
54,075

 
52,534

 
48,541

General and administrative
 
27,148

 
27,773

 
26,033

 
25,500

 
26,512

 
25,327

 
25,889

 
24,673

Loss on facility sublease
 
—

 
—

 
—

 
—

 
2,393

 
—

 
—

 
—

Total operating expenses
 
235,833

 
234,744

 
233,517

 
224,436

 
203,205

 
201,308

 
197,454

 
195,482

Income from operations
 
147,481

 
126,079

 
110,864

 
109,133

 
125,181

 
104,077

 
92,476

 
109,084

Other income, net
 
2,323

 
1,193

 
23

 
246

 
732

 
2,874

 
2,118

 
1,550

Income before income taxes
 
149,804

 
127,272

 
110,887

 
109,379

 
125,913

 
106,951

 
94,594

 
110,634

Provision for income taxes
 
55,783

 
47,799

 
41,246

 
41,331

 
49,682

 
38,773

 
31,182

 
41,141

Net income
 
$
94,021

 
$
79,473

 
$
69,641

 
$
68,048

 
$
76,231

 
$
68,178

 
$
63,412

 
$
69,493

Net income per share — basic
 
$
1.27

 
$
1.06

 
$
0.92

 
$
0.88

 
$
0.97

 
$
0.87

 
$
0.81

 
$
0.88

Weighted average shares — basic
 
73,817

 
74,812

 
75,508

 
77,438

 
78,353

 
78,516

 
78,601

 
78,789

Net income per share — diluted
 
$
1.26

 
$
1.05

 
$
0.91

 
$
0.87

 
$
0.97

 
$
0.86

 
$
0.80

 
$
0.88

Weighted average shares — diluted
 
74,366

 
75,369

 
76,244

 
77,822

 
78,674

 
78,864

 
79,114

 
79,278
v2.4.0.8
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
 12 Months Ended 0 Months Ended 39 Months Ended 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2014
Minimum [Member]
Sep. 30, 2014
Maximum [Member]
Sep. 30, 2014
Hardware [Member]
Sep. 30, 2014
Computer Software, Intangible Asset [Member]
Sep. 30, 2013
Computer Software, Intangible Asset [Member]
Sep. 30, 2012
Computer Software, Intangible Asset [Member]
Sep. 30, 2014
Computer Software, Intangible Asset [Member]
Defense.net [Member]
Sep. 30, 2013
Computer Software, Intangible Asset [Member]
Versafe [Member]
Sep. 30, 2012
Computer Software, Intangible Asset [Member]
Traffix Systems [Member]
Jan. 22, 2014
October Twenty Six Two Thousand Ten Program [Member]
Jan. 20, 2014
October Twenty Six Two Thousand Ten Program [Member]
Nov. 20, 2014
Subsequent Event [Member]
Goodwill                              
Goodwill, Subsequent Recognition of Deferred Tax Asset $ (6,116,000)                            
Other Assets                              
Acquired and developed technology and customer relationship assets estimated useful lives             5 years                
Acquired technology in connection with the acquisitions                   3,600,000 15,400,000 14,900,000      
Amortization expense related to acquired technology 9,500,000 4,300,000 6,400,000       7,900,000 3,800,000 5,300,000            
Revenue Recognition                              
Domestic accounts receivable terms of payment       30 days 45 days                    
International accounts receivable terms of payment       30 days 120 days                    
VSOE Percentage Which Constitutes Substantial Majority of Transactions Priced Within a Narrow Range 80.00%                            
Range of VSOE to median sales price 15.00%                            
Guarantees and Product Warranties                              
Standard product warranty period           1 year                  
Advertising                              
Advertising costs 3,600,000 2,800,000 1,800,000                        
Common Stock Repurchase                              
Common stock share repurchase program, amount authorized                         500,000,000 1,100,000,000  
Shares repurchased and retired                             18,449,755
Shares repurchased and retired, average price per share                             $ 82.41
Stock repurchase program, remaining amount                             $ 279,600,000
v2.4.0.8
Summary Of Significant Accounting Policies (Schedule Of Inventories) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
Accounting Policies [Abstract]    
Finished goods $ 18,046 $ 13,509
Raw materials 6,425 5,517
Inventories, Total $ 24,471 $ 19,026
v2.4.0.8
Summary Of Significant Accounting Policies (Property And Equipment) (Details) (USD $)
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Property, Plant and Equipment [Line Items]      
Computer equipment $ 113,290,000 $ 93,326,000  
Office furniture and equipment 14,325,000 13,391,000  
Leasehold improvements 57,976,000 54,972,000  
Property and equipment, gross 185,591,000 161,689,000  
Accumulated depreciation and amortization (118,800,000) (98,167,000)  
Property and equipment, net 66,791,000 63,522,000  
Depreciation and amortization expense $ 24,700,000 $ 22,300,000 $ 19,000,000
Minimum [Member]
      
