Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Financial Information by Reportable Segment

Financial information for each reportable geographical segment as of September30, 2013 and December31, 2012 and for the three and nine months ended September30, 2013 and 2012, based on the Company’s internal management reporting system and as utilized by the Company’s Interim Chief Executive Officer who is its Chief Operating Decision Maker (“CODM”), is as follows (in thousands):

	Americas				EMEA				APAC				Total
For the three months ended September30, 2013:
Revenue	$	177,285		$		80,015		$		79,161		$		336,461
% of total revenue		53	%			24	%			23	%			100	%
Contribution margin		69,899				34,094				30,281				134,274
% of segment revenue		39	%			43	%			38	%			40	%
For the three months ended September30, 2012:
Revenue	$	170,965		$		78,569		$		85,858		$		335,392
% of total revenue		51	%			23	%			26	%			100	%
Contribution margin		67,438				28,581				34,732				130,751
% of segment revenue		39	%			36	%			40	%			39	%
For the nine months ended September30, 2013:
Revenue	$	523,895		$		248,834		$		247,718		$		1,020,447
% of total revenue		52	%			24	%			24	%			100	%
Contribution margin		207,876				103,703				98,364				409,943
% of segment revenue		40	%			42	%			40	%			40	%
For the nine months ended September30, 2012:
Revenue	$	513,869		$		252,289		$		273,444		$		1,039,602
% of total revenue		50	%			24	%			26	%			100	%
Contribution margin		212,788				98,935				116,637				428,360
% of segment revenue		41	%			39	%			43	%			41	%
As of September30, 2013: Gross accounts receivable	$	97,314		$		61,540		$		58,734		$		217,588
% of total gross accounts receivable		45	%			28	%			27	%			100	%
As of December31, 2012: Gross accounts receivable		100,494				67,529				71,128				239,151
% of total gross accounts receivable		42	%			28	%			30	%			100	%

Reconciliation of Segment Information to Consolidated Totals

The reconciliation of segment information to Polycom consolidated totals is as follows (in thousands):

	Three Months Ended							Nine Months Ended
	September30, 2013			September30, 2012				September30, 2013				September30, 2012
Segment contribution margin	$	134,274		$	130,751		$		409,943		$		428,360
Corporate and unallocated costs		(110,640	)		(106,718	)			(323,645	)			(314,247	)
Stock-based compensation		(17,202	)		(24,823	)			(53,300	)			(65,071	)
Effect of stock-based compensation cost on warranty expense		(120	)		(169	)			(421	)			(541	)
Acquisition-related costs		(39	)		(6,334	)			(3,411	)			(11,793	)
Amortization of purchased intangibles		(3,735	)		(4,421	)			(11,279	)			(13,044	)
Restructuring costs		(24,887	)		(6,171	)			(34,639	)			(21,829	)
Interest and other income (expense), net		(1,634	)		(230	)			(2,777	)			(3,010	)
Loss from continuing operations before provision for (benefit from) income taxes	$	(23,983	)	$	(18,115	)	$		(19,529	)	$		(1,175	)

Trade Receivables, Net

	September30, 2013			December31, 2012
Gross accounts receivables	$	217,588		$	239,151
Returns and related reserves		(39,643	)		(41,576	)
Allowance for doubtful accounts		(2,722	)		(2,921	)
Total trade receivables, net	$	175,223		$	194,654

Revenues by Groups of Similar Products and Services

The following table summarizes the Company’s revenues by groups of similar products and services as follows (in thousands):

	Three Months Ended					Nine Months Ended
	September30, 2013		September30, 2012			September30, 2013			September30, 2012
Net Revenues:
UC group systems	$	221,370	$	225,780	$		686,795	$		717,982
UC personal devices		56,920		45,731			157,014			134,095
UC platform		58,171		63,881			176,638			187,525
Total	$	336,461	$	335,392	$		1,020,447	$		1,039,602