Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Enterprise and Service Provider the Mobility Apps business units 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 Mobility Apps 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, separation costs, stock-based compensation costs, charges or benefits related to significant litigation that are not anticipated to be ongoing costs, amortization and impairment of product related intangible assets, amortization and impairment 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.

As part of its continued transformation, effective January 1, 2016, the Company reorganized a part of its business by creating a new Cloud Services business unit that will include the ShareFile product line. The ShareFile product line is currently included within the Company's Workflow Cloud products under the Mobility Apps segment. The Company is currently evaluating its segment reporting and goodwill reporting units for 2016 as a result of these changes.

International revenues (sales outside of the United States) accounted for approximately 43.1%, 45.2% and 45.4% of the Company’s net revenues for the year ended December 31, 2015, 2014, and 2013, respectively.

Net revenues and segment profit for 2015, 2014 and 2013 classified by the Company’s reportable segments, are presented below:

	2015			2014			2013
	(In thousands)
Net revenues:
Enterprise and Service Provider	$	2,544,302		$	2,491,294		$	2,335,562
Mobility Apps	731,292			651,562			582,872
Consolidated	$	3,275,594		$	3,142,856		$	2,918,434
Segment profit (1):
Enterprise and Services Provider	$	759,614		$	589,076		$	588,138
Mobility Apps	83,535			115,998			116,061
Unallocated expenses (2):
Amortization and impairment of intangible assets	(239,915		)	(192,325		)	(139,541		)
Patent litigation charge	—			(20,727		)	—
Other	982			—			—
Restructuring	(100,411		)	(20,424		)	—
Net interest and other (expense) income, net	(38,208		)	(26,605		)	7,173
Stock-based compensation	(147,368		)	(169,287		)	(183,941		)
Separation costs	(6,352		)	—			—
Consolidated income before income taxes	$	311,877		$	275,706		$	387,890

⁽¹⁾  Effective January 1, 2015, the Company revised its methodology for allocating certain corporate costs within General and administrative expenses to more closely align these costs to the employees directly utilizing the related services within each of its reporting segments in connection with organizational structure changes that changed the manner in which shared support services are provided. This change in presentation does not affect the Company's consolidated financial position, results from operations or cash flows.

⁽²⁾  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,
	2015		2014
	(In thousands)
Identifiable assets:
Enterprise and Service Provider	$	4,578,436	$	4,879,513
Mobility Apps	903,002		632,494
Total identifiable assets	$	5,481,438	$	5,512,007

	December 31,
	2015		2014
	(In thousands)
Property and equipment, net:
United States	$	294,982	$	284,463
United Kingdom	28,851		29,556
Other countries	49,984		53,760
Total property and equipment, net	$	373,817	$	367,779

The decreases in identifiable assets are primarily due to decreases in the Company's available for sale investments. See Note 4 for additional information regarding the Company’s investments.

In fiscal years 2014 and 2013, one distributor, Ingram Micro, accounted for 13% and 14%, 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 covers 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 fiscal years 2014 and 2013. Total net revenues associated with Ingram Micro are included in the Company's Enterprise and Service Provider business unit.

Revenues by product grouping for the Company’s Enterprise and Service Provider and Mobility Apps business units were as follows for the years ended:

	December 31,
	2015		2014		2013
	(In thousands)
Net revenues:
Enterprise and Service Provider
Workspace Services revenues(1)	$	1,645,331	$	1,606,903	$	1,549,383
Delivery Networking revenues(2)	741,121		695,734		634,598
Professional services(3)	147,488		175,541		138,879
Other	10,362		13,116		12,702
Total Enterprise and Service Provider revenues	2,544,302		2,491,294		2,335,562
Mobility Apps revenues	731,292		651,562		582,872
Total net revenues	$	3,275,594	$	3,142,856	$	2,918,434

(1) Workspace Services revenues are primarily comprised of sales from the Company’s windows app delivery products, which includes XenDesktop and XenApp, and the Company's mobile app delivery products, which include XenMobile and related license updates and maintenance and support.

(2) Delivery Networking revenues primarily include NetScaler, ByteMobile Smart Capacity and CloudBridge products 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,
	2015		2014		2013
	(In thousands)
Net revenues:
Enterprise and Service Provider
Americas	$	1,394,985	$	1,328,851	$	1,263,673
EMEA	866,775		859,404		785,862
Asia-Pacific	282,542		303,039		286,027
Total Enterprise and Service Provider revenues	2,544,302		2,491,294		2,335,562
Mobility Apps
Americas	616,900		541,145		488,307
EMEA	91,324		87,705		73,529
Asia-Pacific	23,068		22,712		21,036
Total Mobility Apps revenues	731,292		651,562		582,872
Total net revenues	$	3,275,594	$	3,142,856	$	2,918,434

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 2015, 2014 and 2013 were $180.2 million, $193.8 million and $215.3 million, respectively.