Guarantor And Non-Guarantor Subsidiaries (Tables)

12 Months Ended

Oct. 27, 2012

Guarantor And Non-Guarantor Subsidiaries [Abstract]

Schedule Of Condensed Consolidated Balance Sheet

The following is the consolidated balance sheet as of October 27, 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	$	284,466	$	680		$	428,080	$	—		$	713,226
Accounts receivable, net	150,367		(1,847		)	84,619		—			233,139
Inventories	55,084		—			13,095		—			68,179
Intercompany receivables	—		478,133			—		(478,133		)	—
Other current assets	124,690		514			15,606		225			141,035
Total current assets	614,607		477,480			541,400		(477,908		)	1,155,579
Property and equipment, net	500,530		213			18,197		—			518,940
Investment in subsidiaries	871,157		—			—		(871,157		)	—
Other non-current assets	1,814,729		90,766			1,247		—			1,906,742
Total assets	$	3,801,023	$	568,459		$	560,844	$	(1,349,065	)	$	3,581,261
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	92,661	$	—		$	24,689	$	—		$	117,350
Current portion of long-term debt	2,226		(249		)	—		—			1,977
Intercompany payables	434,981		—			43,152		(478,133		)	—
Other current liabilities	346,959		7,628			136,329		225			491,141
Total current liabilities	876,827		7,379			204,170		(477,908		)	610,468
Long-term debt, net of current portion	599,203		—			—		—			599,203
Other non-current liabilities	89,173		2,429			44,168		—			135,770
Total liabilities	1,565,203		9,808			248,338		(477,908		)	1,345,441
Total stockholders’ equity	2,235,820		558,651			312,506		(871,157		)	2,235,820
Total liabilities and stockholders’ equity	$	3,801,023	$	568,459		$	560,844	$	(1,349,065	)	$	3,581,261

The following is the 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 consolidated statement of operations for the fiscal year ended October 27, 2012 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	1,409,705		$	4,685		$	823,380		$	—		$	2,237,770
Intercompany revenues	44,152			—			21,709			(65,861		)	—
Total net revenues	1,453,857			4,685			845,089			(65,861		)	2,237,770
Cost of revenues	559,835			49,935			234,889			10,092			854,751
Intercompany cost of revenues	(35,070		)	—			100,931			(65,861		)	—
Total cost of revenues	524,765			49,935			335,820			(55,769		)	854,751
Gross margin (loss)	929,092			(45,250		)	509,269			(10,092		)	1,383,019
Operating expenses	827,318			56,838			231,226			(10,092		)	1,105,290
Intercompany operating expenses (income)	(138,197		)	(27,319		)	165,516			—			—
Total operating expenses	689,121			29,519			396,742			(10,092		)	1,105,290
Income (loss) from operations	239,971			(74,769		)	112,527			—			277,729
Other income (expense)	(49,470		)	4			(3,862		)	—			(53,328		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	190,501			(74,765		)	108,665			—			224,401
Income tax expense	20,432			—			8,788			—			29,220
Equity in net earnings (losses) of subsidiaries	25,112			—			—			(25,112		)	—
Net income (loss)	$	195,181		$	(74,765	)	$	99,877		$	(25,112	)	$	195,181

The following is the consolidated statement of operations for the fiscal year ended October 29, 2011 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	1,285,732		$	27,569		$	834,141		$	—		$	2,147,442
Intercompany revenues	88,063			1,753			35,980			(125,796		)	—
Total net revenues	1,373,795			29,322			870,121			(125,796		)	2,147,442
Cost of revenues	531,162			85,540			233,448			13,758			863,908
Intercompany cost of revenues	(2,263		)	—			128,059			(125,796		)	—
Total cost of revenues	528,899			85,540			361,507			(112,038		)	863,908
Gross margin (loss)	844,896			(56,218		)	508,614			(13,758		)	1,283,534
Operating expenses	821,018			76,645			222,109			(13,758		)	1,106,014
Intercompany operating expenses (income)	(138,789		)	(25,694		)	164,483			—			—
Total operating expenses	682,229			50,951			386,592			(13,758		)	1,106,014
Income (loss) from operations	162,667			(107,169		)	122,022			—			177,520
Other income (expense)	109,902			(7,518		)	(200,476		)	—			(98,092		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	272,569			(114,687		)	(78,454		)	—			79,428
Income tax expense	22,115			46			6,657			—			28,818
Equity in net earnings (losses) of subsidiaries	(199,844		)	—			—			199,844			—
Net income (loss)	$	50,610		$	(114,733	)	$	(85,111	)	$	199,844		$	50,610

The following is the consolidated statement of operations for fiscal year ended October 30, 2010 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	1,287,646		$	50,731		$	752,776		$	—		$	2,091,153
Intercompany revenues	102,178			13,954			25,464			(141,596		)	—
Total net revenues	1,389,824			64,685			778,240			(141,596		)	2,091,153
Cost of revenues	529,641			112,477			214,024			3,891			860,033
Intercompany cost of revenues	40,588			—			101,008			(141,596		)	—
Total cost of revenues	570,229			112,477			315,032			(137,705		)	860,033
Gross margin (loss)	819,595			(47,792		)	463,208			(3,891		)	1,231,120
Operating expenses	783,968			63,855			179,357			(3,891		)	1,023,289
Intercompany operating expenses (income)	(167,746		)	(30,349		)	198,095			—			—
Total operating expenses	616,222			33,506			377,452			(3,891		)	1,023,289
Income (loss) from operations	203,373			(81,298		)	85,756			—			207,831
Other expense	(80,276		)	(1,628		)	(18,957		)	—			(100,861		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	123,097			(82,926		)	66,799			—			106,970
Income tax expense (benefit)	(20,672		)	1,266			9,853			—			(9,553		)
Equity in net earnings (losses) of subsidiaries	(27,246		)	—			—			27,246			—
Net income (loss)	$	116,523		$	(84,192	)	$	56,946		27,246			$	116,523

