Business Combination (Notes)

3 Months Ended

Mar. 31, 2012

Business Combinations [Abstract]

Business Combination [Text Block]

Business Combinations

The Company's consolidated financial statements include the operating results of acquired businesses from the date of each acquisition. Pro forma results of operations for these acquisitions have not been presented as the financial impact to the Company's consolidated results of operations, both individually and in aggregate, is not material.

Q1'12 Acquisitions

In the three months ended March 31, 2012, the Company completed two acquisitions. The fair values of certain tangible assets and liabilities acquired, income based taxes, and residual goodwill are not yet finalized and subject to change. The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired at the acquisition date during the measurement period. Measurement period adjustments determined to be material will be applied retrospectively to the period of acquisition.

On February 13, 2012, the Company acquired 100% of the equity securities of Mykonos Software, Inc ("Mykonos") for $82.6 million in cash. The acquisition of Mykonos is intended to extend Juniper's security portfolio with an intrusion deception system capable of detecting an attacker before an attack is in process. In connection with this acquisition, the Company acquired net liabilities of $0.8 million, and recognized goodwill of $59.1 million, which was assigned to the SSD segment.

On March 8, 2012, the Company acquired a source code license and patent joint-ownership related to the service management layer of BitGravity, Inc ("BitGravity") Content Delivery Network ("CDN") technology for $13.0 million in cash. The transaction complements the Company's Media Flow Solution and content and media delivery strategy, to enables service providers, on-line media companies, and content delivery networks to deliver on-line content more cost-effectively while simultaneously improving the end-user experience.In connection with this acquisition, the Company acquired net assets of $0.1 million, and recognized goodwill of $0.5 million, which was assigned to the SSD segment.

The following table presents the preliminary purchase consideration allocations for these acquisitions, including cash and cash equivalents acquired (in millions):

	Q1'12 Acquisitions
	Mykonos			BitGravity		Total
Net tangible assets/(liabilities) acquired	$	(0.8	)	$	0.1	$	(0.7	)
Intangible assets acquired	24.3			12.4		36.7
Goodwill	59.1			0.5		59.6
Total	$	82.6		$	13.0	$	95.6

The Company recognized $1.1 million and $5.1 million of acquisition-related costs during the first quarter of 2012 and 2011, respectively. These acquisition related charges were expensed in the period incurred and reported in the Company's condensed consolidated statements of comprehensive income within cost of revenues and operating expenses.

The goodwill recognized is attributable primarily to expected synergies. None of the goodwill is deductible for U.S. federal income tax purposes for the acquisitions completed during the first quarter of 2012.

Intangible Assets Acquired

The following table presents details of the intangible assets acquired through the business combinations completed during the first quarter of 2012 (in millions, except years):

	Q1'12 Acquisitions
	Mykonos			BitGravity
	Estimated Useful Life (In Years)	Amount		Estimated Useful Life (In Years)	Amount
Existing technology	6	$	19.3	3	$	12.4
Trade name and trademarks	7	1.0		—	—
In-process research and development	—	4.0		—	—
Total		$	24.3		$	12.4

Acquired in-process research and development (“IPR&D”) consists of existing research and development projects at the time of the acquisition. Projects that qualify as IPR&D assets represent those that have not yet reached technological feasibility and have no alternative future use. After initial recognition, acquired IPR&D assets are accounted for as indefinite-lived intangible assets. Development costs incurred after acquisition on acquired development projects are expensed as incurred. Upon completion of development, acquired IPR&D assets are considered amortizable intangible assets. If the IPR&D project is abandoned, the Company writes off the related purchased intangible asset in the period it is abandoned.