The tables below set forth selected unaudited financial data for each quarter of the two years ended December 31, 2015 (in millions, except per share amounts):



Year Ended December 31, 2015	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net revenues:
Product	$	764.1		$	899.7		$	925.4		$	973.9
Service	303.3			322.5			323.2			345.7
Total net revenues	1,067.4			1,222.2			1,248.6			1,319.6
Cost of revenues:
Product	288.8			311.7			322.6			346.5
Service	121.3			129.0			128.6			130.7
Total cost of revenues	410.1			440.7			451.2			477.2
Gross margin	657.3			781.5			797.4			842.4
Operating expenses:
Research and development	248.7			251.6			247.0			247.2
Sales and marketing	220.2			232.4			235.3			255.9
General and administrative	55.2			56.3			57.1			60.3
Restructuring and other charges (benefit)	1.4			(1.9		)	—			(0.1		)
Total operating expenses	525.5			538.4			539.4			563.3
Operating income	131.8			243.1			258.0			279.1
Other expense, net⁽¹⁾⁽³⁾	(15.8		)	(17.1		)	(8.4		)	(18.5		)
Income before income taxes	116.0			226.0			249.6			260.6
Income tax provision⁽²⁾	35.8			68.0			51.9			62.8
Net income	$	80.2		$	158.0		$	197.7		$	197.8

Net income per share:⁽⁴⁾
Basic	$	0.20		$	0.41		$	0.52		$	0.52
Diluted	$	0.19		$	0.40		$	0.51		$	0.51
Cash dividends declared per common stock⁽⁵⁾	$	0.10		$	0.10		$	0.10		$	0.10

_______________________________


⁽¹⁾	During the first quarter of 2015, the Company issued $300.0 million aggregate principal amount of 3.30% senior notes due 2020 and $300.0 million aggregate principal amount of 4.35% senior notes due 2025. As a result, the Company recorded interest expense of $19.1 million, related to long-term debt issued in 2015 in other expense, net during the year ended December 31, 2015.


⁽²⁾	Includes approximately $13.2 million net benefit of cumulative adjustment related to the change in treatment of share-based compensation as a result of the U.S. Tax Court decision in Altera Corporation et al., or Altera, v. Commissioner. See Note 14, Income Taxes, in Notes to the Consolidated Financial Statements in Item 8 of Part II of this Report for further information.


⁽³⁾	During the fourth quarter of 2015, the Company recorded a gain on privately held investments of $7.3 million in other expense, net.


⁽⁴⁾	Net income per share is computed independently. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year or any cumulative interim period.


⁽⁵⁾	On January 27, 2015, April 23, 2015, July 23, 2015 and on October 22, 2015, the company declared a quarterly cash dividend of $0.10 per share of common stock to stockholders on record as of the close of business March 3, 2015, June 2, 2015, September 1, 2015, and December 1, 2015, respectively.



Year Ended December 31, 2014	First Quarter			Second Quarter		Third Quarter			Fourth Quarter
Net revenues:
Product	$	876.0		$	929.2	$	809.5		$	794.0
Service	294.1			300.3		316.4			307.6
Total net revenues	1,170.1			1,229.5		1,125.9			1,101.6
Cost of revenues:
Product	326.6			359.3		290.0			310.9
Service	123.4			122.0		121.1			115.6
Total cost of revenues⁽¹⁾	450.0			481.3		411.1			426.5
Gross margin	720.1			748.2		714.8			675.1
Operating expenses:
Research and development	264.0			255.5		253.2			233.5
Sales and marketing	273.4			258.0		249.2			243.0
General and administrative	74.9			60.6		55.0			40.6
Restructuring and other charges (benefits)⁽¹⁾	114.0			58.2		(15.0		)	9.8
Impairment of goodwill⁽²⁾	—			—		—			850.0
Total operating expenses	726.3			632.3		542.4			1,376.9
Operating (loss) income	(6.2		)	115.9		172.4			(701.8		)
Other income (expense), net⁽³⁾	154.2			178.6		(6.8		)	7.4
Income (loss) before income taxes	148.0			294.5		165.6			(694.4		)
Income tax provision	37.4			73.4		62.0			75.2
Net income (loss)	$	110.6		$	221.1	$	103.6		$	(769.6	)

Net income (loss) per share:⁽⁴⁾
Basic	$	0.23		$	0.47	$	0.23		$	(1.81	)
Diluted	$	0.22		$	0.46	$	0.23		$	(1.81	)
Cash dividends declared per common stock⁽⁵⁾	$	—		$	—	$	0.10		$	0.10

_______________________________

⁽¹⁾

In the first quarter of 2014, the company initiated a 2014 Restructuring Plan, which consisted of $84.7 million asset write-downs, $28.0 million of severance costs, and $0.8 million of contract terminations that were recorded in restructuring and other charges. In addition, the Company recorded inventory write-downs related to the acceleration of the end-of-service life of certain products totaling $8.4 million to cost of revenues. In the second quarter, the Company recorded $9.9 million of severance costs, $37.6 million of facility consolidation and closures, $8.9 million of asset write-downs, and $1.5 million of contract terminations that were recorded to restructuring and other charges. The Company also recorded inventory write-downs of $11.5 million and a charge related to products with contract manufacturers of $2.3 million for acceleration of the end-of-life service of certain products to cost of revenues. In the third quarter, the Company recorded $7.1 million of severance costs, a benefit of $25.0 million of facility consolidation and closures as a result of a lease assignment, and $2.9 million of asset write-downs, that were recorded to restructuring and other (credit) charges. In the fourth quarter, the Company recorded $6.9 million in severance costs, $1.6 million of facility consolidation and closures, and $20.6 million in asset impairment and write-downs.


⁽²⁾	During the fourth quarter of 2014, the Company recorded an $850.0 million goodwill impairment charge related to its Security reporting unit.

⁽³⁾

In the first quarter of 2014, the Company recorded a gain of $163.0 million related to the sale of investments which were converted from privately-held investments to publicly-traded equity upon initial public offering. In the second quarter, the Company entered into a settlement agreement with Palo Alto Networks, which resulted in a realized gain on legal settlement of $195.3 million, net of legal fees. All such Palo Alto Networks securities were sold in the third quarter, and the Company recorded an additional $0.8 million gain. In the fourth quarter, the Company recorded a gain of $19.6 million on the sale of Junos Pulse.


⁽⁴⁾	Net income (loss) per share is computed independently. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year or any cumulative interim period.


⁽⁵⁾	On July 22, 2014 and October 23, 2014 the company declared a quarterly cash dividend of $0.10 per share of common stock to stockholders on record as of the close of business September 2, 2014 and December 2, 2014, respectively.