Arista Networks (ANET) 10-Q3 Nov 202020 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Oct. 27, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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 (in shares)		75,661,464
Entity Central Index Key	0001596532
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 970,349	$ 1,111,286
Marketable securities	1,875,552	1,613,082
Accounts receivable, net of rebates and allowances of $4,326 and $6,160, respectively	300,217	391,987
Inventories	438,102	243,825
Prepaid expenses and other current assets	69,647	111,456
Total current assets	3,653,867	3,471,636
Property and equipment, net	32,670	39,273
Acquisition-related intangible assets, net	77,752	45,235
Goodwill	84,968	54,855
Investments	4,150	4,150
Operating lease right-of-use assets	79,929	87,770
Deferred tax assets	443,229	452,025
Other assets	22,807	30,346
TOTAL ASSETS	4,399,372	4,185,290
CURRENT LIABILITIES:
Accounts payable	163,102	92,105
Accrued liabilities	110,348	140,249
Deferred revenue	321,290	312,668
Other current liabilities	70,043	52,052
Total current liabilities	664,783	597,074
Income taxes payable	47,918	55,485
Operating lease liabilities, non-current	74,903	83,022
Deferred revenue, non-current	241,014	262,620
Deferred tax liabilities, non-current	247,712	254,710
Other long-term liabilities	39,165	37,693
TOTAL LIABILITIES	1,315,495	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 September 30, 2020 and December 31, 2019	0	0
Common stock, $0.0001 par value—1,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 75,632 and 76,389 shares issued and outstanding as of September 30, 2020 and December 31, 2019	8	8
Additional paid-in capital	1,240,147	1,106,305
Retained earnings	1,844,656	1,788,230
Accumulated other comprehensive income (loss)	(934)	143
TOTAL STOCKHOLDERS’ EQUITY	3,083,877	2,894,686
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 4,399,372	$ 4,185,290

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Rebates and allowances	$ 4,326	$ 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)	75,632,000	76,389,000
Common stock, shares outstanding (in shares)	75,632,000	76,389,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Total revenue	$ 605,431	$ 654,415	$ 1,669,030	$ 1,858,160
Cost of revenue:
Total cost of revenue	220,469	237,141	601,728	670,125
Gross profit	384,962	417,274	1,067,302	1,188,035
Operating expenses:
Research and development	128,049	118,732	352,747	352,696
Sales and marketing	53,372	55,279	161,695	159,372
General and administrative	15,146	14,657	47,814	46,182
Total operating expenses	196,567	188,668	562,256	558,250
Income from operations	188,395	228,606	505,046	629,785
Other income, net	13,224	19,169	33,637	45,313
Income before income taxes	201,619	247,775	538,683	675,098
Provision for income taxes	33,244	38,880	87,084	75,923
Net income	168,375	208,895	451,599	599,175
Net income attributable to common stockholders:
Basic	168,375	208,799	451,599	598,861
Diluted	$ 168,375	$ 208,804	$ 451,599	$ 598,880
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 2.22	$ 2.73	$ 5.94	$ 7.85
Diluted (in dollars per share)	$ 2.12	$ 2.59	$ 5.68	$ 7.38
Weighted-average shares used in computing net income per share attributable to common stockholders:
Basic (in shares)	75,999	76,426	76,024	76,301
Diluted (in shares)	79,313	80,753	79,519	81,104
Product
Revenue:
Total revenue	$ 480,242	$ 555,066	$ 1,312,561	$ 1,573,652
Cost of revenue:
Total cost of revenue	199,465	218,220	539,526	616,906
Service
Revenue:
Total revenue	125,189	99,349	356,469	284,508
Cost of revenue:
Total cost of revenue	$ 21,004	$ 18,921	$ 62,202	$ 53,219

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 168,375	$ 208,895	$ 451,599	$ 599,175
Other comprehensive income, net of tax:
Foreign currency translation adjustments	1,065	(1,730)	(481)	(1,767)
Available-for-sale investments:
Change in net unrealized gains (losses) on available-for-sale securities	(390)	(104)	8,836	5,962
Less: reclassification adjustment for net (gains) included in net income	(9,432)	0	(9,432)	0
Net change	(9,822)	(104)	(596)	5,962
Other comprehensive income (loss)	(8,757)	(1,834)	(1,077)	4,195
Comprehensive income	$ 159,618	$ 207,061	$ 450,522	$ 603,370

