Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Oct. 26, 2013 | Dec. 09, 2013 | Apr. 27, 2013 | |
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'BROCADE COMMUNICATIONS SYSTEMS INC | ' | ' |
Entity Central Index Key | '0001009626 | ' | ' |
Current Fiscal Year End Date | '--10-26 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 26-Oct-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 443,956,034 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $2,627,640,721 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Net revenues | ' | ' | ' |
Product | $1,870,567 | $1,890,856 | $1,789,814 |
Service | 352,297 | 346,914 | 357,628 |
Total net revenues | 2,222,864 | 2,237,770 | 2,147,442 |
Cost of revenues | ' | ' | ' |
Product | 658,362 | 689,856 | 677,196 |
Service | 155,623 | 164,895 | 186,712 |
Total cost of revenues | 813,985 | 854,751 | 863,908 |
Gross margin | 1,408,879 | 1,383,019 | 1,283,534 |
Operating expenses: | ' | ' | ' |
Research and development | 378,521 | 363,090 | 354,401 |
Sales and marketing | 567,637 | 608,502 | 608,513 |
General and administrative | 74,518 | 74,583 | 69,506 |
Amortization of intangible assets | 54,256 | 59,204 | 60,713 |
Restructuring and other costs (recoveries) | 25,464 | -89 | 125 |
Loss on sale of subsidiary | 0 | 0 | 12,756 |
Total operating expenses | 1,100,396 | 1,105,290 | 1,106,014 |
Income from operations | 308,483 | 277,729 | 177,520 |
Interest income | 1,404 | 659 | 597 |
Other income (loss), net (Note 14) | 75,835 | -1,499 | -851 |
Interest expense | -55,261 | -52,488 | -97,838 |
Income before income tax | 330,461 | 224,401 | 79,428 |
Income tax expense | 121,838 | 29,220 | 28,818 |
Net income | $208,623 | $195,181 | $50,610 |
Net income per-share—basic | $0.46 | $0.43 | $0.11 |
Net income per-share—diluted | $0.45 | $0.41 | $0.10 |
Shares used in per-share calculation—basic | 450,516 | 456,629 | 474,259 |
Shares used in per-share calculation—diluted | 463,705 | 472,343 | 497,030 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $208,623 | $195,181 | $50,610 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Change in unrealized gains and losses | -1,748 | -3,468 | -1,831 |
Net gains and losses reclassified into earnings | -376 | 7,433 | -6,444 |
Net unrealized gains (losses) on cash flow hedges | -2,124 | 3,965 | -8,275 |
Foreign currency translation adjustments | -1,456 | -1,833 | -894 |
Total other comprehensive income (loss) | -3,580 | 2,132 | -9,169 |
Total comprehensive income | $205,043 | $197,313 | $41,441 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $986,997 | $713,226 |
Accounts receivable, net of allowances for doubtful accounts of $575 and $833 at October 26, 2013, and October 27, 2012, respectively | 249,598 | 233,139 |
Inventories | 45,344 | 68,179 |
Deferred tax assets | 98,018 | 91,539 |
Prepaid expenses and other current assets | 42,846 | 49,496 |
Total current assets | 1,422,803 | 1,155,579 |
Property and equipment, net | 472,940 | 518,940 |
Goodwill | 1,645,437 | 1,624,089 |
Intangible assets, net | 40,258 | 109,265 |
Non-current deferred tax assets | 1,585 | 136,175 |
Other assets | 38,368 | 37,213 |
Total assets | 3,621,391 | 3,581,261 |
Current liabilities: | ' | ' |
Accounts payable | 88,218 | 117,350 |
Accrued employee compensation | 145,996 | 182,597 |
Deferred revenue | 226,696 | 216,283 |
Current restructuring liabilities | 16,418 | 976 |
Current portion of long-term debt | 2,996 | 1,977 |
Other accrued liabilities | 80,339 | 91,285 |
Total current liabilities | 560,663 | 610,468 |
Long-term debt, net of current portion | 596,208 | 599,203 |
Non-current restructuring liabilities | 1,008 | 1,606 |
Non-current deferred revenue | 76,426 | 76,907 |
Non-current income tax liability | 38,680 | 55,387 |
Other non-current liabilities | 1,593 | 1,870 |
Total liabilities | 1,274,578 | 1,345,441 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 800,000 shares authorized: | ' | ' |
Issued and outstanding: 445,285 and 456,913 shares at October 26, 2013, and October 27, 2012, respectively | 445 | 457 |
Additional paid-in capital | 1,915,152 | 2,009,190 |
Accumulated other comprehensive loss | -13,444 | -9,864 |
Retained earnings | 444,660 | 236,037 |
Total stockholders’ equity | 2,346,813 | 2,235,820 |
Total liabilities and stockholders’ equity | $3,621,391 | $3,581,261 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $575 | $833 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 800,000 | 800,000 |
Common stock, shares issued | 445,285 | 456,913 |
Common stock, shares outstanding | 445,285 | 456,913 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $208,623 | $195,181 | $50,610 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Excess tax benefits from stock-based compensation | -3,189 | -5,141 | -312 |
Non-cash tax charges | 78,206 | 0 | 0 |
Depreciation and amortization | 184,114 | 192,218 | 206,352 |
Loss on disposal of property and equipment | 6,709 | 883 | 2,325 |
Loss on sale of subsidiary | 0 | 0 | 12,756 |
Amortization of debt issuance costs and original issue discount | 1,214 | 7,788 | 13,183 |
Write-off of original issue discount and debt issuance costs related to lenders that did not participate in refinancing | 5,360 | 0 | 25,465 |
Net gains on investments | 0 | -179 | -340 |
Provision for doubtful accounts receivable and sales allowances | 9,221 | 11,301 | 9,343 |
Non-cash compensation expense | 73,618 | 77,169 | 83,076 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -25,509 | 4,701 | 53,561 |
Inventories | 24,173 | 4,656 | 1,327 |
Prepaid expenses and other assets | -66,001 | 3,987 | -1,688 |
Deferred tax assets | 4,825 | 1,256 | -2,158 |
Accounts payable | -28,862 | 7,720 | -38,917 |
Accrued employee compensation | -57,859 | 47,679 | 216 |
Deferred revenue | 8,599 | 22,744 | 19,579 |
Other accrued liabilities | 12,944 | 20,277 | 20,878 |
Restructuring liabilities | 14,843 | -1,370 | -6,024 |
Net cash provided by operating activities | 451,029 | 590,870 | 449,232 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of short-term investments | 0 | 0 | -38 |
Proceeds from maturities and sale of short-term investments | 0 | 952 | 1,604 |
Purchases of property and equipment | -52,371 | -72,797 | -96,797 |
Net cash paid in connection with acquisition | -44,629 | 0 | 0 |
Proceeds from collection of convertible note receivable | 70,000 | 0 | 0 |
Proceeds from sale of subsidiary | 0 | 35 | 3,905 |
Net cash used in investing activities | -27,000 | -71,810 | -91,326 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from senior unsecured notes | 296,250 | 0 | 0 |
Proceeds from term loan | 0 | 0 | 198,950 |
Payment of principal related to senior secured notes | -300,000 | 0 | 0 |
Payment of principal related to the term loan | 0 | -190,000 | -359,898 |
Payment of debt issuance costs related to senior unsecured notes | -992 | 0 | 0 |
Payment of fees related to the term loan | 0 | 0 | -1,167 |
Payment of principal related to capital leases | -1,627 | -1,866 | -1,761 |
Common stock repurchases | -240,000 | -130,209 | -210,698 |
Proceeds from issuance of common stock | 93,771 | 98,791 | 97,152 |
Excess tax benefits from stock-based compensation | 3,189 | 5,141 | 312 |
Net cash used in financing activities | -149,409 | -218,143 | -277,110 |
Effect of exchange rate fluctuations on cash and cash equivalents | ' | ' | ' |
Effect of exchange rate fluctuations on cash and cash equivalents | -849 | -1,893 | -578 |
Net increase in cash and cash equivalents | 273,771 | 299,024 | 80,218 |
Cash and cash equivalents, beginning of year | 713,226 | 414,202 | 333,984 |
Cash and cash equivalents, end of year | 986,997 | 713,226 | 414,202 |
Cash paid for interest | ' | ' | ' |
Cash paid for interest | 39,842 | 44,686 | 56,576 |
Cash paid for income taxes | ' | ' | ' |
Cash paid for income taxes | 14,493 | 4,999 | 1,148 |
Supplemental schedule of non-cash investing activities: | ' | ' | ' |
Note assumed on sale of subsidiary | 0 | 0 | 1,218 |
Acquisition of property and equipment through capital leases | $1,312 | $0 | $0 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity |
In Thousands, unless otherwise specified | ||||||
Balance, Value at Oct. 30, 2010 | ' | $461 | $2,047,525 | ($2,827) | ($9,754) | $2,035,405 |
Balance, Shares at Oct. 30, 2010 | ' | 461,291 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock, Value | ' | 35 | 70,119 | ' | ' | 70,154 |
Issuance of common stock, Shares | ' | 34,735 | ' | ' | ' | ' |
Common stock repurchases, Value | ' | -48 | -210,650 | ' | ' | -210,698 |
Common stock repurchases, Shares | ' | -48,004 | ' | ' | ' | ' |
Tax detriment from employee stock plans | -5,200 | ' | -5,240 | ' | ' | -5,240 |
Stock-based compensation | ' | ' | 83,076 | ' | ' | 83,076 |
Change in net unrealized gains on cash flow hedges | -8,275 | ' | ' | -8,275 | ' | -8,275 |
Change in cumulative translation adjustments | -894 | ' | ' | -894 | ' | -894 |
Net income | 50,610 | ' | ' | ' | 50,610 | 50,610 |
Balance, Value at Oct. 29, 2011 | ' | 448 | 1,984,830 | -11,996 | 40,856 | 2,014,138 |
Balance, Shares at Oct. 29, 2011 | ' | 448,022 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock, Value | ' | 33 | 82,138 | ' | ' | 82,171 |
Issuance of common stock, Shares | ' | 33,198 | ' | ' | ' | ' |
Common stock repurchases, Value | ' | -24 | -130,185 | ' | ' | -130,209 |
Common stock repurchases, Shares | ' | -24,307 | ' | ' | ' | ' |
Tax detriment from employee stock plans | -4,800 | ' | -4,762 | ' | ' | -4,762 |
Stock-based compensation | ' | ' | 77,169 | ' | ' | 77,169 |
Change in net unrealized gains on cash flow hedges | 3,965 | ' | ' | 3,965 | ' | 3,965 |
Change in cumulative translation adjustments | -1,833 | ' | ' | -1,833 | ' | -1,833 |
Net income | 195,181 | ' | ' | ' | 195,181 | 195,181 |
Balance, Value at Oct. 27, 2012 | ' | 457 | 2,009,190 | -9,864 | 236,037 | 2,235,820 |
Balance, Shares at Oct. 27, 2012 | ' | 456,913 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock, Value | ' | 29 | 73,778 | ' | ' | 73,807 |
Issuance of common stock, Shares | ' | 29,556 | ' | ' | ' | ' |
Common stock repurchases, Value | ' | -41 | -239,959 | ' | ' | -240,000 |
Common stock repurchases, Shares | ' | -41,184 | ' | ' | ' | ' |
Tax detriment from employee stock plans | -1,500 | ' | -1,475 | ' | ' | -1,475 |
Stock-based compensation | ' | ' | 73,618 | ' | ' | 73,618 |
Change in net unrealized gains on cash flow hedges | -2,124 | ' | ' | -2,124 | ' | -2,124 |
Change in cumulative translation adjustments | -1,456 | ' | ' | -1,456 | ' | -1,456 |
Net income | 208,623 | ' | ' | ' | 208,623 | 208,623 |
Balance, Value at Oct. 26, 2013 | ' | $445 | $1,915,152 | ($13,444) | $444,660 | $2,346,813 |
Balance, Shares at Oct. 26, 2013 | ' | 445,285 | ' | ' | ' | ' |
Basis_Of_Presentation
Basis Of Presentation | 12 Months Ended |
Oct. 26, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis Of Presentation | ' |
Basis of Presentation | |
Brocade Communications Systems, Inc. (“Brocade” or the “Company”) is a leading supplier of networking equipment, including Internet Protocol (“IP”) based networking solutions and Storage Area Networking (“SAN”) solutions for businesses and organizations of many types and sizes, including global enterprises, and service providers such as telecommunication firms, cable operators and mobile carriers. Brocade’s products, services and solutions simplify information technology (“IT”) infrastructure, increase resource utilization, ensure availability of mission critical applications, and support key IT services including Internet connectivity, enterprise mobility, virtualization, and cloud computing. | |
The fiscal year for the Company is the 52 or 53 weeks ending on the last Saturday in October. As is customary for companies that use the 52/53-week convention, every fifth year contains a 53-week year. Fiscal years 2013, 2012 and 2011 were 52-week fiscal years. The Company’s next 53-week fiscal year will be fiscal year 2014 and its next 14-week quarter will be in the second quarter of fiscal year 2014. | |
The Consolidated Financial Statements include the accounts of Brocade and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Use of Estimates in Preparation of Consolidated Financial Statements | |
The preparation of consolidated financial statements and related disclosures in conformity with U.S. generally accepted accounting principles requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, sales allowances and programs, allowance for doubtful accounts, stock-based compensation, purchase price allocations, warranty obligations, inventory valuation and purchase commitments, restructuring costs, commissions, facilities lease losses, impairment of goodwill and intangible assets, litigation, income taxes, and investments. Actual results may differ materially from these estimates. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | |
Oct. 26, 2013 | ||
Accounting Policies [Abstract] | ' | |
Summary Of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
Cash and Cash Equivalents | ||
The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. | ||
Investments and Equity Securities | ||
Investment securities with an original maturity of more than three months that mature less than one year from the Consolidated Balance Sheet date are considered short-term investments. Investment securities with an original or remaining maturity of one year or more and which the Company has the ability and intent to hold are considered long-term investments. Investments are classified as available-for-sale and are recorded on the accompanying Consolidated Balance Sheets at fair value. | ||
