Arista Networks (ANET) 10-Q5 Aug 202020 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2020	Jul. 29, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-36468
Entity Registrant Name	Arista Networks, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1751121
Entity Address, Address Line One	5453 Great America Parkway
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	(408)
Local Phone Number	547-5500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ANET
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		76,025,600
Entity Central Index Key	0001596532
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 800,182	$ 1,111,286
Marketable securities	1,981,589	1,613,082
Accounts receivable, net of rebates and allowances of $1,780 and $6,160, respectively	383,225	391,987
Inventories	326,997	243,825
Prepaid expenses and other current assets	84,885	111,456
Total current assets	3,576,878	3,471,636
Property and equipment, net	35,263	39,273
Acquisition-related intangible assets, net	83,562	45,235
Goodwill	84,968	54,855
Investments	4,150	4,150
Operating lease right-of-use assets	79,283	87,770
Deferred tax assets	446,254	452,025
Other assets	25,493	30,346
TOTAL ASSETS	4,335,851	4,185,290
CURRENT LIABILITIES:
Accounts payable	122,872	92,105
Accrued liabilities	100,070	140,249
Deferred revenue	328,525	312,668
Other current liabilities	88,714	52,052
Total current liabilities	640,181	597,074
Income taxes payable	45,971	55,485
Operating lease liabilities, non-current	74,259	83,022
Deferred revenue, non-current	248,986	262,620
Deferred tax liabilities, non-current	251,292	254,710
Other long-term liabilities	38,679	37,693
TOTAL LIABILITIES	1,299,368	1,290,604
Commitments and contingencies (Note 6)
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0001 par value—100,000 shares authorized and no shares issued and outstanding as of June 30, 2020 and December 31, 2019	0	0
Common stock, $0.0001 par value—1,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 75,964 and 76,389 shares issued and outstanding as of June 30, 2020 and December 31, 2019	8	8
Additional paid-in capital	1,185,093	1,106,305
Retained earnings	1,843,559	1,788,230
Accumulated other comprehensive income	7,823	143
TOTAL STOCKHOLDERS’ EQUITY	3,036,483	2,894,686
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 4,335,851	$ 4,185,290

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Rebates and allowances	$ 1,780	$ 6,160
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	75,964,000	76,389,000
Common stock, shares outstanding (in shares)	75,964,000	76,389,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Total revenue	$ 540,570	$ 608,321	$ 1,063,599	$ 1,203,745
Cost of revenue:
Total cost of revenue	196,481	218,130	381,259	432,984
Gross profit	344,089	390,191	682,340	770,761
Operating expenses:
Research and development	111,544	114,295	224,698	233,964
Sales and marketing	51,237	53,040	108,323	104,093
General and administrative	14,319	16,019	32,668	31,525
Total operating expenses	177,100	183,354	365,689	369,582
Income from operations	166,989	206,837	316,651	401,179
Other income, net	8,256	13,811	20,413	26,144
Income before income taxes	175,245	220,648	337,064	427,323
Provision for income taxes	30,452	31,397	53,840	37,043
Net income	144,793	189,251	283,224	390,280
Net income attributable to common stockholders:
Basic	144,793	189,152	283,224	390,063
Diluted	$ 144,793	$ 189,158	$ 283,224	$ 390,076
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 1.91	$ 2.47	$ 3.72	$ 5.12
Diluted (in dollars per share)	$ 1.83	$ 2.33	$ 3.56	$ 4.80
Weighted-average shares used in computing net income per share attributable to common stockholders:
Basic (in shares)	75,808	76,552	76,036	76,238
Diluted (in shares)	79,298	81,335	79,620	81,271
Product
Revenue:
Total revenue	$ 421,413	$ 513,171	$ 832,319	$ 1,018,586
Cost of revenue:
Total cost of revenue	176,432	200,534	340,061	398,686
Service
Revenue:
Total revenue	119,157	95,150	231,280	185,159
Cost of revenue:
Total cost of revenue	$ 20,049	$ 17,596	$ 41,198	$ 34,298

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 144,793	$ 189,251	$ 283,224	$ 390,280
Other comprehensive income, net of tax:
Foreign currency translation adjustments	1,193	(272)	(1,546)	(37)
Net change in unrealized gains on available-for-sale securities	5,802	2,887	9,226	6,066
Other comprehensive income	6,995	2,615	7,680	6,029
Comprehensive income	$ 151,788	$ 191,866	$ 290,904	$ 396,309

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Cumulative Effect, Period of Adoption, Adjustment	[1]	Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings	[1]
Beginning balance (in shares) at Dec. 31, 2018		75,668
Beginning balance at Dec. 31, 2018	$ 2,143,389	$ 8	$ 956,572	$ 1,190,803	$ (3,994)	$ 3,702		$ 3,702
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	390,280			390,280
Other comprehensive income, net of tax	6,029				6,029
Stock-based compensation	48,588		48,588
Issuance of common stock in connection with employee equity incentive plans (in shares)		1,312
Issuance of common stock in connection with employee equity incentive plans	38,104		38,104
Tax withholding paid for net share settlement of equity awards (in shares)		(18)
Tax withholding paid for net share settlement of equity awards	(4,662)		(4,662)
Vesting of early-exercised stock options	138		138
Repurchase of common stock (in shares)		(407)
Repurchase of common stock	(100,008)			(100,008)
Ending balance (in shares) at Jun. 30, 2019		76,555
Ending balance at Jun. 30, 2019	2,525,560	$ 8	1,038,740	1,484,777	2,035
Beginning balance (in shares) at Mar. 31, 2019		76,453
Beginning balance at Mar. 31, 2019	2,400,367	$ 8	1,005,405	1,395,534	(580)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	189,251			189,251
Other comprehensive income, net of tax	2,615				2,615
Stock-based compensation	24,297		24,297
Issuance of common stock in connection with employee equity incentive plans (in shares)		521
Issuance of common stock in connection with employee equity incentive plans	11,781		11,781
Tax withholding paid for net share settlement of equity awards (in shares)		(12)
Tax withholding paid for net share settlement of equity awards	(2,812)		(2,812)
Vesting of early-exercised stock options	69		69
Repurchase of common stock (in shares)		(407)
Repurchase of common stock	(100,008)			(100,008)
Ending balance (in shares) at Jun. 30, 2019		76,555
Ending balance at Jun. 30, 2019	2,525,560	$ 8	1,038,740	1,484,777	2,035
Beginning balance (in shares) at Dec. 31, 2019		76,389
Beginning balance at Dec. 31, 2019	2,894,686	$ 8	1,106,305	1,788,230	143
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	283,224			283,224
Other comprehensive income, net of tax	7,680				7,680
Stock-based compensation	60,478		60,478
Issuance of common stock in connection with employee equity incentive plans (in shares)		801
Issuance of common stock in connection with employee equity incentive plans	22,228		22,228
Tax withholding paid for net share settlement of equity awards (in shares)		(17)
Tax withholding paid for net share settlement of equity awards	(4,000)		(4,000)
Vesting of early-exercised stock options	82		82
Repurchase of common stock (in shares)		(1,209)
Repurchase of common stock	(227,895)	$ (227,895)		(227,895)
Ending balance (in shares) at Jun. 30, 2020		75,964
Ending balance at Jun. 30, 2020	3,036,483	$ 8	1,185,093	1,843,559	7,823
Beginning balance (in shares) at Mar. 31, 2020		75,655
Beginning balance at Mar. 31, 2020	2,848,826	$ 8	1,149,224	1,698,766	828
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	144,793			144,793
Other comprehensive income, net of tax	6,995				6,995
Stock-based compensation	32,922		32,922
Issuance of common stock in connection with employee equity incentive plans (in shares)		319
Issuance of common stock in connection with employee equity incentive plans	5,146		5,146
Tax withholding paid for net share settlement of equity awards (in shares)		(10)
Tax withholding paid for net share settlement of equity awards	(2,260)		(2,260)
Vesting of early-exercised stock options	61		61
Repurchase of common stock (in shares)		0
Repurchase of common stock	0
Ending balance (in shares) at Jun. 30, 2020		75,964
Ending balance at Jun. 30, 2020	$ 3,036,483	$ 8	$ 1,185,093	$ 1,843,559	$ 7,823

