Net Income per Share (Notes)

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Net Income per Share

Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all dilutive potential shares that were outstanding during the period. Dilutive potential common shares consist of common shares issuable upon exercise of stock options, employee stock purchase plan, vesting of restricted stock units (“RSUs”), and vesting of performance share awards (“PSAs”).

The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks common stockholders (in millions, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Numerator:
Net income attributable to Juniper Networks	$	83.7	$	134.5	$	329.0	$	428.2
Denominator:
Weighted-average shares used to compute basic net income per share	529.3		520.6		531.0		522.1
Effect of dilutive securities:
Employee stock awards	7.3		14.3		13.1		15.1
Weighted-average shares used to compute diluted net income per share	536.6		534.9		544.1		537.2
Net income per share attributable to Juniper Networks common stockholders:
Basic	$	0.16	$	0.26	$	0.62	$	0.82
Diluted	$	0.16	$	0.25	$	0.60	$	0.80

Employee stock options, RSUs, and PSAs covering approximately 29.8 million and 12.8 million shares of the Company's common stock in the three and nine months ended September 30, 2011, respectively, and 16.8 million and 16.4 million shares for the three and nine months ended September 30, 2010, respectively, were outstanding, but were not included in the computation of diluted earnings per share. The Company excludes outstanding stock options with exercise prices that are greater than the average market price and RSUs with grant date fair values that are greater than the average market price from the calculation of diluted net income per share because their effect would be anti-dilutive. The Company includes the common shares underlying PSAs in the calculation of diluted net income per share when they become contingently issuable and excludes such shares when they are not contingently issuable.