Unrealized holding gains and losses related to the Company’s investments are included as a separate component of accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets, net of any related tax effect. Realized gains and losses are calculated based on the specific identification method and are included in “Other expense, net” on the Consolidated Statements of Income. | ||
The Company recognizes an impairment charge when the fair values of its investments have fallen below their cost basis and the decline in fair value is assessed to be other-than-temporary. An other-than-temporary impairment is triggered when there is an intent to sell the security, and it is more likely than not that the security will be required to be sold before recovery, or the Company is not expected to recover the entire amortized cost basis of the security. The Company also considers various factors in determining whether to recognize an impairment charge, including the length of time and extent to which the fair value has been less than the cost basis and the financial condition and near-term prospects of the issuer. For impairments involving credit losses, the Company recognizes the credit loss component in earnings and the remainder of the impairment is recorded in accumulated other comprehensive loss. | ||
From time to time the Company makes equity investments in non-publicly traded companies. These investments are included in “Other assets” on the accompanying Consolidated Balance Sheets and are generally accounted for under the cost method as the Company does not have the ability to exercise significant influence over the respective issuer’s operating and financial policies, nor does it have a liquidation preference that is substantive. The Company monitors its investments in non-publicly traded companies for impairment on a quarterly basis and makes appropriate reductions in carrying values when such impairments are determined to be other-than-temporary. Impairment charges are included in “Other expense, net” on the Consolidated Statements of Income. Factors considered in determining an impairment include, but are not limited to, the current business environment including competition and uncertainty of financial condition, going concern considerations such as the rate at which the issuer company utilizes cash and the issuer company’s ability to obtain additional private financing to fulfill its stated business plan, the need for changes to the issuer company’s existing business model due to changing business environments and its ability to successfully implement necessary changes, and comparable valuations. The carrying value of the Company’s equity investments in non-publicly traded companies at October 26, 2013, and October 27, 2012, was $7.7 million and $7.0 million, respectively. | ||
Fair Value of Financial Instruments | ||
The fair value of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate cost because of their short maturities. The fair value of the Company’s investments is primarily determined using quoted market prices for those securities or similar financial instruments. | ||
Derivative Financial Instruments | ||
In the normal course of business, the Company is exposed to fluctuations in interest rates and the exchange rates associated with foreign currencies. The derivatives entered into by the Company qualify for and are designated as foreign currency cash flow hedges. | ||
The derivatives are recognized on the Consolidated Balance Sheets at their respective fair values. Changes in fair values of outstanding cash flow hedges that are highly effective are recorded in accumulated other comprehensive loss until earnings are affected by the variability of cash flows of the underlying hedged transaction. In most cases, amounts recorded in accumulated other comprehensive loss will be released to earnings at maturity of the related derivative. The recognition of effective hedge results offsets the gains or losses on the underlying exposure. Cash flows from derivative transactions are classified according to the nature of the risk being hedged. | ||
The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions. This documentation includes linking all derivatives either to specific assets and liabilities on the consolidated balance sheets or specific firm commitments or forecasted transactions. The Company also formally assesses both at the hedge’s inception and on an ongoing basis whether the derivatives used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. | ||
The Company discontinues hedge accounting prospectively when (i) the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including hedged items such as firm commitments or forecasted transactions); (ii) the derivative expires or is sold, terminated or exercised; (iii) it is no longer probable that the forecasted transaction will occur; or (iv) management determines that designating the derivative as a hedging instrument is no longer appropriate. | ||
When the Company discontinues hedge accounting, but it continues to be probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive loss and is reclassified into earnings when the forecasted transaction affects earnings. However, if it is no longer probable that a forecasted transaction will occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gain or loss that was in accumulated other comprehensive loss will be recognized immediately in earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the Consolidated Balance Sheet until maturity and will recognize future changes in the fair value in current period earnings. Any hedge ineffectiveness is recorded in current period earnings within “Other income (loss), net.” Effectiveness is assessed based on the comparison of current forward rates to the rates established on the Company’s hedges. | ||
Inventories | ||
Inventories are stated at the lower of cost or market. Inventory costs include material, labor and overhead. The Company records inventory write-downs based on excess and obsolete inventory determined primarily by its forecast of future demand. A majority of the Company’s inventory is located off-site at customers’ hubs, third-party managed service depots and at contract manufacturers’ locations. Cash flows related to the sale of inventories are classified as cash flows from operating activities. | ||
Property and Equipment | ||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. An estimated useful life of three years is used for computer equipment and four to seven years is used for software based on the nature of the software purchased. Estimated useful lives of up to four years are used for engineering and other equipment, seven years is used for furniture and an estimated useful life of thirty-nine years is used for buildings. Leasehold improvements are amortized using the straight-line method over the shorter of ten years or the remaining term of the lease. | ||
Interest costs related to major construction projects are capitalized until the asset is ready for service. Capitalized interest is calculated by multiplying the weighted-average interest rate on the Company’s long-term debt by the qualifying construction costs. Interest capitalized may not exceed gross interest expense for the period. As the qualifying asset is moved to the depreciation and amortization pool, the related capitalized interest is also transferred and is amortized over the useful life of the related asset. No interest costs were capitalized during the years ended October 26, 2013, October 27, 2012, and October 29, 2011, since the construction of the Company’s campus project was completed in the third quarter of fiscal year 2010. | ||
Brocade evaluates long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable in accordance with Accounting Standards Codification (“ASC”) 360-10 Property, Plant and Equipment. Brocade assesses the fair value of the assets based on the undiscounted future cash flow the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset plus net proceeds expected to result from the disposition of the asset, if any, are less than the carrying value of the asset. When Brocade identifies an impairment, Brocade reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. | ||
Goodwill, Other Indefinite-lived Intangible Assets and Long-lived Intangible Assets | ||
Goodwill and other indefinite-lived intangible assets are generated as a result of business combinations. Our indefinite-lived assets are comprised of acquired in-process research and development (“IPRD”) and goodwill. IPRD is an intangible asset accounted as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. | ||
During the development period, the Company conducts an IPRD impairment test annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that it is more likely than not that IPRD is impaired. Events which might indicate impairment include, but are not limited to, adverse cost factors, deteriorating financial performance, strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on us and our customer base, and/or other relevant events such as changes in management, key personnel, litigations, or customers. | ||
The Company evaluates goodwill on an annual basis during its second fiscal quarter or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the asset’s implied fair value. Events which might indicate impairment include, but are not limited to, strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on the Company’s customer base, material negative changes in relationships with significant customers, and/or a significant decline in the Company’s stock price for a sustained period. | ||
Long-lived intangible assets are carried at cost less accumulated amortization. Amortization is recognized on a straight-line basis over the estimated useful life of the respective asset. The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Examples of such events or circumstances include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of acquired assets or the strategy for the Company’s business, significant negative industry or economic trends, and/or a significant decline in the Company’s stock price for a sustained period. Impairment is recognized based on the difference between the fair value of the asset and its carrying value. For additional discussion, see Note 4, “Goodwill and Intangible Assets,” of the Notes to Consolidated Financial Statements. | ||
Litigation Costs | ||
The Company is subject to the possibility of legal actions arising in the ordinary course of business. The Company regularly monitors the status of pending legal actions to evaluate both the magnitude and likelihood of any potential losses. An accrual for these potential losses is made when they are probable and the amount of loss, or possible range of loss, can be reasonably estimated. Legal costs related to such potential losses are expensed as incurred. In addition, recoveries are shown as a reduction in litigation costs in the period in which they are realized. | ||
Concentrations | ||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash and cash equivalents are primarily maintained at seven major financial institutions. Deposits held with banks may be redeemed upon demand and may exceed the amount of insurance provided on such deposits. | ||
A majority of the Company’s accounts receivable balance is derived from sales to original equipment manufacturer (“OEM”) partners in the computer storage and server industry. As of October 26, 2013, four customers individually accounted for 18%, 12%, 11% and 11% of total accounts receivable, for a combined total of 52% of total accounts receivable. As of October 27, 2012, three customers individually accounted for 16%, 12% and 10%, of total accounts receivable, for a combined total of 38% of total accounts receivable. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable balances. The Company has established reserves for credit losses, sales allowances, and other allowances. | ||
For the years ended October 26, 2013, October 27, 2012 and October 29, 2011, the same three customers accounted for a combined total of 46% (EMC Corporation (“EMC”) with 18%, Hewlett-Packard Company (“HP”) with 12%, and International Business Machines Corporation (“IBM”) with 16%), 47% (EMC with 16%, HP with 13%, and IBM with 18%) and 43% (EMC with 15%, HP with 13%, and IBM with 15%) of total net revenues, respectively. | ||
The Company currently relies on single and limited sources for multiple key components used in the manufacture of its products. Additionally, the Company relies on multiple contract manufacturers for the production of its products, including Hon Hai Precision Industry Co., Ltd., Accton Wireless Broadband Corporation, Motorola, Inc. and Quanta Computer Incorporated (collectively, the contract manufacturers or “CMs”). Although the Company uses standard parts and components for its products where possible, the Company’s CMs currently purchase, on their behalf, several key components used in the manufacture of products from single or limited supplier sources. | ||
Revenue Recognition | ||
Product revenue. Substantially all of the Company’s products are integrated with software that is essential to the functionality of the equipment. Additionally, the Company provides unspecified software upgrades and enhancements related to the equipment through its maintenance contracts for most of its products. Product revenue is generally recognized when all of the following criteria have been met: | ||
