Guarantor And Non-Guarantor Subsidiaries (Tables)

6 Months Ended

May 03, 2014

Guarantor And Non-Guarantor Subsidiaries [Abstract]

Schedule Of Condensed Consolidated Balance Sheet

The following is the condensed consolidating balance sheet as of May 3, 2014 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors		Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Assets
Current assets:
Cash and cash equivalents	$	431,158	$	8,403	$	698,052		$	—		$	1,137,613
Accounts receivable, net	115,769		12		78,023			—			193,804
Inventories	43,088		—		(2,315		)	—			40,773
Intercompany receivables	—		476,800		—			(476,800		)	—
Other current assets	152,246		112		11,595			291			164,244
Total current assets	742,261		485,327		785,355			(476,509		)	1,536,434
Property and equipment, net	438,747		325		13,650			—			452,722
Investment in subsidiaries	1,116,621		—		—			(1,116,621		)	—
Other non-current assets	1,534,165		82,020		3,568			—			1,619,753
Total assets	$	3,831,794	$	567,672	$	802,573		$	(1,593,130	)	$	3,608,909
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	62,749	$	—	$	17,203		$	—		$	79,952
Current portion of long-term debt	2,277		—		—			—			2,277
Intercompany payables	412,299		—		64,501			(476,800		)	—
Other current liabilities	312,899		4,550		122,220			291			439,960
Total current liabilities	790,224		4,550		203,924			(476,509		)	522,189
Long-term debt, net of current portion	595,452		—		—			—			595,452
Other non-current liabilities	110,371		—		45,150			—			155,521
Total liabilities	1,496,047		4,550		249,074			(476,509		)	1,273,162
Total stockholders’ equity	2,335,747		563,122		553,499			(1,116,621		)	2,335,747
Total liabilities and stockholders’ equity	$	3,831,794	$	567,672	$	802,573		$	(1,593,130	)	$	3,608,909

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 May 3, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Revenues	$	313,634		$	582		$	222,694	$	—		$	536,910
Intercompany revenues	7,422			—			3,136		(10,558		)	—
Total net revenues	321,056			582			225,830		(10,558		)	536,910
Cost of revenues	121,481			2,206			57,400		1,531			182,618
Intercompany (income) cost of revenues	(14,985		)	—			25,543		(10,558		)	—
Total cost of revenues	106,496			2,206			82,943		(9,027		)	182,618
Gross margin (loss)	214,560			(1,624		)	142,887		(1,531		)	354,292
Operating expenses	287,601			261			47,766		(1,531		)	334,097
Intercompany operating expenses (income)	(46,576		)	(7,356		)	53,932		—			—
Total operating expenses	241,025			(7,095		)	101,698		(1,531		)	334,097
Income (loss) from operations	(26,465		)	5,471			41,189		—			20,195
Other income (expense)	(9,445		)	(8		)	199		—			(9,254		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	(35,910		)	5,463			41,388		—			10,941
Income tax expense	22,853			—			1,772		—			24,625
Equity in net earnings (losses) of subsidiaries	45,078			—			—		(45,078		)	—
Net income (loss)	$	(13,685	)	$	5,463		$	39,616	$	(45,078	)	$	(13,684	)

The following is the condensed consolidating statement of operations for the three months ended April 27, 2013 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	313,525		$	1,056		$	224,203		$	—		$	538,784
Intercompany revenues	6,453			—			6,470			(12,923		)	—
Total net revenues	319,978			1,056			230,673			(12,923		)	538,784
Cost of revenues	131,123			11,649			59,726			2,174			204,672
Intercompany (income) cost of revenues	(18,103		)	—			31,026			(12,923		)	—
Total cost of revenues	113,020			11,649			90,752			(10,749		)	204,672
Gross margin (loss)	206,958			(10,593		)	139,921			(2,174		)	334,112
Operating expenses	196,641			10,232			72,234			(2,174		)	276,933
Intercompany operating expenses (income)	(42,281		)	(7,446		)	49,727			—			—
Total operating expenses	154,360			2,786			121,961			(2,174		)	276,933
Income (loss) from operations	52,598			(13,379		)	17,960			—			57,179
Other income (expense)	(7,421		)	50			(3,030		)	—			(10,401		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	45,177			(13,329		)	14,930			—			46,778
Income tax expense (benefit)	(2,817		)	866			1,780			—			(171		)
Equity in net earnings (losses) of subsidiaries	(1,045		)	—			—			1,045			—
Net income (loss)	$	46,949		$	(14,195	)	$	13,150		$	1,045		$	46,949

