Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Enterprise and Service Provider division and the SaaS 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 and Service Provider division products and SaaS 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 (expense) income, net. Accounting policies of the Company’s segments are the same as its consolidated accounting policies.

International revenues (sales outside of the United States) accounted for approximately 45.4%, 45.3% and 43.2% of the Company’s net revenues for the year ended December 31, 2013, 2012, and 2011, respectively. Net revenues and segment profit for 2013, 2012 and 2011 classified by the Company’s reportable segments, are presented below:

	2013			2012			2011
	(In thousands)
Net revenues:
Enterprise and Service Provider division	$	2,335,562		$	2,074,800		$	1,778,646
SaaS division	582,872			511,323			427,746
Consolidated	$	2,918,434		$	2,586,123		$	2,206,392
Segment profit:
Enterprise and Services Provider division	$	588,138		$	562,794		$	504,883
SaaS division	116,061			92,498			76,147
Unallocated expenses (1):
Amortization of intangible assets	(139,541		)	(114,574		)	(71,131		)
Restructuring	—			—			(24		)
Net interest and other income	7,173			19,451			13,531
Stock-based compensation	(183,941		)	(149,940		)	(92,909		)
Consolidated income before income taxes	$	387,890		$	410,229		$	430,497

⁽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,
	2013		2012
	(In thousands)
Identifiable assets:
Enterprise and Service Provider division	$	4,662,724	$	4,246,292
SaaS division	549,525		550,110
Total identifiable assets	$	5,212,249	$	4,796,402

	December 31,
	2013		2012
	(In thousands)
Long-lived assets, net:
United States	$	258,114	$	231,812
United Kingdom	29,382		30,633
Other countries	51,500		40,849
Total long-lived assets, net	$	338,996	$	303,294

The increases in identifiable assets are primarily due to goodwill and intangible assets recorded in conjunction with the Company's 2013 Acquisitions. See Note 3 for additional information regarding the Company’s acquisitions.

In fiscal years 2013, 2012 and 2011, one distributor, Ingram Micro, accounted for 14%, 16% 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 2013, 2012 and 2011, 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 and Service Provider division.

Revenues by product grouping for the Company’s Enterprise and Service Provider division and SaaS division were as follows for the years ended:

	December 31,
	2013		2012		2011
	(In thousands)
Net revenues:
Enterprise and Service Provider division
Mobile and Desktop revenues(1)	$	1,549,383	$	1,450,850	$	1,278,798
Networking and Cloud revenues(2)	634,598		496,608		385,518
Professional services(3)	138,879		119,061		91,496
Other	12,702		8,281		22,834
Total Enterprise and Service Provider division revenues	2,335,562		2,074,800		1,778,646
SaaS division revenues	582,872		511,323		427,746
Total net revenues	$	2,918,434	$	2,586,123	$	2,206,392

(1) Mobile and Desktop revenues are primarily comprised of sales from the Company’s desktop and application 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 years ended:

	December 31,
	2013		2012		2011
	(In thousands)
Net revenues:
Enterprise and Service Provider division
Americas	$	1,263,673	$	1,106,801	$	993,062
EMEA	785,862		691,111		576,953
Asia-Pacific	286,027		276,888		208,631
Total Enterprise and Service Provider division revenues	2,335,562		2,074,800		1,778,646
SaaS division
Americas	488,307		433,263		367,260
EMEA	73,529		63,484		50,711
Asia-Pacific	21,036		14,576		9,775
Total SaaS division revenues	582,872		511,323		427,746
Total net revenues	$	2,918,434	$	2,586,123	$	2,206,392

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 2013, 2012 and 2011 were $215.3 million, $127.4 million and $106.0 million, respectively.