Guarantor And Non-Guarantor Subsidiaries (Tables)

3 Months Ended

Jan. 26, 2013

Guarantor And Non-Guarantor Subsidiaries [Abstract]

Schedule Of Condensed Consolidated Balance Sheet

The following is the condensed consolidated balance sheet as of January 26, 2013 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Current assets:
Cash and cash equivalents	$	208,609	$	3,293	$	471,714	$	—		$	683,616
Restricted cash	311,926		—		—		—			311,926
Accounts receivable, net	127,656		535		88,515		—			216,706
Inventories	49,802		—		10,089		—			59,891
Intercompany receivables	—		479,426		—		(479,426		)	—
Other current assets	102,723		777		14,344		976			118,820
Total current assets	800,716		484,031		584,662		(478,450		)	1,390,959
Property and equipment, net	492,699		824		16,759		—			510,282
Investment in subsidiaries	953,755		—		—		(953,755		)	—
Other non-current assets	1,744,376		125,401		1,164		—			1,870,941
Total assets	$	3,991,546	$	610,256	$	602,585	$	(1,432,205	)	$	3,772,182
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	80,357	$	132	$	21,319	$	—		$	101,808
Current portion of long-term debt	302,198		—		—		—			302,198
Intercompany payables	424,868		—		54,558		(479,426		)	—
Other current liabilities	286,819		9,092		127,273		976			424,160
Total current liabilities	1,094,242		9,224		203,150		(478,450		)	828,166
Long-term debt, net of current portion	597,440		—		—		—			597,440
Other non-current liabilities	91,581		2,428		44,284		—			138,293
Total liabilities	1,783,263		11,652		247,434		(478,450		)	1,563,899
Total stockholders’ equity	2,208,283		598,604		355,151		(953,755		)	2,208,283
Total liabilities and stockholders’ equity	$	3,991,546	$	610,256	$	602,585	$	(1,432,205	)	$	3,772,182

The following is the condensed 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 and cash equivalents	$	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

Schedule Of Condensed Consolidated Statement Of Income

The following is the condensed consolidated statement of income for the three months ended January 26, 2013 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Revenues	$	363,055		$	1,067		$	224,607	$	—		$	588,729
Intercompany revenues	9,781			—			3,355		(13,136		)	—
Total net revenues	372,836			1,067			227,962		(13,136		)	588,729
Cost of revenues	136,622			10,564			65,565		2,053			214,804
Intercompany cost of revenues	(9,119		)	—			22,255		(13,136		)	—
Total cost of revenues	127,503			10,564			87,820		(11,083		)	214,804
Gross margin (loss)	245,333			(9,497		)	140,142		(2,053		)	373,925
Operating expenses	213,763			10,821			58,103		(2,053		)	280,634
Intercompany operating expenses (income)	(32,604		)	(6,831		)	39,435		—			—
Total operating expenses	181,159			3,990			97,538		(2,053		)	280,634
Income (loss) from operations	64,174			(13,487		)	42,604		—			93,291
Other income (expense)	(25,931		)	(94		)	114		(391		)	(26,302		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	38,243			(13,581		)	42,718		(391		)	66,989
Income tax expense	85,852			—			2,392		—			88,244
Equity in net earnings (losses) of subsidiaries	26,744			—			—		(26,744		)	—
Net income (loss)	$	(20,865	)	$	(13,581	)	$	40,326	$	(27,135	)	$	(21,255	)

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

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	340,144		$	1,489		$	219,009		$	—		$	560,642
Intercompany revenues	10,660			—			6,720			(17,380		)	—
Total net revenues	350,804			1,489			225,729			(17,380		)	560,642
Cost of revenues	131,136			17,136			65,378			2,223			215,873
Intercompany cost of revenues	(8,374		)	—			25,754			(17,380		)	—
Total cost of revenues	122,762			17,136			91,132			(15,157		)	215,873
Gross margin (loss)	228,042			(15,647		)	134,597			(2,223		)	344,769
Operating expenses	198,255			15,327			63,991			(2,223		)	275,350
Intercompany operating expenses (income)	(36,756		)	(6,022		)	42,778			—			—
Total operating expenses	161,499			9,305			106,769			(2,223		)	275,350
Income (loss) from operations	66,543			(24,952		)	27,828			—			69,419
Other income (expense)	(10,282		)	5			(3,765		)	—			(14,042		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	56,261			(24,947		)	24,063			—			55,377
Income tax expense (benefit)	(5,557		)	—			2,350			—			(3,207		)
Equity in net earnings (losses) of subsidiaries	(3,234		)	—			—			3,234			—
Net income (loss)	$	58,584		$	(24,947	)	$	21,713		$	3,234		$	58,584

Schedule Of Condensed Consolidated Statement Of Cash Flows

The following is the condensed consolidated statement of cash flows for the three months ended January 26, 2013 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by operating activities	$	12,204		$	2,496		$	44,790		$	—	$	59,490
Cash flows from investing activities:
Purchases of property and equipment	(17,532		)	(23		)	(931		)	—		(18,486		)
Net cash acquired (paid) in connection with acquisition	(44,769		)	140			—			—		(44,629		)
Net cash provided by (used in) investing activities	(62,301		)	117			(931		)	—		(63,115		)
Cash flows from financing activities:
Proceeds from senior unsecured notes	296,250			—			—			—		296,250
Payment of principal related to capital leases	(484		)	—			—			—		(484		)
Common stock repurchases	(47,530		)	—			—			—		(47,530		)
Proceeds from issuance of common stock	23,812			—			—			—		23,812
Excess tax benefits from stock-based compensation	2,192			—			—			—		2,192
Increase in restricted cash	(300,000		)	—			—			—		(300,000		)
Net cash used in financing activities	(25,760		)	—			—			—		(25,760		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(225		)	—		(225		)
Net increase (decrease) in cash and cash equivalents	(75,857		)	2,613			43,634			—		(29,610		)
Cash and cash equivalents, beginning of period	284,466			680			428,080			—		713,226
Cash and cash equivalents, end of period	$	208,609		$	3,293		$	471,714		$	—	$	683,616

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

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by (used in) operating activities	$	116,939		$	(113	)	$	10,225		$	—	$	127,051
Cash flows from investing activities:
Proceeds from sale of subsidiary	(215		)	—			—			—		(215		)
Purchases of property and equipment	(15,241		)	—			(2,315		)	—		(17,556		)
Net cash used in investing activities	(15,456		)	—			(2,315		)	—		(17,771		)
Cash flows from financing activities:
Payment of principal related to the term loan	(70,000		)	—			—			—		(70,000		)
Payment of principal related to capital leases	(456		)	—			—			—		(456		)
Proceeds from issuance of common stock	31,941			—			—			—		31,941
Excess tax benefits from stock-based compensation	1,147			—			—			—		1,147
Net cash used in financing activities	(37,368		)	—			—			—		(37,368		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(1,875		)	—		(1,875		)
Net increase (decrease) in cash and cash equivalents	64,115			(113		)	6,035			—		70,037
Cash and cash equivalents, beginning of period	101,366			1,528			311,308			—		414,202
Cash and cash equivalents, end of period	$	165,481		$	1,415		$	317,343		$	—	$	484,239