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	[1]	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	[1]	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2018				75,668
Beginning balance at Dec. 31, 2018	$ 2,143,389	$ 3,702		$ 8	$ 956,572	$ 1,190,803	$ 3,702		$ (3,994)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	599,175					599,175
Other comprehensive income (loss), net of tax	4,195								4,195
Stock-based compensation	74,845				74,845
Issuance of common stock in connection with employee equity incentive plans (in shares)				1,648
Issuance of common stock in connection with employee equity incentive plans	52,177				52,177
Tax withholding paid for net share settlement of equity awards (in shares)				(29)
Tax withholding paid for net share settlement of equity awards	(7,069)				(7,069)
Vesting of early-exercised stock options	207				207
Repurchase of common stock (in shares)				(919)
Repurchase of common stock	(214,617)					(214,617)
Ending balance (in shares) at Sep. 30, 2019				76,368
Ending balance at Sep. 30, 2019	$ 2,656,004			$ 8	1,076,732	1,579,063			201
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201602Member
Beginning balance (in shares) at Jun. 30, 2019				76,555
Beginning balance at Jun. 30, 2019	$ 2,525,560			$ 8	1,038,740	1,484,777			2,035
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	208,895					208,895
Other comprehensive income (loss), net of tax	(1,834)								(1,834)
Stock-based compensation	26,257				26,257
Issuance of common stock in connection with employee equity incentive plans (in shares)				336
Issuance of common stock in connection with employee equity incentive plans	14,073				14,073
Tax withholding paid for net share settlement of equity awards (in shares)				(11)
Tax withholding paid for net share settlement of equity awards	(2,407)				(2,407)
Vesting of early-exercised stock options	69				69
Repurchase of common stock (in shares)				(512)
Repurchase of common stock	(114,609)					(114,609)
Ending balance (in shares) at Sep. 30, 2019				76,368
Ending balance at Sep. 30, 2019	2,656,004			$ 8	1,076,732	1,579,063			201
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	451,599					451,599
Other comprehensive income (loss), net of tax	(1,077)								(1,077)
Stock-based compensation	96,947				96,947
Issuance of common stock in connection with employee equity incentive plans (in shares)				1,281
Issuance of common stock in connection with employee equity incentive plans	42,704				42,704
Tax withholding paid for net share settlement of equity awards (in shares)				(26)
Tax withholding paid for net share settlement of equity awards	(5,932)				(5,932)
Vesting of early-exercised stock options	123				123
Repurchase of common stock (in shares)				(2,012)
Repurchase of common stock	(395,173)			$ (395,173)		(395,173)
Ending balance (in shares) at Sep. 30, 2020				75,632
Ending balance at Sep. 30, 2020	3,083,877			$ 8	1,240,147	1,844,656			(934)
Beginning balance (in shares) at Jun. 30, 2020				75,964
Beginning balance at Jun. 30, 2020	3,036,483			$ 8	1,185,093	1,843,559			7,823
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	168,375					168,375
Other comprehensive income (loss), net of tax	(8,757)								(8,757)
Stock-based compensation	36,469				36,469
Issuance of common stock in connection with employee equity incentive plans (in shares)				480
Issuance of common stock in connection with employee equity incentive plans	20,476				20,476
Tax withholding paid for net share settlement of equity awards (in shares)				(9)
Tax withholding paid for net share settlement of equity awards	(1,932)				(1,932)
Vesting of early-exercised stock options	41				41
Repurchase of common stock (in shares)				(803)
Repurchase of common stock	(167,278)			$ (167,278)		(167,278)
Ending balance (in shares) at Sep. 30, 2020				75,632
Ending balance at Sep. 30, 2020	$ 3,083,877			$ 8	$ 1,240,147	$ 1,844,656			$ (934)

[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		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$ 451,599	$ 599,175
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other		31,975	24,948
Stock-based compensation		96,947	74,845
Noncash lease expense		12,606	12,007
Deferred income taxes		3,261	10,945
Gain on sale of marketable securities		(9,432)	0
Gain on investments in privately-held companies		0	(5,427)
Amortization (accretion) of investment premiums (discounts)		6,030	(6,032)
Changes in operating assets and liabilities:
Accounts receivable, net		98,271	(115,475)
Inventories		(193,996)	24,951
Prepaid expenses and other current assets		38,654	59,388
Other assets		7,850	(7,009)
Accounts payable		71,803	(14,361)
Accrued liabilities		(29,811)	5,731
Deferred revenue		(34,449)	(58,216)
Income taxes payable		(1,667)	29,808
Other liabilities		(1,451)	595
Net cash provided by operating activities		548,190	635,873
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities		1,183,601	806,519
Purchases of marketable securities		(2,216,436)	(840,098)
Business acquisitions, net of cash acquired		(66,317)	(1,365)
Purchases of property and equipment		(7,701)	(13,319)
Proceeds from investments in privately-held companies		3,399	28,220
Proceeds from sale of marketable securities		772,978	0
Net cash used in investing activities		(330,476)	(20,043)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity plans		42,704	52,177
Tax withholding paid on behalf of employees for net share settlement		(5,932)	(7,069)
Repurchase of common stock		(395,173)	(214,617)
Net cash provided used in financing activities		(358,401)	(169,509)
Effect of exchange rate changes		(246)	(994)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(140,933)	445,327
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period		1,115,515	654,164
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	[1]	974,582	1,099,491
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		5,031	10,948
Property and equipment included in accounts payable and accrued liabilities		$ 456	$ 684

