Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Information

9. SEGMENT INFORMATION

The Company’s revenues are derived from sales of its Enterprise division products which include its Desktop Solutions, Datacenter and Cloud Solutions and related technical services and from sales of its Online Services division's web collaboration, connectivity, remote support and data sharing products. The Enterprise division and the Online Services division constitute the Company’s two reportable segments.

The Company does not engage in intercompany revenue transfers between segments. The Company’s chief operating decision maker (“CODM”) evaluates the Company’s performance based primarily on profitability from its Enterprise division products and Online Services division products. Segment profit for each segment includes certain research and development, sales, marketing and services and general and administrative expenses directly attributable to the segment as well as other corporate costs allocated to the segment and excludes certain expenses that are managed outside of the reportable segments. Costs excluded from segment profit primarily consist of certain restructuring charges, stock-based compensation costs, amortization of product related intangible assets, amortization of other intangible assets, net interest and other income, net. Accounting policies of the Company’s segments are the same as its consolidated accounting policies. In the first quarter of 2012, the Company transferred the business acquired in its acquisition of ShareFile from its Enterprise division to its Online Services division.

Net revenues and segment profit, classified by the Company’s two reportable segments were as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Net revenues:
Enterprise division	$	489,700		$	424,311		$	958,462		$	815,427
Online Services division	125,510			106,479			246,243			206,251
Consolidated	$	615,210		$	530,790		$	1,204,705		$	1,021,678
Segment profit:
Enterprise division	$	123,776		$	116,619		$	240,949		$	217,068
Online Services division	18,972			16,203			40,108			30,753
Unallocated expenses (1):
Amortization of intangible assets	(22,294		)	(16,479		)	(49,296		)	(32,687		)
Restructuring	—			—			—			(24		)
Net interest and other income	3,353			5,088			7,153			12,660
Stock-based compensation	(38,262		)	(20,753		)	(68,819		)	(38,637		)
Consolidated income before income taxes	$	85,545		$	100,678		$	170,095		$	189,133

(1) Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments.

Revenues by Product Grouping

Revenues by product grouping for the Company’s Enterprise division and Online Services division were as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Net revenues:
Enterprise division
Desktop Solutions revenues(1)	$	343,151	$	304,652	$	681,271	$	593,768
Datacenter and Cloud Solutions revenues(2)	112,149		93,259		211,822		170,926
Professional services(3)	29,246		21,303		55,119		40,780
Other	5,154		5,097		10,250		9,953
Total Enterprise division revenues	489,700		424,311		958,462		815,427
Online Services division revenues	125,510		106,479		246,243		206,251
Total net revenues	$	615,210	$	530,790	$	1,204,705	$	1,021,678

(1) Desktop Solutions revenues are primarily comprised of sales from the Company’s desktop virtualization product, XenDesktop, and the Company’s application virtualization product, XenApp, and related license updates and technical support.

(2) Datacenter and Cloud Solutions revenues are primarily comprised of sales from the Company’s cloud networking products, which include NetScaler, Branch Repeater and Access Gateway, and the Company’s CloudPlatform products which include XenServer, CloudPlatform (formerly CloudStack) and CloudPortal Business Manager (formerly CloudPortal) and related license updates and maintenance.

(3) Professional services revenues are primarily comprised of revenues from consulting services and product training and certification.

Revenues by Geographic Location

The following table presents revenues by segment and geographic location, for the following periods (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Net revenues:
Enterprise division
Americas	$	259,769	$	235,003	$	512,252	$	452,475
EMEA	163,976		135,949		324,047		269,322
Asia-Pacific	65,955		53,359		122,163		93,630
Total Enterprise division revenues	489,700		424,311		958,462		815,427
Online Services division
Americas	106,784		90,660		210,011		178,950
EMEA	15,578		13,434		30,033		22,721
Asia-Pacific	3,148		2,385		6,199		4,580
Total Online Services division revenues	125,510		106,479		246,243		206,251
Total net revenues	$	615,210	$	530,790	$	1,204,705	$	1,021,678