Segment Information

3 Months Ended

Jan. 25, 2014

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 three individually reportable segments: Storage Area Networking (“SAN”) Products, Internet Protocol (“IP”) Networking Products, and Global Services. 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 25, 2014, were attributable to its United States operations.

Summarized financial information by reportable segment for the three months ended January 25, 2014, and January 26, 2013, based on the internal management reporting system, is as follows (in thousands):

	SAN Products		IP Networking Products		Global Services		Total
Three months ended January 25, 2014
Net revenues	$	355,456	$	119,749	$	89,330	$	564,535
Cost of revenues	92,941		60,686		38,238		191,865
Gross margin	$	262,515	$	59,063	$	51,092	$	372,670
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