Property, Plant and Equipment [Line Items]      
Property and equipment, useful life 2 years    
Maximum [Member]
      
Property, Plant and Equipment [Line Items]      
Property and equipment, useful life 5 years    
v2.4.0.8
Summary Of Significant Accounting Policies (Stock-Based Compensation) (Details) (USD $)
 12 Months Ended 1 Months Ended 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2014
Other Employees [Member]
Sep. 30, 2014
Executive Officers And Board Of Directors [Member]
Nov. 30, 2013
Annual Equity Program [Member]
Nov. 30, 2012
Annual Equity Program [Member]
Nov. 30, 2011
Annual Equity Program [Member]
Oct. 31, 2014
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock-based compensation $ 127,156,000 $ 104,212,000 $ 95,348,000            
Unrecognized stock-based compensation cost $ 100,000,000                
Unrecognized stock-based compensation cost, period for recognition, years 2 years                
Approved RSUs to employees and executive officers pursuant to the Company's annual equity awards program           231,320 290,415 82,968 1,064,464
Estimated forfeiture rate for grants awarded to executive officers and board of directors       7.30% 6.60%        
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           4 years 4 years 3 years  
Portion of RSU grant subject to Company achieving specified quarterly revenue and EBITDA goals           0.125 0.25 0.5  
Percentage of quarterly performance stock grant based on achieving quarterly revenue goal           70.00%      
Percentage of quarterly performance stock grant based on achieving EBITDA goal           30.00%      
Percentage Of Achievement Threshold To Which The Goals Are Entitled           80.00%      
Percentage of over-achievement threshold to which the goals are entitled           100.00%      
Percentage of annual equity awards RSU grant subject to performance based vesting           37.50% 25.00%    
Percentage of annual equity awards RSU grant subject to performance based vesting in each period           12.50% 12.50%    
Percentage of quarterly revenue goal to be achieved for performance stock grant           80.00%      
Threshold percentage of targeted goals above which quarterly performance stock grant is paid linearly           80.00%      
Fair Value Assumptions                  
Risk-free interest rate 0.05% 0.06% 0.14%            
Expected dividend 0.00% 0.00% 0.00%            
Expected term 6 months 6 months 6 months            
Expected volatility 24.44% 42.92% 45.20%            
v2.4.0.8
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, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Accounting Policies [Abstract]                      
Net income $ 94,021 $ 79,473 $ 69,641 $ 68,048 $ 76,231 $ 68,178 $ 63,412 $ 69,493 $ 311,183 $ 277,314 $ 275,186
Weighted average shares outstanding - basic 73,817 74,812 75,508 77,438 78,353 78,516 78,601 78,789 75,395 78,565 79,135
Dilutive effect of common shares from stock options and restricted stock units                 697 571 645
Weighted average shares outstanding - diluted 74,366 75,369 76,244 77,822 78,674 78,864 79,114 79,278 76,092 79,136 79,780
Basic net income per share (USD per share) $ 1.27 $ 1.06 $ 0.92 $ 0.88 $ 0.97 $ 0.87 $ 0.81 $ 0.88 $ 4.13 $ 3.53 $ 3.48
Diluted net income per share (USD per share) $ 1.26 $ 1.05 $ 0.91 $ 0.87 $ 0.97 $ 0.86 $ 0.80 $ 0.88 $ 4.09 $ 3.50 $ 3.45
v2.4.0.8
Fair Value Measurements (Schedule Of Financial Assets Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Cash equivalents, fair value $ 43,618 $ 13,145
Available-for-sale securities 846,794  
Financial assets measured at fair value on a recurring basis, total 890,412 1,094,576
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 43,618 13,145
Financial assets measured at fair value on a recurring basis, total 43,618 13,145
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 846,794 1,078,395
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 0 3,036
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 205,698 125,212
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 205,698 125,212
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 43,430 72,164
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 43,430 72,164
Short-Term Investments [Member] | US Government Debt Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 5,006 5,000
Short-Term Investments [Member] | US Government Debt 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 5,006 5,000
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 109,743 150,074
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 109,743 150,074
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 325,282 260,318
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 325,282 260,318
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 24,582 24,371
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 24,582 24,371
Long-Term Investments [Member] | US Government Debt Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 7,407 14,798
Long-Term Investments [Member] | US Government Debt 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 7,407 14,798
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 123,087 426,458
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 123,087 426,458
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   3,036
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   3,036
Long-Term Investments [Member] | Foreign Government Debt Securities [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]    
Available-for-sale securities 2,559  
Long-Term Investments [Member] | Foreign Government Debt 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 $ 2,559  
v2.4.0.8
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, 2014
Sep. 30, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period $ 3,036 $ 4,750
Total (losses) gains realized or unrealized: Included in other comprehensive income 264 (14)
Settlements (3,300) (1,700)
Balance, end of period 0 3,036
Unrealized losses attributable to assets still held as of the end of the period $ 0 $ (14)
v2.4.0.8
Short-Term And Long-Term Investments (Schedule Of Short-Term And Long-Term Investments) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
Schedule of Investments [Line Items]    
Cost or Amortized Cost $ 847,176  
Fair Value 846,794  
Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 363,569 352,193
Gross Unrealized Gains 354 285
Gross Unrealized Losses (46) (28)
Fair Value 363,877 352,450
Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 483,607 729,348
Gross Unrealized Gains 309 744
Gross Unrealized Losses (999) (1,111)
Fair Value 482,917 728,981
Corporate Bonds And Notes [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 205,490 125,010
Gross Unrealized Gains 244 210
Gross Unrealized Losses (36) (8)
Fair Value 205,698 125,212
Corporate Bonds And Notes [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 325,896 260,345
Gross Unrealized Gains 208 363
Gross Unrealized Losses (822) (390)
Fair Value 325,282 260,318
Municipal Bonds And Notes [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 43,398 72,116
Gross Unrealized Gains 34 58
Gross Unrealized Losses (2) (10)
Fair Value 43,430 72,164
Municipal Bonds And Notes [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 24,559 24,332
Gross Unrealized Gains 31 44
Gross Unrealized Losses (8) (5)
Fair Value 24,582 24,371
US Government Debt Securities [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 4,996 4,998
Gross Unrealized Gains 10 2
Gross Unrealized Losses 0 0
Fair Value 5,006 5,000
US Government Debt Securities [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 7,377 14,755
Gross Unrealized Gains 30 43
Gross Unrealized Losses 0 0
Fair Value 7,407 14,798
Auction Rate Securities [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost   3,300
Gross Unrealized Gains   0
Gross Unrealized Losses   (264)
Fair Value   3,036
U.S. Government Agency Securities [Member] | Short-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 109,685 150,069
Gross Unrealized Gains 66 15
Gross Unrealized Losses (8) (10)
Fair Value 109,743 150,074
U.S. Government Agency Securities [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 123,207 426,616
Gross Unrealized Gains 40 294
Gross Unrealized Losses (160) (452)
Fair Value 123,087 426,458
Foreign Government Debt Securities [Member] | Long-Term Investments [Member]
    