[1]	On January 1, 2019, we adopted Accounting Standard Codification Topic 842 - Leases ("ASC 842"), which resulted in a cumulative-effect adjustment to the beginning balance of Retained Earnings for 2019.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$ 283,224	$ 390,280
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other		21,170	16,757
Stock-based compensation		60,478	48,588
Noncash lease expense		8,223	7,955
Deferred income taxes		2,668	7,914
Gain on investments in privately-held companies		0	(1,150)
Amortization (accretion) of investment premiums (discounts)		2,938	(4,260)
Changes in operating assets and liabilities:
Accounts receivable, net		15,263	(11,303)
Inventories		(82,891)	(49,620)
Prepaid expenses and other current assets		26,815	48,864
Other assets		5,360	(4,635)
Accounts payable		31,473	(6,783)
Accrued liabilities		(39,882)	(9,476)
Deferred revenue		(19,242)	(85,009)
Income taxes payable		16,820	14,399
Other liabilities		646	3,955
Net cash provided by operating activities		333,063	366,476
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities		875,213	552,512
Purchases of marketable securities		(1,236,477)	(549,383)
Business acquisitions, net of cash acquired		(66,317)	0
Purchases of property and equipment		(5,178)	(8,639)
Net cash used in investing activities		(432,759)	(5,510)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity plans		22,228	38,104
Tax withholding paid on behalf of employees for net share settlement		(4,000)	(4,662)
Repurchase of common stock		(227,895)	(100,008)
Net cash provided used in financing activities		(209,667)	(66,566)
Effect of exchange rate changes		(1,663)	72
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(311,026)	294,472
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period		1,115,515	654,164
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	[1]	804,489	948,636
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Right-of-use assets recognized upon the adoption of ASC 842		0	93,207
Right-of-use assets obtained in exchange for new operating lease liabilities		0	9,130
Property and equipment included in accounts payable and accrued liabilities		$ 788	$ 1,376

[1]	See Note 4 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash as shown in these condensed consolidated statements of cash flows.

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
Organization and Summary of Significant Accounting Policies	Jun. 30, 2020
Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Organization Arista Networks, Inc. (together with our subsidiaries, “we,” “our,” "Arista," "Company" or “us”) is a supplier of cloud networking solutions that use software innovations to address the needs of large-scale Internet companies, cloud service providers and next-generation enterprise. Our cloud networking solutions consist of our Extensible Operating System ("EOS"), a set of network applications and our 1/2.5/5/10/25/40/50/100/400 Gigabit Ethernet switching and routing platforms. We are incorporated in the state of Delaware. Our corporate headquarters are located in Santa Clara, California, and we have wholly-owned subsidiaries throughout the world, including North America, Europe, Asia and Australia. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and six months ended June 30, 2020 , are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. Our condensed consolidated financial statements and related financial information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 , filed with the SEC on February 14, 2020 . Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets, accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates. Risks and Uncertainties The global coronavirus ("COVID-19") pandemic and resulting mitigation efforts by governments around the world to contain or slow its spread have negatively impacted the global economy, disrupted business, sales activities, global supply chains and workforce participation, including our own, and created significant volatility and disruption of financial markets. Our contract manufacturers and suppliers have experienced and continue to experience delays in the production and export of their products, which have negatively impacted our supply chain and could negatively impact our business in the future. In addition, we expect that COVID-19 related disruptions may have a negative impact on demand from our customers in future periods and contribute to an expected year-over-year decline in revenues for the year ending December 31, 2020. However, the extent of the impact of COVID-19 on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, and the impact of any initiatives and programs we may undertake to address financial and operational challenges, will depend on future developments, including the duration and spread of the pandemic and related mitigation efforts, as well as restrictions on travel and transport, all of which are uncertain and cannot be predicted. Management is actively monitoring the impact of the pandemic on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Recently Adopted Accounting Pronouncements Credit Losses of Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. For trade receivables, we are required to estimate lifetime expected credit losses. For available-for-sale debt securities, we are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the new guidance in our first quarter of 2020 under a modified retrospective approach, and there was no material impact to our financial statements upon adoption. In addition, we do not anticipate that it will have a material impact on our consolidated statement of operations or consolidated statements of cash flows going forward.