Schedule Of Condensed Consolidated Statement Of Cash Flows

The following is the consolidated statement of cash flows for the fiscal year ended October 27, 2012 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by (used in) operating activities	$	464,097		$	(1,799	)	$	128,572		$	—	$	590,870
Cash flows from investing activities:
Proceeds from sale of subsidiary	35			—			—			—		35
Proceeds from maturities and sale of short-term investments	—			952			—			—		952
Purchases of property and equipment	(62,791		)	—			(10,006		)	—		(72,797		)
Net cash provided by (used in) investing activities	(62,756		)	952			(10,006		)	—		(71,810		)
Cash flows from financing activities:
Payment of principal related to the term loan	(190,000		)	—			—			—		(190,000		)
Payment of principal related to capital leases	(1,866		)	—			—			—		(1,866		)
Common stock repurchases	(130,209		)	—			—			—		(130,209		)
Proceeds from issuance of common stock	98,791			—			—			—		98,791
Excess tax benefits from stock-based compensation	5,042			—			99			—		5,141
Net cash provided by (used in) financing activities	(218,242		)	—			99			—		(218,143		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(1,893		)	—		(1,893		)
Net increase (decrease) in cash and cash equivalents	183,099			(847		)	116,772			—		299,024
Cash and cash equivalents, beginning of period	101,367			1,527			311,308			—		414,202
Cash and cash equivalents, end of period	$	284,466		$	680		$	428,080		$	—	$	713,226

The following is the consolidated statement of cash flows for the fiscal year ended October 29, 2011 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided (used) by operating activities	$	436,714		$	(5,852	)	$	18,370		$	—	$	449,232
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	(86,447		)	(33		)	(10,317		)	—		(96,797		)
Proceeds from sale of subsidiary	4,966			(1,061		)	—			—		3,905
Net cash provided by (used in) investing activities	(81,481		)	472			(10,317		)	—		(91,326		)
Cash flows from financing activities:
Payment of principal related to the term loan	(359,898		)	—			—			—		(359,898		)
Payment of fees related to the term loan	(1,167		)	—			—			—		(1,167		)
Proceeds from term loan	198,950			—			—			—		198,950
Payment of principal related to capital leases	(1,761		)	—			—			—		(1,761		)
Common stock repurchases	(210,698		)	—			—			—		(210,698		)
Proceeds from issuance of common stock	97,152			—			—			—		97,152
Excess tax benefits from stock-based compensation	101			—			211			—		312
Net cash provided by (used in) financing activities	(277,321		)	—			211			—		(277,110		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(578		)	—		(578		)
Net increase (decrease) in cash and cash equivalents	77,912			(5,380		)	7,686			—		80,218
Cash and cash equivalents, beginning of period	23,455			6,907			303,622			—		333,984
Cash and cash equivalents, end of period	$	101,367		$	1,527		$	311,308		$	—	$	414,202

The following is the consolidated statement of cash flows for the fiscal year ended October 30, 2010 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by operating activities	$	71,094		$	169,986		$	57,433		$	—	$	298,513
Cash flows from investing activities:
Purchases of short-term investments	—			(53		)	—			—		(53		)
Purchases of non-marketable minority equity investments	(200		)	—			—			—		(200		)
Proceeds from maturities and sale of short-term investments	—			3,255			—			—		3,255
Proceeds from sale of property	30,185			—			—			—		30,185
Purchases of property and equipment	(196,193		)	471			(5,899		)	—		(201,621		)
Net cash provided by (used in) investing activities	(166,208		)	3,673			(5,899		)	—		(168,434		)
Cash flows from financing activities:
Payment of debt issuance costs related to the senior secured notes	(3,666		)	—			—			—		(3,666		)
Payment of principal related to the revolving credit facility	(14,050		)	—			—			—		(14,050		)
Payment of principal related to the convertible subordinated debt	—			(172,500		)	—			—		(172,500		)
Payment of principal related to the term loan	(583,029		)	—			—			—		(583,029		)
Payment of principal related to capital leases	(1,173		)	—			—			—		(1,173		)
Common stock repurchases	(25,004		)	—			—			—		(25,004		)
Proceeds from senior secured notes	587,968			—			—			—		587,968
Proceeds from issuance of common stock	81,593			—			—			—		81,593
Excess tax benefits from stock-based compensation	1,420			—			741			—		2,161
Net cash provided by (used in) financing activities	44,059			(172,500		)	741			—		(127,700		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(2,588		)	—		(2,588		)
Net increase (decrease) in cash and cash equivalents	(51,055		)	1,159			49,687			—		(209		)
Cash and cash equivalents, beginning of period	74,510			5,748			253,935			—		334,193
Cash and cash equivalents, end of period	$	23,455		$	6,907		$	303,622		$	—	$	333,984