Schedule of Investments [Line Items]    
Cost or Amortized Cost 2,568  
Gross Unrealized Gains 0  
Gross Unrealized Losses (9)  
Fair Value $ 2,559  
v2.4.0.8
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, 2014
Investments [Abstract]  
Cost or Amortized Cost, Fixed Maturities, One year or less $ 363,569
Cost or Amortized Cost, Fixed Maturities, Over one year 483,607
Cost or Amortized Cost 847,176
Fair Value, Fixed Maturities, One year or less 363,877
Fair Value, Fixed Maturities, Over one year 482,917
Fair Value $ 846,794
v2.4.0.8
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
Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months $ 369,443
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Aggregate Losses Accumulated In Investments (1,002)
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 34,779
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Aggregate Losses Accumulated In Investments (43)
Fair Value, Continuous Loss Position, Unrealized Loss, Total 404,222
Available-For-Sale Securities, Continuous Unrealized Loss Position, Aggregate Losses Accumulated In Investments (1,045)
Corporate Bonds And Notes [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months 262,771
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Aggregate Losses Accumulated In Investments (848)
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 7,804
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Aggregate Losses Accumulated In Investments (10)
Fair Value, Continuous Loss Position, Unrealized Loss, Total 270,575
Available-For-Sale Securities, Continuous Unrealized Loss Position, Aggregate Losses Accumulated In Investments (858)
Municipal Bonds And Notes [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months 14,649
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Aggregate Losses Accumulated In Investments (10)
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 0
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Aggregate Losses Accumulated In Investments 0
Fair Value, Continuous Loss Position, Unrealized Loss, Total 14,649
Available-For-Sale Securities, Continuous Unrealized Loss Position, Aggregate Losses Accumulated In Investments (10)
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 89,464
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Aggregate Losses Accumulated In Investments (135)
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 26,975
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Aggregate Losses Accumulated In Investments (33)
Fair Value, Continuous Loss Position, Unrealized Loss, Total 116,439
Available-For-Sale Securities, Continuous Unrealized Loss Position, Aggregate Losses Accumulated In Investments (168)
Foreign Government Debt Securities [Member]
  
