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Guarantor And Non-Guarantor Subsidiaries (Tables)
 6 Months Ended
Apr. 28, 2012
Guarantor And Non-Guarantor Subsidiaries [Abstract]  
Schedule Of Condensed Consolidated Balance Sheet
The following is the condensed consolidated balance sheet as of April 28, 2012 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and short-term investments
$
186,562

 
$
3,585

 
$
354,989

 
$
—

 
$
545,136

Accounts receivable, net
146,108

 
(1,696
)
 
73,425

 
—

 
217,837

Inventories
59,350

 
—

 
22,201

 
—

 
81,551

Intercompany receivables
—

 
453,449

 
—

 
(453,449
)
 
—

Other current assets
100,360

 
696

 
11,529

 
1,706

 
114,291

Total current assets
492,380

 
456,034

 
462,144

 
(451,743
)
 
958,815

Property and equipment, net
454,602

 
54,667

 
17,957

 
—

 
527,226

Investment in subsidiaries
1,283,055

 
—

 
—

 
(1,283,055
)
 
—

Other non-current assets
1,490,192

 
535,525

 
1,254

 
—

 
2,026,971

Total assets
$
3,720,229

 
$
1,046,226

 
$
481,355

 
$
(1,734,798
)
 
$
3,513,012

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
85,280

 
$
363

 
$
17,056

 
$
—

 
$
102,699

Current portion of long-term debt
17,330

 
—

 
—

 
—

 
17,330

Intercompany payables
406,451

 
—

 
46,998

 
(453,449
)
 
—

Other current liabilities
292,135

 
13,823

 
125,441

 
1,706

 
433,105

Total current liabilities
801,196

 
14,186

 
189,495

 
(451,743
)
 
553,134

Long-term debt, net of current portion
652,365

 
—

 
—

 
—

 
652,365

Other non-current liabilities
91,242

 
216

 
40,629

 
—

 
132,087

Total liabilities
1,544,803

 
14,402

 
230,124

 
(451,743
)
 
1,337,586

Total stockholders’ equity
2,175,426

 
1,031,824

 
251,231

 
(1,283,055
)
 
2,175,426

Total liabilities and stockholders’ equity
$
3,720,229

 
$
1,046,226

 
$
481,355

 
$
(1,734,798
)
 
$
3,513,012

The following is the condensed consolidated balance sheet as of October 29, 2011 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and short-term investments
$
101,367

 
$
2,301

 
$
311,308

 
$
—

 
$
414,976

Accounts receivable, net
157,839

 
(2,149
)
 
93,451

 
—

 
249,141

Inventories
50,000

 
—

 
24,172

 
—

 
74,172

Intercompany receivables
—

 
446,455

 
—

 
(446,455
)
 
—

Other current assets
87,495

 
805

 
15,609

 
2,003

 
105,912

Total current assets
396,701

 
447,412

 
444,540

 
(444,452
)
 
844,201

Property and equipment, net
460,347

 
55,594

 
16,443

 
—

 
532,384

Investment in subsidiaries
1,285,356

 
—

 
—

 
(1,285,356
)
 
—

Other non-current assets
1,506,086

 
590,318

 
1,319

 
—

 
2,097,723

Total assets
$
3,648,490

 
$
1,093,324

 
$
462,302

 
$
(1,729,808
)
 
$
3,474,308

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
85,700

 
$
376

 
$
23,395

 
$
—

 
$
109,471

Current portion of long-term debt
40,539

 
—

 
—

 
—

 
40,539

Intercompany payables
377,228

 
—

 
69,227

 
(446,455
)
 
—

Other current liabilities
276,982

 
17,261

 
119,731

 
2,003

 
415,977

Total current liabilities
780,449

 
17,637

 
212,353

 
(444,452
)
 
565,987

Long-term debt, net of current portion
748,904

 
—

 
—

 
—

 
748,904

Other non-current liabilities
104,999

 
580

 
39,700

 
—

 
145,279

Total liabilities
1,634,352

 
18,217

 
252,053

 
(444,452
)
 
1,460,170

Total stockholders’ equity
2,014,138

 
1,075,107

 
210,249

 
(1,285,356
)
 
2,014,138

Total liabilities and stockholders’ equity
$
3,648,490

 
$
1,093,324

 
$
462,302

 
$
(1,729,808
)
 
$
3,474,308
Schedule Of Condensed Consolidated Statement Of Income
The following is the condensed consolidated statement of income for the three months ended April 28, 2012 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Revenues
$
352,760

 
$
1,250

 
$
189,429

 
$
—

 
$
543,439

Intercompany revenues
13,947

 
—

 
7,349

 
(21,296
)
 
—

Total net revenues
366,707

 
1,250

 
196,778

 
(21,296
)
 
543,439

Cost of revenues
141,052

 
10,852

 
51,546

 
2,907

 
206,357

Intercompany cost of revenues
(6,792
)
 
—

 
28,088

 
(21,296
)
 