Business Combinations

Business Combinations	6 Months Ended
Business Combinations	Jun. 30, 2020
Business Combinations [Abstract]
Business Combinations	2. Business Combinations On February 5, 2020, the Company completed its acquisition of Big Switch Networks, Inc. (“Big Switch”) a network monitoring and software-defined networking pioneer headquartered in Santa Clara, California. With the acquisition of Big Switch, we expect to expand our data center networking solutions and further strengthen our network monitoring and observability suite delivered through Arista’s software platform CloudVision and DANZ (DataANalyZer) capabilities. We paid an aggregate of $73.3 million in cash for the acquisition, of which $5.3 million in severance and other costs was accounted for as post-combination expense and was excluded from the purchase consideration. We also incurred certain acquisition-related expenses and restructuring costs of $6.6 million, which primarily consisted of retention bonuses to continuing employees, professional and consulting fees, and facilities restructuring costs. The following table summarizes the purchase consideration of $68.0 million , and the preliminary purchase price allocation based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Preliminary Purchase Price Allocation Tangible assets $ 13,376 Liabilities (24,346 ) Intangible assets 49,040 Goodwill 29,926 Net assets acquired $ 67,996 We continue the process of identifying and evaluating pending escrow claims related to tax and other liabilities. Accordingly, the preliminary values reflected in the table above are subject to potential measurement period adjustments. The acquired intangible assets are amortized on a straight-line basis over their estimated useful lives as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The following table shows the valuation of the intangible assets acquired (in thousands) along with their estimated useful lives. Acquisition Date Fair Value Estimated Useful Life Developed technology $ 31,040 5 years Customer relationships 13,150 7 years Non-compete agreements 4,060 2 years Trade name 790 1 year Total intangible assets acquired $ 49,040 Goodwill of $29.9 million is primarily attributable to the expected synergies created by incorporating the solutions of the acquired businesses into our technology platform, and the value of the assembled workforce. Goodwill is not deductible for income taxes purposes. In addition, the acquisition of Big Switch did not have a material impact on our revenue and net income for the current period, and therefore pro forma financial information has not been presented.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements Assets and liabilities recorded at fair value on a recurring basis on the accompanying condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. We use a fair value hierarchy to measure fair value, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The three-tiers of the fair value hierarchy are as follows: Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level II - Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level III - Unobservable inputs that are supported by little or no market data for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their level within the fair value hierarchy (in thousands): June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 355,353 $ — $ — $ 355,353 $ 355,353 $ — $ — Marketable Securities: Commercial paper 68,865 — — 68,865 — 68,865 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 607,806 5,271 (6 ) 613,071 613,071 — — Corporate bonds 928,562 7,901 (175 ) 936,288 — 936,288 — Agency securities 359,923 460 (18 ) 360,365 — 360,365 — 1,968,156 13,632 (199 ) 1,981,589 613,071 1,368,518 — Other Assets: Money market funds - restricted 4,307 — — 4,307 4,307 — — Total Financial Assets $ 2,327,816 $ 13,632 $ (199 ) $ 2,341,249 $ 972,731 $ 1,368,518 $ — December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 562,580 $ — $ — $ 562,580 $ 562,580 $ — $ — Certificate of deposits (1) 4,001 4,001 4,001 566,581 — — 566,581 562,580 4,001 — Marketable Securities: Commercial paper 66,717 — — 66,717 — 66,717 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 518,884 414 (20 ) 519,278 519,278 — — Corporate bonds 787,741 2,392 (73 ) 790,060 — 790,060 — Agency securities 233,491 577 (41 ) 234,027 — 234,027 — 1,609,833 3,383 (134 ) 1,613,082 519,278 1,093,804 — Other Assets: Money market funds - restricted 4,229 — — 4,229 4,229 — — Total Financial Assets $ 2,180,643 $ 3,383 $ (134 ) $ 2,183,892 $ 1,086,087 $ 1,097,805 $ — ______________________ (1) As of June 30, 2020 and December 31, 2019 , all of our certificates of deposits were domestic deposits. The unrealized losses associated with our marketable securities were immaterial as of June 30, 2020, and December 31, 2019. As of June 30, 2020 and December 31, 2019, we did not have any marketable securities that have been in a continuous unrealized loss position for more than twelve months. We invest in marketable securities that have maximum maturities of up to two years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. We did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable securities during the three and six months ended June 30, 2020. As of June 30, 2020 , the contractual maturities of our investments did not exceed 24 months. The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): June 30, 2020 Due in 1 year or less $ 1,340,607 Due in 1 year through 2 years 640,982 Total marketable securities $ 1,981,589 The weighted-average remaining duration of our current marketable securities is approximately 0.8 years as of June 30, 2020 . As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption marketable securities on the accompanying unaudited condensed consolidated balance sheets.

Financial Statements Details

Financial Statements Details	6 Months Ended
Financial Statements Details	Jun. 30, 2020
Balance Sheet Components [Abstract]
Financial Statements Details	4. Financial Statements Details Cash, Cash Equivalents and Restricted Cash The following table is a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows (in thousands): June 30, 2020 June 30, 2019 Cash and cash equivalents $ 800,182 $ 944,414 Restricted cash included in Other assets 4,307 4,222 Total cash, cash equivalents and restricted cash $ 804,489 $ 948,636 Restricted cash, which was included in "Other assets" on the accompanying condensed consolidated balance sheets as of June 30, 2020 and June 30, 2019 , primarily consisted of $4.0 million pledged as collateral representing a security deposit required for a facility lease. Accounts Receivable, Net Accounts receivable, net consists of the following (in thousands): June 30, 2020 December 31, 2019 Accounts receivable $ 385,005 $ 398,147 Allowance for doubtful accounts (501 ) (638 ) Product sales rebate and returns reserve (1,279 ) (5,522 ) Accounts receivable, net $ 383,225 $ 391,987 Inventories Inventories consist of the following (in thousands): June 30, 2020 December 31, 2019 Raw materials $ 171,346 $ 96,712 Finished goods 155,651 147,113 Total inventories $ 326,997 $ 243,825 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): June 30, 2020 December 31, 2019 Prepaid income taxes $ 490 $ 20,153 Inventory deposit 11,740 13,716 Other current assets 56,980 64,464 Other prepaid expenses and deposits 15,675 13,123 Total prepaid expenses and other current assets $ 84,885 $ 111,456 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): June 30, 2020 December 31, 2019 Equipment and machinery $ 65,950 $ 64,748 Computer hardware and software 39,104 36,627 Leasehold improvements 31,217 31,235 Furniture and fixtures 3,733 3,774 Construction-in-process 488 265 Property and equipment, gross 140,492 136,649 Less: accumulated depreciation (105,229 ) (97,376 ) Property and equipment, net $ 35,263 $ 39,273 Depreciation expense was $5.1 million and $4.8 million for the three months ended June 30, 2020 and 2019 , respectively, and $10.3 million and $9.5 million for the six months ended June 30, 2020 and 2019 , respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Accrued payroll related costs $ 44,230 $ 80,133 Accrued manufacturing costs 27,345 31,920 Accrued product development costs 10,620 11,410 Accrued professional fees 5,418 6,335 Accrued warranty costs 6,071 6,742 Accrued taxes 1,851 1,716 Other 4,535 1,993 Total accrued liabilities $ 100,070 $ 140,249 Warranty Accrual The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Six Months Ended June 30, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 2,181 2,082 Warranty costs incurred during the period (2,852 ) (2,370 ) Warranty accrual, end of period $ 6,071 $ 5,074 Contract Balances The following table summarizes the balances of our contract assets included in "Prepaid and other current assets" on the accompanying condensed consolidated balance sheets (in thousands): Six Months Ended June 30, 2020 Contract assets, beginning balance $ 25,565 Contract assets, ending balance 13,648 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Contract liabilities, beginning balance $ 64,325 $ 37,314 $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (5,735 ) (3,552 ) (11,722 ) (6,766 ) Less: Beginning balance reclassified to deferred revenue (2,757 ) (1,593 ) (2,226 ) (1,205 ) Add: Contract liabilities recognized 11,435 9,857 20,166 17,402 Contract liabilities, ending balance $ 67,268 $ 42,026 $ 67,268 $ 42,026 As of June 30, 2020 and December 31, 2019 , $28.6 million and $23.4 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the accompanying condensed consolidated balance sheets. Deferred Revenue and Performance Obligations Deferred revenue is comprised primarily of unearned revenue related to multi-year post contract support, or PCS, contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Deferred revenue, beginning balance $ 596,775 $ 536,471 $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (104,480 ) (119,542 ) (178,264 ) (253,616 ) Add: Deferral of revenue in current period, excluding amounts recognized during the period 85,216 85,289 180,487 168,607 Deferred revenue, ending balance $ 577,511 $ 502,218 $ 577,511 $ 502,218 Revenue from Remaining Performance Obligations Revenue from remaining performance obligations represents contracted revenue that has not yet been recognized, and consists of contract liabilities and deferred revenue that will be recognized as revenue in future periods. As of June 30, 2020 , approximately $687.7 million of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 81% of these remaining performance obligations over the next two years and 19% during the third to the fifth year. Other Income, Net Other income, net consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest income $ 8,668 $ 13,107 $ 20,330 $ 25,005 Gain on investment in privately-held companies — — — 1,150 Other income (expense), net (412 ) 704 83 (11 ) Total $ 8,256 $ 13,811 $ 20,413 $ 26,144