Schedule of Available-for-sale Securities [Line Items]  
Fair Value, Continuous Loss Position, Unrealized Loss, Less Than 12 Months 2,559
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Aggregate Losses Accumulated In Investments (9)
Fair Value, Continuous Loss Position, Unrealized Loss, 12 Months or Greater 0
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Aggregate Losses Accumulated In Investments 0
Fair Value, Continuous Loss Position, Unrealized Loss, Total 2,559
Available-For-Sale Securities, Continuous Unrealized Loss Position, Aggregate Losses Accumulated In Investments $ (9)
v2.4.0.8
Business Combinations Business Combinations (Acquisition of Defense.Net, Inc.) (Details) (USD $)
 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
May 22, 2014
Defense.net [Member]
May 22, 2014
Developed Technology Rights [Member]
Defense.net [Member]
May 22, 2014
Customer Relationships [Member]
Defense.net [Member]
Business Acquisition [Line Items]            
Consideration transferred       $ 49,700,000    
Transaction costs       300,000    
Cash       220,000    
Current assets       249,000    
Property and equipment, net       2,353,000    
Deferred tax assets, net       1,162,000    
Developed technology, customer relationships and other intangibles       6,682,000    
Goodwill 556,957,000 523,727,000 348,239,000 39,346,000    
Total assets acquired       50,012,000    
Accrued liabilities       (256,000)    
Deferred revenue       (97,000)    
Total liabilities assumed       (353,000)    
Net assets acquired       49,659,000    
Finite-lived intangible assets acquired         $ 3,600,000 $ 3,100,000
Discount rate       15.00%    
Weighted average useful life       6 years 219 days    
v2.4.0.8
Balance Sheet Details (Schedule Of Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Goodwill [Roll Forward]    
Goodwill, Beginning Balance $ 523,727 $ 348,239
Other   (9)
Adjustment to goodwill (6,116)  
Goodwill, Ending Balance 556,957 523,727
Line Rate Systems [Member]
    
Goodwill [Roll Forward]    
Acquisition   99,560
Versafe [Member]
    
Goodwill [Roll Forward]    
Acquisition   75,937
Defense.net [Member]
    
Goodwill [Roll Forward]    
Acquisition $ 39,346  
v2.4.0.8
Balance Sheet Details (Schedule Of Other Assets) (Details) (USD $)
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Balance Sheet Details [Abstract]      
Acquired and developed technology and software development costs $ 55,133,000 $ 59,453,000  
Deposits and other 19,072,000 15,251,000  
Restricted cash 798,000 860,000  
Other assets 75,003,000 75,564,000  
Amortization expense related to other assets $ 9,500,000 $ 4,300,000 $ 6,400,000
v2.4.0.8
Balance Sheet Details (Schedule Of Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 120,921 $ 114,239
Accumulated Amortization (55,658) (46,108)
Net Carrying Amount 65,263 68,131
Developed Technology [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 103,031 99,463
Accumulated Amortization (47,899) (40,010)
Net Carrying Amount 55,132 59,453
Customer Relationships [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 10,941 8,399
Accumulated Amortization (3,778) (3,123)
Net Carrying Amount 7,163 5,276
Patents And Trademarks [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,044 3,044
Accumulated Amortization (2,587) (2,525)
Net Carrying Amount 457 519
Trade Names [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1,173 1,173
Accumulated Amortization (445) (250)
Net Carrying Amount 728 923
Non-Compete Covenants [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,732 2,160
Accumulated Amortization (949) (200)
Net Carrying Amount $ 1,783 $ 1,960
v2.4.0.8
Balance Sheet Details (Schedule Of Estimated Amortization Expense For Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Balance Sheet Details [Abstract]  
2015 $ 12,611
2016 12,516
2017 9,907
2018 8,507
2019 4,336
Total estimated amortization expense $ 47,877
v2.4.0.8
Balance Sheet Details (Schedule Of Accrued Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
Balance Sheet Details [Abstract]    
Payroll and benefits $ 84,055 $ 73,461
Sales and marketing 2,221 3,746
Income tax accruals 8,615 4,196
Other 13,881 11,205
Total accrued liabilities $ 108,772 $ 92,608
v2.4.0.8
Income Taxes (Narrative) (Details) (USD $)
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Operating Loss Carryforwards [Line Items]      
Valuation Allowance, Deferred Tax Asset, Change in Amount $ 1,800,000 $ 5,200,000  
Undistributed earnings from international subsidiaries 27,600,000    
Interest expense related to uncertain tax positions 5,000 244,000 250,000
Unrecognized tax benefits, interest expenses accrued 436,000 431,000  
Foreign [Member]
      
