Accounts Receivable Financing	9 Months Ended
Sep. 30, 2013
Accounts Receivable Financing	5. ACCOUNTS RECEIVABLE FINANCING In 2012, the Company launched a customer financing program and entered into a financing agreement (the “Financing Agreement”) with an unrelated third party financing company. The program offers channel partners, distributors, and resellers direct or indirect financing on their purchases of the Company’s products and services. Pursuant to the terms of the Financing Agreement, the Company transfers accounts receivable from these customers, without recourse, to the financing company. In return, the Company agrees to pay the financing company a fee based on a pre-defined percentage of the transaction amount financed. If the transaction meets the applicable criteria under ASC 860 and is accounted for as a sale of financial assets, the accounts receivable are excluded from the balance sheet upon the third party financing company’s payment remittance to the Company. In certain legal jurisdictions, the arrangement fees that involve maintenance services or products bundled with maintenance at one price do not qualify as a sale of financial assets in accordance with the authoritative guidance. Accordingly, accounts receivable related to these arrangements are accounted for as a secured borrowing in accordance with ASC 860, and the Company records a liability for any cash received, while maintaining the associated accounts receivable balance until the end-customer remits payment to the third-party financing company. In the three months ended September 30, 2013, total transactions entered pursuant to the terms of the Financing Agreement were approximately $32.6 million, of which $27.9 million was related to the sale of the financial assets arrangement. In the nine months ended September 30, 2013, total transactions entered were approximately $83.3 million, of which $73.1 million was related to the sale of the financial assets arrangement. In the three months ended September 30, 2012, total transactions entered were $6.8 million, of which $5.4 million was related to the sale of the financial assets arrangement. In the nine months ended September 30, 2012, total transactions entered were $7.2 million, of which $5.4 million was related to the sale of the financial assets arrangement. The financing of these receivables accelerated the collection of the Company’s cash and reduced its credit exposure. The amount due from the financing company as of September 30, 2013 and December 31, 2012 was approximately $20.6 million and $15.4 million, respectively, of which $18.3 million and $12.4 million, respectively, was related to the accounts receivable sold, and is included in “Trade receivables” in the Company’s condensed consolidated balance sheets. Fees incurred pursuant to the Financing Agreement were approximately $0.5 million and $1.2 million for the three and nine months ended September 30, 2013, respectively, and were less than $0.1 million in both the three and nine months ended September 30, 2012. Those fees were recorded as reductions to revenues.

5. ACCOUNTS RECEIVABLE FINANCING

In 2012, the Company launched a customer financing program and entered into a financing agreement (the “Financing Agreement”) with an unrelated third party financing company. The program offers channel partners, distributors, and resellers direct or indirect financing on their purchases of the Company’s products and services. Pursuant to the terms of the Financing Agreement, the Company transfers accounts receivable from these customers, without recourse, to the financing company. In return, the Company agrees to pay the financing company a fee based on a pre-defined percentage of the transaction amount financed. If the transaction meets the applicable criteria under ASC 860 and is accounted for as a sale of financial assets, the accounts receivable are excluded from the balance sheet upon the third party financing company’s payment remittance to the Company. In certain legal jurisdictions, the arrangement fees that involve maintenance services or products bundled with maintenance at one price do not qualify as a sale of financial assets in accordance with the authoritative guidance. Accordingly, accounts receivable related to these arrangements are accounted for as a secured borrowing in accordance with ASC 860, and the Company records a liability for any cash received, while maintaining the associated accounts receivable balance until the end-customer remits payment to the third-party financing company.

In the three months ended September 30, 2013, total transactions entered pursuant to the terms of the Financing Agreement were approximately $32.6 million, of which $27.9 million was related to the sale of the financial assets arrangement. In the nine months ended September 30, 2013, total transactions entered were approximately $83.3 million, of which $73.1 million was related to the sale of the financial assets arrangement. In the three months ended September 30, 2012, total transactions entered were $6.8 million, of which $5.4 million was related to the sale of the financial assets arrangement. In the nine months ended September 30, 2012, total transactions entered were $7.2 million, of which $5.4 million was related to the sale of the financial assets arrangement. The financing of these receivables accelerated the collection of the Company’s cash and reduced its credit exposure. The amount due from the financing company as of September 30, 2013 and December 31, 2012 was approximately $20.6 million and $15.4 million, respectively, of which $18.3 million and $12.4 million, respectively, was related to the accounts receivable sold, and is included in “Trade receivables” in the Company’s condensed consolidated balance sheets. Fees incurred pursuant to the Financing Agreement were approximately $0.5 million and $1.2 million for the three and nine months ended September 30, 2013, respectively, and were less than $0.1 million in both the three and nine months ended September 30, 2012. Those fees were recorded as reductions to revenues.