Guarantor And Non-Guarantor Subsidiaries (Tables)

9 Months Ended

Aug. 02, 2014

Guarantor And Non-Guarantor Subsidiaries [Abstract]

Schedule Of Condensed Consolidated Balance Sheet

The following is the condensed consolidating balance sheet as of August 2, 2014 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets
Current assets:
Cash and cash equivalents	$	373,413	$	8,284	$	767,690	$	—		$	1,149,387
Accounts receivable, net	115,564		12		76,240		—			191,816
Inventories	38,290		—		2,296		—			40,586
Intercompany receivables	—		486,581		—		(486,581		)	—
Other current assets	149,247		61		10,408		655			160,371
Total current assets	676,514		494,938		856,634		(485,926		)	1,542,160
Property and equipment, net	431,159		233		16,803		—			448,195
Investment in subsidiaries	1,156,473		—		—		(1,156,473		)	—
Other non-current assets	1,526,781		81,338		3,416		—			1,611,535
Total assets	$	3,790,927	$	576,509	$	876,853	$	(1,642,399	)	$	3,601,890
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	58,285	$	—	$	25,957	$	—		$	84,242
Current portion of long-term debt	1,817		—		—		—			1,817
Intercompany payables	381,223		—		105,358		(486,581		)	—
Other current liabilities	299,555		3,990		114,175		655			418,375
Total current liabilities	740,880		3,990		245,490		(485,926		)	504,434
Long-term debt, net of current portion	595,420		—		—		—			595,420
Other non-current liabilities	118,026		—		47,409		—			165,435
Total liabilities	1,454,326		3,990		292,899		(485,926		)	1,265,289
Total stockholders’ equity	2,336,601		572,519		583,954		(1,156,473		)	2,336,601
Total liabilities and stockholders’ equity	$	3,790,927	$	576,509	$	876,853	$	(1,642,399	)	$	3,601,890

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 August 2, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	303,946		$	366		$	241,152		$	—		$	545,464
Intercompany revenues	6,127			—			3,807			(9,934		)	—
Total net revenues	310,073			366			244,959			(9,934		)	545,464
Cost of revenues	118,972			170			63,192			1,417			183,751
Intercompany (income) cost of revenues	(15,723		)	—			25,657			(9,934		)	—
Total cost of revenues	103,249			170			88,849			(8,517		)	183,751
Gross margin (loss)	206,824			196			156,110			(1,417		)	361,713
Operating expenses	185,967			223			59,043			(1,417		)	243,816
Intercompany operating expenses (income)	(55,043		)	(9,481		)	64,524			—			—
Total operating expenses	130,924			(9,258		)	123,567			(1,417		)	243,816
Income (loss) from operations	75,900			9,454			32,543			—			117,897
Other income (expense)	(3,658		)	(58		)	(161		)	—			(3,877		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	72,242			9,396			32,382			—			114,020
Income tax expense	25,325			—			1,343			—			26,668
Equity in net earnings (losses) of subsidiaries	40,435			—			—			(40,435		)	—
Net income (loss)	$	87,352		$	9,396		$	31,039		$	(40,435	)	$	87,352

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

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	327,422		$	1,053		$	208,076		$	—		$	536,551
Intercompany revenues	5,647			—			7,855			(13,502		)	—
Total net revenues	333,069			1,053			215,931			(13,502		)	536,551
Cost of revenues	137,260			6,891			52,453			1,745			198,349
Intercompany (income) cost of revenues	(14,489		)	—			27,991			(13,502		)	—
Total cost of revenues	122,771			6,891			80,444			(11,757		)	198,349
Gross margin (loss)	210,298			(5,838		)	135,487			(1,745		)	338,202
Operating expenses	198,119			9,888			57,577			(1,745		)	263,839
Intercompany operating expenses (income)	(14,763		)	(11		)	14,774			—			—
Total operating expenses	183,356			9,877			72,351			(1,745		)	263,839
Income (loss) from operations	26,942			(15,715		)	63,136			—			74,363
Other income (expense)	67,657			350			(570		)	—			67,437
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	94,599			(15,365		)	62,566			—			141,800
Income tax expense (benefit)	26,079			—			(2,975		)	—			23,104
Equity in net earnings (losses) of subsidiaries	50,176			—			—			(50,176		)	—
Net income (loss)	$	118,696		$	(15,365	)	$	65,541		$	(50,176	)	$	118,696