[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	9 Months Ended
Organization and Summary of Significant Accounting Policies	Sep. 30, 2020
Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	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 nine months ended September 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 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	9 Months Ended
Business Combinations	Sep. 30, 2020
Business Combinations [Abstract]
Business Combinations	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	9 Months Ended
Fair Value Measurements	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	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): September 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 478,702 $ — $ — $ 478,702 $ 478,702 $ — $ — U.S. Treasuries 73,656 — — 73,656 73,656 — — 552,358 — — 552,358 552,358 — — Marketable Securities: Commercial paper 51,926 — — 51,926 — 51,926 — Certificate of deposits (1) 21,218 — — 21,218 — 21,218 — U.S. government notes 522,044 412 (6) 522,450 522,450 — — Corporate bonds 824,132 2,079 (401) 825,810 — 825,810 — Agency securities 453,773 387 (12) 454,148 — 454,148 — 1,873,093 2,878 (419) 1,875,552 522,450 1,353,102 — Other Assets: Money market funds - restricted 4,233 — — 4,233 4,233 — — Total Financial Assets $ 2,429,684 $ 2,878 $ (419) $ 2,432,143 $ 1,079,041 $ 1,353,102 $ — 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 September 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 September 30, 2020, and December 31, 2019. As of September 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 nine months ended September 30, 2020. As of September 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): September 30, 2020 Due in 1 year or less $ 1,161,664 Due in over 1 year through 2 years 713,888 Total marketable securities $ 1,875,552 The weighted-average remaining duration of our current marketable securities is approximately 0.9 years as of September 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	9 Months Ended
Financial Statements Details	Sep. 30, 2020
Balance Sheet Components [Abstract]
Financial Statements Details	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): September 30, 2020 September 30, 2019 Cash and cash equivalents $ 970,349 $ 1,095,265 Restricted cash included in Other assets 4,233 4,226 Total cash, cash equivalents and restricted cash $ 974,582 $ 1,099,491 Restricted cash, which was included in "Other assets" on the accompanying condensed consolidated balance sheets as of September 30, 2020 and September 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): September 30, 2020 December 31, 2019 Accounts receivable $ 304,543 $ 398,147 Allowance for doubtful accounts (541) (638) Product sales rebate and returns reserve (3,785) (5,522) Accounts receivable, net $ 300,217 $ 391,987 Inventories Inventories consist of the following (in thousands): September 30, 2020 December 31, 2019 Raw materials $ 223,423 $ 96,712 Finished goods 214,679 147,113 Total inventories $ 438,102 $ 243,825 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid income taxes $ 564 $ 20,153 Inventory deposit 10,024 13,716 Other current assets 43,311 64,464 Other prepaid expenses and deposits 15,748 13,123 Total prepaid expenses and other current assets $ 69,647 $ 111,456 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Equipment and machinery $ 67,978 $ 64,748 Computer hardware and software 39,335 36,627 Leasehold improvements 31,309 31,235 Furniture and fixtures 3,754 3,774 Construction-in-process 308 265 Property and equipment, gross 142,684 136,649 Less: accumulated depreciation (110,014) (97,376) Property and equipment, net $ 32,670 $ 39,273 Depreciation expense was $4.9 million and $4.8 million for the three months ended September 30, 2020 and 2019, respectively, and $15.1 million and $14.3 million for the nine months ended September 30, 2020 and 2019, respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): September 30, 2020 December 31, 2019 Accrued payroll related costs $ 44,920 $ 80,133 Accrued manufacturing costs 30,154 31,920 Accrued product development costs 16,983 11,410 Accrued professional fees 5,152 6,335 Accrued warranty costs 6,732 6,742 Accrued taxes 1,866 1,716 Other 4,541 1,993 Total accrued liabilities $ 110,348 $ 140,249 Warranty Accrual The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Nine Months Ended September 30, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 4,507 3,887 Warranty costs incurred during the period (4,517) (3,841) Warranty accrual, end of period $ 6,732 $ 5,408 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): Nine Months Ended September 30, 2020 Contract assets, beginning balance $ 25,565 Contract assets, ending balance 6,004 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Contract liabilities, beginning balance $ 67,268 $ 42,026 $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (6,525) (3,700) (17,946) (10,134) Less: Beginning balance reclassified to deferred revenue (2,828) (1,689) (1,942) (967) Add: Contract liabilities recognized 12,362 13,506 29,115 28,649 Contract liabilities, ending balance $ 70,277 $ 50,143 $ 70,277 $ 50,143 As of September 30, 2020 and December 31, 2019, $31.1 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Deferred revenue, beginning balance $ 577,511 $ 502,218 $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (103,889) (84,277) (243,422) (306,909) Add: Deferral of revenue in current period, excluding amounts recognized during the period 88,682 111,071 230,438 248,694 Deferred revenue, ending balance $ 562,304 $ 529,012 $ 562,304 $ 529,012 Revenue from Remaining Performance Obligations Revenue from remaining performance obligations represents contracted revenue that has not yet been recognized. This consists of contract liabilities, deferred revenue and amounts that will be invoiced in future periods. As of September 30, 2020, approximately $676.4 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest income $ 4,319 $ 13,446 $ 24,649 $ 38,451 Gain on sale of marketable securities 9,432 — 9,432 — Gain on investment in privately-held companies — 4,277 — 5,427 Other income (expense), net (527) 1,446 (444) 1,435 Total $ 13,224 $ 19,169 $ 33,637 $ 45,313

