Segment Information

3 Months Ended

Jan. 28, 2017

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 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 January 28, 2017, were attributable to its U.S. operations.

Summarized financial information by reportable segment for the three months ended January 28, 2017, and January 30, 2016, based on the internal management reporting system, is as follows (in thousands):

	SAN Products		IP Networking Products		Global Services		Total
Three months ended January 28, 2017
Net revenues	$	306,873	$	173,744	$	100,846	$	581,463
Cost of revenues	75,730		90,925		47,685		214,340
Gross margin	$	231,143	$	82,819	$	53,161	$	367,123
Three months ended January 30, 2016
Net revenues	$	347,058	$	134,109	$	93,117	$	574,284
Cost of revenues	81,204		62,893		41,372		185,469
Gross margin	$	265,854	$	71,216	$	51,745	$	388,815