BASIS OF PRESENTATION

6 Months Ended

May 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by TIBCO Software Inc. (“TIBCO,” the “Company,” “we” or “us”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in Consolidated Financial Statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted in accordance with such rules and regulations. The condensed consolidated balance sheet data as of November 30, 2013 was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of our financial position and our results of operations and cash flows. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our 2013 Annual Report on Form 10-K for the fiscal year ended November 30, 2013.

Our fiscal year ends on November 30 of each year. For purposes of presentation, we have indicated the second quarter of fiscal years 2014 and 2013 as ended on May 31, 2014 and May 31, 2013, respectively; whereas in fact, the second quarter of fiscal years 2014 and 2013 actually ended on June 1, 2014 and June 2, 2013, respectively. There were 91 days in the second quarter of each of fiscal years 2014 and 2013.

The Condensed Consolidated Financial Statements include the accounts of us and our wholly-owned and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. For majority-owned subsidiaries, we reflect the noncontrolling interest of the portion we do not own on our Condensed Consolidated Balance Sheets in Equity and our Condensed Consolidated Statements of Operations.

The results of operations for the three and six months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending November 30, 2014, or any other future period, and we make no representations related thereto.

Reclassifications

During the second quarter of 2014, we adopted a revised presentation, which we believe better reflects our evolving product and service offerings and related consumption models. A change was made to combine subscription revenue and license revenue as software revenue. Subscription revenue consists of revenue (i) from subscription-based licenses and related support for a variety of on-premise and hosted offerings, which we previously presented under services revenue, and (ii) from certain term licenses, which we previously presented under license revenue. Subscription revenue is recognized ratably over the subscription or license term.

A corresponding change was made to combine cost of license revenue and cost of subscription revenue as cost of software revenue. Cost of subscription revenue was previously part of cost of service revenue. This change in presentation does not affect total revenue, total cost of revenue or gross margin. Conforming changes have been made for all prior periods.

For the first quarter of fiscal year 2014, subscription revenue of $3.5 million and cost of subscription revenue of $2.2 million were reclassified from service revenue and cost of service revenue to software revenue and cost of software revenue, respectively.

For the three and six months ended May 31, 2013, subscription revenue of $3.4 million and $6.7 million, and cost of subscription revenue of $1.7 million and $3.1 million were reclassified from service revenue and cost of service revenue to software revenue and cost of software revenue, respectively.