Investments

Investments	9 Months Ended
Investments	Sep. 30, 2020
Investments in privately-held companies [Abstract]
Investments	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 September 30, 2020 and December 31, 2019 (in thousands): September 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 nine months ended September 30, 2020, there were no realized or unrealized gains or losses recorded on investments. During the three months ended September 30, 2019, the Company recorded a realized gain of $4.3 million upon the sale of one of our investments. The realized gains were classified in "Other income, net" in the

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 consists 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 September 30, 2020, we had non-cancellable purchase commitments of $501.5 million, of which $484.8 million were 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 $12.8 million and $16.5 million in deposits as of September 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 on 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 probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of September 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	9 Months Ended
Stockholders' Equity	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Stockholders' Equity	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 September 30, 2020, the remaining authorized amount for stock repurchases under this program was approximately $338.7 million. A summary of the stock repurchase activity under the Repurchase Program for the three and nine months ended September 30, 2020 is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Aggregate purchase price $ 167,278 $ 395,173 Shares repurchased 803 2,012 Average price paid per share $ 208.19 $ 196.43 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 3% of the total shares of common stock outstanding as of December 31, 2019, but not to exceed 12,500,000 shares, unless the board of directors, in its discretion, determines to make a smaller increase. As of September 30, 2020, there remained approximately 21.9 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 least 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 nine months ended September 30, 2020, we issued 105,667 shares at a weighted-average purchase price of $183.45 per share under the ESPP. As of September 30, 2020, there remained 3,850,993 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 Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (800) 29.15 Options canceled (31) 121.24 Balance—September 30, 2020 3,733 $ 44.71 3.7 $ 610,580 Vested and exercisable—September 30, 2020 2,489 $ 31.62 3.3 $ 436,617 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 Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 1,208 213.75 RSUs vested (375) 158.18 RSUs forfeited/canceled (81) 222.27 Unvested balance—September 30, 2020 1,822 $ 211.07 1.9 $ 377,024 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 September 30, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (1,208) Options canceled 31 RSUs forfeited 81 Shares traded for taxes 26 Balance—September 30, 2020 16,368 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 1,806 $ 1,258 $ 4,718 $ 3,384 Research and development 21,423 13,472 56,729 39,171 Sales and marketing 9,083 7,832 23,756 21,463 General and administrative 4,157 3,695 11,744 10,827 Total stock-based compensation $ 36,469 $ 26,257 $ 96,947 $ 74,845 As of September 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): September 30, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 31,114 $ 338,561 $ 12,641 $ 2,839 Weighted-average amortization period 2.7 years 3.4 years 1.4 years 2.0 years

Net Income Per Share Available

Net Income Per Share Available to Common Stock	9 Months Ended
Net Income Per Share Available to Common Stock	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income Per Share Available to Common Stock	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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Basic: Net income $ 168,375 $ 208,895 $ 451,599 $ 599,175 Less: undistributed earnings allocated to participating securities — (96) — (314) Net income available to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Diluted: Net income attributable to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Add: undistributed earnings allocated to participating securities — 5 — 19 Net income attributable to common stockholders, diluted $ 168,375 $ 208,804 $ 451,599 $ 598,880 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,308 4,308 3,489 4,784 Employee stock purchase plan 6 19 6 19 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,313 80,753 79,519 81,104 Net income per share attributable to common stockholders: Basic $ 2.22 $ 2.73 $ 5.94 $ 7.85 Diluted $ 2.12 $ 2.59 $ 5.68 $ 7.38 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options and RSUs to purchase common stock 251 277 395 211 Employee stock purchase plan 17 41 84 59 Total 268 318 479 270

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 201,619 $ 247,775 $ 538,683 $ 675,098 Provision for income taxes 33,244 38,880 87,084 75,923 Effective tax rate 16.5 % 15.7 % 16.2 % 11.2 % The effective tax rates reflect tax expense recorded on pre-tax income in the three and nine months ended September 30, 2020 and September 30, 2019, respectively. The change in the effective tax rates in the three and nine months ended September 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	9 Months Ended
Segment Information	Sep. 30, 2020
Segment Reporting [Abstract]
Segment Information	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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 452,693 $ 532,318 $ 1,289,182 $ 1,418,325 Europe, Middle East and Africa 89,588 75,439 226,189 298,768 Asia-Pacific 63,150 46,658 153,659 141,067 Total revenue $ 605,431 $ 654,415 $ 1,669,030 $ 1,858,160 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): September 30, 2020 December 31, 2019 United States $ 24,469 $ 32,565 International 8,201 6,708 Total $ 32,670 $ 39,273

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On September 21, 2020, the Company entered into a Merger Agreement to acquire Awake Security, Inc. (“Awake Security”), a network detection and response (“NDR”) platform provider headquartered in Santa Clara, California, and on October 7, 2020, we completed the acquisition of Awake Security. The acquisition will be included in our consolidated financial statements beginning in the fourth quarter of 2020, and will be financed from our existing cash balance .