Operating Loss Carryforwards [Line Items]      
Operating loss carry-forwards, net 27,000,000    
Federal [Member]
      
Operating Loss Carryforwards [Line Items]      
Operating loss carry-forwards, net $ 8,700,000    
v2.4.0.8
Income Taxes (Components Of Income Before Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Income Tax Disclosure [Abstract]                      
United States                 $ 492,577 $ 431,833 $ 421,346
International                 4,765 6,259 10,868
Income before income taxes $ 149,804 $ 127,272 $ 110,887 $ 109,379 $ 125,913 $ 106,951 $ 94,594 $ 110,634 $ 497,342 $ 438,092 $ 432,214
v2.4.0.8
Income Taxes (Schedule Of Provision For Income Taxes (Benefit)) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Income Tax Disclosure [Abstract]                      
Current, U.S. federal                 $ 164,994 $ 138,372 $ 147,774
Current, State                 15,462 14,322 10,733
Current, Foreign                 13,287 6,633 4,218
Total                 193,743 159,327 162,725
Deferred, U.S. federal                 (5,778) 1,310 (7,320)
Deferred, State                 (83) (203) 187
Deferred, Foreign                 (1,723) 344 1,436
Total                 (7,584) 1,451 (5,697)
Income taxes (benefit) $ 55,783 $ 47,799 $ 41,246 $ 41,331 $ 49,682 $ 38,773 $ 31,182 $ 41,141 $ 186,159 $ 160,778 $ 157,028
v2.4.0.8
Income Taxes (Schedule Of Effective Tax Rate Differs From The U.S. Federal Statutory Rate) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Income Tax Disclosure [Abstract]                      
Income tax provision at statutory rate                 $ 174,070 $ 153,332 $ 151,275
State taxes, net of federal benefit                 12,901 10,944 8,733
Foreign operations                 5,050 4,786 1,850
Research and development and other credits                 (6,397) (10,649) (3,537)
Domestic manufacturing deduction                 (15,514) (14,047) (12,539)
Stock-based and other compensation                 14,583 15,286 10,501
Other                 1,466 1,126 745
Income taxes (benefit) $ 55,783 $ 47,799 $ 41,246 $ 41,331 $ 49,682 $ 38,773 $ 31,182 $ 41,141 $ 186,159 $ 160,778 $ 157,028
v2.4.0.8
Income Taxes (Schedule Of Tax Effects To Deferred Tax Assets And Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Sep. 30, 2013
Income Tax Disclosure [Abstract]    
Net operating loss carry-forwards $ 8,245 $ 10,072
Allowance for doubtful accounts 1,724 1,112
Accrued compensation and benefits 8,273 7,272
Inventories and related reserves 1,139 1,120
Stock-based compensation 7,295 5,933
Deferred revenue 30,662 26,277
Other accruals and reserves 13,473 10,131
Tax credit carryforwards 2,852 2,122
Depreciation 738 0
Total deferred tax assets before deferred liabilities 74,401 64,039
Valuation allowance (7,198) (5,390)
Deferred tax assets, net of valuation allowance 67,203 58,649
Purchased intangibles and other (24,108) (21,567)
Depreciation 0 (3,697)
Total deferred tax liabilities (24,108) (25,264)
Net deferred tax assets $ 43,095 $ 33,385
v2.4.0.8
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, 2014
Sep. 30, 2013
Sep. 30, 2012
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance, beginning of period $ 7,302 $ 5,452 $ 5,952
Gross increases related to prior period tax positions 901 1,231 79
Gross decreases related to prior period tax positions (224) (142) (280)
Gross increases related to current period tax positions 1,081 1,957 702
Decreases relating to settlements with tax authorities (2,589) 0 (3)
Reductions due to lapses of statute of limitations (77) (1,196) (998)
Balance, end of period $ 6,394 $ 7,302 $ 5,452
v2.4.0.8
Stock-Based Compensation (Narrative) (Details) (USD $)
 12 Months Ended 1 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2014
1998 Equity Incentive Plan [Member]
Sep. 30, 2014
2011 Employee Stock Purchase Plan [Member]
Sep. 30, 2014
Acopia Plan [Member]
Sep. 30, 2007
Acopia Plan [Member]
Feb. 29, 2012
Traffix Plan [Member]
Sep. 30, 2014
Traffix Plan [Member]
Sep. 30, 2014
Traffix 2007 Plan [Member] [Member]
Mar. 31, 2014
Traffix 2007 Plan [Member] [Member]
Feb. 28, 2013
LineRate Acquisition Plan [Member]
Sep. 30, 2014
LineRate Acquisition Plan [Member]
Sep. 30, 2014
LineRate 2009 Plan [Member] [Member]
Mar. 31, 2013
LineRate 2009 Plan [Member] [Member]
Sep. 30, 2014
Versafe Acquisition Plan [Member]
Sep. 30, 2013
Versafe Acquisition Plan [Member]
Sep. 30, 2014
Defense.Net Acquisition Equity Incentive Plan [Member]
Jun. 30, 2014
Defense.Net Acquisition Equity Incentive Plan [Member]
Sep. 30, 2014
Defense.Net, Inc. 2012 Stock Option and Grant Plan [Member]
Mar. 31, 2013
Defense.Net, Inc. 2012 Stock Option and Grant Plan [Member]
Sep. 30, 2014
2014 Equity Incentive Plan [Member]
Sep. 30, 2014
Stock Options [Member]
Sep. 30, 2014
Restricted Stock Unit [Member]
Sep. 30, 2013
Restricted Stock Unit [Member]
Sep. 30, 2012
Restricted Stock Unit [Member]
Sep. 30, 2014
Minimum [Member]
Restricted Stock Unit [Member]
Sep. 30, 2014
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%   50.00%       50.00%            
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period                               42,642   23,000   10,088   1,719,690            
Shares available for purchase under stock option plan       6,800   11,853       19,464       22,877           9,774                
Common stock reserved for issuance         6,000,000   2,230,703 75,000     106,829 100,000     201,478   60,000   30,000   84,375 15,380,000            
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%                                              
Stock units issued                                               1,719,690        
Outstanding stock units                 20,156       68,773     35,892   23,000       1,290,782   1,290,782 926,035      
Stock options issued during period 10,088                                                      
Shares available for award         498,605                         7,000   46,757   3,565,538            
Weighted average fair value of restricted stock units granted                                               $ 83.81 $ 86.69 $ 99.63    
Fair market value of restricted stock vested                                               128,900,000 97,500,000 93,800,000    
Total intrinsic value of options exercised $ 14,100,000 $ 9,800,000 $ 13,200,000                                                  
v2.4.0.8
Stock-Based Compensation (Schedule Of Summary Of Restricted Stock Unit Activity) (Details) (Restricted Stock Unit [Member], USD $)
 12 Months Ended
Sep. 30, 2014
Restricted Stock Unit [Member]
  
