Segment Information

6 Months Ended

Apr. 29, 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 April 29, 2017, were attributable to its U.S. operations.

Summarized financial information by reportable segment for the three and six months ended April 29, 2017, and April 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 April 29, 2017
Net revenues	$	281,656	$	173,451	$	97,646	$	552,753
Cost of revenues	69,217		95,521		45,255		209,993
Gross margin	$	212,439	$	77,930	$	52,391	$	342,760
Three months ended April 30, 2016
Net revenues	$	296,627	$	131,566	$	95,113	$	523,306
Cost of revenues	71,972		60,236		40,787		172,995
Gross margin	$	224,655	$	71,330	$	54,326	$	350,311
Six months ended April 29, 2017
Net revenues	$	588,529	$	347,195	$	198,492	$	1,134,216
Cost of revenues	144,947		186,446		92,940		424,333
Gross margin	$	443,582	$	160,749	$	105,552	$	709,883
Six months ended April 30, 2016
Net revenues	$	643,685	$	265,675	$	188,230	$	1,097,590
Cost of revenues	153,176		123,129		82,159		358,464
Gross margin	$	490,509	$	142,546	$	106,071	$	739,126