Segment Information

3 Months Ended

Jan. 31, 2015

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. Financial decisions and the allocation of resources are based on the information from the Company’s internal management reporting system. Currently, the Company’s CODM is its Chief Executive Officer.

Brocade is organized into three operating segments, each of which is an individually reportable segment: SAN Products, IP Networking Products, and Global Services. These reportable segments are organized principally by product category.

At this time, the Company does not track its operating expenses by operating segments because management does not include this information in its measurement of the performance of the operating segments. The Company also does not track all of its assets by operating segments. The majority of the Company’s assets as of January 31, 2015, were attributable to its U.S. operations.

Summarized financial information by reportable segment for the three months ended January 31, 2015, and January 25, 2014, based on the internal management reporting system, is as follows (in thousands):

	SAN Products		IP Networking Products		Global Services		Total
Three months ended January 31, 2015
Net revenues	$	353,399	$	132,839	$	90,001	$	576,239
Cost of revenues	85,725		64,201		36,630		186,556
Gross margin	$	267,674	$	68,638	$	53,371	$	389,683
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