Segment Information

9 Months Ended

Jul. 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 July 29, 2017, were attributable to its U.S. operations.

Summarized financial information by reportable segment for the three and nine months ended July 29, 2017, and July 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 July 29, 2017
Net revenues	$	275,872	$	173,677	$	99,717	$	549,266
Cost of revenues	65,498		89,262		43,361		198,121
Gross margin	$	210,374	$	84,415	$	56,356	$	351,145
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
Nine months ended July 29, 2017
Net revenues	$	864,401	$	520,872	$	298,209	$	1,683,482
Cost of revenues	210,445		275,708		136,301		622,454
Gross margin	$	653,956	$	245,164	$	161,908	$	1,061,028
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