Outstanding Stock Units  
Outstanding Stock Units, Beginning balance 926,035
Outstanding Stock Units, Units granted 1,719,690
Outstanding Stock Units, Units vested (1,184,877)
Outstanding Stock Units, Units cancelled (170,066)
Outstanding Stock Units, Ending balance 1,290,782
Weighted Average Grant Date Fair Value  
Weighted Average Grant Date Fair Value, Beginning balance $ 95.47
Weighted Average Grant Date Fair Value, Units granted $ 83.53
Weighted Average Grant Date Fair Value, Units vested $ 104.87
Weighted Average Grant Date Fair Value, Units cancelled $ 90.51
Weighted Average Grant Date Fair Value, Ending balance $ 88.44
v2.4.0.8
Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $)
 12 Months Ended
Sep. 30, 2014
Number of Shares  
Number of Shares, Beginning balance 210,219
Number of Shares, Options granted 10,088
Number of Shares, Options exercised (149,134)
Number of Shares, Options cancelled (405)
Number of Shares, Ending balance 70,768
Weighted Average Exercise Price per Share  
Weighted Average Exercise Price per Share, Beginning balance $ 9.80
Weighted Average Exercise Price per Share, Options granted $ 3.68
Weighted Average Exercise Price per Share, Options exercised $ 9.53
Weighted Average Exercise Price per Share, Options cancelled $ 3.83
Weighted Average Exercise Price per Share, Ending balance $ 9.53
v2.4.0.8
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, 2014
Sep. 30, 2013
Share-based Compensation [Abstract]    
Stock options outstanding 70,768 210,219
Stock options outstanding, Weighted Average Remaining Contractual Life (in Years) 6 years 29 days  
Stock options outstanding, Weighted Average Exercise Price per Share $ 9.53 $ 9.80
Stock options outstanding, Aggregate Intrinsic Value $ 7,728 [1]  
Exercisable, Number of Shares 29,435  
Exercisable, Weighted Average Remaining Contractual Life (in Years) 3 years 10 months 2 days  
Exercisable, Weighted Average Exercise Price per Share $ 19.23  
Exercisable, Aggregate Intrinsic Value 2,929 [1]  
Vested and expected to vest, Number of Shares 68,423  
Vested and expected to vest, Weighted Average Remaining Contractual Life (in Years) 6 years 3 days  
Vested and expected to vest, Weighted Average Exercise Price per Share $ 9.77  
Vested and expected to vest, Aggregate Intrinsic Value $ 7,456 [1]  
[1] Aggregate intrinsic value represents the difference between the fair value of the Company’s common stock underlying these options at September 30, 2014 and the related exercise prices.
v2.4.0.8
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, 2014
Equity Based Awards [Member]
  