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 nine months ended September 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.
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	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)	9 Months Ended
Business Combinations (Tables)	Sep. 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)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 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): September 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 478,702 $ — $ — $ 478,702 $ 478,702 $ — $ — U.S. Treasuries 73,656 — — 73,656 73,656 — — 552,358 — — 552,358 552,358 — — Marketable Securities: Commercial paper 51,926 — — 51,926 — 51,926 — Certificate of deposits (1) 21,218 — — 21,218 — 21,218 — U.S. government notes 522,044 412 (6) 522,450 522,450 — — Corporate bonds 824,132 2,079 (401) 825,810 — 825,810 — Agency securities 453,773 387 (12) 454,148 — 454,148 — 1,873,093 2,878 (419) 1,875,552 522,450 1,353,102 — Other Assets: Money market funds - restricted 4,233 — — 4,233 4,233 — — Total Financial Assets $ 2,429,684 $ 2,878 $ (419) $ 2,432,143 $ 1,079,041 $ 1,353,102 $ — 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 September 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): September 30, 2020 Due in 1 year or less $ 1,161,664 Due in over 1 year through 2 years 713,888 Total marketable securities $ 1,875,552

Financial Statements Details (T

Financial Statements Details (Tables)	9 Months Ended
Financial Statements Details (Tables)	Sep. 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): September 30, 2020 September 30, 2019 Cash and cash equivalents $ 970,349 $ 1,095,265 Restricted cash included in Other assets 4,233 4,226 Total cash, cash equivalents and restricted cash $ 974,582 $ 1,099,491
Schedule of Accounts Receivable, Net	Accounts receivable, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Accounts receivable $ 304,543 $ 398,147 Allowance for doubtful accounts (541) (638) Product sales rebate and returns reserve (3,785) (5,522) Accounts receivable, net $ 300,217 $ 391,987
Schedule of Inventories	Inventories consist of the following (in thousands): September 30, 2020 December 31, 2019 Raw materials $ 223,423 $ 96,712 Finished goods 214,679 147,113 Total inventories $ 438,102 $ 243,825
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid income taxes $ 564 $ 20,153 Inventory deposit 10,024 13,716 Other current assets 43,311 64,464 Other prepaid expenses and deposits 15,748 13,123 Total prepaid expenses and other current assets $ 69,647 $ 111,456
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Equipment and machinery $ 67,978 $ 64,748 Computer hardware and software 39,335 36,627 Leasehold improvements 31,309 31,235 Furniture and fixtures 3,754 3,774 Construction-in-process 308 265 Property and equipment, gross 142,684 136,649 Less: accumulated depreciation (110,014) (97,376) Property and equipment, net $ 32,670 $ 39,273
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): September 30, 2020 December 31, 2019 Accrued payroll related costs $ 44,920 $ 80,133 Accrued manufacturing costs 30,154 31,920 Accrued product development costs 16,983 11,410 Accrued professional fees 5,152 6,335 Accrued warranty costs 6,732 6,742 Accrued taxes 1,866 1,716 Other 4,541 1,993 Total accrued liabilities $ 110,348 $ 140,249
Schedule of Warranty Accrual	The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Nine Months Ended September 30, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 4,507 3,887 Warranty costs incurred during the period (4,517) (3,841) Warranty accrual, end of period $ 6,732 $ 5,408
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): Nine Months Ended September 30, 2020 Contract assets, beginning balance $ 25,565 Contract assets, ending balance 6,004 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Contract liabilities, beginning balance $ 67,268 $ 42,026 $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (6,525) (3,700) (17,946) (10,134) Less: Beginning balance reclassified to deferred revenue (2,828) (1,689) (1,942) (967) Add: Contract liabilities recognized 12,362 13,506 29,115 28,649 Contract liabilities, ending balance $ 70,277 $ 50,143 $ 70,277 $ 50,143
Schedule of Deferred Revenue	The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Deferred revenue, beginning balance $ 577,511 $ 502,218 $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (103,889) (84,277) (243,422) (306,909) Add: Deferral of revenue in current period, excluding amounts recognized during the period 88,682 111,071 230,438 248,694 Deferred revenue, ending balance $ 562,304 $ 529,012 $ 562,304 $ 529,012
Schedule of Other Income (Expense), Net	Other income, net consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest income $ 4,319 $ 13,446 $ 24,649 $ 38,451 Gain on sale of marketable securities 9,432 — 9,432 — Gain on investment in privately-held companies — 4,277 — 5,427 Other income (expense), net (527) 1,446 (444) 1,435 Total $ 13,224 $ 19,169 $ 33,637 $ 45,313

Investments (Tables)

