Common Stock, par value (dollars per share)

[Table of Contents](#iedfcb48a3788458f95ee4009debca3d0_7)PART I—FINANCIAL INFORMATION  
ITEM 1.     Financial StatementsFORTINET, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited, in millions, except per share amounts)

|  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | March 31,2022 |  | December 31,2021 |  |
| ASSETS |  |  |  |  |
| CURRENT ASSETS: |  |  |  |  |
| Cash and cash equivalents | $ | 923.5  |  |  | $ | 1,319.1  |  |  |
| Short-term investments | 1,185.7  |  |  | 1,194.0  |  |  |
| Marketable equity securities | 32.4  |  |  | 38.6  |  |  |
| Accounts receivable—net  | 790.4  |  |  | 807.7  |  |  |
| Inventory | 184.6  |  |  | 175.8  |  |  |
| Prepaid expenses and other current assets | 91.7  |  |  | 65.4  |  |  |
| Total current assets | 3,208.3  |  |  | 3,600.6  |  |  |
| LONG-TERM INVESTMENTS | 360.8  |  |  | 440.8  |  |  |
| PROPERTY AND EQUIPMENT—NET | 786.5  |  |  | 687.6  |  |  |
| DEFERRED CONTRACT COSTS | 437.5  |  |  | 423.3  |  |  |
| DEFERRED TAX ASSETS | 431.7  |  |  | 342.3  |  |  |
| GOODWILL | 123.8  |  |  | 125.1  |  |  |
| OTHER INTANGIBLE ASSETS—NET | 55.1  |  |  | 63.6  |  |  |
| OTHER ASSETS | 247.4  |  |  | 235.8  |  |  |
| TOTAL ASSETS | $ | 5,651.1  |  |  | $ | 5,919.1  |  |  |
| LIABILITIES AND EQUITY |  |  |  |  |
| CURRENT LIABILITIES: |  |  |  |  |
| Accounts payable | $ | 174.7  |  |  | $ | 148.4  |  |  |
| Accrued liabilities | 261.4  |  |  | 197.3  |  |  |
| Accrued payroll and compensation | 181.1  |  |  | 195.0  |  |  |
|  |  |  |  |  |
| Deferred revenue | 1,893.3  |  |  | 1,777.4  |  |  |
| Total current liabilities | 2,510.5  |  |  | 2,318.1  |  |  |
| DEFERRED REVENUE | 1,764.6  |  |  | 1,675.5  |  |  |
| INCOME TAX LIABILITIES | 82.7  |  |  | 79.5  |  |  |
| LONG-TERM DEBT | 988.9  |  |  | 988.4  |  |  |
| OTHER LIABILITIES | 71.2  |  |  | 59.2  |  |  |
| Total liabilities | 5,417.9  |  |  | 5,120.7  |  |  |
| COMMITMENTS AND CONTINGENCIES (Note 12) |  |  |  |  |
| EQUITY: |  |  |  |  |
| Common stock, $0.001 par value—300.0 shares authorized; 160.3 and 162.0 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 0.2  |  |  | 0.2  |  |  |
| Additional paid-in capital | 1,236.3  |  |  | 1,254.2  |  |  |
| Accumulated other comprehensive loss | (15.4) |  |  | (4.8) |  |  |
| Accumulated deficit | (1,003.4) |  |  | (467.9) |  |  |
|  |  |  |  |  |
| Total Fortinet, Inc. stockholders’ equity | 217.7  |  |  | 781.7  |  |  |
| Non-controlling interests | 15.5  |  |  | 16.7  |  |  |
| Total equity  | 233.2  |  |  | 798.4  |  |  |
| TOTAL LIABILITIES AND EQUITY | $ | 5,651.1  |  |  | $ | 5,919.1  |  |  |

See notes to condensed consolidated financial statements.3