Investments

Investments	6 Months Ended
Investments	Jun. 30, 2020
Investments in privately-held companies [Abstract]
Investments	5. Investments Investments in Privately-Held Companies Our investments are in the equity of privately-held companies, which do not have readily determinable fair values. These non-marketable equity securities are initially recorded at cost, and subsequently remeasured to fair value on a non-recurring basis based on observable price changes in orderly transactions for similar investments of the same issuer, or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to those investments. In addition, the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The following table summarizes the activity related to our investments in privately-held companies held as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Cost of investment $ 3,000 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 1,150 1,150 Carrying amount of investment $ 4,150 $ 4,150 During the three and six months ended June 30, 2020 , there were no realized or unrealized gains or losses recorded. During the three months ended June 30, 2019 , there were no realized or unrealized gains or losses recorded. During the six months ended June 30, 2019 , we recorded $1.2 million

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Purchase Commitments We outsource most of our manufacturing and supply chain management operations to third-party contract manufacturers, who procure components and assemble products on our behalf based on our forecasts in order to reduce manufacturing lead times and ensure adequate component supply. We issue purchase orders to our contract manufacturers for finished products and a significant portion of these orders consist of firm non-cancellable commitments. In addition, we purchase strategic component inventory from certain suppliers under purchase commitments that in some cases are non-cancellable, including integrated circuits, which are consigned to our contract manufacturers. As of June 30, 2020 , we had non-cancellable purchase commitments of $570.3 million , of which $552.5 million was to our contract manufacturers and suppliers. In addition, we have provided suppliers with inventory deposits to secure our obligations to purchase inventory and the amount of these deposits may increase in future periods as we work to reduce product lead times and ensure adequate component supply to meet future demand. We had $14.5 million and $16.5 million in deposits as of June 30, 2020 and December 31, 2019 , respectively. These deposits are included in “Prepaid expenses and other current assets” and “Other assets” on the accompanying condensed consolidated balance sheets. Guarantees We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third party. We have, at our option and expense, the ability to repair any infringement, replace product with a non-infringing equivalent-in-function product or refund our customers all or a portion of the value of the product. Other guarantees or indemnification agreements include guarantees of product and service performance and standby letters of credit for leased facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantee and indemnification arrangements have not had a significant impact on our consolidated financial statements to date. Legal Proceedings In the ordinary course of business, we are a party to other claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of June 30, 2020 , provisions recorded for contingent losses related to other claims and matters have not been significant. Based on currently available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and our view of these matters may change in the future. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs, and potentially in future periods.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stockholders' Equity	7. Stockholders’ Equity Stock Repurchase Program In April 2019, our board of directors authorized a $1.0 billion stock repurchase program (the “Repurchase Program”). This authorization allows us to repurchase shares of our common stock opportunistically and will be funded from working capital. Repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or a combination of the foregoing. The Repurchase Program, which expires in April 2022 , does not obligate us to acquire any of our common stock, and may be suspended or discontinued by us at any time without prior notice. As of June 30, 2020 , the remaining authorized amount for stock repurchases under this program was approximately $506.0 million . A summary of the stock repurchase activity under the Repurchase Program for the six months ended June 30, 2020 is as follows (in thousands, except per share amounts): Six Months Ended June 30, 2020 Aggregate purchase price $ 227,895 Shares repurchased 1,209 Average price paid per share $ 188.61 There was no stock repurchase activity for the three months ended June 30, 2020. The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings. All shares repurchased under the Repurchase Program have been retired. Equity Award Plan Activities 2014 Equity Incentive Plan Effective January 1, 2020 , the Company's board of directors authorized an increase of 2,291,660 shares to the shares available for issuance under the 2014 Equity Incentive Plan (the “2014 Plan”). Pursuant to the 2014 Plan, the 2020 share increase is determined based on the lesser of 3% of total shares of common stock outstanding as of December 31, 2019 , which was, 12,500,000 shares, or such amount as determined by our board of directors. As of June 30, 2020 , there remained approximately 22.3 million shares available for issuance under the 2014 Plan. 2014 Employee Stock Purchase Plan Effective January 1, 2020 , our board of directors authorized an increase of 763,886 shares to the shares available for issuance under our 2014 Employee Stock Purchase Plan (the “ESPP”). Pursuant to the ESPP, the 2020 share increase was determined based on the lesser of 1% of the total shares of common stock outstanding on December 31, 2019 , 2,500,000 shares, or such amount as determined by our board of directors. During the six months ended June 30, 2020 , we issued 51,292 shares at a weighted-average purchase price of $184.19 per share under the ESPP. As of June 30, 2020 , there remained 3,905,368 shares available for issuance under the ESPP. Stock Option Activities The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Outstanding Options Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (504 ) 25.36 Options canceled (21 ) 159.36 Balance—June 30, 2020 4,039 $ 44.03 4.0 $ 674,925 Vested and exercisable—June 30, 2020 2,609 $ 30.93 3.6 $ 467,293 Restricted Stock Unit (RSU) Activities A summary of the RSU activity under the 2014 Plan and related information are presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 1,150 213.78 RSUs vested (246 ) 152.85 RSUs forfeited/canceled (60 ) 226.44 Unvested balance—June 30, 2020 1,914 $ 208.13 2.0 $ 401,996 Shares Available for Grant The following table presents the stock activity and the total number of shares available for grant under the 2014 Plan as of June 30, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (1,150 ) Options canceled 21 RSUs forfeited 60 Shares traded for taxes 17 Balance—June 30, 2020 16,386 Stock-Based Compensation Expense Total stock-based compensation expenses related to options, restricted stock units, restricted stock, and employee stock purchase rights granted were allocated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of revenue $ 1,585 $ 1,028 $ 2,912 $ 2,126 Research and development 19,378 12,568 35,306 25,699 Sales and marketing 8,277 7,097 14,673 13,631 General and administrative 3,682 3,604 7,587 7,132 Total stock-based compensation $ 32,922 $ 24,297 $ 60,478 $ 48,588 As of June 30, 2020 , unrecognized stock-based compensation expenses by award type and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years): June 30, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 35,043 $ 360,713 $ 5,793 $ 3,206 Weighted-average amortization period 2.9 years 3.7 years 0.9 years 2.2 years

Net Income Per Share Available

Net Income Per Share Available to Common Stock	6 Months Ended
Net Income Per Share Available to Common Stock	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Income Per Share Available to Common Stock	8. Net Income Per Share Available to Common Stock The following table sets forth the computation of our basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Basic: Net income $ 144,793 $ 189,251 $ 283,224 $ 390,280 Less: undistributed earnings allocated to participating securities — (99 ) — (217 ) Net income available to common stockholders, basic $ 144,793 $ 189,152 $ 283,224 $ 390,063 Diluted: Net income attributable to common stockholders, basic $ 144,793 $ 189,152 $ 283,224 $ 390,063 Add: undistributed earnings allocated to participating securities — 6 — 13 Net income attributable to common stockholders, diluted $ 144,793 $ 189,158 $ 283,224 $ 390,076 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,808 76,552 76,036 76,238 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,808 76,552 76,036 76,238 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,486 4,775 3,580 5,025 Employee stock purchase plan 4 8 4 8 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,298 81,335 79,620 81,271 Net income per share attributable to common stockholders: Basic $ 1.91 $ 2.47 $ 3.72 $ 5.12 Diluted $ 1.83 $ 2.33 $ 3.56 $ 4.80 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options and RSUs to purchase common stock 334 195 467 179 Employee stock purchase plan 149 31 159 68 Total 483 226 626 247