Investments (Tables)	9 Months Ended
Investments (Tables)	Sep. 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 September 30, 2020 and December 31, 2019 (in thousands): September 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)	9 Months Ended
Stockholders' Equity (Tables)	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Shares Repurchased	A summary of the stock repurchase activity under the Repurchase Program for the three and nine months ended September 30, 2020 is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Aggregate purchase price $ 167,278 $ 395,173 Shares repurchased 803 2,012 Average price paid per share $ 208.19 $ 196.43
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 Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (800) 29.15 Options canceled (31) 121.24 Balance—September 30, 2020 3,733 $ 44.71 3.7 $ 610,580 Vested and exercisable—September 30, 2020 2,489 $ 31.62 3.3 $ 436,617
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 Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 1,208 213.75 RSUs vested (375) 158.18 RSUs forfeited/canceled (81) 222.27 Unvested balance—September 30, 2020 1,822 $ 211.07 1.9 $ 377,024
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 September 30, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (1,208) Options canceled 31 RSUs forfeited 81 Shares traded for taxes 26 Balance—September 30, 2020 16,368
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 1,806 $ 1,258 $ 4,718 $ 3,384 Research and development 21,423 13,472 56,729 39,171 Sales and marketing 9,083 7,832 23,756 21,463 General and administrative 4,157 3,695 11,744 10,827 Total stock-based compensation $ 36,469 $ 26,257 $ 96,947 $ 74,845
Schedule of Unrecognized Stock-Based Compensation Expense	As of September 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): September 30, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 31,114 $ 338,561 $ 12,641 $ 2,839 Weighted-average amortization period 2.7 years 3.4 years 1.4 years 2.0 years

Net Income Per Share Availabl_2

Net Income Per Share Available to Common Stock (Tables)	9 Months Ended
Net Income Per Share Available to Common Stock (Tables)	Sep. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Basic: Net income $ 168,375 $ 208,895 $ 451,599 $ 599,175 Less: undistributed earnings allocated to participating securities — (96) — (314) Net income available to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Diluted: Net income attributable to common stockholders, basic $ 168,375 $ 208,799 $ 451,599 $ 598,861 Add: undistributed earnings allocated to participating securities — 5 — 19 Net income attributable to common stockholders, diluted $ 168,375 $ 208,804 $ 451,599 $ 598,880 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 75,999 76,426 76,024 76,301 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,308 4,308 3,489 4,784 Employee stock purchase plan 6 19 6 19 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,313 80,753 79,519 81,104 Net income per share attributable to common stockholders: Basic $ 2.22 $ 2.73 $ 5.94 $ 7.85 Diluted $ 2.12 $ 2.59 $ 5.68 $ 7.38
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options and RSUs to purchase common stock 251 277 395 211 Employee stock purchase plan 17 41 84 59 Total 268 318 479 270

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 201,619 $ 247,775 $ 538,683 $ 675,098 Provision for income taxes 33,244 38,880 87,084 75,923 Effective tax rate 16.5 % 15.7 % 16.2 % 11.2 %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
Segment Information (Tables)	Sep. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 452,693 $ 532,318 $ 1,289,182 $ 1,418,325 Europe, Middle East and Africa 89,588 75,439 226,189 298,768 Asia-Pacific 63,150 46,658 153,659 141,067 Total revenue $ 605,431 $ 654,415 $ 1,669,030 $ 1,858,160 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): September 30, 2020 December 31, 2019 United States $ 24,469 $ 32,565 International 8,201 6,708 Total $ 32,670 $ 39,273

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Feb. 05, 2020	Sep. 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	Sep. 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	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost	$ 552,358	$ 566,581
Cash Equivalents, Fair Value	552,358	566,581
Marketable Securities, Amortized Cost	1,873,093	1,609,833
Marketable Securities, Unrealized Gains	2,878	3,383
Marketable Securities, Unrealized Losses	(419)	(134)
Marketable Securities, Fair Value	1,875,552	1,613,082
Total Financial Assets, Amortized Cost	2,429,684	2,180,643
Total Financial Assets, Fair Value	2,432,143	2,183,892
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	552,358	562,580
Marketable Securities, Fair Value	522,450	519,278
Total Financial Assets, Fair Value	1,079,041	1,086,087
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	4,001
Marketable Securities, Fair Value	1,353,102	1,093,804
Total Financial Assets, Fair Value	1,353,102	1,097,805
Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	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	478,702	562,580
Cash Equivalents, Fair Value	478,702	562,580
Money market funds \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	478,702	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
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost	73,656
Cash Equivalents, Fair Value	73,656
U.S. Treasuries \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	73,656
U.S. Treasuries \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0
U.S. Treasuries \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	51,926	66,717
Marketable Securities, Unrealized Gains	0	0
Marketable Securities, Unrealized Losses	0	0
Marketable Securities, Fair Value	51,926	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	51,926	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	21,218	3,000
Marketable Securities, Unrealized Gains	0	0
Marketable Securities, Unrealized Losses	0	0
Marketable Securities, Fair Value	21,218	3,000
Certificate of deposits \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		0
Marketable Securities, Fair Value	0	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	21,218	3,000
Certificate of deposits \| 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
U.S. government notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	522,044	518,884
Marketable Securities, Unrealized Gains	412	414
Marketable Securities, Unrealized Losses	(6)	(20)
Marketable Securities, Fair Value	522,450	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	522,450	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	824,132	787,741
Marketable Securities, Unrealized Gains	2,079	2,392
Marketable Securities, Unrealized Losses	(401)	(73)
Marketable Securities, Fair Value	825,810	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	825,810	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	453,773	233,491
Marketable Securities, Unrealized Gains	387	577
Marketable Securities, Unrealized Losses	(12)	(41)
Marketable Securities, Fair Value	454,148	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	454,148	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	4,233	4,229
Other Assets, Fair Value	4,233	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	4,233	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)	9 Months Ended
Fair Value Measurements - Narrative (Details)	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Marketable securities, maximum maturity period	24 months
Marketable securities, weighted average remaining duration	10 months 24 days

