Guarantor And Non-Guarantor Subsidiaries (Tables)

9 Months Ended

Jul. 28, 2012

Guarantor And Non-Guarantor Subsidiaries [Abstract]

Schedule Of Condensed Consolidated Balance Sheet

The following is the condensed consolidated balance sheet as of July 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	$	204,938	$	1,620		$	374,876	$	—		$	581,434
Accounts receivable, net	149,061		(1,554		)	83,648		—			231,155
Inventories	63,751		—			10,449		—			74,200
Intercompany receivables	—		465,891			—		(465,891		)	—
Other current assets	91,810		664			11,545		557			104,576
Total current assets	509,560		466,621			480,518		(465,334		)	991,365
Property and equipment, net	450,454		54,206			18,745		—			523,405
Investment in subsidiaries	1,284,970		—			—		(1,284,970		)	—
Other non-current assets	1,471,483		510,021			1,250		—			1,982,754
Total assets	$	3,716,467	$	1,030,848		$	500,513	$	(1,750,304	)	$	3,497,524
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	91,883	$	353		$	24,233	$	—		$	116,469
Current portion of long-term debt	8,515		—			—		—			8,515
Intercompany payables	423,467		—			42,424		(465,891		)	—
Other current liabilities	290,665		12,758			126,404		557			430,384
Total current liabilities	814,530		13,111			193,061		(465,334		)	555,368
Long-term debt, net of current portion	621,206		—			—		—			621,206
Other non-current liabilities	89,130		43			40,176		—			129,349
Total liabilities	1,524,866		13,154			233,237		(465,334		)	1,305,923
Total stockholders’ equity	2,191,601		1,017,694			267,276		(1,284,970		)	2,191,601
Total liabilities and stockholders’ equity	$	3,716,467	$	1,030,848		$	500,513	$	(1,750,304	)	$	3,497,524

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 July 28, 2012 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	353,594		$	1,038		$	200,700		$	—		$	555,332
Intercompany revenues	11,442			—			5,239			(16,681		)	—
Total net revenues	365,036			1,038			205,939			(16,681		)	555,332
Cost of revenues	145,292			10,291			56,246			3,025			214,854
Intercompany cost of revenues	(8,078		)	—			24,759			(16,681		)	—
Total cost of revenues	137,214			10,291			81,005			(13,656		)	214,854
Gross margin (loss)	227,822			(9,253		)	124,934			(3,025		)	340,478
Operating expenses	204,948			12,893			55,441			(3,025		)	270,257
Intercompany operating expenses (income)	(38,781		)	(7,971		)	46,752			—			—
Total operating expenses	166,167			4,922			102,193			(3,025		)	270,257
Income (loss) from operations	61,655			(14,175		)	22,741			—			70,221
Other income (expense)	(11,495		)	45			(476		)	—			(11,926		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	50,160			(14,130		)	22,265			—			58,295
Income tax expense	13,032			—			1,963			—			14,995
Equity in net earnings (losses) of subsidiaries	6,172			—			—			(6,172		)	—
Net income (loss)	$	43,300		$	(14,130	)	$	20,302		$	(6,172	)	$	43,300

The following is the condensed consolidated statement of income for the three months ended July 30, 2011 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	299,841		$	7,526		$	195,483		$	—		$	502,850
Intercompany revenues	15,753			367			11,211			(27,331		)	—
Total net revenues	315,594			7,893			206,694			(27,331		)	502,850
Cost of revenues	120,070			19,209			53,669			3,375			196,323
Intercompany cost of revenues	(8,122		)	—			35,452			(27,330		)	—
Total cost of revenues	111,948			19,209			89,121			(23,955		)	196,323
Gross margin (loss)	203,646			(11,316		)	117,573			(3,376		)	306,527
Operating expenses	204,259			14,794			56,628			(3,376		)	272,305
Intercompany operating expenses (income)	(32,891		)	(6,280		)	39,171			—			—
Total operating expenses	171,368			8,514			95,799			(3,376		)	272,305
Income (loss) from operations	32,278			(19,830		)	21,774			—			34,222
Other expense	(41,934		)	(76		)	(575		)	—			(42,585		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	(9,656		)	(19,906		)	21,199			—			(8,363		)
Income tax expense (benefit)	(11,444		)	35			1,109			—			(10,300		)
Equity in net earnings (losses) of subsidiaries	149			—			—			(149		)	—
Net income (loss)	$	1,937		$	(19,941	)	$	20,090		$	(149	)	$	1,937

