Segment Information

9 Months Ended

Jul. 27, 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: Storage Area Networking (“SAN”) Products, formerly referred to as Data Storage Products, Global Services, Ethernet Switching & Internet Protocol (“IP”) Routing, and Application Delivery Products (“ADP”). SAN and Global Services are two individually reportable segments, and the other two operating segments, Ethernet Switching & IP Routing and 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 July 27, 2013, were attributable to its United States operations.

Summarized financial information by reportable segment for the three and nine months ended July 27, 2013, and July 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 July 27, 2013
Net revenues	$	314,087	$	133,906	$	88,558	$	536,551
Cost of revenues	85,611		74,830		37,908		198,349
Gross margin	$	228,476	$	59,076	$	50,650	$	338,202
Three months ended July 28, 2012
Net revenues	$	321,464	$	145,817	$	88,051	$	555,332
Cost of revenues	87,113		86,524		41,217		214,854
Gross margin	$	234,351	$	59,293	$	46,834	$	340,478
Nine months ended July 27, 2013
Net revenues	$	994,909	$	407,077	$	262,078	$	1,664,064
Cost of revenues	270,461		228,954		118,410		617,825
Gross margin	$	724,448	$	178,123	$	143,668	$	1,046,239
Nine months ended July 28, 2012
Net revenues	$	1,017,258	$	382,429	$	259,726	$	1,659,413
Cost of revenues	273,308		239,913		123,863		637,084
Gross margin	$	743,950	$	142,516	$	135,863	$	1,022,329