Fair Value Measurements - Inves

Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 1,161,664
Due in over 1 year through 2 years	713,888
Total marketable securities	$ 1,875,552	$ 1,613,082

Financial Statements Details -

Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020		Dec. 31, 2019	Sep. 30, 2019		Dec. 31, 2018
Balance Sheet Components [Abstract]
Cash and cash equivalents	$ 970,349		$ 1,111,286	$ 1,095,265
Restricted cash included in Other assets	4,233			4,226
Total cash, cash equivalents and restricted cash	974,582	[1]	$ 1,115,515	1,099,491	[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	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Accounts receivable	$ 304,543	$ 398,147
Allowance for doubtful accounts	(541)	(638)
Product sales rebate and returns reserve	(3,785)	(5,522)
Accounts receivable, net	$ 300,217	$ 391,987

Financial Statements Details _3

Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Raw materials	$ 223,423	$ 96,712
Finished goods	214,679	147,113
Total inventories	$ 438,102	$ 243,825

Financial Statements Details _4

Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Prepaid income taxes	$ 564	$ 20,153
Inventory deposit	10,024	13,716
Other current assets	43,311	64,464
Other prepaid expenses and deposits	15,748	13,123
Total prepaid expenses and other current assets	$ 69,647	$ 111,456

Financial Statements Details _5

Financial Statements Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 142,684		$ 142,684		$ 136,649
Less: accumulated depreciation	(110,014)		(110,014)		(97,376)
Property and equipment, net	32,670		32,670		39,273
Depreciation	4,900	$ 4,800	15,100	$ 14,300
Equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	67,978		67,978		64,748
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	39,335		39,335		36,627
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	31,309		31,309		31,235
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,754		3,754		3,774
Construction-in-process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 308		$ 308		$ 265

Financial Statements Details _6

Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Balance Sheet Components [Abstract]
Accrued payroll related costs	$ 44,920	$ 80,133
Accrued manufacturing costs	30,154	31,920
Accrued product development costs	16,983	11,410
Accrued professional fees	5,152	6,335
Accrued warranty costs	6,732	6,742	$ 5,408	$ 5,362
Accrued taxes	1,866	1,716
Other	4,541	1,993
Total accrued liabilities	$ 110,348	$ 140,249

Financial Statements Details _7

Financial Statements Details - Warranty Accrual (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Warranty [Roll Forward]
Warranty accrual, beginning of period	$ 6,742	$ 5,362
Liabilities accrued for warranties issued during the period	4,507	3,887
Warranty costs incurred during the period	(4,517)	(3,841)
Warranty accrual, end of period	$ 6,732	$ 5,408

Financial Statements Details _8

Financial Statements Details - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Change in Contract with Customer, Asset [Roll Forward]
Contract assets, beginning balance			$ 25,565
Contract assets, ending balance	$ 6,004		6,004
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	67,268	$ 42,026	61,050	$ 32,595
Less: Revenue recognized from beginning balance	(6,525)	(3,700)	(17,946)	(10,134)
Less: Beginning balance reclassified to deferred revenue	(2,828)	(1,689)	(1,942)	(967)
Add: Contract liabilities recognized	12,362	13,506	29,115	28,649
Contract liabilities, ending balance	70,277	$ 50,143	70,277	$ 50,143
Other Current Liabilities
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance			23,400
Contract liabilities, ending balance	$ 31,100		$ 31,100

Financial Statements Details _9

Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 577,511	$ 502,218	$ 575,288	$ 587,227
Less: Revenue recognized from beginning balance	(103,889)	(84,277)	(243,422)	(306,909)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	88,682	111,071	230,438	248,694
Deferred revenue, ending balance	$ 562,304	$ 529,012	$ 562,304	$ 529,012

Financial Statements Details_10

Financial Statements Details - Performance Obligations (Details) $ in Millions	Sep. 30, 2020USD ($)
Balance Sheet Components [Abstract]
Revenue, remaining performance obligation, amount	$ 676.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
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]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	19.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 \| Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, period	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 \| Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, period	5 years

Financial Statements Details_11

Financial Statements Details - Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Balance Sheet Components [Abstract]
Interest income	$ 4,319	$ 13,446	$ 24,649	$ 38,451
Gain on sale of marketable securities	9,432	0	9,432	0
Gain on investment in privately-held companies	0	4,277	0	5,427
Other income (expense), net	(527)	1,446	(444)	1,435
Total other income (expense), net	$ 13,224	$ 19,169	$ 33,637	$ 45,313

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended		9 Months Ended
Investments (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 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
Investments	4,150,000		4,150,000		$ 4,150,000
Equity Securities, Gain (Loss)
Realized gain (loss)	0	$ 4,300,000	0
Unrealized gain	$ 0	$ 0	$ 0	$ 1,200,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 501.5
Deposits to purchase inventory	12.8	$ 16.5
Contract with manufacturers and suppliers
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 484.8