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 175,245 $ 220,648 $ 337,064 $ 427,323 Provision for income taxes 30,452 31,397 53,840 37,043 Effective tax rate 17.4 % 14.2 % 16.0 % 8.7 % The effective tax rates reflect tax expense recorded on pre-tax income in the three months and six months ended June 30, 2020 and June 30, 2019, respectively. The change in effective tax rates in the three months and six months ended June 30, 2020, as compared to the same periods in 2019, was primarily due to a decrease in tax benefits attributable to stock-based compensation.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Information	10. Segment Information We operate in one reportable segment. The following table represents revenue based on the customer’s location, as determined by the customer’s shipping address (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Americas $ 435,829 $ 446,370 $ 836,489 $ 886,008 Europe, Middle East and Africa 63,977 112,060 136,601 223,329 Asia-Pacific 40,764 49,891 90,509 94,408 Total revenue $ 540,570 $ 608,321 $ 1,063,599 $ 1,203,745 Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location are summarized as follows (in thousands): June 30, 2020 December 31, 2019 United States $ 26,954 $ 32,565 International 8,309 6,708 Total $ 35,263 $ 39,273

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and six months ended June 30, 2020 , are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. Our condensed consolidated financial statements and related financial information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 , filed with the SEC on February 14, 2020 .
Use of Estimates	Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets, accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Effective	Recently Adopted Accounting Pronouncements Credit Losses of Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. For trade receivables, we are required to estimate lifetime expected credit losses. For available-for-sale debt securities, we are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the new guidance in our first quarter of 2020 under a modified retrospective approach, and there was no material impact to our financial statements upon adoption. In addition, we do not anticipate that it will have a material impact on our consolidated statement of operations or consolidated statements of cash flows going forward.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
Business Combinations (Tables)	Jun. 30, 2020
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the purchase consideration of $68.0 million , and the preliminary purchase price allocation based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Preliminary Purchase Price Allocation Tangible assets $ 13,376 Liabilities (24,346 ) Intangible assets 49,040 Goodwill 29,926 Net assets acquired $ 67,996
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The following table shows the valuation of the intangible assets acquired (in thousands) along with their estimated useful lives. Acquisition Date Fair Value Estimated Useful Life Developed technology $ 31,040 5 years Customer relationships 13,150 7 years Non-compete agreements 4,060 2 years Trade name 790 1 year Total intangible assets acquired $ 49,040

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets by Level	The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their level within the fair value hierarchy (in thousands): June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 355,353 $ — $ — $ 355,353 $ 355,353 $ — $ — Marketable Securities: Commercial paper 68,865 — — 68,865 — 68,865 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 607,806 5,271 (6 ) 613,071 613,071 — — Corporate bonds 928,562 7,901 (175 ) 936,288 — 936,288 — Agency securities 359,923 460 (18 ) 360,365 — 360,365 — 1,968,156 13,632 (199 ) 1,981,589 613,071 1,368,518 — Other Assets: Money market funds - restricted 4,307 — — 4,307 4,307 — — Total Financial Assets $ 2,327,816 $ 13,632 $ (199 ) $ 2,341,249 $ 972,731 $ 1,368,518 $ — December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 562,580 $ — $ — $ 562,580 $ 562,580 $ — $ — Certificate of deposits (1) 4,001 4,001 4,001 566,581 — — 566,581 562,580 4,001 — Marketable Securities: Commercial paper 66,717 — — 66,717 — 66,717 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 518,884 414 (20 ) 519,278 519,278 — — Corporate bonds 787,741 2,392 (73 ) 790,060 — 790,060 — Agency securities 233,491 577 (41 ) 234,027 — 234,027 — 1,609,833 3,383 (134 ) 1,613,082 519,278 1,093,804 — Other Assets: Money market funds - restricted 4,229 — — 4,229 4,229 — — Total Financial Assets $ 2,180,643 $ 3,383 $ (134 ) $ 2,183,892 $ 1,086,087 $ 1,097,805 $ — ______________________ (1) As of June 30, 2020 and December 31, 2019 , all of our certificates of deposits were domestic deposits.
Fair Value of Available-For-Sale Investments By Contractual Maturity	The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): June 30, 2020 Due in 1 year or less $ 1,340,607 Due in 1 year through 2 years 640,982 Total marketable securities $ 1,981,589

Financial Statements Details (T

Financial Statements Details (Tables)	6 Months Ended
Financial Statements Details (Tables)	Jun. 30, 2020
Balance Sheet Components [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	The following table is a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows (in thousands): June 30, 2020 June 30, 2019 Cash and cash equivalents $ 800,182 $ 944,414 Restricted cash included in Other assets 4,307 4,222 Total cash, cash equivalents and restricted cash $ 804,489 $ 948,636
Schedule of Accounts Receivable, Net	Accounts receivable, net consists of the following (in thousands): June 30, 2020 December 31, 2019 Accounts receivable $ 385,005 $ 398,147 Allowance for doubtful accounts (501 ) (638 ) Product sales rebate and returns reserve (1,279 ) (5,522 ) Accounts receivable, net $ 383,225 $ 391,987
Schedule of Inventories	Inventories consist of the following (in thousands): June 30, 2020 December 31, 2019 Raw materials $ 171,346 $ 96,712 Finished goods 155,651 147,113 Total inventories $ 326,997 $ 243,825
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): June 30, 2020 December 31, 2019 Prepaid income taxes $ 490 $ 20,153 Inventory deposit 11,740 13,716 Other current assets 56,980 64,464 Other prepaid expenses and deposits 15,675 13,123 Total prepaid expenses and other current assets $ 84,885 $ 111,456
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following (in thousands): June 30, 2020 December 31, 2019 Equipment and machinery $ 65,950 $ 64,748 Computer hardware and software 39,104 36,627 Leasehold improvements 31,217 31,235 Furniture and fixtures 3,733 3,774 Construction-in-process 488 265 Property and equipment, gross 140,492 136,649 Less: accumulated depreciation (105,229 ) (97,376 ) Property and equipment, net $ 35,263 $ 39,273
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Accrued payroll related costs $ 44,230 $ 80,133 Accrued manufacturing costs 27,345 31,920 Accrued product development costs 10,620 11,410 Accrued professional fees 5,418 6,335 Accrued warranty costs 6,071 6,742 Accrued taxes 1,851 1,716 Other 4,535 1,993 Total accrued liabilities $ 100,070 $ 140,249
Schedule of Warranty Accrual	The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Six Months Ended June 30, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 2,181 2,082 Warranty costs incurred during the period (2,852 ) (2,370 ) Warranty accrual, end of period $ 6,071 $ 5,074
Schedule of Contract Balances	The following table summarizes the balances of our contract assets included in "Prepaid and other current assets" on the accompanying condensed consolidated balance sheets (in thousands): Six Months Ended June 30, 2020 Contract assets, beginning balance $ 25,565 Contract assets, ending balance 13,648 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Contract liabilities, beginning balance $ 64,325 $ 37,314 $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (5,735 ) (3,552 ) (11,722 ) (6,766 ) Less: Beginning balance reclassified to deferred revenue (2,757 ) (1,593 ) (2,226 ) (1,205 ) Add: Contract liabilities recognized 11,435 9,857 20,166 17,402 Contract liabilities, ending balance $ 67,268 $ 42,026 $ 67,268 $ 42,026
Schedule of Deferred Revenue	Deferred revenue is comprised primarily of unearned revenue related to multi-year post contract support, or PCS, contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Deferred revenue, beginning balance $ 596,775 $ 536,471 $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (104,480 ) (119,542 ) (178,264 ) (253,616 ) Add: Deferral of revenue in current period, excluding amounts recognized during the period 85,216 85,289 180,487 168,607 Deferred revenue, ending balance $ 577,511 $ 502,218 $ 577,511 $ 502,218
Schedule of Other Income (Expense), Net	Other income, net consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest income $ 8,668 $ 13,107 $ 20,330 $ 25,005 Gain on investment in privately-held companies — — — 1,150 Other income (expense), net (412 ) 704 83 (11 ) Total $ 8,256 $ 13,811 $ 20,413 $ 26,144