The following is the condensed consolidating statement of operations for the nine months ended August 2, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Revenues	$	940,696		$	1,747		$	704,466	$	—		$	1,646,909
Intercompany revenues	19,942			—			10,484		(30,426		)	—
Total net revenues	960,638			1,747			714,950		(30,426		)	1,646,909
Cost of revenues	361,085			8,992			183,715		4,442			558,234
Intercompany (income) cost of revenues	(45,882		)	—			76,308		(30,426		)	—
Total cost of revenues	315,203			8,992			260,023		(25,984		)	558,234
Gross margin (loss)	645,435			(7,245		)	454,927		(4,442		)	1,088,675
Operating expenses	665,764			7,142			160,629		(4,442		)	829,093
Intercompany operating expenses (income)	(144,783		)	(23,929		)	168,712		—			—
Total operating expenses	520,981			(16,787		)	329,341		(4,442		)	829,093
Income (loss) from operations	124,454			9,542			125,586		—			259,582
Other income (expense)	(23,495		)	(192		)	24		—			(23,663		)
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	100,959			9,350			125,610		—			235,919
Income tax expense	76,609			—			4,758		—			81,367
Equity in net earnings (losses) of subsidiaries	130,202			—			—		(130,202		)	—
Net income (loss)	$	154,552		$	9,350		$	120,852	$	(130,202	)	$	154,552

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

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	1,004,002		$	3,176		$	656,886		$	—		$	1,664,064
Intercompany revenues	21,881			—			17,680			(39,561		)	—
Total net revenues	1,025,883			3,176			674,566			(39,561		)	1,664,064
Cost of revenues	405,005			29,104			177,744			5,972			617,825
Intercompany (income) cost of revenues	(41,711		)	—			81,272			(39,561		)	—
Total cost of revenues	363,294			29,104			259,016			(33,589		)	617,825
Gross margin (loss)	662,589			(25,928		)	415,550			(5,972		)	1,046,239
Operating expenses	608,523			30,941			187,914			(5,972		)	821,406
Intercompany operating expenses (income)	(89,648		)	(14,288		)	103,936			—			—
Total operating expenses	518,875			16,653			291,850			(5,972		)	821,406
Income (loss) from operations	143,714			(42,581		)	123,700			—			224,833
Other expense	34,305			306			(3,486		)	(391		)	30,734
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries	178,019			(42,275		)	120,214			(391		)	255,567
Income tax expense	109,114			866			1,197			—			111,177
Equity in net earnings (losses) of subsidiaries	75,875			—			—			(75,875		)	—
Net income (loss)	$	144,780		$	(43,141	)	$	119,017		$	(76,266	)	$	144,390

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 August 2, 2014 (in thousands):

	Brocade Communications Systems, Inc.		Subsidiary Guarantors		Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	87,352	$	9,396	$	31,039		$	(40,435	)	$	87,352
Other comprehensive income (loss), net of tax:
Unrealized gains on cash flow hedges:
Change in unrealized gains and losses	—		—		(155		)	—			(155		)
Net gains reclassified into earnings	—		—		(218		)	—			(218		)
Net unrealized gains on cash flow hedges	—		—		(373		)	—			(373		)
Foreign currency translation adjustments	18		—		(209		)	—			(191		)
Total other comprehensive income (loss)	18		—		(582		)	—			(564		)
Total comprehensive income (loss)	$	87,370	$	9,396	$	30,457		$	(40,435	)	$	86,788

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

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	118,696	$	(15,365	)	$	65,541		$	(50,176	)	$	118,696
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—		—			(1,000		)	—			(1,000		)
Net gains reclassified into earnings	—		—			(10		)	—			(10		)
Net unrealized losses on cash flow hedges	—		—			(1,010		)	—			(1,010		)
Foreign currency translation adjustments	23		—			(1,493		)	—			(1,470		)
Total other comprehensive income (loss)	23		—			(2,503		)	—			(2,480		)
Total comprehensive income (loss)	$	118,719	$	(15,365	)	$	63,038		$	(50,176	)	$	116,216