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)	Jan. 01, 2020	Sep. 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		$ 338,700,000
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)		21,900,000
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)		3,850,993
Shares issued during period (in shares)		105,667
Weighted-average purchase price (in dollars per share)		$ 183.45

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price	$ 167,278	$ 114,609	$ 395,173	$ 214,617
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price	$ 167,278		$ 395,173
Shares repurchased (in shares)	803	512	2,012	919
Average price paid per share (in dollars per share)	$ 208.19		$ 196.43

Stockholders' Equity - Option A

Stockholders' Equity - Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 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)	(800)
Options canceled (in shares)	(31)
Outstanding, ending balance (in shares)	3,733	4,564
Vested and exercisable (in shares)	2,489
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)	29.15
Options canceled (in dollars per share)	121.24
Outstanding, ending balance (in dollars per share)	44.71	$ 42.50
Vested and exercisable (in dollars per share)	$ 31.62
Weighted- Average Remaining Contractual Term (Years) and Aggregate Intrinsic Value of Stock Options
Weighted-average remaining contractual term of stock options outstanding	3 years 8 months 12 days	4 years 4 months 24 days
Weighted-average remaining contractual term of stock options vested and exercisable	3 years 3 months 18 days
Aggregate intrinsic value of stock options outstanding	$ 610,580	$ 740,387
Aggregate intrinsic value of stock options outstanding, vested and exercisable	$ 436,617

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit (RSU) Activities (Details) - RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Number of Shares
Unvested beginning balance (in shares)	1,070
RSUs granted (in shares)	1,208
RSUs vested (in shares)	(375)
RSUs forfeited/canceled (in shares)	(81)
Unvested ending balance (in shares)	1,822	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)	213.75
RSUs vested (in dollars per share)	158.18
RSUs forfeited/canceled (in dollars per share)	222.27
Unvested ending balance (in dollars per share)	$ 211.07	$ 190.35
Restricted Stock Unit Activities, Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Unvested, weighted average remaining contractual term (in years)	1 year 10 months 24 days	1 year 6 months
Unvested, aggregate intrinsic value	$ 377,024	$ 217,701

Stockholders' Equity - Shares A

Stockholders' Equity - Shares Available for Grant (Details) shares in Thousands	9 Months Ended
	Sep. 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)	31
Shares traded for taxes (in shares)	26
Ending balance (in shares)	16,368
RSU
Number of Shares
RSUs granted (in shares)	(1,208)
RSUs forfeited (in shares)	81

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 36,469	$ 26,257	$ 96,947	$ 74,845
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	31,114		$ 31,114
Weighted-average amortization period			2 years 8 months 12 days
RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	338,561		$ 338,561
Weighted-average amortization period			3 years 4 months 24 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	12,641		$ 12,641
Weighted-average amortization period			1 year 4 months 24 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	2,839		$ 2,839
Weighted-average amortization period			2 years
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,806	1,258	$ 4,718	3,384
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	21,423	13,472	56,729	39,171
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	9,083	7,832	23,756	21,463
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 4,157	$ 3,695	$ 11,744	$ 10,827

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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic:
Net Income (Loss) Attributable to Parent	$ 168,375	$ 208,895	$ 451,599	$ 599,175
Less: undistributed earnings allocated to participating securities	0	(96)	0	(314)
Net income attributable to common stockholders, basic	168,375	208,799	451,599	598,861
Diluted:
Net income attributable to common stockholders, basic	168,375	208,799	451,599	598,861
Add: undistributed earnings allocated to participating securities	0	5	0	19
Net income attributable to common stockholders, diluted	$ 168,375	$ 208,804	$ 451,599	$ 598,880
Denominator:
Weighted-average shares used in computing net income per share available to common stockholders, basic (in shares)	75,999	76,426	76,024	76,301
Add weighted-average effect of dilutive securities:
Stock options and RSUs (in shares)	3,308	4,308	3,489	4,784
Employee stock purchase plan (in shares)	6	19	6	19
Weighted-average shares used in computing net income per share available to common stockholders, diluted (in shares)	79,313	80,753	79,519	81,104
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 2.22	$ 2.73	$ 5.94	$ 7.85
Diluted (in dollars per share)	$ 2.12	$ 2.59	$ 5.68	$ 7.38

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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	268	318	479	270
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)	251	277	395	211
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	17	41	84	59

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income before income taxes	$ 201,619	$ 247,775	$ 538,683	$ 675,098
Provision for income taxes	$ 33,244	$ 38,880	$ 87,084	$ 75,923
Effective tax rate	16.50%	15.70%	16.20%	11.20%

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Information (Details) $ in Thousands	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)segment	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Segment Reporting [Abstract]
Number of Reportable Segments \| segment			1
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 605,431	$ 654,415	$ 1,669,030	$ 1,858,160
Long-lived assets	32,670		32,670		$ 39,273
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	452,693	532,318	1,289,182	1,418,325
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	89,588	75,439	226,189	298,768
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	63,150	$ 46,658	153,659	$ 141,067
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	24,469		24,469		32,565
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 8,201		$ 8,201		$ 6,708