Investments (Tables)

Investments (Tables)	6 Months Ended
Investments (Tables)	Jun. 30, 2020
Investments in privately-held companies [Abstract]
Equity Securities without Readily Determinable Fair Value	The following table summarizes the activity related to our investments in privately-held companies held as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Cost of investment $ 3,000 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 1,150 1,150 Carrying amount of investment $ 4,150 $ 4,150

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Shares Repurchased	A summary of the stock repurchase activity under the Repurchase Program for the six months ended June 30, 2020 is as follows (in thousands, except per share amounts): Six Months Ended June 30, 2020 Aggregate purchase price $ 227,895 Shares repurchased 1,209 Average price paid per share $ 188.61
Schedule of Option Activity	The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Outstanding Options Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (504 ) 25.36 Options canceled (21 ) 159.36 Balance—June 30, 2020 4,039 $ 44.03 4.0 $ 674,925 Vested and exercisable—June 30, 2020 2,609 $ 30.93 3.6 $ 467,293
Schedule of Restricted Stock Units Activity	A summary of the RSU activity under the 2014 Plan and related information are presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 1,150 213.78 RSUs vested (246 ) 152.85 RSUs forfeited/canceled (60 ) 226.44 Unvested balance—June 30, 2020 1,914 $ 208.13 2.0 $ 401,996
Schedule of Shares Available for Grant	The following table presents the stock activity and the total number of shares available for grant under the 2014 Plan as of June 30, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (1,150 ) Options canceled 21 RSUs forfeited 60 Shares traded for taxes 17 Balance—June 30, 2020 16,386
Schedule of Stock-Based Compensation Expense	Total stock-based compensation expenses related to options, restricted stock units, restricted stock, and employee stock purchase rights granted were allocated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of revenue $ 1,585 $ 1,028 $ 2,912 $ 2,126 Research and development 19,378 12,568 35,306 25,699 Sales and marketing 8,277 7,097 14,673 13,631 General and administrative 3,682 3,604 7,587 7,132 Total stock-based compensation $ 32,922 $ 24,297 $ 60,478 $ 48,588
Schedule of Unrecognized Stock-Based Compensation Expense	As of June 30, 2020 , unrecognized stock-based compensation expenses by award type and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years): June 30, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 35,043 $ 360,713 $ 5,793 $ 3,206 Weighted-average amortization period 2.9 years 3.7 years 0.9 years 2.2 years

Net Income Per Share Availabl_2

Net Income Per Share Available to Common Stock (Tables)	6 Months Ended
Net Income Per Share Available to Common Stock (Tables)	Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share Available to Common Stock	The following table sets forth the computation of our basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Basic: Net income $ 144,793 $ 189,251 $ 283,224 $ 390,280 Less: undistributed earnings allocated to participating securities — (99 ) — (217 ) Net income available to common stockholders, basic $ 144,793 $ 189,152 $ 283,224 $ 390,063 Diluted: Net income attributable to common stockholders, basic $ 144,793 $ 189,152 $ 283,224 $ 390,063 Add: undistributed earnings allocated to participating securities — 6 — 13 Net income attributable to common stockholders, diluted $ 144,793 $ 189,158 $ 283,224 $ 390,076 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,808 76,552 76,036 76,238 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,808 76,552 76,036 76,238 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,486 4,775 3,580 5,025 Employee stock purchase plan 4 8 4 8 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,298 81,335 79,620 81,271 Net income per share attributable to common stockholders: Basic $ 1.91 $ 2.47 $ 3.72 $ 5.12 Diluted $ 1.83 $ 2.33 $ 3.56 $ 4.80
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options and RSUs to purchase common stock 334 195 467 179 Employee stock purchase plan 149 31 159 68 Total 483 226 626 247

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 175,245 $ 220,648 $ 337,064 $ 427,323 Provision for income taxes 30,452 31,397 53,840 37,043 Effective tax rate 17.4 % 14.2 % 16.0 % 8.7 %

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of Revenue and Long Lived Assets, by Location	The following table represents revenue based on the customer’s location, as determined by the customer’s shipping address (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Americas $ 435,829 $ 446,370 $ 836,489 $ 886,008 Europe, Middle East and Africa 63,977 112,060 136,601 223,329 Asia-Pacific 40,764 49,891 90,509 94,408 Total revenue $ 540,570 $ 608,321 $ 1,063,599 $ 1,203,745 Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location are summarized as follows (in thousands): June 30, 2020 December 31, 2019 United States $ 26,954 $ 32,565 International 8,309 6,708 Total $ 35,263 $ 39,273

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Feb. 05, 2020	Jun. 30, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill		$ 84,968	$ 54,855
Big Switch
Business Acquisition [Line Items]
Cash paid to acquire business	$ 73,300
Post-combination expense	5,300
Acquisition related costs	6,600
Total fair value of consideration transferred	68,000
Goodwill	$ 29,926

Business Combinations - Schedul

Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Feb. 05, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 84,968		$ 54,855
Big Switch
Business Acquisition [Line Items]
Tangible assets		$ 13,376
Liabilities		(24,346)
Intangible assets		49,040
Goodwill		29,926
Net assets acquired		$ 67,996

Business Combinations - Sched_2

Business Combinations - Schedule of Intangible Assets Acquired (Details) - Big Switch $ in Thousands	Feb. 05, 2020USD ($)
Business Acquisition [Line Items]
Intangible assets acquired	$ 49,040
Developed technology
Business Acquisition [Line Items]
Intangible assets acquired	$ 31,040
Intangible assets, weighted average useful life	5 years
Customer relationships
Business Acquisition [Line Items]
Intangible assets acquired	$ 13,150
Intangible assets, weighted average useful life	7 years
Non-compete agreements
Business Acquisition [Line Items]
Intangible assets acquired	$ 4,060
Intangible assets, weighted average useful life	2 years
Trade name
Business Acquisition [Line Items]
Intangible assets acquired	$ 790
Intangible assets, weighted average useful life	1 year

