Segment Information

9 Months Ended

Sep. 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 professional 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 (expense), 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						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Net revenues:
Enterprise division	$	511,763		$	455,790		$	1,470,225		$	1,271,217
Online Services division	129,659			109,558			375,902			315,809
Consolidated	$	641,422		$	565,348		$	1,846,127		$	1,587,026
Segment profit:
Enterprise division	$	130,566		$	124,835		$	371,515		$	341,903
Online Services division	24,720			23,907			64,828			54,660
Unallocated expenses (1):
Amortization of intangible assets	(32,768		)	(19,109		)	(82,064		)	(51,796		)
Restructuring	—			—			—			(24		)
Net interest and other income (expense)	8,483			(1,861		)	15,636			10,799
Stock-based compensation	(40,103		)	(24,954		)	(108,922		)	(63,591		)
Consolidated income before income taxes	$	90,898		$	102,818		$	260,993		$	291,951

(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				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Net revenues:
Enterprise division
Desktop Solutions revenues(1)	$	348,624	$	315,983	$	1,029,895	$	909,751
Datacenter and Cloud Solutions revenues(2)	127,474		111,155		339,296		282,081
Professional services(3)	31,022		23,210		86,141		63,991
Other	4,643		5,442		14,893		15,394
Total Enterprise division revenues	511,763		455,790		1,470,225		1,271,217
Online Services division revenues	129,659		109,558		375,902		315,809
Total net revenues	$	641,422	$	565,348	$	1,846,127	$	1,587,026

(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, Access Gateway and Bytemobile, and the Company’s cloud solutions products which include 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				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Net revenues:
Enterprise division
Americas	$	281,896	$	262,629	$	794,148	$	715,104
EMEA	164,149		136,794		488,196		406,116
Asia-Pacific	65,718		56,367		187,881		149,997
Total Enterprise division revenues	511,763		455,790		1,470,225		1,271,217
Online Services division
Americas	109,935		92,975		319,946		271,925
EMEA	15,941		14,074		45,974		36,795
Asia-Pacific	3,783		2,509		9,982		7,089
Total Online Services division revenues	129,659		109,558		375,902		315,809
Total net revenues	$	641,422	$	565,348	$	1,846,127	$	1,587,026