• | Persuasive evidence of an arrangement exists; | |
• | Delivery has occurred; | |
• | The fee is fixed or determinable; and | |
• | Collectability is reasonably assured. | |
For newly introduced products, many of the Company’s large OEM customers require a product qualification period during which the Company’s products are tested and approved by the OEM customers for sale to their customers. Revenue recognition and related cost are deferred for shipments to new OEM customers and for shipments of newly introduced products to existing OEM customers until satisfactory evidence of completion of the product qualification has been received from the OEM customer. In addition, revenue from sales to the Company’s distributor customers is recognized in the same period in which the product is actually sold by the distributor (sell-through). | ||
The Company reduces revenue for estimated sales allowances at the time of shipment and sales programs at the later of revenue recognition or communication of the commitment for sales incentives. Sales allowances are estimated based on historical sales returns. Sales programs are estimated based on approved sales programs versus claims under such sales programs, current trends and the Company’s expectations regarding future activity. In addition, the Company maintains an allowance for doubtful accounts, which is also accounted for as a reduction in revenue. The Company establishes the allowance for doubtful accounts to ensure accounts receivable are not overstated due to uncollectibility. The Company maintains bad debt reserves based upon the analysis of accounts receivable, historical collection patterns, customer concentrations, customer creditworthiness, current economic trends, changes in customer payment terms and practices, and customer communication. The Company records a specific reserve for individual accounts when it becomes aware of a customer’s likely inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. | ||
Multiple-element arrangements. The Company’s multiple-element product offerings include networking hardware with embedded software products and support, which are considered separate units of accounting. For certain of the Company’s products, software and non-software components function together to deliver the tangible products’ essential functionality. | ||
The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, the Company uses its best estimate of selling price for that deliverable. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for each element. | ||
The Company determines VSOE based on its normal pricing and discounting practices for the specific product or service when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. For post-contract customer support (“PCS”), the Company considers stated renewal rates in determining VSOE. | ||
In most instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history. When VSOE cannot be established, the Company attempts to establish the selling price for each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company’s go-to-market strategy differs from that of its peers and its offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. Therefore, the Company is typically unable to determine TPE. | ||
When the Company is unable to establish selling price using VSOE or TPE, the Company uses estimated selling price (“ESP”) in its allocation of the arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. | ||
The Company determines ESP for a product by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. The determination of ESP is made through consultation with and formal approval by the Company’s management, taking into consideration the go-to-market strategy. | ||
The Company regularly reviews VSOE, TPE and ESP and maintains internal controls over the establishment and updates of these estimates. There was no material impact on revenues during the fiscal year ended October 26, 2013 nor does the Company expect a material impact in the near term from changes in VSOE, TPE or ESP. | ||
Services revenue. Services revenue consists of training and maintenance arrangements, including PCS and other professional services. PCS services are offered under renewable, annual fee-based contracts or as part of multiple-element arrangements, and typically include telephone support and upgrades and enhancements to the Company’s operating system software. Revenue related to PCS elements is deferred and recognized ratably over the contractual period. PCS contracts are typically one to three years in length. | ||
Professional services are offered under hourly or fixed fee-based contracts. Professional services revenue is recognized as services are performed. Training revenue is recognized upon completion of the training. | ||
Warranty Expense | ||
The Company provides standard warranties on its products ranging from one year to limited lifetime warranties. Estimated future warranty costs are accrued at the time of shipment and charged to cost of revenues based upon historical experience, current trends and the Company’s expectations regarding future experience. | ||
Foreign Currency | ||
Assets and liabilities of the Company’s international subsidiaries in which the local currency is the functional currency are translated into U.S. dollars at period-end exchange rates. Income and expenses are translated into U.S. dollars at the average exchange rates during the period. The resulting translation adjustments are included in the Company’s Consolidated Balance Sheets in the stockholders’ equity section as a component of accumulated other comprehensive loss. Foreign exchange gains and losses for assets and liabilities of the Company’s international subsidiaries in which the functional currency is the U.S. dollar are recorded in the Company’s Consolidated Statement of Income. | ||
Capitalized Software Development Costs | ||
Eligible software development costs are capitalized upon the establishment of technological feasibility, which is defined as being equivalent to completion of a beta-phase working prototype. Total eligible software development costs have not been material to date. | ||
Costs related to internally developed software and software purchased for internal use, primarily for implementation and upgrade of the Company’s enterprise-wide integrated business information system, are capitalized and included in “Property and equipment, net.” These costs are being depreciated over the estimated useful lives of four to seven years based on the nature of the software purchased. | ||
Advertising Costs | ||
The Company expenses all advertising costs as incurred. Advertising costs were $15.3 million, $17.7 million and $12.1 million for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, respectively. | ||
During the fiscal year ended October 27, 2012, the Company entered into a multi-year arrangement which includes exchanging certain of the Company’s products and services, with the estimated overall fair value of $16.6 million, for advertising services. The Company is accounting for this transaction based on fair values of products and services surrendered and recognized $7.1 million and $0.3 million of gross operating revenue in the fiscal year ended October 26, 2013, and October 27, 2012, respectively. As the advertising has not yet been received, the corresponding $7.4 million advertising prepayment is currently recorded within “Other assets”. | ||
Income Taxes | ||
The Company recognizes income tax expense for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts, along with net operating loss carryforwards and credit carryforwards. A valuation allowance is recognized to the extent that it is more likely than not that the tax benefits will not be realized. | ||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. For additional discussion, see Note 15, “Income Taxes,” of the Notes to Consolidated Financial Statements. | ||
Computation of Net Income per Share | ||
Basic net income per-share is computed using the weighted-average number of common shares outstanding during the period, less shares subject to repurchase. Diluted net income per-share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period that have a dilutive effect on earnings per-share. Potentially dilutive common shares result from the assumed exercise of outstanding stock options, assumed vesting of outstanding restricted stock units and awards and assumed issuance of stock under the employee stock purchase plan, all using the treasury stock method. | ||
Stock-Based Compensation | ||
The Company accounts for employee equity awards under the fair value method. Accordingly, the Company measures stock-based compensation at the grant date based on the fair value of the award. The fair values of stock options and the Employee Stock Purchase Plan (“ESPP”) are estimated using the Black-Scholes option pricing model. Estimated compensation cost relating to restricted stock units is based on the fair value of the Company’s common stock on the date of the grant. The Company records stock-based compensation expense over the twenty-four month offering period in connection with shares issued under its ESPP. The compensation expense for stock-based awards is reduced by an estimate for forfeitures and is recognized over the vesting period of the award under a graded vesting method, except for restricted stock units granted by the Company, which are recognized over the expected term of the award under a straight-line vesting method. For additional discussion, see Note 12, “Stock-Based Compensation,” of the Notes to Consolidated Financial Statements. | ||
The Company accounts for the tax effects of share-based payment awards using the alternative transition method, which includes simplified methods to establish the beginning balance of the additional paid-in capital pool (“APIC Pool”) related to the tax effects of employee stock-based compensation and to determine the subsequent impact on the APIC Pool and consolidated statement of cash flows of the tax effects of employee stock-based compensation awards. | ||
New Accounting Pronouncements or Updates Recently Adopted | ||
In June 2011 and December 2011, the FASB issued updates to ASC 220 Comprehensive Income (“ASC 220”): Presentation of Comprehensive Income. The amendments from these updates increase the prominence of items reported in other comprehensive income and eliminate the option to present components of other comprehensive income as part of the statement of equity. The Company adopted these updates in the first quarter of fiscal year 2013, presenting the required information in the Consolidated Statements of Comprehensive Income. | ||
Recent Accounting Pronouncements or Updates That Are Not Yet Effective | ||
In February 2013, the FASB issued an update to ASC 220: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Under this update, an entity is required to provide information about the amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. This update to ASC 220 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2014. The adoption of this update to ASC 220 will not have an impact on the Company’s financial position, results of operations or cash flows. The Company will include additional information required by this update prospectively starting from the first quarter of fiscal year 2014. | ||
In March 2013, the FASB issued an update to ASC 830 Foreign Currency Matters (“ASC 830”): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. Under this update, an entity is required to release any cumulative translation adjustment into net income when an entity ceases to have a controlling financial interest resulting in the complete or substantially complete liquidation of a subsidiary or group of assets within a foreign entity. This update to ASC 830 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2015. The Company does not expect the adoption of this update to ASC 830 to have a material impact on its financial position, results of operations or cash flows. | ||
In July 2013, the FASB issued an update to ASC 740 Income Taxes (“ASC 740”): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this update, an entity is required to present an unrecognized tax benefit, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that these instances are not available at the reporting date. This update to ASC 740 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2015. The Company does not expect the adoption of this update to ASC 740 to have a material impact on its financial position, results of operations or cash flows. |
Acquisitions
Acquisitions | 12 Months Ended | |||
Oct. 26, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
Acquisition | ||||
On November 9, 2012, the Company completed its acquisition of Vyatta, Inc. (“Vyatta”), a privately held developer of a software-based network operating system suite headquartered in Belmont, California. Vyatta became a wholly-owned subsidiary of the Company as a result of the acquisition. The Vyatta operating system suite is deployed on conventional computer hardware platforms for multiple applications in network virtualization, software-defined networking (“SDN”) and private/public cloud computing platforms. This acquisition complements Brocade’s investments in SDN, Ethernet switches and routers and enables Brocade to pursue new market opportunities in data center virtualization, public cloud, enterprise virtual private cloud and managed services. | ||||