The following is the condensed consolidating statement of comprehensive income (loss) for the nine months ended August 2, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	154,552		$	9,350	$	120,852		$	(130,202	)	$	154,552
Other comprehensive income (loss), net of tax:
Unrealized gains on cash flow hedges:
Change in unrealized gains and losses	—			—		14			—			14
Net gains reclassified into earnings	—			—		(217		)	—			(217		)
Net unrealized gains on cash flow hedges	—			—		(203		)	—			(203		)
Foreign currency translation adjustments	(113		)	171		226			—			284
Total other comprehensive income (loss)	(113		)	171		23			—			81
Total comprehensive income (loss)	$	154,439		$	9,521	$	120,875		$	(130,202	)	$	154,633

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

	Brocade Communications Systems, Inc.		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net income (loss)	$	144,780	$	(43,141	)	$	119,017		$	(76,266	)	$	144,390
Other comprehensive income (loss), net of tax:
Unrealized losses on cash flow hedges:
Change in unrealized gains and losses	—		—			(2,998		)	—			(2,998		)
Net gains reclassified into earnings	—		—			(214		)	—			(214		)
Net unrealized losses on cash flow hedges	—		—			(3,212		)	—			(3,212		)
Foreign currency translation adjustments	1,149		(628		)	(4,133		)	—			(3,612		)
Total other comprehensive income (loss)	1,149		(628		)	(7,345		)	—			(6,824		)
Total comprehensive income (loss)	$	145,929	$	(43,769	)	$	111,672		$	(76,266	)	$	137,566

Schedule Of Condensed Consolidated Statement Of Cash Flows

The following is the condensed consolidating statement of cash flows for the nine months ended August 2, 2014 (in thousands):

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by (used in) operating activities	$	196,642		$	(1,017	)	$	188,119		$	—	$	383,744
Cash flows from investing activities:
Purchases of property and equipment	(32,574		)	—			(8,601		)	—		(41,175		)
Purchases of non-marketable minority equity investments	(223		)	—			—			—		(223		)
Proceeds from sale of non-marketable equity investment	10,748			—			—			—		10,748
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	(18,718		)	—			(1,687		)	—		(20,405		)
Cash flows from financing activities:
Payment of principal related to capital leases	(2,382		)	—			—			—		(2,382		)
Common stock repurchases	(302,560		)	—			—			—		(302,560		)
Proceeds from issuance of common stock	81,293			—			—			—		81,293
Payment of cash dividends to stockholders	(15,270		)	—			—			—		(15,270		)
Excess tax benefits from stock-based compensation	37,698			—			—			—		37,698
Net cash used in financing activities	(201,221		)	—			—			—		(201,221		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			272			—		272
Net increase (decrease) in cash and cash equivalents	(23,297		)	(1,017		)	186,704			—		162,390
Cash and cash equivalents, beginning of period	396,710			9,301			580,986			—		986,997
Cash and cash equivalents, end of period	$	373,413		$	8,284		$	767,690		$	—	$	1,149,387

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

	Brocade Communications Systems, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments		Total
Net cash provided by operating activities	$	181,335		$	2,846		$	97,079		$	—	$	281,260
Cash flows from investing activities:
Purchases of property and equipment	(35,969		)	(23		)	(5,957		)	—		(41,949		)
Net cash acquired (paid) in connection with acquisition	(44,769		)	140			—			—		(44,629		)
Net cash provided by (used in) investing activities	(80,738		)	117			(5,957		)	—		(86,578		)
Cash flows from financing activities:
Proceeds from senior unsecured notes	296,250			—			—			—		296,250
Payment of debt issuance costs related to senior unsecured notes	(992		)	—			—			—		(992		)
Payment of principal related to senior secured notes	(300,000		)	—			—			—		(300,000		)
Payment of principal related to capital leases	(1,536		)	—			—			—		(1,536		)
Common stock repurchases	(187,360		)	—			—			—		(187,360		)
Proceeds from issuance of common stock	71,858			—			—			—		71,858
Excess tax benefits from stock-based compensation	6,909			—			—			—		6,909
Net cash used in financing activities	(114,871		)	—			—			—		(114,871		)
Effect of exchange rate fluctuations on cash and cash equivalents	—			—			(2,944		)	—		(2,944		)
Net increase (decrease) in cash and cash equivalents	(14,274		)	2,963			88,178			—		76,867
Cash and cash equivalents, beginning of period	284,466			680			428,080			—		713,226
Cash and cash equivalents, end of period	$	270,192		$	3,643		$	516,258		$	—	$	790,093