—

Total cost of revenues
134,260

 
10,852

 
79,634

 
(18,389
)
 
206,357

Gross margin (loss)
232,447

 
(9,602
)
 
117,144

 
(2,907
)
 
337,082

Operating expenses
216,870

 
15,162

 
56,188

 
(2,907
)
 
285,313

Intercompany operating expenses
(30,169
)
 
(6,539
)
 
36,708

 
—

 
—

Total operating expenses
186,701

 
8,623

 
92,896

 
(2,907
)
 
285,313

Income (loss) from operations
45,746

 
(18,225
)
 
24,248

 
—

 
51,769

Other income (expense)
(12,915
)
 
(111
)
 
(155
)
 
—

 
(13,181
)
Income (loss) before income tax provision (benefit) and equity in net earnings (losses) of subsidiaries
32,831

 
(18,336
)
 
24,093

 
—

 
38,588

Income tax provision (benefit)
(2,565
)
 
—

 
1,857

 
—

 
(708
)
Equity in net earnings (losses) of subsidiaries
3,900

 
—

 
—

 
(3,900
)
 
—

Net income (loss)
$
39,296

 
$
(18,336
)
 
$
22,236

 
$
(3,900
)
 
$
39,296

The following is the condensed consolidated statement of income for the three months ended April 30, 2011 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Revenues
$
321,440

 
$
7,417

 
$
219,507

 
$
—

 
$
548,364

Intercompany revenues
29,958

 
427

 
7,598

 
(37,983
)
 
—

Total net revenues
351,398

 
7,844

 
227,105

 
(37,983
)
 
548,364

Cost of revenues
137,612

 
22,552

 
55,917

 
3,674

 
219,755

Intercompany cost of revenues
6,909

 
—

 
31,074

 
(37,983
)
 
—

Total cost of revenues
144,521

 
22,552

 
86,991

 
(34,309
)
 
219,755

Gross margin (loss)
206,877

 
(14,708
)
 
140,114

 
(3,674
)
 
328,609

Operating expenses
219,252

 
12,591

 
54,243

 
(3,674
)
 
282,412

Intercompany operating expenses
(35,607
)
 
(6,472
)
 
42,079

 
—

 
—

Total operating expenses
183,645

 
6,119

 
96,322

 
(3,674
)
 
282,412

Income (loss) from operations
23,232

 
(20,827
)
 
43,792

 
—

 
46,197

Other income (expense)
(20,112
)
 
312

 
(929
)
 
—

 
(20,729
)
Income (loss) before income tax provision (benefit) and equity in net earnings (losses) of subsidiaries
3,120

 
(20,515
)
 
42,863

 
—

 
25,468

Income tax provision (benefit)
(2,888
)
 
11

 
2,266

 
—

 
(611
)
Equity in net earnings (losses) of subsidiaries
20,071

 
—

 
—

 
(20,071
)
 
—

Net income (loss)
$
26,079

 
$
(20,526
)
 
$
40,597

 
$
(20,071
)
 
$
26,079

The following is the condensed consolidated statement of income for the six months ended April 28, 2012 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Revenues
$
692,904

 
$
2,739

 
$
408,438

 
$
—

 
$
1,104,081

Intercompany revenues
24,607

 
—

 
14,069

 
(38,676
)
 
—

Total net revenues
717,511

 
2,739

 
422,507

 
(38,676
)
 
1,104,081

Cost of revenues
272,188

 
27,988

 
116,924

 
5,130

 
422,230

Intercompany cost of revenues
(15,166
)
 
—

 
53,842

 
(38,676
)
 
—

Total cost of revenues
257,022

 
27,988

 
170,766

 
(33,546
)
 
422,230

Gross margin (loss)
460,489

 
(25,249
)
 
251,741

 
(5,130
)
 
681,851

Operating expenses
415,125

 
30,489

 
120,179

 
(5,130
)
 
560,663

Intercompany operating expenses
(66,925
)
 
(12,561
)
 
79,486

 
—

 
—

Total operating expenses
348,200

 
17,928

 
199,665

 
(5,130
)
 
560,663

Income (loss) from operations
112,289

 
(43,177
)
 
52,076

 
—

 
121,188

Other income (expense)
(23,197
)
 
(106
)
 
(3,920
)
 
—

 
(27,223
)
Income (loss) before income tax provision (benefit) and equity in net earnings (losses) of subsidiaries
89,092

 
(43,283
)
 
48,156

 
—

 
93,965

Income tax provision (benefit)
(8,122
)
 
 
 
4,207

 
—

 
(3,915
)
Equity in net earnings (losses) of subsidiaries
666

 
—

 
—

 
(666
)
 
—

Net income (loss)
$
97,880

 
$
(43,283
)
 
$
43,949

 
$
(666
)
 
$
97,880

The following is the condensed consolidated statement of income for the six months ended April 30, 2011 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Revenues
$
648,360

 
$
14,881

 
$
430,879

 
$
—

 
$
1,094,120

Intercompany revenues
60,976

 
1,204

 
15,310

 
(77,490
)
 
