Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s revenues are derived from its Enterprise division products, which primarily include its Mobile and Desktop products, Networking and Cloud products and related license updates and maintenance and professional services and from its Online Services division’s Collaboration and Data 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, 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.

International revenues (sales outside of the United States) accounted for approximately 45.3%, 43.2% and 42.7% of the Company’s net revenues for the year ended December 31, 2012, 2011, and 2010, respectively. Net revenues and segment profit for 2012, 2011 and 2010 classified by the Company’s reportable segments, are presented below:

	2012			2011			2010
	(In thousands)
Net revenues:
Enterprise division	$	2,074,800		$	1,778,646		$	1,514,045
Online Services division	511,323			427,746			360,617
Consolidated	$	2,586,123		$	2,206,392		$	1,874,662
Segment profit:
Enterprise division	$	562,794		$	504,883		$	403,722
Online Services division	92,498			76,147			86,506
Unallocated expenses (1):
Amortization of intangible assets	(114,574		)	(71,131		)	(64,783		)
Restructuring	—			(24		)	(971		)
Net interest and other income	19,451			13,531			13,104
Stock-based compensation	(149,940		)	(92,909		)	(103,758		)
Consolidated income before income taxes	$	410,229		$	430,497		$	333,820

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

Identifiable assets classified by the Company’s reportable segments are shown below. Long-lived assets consist of property and equipment, net, and are shown below.

	December 31,
	2012		2011
	(In thousands)
Identifiable assets:
Enterprise division	$	4,246,292	$	3,619,989
Online Services division	550,110		479,552
Total identifiable assets	$	4,796,402	$	4,099,541

	December 31,
	2012		2011
	(In thousands)
Long-lived assets, net:
United States	$	231,812	$	223,076
United Kingdom	30,633		28,344
Other countries	40,849		26,009
Total long-lived assets, net	$	303,294	$	277,429

The increases in identifiable assets are primarily due to goodwill and intangible assets recorded in conjunction with the Company's 2012 Acquisitions. See Note 3 for additional information regarding the Company’s acquisitions.

In fiscal years 2012, 2011 and 2010, one distributor, Ingram Micro, accounted for 16%, 17% and 17%, respectively, of the Company’s total net revenues. The Company’s distributor arrangements with Ingram Micro consist of several non-exclusive, independently negotiated agreements with its subsidiaries, each of which cover different countries or regions. Each of these agreements is separately negotiated and is independent of any other contract (such as a master distribution agreement), one of which was individually responsible for over 10% of the Company’s total net revenues in each of the last three fiscal years. In fiscal years 2012, 2011 and 2010, there were no resellers that accounted for over 10% of the Company’s total net revenues. Total net revenues associated with Ingram Micro are included in the Company's Enterprise division.

Revenues by product grouping for the Company’s Enterprise division and Online Services division were as follows for the years ended:

	December 31,
	2012		2011		2010
	(In thousands)
Net revenues:
Enterprise division
Mobile and Desktop revenues(1)	$	1,440,293	$	1,278,798	$	1,137,326
Networking and Cloud revenues(2)	494,225		385,518		298,649
Professional services(3)	119,061		91,496		59,371
Other	21,221		22,834		18,699
Total Enterprise division revenues	2,074,800		1,778,646		1,514,045
Online Services division revenues	511,323		427,746		360,617
Total net revenues	$	2,586,123	$	2,206,392	$	1,874,662

⁽¹⁾  Mobile and Desktop revenues (formerly Desktop Solutions) are primarily comprised of sales from the Company’s desktop virtualization products, XenDesktop and XenApp, and related license updates and maintenance and support.

⁽²⁾  Networking and Cloud revenues (formerly Datacenter and Cloud Solutions) are primarily comprised of sales from the Company’s cloud networking products which include NetScaler, Cloud Bridge (includes product formerly known as Branch Repeater) and Bytemobile Smart Capacity, and the Company’s cloud platform products which include XenServer, CloudPlatform (formerly CloudStack) and CloudPortal and related license updates and maintenance.

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

Revenues by Geographic Location

The following table presents revenues by segment and geographic location, for the years ended:

	December 31,
	2012		2011		2010
	(In thousands)
Net revenues:
Enterprise division
Americas	$	1,106,801	$	993,062	$	837,689
EMEA	691,111		576,953		519,828
Asia-Pacific	276,888		208,631		156,528
Total Enterprise division revenues	2,074,800		1,778,646		1,514,045
Online Services division
Americas	433,263		367,260		330,493
EMEA	63,484		50,711		23,258
Asia-Pacific	14,576		9,775		6,866
Total Online Services division revenues	511,323		427,746		360,617
Total net revenues	$	2,586,123	$	2,206,392	$	1,874,662

Export revenue represents shipments of finished goods and services from the United States to international customers, primarily in Latin America and Canada. Shipments from the United States to international customers for 2012, 2011 and 2010 were $127.4 million, $106.0 million and $95.0 million, respectively.