Segment Information

6 Months Ended

Jun. 30, 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 income (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						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Net revenues:
Enterprise and Service Provider division	$	620,781		$	586,526		$	1,214,468		$	1,121,859
SaaS division	160,779			143,858			317,911			281,424
Consolidated	$	781,560		$	730,384		$	1,532,379		$	1,403,283
Segment profit:
Enterprise and Service Provider division	$	136,551		$	132,591		$	263,127		$	245,847
SaaS division	32,509			26,014			64,931			48,049
Unallocated expenses(1):
Amortization of intangible assets	(64,840		)	(34,860		)	(101,600		)	(69,987		)
Restructuring	(4,511		)	—			(14,161		)	—
Net interest and other income (expense), net	(3,391		)	1,375			(6,523		)	2,571
Stock-based compensation	(45,290		)	(47,857		)	(85,991		)	(91,413		)
Consolidated income before income taxes	$	51,028		$	77,263		$	119,783		$	135,067

(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				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Net revenues:
Enterprise and Service Provider division
Mobile and Desktop revenues(1)	$	395,867	$	382,234	$	777,228	$	740,224
Networking and Cloud revenues(2)	179,298		164,786		345,843		312,279
Professional services(3)	41,948		36,416		84,453		62,928
Other	3,668		3,090		6,944		6,428
Total Enterprise and Service Provider division revenues	620,781		586,526		1,214,468		1,121,859
SaaS division revenues	160,779		143,858		317,911		281,424
Total net revenues	$	781,560	$	730,384	$	1,532,379	$	1,403,283

(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				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Net revenues:
Enterprise and Service Provider division
Americas	$	335,593	$	322,911	$	658,986	$	619,345
EMEA	207,069		191,015		407,697		365,417
Asia-Pacific	78,119		72,600		147,785		137,097
Total Enterprise and Service Provider division revenues	620,781		586,526		1,214,468		1,121,859
SaaS division
Americas	132,877		120,680		263,549		236,910
EMEA	22,193		18,001		43,373		34,744
Asia-Pacific	5,709		5,177		10,989		9,770
Total SaaS division revenues	160,779		143,858		317,911		281,424
Total net revenues	$	781,560	$	730,384	$	1,532,379	$	1,403,283