The following is the condensed consolidating statement of operations for the six months ended May 3, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Revenues	$	636,750		$	1,381		$	463,314	$	—		$	1,101,445
Intercompany revenues	13,815			—			6,677		(20,492		)	—
Total net revenues	650,565			1,381			469,991		(20,492		)	1,101,445
Cost of revenues	242,113			8,822			120,523		3,025			374,483
Intercompany (income) cost of revenues	(30,159		)	—			50,651		(20,492		)	—
Total cost of revenues	211,954			8,822			171,174		(17,467		)	374,483
Gross margin (loss)	438,611			(7,441		)	298,817		(3,025		)	726,962
Operating expenses	479,797			6,919			101,586		(3,025		)	585,277
Intercompany operating expenses (income)	(89,740		)	(14,448		)	104,188		—			—
Total operating expenses	390,057			(7,529		)	205,774		(3,025		)	585,277
Income (loss) from operations	48,554			88			93,043		—			141,685
Other income (expense)	(19,837		)	(134		)	185		—			(19,786		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	28,717			(46		)	93,228		—			121,899
Income tax expense	51,284			—			3,415		—			54,699
Equity in net earnings (losses) of subsidiaries	89,767			—			—		(89,767		)	—
Net income (loss)	$	67,200		$	(46	)	$	89,813	$	(89,767	)	$	67,200

The following is the condensed consolidating statement of operations for the six months ended April 27, 2013 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	676,580		$	2,123		$	448,810		$	—		$	1,127,513
Intercompany revenues	16,234			—			9,825			(26,059		)	—
Total net revenues	692,814			2,123			458,635			(26,059		)	1,127,513
Cost of revenues	267,745			22,213			125,291			4,227			419,476
Intercompany (income) cost of revenues	(27,222		)	—			53,281			(26,059		)	—
Total cost of revenues	240,523			22,213			178,572			(21,832		)	419,476
Gross margin (loss)	452,291			(20,090		)	280,063			(4,227		)	708,037
Operating expenses	410,404			21,053			130,337			(4,227		)	557,567
Intercompany operating expenses (income)	(74,885		)	(14,277		)	89,162			—			—
Total operating expenses	335,519			6,776			219,499			(4,227		)	557,567
Income (loss) from operations	116,772			(26,866		)	60,564			—			150,470
Other expense	(33,352		)	(44		)	(2,916		)	(391		)	(36,703		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	83,420			(26,910		)	57,648			(391		)	113,767
Income tax expense	83,035			866			4,172			—			88,073
Equity in net earnings (losses) of subsidiaries	25,699			—			—			(25,699		)	—
Net income (loss)	$	26,084		$	(27,776	)	$	53,476		$	(26,090	)	$	25,694

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 May 3, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Net income (loss)	$	(13,685	)	$	5,463	$	39,616	$	(45,078	)	$	(13,684	)
Other comprehensive income (loss), net of tax:
Unrealized gains on cash flow hedges:
Change in unrealized gains and losses	—			—		1,094		—			1,094
Net gains reclassified into earnings	—			—		32		—			32
Net unrealized gains on cash flow hedges	—			—		1,126		—			1,126
Foreign currency translation adjustments	(68		)	—		1,366		—			1,298
Total other comprehensive income (loss)	(68		)	—		2,492		—			2,424
Total comprehensive income (loss)	$	(13,753	)	$	5,463	$	42,108	$	(45,078	)	$	(11,260	)

The following is the condensed consolidating statement of comprehensive income (loss) for the three months ended April 27, 2013 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net income (loss)	$	46,949	$	(14,195	)	$	13,150		$	1,045	$	46,949
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—		—			(1,915		)	—		(1,915		)
Net gains reclassified into earnings	—		—			(32		)	—		(32		)
Net unrealized losses on cash flow hedges	—		—			(1,947		)	—		(1,947		)
Foreign currency translation adjustments	100		—			(1,862		)	—		(1,762		)
Total other comprehensive income (loss)	100		—			(3,809		)	—		(3,709		)
Total comprehensive income (loss)	$	47,049	$	(14,195	)	$	9,341		$	1,045	$	43,240