The following is the condensed consolidated statement of income for the nine months ended July 28, 2012 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	1,046,498		$	3,777		$	609,138		$	—		$	1,659,413
Intercompany revenues	36,049			—			19,308			(55,357		)	—
Total net revenues	1,082,547			3,777			628,446			(55,357		)	1,659,413
Cost of revenues	417,480			38,279			173,170			8,155			637,084
Intercompany cost of revenues	(23,244		)	—			78,601			(55,357		)	—
Total cost of revenues	394,236			38,279			251,771			(47,202		)	637,084
Gross margin (loss)	688,311			(34,502		)	376,675			(8,155		)	1,022,329
Operating expenses	620,073			43,382			175,620			(8,155		)	830,920
Intercompany operating expenses (income)	(105,706		)	(20,532		)	126,238			—			—
Total operating expenses	514,367			22,850			301,858			(8,155		)	830,920
Income (loss) from operations	173,944			(57,352		)	74,817			—			191,409
Other expense	(34,692		)	(61		)	(4,396		)	—			(39,149		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	139,252			(57,413		)	70,421			—			152,260
Income tax expense	4,910						6,170			—			11,080
Equity in net earnings (losses) of subsidiaries	6,838			—			—			(6,838		)	—
Net income (loss)	$	141,180		$	(57,413	)	$	64,251		$	(6,838	)	$	141,180

The following is the condensed consolidated statement of income for the nine months ended July 30, 2011 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	948,200		$	22,407		$	626,362		$	—		$	1,596,969
Intercompany revenues	76,729			1,571			26,521			(104,821		)	—
Total net revenues	1,024,929			23,978			652,883			(104,821		)	1,596,969
Cost of revenues	397,419			62,416			170,470			10,646			640,951
Intercompany cost of revenues	4,962			—			99,858			(104,820		)	—
Total cost of revenues	402,381			62,416			270,328			(94,174		)	640,951
Gross margin (loss)	622,548			(38,438		)	382,555			(10,647		)	956,018
Operating expenses	636,393			43,614			163,836			(10,647		)	833,196
Intercompany operating expenses (income)	(110,684		)	(19,133		)	129,817			—			—
Total operating expenses	525,709			24,481			293,653			(10,647		)	833,196
Income (loss) from operations	96,839			(62,919		)	88,902			—			122,822
Other expense	(83,231		)	(502		)	(784		)	—			(84,517		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	13,608			(63,421		)	88,118			—			38,305
Income tax expense (benefit)	(22,093		)	46			5,418			—			(16,629		)
Equity in net earnings (losses) of subsidiaries	19,233			—			—			(19,233		)	—
Net income (loss)	$	54,934		$	(63,467	)	$	82,700		$	(19,233	)	$	54,934

Schedule Of Condensed Consolidated Statement Of Cash Flows

The following is the condensed consolidated statement of cash flows for the nine months ended July 28, 2012 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by (used in) operating activities	$	304,610		$	(716	)	$	76,484		$	—	$	380,378
Cash flows from investing activities:
Proceeds from sale of subsidiary	35			—			—			—		35
Purchases of property and equipment	(47,341		)	—			(8,664		)	—		(56,005		)
Net cash used in investing activities	(47,306		)	—			(8,664		)	—		(55,970		)
Cash flows from financing activities:
Payment of principal related to the term loan	(160,000		)	—			—			—		(160,000		)
Payment of principal related to capital leases	(1,389		)	—			—			—		(1,389		)
Common stock repurchases	(70,153		)	—			—			—		(70,153		)
Proceeds from issuance of common stock	76,472			—			—			—		76,472
Excess tax benefits from stock-based compensation	1,338			—			—			—		1,338
Net cash used in financing activities	(153,732		)	—			—			—		(153,732		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(4,252		)	—		(4,252		)
Net increase (decrease) in cash and cash equivalents	103,572			(716		)	63,568			—		166,424
Cash and cash equivalents, beginning of period	101,366			1,528			311,308			—		414,202
Cash and cash equivalents, end of period	$	204,938		$	812		$	374,876		$	—	$	580,626

The following is the condensed consolidated statement of cash flows for the nine months ended July 30, 2011 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by operating activities	$	135,029		$	431		$	107,539		$	—	$	242,999
Cash flows from investing activities:
Purchases of short-term investments	—			(38		)	—			—		(38		)
Proceeds from maturities and sale of short-term investments	—			1,604			—			—		1,604
Purchases of property and equipment	(70,389		)	(24		)	(6,248		)	—		(76,661		)
Net cash provided by (used in) investing activities	(70,389		)	1,542			(6,248		)	—		(75,095		)
Cash flows from financing activities:
Payment of principal related to the term loan	(309,897		)	—			—			—		(309,897		)
Payment of fees related to the term loan	(1,090		)	—			—			—		(1,090		)
Proceeds from term loan	198,949			—			—			—		198,949
Payment of principal related to capital leases	(1,311		)	—			—			—		(1,311		)
Common stock repurchases	(10,044		)	—			—			—		(10,044		)
Proceeds from issuance of common stock	93,333			—			—			—		93,333
Excess tax benefits (detriments) from stock-based compensation	(249		)	—			168			—		(81		)
Net cash provided by (used in) financing activities	(30,309		)	—			168			—		(30,141		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			812			—		812
Net increase in cash and cash equivalents	34,331			1,973			102,271			—		138,575
Cash and cash equivalents, beginning of period	23,455			6,907			303,622			—		333,984
Cash and cash equivalents, end of period	$	57,786		$	8,880		$	405,893		$	—	$	472,559