Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Enterprise and Service Provider division and 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 and SaaS 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 expense, 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
	March 31,
	2014			2013
Net revenues:
Enterprise and Service Provider division	$	593,687		$	535,333
SaaS division	157,132			137,566
Consolidated	$	750,819		$	672,899
Segment profit:
Enterprise and Service Provider division	$	126,576		$	113,256
SaaS division	32,422			22,035
Unallocated expenses (1):
Amortization of intangible assets	(36,760		)	(35,127		)
Restructuring	(9,650		)	—
Net interest and other expense	(3,132		)	1,196
Stock-based compensation	(40,701		)	(43,556		)
Consolidated income before income taxes	$	68,755		$	57,804

(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 and Service Provider division and SaaS division were as follows (in thousands):

	Three Months Ended
	March 31,
	2014		2013
Net revenues:
Enterprise and Service Provider division
Mobile and Desktop revenues(1)	$	381,361	$	357,990
Networking and Cloud revenues(2)	166,545		147,493
Professional services(3)	42,505		26,512
Other	3,276		3,338
Total Enterprise and Service Provider division revenues	593,687		535,333
SaaS division revenues	157,132		137,566
Total net revenues	$	750,819	$	672,899

(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 following periods (in thousands):

	Three Months Ended
	March 31,
	2014		2013
Net revenues:
Enterprise and Service Provider division
Americas	$	323,393	$	296,434
EMEA	200,628		174,402
Asia-Pacific	69,666		64,497
Total Enterprise and Service Provider division revenues	593,687		535,333
SaaS division
Americas	130,672		116,230
EMEA	21,180		16,743
Asia-Pacific	5,280		4,593
Total SaaS division revenues	157,132		137,566
Total net revenues	$	750,819	$	672,899