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost		$ 566,581
Cash Equivalents, Fair Value		566,581
Marketable Securities, Amortized Cost	$ 1,968,156	1,609,833
Marketable Securities, Unrealized Gains	13,632	3,383
Marketable Securities, Unrealized Losses	(199)	(134)
Marketable Securities, Fair Value	1,981,589	1,613,082
Total Financial Assets, Amortized Cost	2,327,816	2,180,643
Total Financial Assets, Fair Value	2,341,249	2,183,892
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		562,580
Marketable Securities, Fair Value	613,071	519,278
Total Financial Assets, Fair Value	972,731	1,086,087
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		4,001
Marketable Securities, Fair Value	1,368,518	1,093,804
Total Financial Assets, Fair Value	1,368,518	1,097,805
Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		0
Marketable Securities, Fair Value	0	0
Total Financial Assets, Fair Value	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost	355,353	562,580
Cash Equivalents, Fair Value	355,353	562,580
Money market funds \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	355,353	562,580
Money market funds \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	0
Money market funds \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	68,865	66,717
Marketable Securities, Unrealized Gains	0	0
Marketable Securities, Unrealized Losses	0	0
Marketable Securities, Fair Value	68,865	66,717
Commercial paper \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Commercial paper \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	68,865	66,717
Commercial paper \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Certificate of deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost		4,001
Cash Equivalents, Fair Value		4,001
Marketable Securities, Amortized Cost	3,000	3,000
Marketable Securities, Unrealized Gains		0
Marketable Securities, Unrealized Losses		0
Marketable Securities, Fair Value	3,000	3,000
Certificate of deposits \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value		0
Certificate of deposits \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		4,001
Marketable Securities, Fair Value	3,000	3,000
Certificate of deposits \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value		0
U.S. government notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	607,806	518,884
Marketable Securities, Unrealized Gains	5,271	414
Marketable Securities, Unrealized Losses	(6)	(20)
Marketable Securities, Fair Value	613,071	519,278
U.S. government notes \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	613,071	519,278
U.S. government notes \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
U.S. government notes \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	928,562	787,741
Marketable Securities, Unrealized Gains	7,901	2,392
Marketable Securities, Unrealized Losses	(175)	(73)
Marketable Securities, Fair Value	936,288	790,060
Corporate bonds \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Corporate bonds \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	936,288	790,060
Corporate bonds \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	359,923	233,491
Marketable Securities, Unrealized Gains	460	577
Marketable Securities, Unrealized Losses	(18)	(41)
Marketable Securities, Fair Value	360,365	234,027
Agency securities \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Agency securities \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	360,365	234,027
Agency securities \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Money market funds - restricted
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Amortized Cost	4,307	4,229
Other Assets, Fair Value	4,307	4,229
Money market funds - restricted \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	4,307	4,229
Money market funds - restricted \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	0	0
Money market funds - restricted \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	6 Months Ended
Fair Value Measurements - Narrative (Details)	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Marketable securities, maximum maturity period	24 months
Marketable securities, weighted average remaining duration	9 months 18 days

Fair Value Measurements - Inves

Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 1,340,607
Due in 1 year through 2 years	640,982
Total marketable securities	$ 1,981,589	$ 1,613,082

Financial Statements Details -

Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2020		Dec. 31, 2019	Jun. 30, 2019		Dec. 31, 2018
Balance Sheet Components [Abstract]
Cash and cash equivalents	$ 800,182		$ 1,111,286	$ 944,414
Restricted cash included in Other assets	4,307			4,222
Total cash, cash equivalents and restricted cash	804,489	[1]	$ 1,115,515	948,636	[1]	$ 654,164
Restricted cash, pledged as collateral	$ 4,000			$ 4,000

[1]	See Note 4 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash as shown in these condensed consolidated statements of cash flows.

Financial Statements Details _2

Financial Statements Details - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Accounts receivable	$ 385,005	$ 398,147
Allowance for doubtful accounts	(501)	(638)
Product sales rebate and returns reserve	(1,279)	(5,522)
Accounts receivable, net	$ 383,225	$ 391,987

Financial Statements Details _3

Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Raw materials	$ 171,346	$ 96,712
Finished goods	155,651	147,113
Total inventories	$ 326,997	$ 243,825

Financial Statements Details _4

Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Prepaid income taxes	$ 490	$ 20,153
Inventory deposit	11,740	13,716
Other current assets	56,980	64,464
Other prepaid expenses and deposits	15,675	13,123
Total prepaid expenses and other current assets	$ 84,885	$ 111,456

Financial Statements Details _5

Financial Statements Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 140,492		$ 140,492		$ 136,649
Less: accumulated depreciation	(105,229)		(105,229)		(97,376)
Property and equipment, net	35,263		35,263		39,273
Depreciation	5,100	$ 4,800	10,300	$ 9,500
Equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	65,950		65,950		64,748
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	39,104		39,104		36,627
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	31,217		31,217		31,235
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,733		3,733		3,774
Construction-in-process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 488		$ 488		$ 265

Financial Statements Details _6

Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Components [Abstract]
Accrued payroll related costs	$ 44,230	$ 80,133
Accrued manufacturing costs	27,345	31,920
Accrued product development costs	10,620	11,410
Accrued professional fees	5,418	6,335
Accrued warranty costs	6,071	6,742	$ 5,074	$ 5,362
Accrued taxes	1,851	1,716
Other	4,535	1,993
Total accrued liabilities	$ 100,070	$ 140,249

Financial Statements Details _7

Financial Statements Details - Warranty Accrual (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Warranty [Roll Forward]
Warranty accrual, beginning of period	$ 6,742	$ 5,362
Liabilities accrued for warranties issued during the period	2,181	2,082
Warranty costs incurred during the period	(2,852)	(2,370)
Warranty accrual, end of period	$ 6,071	$ 5,074

Financial Statements Details _8

Financial Statements Details - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Change in Contract with Customer, Asset [Roll Forward]
Contract assets, beginning balance			$ 25,565
Contract assets, ending balance	$ 13,648		13,648
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	64,325	$ 37,314	61,050	$ 32,595
Less: Revenue recognized from beginning balance	(5,735)	(3,552)	(11,722)	(6,766)
Less: Beginning balance reclassified to deferred revenue	(2,757)	(1,593)	(2,226)	(1,205)
Add: Contract liabilities recognized	11,435	9,857	20,166	17,402
Contract liabilities, ending balance	67,268	$ 42,026	67,268	$ 42,026
Other Current Liabilities
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance			23,400
Contract liabilities, ending balance	$ 28,600		$ 28,600

Financial Statements Details _9

Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 596,775	$ 536,471	$ 575,288	$ 587,227
Less: Revenue recognized from beginning balance	(104,480)	(119,542)	(178,264)	(253,616)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	85,216	85,289	180,487	168,607
Deferred revenue, ending balance	$ 577,511	$ 502,218	$ 577,511	$ 502,218

Financial Statements Details_10

Financial Statements Details - Performance Obligations (Details) $ in Millions	Jun. 30, 2020USD ($)
Balance Sheet Components [Abstract]
Revenue, remaining performance obligation, amount	$ 687.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	81.00%
Performance obligation, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	19.00%
Performance obligation, period	5 years

