Guarantor And Non-Guarantor Subsidiaries (Tables)

3 Months Ended

Jan. 25, 2014

Guarantor And Non-Guarantor Subsidiaries [Abstract]

Schedule Of Condensed Consolidated Balance Sheet

The following is the condensed consolidating balance sheet as of January 25, 2014 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Current assets:
Cash and cash equivalents	$	348,411	$	8,673		$	641,603	$	—		$	998,687
Accounts receivable, net	126,232		28			92,000		—			218,260
Inventories	41,976		—			1,271		—			43,247
Intercompany receivables	—		471,290			—		(471,290		)	—
Other current assets	141,793		(56		)	10,225		3,976			155,938
Total current assets	658,412		479,935			745,099		(467,314		)	1,416,132
Property and equipment, net	444,958		464			13,945		—			459,367
Investment in subsidiaries	1,069,051		—			—		(1,069,051		)	—
Other non-current assets	1,616,186		82,548			3,604		—			1,702,338
Total assets	$	3,788,607	$	562,947		$	762,648	$	(1,536,365	)	$	3,577,837
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	57,131	$	—		$	21,507	$	—		$	78,638
Current portion of long-term debt	3,039		—			—		—			3,039
Intercompany payables	402,118		—			69,172		(471,290		)	—
Other current liabilities	284,922		5,289			114,877		3,976			409,064
Total current liabilities	747,210		5,289			205,556		(467,314		)	490,741
Long-term debt, net of current portion	595,694		—			—		—			595,694
Other non-current liabilities	101,374		—			45,699		—			147,073
Total liabilities	1,444,278		5,289			251,255		(467,314		)	1,233,508
Total stockholders’ equity	2,344,329		557,658			511,393		(1,069,051		)	2,344,329
Total liabilities and stockholders’ equity	$	3,788,607	$	562,947		$	762,648	$	(1,536,365	)	$	3,577,837

The following is the condensed consolidating 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

Schedule Of Condensed Consolidated Statement Of Income

The following is the condensed consolidating statement of operations for the three months ended January 25, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	323,116		$	799		$	240,620		$	—		$	564,535
Intercompany revenues	6,393			—			3,541			(9,934		)	—
Total net revenues	329,509			799			244,161			(9,934		)	564,535
Cost of revenues	120,632			6,616			63,123			1,494			191,865
Intercompany cost of revenues	(15,174		)	—			25,108			(9,934		)	—
Total cost of revenues	105,458			6,616			88,231			(8,440		)	191,865
Gross margin (loss)	224,051			(5,817		)	155,930			(1,494		)	372,670
Operating expenses	192,196			6,658			53,820			(1,494		)	251,180
Intercompany operating expenses (income)	(43,164		)	(7,092		)	50,256			—			—
Total operating expenses	149,032			(434		)	104,076			(1,494		)	251,180
Income (loss) from operations	75,019			(5,383		)	51,854			—			121,490
Other expense	(10,392		)	(126		)	(14		)	—			(10,532		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	64,627			(5,509		)	51,840			—			110,958
Income tax expense	28,431			—			1,643			—			30,074
Equity in net earnings (losses) of subsidiaries	44,689			—			—			(44,689		)	—
Net income (loss)	$	80,885		$	(5,509	)	$	50,197		$	(44,689	)	$	80,884

The following is the condensed consolidating statement of operations 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	)

Schedule Of Condensed Consolidated Statement Of Comprehensive Income [Table Text Block]

The following is the condensed consolidating statement of comprehensive income (loss) for the three months ended January 25, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	80,885		$	(5,509	)	$	50,197		$	(44,689	)	$	80,884
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—			—			(924		)	—			(924		)
Net gains reclassified into earnings	—			—			(31		)	—			(31		)
Net unrealized losses on cash flow hedges	—			—			(955		)	—			(955		)
Foreign currency translation adjustments	(63		)	171			(931		)	—			(823		)
Total other comprehensive income (loss)	(63		)	171			(1,886		)	—			(1,778		)
Total comprehensive income (loss)	$	80,822		$	(5,338	)	$	48,311		$	(44,689	)	$	79,106

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

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	(20,865	)	$	(13,581	)	$	40,326		$	(27,135	)	$	(21,255	)
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—			—			(76		)	—			(76		)
Net gains reclassified into earnings	—			—			(179		)	—			(179		)
Net unrealized losses on cash flow hedges	—			—			(255		)	—			(255		)
Foreign currency translation adjustments	398			—			(778		)	—			(380		)
Total other comprehensive income (loss)	398			—			(1,033		)	—			(635		)
Total comprehensive income (loss)	$	(20,467	)	$	(13,581	)	$	39,293		$	(27,135	)	$	(21,890	)

Schedule Of Condensed Consolidated Statement Of Cash Flows

The following is the condensed consolidating statement of cash flows for the three months ended January 25, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by (used in) operating activities	$	53,429		$	(628	)	$	56,668		$	—	$	109,469
Cash flows from investing activities:
Purchases of property and equipment	(10,816		)	—			(2,150		)	—		(12,966		)
Proceeds from sale of network adapter business	3,081			—			6,914			—		9,995
Proceeds from collection of note receivable	250			—			—			—		250
Net cash provided by (used in) investing activities	(7,485		)	—			4,764			—		(2,721		)
Cash flows from financing activities:
Payment of principal related to capital leases	(608		)	—			—			—		(608		)
Common stock repurchases	(140,380		)	—			—			—		(140,380		)
Proceeds from issuance of common stock	32,410			—			—			—		32,410
Excess tax benefits from stock-based compensation	14,335			—			—			—		14,335
Net cash used in financing activities	(94,243		)	—			—			—		(94,243		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(815		)	—		(815		)
Net increase (decrease) in cash and cash equivalents	(48,299		)	(628		)	60,617			—		11,690
Cash and cash equivalents, beginning of period	396,710			9,301			580,986			—		986,997
Cash and cash equivalents, end of period	$	348,411		$	8,673		$	641,603		$	—	$	998,687

The following is the condensed consolidating 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 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