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Other Financial Information (Notes)
9 Months Ended
Sep. 30, 2011
Other Financial Information [Abstract] 
Other Financial Information [Text Block]
Other Financial Information

Warranties

The Company accrues for warranty costs as part of its cost of sales based on associated material costs, labor costs for customer support, and overhead at the time revenue is recognized. This provision is reported as accrued warranty within current liabilities on the condensed consolidated balance sheets. Changes in the Company’s warranty reserve were as follows (in millions):

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
Beginning balance
$
38.1

 
$
38.3

 
$
35.9

 
$
38.2

Provisions made during the period, net
13.0

 
13.7

 
40.7

 
37.9

Change in estimate
(0.2
)
 
(1.9
)
 
(3.1
)
 
(2.4
)
Actual costs incurred during the period
(12.0
)
 
(13.7
)
 
(34.6
)
 
(37.3
)
Ending balance
$
38.9

 
$
36.4

 
$
38.9

 
$
36.4



Deferred Revenue

Details of the Company's deferred revenue were as follows (in millions):
 
As of
 
September 30,
2011
 
December 31,
2010
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
277.8

 
$
294.1

Distributor inventory and other sell-through items
130.1

 
143.4

Deferred gross product revenue
407.9

 
437.5

Deferred cost of product revenue
(130.6
)
 
(148.8
)
Deferred product revenue, net
277.3

 
288.7

Deferred service revenue
608.5

 
595.7

Total
$
885.8

 
$
884.4

Reported as:
 
 
 
Current
$
668.8

 
$
660.2

Long-term
217.0

 
224.2

Total
$
885.8

 
$
884.4



Deferred product revenue primarily represents unrecognized revenue related to shipments to distributors that have not sold through to end-users, undelivered product commitments, and other shipments that have not met all revenue recognition criteria. Deferred product revenue is recorded net of the related costs of product revenue. Deferred service revenue represents customer payments made in advance for services, which include technical support, hardware and software maintenance, professional services, and training.

Restructuring Liabilities

In the third quarter of 2011, the Company implemented a restructuring plan (the "2011 Restructuring Plan") in an effort to better align its business operations with the current market and macroeconomic conditions. The 2011 Restructuring Plan primarily consisted of certain workforce reductions, and to a lesser extent, contract terminations.

During 2009, the Company implemented a restructuring plan (the "2009 Restructuring Plan") in an effort to better align its business operations with the market and macroeconomic conditions. The 2009 Restructuring Plan included restructuring of certain business functions that resulted in reductions of workforce and facilities. The Company recorded the majority of the restructuring charges associated with this plan during the years ended 2010 and 2009.

The Company recorded net restructuring charges of $16.8 million and $15.6 million, in the three and nine months ended September 30, 2011, respectively, primarily due to the implementation of its 2011 Restructuring Plan, and recorded $0.2 million and $8.6 million within restructuring in the condensed consolidated statements of operations during the three and nine months ended September 30, 2010, respectively, in connection with the restructuring plan implemented in 2009. As of September 30, 2011, remaining restructuring liability under the 2011 Restructuring Plan was related to severance costs to be paid out in the fourth quarter of 2011, as well as facilities related charges under the 2009 Restructuring Plan, which is expected to be completed through February 2015.

Restructuring charges were based on the Company's restructuring plans that were committed by management. Any changes in the estimates of executing the approved plans will be reflected in the Company's results of operations. The following table provides a summary of changes in the Company’s restructuring liability (in millions):

 
Remaining Liability as of
December 31, 2010
 
Charges
 
Cash payments
 
Non-cash Settlements and Other Adjustments
 
Remaining Liability as of
September 30, 2011
Facilities
$
7.7

 
$
0.1

 
$
(5.2
)
 
$
(1.5
)
 
$
1.1

Severance, contractual commitments, and other charges
0.2

 
16.7

 
(2.8
)
 
(1.9
)
 
12.2

Total
$
7.9

 
$
16.8

 
$
(8.0
)
 
$
(3.4
)
 
$
13.3



Other Expense and Income, Net

Other expense and income, net consists of the following (in millions):

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
Interest income
$
2.2

 
$
2.8

 
$
7.2

 
$
8.0

Interest expense
(14.0
)
 
(2.6
)
 
(35.6
)
 
(6.2
)
Other
(4.2
)
 
—

 
(7.7
)
 
3.9

Other (expense) income, net
$
(16.0
)
 
$
0.2

 
$
(36.1
)
 
$
5.7



Interest income primarily includes interest earned on the Company’s cash, cash equivalents, and investments. Interest expense primarily includes interest expense from long-term debt and customer financing arrangements. Other income and expense typically consists of investment and foreign exchange gains and losses and other non-operational income and expense items. In the three and nine months ended September 30, 2011, other included legal expenses unrelated to current or recent operations of $1.4 million and $6.8 million, respectively, and net loss on equity investments of $1.1 million and $1.0 million, respectively. In the nine months ended September 30, 2010, we recognized a gain of $3.2 million on privately-held equity investments.