The results of operations of Vyatta are included in the Company’s Consolidated Statement of Income from the date of the acquisition. The Company does not consider the acquisition of Vyatta to be material to its results of operations or financial position, and therefore, Brocade is not presenting pro-forma financial information of combined operations. | ||||
The total purchase price was $44.8 million, consisting of $43.6 million cash consideration and $1.2 million related to prepaid license fees paid by the Company to Vyatta that was effectively settled at the recorded amount as a result of the acquisition. Of the cash consideration, $7.0 million will be held in escrow for a period of eighteen months from the closing of the acquisition and will be released subject to resolution of certain contingencies. In addition, the Company paid direct acquisition costs of $0.4 million. | ||||
In connection with this acquisition, the Company allocated the total purchase consideration to the net assets and liabilities acquired, including identifiable intangible assets, based on their respective fair values at the acquisition date. The following table summarizes the allocation of the purchase price to the fair value of the assets and liabilities acquired (in thousands): | ||||
Assets acquired: | ||||
Cash | $ | 140 | ||
Accounts receivable | 511 | |||
Identifiable intangible assets: | ||||
In-process technology | 21,590 | |||
Customer relationships | 1,080 | |||
Core/developed technology | 1,040 | |||
Non-compete agreements | 810 | |||
Trade name | 460 | |||
Total identifiable intangible assets | 24,980 | |||
Goodwill (1) | 25,681 | |||
Other assets | 1,017 | |||
Total assets acquired | 52,329 | |||
Liabilities assumed: | ||||
Deferred tax liability | 3,475 | |||
Deferred revenue | 1,354 | |||
Accounts payable and other accrued liabilities | 2,731 | |||
Total liabilities assumed | 7,560 | |||
Net assets acquired | $ | 44,769 | ||
(1) | None of the goodwill recognized is expected to be deductible for income tax purposes. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill And Intangible Assets | ' | |||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
The following table presents a summary of the net carrying value of the Company’s intangible assets (in thousands): | ||||||||||||||||
October 26, | October 27, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
Goodwill | $ | 1,645,437 | $ | 1,624,089 | ||||||||||||
In-process research and development (1) | 21,590 | — | ||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||
Total intangible assets subject to amortization | 18,668 | 109,265 | ||||||||||||||
Total intangible assets | $ | 1,685,695 | $ | 1,733,354 | ||||||||||||
-1 | Acquired in-process research and development (“IPRD”) is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. While accounted as an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that it is more likely than not that IPRD is impaired. If the research and development effort associated with the IPRD is successfully completed, then the IPRD intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. During the fiscal year ended October 26, 2013, the IPRD intangible asset was not amortized due to the current stage of the associated research and development effort, which is expected to be completed in fiscal year 2014. | |||||||||||||||
The Company performed its annual development period’s IPRD impairment test using measurement data as of the first day of the second fiscal quarter of 2013. During the test, the Company exercised the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its IPRD asset is less than its carrying amount. After assessing the totality of events and circumstances, the Company determined that it is not more likely than not that the fair value of its IPRD assets is less than its carrying amount and no further testing is required. During the fiscal year ended October 26, 2013, there were no events or changes in facts and circumstances that indicated that it is more likely than not that IPRD is impaired. | ||||||||||||||||
The following table summarizes goodwill activity by reportable segment during the fiscal years ended October 26, 2013 and October 27, 2012 (in thousands): | ||||||||||||||||
SAN | IP Networking | Global | Total | |||||||||||||
Products | Products | Services | ||||||||||||||
Balance at October 29, 2011 | ||||||||||||||||
Goodwill | $ | 176,968 | $ | 1,344,415 | $ | 155,416 | $ | 1,676,799 | ||||||||
Accumulated impairment losses | — | (45,832 | ) | — | (45,832 | ) | ||||||||||
176,968 | 1,298,583 | 155,416 | 1,630,967 | |||||||||||||
Tax and other adjustments (1) | (12 | ) | (6,866 | ) | — | (6,878 | ) | |||||||||
Balance at October 27, 2012 | ||||||||||||||||
Goodwill | 176,956 | 1,337,549 | 155,416 | 1,669,921 | ||||||||||||
Accumulated impairment losses | — | (45,832 | ) | — | (45,832 | ) | ||||||||||
176,956 | 1,291,717 | 155,416 | 1,624,089 | |||||||||||||
Acquisition | — | 25,681 | — | 25,681 | ||||||||||||
Tax and other adjustments (1) | (78 | ) | (4,255 | ) | — | (4,333 | ) | |||||||||
Balance at October 26, 2013 | ||||||||||||||||
Goodwill | 176,878 | 1,358,975 | 155,416 | 1,691,269 | ||||||||||||
Accumulated impairment losses | — | (45,832 | ) | — | (45,832 | ) | ||||||||||
$ | 176,878 | $ | 1,313,143 | $ | 155,416 | $ | 1,645,437 | |||||||||
(1) | The goodwill adjustments were primarily a result of tax benefits from the exercise of stock awards of acquired companies. | |||||||||||||||
The Company conducts its goodwill impairment test annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that the fair value of the reporting unit may be less than its carrying amount. For the annual goodwill impairment test, the Company uses the income approach, the market approach, or a combination thereof, to determine each reporting unit’s fair value. The income approach provides an estimate of fair value based on discounted expected future cash flows (“DCF”). The market approach provides an estimate of fair value using various prices or market multiples applied to the reporting unit’s operating results and then applying an appropriate control premium. For the fiscal year 2013 annual goodwill impairment test, the Company used a combination of approaches to estimate each reporting unit’s fair value. The Company believed that at the time of impairment testing performed in the second fiscal quarter of 2013, the income approach and the market approach were equally representative of a reporting unit’s fair value. | ||||||||||||||||
Determining the fair value of a reporting unit or an intangible asset requires judgment and involves the use of significant estimates and assumptions. The Company based its fair value estimates on assumptions it believes to be reasonable, but inherently uncertain. Estimates and assumptions with respect to the determination of the fair value of its reporting units using the income approach include, among other inputs: | ||||||||||||||||
• | The Company’s operating forecasts; | |||||||||||||||
• | Revenue growth rates; and | |||||||||||||||
• | Risk-commensurate discount rates and costs of capital. | |||||||||||||||
The Company’s estimates of revenues and costs are based on historical data, various internal estimates and a variety of external sources, and are developed as part of our regular long-range planning process. The control premium used in market or combined approaches is determined by considering control premiums offered as part of the acquisitions that have occurred in the reporting units’ comparable market segments. Based on the results of the annual goodwill impairment analysis performed during the second fiscal quarter of 2013, the Company determined that no impairment needed to be recorded. During the fiscal year ended October 26, 2013, there were no facts and circumstances that indicated that the fair value of the reporting units may be less than their current carrying amount. | ||||||||||||||||
Intangible assets other than goodwill are amortized on a straight-line basis over the following estimated remaining useful lives, unless the Company has determined these lives to be indefinite. The following tables present details of the Company’s finite-lived intangible assets (in thousands, except for weighted-average remaining useful life): | ||||||||||||||||
Gross | Accumulated | Net | Weighted- | |||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
October 26, 2013 | ||||||||||||||||
Trade name | $ | 460 | $ | 110 | $ | 350 | 3.01 | |||||||||
Core/developed technology | 192,340 | 185,254 | 7,086 | 0.35 | ||||||||||||
Customer relationships | 287,090 | 276,473 | 10,617 | 0.51 | ||||||||||||
Non-compete agreements | 810 | 195 | 615 | 3.01 | ||||||||||||
Total finite-lived intangible assets (1) | $ | 480,700 | $ | 462,032 | $ | 18,668 | 0.58 | |||||||||
Gross | Accumulated | Net | Weighted- | |||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
October 27, 2012 | ||||||||||||||||
Trade name | $ | 100 | $ | 97 | $ | 3 | 0.17 | |||||||||
Core/developed technology | 218,845 | 173,070 | 45,775 | 1.14 | ||||||||||||
Customer relationships | 327,765 | 264,278 | 63,487 | 1.16 | ||||||||||||
Total finite-lived intangible assets | $ | 546,710 | $ | 437,445 | $ | 109,265 | 1.16 | |||||||||
(1) | During the fiscal year ended October 26, 2013, $69.4 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. | |||||||||||||||
The following table presents the amortization of finite-lived intangible assets included on the Consolidated Statements of Income (in thousands): | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
October 26, | October 27, | October 29, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Cost of revenues | $ | 39,731 | $ | 46,229 | $ | 57,489 | ||||||||||
Operating expenses | 54,256 | 59,204 | 60,713 | |||||||||||||
Total | $ | 93,987 | $ | 105,433 | $ | 118,202 | ||||||||||
The following table presents the estimated future amortization of finite-lived intangible assets as of October 26, 2013 (in thousands): | ||||||||||||||||
Fiscal Year | Estimated | |||||||||||||||
Future | ||||||||||||||||
Amortization | ||||||||||||||||
2014 | $ | 16,994 | ||||||||||||||
2015 | 865 | |||||||||||||||
2016 | 553 | |||||||||||||||
2017 | 238 | |||||||||||||||
2018 | 18 | |||||||||||||||
Total | $ | 18,668 | ||||||||||||||
Restructuring_And_Other_Charge
Restructuring And Other Charges | 12 Months Ended | |||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Restructuring and Other Chargers | ' | |||||||||||||||||||
Restructuring and Other Charges | ||||||||||||||||||||
The following table provides details of the Company’s restructuring and other charges (in thousands): | ||||||||||||||||||||
Fiscal 2013 Fourth Quarter Restructuring Plan | Prior Restructuring Plans | |||||||||||||||||||
Severance | Contract Terminations | Lease Loss | Lease Loss | Total | ||||||||||||||||
and Benefits | and Other | Reserve and Related Costs | Reserve and Related Costs | |||||||||||||||||
Restructuring liabilities at October 29, 2011 | $ | — | $ | — | $ | — | $ | 3,952 | $ | 3,952 | ||||||||||
Cash payments | — | — | — | (1,334 | ) | (1,334 | ) | |||||||||||||
Other adjustments, net | — | — | — | (36 | ) | (36 | ) | |||||||||||||
Restructuring liabilities at October 27, 2012 | — | — | — | 2,582 | 2,582 | |||||||||||||||
Restructuring and other charges | 20,413 | 3,981 | 1,070 | — | 25,464 | |||||||||||||||
Cash payments | (5,197 | ) | (3,565 | ) | (1 | ) | (788 | ) | (9,551 | ) | ||||||||||
Non-cash charges | — | — | (1,069 | ) | — | (1,069 | ) | |||||||||||||
Restructuring liabilities at October 26, 2013 | $ | 15,216 | $ | 416 | $ | — | $ | 1,794 | $ | 17,426 | ||||||||||
Current restructuring liabilities at October 26, 2013 | $ | 15,216 | $ | 416 | $ | — | $ | 786 | $ | 16,418 | ||||||||||
Non-current restructuring liabilities at October 26, 2013 | $ | — | $ | — | $ | — | $ | 1,008 | $ | 1,008 | ||||||||||
Fiscal 2013 Fourth Quarter Restructuring Plan | ||||||||||||||||||||
During the fiscal year ended October 26, 2013, the Company reevaluated its business model to restructure certain business operations, reorganize certain business units within the Company, and reduce the Company’s operating expense structure. The restructuring plan was approved by the Company’s management and communicated to the Company’s employees in September 2013. The plan included a workforce reduction of approximately 250 employees, primarily in the engineering, sales, and marketing organizations, as well as the cancellation of certain non-recurring engineering agreements and exit from certain leased facilities. | ||||||||||||||||||||
In connection with the plan, the Company incurred aggregate charges of $25.5 million as of October 26, 2013, primarily related to severance and benefits charges. We expect to incur total charges of approximately $35.0 million, with future costs primarily related to lease loss reserve and related costs, by the expected completion of the plan by the end of the first quarter of 2014. | ||||||||||||||||||||
