Segment Information

9 Months Ended

Jul. 30, 2016

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. The results of the Ruckus business are included in the IP Networking Products and Global Services reportable segments from the date of acquisition.

At this time, the Company does not track its operating expenses by operating segments because management does not consider 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 July 30, 2016, were attributable to its U.S. operations.

Summarized financial information by reportable segment for the three and nine months ended July 30, 2016, and August 1, 2015, based on the internal management reporting system, is as follows (in thousands):

	SAN Products		IP Networking Products		Global Services		Total
Three months ended July 30, 2016
Net revenues	$	282,114	$	208,881	$	99,726	$	590,721
Cost of revenues	70,630		117,862		45,330		233,822
Gross margin	$	211,484	$	91,019	$	54,396	$	356,899
Three months ended August 1, 2015
Net revenues	$	309,451	$	153,749	$	88,619	$	551,819
Cost of revenues	73,657		70,586		35,672		179,915
Gross margin	$	235,794	$	83,163	$	52,947	$	371,904
Nine months ended July 30, 2016
Net revenues	$	925,799	$	474,556	$	287,956	$	1,688,311
Cost of revenues	223,806		240,991		127,489		592,286
Gross margin	$	701,993	$	233,565	$	160,467	$	1,096,025
Nine months ended August 1, 2015
Net revenues	$	976,362	$	431,319	$	266,952	$	1,674,633
Cost of revenues	233,150		198,631		109,056		540,837
Gross margin	$	743,212	$	232,688	$	157,896	$	1,133,796