Segment Information

3 Months Ended

Jan. 26, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Currently, the Company’s CODM is its Chief Executive Officer.

Brocade is organized into four operating segments, of which two are individually reportable segments: Storage Area Networking (“SAN”) Products, formerly referred to as Data Storage Products, and Global Services. The other two operating segments, Ethernet Switching & Internet Protocol (“IP”) Routing and Application Delivery Products (“ADP”), combine to form a third reportable segment: IP Networking Products, formerly referred to as Ethernet Products. These segments are organized principally by product category.

Financial decisions and the allocation of resources are based on the information from the Company’s internal management reporting system. At this point in time, the Company does not track all of its assets by operating segments. The majority of the Company’s assets as of January 26, 2013 were attributable to its United States operations.

Summarized financial information by reportable segment for the three months ended January 26, 2013 and January 28, 2012, based on the internal management reporting system, is as follows (in thousands):

	SAN Products		IP Networking Products		Global Services		Total
Three months ended January 26, 2013
Net revenues	$	361,734	$	140,513	$	86,482	$	588,729
Cost of revenues	96,953		77,422		40,429		214,804
Gross margin	$	264,781	$	63,091	$	46,053	$	373,925
Three months ended January 28, 2012
Net revenues	$	352,872	$	123,430	$	84,340	$	560,642
Cost of revenues	95,838		79,569		40,466		215,873
Gross margin	$	257,034	$	43,861	$	43,874	$	344,769