Severance and benefits charges incurred during the quarter ended October 26, 2013, consisted of severance and related employee termination costs, including salary and other compensation payments to the employees during their post-notification retention period, as well as outplacement services, associated with the reduction of the Company’s workforce. The post-notification retention period for the employees terminated under the plan did not exceed the legal notification period, or in the absence of a legal notification requirement, 60 days. Contract terminations and other charges were primarily related to the cancellation of certain contracts in connection with the restructuring of certain business functions. Lease loss reserve and related costs were primarily related to the loss on cancellation of the right of first offer to purchase an unimproved parcel. | ||||||||||||||||||||
The Company reevaluates its estimates and assumptions on a quarterly basis and makes adjustments to the restructuring liabilities balance if necessary. No material changes in estimates were made to the fiscal 2013 fourth quarter restructuring plan accrual. The Company expects to pay or otherwise substantially settle the remaining accrued liabilities during the next fiscal year. | ||||||||||||||||||||
The above restructuring and other related charges are included in “Restructuring and other costs (recoveries)” on the Consolidated Statements of Income. | ||||||||||||||||||||
Prior Restructuring Plans | ||||||||||||||||||||
During the fiscal years prior to fiscal year 2013, the Company recorded charges related to estimated facilities lease losses, net of expected sublease income, due to consolidation of real estate space as a result of acquisitions. | ||||||||||||||||||||
Cash payments for facilities that are part of the Company’s lease loss reserve are expected to be paid over the respective lease terms through fiscal year 2017. |
Balance_Sheet_Details
Balance Sheet Details | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Balance Sheet Details [Abstract] | ' | |||||||||||
Balance Sheet Details | ' | |||||||||||
Balance Sheet Details | ||||||||||||
The following tables provide details of selected balance sheet items (in thousands): | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Accounts receivable: | ||||||||||||
Accounts receivable | $ | 257,494 | $ | 243,731 | ||||||||
Allowance for doubtful accounts | (575 | ) | (833 | ) | ||||||||
Sales allowances | (7,321 | ) | (9,759 | ) | ||||||||
Total | $ | 249,598 | $ | 233,139 | ||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Inventories: | ||||||||||||
Raw materials | $ | 14,048 | $ | 24,240 | ||||||||
Finished goods | 31,296 | 43,939 | ||||||||||
Total | $ | 45,344 | $ | 68,179 | ||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Property and equipment, net: | ||||||||||||
Computer equipment | $ | 16,006 | $ | 17,953 | ||||||||
Software | 57,186 | 39,410 | ||||||||||
Engineering and other equipment (1) | 416,573 | 409,524 | ||||||||||
Furniture and fixtures (1) | 29,029 | 30,516 | ||||||||||
Leasehold improvements | 24,287 | 26,306 | ||||||||||
Land and building | 384,654 | 384,666 | ||||||||||
Subtotal | 927,735 | 908,375 | ||||||||||
Less: Accumulated depreciation and amortization (1), (2) | (454,795 | ) | (389,435 | ) | ||||||||
Total | $ | 472,940 | $ | 518,940 | ||||||||
(1) | Engineering and other equipment, furniture and fixtures and accumulated depreciation and amortization include the following amounts under capital leases as of October 26, 2013, and October 27, 2012 (in thousands): | |||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Cost | $ | 11,925 | $ | 10,613 | ||||||||
Accumulated depreciation | (5,366 | ) | (3,647 | ) | ||||||||
Total | $ | 6,559 | $ | 6,966 | ||||||||
(2) | The following table presents the depreciation of property and equipment included on the Consolidated Statements of Income (in thousands): | |||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation expense | $ | 90,127 | $ | 86,785 | $ | 88,150 | ||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Other accrued liabilities: | ||||||||||||
Income taxes payable | $ | 11,081 | $ | 15,079 | ||||||||
Accrued warranty | 8,632 | 14,453 | ||||||||||
Inventory purchase commitments | 4,436 | 4,271 | ||||||||||
Accrued sales programs | 25,752 | 24,801 | ||||||||||
Accrued interest | 10,056 | 12,011 | ||||||||||
Others | 20,382 | 20,670 | ||||||||||
Total | $ | 80,339 | $ | 91,285 | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing the asset or liability. The Company applies fair value measurements for both financial and nonfinancial assets and liabilities. The Company has no nonfinancial assets and liabilities that are required to be measured at fair value on a recurring basis as of October 26, 2013. | ||||||||||||||||
The fair value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, restricted cash, accounts payable and accrued liabilities, approximate cost because of their short maturities. | ||||||||||||||||
The Company did not elect to measure any eligible financial instruments at fair value and report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: | ||||||||||||||||
Level 1 | ||||||||||||||||
Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. Brocade’s assets utilizing Level 1 inputs include money market funds. | ||||||||||||||||
Level 2 | ||||||||||||||||
Inputs that reflect quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in less active markets, or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Brocade’s assets and liabilities utilizing Level 2 inputs include derivative instruments. | ||||||||||||||||
Level 3 | ||||||||||||||||
Unobservable inputs that reflect the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. Brocade has no assets or liabilities utilizing Level 3 inputs. | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of October 26, 2013 were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of October 26, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Inputs | Inputs | ||||||||||||||
Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 431,750 | $ | 431,750 | $ | — | $ | — | ||||||||
Derivative assets | 1,814 | — | 1,814 | — | ||||||||||||
Total assets measured at fair value | $ | 433,564 | $ | 431,750 | $ | 1,814 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 1,441 | $ | — | $ | 1,441 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 1,441 | $ | — | $ | 1,441 | $ | — | ||||||||
(1) | Money market funds are reported within “Cash and cash equivalents” on the Consolidated Balance Sheets. | |||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of October 27, 2012 were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of October 27, 2012 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Inputs | Inputs | ||||||||||||||
Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 308,960 | $ | 308,960 | $ | — | $ | — | ||||||||
Derivative assets | $ | 2,941 | $ | — | $ | 2,941 | $ | — | ||||||||
Total assets measured at fair value | $ | 311,901 | $ | 308,960 | $ | 2,941 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 296 | $ | — | $ | 296 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 296 | $ | — | $ | 296 | $ | — | ||||||||
(1) | Money market funds are reported within “Cash and cash equivalents” on the Consolidated Balance Sheets. | |||||||||||||||
The Company uses a midpoint of the highest bid and lowest offering obtained from market makers to value its corporate bonds. The Company uses observable market prices for comparable instruments to value its derivative instruments. | ||||||||||||||||
During the fiscal year ended October 26, 2013, the Company had no transfers between levels of the fair value hierarchy of its assets measured at fair value. |
Borrowings
Borrowings | 12 Months Ended | |||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Borrowings | ' | |||||||||||||||||||
Borrowings | ||||||||||||||||||||
The following table provides details of the Company’s long-term debt (in thousands, except years and percentages): | ||||||||||||||||||||
26-Oct-13 | 27-Oct-12 | |||||||||||||||||||
Maturity | Stated Annual Interest Rate | Amount | Effective Interest Rate | Amount | Effective Interest Rate | |||||||||||||||
Senior Secured Notes: | ||||||||||||||||||||
2018 Notes | 2013 | 6.63% | $ | — | — | % | $ | 300,000 | 7.05 | % | ||||||||||
2020 Notes | 2020 | 6.88% | 300,000 | 7.26 | % | 300,000 | 7.26 | % | ||||||||||||
Senior Unsecured Notes: | ||||||||||||||||||||
2023 Notes | 2023 | 4.63% | 300,000 | 4.83 | % | — | — | % | ||||||||||||
Capital lease obligations | 2016 | 5.67% | 4,600 | 5.5 | % | 4,916 | 5.8 | % | ||||||||||||
Total long-term debt | 604,600 | 604,916 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Unamortized discount | 5,396 | 3,736 | ||||||||||||||||||
Current portion of long-term debt | 2,996 | 1,977 | ||||||||||||||||||
Total long-term debt, net of current portion | $ | 596,208 | $ | 599,203 | ||||||||||||||||
Senior Unsecured Notes | ||||||||||||||||||||
In January 2013, the Company issued 4.625% senior unsecured notes in the aggregate principal amount of $300.0 million due 2023 (the “2023 Notes”) pursuant to an Indenture, dated as of January 22, 2013 (the “2023 Indenture”), between the Company, certain domestic subsidiaries of the Company that have guaranteed the Company’s obligations under the 2023 Notes (as described in Note 18, “Guarantor and Non-Guarantor Subsidiaries”) and Wells Fargo Bank, National Association as the trustee. The Company irrevocably deposited the net proceeds from this offering, together with cash on hand, with the trustee to redeem all of the Company’s outstanding 6.625% senior secured notes due 2018 (the “2018 Notes”) as described below under “Senior Secured Notes.” | ||||||||||||||||||||
The 2023 Notes bear interest payable semi-annually on January 15 and July 15 of each year. No payments were made toward the principal of the 2023 Notes during the fiscal year ended October 26, 2013. | ||||||||||||||||||||
As of October 26, 2013, the fair value of the Company’s 2023 Notes was approximately $281.1 million, estimated based on broker trading prices. | ||||||||||||||||||||
On or after January 15, 2018, the Company may redeem all or part of the 2023 Notes at the redemption prices set forth in the 2023 Indenture, plus accrued and unpaid interest, if any, up to the redemption date. At any time prior to January 15, 2018, the Company may redeem all or a part of the 2023 Notes at a price equal to 100% of the principal amount of the 2023 Notes, plus an applicable premium and accrued and unpaid interest, if any, up to the redemption date. In addition, at any time prior to January 15, 2016, the Company may redeem up to 35% of the principal amount of the 2023 Notes, using the net cash proceeds of one or more sales of the Company’s capital stock at a redemption price equal to 104.625% of the principal amount of the 2023 Notes redeemed, plus accrued and unpaid interest, if any, up to the redemption date. | ||||||||||||||||||||
If the Company experiences a specified change of control triggering event, it must offer to repurchase the 2023 Notes at a repurchase price equal to 101% of the principal amount of the 2023 Notes repurchased, plus accrued and unpaid interest, if any, up to the repurchase date. | ||||||||||||||||||||
The 2023 Indenture contains covenants that, among other things, restrict the ability of the Company and its subsidiaries to: | ||||||||||||||||||||
• | Incur certain liens and enter into certain sale leaseback transactions; | |||||||||||||||||||
• | Create, assume, incur or guarantee additional indebtedness of the Company’s subsidiaries without such subsidiary guaranteeing the 2023 Notes on a pari passu basis; and | |||||||||||||||||||
• | Consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s or its subsidiaries’ assets. | |||||||||||||||||||
These covenants are subject to a number of limitations and exceptions set forth in the 2023 Indenture. The 2023 Indenture also includes customary events of default, including cross-defaults to other debt of the Company and its subsidiaries. | ||||||||||||||||||||
Senior Secured Notes | ||||||||||||||||||||
In January 2010, the Company issued $300.0 million in aggregate principal amount of the 2018 Notes and $300.0 million in aggregate principal amount of 6.875% senior secured notes due 2020 (the “2020 Notes” and together with the 2018 Notes, the “Senior Secured Notes”) pursuant to separate indentures, each dated as of January 20, 2010, between the Company, certain domestic subsidiaries of the Company that have guaranteed the Company’s obligations under the Senior Secured Notes and Wells Fargo Bank, National Association as the trustee (the “2020 Indenture” and “2018 Indenture,” respectively). The Senior Secured Notes bear interest payable semi-annually on January 15 and July 15 of each year. During the fiscal year ended October 26, 2013, the Company paid $300.0 million to pay in full the principal of the 2018 Notes. The Company’s obligations under the 2020 Notes are—and prior to January 22, 2013, the Company’s obligations under the 2018 Notes were—guaranteed by certain of the Company’s domestic subsidiaries and secured by a lien on substantially all of the Company’s and the subsidiary guarantors’ assets. See Note 18, “Guarantor and Non-Guarantor Subsidiaries,” of the Notes to Consolidated Financial Statements. | ||||||||||||||||||||
As of October 26, 2013, and October 27, 2012, the fair value of the Senior Secured Notes was approximately $324.4 million and $638.3 million, respectively, estimated based on broker trading prices. | ||||||||||||||||||||