—

Total net revenues
709,336

 
16,085

 
446,189

 
(77,490
)
 
1,094,120

Cost of revenues
277,349

 
43,207

 
116,801

 
7,271

 
444,628

Intercompany cost of revenues
13,084

 
—

 
64,406

 
(77,490
)
 
—

Total cost of revenues
290,433

 
43,207

 
181,207

 
(70,219
)
 
444,628

Gross margin (loss)
418,903

 
(27,122
)
 
264,982

 
(7,271
)
 
649,492

Operating expenses
432,134

 
28,820

 
107,208

 
(7,271
)
 
560,891

Intercompany operating expenses
(77,793
)
 
(12,853
)
 
90,646

 
—

 
—

Total operating expenses
354,341

 
15,967

 
197,854

 
(7,271
)
 
560,891

Income (loss) from operations
64,562

 
(43,089
)
 
67,128

 
—

 
88,601

Other income (expense)
(41,297
)
 
(426
)
 
(209
)
 
—

 
(41,932
)
Income (loss) before income tax provision (benefit) and equity in net earnings (losses) of subsidiaries
23,265

 
(43,515
)
 
66,919

 
—

 
46,669

Income tax provision (benefit)
(10,648
)
 
11

 
4,309

 
—

 
(6,328
)
Equity in net earnings (losses) of subsidiaries
19,084

 
—

 
—

 
(19,084
)
 
—

Net income (loss)
$
52,997

 
$
(43,526
)
 
$
62,610

 
$
(19,084
)
 
$
52,997
Schedule Of Condensed Consolidated Statement Of Cash Flows
The following is the condensed consolidated statement of cash flows for the six months ended April 28, 2012 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Net cash provided by operating activities
$
215,395

 
$
1,260

 
$
50,664

 
$
—

 
$
267,319

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Proceeds from sale of subsidiary
35

 
—

 
—

 
—

 
35

Purchases of property and equipment
(32,841
)
 
—

 
(5,428
)
 
—

 
(38,269
)
Net cash used in investing activities
(32,806
)
 
—

 
(5,428
)
 
—

 
(38,234
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Payment of principal related to the term loan
(120,000
)
 
—

 
—

 
—

 
(120,000
)
Payment of principal related to capital leases
(920
)
 
—

 
—

 
—

 
(920
)
Common stock repurchases
(25,066
)
 
—

 
—

 
—

 
(25,066
)
Proceeds from issuance of common stock
47,261

 
—

 
—

 
—

 
47,261

Excess tax benefits from stock-based compensation
1,332

 
—

 
—

 
—

 
1,332

Net cash used in financing activities
(97,393
)
 
—

 
—

 
—

 
(97,393
)
Effect of exchange rate fluctuations on cash and cash equivalents
—

 
—

 
(1,555
)
 
—

 
(1,555
)
Net increase in cash and cash equivalents
85,196

 
1,260

 
43,681

 
—

 
130,137

Cash and cash equivalents, beginning of period
101,366

 
1,528

 
311,308

 
—

 
414,202

Cash and cash equivalents, end of period
$
186,562

 
$
2,788

 
$
354,989

 
$
—

 
$
544,339

The following is the condensed consolidated statement of cash flows for the six months ended April 30, 2011 (in thousands):
 
Brocade
Communications
Systems, Inc.
 
Subsidiary
Guarantors
 
Non-Guarantor Subsidiaries
 
Consolidating
Adjustments
 
Total
Net cash provided by operating activities
$
147,352

 
$
3,067

 
$
81,522

 
$
—

 
$
231,941

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of short-term investments
—

 
(38
)
 
—

 
—

 
(38
)
Proceeds from maturities and sale of short-term investments
—

 
20

 
—

 
—

 
20

Purchases of property and equipment
(44,897
)
 
(18
)
 
(5,660
)
 
—

 
(50,575
)
Net cash used in investing activities
(44,897
)
 
(36
)
 
(5,660
)
 
—

 
(50,593
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Payment of principal related to the term loan
(98,640
)
 
—

 
—

 
—

 
(98,640
)
Payment of principal related to capital leases
(868
)
 
—

 
—

 
—

 
(868
)
Proceeds from issuance of common stock
47,388

 
—

 
—

 
—

 
47,388

Excess tax benefits (detriments) from stock-based compensation
(1,044
)
 
—

 
167

 
—

 
(877
)
Net cash provided by (used in) financing activities
(53,164
)
 
—

 
167

 
—

 
(52,997
)
Effect of exchange rate fluctuations on cash and cash equivalents
—

 
—

 
1,227

 
—

 
1,227

Net increase in cash and cash equivalents
49,291

 
3,031

 
77,256

 
—

 
129,578

Cash and cash equivalents, beginning of period
23,455

 
6,907

 
303,622

 
—

 
333,984

Cash and cash equivalents, end of period
$
72,746

 
$
9,938

 
$
380,878

 
$
—

 
$
463,562