Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

9. SEGMENT INFORMATION

Infrastructure and SaaS 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 Infrastructure and SaaS segments 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.

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,
	2013			2012			2013			2012
Net revenues:
Infrastructure	$	586,526		$	489,700		$	1,121,859		$	958,462
SaaS	143,858			125,510			281,424			246,243
Consolidated	$	730,384		$	615,210		$	1,403,283		$	1,204,705
Segment profit:
Infrastructure	$	132,591		$	123,776		$	245,847		$	240,949
SaaS	26,014			18,972			48,049			40,108
Unallocated expenses (1):
Amortization of intangible assets	(34,860		)	(22,294		)	(69,987		)	(49,296		)
Net interest and other income	1,375			3,353			2,571			7,153
Stock-based compensation	(47,857		)	(38,262		)	(91,413		)	(68,819		)
Consolidated income before income taxes	$	77,263		$	85,545		$	135,067		$	170,095

(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 Infrastructure and SaaS segments were as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Net revenues:
Infrastructure
Mobile and Desktop revenues(1)	$	382,234	$	345,134	$	740,224	$	685,537
Networking and Cloud Solutions revenues(2)	164,786		112,681		312,279		212,992
Professional services(3)	36,416		29,246		62,928		55,119
Other	3,090		2,639		6,428		4,814
Total Infrastructure revenues	586,526		489,700		1,121,859		958,462
SaaS revenues	143,858		125,510		281,424		246,243
Total net revenues	$	730,384	$	615,210	$	1,403,283	$	1,204,705

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

(2) Networking and Cloud revenues are primarily comprised of sales from the Company’s cloud networking products which include NetScaler, CloudBridge and Bytemobile Smart Capacity, and the Company’s cloud platform products which include XenServer, CloudPlatform and CloudPortal and related license updates and maintenance and support.

(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 following periods (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Net revenues:
Infrastructure
Americas	$	322,911	$	259,769	$	619,345	$	512,252
EMEA	191,015		163,976		365,417		324,047
Asia-Pacific	72,600		65,955		137,097		122,163
Total Infrastructure revenues	586,526		489,700		1,121,859		958,462
SaaS
Americas	120,680		106,784		236,910		210,011
EMEA	18,001		15,578		34,744		30,033
Asia-Pacific	5,177		3,148		9,770		6,199
Total SaaS revenues	143,858		125,510		281,424		246,243
Total net revenues	$	730,384	$	615,210	$	1,403,283	$	1,204,705