On January 22, 2013, the Company called the 2018 Notes for redemption at a redemption price equal to 103.313% of the principal amount of the 2018 Notes and irrevocably deposited $311.9 million with the trustee for the 2018 Notes to discharge the 2018 Indenture. As a result of the deposit and discharge, the guarantees provided by certain of the Company’s domestic subsidiaries and the liens granted by the Company and the subsidiary guarantors to secure their obligations with respect to the 2018 Notes were released as of the date of the deposit. The amount deposited with the trustee included $300.0 million to repay the principal amount of the 2018 Notes, $9.9 million representing the difference between the redemption price and the principal amount of the 2018 Notes (“Call Premium”) and $2.0 million of unpaid interest payable up to the redemption date of February 21, 2013. On February 21, 2013, the trustee redeemed the 2018 Notes using the deposited amount, extinguishing the Company’s $300.0 million liability in relation to the principal amount of the 2018 Notes. | ||||||||||||||||||||
In accordance with the applicable accounting guidance for debt modification and extinguishment, and for interest costs accounting, the Company expensed the Call Premium, remaining debt issuance costs and remaining original issue discount relating to the 2018 Notes in the first quarter of fiscal year 2013, which totaled $15.3 million. The Company reported this expense within “Interest expense” in the Consolidated Statements of Income for the fiscal year ended October 26, 2013. | ||||||||||||||||||||
On or after January 2015, the Company may redeem all or a part of the 2020 Notes at the redemption prices set forth in the 2020 Indenture, plus accrued and unpaid interest and special interest, if any, to the applicable redemption date. In addition, at any time prior to January 2015, the Company may, on one or more than one occasion, redeem some or all of the 2020 Notes at any time at a redemption price equal to 100% of the principal amount of the 2020 Notes redeemed, plus a “make-whole” premium determined as of the applicable redemption date, and accrued and unpaid interest and special interest, if any, to the applicable redemption date. | ||||||||||||||||||||
If the Company experiences specified change of control triggering events, it must offer to repurchase the 2020 Notes at a repurchase price equal to 101% of the principal amount of the 2020 Notes repurchased, plus accrued and unpaid interest and special interest, if any, to the applicable repurchase date. If the Company or its subsidiaries sell assets under certain specified circumstances, the Company must offer to repurchase the 2020 Notes at a repurchase price equal to 100% of the principal amount of the 2020 Notes repurchased, plus accrued and unpaid interest and special interest, if any, to the applicable repurchase date. | ||||||||||||||||||||
The 2020 Indenture contains covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to: | ||||||||||||||||||||
• | Pay dividends, make investments or make other restricted payments; | |||||||||||||||||||
• | Incur additional indebtedness; | |||||||||||||||||||
• | Sell assets; | |||||||||||||||||||
• | Enter into transactions with affiliates; | |||||||||||||||||||
• | Incur liens; | |||||||||||||||||||
• | Permit consensual encumbrances or restrictions on the Company’s restricted subsidiaries’ ability to pay dividends or make certain other payments to the Company; | |||||||||||||||||||
• | Consolidate, merge, sell or otherwise dispose of all or substantially all of the Company’s or its restricted subsidiaries’ assets; and | |||||||||||||||||||
• | Designate subsidiaries as unrestricted. | |||||||||||||||||||
These covenants are subject to a number of limitations and exceptions set forth in the 2020 Indenture. The 2020 Indenture also includes customary events of default, including cross-defaults to other debt of the Company and its subsidiaries. Prior to discharge, the 2018 Indenture contained substantially similar covenants and events of default to those in the 2020 Indenture. | ||||||||||||||||||||
Senior Secured Credit Facility | ||||||||||||||||||||
In October 2008, the Company entered into a credit agreement for (i) a five-year $1,100.0 million term loan facility and (ii) a five-year $125.0 million revolving credit facility, which includes a $25.0 million swing line loan sub-facility and a $25.0 million letter of credit sub-facility (“Senior Secured Credit Facility”). | ||||||||||||||||||||
The credit agreement was subsequently amended in January 2010, June 2011, and October 2013, to, among other things, remove and update certain covenants, reduce interest rates on the term loan facility, reduce interest rates and fees on the revolving credit facility, and extend the maturity date of the revolving credit facility to April 7, 2014. In accordance with the applicable accounting guidance for debt modification and extinguishment, the Company expensed $25.5 million of debt issuance costs and original issue discount relating to the portion of the term loan that was extinguished by the repricing of the term loans affected by the June 2011 amendment. This expense was reported within “Interest expense” in the Consolidated Statements of Income for the fiscal year ended October 29, 2011. | ||||||||||||||||||||
The term loan was prepaid in full, and there were no principal amounts or commitments outstanding under the term loan facility as of either October 26, 2013, or October 27, 2012. | ||||||||||||||||||||
The Company may borrow under the revolving credit facility in the future for ongoing working capital and other general corporate purposes. There were no principal amounts outstanding under the revolving credit facility, and the full $125.0 million was available for future borrowing under the revolving credit facility as of October 26, 2013, and October 27, 2012. | ||||||||||||||||||||
The credit agreement contains financial covenants that require the Company to maintain a minimum consolidated fixed charge coverage ratio and maximum consolidated leverage ratio. The credit agreement also includes customary nonfinancial covenants (similar in nature to those under the Senior Secured Notes) and customary events of default, including cross-defaults to the Company’s material indebtedness and change of control. The Company’s obligations under the Senior Secured Credit Facility are guaranteed by certain of the Company’s domestic subsidiaries and secured by a lien on substantially all of the Company’s and the subsidiary guarantors’ assets. | ||||||||||||||||||||
Debt Maturities | ||||||||||||||||||||
As of October 26, 2013, our aggregate debt maturities based on outstanding principal were as follows (in thousands): | ||||||||||||||||||||
Fiscal Year | Principal | |||||||||||||||||||
Balances | ||||||||||||||||||||
2014 | $ | 2,996 | ||||||||||||||||||
2015 | 1,284 | |||||||||||||||||||
2016 | 320 | |||||||||||||||||||
2017 | — | |||||||||||||||||||
2018 | — | |||||||||||||||||||
Thereafter | 600,000 | |||||||||||||||||||
Total | $ | 604,600 | ||||||||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments And Contingencies | ' | |||||||||||
Commitments and Contingencies | ||||||||||||
Operating Leases | ||||||||||||
The Company leases certain facilities and certain equipment under various operating agreements expiring through March 2021. In connection with its facilities lease agreements, the Company has signed unconditional, irrevocable letters of credit totaling $0.2 million as security for the leases. | ||||||||||||
The following table presents the composition of net rent expense included on the Consolidated Statements of Income (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Rent expense | $ | 26,199 | $ | 25,867 | $ | 26,576 | ||||||
Less: Sublease income | (6,834 | ) | (6,606 | ) | (5,643 | ) | ||||||
$ | 19,365 | $ | 19,261 | $ | 20,933 | |||||||
Future minimum lease payments under all non-cancellable operating leases as of October 26, 2013, excluding the contractual sublease income of $22.7 million, are as follows (in thousands): | ||||||||||||
Fiscal Year | Operating | |||||||||||
Leases | ||||||||||||
2014 | $ | 22,253 | ||||||||||
2015 | 17,040 | |||||||||||
2016 | 15,313 | |||||||||||
2017 | 6,889 | |||||||||||
2018 | 2,884 | |||||||||||
Thereafter | 5,876 | |||||||||||
Total minimum lease payments | $ | 70,255 | ||||||||||
Capital Lease Obligations | ||||||||||||
Future minimum lease payments under all non-cancellable capital leases as of October 26, 2013, are as follows (in thousands): | ||||||||||||
Fiscal Year | Capital | |||||||||||
Leases | ||||||||||||
2014 | $ | 3,215 | ||||||||||
2015 | 1,329 | |||||||||||
2016 | 326 | |||||||||||
2017 | — | |||||||||||
Total minimum lease payments | 4,870 | |||||||||||
Less: Amount representing interest | (270 | ) | ||||||||||
Present value of net minimum lease payments | $ | 4,600 | ||||||||||
Product Warranties | ||||||||||||
The Company’s accrued liability for estimated future warranty costs is included in “Other accrued liabilities” in the accompanying Consolidated Balance Sheets. The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty costs during the fiscal years ended October 26, 2013, and October 27, 2012 (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Beginning balance | $ | 14,453 | $ | 11,298 | ||||||||
Liabilities accrued for warranties issued during the period | 4,969 | 5,929 | ||||||||||
Warranty claims paid and used during the period | (8,213 | ) | (575 | ) | ||||||||
Changes in liability for pre-existing warranties during the period | (2,577 | ) | (2,199 | ) | ||||||||
Ending balance | $ | 8,632 | $ | 14,453 | ||||||||
In addition, the Company has standard defense and indemnification clauses contained within its various customer contracts. As such, the Company indemnifies the parties to whom it sells its products with respect to the Company’s product, alone or potentially in combination with others, infringing upon any patents, trademarks, copyrights, or trade secrets, as well as against bodily injury or damage to real or tangible personal property caused by a defective Company product. As of October 26, 2013, Brocade was not aware of any events or circumstances that have resulted in a material customer contract-related indemnification liability to the Company. | ||||||||||||
Manufacturing and Purchase Commitments | ||||||||||||
Brocade has manufacturing arrangements with CMs under which Brocade provides twelve-month product forecasts and places purchase orders at the time of the scheduled delivery of products to Brocade’s customers. The required lead time for placing orders with the CMs depends on the specific product. Brocade issues purchase orders and the CMs then generate invoices based on prices and payment terms mutually agreed upon and set forth in those purchase orders. Although the purchase orders Brocade places with its CMs are cancellable, the terms of the agreements require Brocade to purchase all inventory components not returnable to, usable by, or sold to other customers of the CMs. | ||||||||||||
As of October 26, 2013, the Company’s aggregate commitment to the CMs for inventory components used in the manufacture of Brocade products was $186.6 million, which the Company expects to utilize during future normal ongoing operations, net of a purchase commitments reserve of $4.4 million. The Company’s purchase commitments reserve reflects the Company’s estimate of purchase commitments it does not expect to use in normal ongoing operations within the next twelve months. | ||||||||||||
Income Taxes | ||||||||||||
The Company is subject to several ongoing income tax audits. For additional discussion, see Note 15, “Income Taxes,” of the Notes to Consolidated Financial Statements. The Company believes it has adequate reserves for all open tax years. | ||||||||||||
Legal Proceedings | ||||||||||||
Stockholder Litigation | ||||||||||||
In March 2012, a stockholder filed a complaint in the Santa Clara County Superior Court captioned Stephen Knee vs. Brocade Communications Systems, Inc., et al. alleging that the proposal in Brocade’s proxy for its 2012 annual meeting of stockholders seeking additional shares for the 2009 Stock Plan pool was misleading and incomplete; the plaintiff claimed the right to enjoin the stockholders’ vote. The parties subsequently agreed to settle the matter. The Court granted final approval of the settlement on December 14, 2012, and a final judgment was then entered on December 19, 2012. Brocade completed the payment of attorney fees and expenses to plaintiff’s counsel in an amount immaterial to Brocade in accordance with the settlement and the final judgment. | ||||||||||||
Intellectual Property Litigation | ||||||||||||
On June 21, 2005, Enterasys Networks, Inc. (“Enterasys”) filed a lawsuit against Foundry Networks, Inc. (now known as Foundry Networks, LLC) (“Foundry”) and Extreme Networks, Inc. (“Extreme”) in the United States District Court for the District of Massachusetts alleging that certain of Foundry’s products infringed six of Enterasys’ patents and seeking injunctive relief, as well as unspecified damages. The Court severed the claims against Extreme from the claims against Foundry for trial, and Enterasys subsequently added Brocade as a defendant. On May 1, 2013, the Court entered an order of dismissal with prejudice pursuant to a settlement and patent cross-license agreement reached by the parties on April 19, 2013. As a result of this agreement, Brocade recorded a charge to “Cost of revenues, product” in the Consolidated Statements of Income for the fiscal year ended October 26, 2013, in relation to the portion of the cross license agreement and settlement payment attributable to prior periods. The portion of the cross license agreement and settlement payment attributable to future periods is recorded within “Prepaid expenses and other current assets,” and the related amortization is recorded as a charge to “Cost of revenues, product.” | ||||||||||||
