Guarantor And Non-Guarantor Subsidiaries (Tables)

12 Months Ended

Oct. 26, 2013

Guarantor And Non-Guarantor Subsidiaries [Abstract]

Schedule Of Condensed Consolidated Balance Sheet

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

	Brocade Communications Systems, Inc.		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Current assets:
Cash and cash equivalents	$	396,710	$	9,301	$	580,986	$	—		$	986,997
Accounts receivable, net	159,436		328		89,834		—			249,598
Inventories	40,072		—		5,272		—			45,344
Intercompany receivables	—		464,443		—		(464,443		)	—
Other current assets	127,709		7		11,395		1,753			140,864
Total current assets	723,927		474,079		687,487		(462,690		)	1,422,803
Property and equipment, net	457,054		567		15,319		—			472,940
Investment in subsidiaries	1,026,247		—		—		(1,026,247		)	—
Other non-current assets	1,626,031		95,624		3,993		—			1,725,648
Total assets	$	3,833,259	$	570,270	$	706,799	$	(1,488,937	)	$	3,621,391
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	68,190	$	28	$	20,000	$	—		$	88,218
Current portion of long-term debt	2,996		—		—		—			2,996
Intercompany payables	409,590		—		54,853		(464,443		)	—
Other current liabilities	335,261		7,075		125,360		1,753			469,449
Total current liabilities	816,037		7,103		200,213		(462,690		)	560,663
Long-term debt, net of current portion	596,208		—		—		—			596,208
Other non-current liabilities	74,201		—		43,506		—			117,707
Total liabilities	1,486,446		7,103		243,719		(462,690		)	1,274,578
Total stockholders’ equity	2,346,813		563,167		463,080		(1,026,247		)	2,346,813
Total liabilities and stockholders’ equity	$	3,833,259	$	570,270	$	706,799	$	(1,488,937	)	$	3,621,391

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 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 consolidated statement of operations for the fiscal year ended October 26, 2013 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	1,347,055		$	4,257		$	871,552		$	—		$	2,222,864
Intercompany revenues	25,507			—			22,123			(47,630		)	—
Total net revenues	1,372,562			4,257			893,675			(47,630		)	2,222,864
Cost of revenues	534,699			38,991			232,807			7,488			813,985
Intercompany cost of revenues	(58,050		)	—			105,680			(47,630		)	—
Total cost of revenues	476,649			38,991			338,487			(40,142		)	813,985
Gross margin (loss)	895,913			(34,734		)	555,188			(7,488		)	1,408,879
Operating expenses	826,239			34,175			247,470			(7,488		)	1,100,396
Intercompany operating expenses (income)	(127,997		)	(22,443		)	150,440			—			—
Total operating expenses	698,242			11,732			397,910			(7,488		)	1,100,396
Income (loss) from operations	197,671			(46,466		)	157,278			—			308,483
Other income (expense)	25,481			258			(3,370		)	(391		)	21,978
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	223,152			(46,208		)	153,908			(391		)	330,461
Income tax expense	117,654			1,190			2,994			—			121,838
Equity in net earnings (losses) of subsidiaries	103,516			—			—			(103,516		)	—
Net income (loss)	$	209,014		$	(47,398	)	$	150,914		$	(103,907	)	$	208,623

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 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

Schedule Of Condensed Consolidated Statement Of Comprehensive Income

The following is the consolidated statement of comprehensive income (loss) for the fiscal year ended October 26, 2013 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	209,014	$	(47,398	)	$	150,914		$	(103,907	)	$	208,623
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—		—			(1,748		)	—			(1,748		)
Net gains reclassified into earnings	—		—			(376		)	—			(376		)
Net unrealized losses on cash flow hedges	—		—			(2,124		)	—			(2,124		)
Foreign currency translation adjustments	1,021		(628		)	(1,849		)	—			(1,456		)
Total other comprehensive income (loss)	1,021		(628		)	(3,973		)	—			(3,580		)
Total comprehensive income (loss)	$	210,035	$	(48,026	)	$	146,941		$	(103,907	)	$	205,043

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

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	195,181	$	(74,765	)	$	99,877		$	(25,112	)	$	195,181
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—		—			(3,468		)	—			(3,468		)
Net gains reclassified into earnings	—		—			7,433			—			7,433
Net unrealized gains on cash flow hedges	—		—			3,965			—			3,965
Foreign currency translation adjustments	128		11			(1,972		)	—			(1,833		)
Total other comprehensive income (loss)	128		11			1,993			—			2,132
Total comprehensive income (loss)	$	195,309	$	(74,754	)	$	101,870		$	(25,112	)	$	197,313

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

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net income (loss)	$	50,610		$	(114,733	)	$	(85,111	)	$	199,844	$	50,610
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	(6,701		)	—			4,870			—		(1,831		)
Net gains reclassified into earnings	—			—			(6,444		)	—		(6,444		)
Net unrealized losses on cash flow hedges	(6,701		)	—			(1,574		)	—		(8,275		)
Foreign currency translation adjustments	(89		)	458			(1,263		)	—		(894		)
Total other comprehensive income (loss)	(6,790		)	458			(2,837		)	—		(9,169		)
Total comprehensive income (loss)	$	43,820		$	(114,275	)	$	(87,948	)	$	199,844	$	41,441

Schedule Of Condensed Consolidated Statement Of Cash Flows

The following is the consolidated statement of cash flows for the fiscal year ended October 26, 2013 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by operating activities	$	281,478		$	8,503		$	161,048		$	—	$	451,029
Cash flows from investing activities:
Purchases of property and equipment	(44,786		)	(22		)	(7,563		)	—		(52,371		)
Net cash paid in connection with acquisition	(44,769		)	140			—			—		(44,629		)
Proceeds from collection of convertible note receivable	70,000			—			—			—		70,000
Net cash provided by (used in) investing activities	(19,555		)	118			(7,563		)	—		(27,000		)
Cash flows from financing activities:
Proceeds from senior unsecured notes	296,250			—			—			—		296,250
Payment of principal related to senior secured notes	(300,000		)	—			—			—		(300,000		)
Payment of debt issuance costs related to senior unsecured notes	(992		)	—			—			—		(992		)
Payment of principal related to capital leases	(1,627		)	—			—			—		(1,627		)
Common stock repurchases	(240,000		)	—			—			—		(240,000		)
Proceeds from issuance of common stock	93,771			—			—			—		93,771
Excess tax benefits from stock-based compensation	2,919			—			270			—		3,189
Net cash provided by (used in) financing activities	(149,679		)	—			270			—		(149,409		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(849		)	—		(849		)
Net increase in cash and cash equivalents	112,244			8,621			152,906			—		273,771
Cash and cash equivalents, beginning of period	284,466			680			428,080			—		713,226
Cash and cash equivalents, end of period	$	396,710		$	9,301		$	580,986		$	—	$	986,997

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 by (used in) 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