Awards Available for Grant  
Awards Available for Grant, Beginning balance 2,198,736
Awards Available for Grant, Granted (1,795,420)
Awards Available for Grant, Cancelled 178,554
Additional shares reserved (terminated), net 3,037,425
Awards Available for Grant, Ending balance 3,619,295
v2.4.0.8
Commitments And Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
 1 Months Ended 12 Months Ended 1 Months Ended
Apr. 30, 2010
building
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Oct. 31, 2006
333 Elliott West [Member]
sqft
Commitments And Contingencies [Line Items]          
Office space occupied under lease agreement         137,000
Number of buildings in the amended and restated lease 3        
Lease expiration date   Dec. 31, 2022      
Rent expense under non-cancelable operating leases   $ 28.6 $ 26.5 $ 21.6  
Contract manufacturers' purchase obligations   $ 24.3      
v2.4.0.8
Commitments And Contingencies (Schedule Of Future Minimum Operating Lease Payments, Net Of Sublease Income) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Gross Lease Payments  
Gross Lease Payments, 2015 $ 22,368
Gross Lease Payments, 2016 20,188
Gross Lease Payments, 2017 18,444
Gross Lease Payments, 2018 16,614
Gross Lease Payments, 2019 12,818
Gross Lease Payments, Thereafter 32,334
Gross Lease Payments, Total 122,766
Sublease Income  
Sublease Income, 2015 4,032
Sublease Income, 2016 3,992
Sublease Income, 2017 4,102
Sublease Income, 2018 2,770
Sublease Income, 2019 0
Sublease Income, Thereafter 0
Sublease Income, Total 14,896
Net Lease Payments  
Net Lease Payments, 2015 18,336
Net Lease Payments, 2016 16,196
Net Lease Payments, 2017 14,342
Net Lease Payments, 2018 13,844
Net Lease Payments, 2019 12,818
Net Lease Payments, Thereafter 32,334
Net Lease Payments, Total $ 107,870
v2.4.0.8
Employee Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]      
Contributions by the Company to the plan $ 7.2 $ 6.4 $ 5.7
Employer contribution, vesting period 4 years    
v2.4.0.8
Geographic Sales And Significant Customers (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Segment Reporting Information [Line Items]                      
Revenue $ 465,266 $ 440,285 $ 420,043 $ 406,452 $ 395,329 $ 370,302 $ 350,232 $ 365,451 $ 1,732,046 $ 1,481,314 $ 1,377,247
United States [Member]
                      
Segment Reporting Information [Line Items]                      
Revenue                 896,010 777,516 729,238
Other Americas [Member]
                      
Segment Reporting Information [Line Items]                      
Revenue                 89,786 74,391 64,144
Americas [Member]
                      
Segment Reporting Information [Line Items]                      
Revenue                 985,796 851,907 793,382
EMEA [Member]
                      