On September 6, 2006, ChriMar Systems, Inc. (“ChriMar”) filed a lawsuit against Foundry in the United States District Court for the Eastern District of Michigan alleging that certain of Foundry’s products infringe one of ChriMar’s patents and seeking injunctive relief, as well as unspecified damages. On August 1, 2012, the Court issued an order granting summary judgment in favor of Brocade and dismissed the case. ChriMar subsequently appealed the District Court’s ruling to the Federal Circuit Court of Appeals. On April 4, 2013, the Federal Circuit Court of Appeals affirmed the District Court ruling in favor of Brocade and dismissed the case. | ||||||||||||
On August 4, 2010, Brocade and Foundry (collectively and for this paragraph only, “Brocade”) filed a lawsuit against A10 Networks, Inc. (“A10”), A10’s founder and other individuals in the United States District Court for the Northern District of California. On October 29, 2010, Brocade filed an amended complaint. In the amended complaint, Brocade alleged that A10 and the individual defendants misappropriated Brocade’s trade secrets, infringed Brocade’s copyrighted works, interfered with existing contracts between Brocade and its employees, whereby certain of Brocade’s current and ex-employees breached contracts, and breached their fiduciary duties and duties of loyalty to Brocade, and that certain of A10’s products infringed 13 of Brocade’s patents. Brocade sought injunctive relief, as well as monetary damages. On May 16, 2011, A10 filed an answer and counterclaim alleging that certain of Brocade’s products infringe a patent recently acquired by A10 and seeking injunctive relief, as well as unspecified damages. In addition, A10 filed petitions with the USPTO to have each of the 13 patents reexamined, in view of prior art that A10 alleges invalidates the patents. The petitions were granted, and reexaminations of the patents are in progress. On January 6, 2012 the Court granted Brocade’s summary judgment motion of non-infringement of the A10 patent. The trial on Brocade’s claims against A10 and the individual defendants commenced on July 16, 2012. On August 6, 2012, the jury found A10 responsible for intellectual property infringement and unfair competition, and awarded damages to Brocade. On January 11, 2013, the Court issued an order that affirmed the jury’s finding of A10’s liability for patent and copyright infringement, trade secret misappropriation, and unfair competition due to A10’s interference with the employment contract of a Foundry Networks employee beginning in 2007. The Court also confirmed the jury’s award of $60.0 million to Brocade in damages for copyright infringement. The Court did, however, vacate the jury’s award of damages for patent infringement, and its award of punitive damages for A10’s and Lee Chen’s interference with the employment contract of the Foundry employee, and the Court ordered a new trial to redetermine the amount of any such damages. On January 11, 2013, the Court also issued a permanent injunction prohibiting A10 from shipping any A10 products that infringe Brocade’s patents. On January 23, 2013, the Court issued a permanent injunction prohibiting A10 from further use of the misappropriated trade secrets. On February 8, 2013, A10 filed a Notice of Appeal of the permanent injunctions. A10 also asked the Court to stay both of the injunctions pending appeal. On February 12, 2013, the Court denied A10’s request to stay the injunctions. A retrial on the sole issue of the amount of patent damages to be awarded to Brocade for A10’s infringement was set for May 20, 2013. On May 20, 2013, before the start of the retrial, Brocade and A10 reached an agreement to settle all matters between the parties including the lawsuit A10 filed against Brocade on September 9, 2011. On June 7, 2013, judgment was entered in favor of Brocade against A10 for the amount of $75.0 million (as further described in Note 14, “Other Income (Loss), net”). Pursuant to that judgment, A10 paid Brocade $5.0 million on June 25, 2013, and on July 22, 2013, the parties signed a $70.0 million, six-month convertible promissory note at 8%. That promissory note was then paid in full on September 30, 2013, including $70.0 million in principal and approximately $1.1 million in interest paid by A10 to Brocade. | ||||||||||||
General | ||||||||||||
From time to time, the Company is subject to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including claims of alleged infringement of patents and/or other intellectual property rights and commercial and employment contract disputes. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized. |
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Instruments And Hedging Activities | ' | |||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||
In the normal course of business, the Company is exposed to fluctuations in interest rates and the exchange rates associated with foreign currencies. The Company’s primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk. The Company currently does not enter into derivative instruments to manage credit risk. However, the Company manages its exposure to credit risk through its investment policies. The Company generally enters into derivative transactions with high-credit quality counterparties and, by policy, limits the amount of credit exposure to any one counterparty based on its analysis of that counterparty’s relative credit standing. | ||||||||||||||||
The amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which the counterparty’s obligations to the Company exceed the Company’s obligations with that counterparty. | ||||||||||||||||
Foreign Currency Exchange Rate Risk | ||||||||||||||||
A majority of the Company’s revenue, expense and capital purchasing activities is transacted in U.S. dollars. However, the Company is exposed to foreign currency exchange rate risk inherent in conducting business globally in numerous currencies. The Company is primarily exposed to foreign currency fluctuations related to operating expenses denominated in currencies other than the U.S. dollar, of which the most significant to its operations for the fiscal year ended October 26, 2013, were the Chinese yuan, the euro, the Japanese yen, the Indian rupee, the British pound, the Singapore dollar and the Swiss franc. The Company has established a foreign currency risk management program to protect against the volatility of future cash flows caused by changes in foreign currency exchange rates. This program reduces, but does not always entirely eliminate, the impact of foreign currency exchange rate movements. | ||||||||||||||||
The Company’s foreign currency risk management program includes foreign currency derivatives with cash flow hedge accounting designation that utilizes foreign currency forward and option contracts to hedge exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S.-dollar-denominated cash flows. These instruments generally have a maturity of less than fifteen months. For these derivatives, the Company reports the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive loss in stockholders’ equity and reclassifies it into earnings in the same period in which the hedged transaction affects earnings. The tax effect allocated to cash flow hedge-related components of other comprehensive income (loss) was not significant for the fiscal years ended October 26, 2013, October 27, 2012, and October 29, 2011. | ||||||||||||||||
Effective cash flow hedges are reported as a component of accumulated other comprehensive loss. Ineffective cash flow hedges are included in the Company’s net income as part of “Other income (loss), net.” The amount recorded on ineffective cash flow hedges was not significant for the fiscal years ended October 26, 2013, October 27, 2012, and October 29, 2011. | ||||||||||||||||
Net gains (losses) relating to the effective portion of foreign currency derivatives recorded in the consolidated statements of income are as follows (in thousands): | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
26-Oct-13 | 27-Oct-12 | 29-Oct-11 | ||||||||||||||
Cost of revenues | $ | 98 | $ | (1,043 | ) | $ | 882 | |||||||||
Research and development | (60 | ) | (1,094 | ) | 496 | |||||||||||
Sales and marketing | 356 | (5,704 | ) | 5,498 | ||||||||||||
General and administrative | 31 | (510 | ) | 416 | ||||||||||||
Total | $ | 425 | $ | (8,351 | ) | $ | 7,292 | |||||||||
Alternatively, the Company may choose not to hedge the foreign currency risk associated with its foreign currency exposures if the Company believes such exposure acts as a natural foreign currency hedge for other offsetting amounts denominated in the same currency or if the currency is difficult or too expensive to hedge. The net foreign currency exchange gains and losses recorded as part of “Other income (loss), net” were gains of $0.1 million and losses of $1.5 million and $0.6 million for the fiscal years ended October 26, 2013, October 27, 2012, and October 29, 2011, respectively. | ||||||||||||||||
Gross unrealized loss positions are recorded within “Other accrued liabilities” and “Other non-current liabilities,” and gross unrealized gain positions are recorded within “Prepaid expenses and other current assets.” As of October 26, 2013, the Company had gross unrealized loss positions of $1.4 million and gross unrealized gain positions of $1.8 million included in “Other accrued liabilities” and “Prepaid expenses and other current assets,” respectively. | ||||||||||||||||
Volume of Derivative Activity | ||||||||||||||||
Total gross notional amounts, presented by currency, are as follows (in thousands): | ||||||||||||||||
Derivatives Designated | Derivatives Not Designated | |||||||||||||||
as Hedging Instruments | as Hedging Instruments | |||||||||||||||
In United States dollars | October 26, 2013 | October 27, 2012 | October 26, 2013 | October 27, 2012 | ||||||||||||
Euro | $ | 16,012 | $ | 43,357 | $ | 25,478 | $ | — | ||||||||
British pound | 25,053 | 20,499 | — | — | ||||||||||||
Japanese yen | 16,172 | 3,776 | — | 12,068 | ||||||||||||
Indian rupee | 17,444 | 16,046 | — | — | ||||||||||||
Singapore dollar | 12,867 | 12,918 | — | — | ||||||||||||
Swiss franc | 11,066 | 8,575 | — | — | ||||||||||||
Total | $ | 98,614 | $ | 105,171 | $ | 25,478 | $ | 12,068 | ||||||||
The Company utilizes a rolling hedge strategy for the majority of its foreign currency derivative instruments with cash flow hedge accounting designation that hedges exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S.-dollar-denominated cash flows. All of the Company’s foreign currency forward contracts are single delivery, which are settled at maturity involving one cash payment. |
Employee_Compensation_Plans
Employee Compensation Plans | 12 Months Ended | |
Oct. 26, 2013 | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | |
Compensation and Employee Benefit Plans | ' | |
Employee Compensation Plans | ||
In April 2009, the stockholders of Brocade approved the Company’s 2009 Stock Plan, 2009 Director Plan and 2009 Employee Stock Purchase Plan (“2009 ESPP”), and such plans are now part of the Company’s equity compensation plans. The Company’s 1999 Stock Plan, 1999 Director Option Plan and 1999 Employee Stock Purchase Plan each expired in March 2009 by their terms. | ||
In April 2012, the stockholders of Brocade approved an amendment and restatement of the Company’s 2009 Stock Plan and 2009 ESPP to increase the plans’ share reserves by 35.0 million and 30.0 million shares, respectively. | ||
In January 2013, the Compensation Committee (the “Committee”) of the Board of Directors of Brocade adopted the 2013 Inducement Award Plan. The objective of the plan is to provide incentives to attract, retain, and motivate eligible persons whose potential contributions are important to promote the success of the Company. | ||
2013 Inducement Award Plan | ||
The 2013 Inducement Award Plan provides for the grant of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, performance shares, and other stock or cash awards to recipients as the Committee may determine. Per the terms of the plan, 2.4 million shares of the Company’s common stock are reserved for issuance under the plan, subject to adjustment for stock dividends, stock splits, or other changes in the Company’s common stock or the Company’s capital structure. In addition, the exercise price of stock options and stock appreciation rights granted under the plan must be at least equal to the fair market value of the Company’s common stock on the date of grant. The term, vesting schedule, and other conditions applicable to grants made under this plan will be established by the Committee at the time of grant. | ||
2009 Stock Plan | ||
The 2009 Stock Plan provides for the grant of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares, and other stock or cash awards to employees, directors and consultants. Per the terms of the 2009 Stock Plan, as amended, 83.0 million shares of the Company’s common stock are reserved for issuance under the plan, plus the following: | ||