The following is the condensed consolidating statement of comprehensive income (loss) for the six months ended May 3, 2014 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Net income (loss)	$	67,200	$	(46	)	$	89,813	$	(89,767	)	$	67,200
Other comprehensive income (loss), net of tax:
Unrealized gains on cash flow hedges:
Change in unrealized gains and losses	—		—			170		—			170
Net gains reclassified into earnings	—		—			1		—			1
Net unrealized gains on cash flow hedges	—		—			171		—			171
Foreign currency translation adjustments	40		—			435		—			475
Total other comprehensive income (loss)	40		—			606		—			646
Total comprehensive income (loss)	$	67,240	$	(46	)	$	90,419	$	(89,767	)	$	67,846

The following is the condensed consolidating statement of comprehensive income (loss) for the six months ended April 27, 2013 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	26,084	$	(27,776	)	$	53,476		$	(26,090	)	$	25,694
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—		—			(1,992		)	—			(1,992		)
Net gains reclassified into earnings	—		—			(210		)	—			(210		)
Net unrealized losses on cash flow hedges	—		—			(2,202		)	—			(2,202		)
Foreign currency translation adjustments	498		—			(2,640		)	—			(2,142		)
Total other comprehensive income (loss)	498		—			(4,842		)	—			(4,344		)
Total comprehensive income (loss)	$	26,582	$	(27,776	)	$	48,634		$	(26,090	)	$	21,350

Schedule Of Condensed Consolidated Statement Of Cash Flows

The following is the condensed consolidating statement of cash flows for the six months ended May 3, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by (used in) operating activities	$	165,349		$	(898	)	$	113,262		$	—	$	277,713
Cash flows from investing activities:
Purchases of property and equipment	(23,773		)	—			(3,622		)	—		(27,395		)
Purchases of non-marketable minority equity investments	(223		)	—			—			—		(223		)
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	(20,665		)	—			3,292			—		(17,373		)
Cash flows from financing activities:
Payment of principal related to capital leases	(1,749		)	—			—			—		(1,749		)
Common stock repurchases	(190,432		)	—			—			—		(190,432		)
Proceeds from issuance of common stock	54,530			—			—			—		54,530
Excess tax benefits from stock-based compensation	27,415			—			—			—		27,415
Net cash used in financing activities	(110,236		)	—			—			—		(110,236		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			512			—		512
Net increase (decrease) in cash and cash equivalents	34,448			(898		)	117,066			—		150,616
Cash and cash equivalents, beginning of period	396,710			9,301			580,986			—		986,997
Cash and cash equivalents, end of period	$	431,158		$	8,403		$	698,052		$	—	$	1,137,613

The following is the condensed consolidating statement of cash flows for the six months ended April 27, 2013 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by operating activities	$	96,996		$	2,521		$	79,588		$	—	$	179,105
Cash flows from investing activities:
Purchases of property and equipment	(27,887		)	(23		)	(3,658		)	—		(31,568		)
Net cash acquired (paid) in connection with acquisition	(44,769		)	140			—			—		(44,629		)
Net cash provided by (used in) investing activities	(72,656		)	117			(3,658		)	—		(76,197		)
Cash flows from financing activities:
Proceeds from senior unsecured notes	296,250			—			—			—		296,250
Payment of debt issuance costs related to senior unsecured notes	(549		)	—			—			—		(549		)
Payment of principal related to senior secured notes	(300,000		)	—			—			—		(300,000		)
Payment of principal related to capital leases	(975		)	—			—			—		(975		)
Common stock repurchases	(86,179		)	—			—			—		(86,179		)
Proceeds from issuance of common stock	35,899			—			—			—		35,899
Excess tax benefits from stock-based compensation	5,440			—			—			—		5,440
Net cash used in financing activities	(50,114		)	—			—			—		(50,114		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(1,722		)	—		(1,722		)
Net increase (decrease) in cash and cash equivalents	(25,774		)	2,638			74,208			—		51,072
Cash and cash equivalents, beginning of period	284,466			680			428,080			—		713,226
Cash and cash equivalents, end of period	$	258,692		$	3,318		$	502,288		$	—	$	764,298