Segment Reporting Information [Line Items]                      
Revenue                 404,300 327,109 294,191
Japan [Member]
                      
Segment Reporting Information [Line Items]                      
Revenue                 90,131 83,051 90,521
Asia Pacific [Member]
                      
Segment Reporting Information [Line Items]                      
Revenue                 $ 251,819 $ 219,247 $ 199,153
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]
                      
Segment Reporting Information [Line Items]                      
Number of distributors                 1    
Geographic Concentration Risk [Member] | Accounts Receivable [Member]
                      
Segment Reporting Information [Line Items]                      
Number of distributors                 2 1  
Customer One [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]
                      
Segment Reporting Information [Line Items]                      
Concentration risk percentage                 14.00% 16.60% 17.10%
Customer Two [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]
                      
Segment Reporting Information [Line Items]                      
Concentration risk percentage                 17.40% 15.70% 13.80%
Customer Two [Member] | Geographic Concentration Risk [Member] | Accounts Receivable [Member]
                      
Segment Reporting Information [Line Items]                      
Concentration risk percentage                 14.20% 18.60%  
Customer Three [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]
                      
Segment Reporting Information [Line Items]                      
Concentration risk percentage                 14.50% 11.80%  
Customer Three [Member] | Geographic Concentration Risk [Member] | Accounts Receivable [Member]
                      
Segment Reporting Information [Line Items]                      
Concentration risk percentage                 19.80%    
v2.4.0.8
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, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2012
Quarterly Financial Data [Abstract]                      
Products $ 255,461 $ 236,933 $ 225,135 $ 218,601 $ 212,291 $ 196,746 $ 185,107 $ 204,712 $ 936,130 $ 798,856 $ 818,555
Services 209,805 203,352 194,908 187,851 183,038 173,556 165,125 160,739 795,916 682,458 558,692
Total 465,266 440,285 420,043 406,452 395,329 370,302 350,232 365,451 1,732,046 1,481,314 1,377,247
Products 43,351 40,387 37,806 37,244 35,151 32,350 29,773 31,792 158,788 129,066 137,102
Services 38,601 39,075 37,856 35,639 31,792 32,567 30,529 29,093 151,171 123,981 99,066
Total 81,952 79,462 75,662 72,883 66,943 64,917 60,302 60,885 309,959 253,047 236,168
Gross profit 383,314 360,823 344,381 333,569 328,386 305,385 289,930 304,566 1,422,087 1,228,267 1,141,079
Sales and marketing 143,284 139,945 140,252 134,803 119,836 121,906 119,031 122,268 558,284 483,041 445,595
Research and development 65,401 67,026 67,232 64,133 54,464 54,075 52,534 48,541 263,792 209,614 177,406
General and administrative 27,148 27,773 26,033 25,500 26,512 25,327 25,889 24,673 106,454 102,401 91,775
Loss on facility sublease 0 0 0 0 2,393 0 0 0 0 2,393 0
Total 235,833 234,744 233,517 224,436 203,205 201,308 197,454 195,482 928,530 797,449 714,776
Income from operations 147,481 126,079 110,864 109,133 125,181 104,077 92,476 109,084 493,557 430,818 426,303
Other income, net 2,323 1,193 23 246 732 2,874 2,118 1,550 3,785 7,274 5,911
Income before income taxes 149,804 127,272 110,887 109,379 125,913 106,951 94,594 110,634 497,342 438,092 432,214
Provision for income taxes 55,783 47,799 41,246 41,331 49,682 38,773 31,182 41,141 186,159 160,778 157,028
Net income $ 94,021 $ 79,473 $ 69,641 $ 68,048 $ 76,231 $ 68,178 $ 63,412 $ 69,493 $ 311,183 $ 277,314 $ 275,186
Net income per share - basic (USD per share) $ 1.27 $ 1.06 $ 0.92 $ 0.88 $ 0.97 $ 0.87 $ 0.81 $ 0.88 $ 4.13 $ 3.53 $ 3.48
Weighted average shares - basic (shares) 73,817 74,812 75,508 77,438 78,353 78,516 78,601 78,789 75,395 78,565 79,135
Net income per share - diluted (USD per share) $ 1.26 $ 1.05 $ 0.91 $ 0.87 $ 0.97 $ 0.86 $ 0.80 $ 0.88 $ 4.09 $ 3.50 $ 3.45
Weighted average shares - diluted (shares) 74,366 75,369 76,244 77,822 78,674 78,864 79,114 79,278 76,092 79,136 79,780