Financial Statements Details_11

Financial Statements Details - Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Balance Sheet Components [Abstract]
Interest income	$ 8,668	$ 13,107	$ 20,330	$ 25,005
Gain on investment in privately-held companies	0	0	0	1,150
Other income (expense), net	(412)	704	83	(11)
Total other income (expense), net	$ 8,256	$ 13,811	$ 20,413	$ 26,144

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended		6 Months Ended
Investments (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Equity Securities without Readily Determinable Fair Value
Cost of investment	$ 3,000,000		$ 3,000,000		$ 3,000,000
Cumulative impairment	0		0		0
Cumulative upward adjustment	1,150,000		1,150,000		1,150,000
Carrying amount of investment	4,150,000		4,150,000		$ 4,150,000
Equity Securities, Gain (Loss)
Realized gain (loss)	$ 0	$ 0
Unrealized gain			$ 0	$ 1,200,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 570.3
Deposits to purchase inventory	14.5	$ 16.5
Contract with manufacturers and suppliers
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 552.5

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)	Jan. 01, 2020	Jun. 30, 2020	Apr. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount for stock repurchases			$ 1,000,000,000
Remaining authorized repurchase amount		$ 506,000,000
Number of additional shares authorized for issuance (in shares)		2,292,000
2014 Equity Incentive Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	2,291,660
Percent of shares outstanding to increase number of shares available for grant and issuance	3.00%
Maximum increase of number of shares available for issuance (in shares)	12,500,000
Common stock reserved for issuance (in shares)		22,300,000
2014 Employee Stock Purchase Plan \| ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	763,886
Percent of shares outstanding to increase number of shares available for grant and issuance	1.00%
Maximum increase of number of shares available for issuance (in shares)	2,500,000
Common stock reserved for issuance (in shares)		3,905,368
Shares issued during period (in shares)		51,292
Weighted-average purchase price (in dollars per share)		$ 184.19

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price	$ 0	$ 100,008	$ 227,895	$ 100,008
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price			$ 227,895
Shares repurchased (in shares)	0	407	1,209	407
Average price paid per share (in dollars per share)			$ 188.61

Stockholders' Equity - Option A

Stockholders' Equity - Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Number of Shares Underlying Outstanding Options
Outstanding, beginning balance (in shares)	4,564
Options granted (in shares)	0
Options exercised (in shares)	(504)
Options canceled (in shares)	(21)
Outstanding, ending balance (in shares)	4,039	4,564
Vested and exercisable (in shares)	2,609
Weighted- Average Exercise Price per Share
Outstanding, beginning balance (in dollars per share)	$ 42.50
Options granted (in dollars per share)	0
Options exercised (in dollars per share)	25.36
Options canceled (in dollars per share)	159.36
Outstanding, ending balance (in dollars per share)	44.03	$ 42.50
Vested and exercisable (in dollars per share)	$ 30.93
Weighted- Average Remaining Contractual Term (Years) and Aggregate Intrinsic Value of Stock Options
Weighted-average remaining contractual term of stock options outstanding	4 years	4 years 4 months 24 days
Weighted-average remaining contractual term of stock options vested and exercisable	3 years 7 months 6 days
Aggregate intrinsic value of stock options outstanding	$ 674,925	$ 740,387
Aggregate intrinsic value of stock options outstanding, vested and exercisable	$ 467,293

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit (RSU) Activities (Details) - RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Number of Shares
Unvested beginning balance (in shares)	1,070
RSUs granted (in shares)	1,150
RSUs vested (in shares)	(246)
RSUs forfeited/canceled (in shares)	(60)
Unvested ending balance (in shares)	1,914	1,070
Weighted- Average Grant Date Fair Value Per Share
Unvested beginning balance (in dollars per share)	$ 190.35
RSUs granted (in dollars per share)	213.78
RSUs vested (in dollars per share)	152.85
RSUs forfeited/canceled (in dollars per share)	226.44
Unvested ending balance (in dollars per share)	$ 208.13	$ 190.35
Restricted Stock Unit Activities, Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Unvested, weighted average remaining contractual term (in years)	2 years	1 year 6 months
Unvested, aggregate intrinsic value	$ 401,996	$ 217,701

Stockholders' Equity - Shares A

Stockholders' Equity - Shares Available for Grant (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2020shares
Number of Shares
Beginning balance (in shares)	15,146
Authorized (in shares)	2,292
Options granted (in shares)	0
Options canceled (in shares)	21
Shares traded for taxes (in shares)	17
Ending balance (in shares)	16,386
RSU
Number of Shares
RSUs granted (in shares)	(1,150)
RSUs forfeited (in shares)	60

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 32,922	$ 24,297	$ 60,478	$ 48,588
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	35,043		$ 35,043
Weighted-average amortization period			2 years 10 months 24 days
RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	360,713		$ 360,713
Weighted-average amortization period			3 years 8 months 12 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	5,793		$ 5,793
Weighted-average amortization period			10 months 24 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	3,206		$ 3,206
Weighted-average amortization period			2 years 2 months 12 days
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,585	1,028	$ 2,912	2,126
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	19,378	12,568	35,306	25,699
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	8,277	7,097	14,673	13,631
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 3,682	$ 3,604	$ 7,587	$ 7,132

Net Income Per Share Availabl_3

Net Income Per Share Available to Common Stock - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic:
Net income	$ 144,793	$ 189,251	$ 283,224	$ 390,280
Less: undistributed earnings allocated to participating securities	0	(99)	0	(217)
Net income attributable to common stockholders, basic	144,793	189,152	283,224	390,063
Diluted:
Net income attributable to common stockholders, basic	144,793	189,152	283,224	390,063
Add: undistributed earnings allocated to participating securities	0	6	0	13
Net income attributable to common stockholders, diluted	$ 144,793	$ 189,158	$ 283,224	$ 390,076
Denominator:
Weighted-average shares used in computing net income per share available to common stockholders, basic (in shares)	75,808	76,552	76,036	76,238
Add weighted-average effect of dilutive securities:
Stock options and RSUs (in shares)	3,486	4,775	3,580	5,025
Employee stock purchase plan (in shares)	4	8	4	8
Weighted-average shares used in computing net income per share available to common stockholders, diluted (in shares)	79,298	81,335	79,620	81,271
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 1.91	$ 2.47	$ 3.72	$ 5.12
Diluted (in dollars per share)	$ 1.83	$ 2.33	$ 3.56	$ 4.80

Net Income Per Share Availabl_4

Net Income Per Share Available to Common Stock - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	483	226	626	247
Stock options and RSUs to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	334	195	467	179
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	149	31	159	68

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income before income taxes	$ 175,245	$ 220,648	$ 337,064	$ 427,323
Provision for income taxes	$ 30,452	$ 31,397	$ 53,840	$ 37,043
Effective tax rate	17.40%	14.20%	16.00%	8.70%

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)segment	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment			1
Revenue	$ 540,570	$ 608,321	$ 1,063,599	$ 1,203,745
Long-lived assets	35,263		35,263		$ 39,273
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	435,829	446,370	836,489	886,008
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	63,977	112,060	136,601	223,329
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	40,764	$ 49,891	90,509	$ 94,408
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	26,954		26,954		32,565
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 8,309		$ 8,309		$ 6,708

Uncategorized Items - anetq2202

Label	Element	Value
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	us-gaap:AccountingStandardsUpdate201602Member