• | Any shares subject to stock options or similar awards granted under the Company’s 1999 Stock Plan, 1999 Nonstatutory Stock Option Plan (“NSO Plan”) and 2001 McDATA Equity Incentive Plan that expire or otherwise terminate without having been exercised in full; and | |
• | Shares issued pursuant to awards granted under the Company’s 1999 Stock Plan, 1999 NSO Plan and 2001 McDATA Equity Incentive Plan that are forfeited to or repurchased by the Company, with the maximum number of shares to be added to the 2009 Stock Plan pursuant to this clause equal to 40.3 million shares. | |
2009 Director Plan | ||
The 2009 Director Plan provides for the grant of stock options and restricted stock units to non-employee directors of the Company. The Board of Directors has reserved 2.0 million shares of the Company’s common stock for issuance under the 2009 Director Plan, plus any shares subject to stock options or similar awards granted under the Company’s 1999 Director Option Plan that expire or otherwise terminate without having been exercised in full, and shares issued pursuant to awards granted under the Company’s 1999 Director Option Plan that are forfeited to or repurchased by the Company, with the maximum number of shares to be added to the 2009 Director Plan pursuant to this clause equal to 0.9 million shares. | ||
2009 Employee Stock Purchase Plan | ||
The 2009 ESPP permits eligible employees to purchase shares of the Company’s common stock through payroll deductions for up to 15% of qualified compensation during the offering period. The purchase price is 85% of the lesser of the fair market value of the Company’s common stock on (i) the first trading day of the offering period, or (ii) the last day of each purchase period; provided, however, that the purchase price for subsequent offering periods may be determined by the administrator, subject to compliance with the terms of the 2009 ESPP. A total of 65.0 million shares of the Company’s common stock are reserved for issuance under the 2009 ESPP, as amended. The 2009 ESPP is implemented through consecutive, overlapping offering periods. The offering periods generally start with the first trading day on or after June 1 and December 1 each year and end on the last trading day in the periods ending twenty-four months later, unless the fair market value of the Company’s common stock on the last day of a purchase period is lower than the fair market value of the Company’s common stock on the first trading day of the offering period, in which case the offering period will end early, immediately after the purchase period, and a new offering period will commence on or about such date. Each offering period will be divided into four purchase periods of approximately six months in length. Eligible employees may purchase no more than 3,750 shares of the Company’s common stock during each purchase period. As of October 26, 2013, 27.9 million shares were available for issuance under the 2009 ESPP. | ||
1999 Nonstatutory Stock Option Plan | ||
In September 1999, the Board of Directors approved the Company’s 1999 NSO Plan. The 1999 NSO Plan provides for the grant of nonstatutory stock options to employees and consultants. A total of 51.4 million shares of the Company’s common stock have been reserved for issuance under the 1999 NSO Plan. As of October 26, 2013, the Company has reserved 0.2 million shares of authorized but unissued shares of common stock for future issuance upon exercise of options under the 1999 NSO Plan. | ||
McDATA Equity Plans | ||
On January 29, 2007, effective upon the consummation of the merger, Brocade assumed the McDATA equity plans. As of October 26, 2013, options to purchase approximately 0.8 million shares of converted common stock, restricted stock and other equity awards remained outstanding under former McDATA equity plans. | ||
Summary of Equity Compensation Plans | ||
The Company may grant stock options, restricted stock awards and restricted stock units for shares of the Company’s common stock and other types of equity compensation awards to its employees and directors under the various equity compensation plans described above. In accordance with the terms of the 2009 Stock Plan and the 2009 Director Plan, each award granted with an exercise price that is less than fair market value, which includes all grants of restricted stock awards, restricted stock units, performance shares and performance units, will count against the applicable plan’s share reserve as 1.56 shares for every one share subject to such award. In addition, the exercise price of stock options and stock appreciation rights granted under the 2009 Stock Plan must be at least equal to the fair market value of the Company’s common stock on the date of grant and the exercise price of incentive stock options granted to any participant who owns more than 10% of the total voting power of all classes of the Company’s outstanding stock must be at least 110% of the fair market value of the Company’s common stock on the date of grant. | ||
The term of a stock option and a stock appreciation right may not exceed seven years, except that, with respect to any participant who owns 10% of the voting power of all classes of the Company’s outstanding capital stock, the term of an incentive stock option may not exceed five years. The majority of the stock options, restricted stock awards and restricted stock units granted under the Company’s equity compensation plans vest over a period of three to four years. Certain options and awards granted under the 2009 Stock Plan vest over shorter or longer periods. | ||
As of October 26, 2013, and October 27, 2012, approximately 90.6 million and 126.7 million shares, respectively, were authorized for future issuance under the Company’s equity compensation plans, which include stock options, shares to be issued pursuant to the 2009 ESPP, restricted stock units and other awards, and shares of Brocade common stock that became issuable in connection with the assumption or substitution of Foundry equity awards. A total of 56.8 million shares and 76.0 million shares of common stock were available for grant under the Company’s equity compensation plans as of October 26, 2013, and October 27, 2012, respectively. Awards that expire, or are canceled without delivery of shares, generally become available for issuance under the Company’s equity compensation plans. | ||
Employee 401(k) Plan | ||
The Company sponsors the Brocade Communications Systems, Inc. 401(k) Plan (“401(k) Plan”), which qualifies under Section 401(k) of the Internal Revenue Code and is designed to provide retirement benefits for its eligible employees through tax-deferred salary deductions. | ||
Employees may elect to contribute up to 60% of their eligible compensation to the 401(k) Plan. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Service (“IRS”). The Company matches employee contributions dollar for dollar up to a maximum of $3,000 per calendar year per person. All matching contributions vest immediately. The Company’s matching contributions to the 401(k) Plan totaled $9.2 million, $9.1 million and $9.3 million for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, respectively. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Oct. 26, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
Equity Compensation Plan Information | |||||||||||||||||
The following table summarizes information with respect to shares of the Company’s common stock that may be issued under the Company’s existing equity compensation plans as of October 26, 2013 (in thousands, except per-share amounts): | |||||||||||||||||
Plan Category | A | B | C | ||||||||||||||
Number of Securities | |||||||||||||||||
Remaining Available | |||||||||||||||||
Number of Securities | for Future Issuance | ||||||||||||||||
to be Issued | Weighted-Average | Under Equity | |||||||||||||||
upon Exercise of | Exercise Price of | Compensation Plans | |||||||||||||||
Outstanding Options, | Outstanding Options, | (Excludes Securities | |||||||||||||||
Warrants and Rights | Warrants and Rights | Reflected in Column A) | |||||||||||||||
Equity compensation plans approved by stockholders (1) | 9,686 | (3) | $ | 6.51 | 56,756 | (4) | |||||||||||
Equity compensation plans not approved by stockholders (2) | 2,875 | (5) | $ | 5.12 | — | ||||||||||||
Total | 12,561 | $ | 6.19 | 56,756 | |||||||||||||
(1) | Primarily consist of the 2009 ESPP, the 2009 and 1999 Director Plans, and the 2009 and 1999 Stock Plans. | ||||||||||||||||
(2) | Consist solely of the 1999 NSO Plan described in Note 11, “Employee Compensation Plans,” of the Notes to Consolidated Financial Statements and Foundry’s 2000 NSO Plan, which was assumed in connection with our acquisition of Foundry. | ||||||||||||||||
(3) | Amount excludes purchase rights accrued under the 2009 ESPP. As of October 26, 2013, the 2009 ESPP had a stockholder-approved reserve of 65.0 million shares, of which 27.9 million shares were available for future issuance. | ||||||||||||||||
(4) | Amount consists of shares available for future issuance under the 2009 ESPP, the 2009 Director Plan and the 2009 Stock Plan. | ||||||||||||||||
(5) | A substantial number of shares were granted in the first quarter of fiscal year 2013. Information relating to equity compensation plans is set forth in Note 11, “Employee Compensation Plans,” of the Notes to Consolidated Financial Statements. | ||||||||||||||||
Stock-based compensation expense, net of estimated forfeitures, was included in the following line items on the Consolidated Statements of Income as follows (in thousands): | |||||||||||||||||
Fiscal Year Ended October 26, 2013 | Fiscal Year Ended October 27, 2012 | Fiscal Year Ended October 29, 2011 | |||||||||||||||
Cost of revenues | $ | 14,519 | $ | 15,433 | $ | 15,607 | |||||||||||
Research and development | 17,509 | 17,952 | 18,959 | ||||||||||||||
Sales and marketing | 29,425 | 33,257 | 36,068 | ||||||||||||||
General and administrative | 12,165 | 10,527 | 12,442 | ||||||||||||||
Total stock-based compensation | $ | 73,618 | $ | 77,169 | $ | 83,076 | |||||||||||
The following table presents stock-based compensation expense, net of estimated forfeitures, by grant type (in thousands): | |||||||||||||||||
Fiscal Year Ended October 26, 2013 | Fiscal Year Ended October 27, 2012 | Fiscal Year Ended October 29, 2011 | |||||||||||||||
Stock options | $ | 2,581 | $ | 1,079 | $ | 3,483 | |||||||||||
Restricted stock units (“RSUs”) | 50,522 | 56,791 | 55,750 | ||||||||||||||
Employee stock purchase plan (“ESPP”) | 20,515 | 19,299 | 23,843 | ||||||||||||||
Total stock-based compensation | $ | 73,618 | $ | 77,169 | $ | 83,076 | |||||||||||
The following table presents unrecognized compensation expense, net of estimated forfeitures, of the Company’s equity compensation plans as of October 26, 2013, which is expected to be recognized over the following weighted-average periods (in thousands, except for weighted-average period): | |||||||||||||||||
Unrecognized | Weighted- | ||||||||||||||||
Compensation | Average Period | ||||||||||||||||
Expense | (in years) | ||||||||||||||||
Stock options | $ | 3,565 | 1.38 | ||||||||||||||
RSUs | $ | 86,956 | 2.02 | ||||||||||||||
ESPP | $ | 6,270 | 0.88 | ||||||||||||||
Stock Options | |||||||||||||||||
The fair value of each option granted during the respective period is estimated on the date of grant using the Black-Scholes valuation model and the assumptions noted in the following table. The dividend yield reflects that Brocade has not paid any cash dividends since inception. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The expected volatility is based on an equal weighted-average of implied volatilities from traded options of the Company’s common stock and historical volatility of the Company’s common stock. The expected term is based on historical exercise behavior. | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 26, | October 27, | October 29, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Risk-free interest rate | 0.6 - 1.7% | 0.1 - 0.8% | 0.1 - 0.6% | ||||||||||||||
Expected volatility | 39.9 - 44.9% | 48.8 - 56.5% | 50.3 - 61.9% | ||||||||||||||
Expected term (in years) | 5.7 | 4.7 | 3.9 | ||||||||||||||
Compensation expense computed under the fair value method for stock options issued is being amortized under a graded vesting method over the options’ vesting period. A summary of stock option activity under the equity compensation plans for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, is presented as follows: | |||||||||||||||||
Shares | Weighted-Average | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
(in thousands) | Exercise Price | Grant Date Fair Value | Remaining | Intrinsic | |||||||||||||
Contractual Term | Value | ||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||
Outstanding as of October 30, 2010 | 71,666 | $ | 4.82 | 2.58 | $ | 146,199 | |||||||||||
Granted | 243 | 5.47 | $ | 2.23 | |||||||||||||
Exercised | (16,814 | ) | 3.48 | 46,047 | |||||||||||||
Forfeited or expired | (4,330 | ) | 9.03 | ||||||||||||||
Outstanding as of October 29, 2011 | 50,765 | 4.91 | 1.98 | 35,494 | |||||||||||||
Granted | 160 | 5.55 | $ | 2.39 | |||||||||||||
Exercised | (16,993 | ) | 3.39 | 36,498 | |||||||||||||
Forfeited or expired | (4,435 | ) | 7.34 | ||||||||||||||
Outstanding as of October 27, 2012 | 29,497 | 5.43 | 1.61 | 26,077 | |||||||||||||
Granted | 2,875 | 5.64 | $ | 2.34 | |||||||||||||
Exercised | (13,149 | ) | 3.99 | 32,324 | |||||||||||||
Forfeited or expired | (6,662 | ) | 6.9 | ||||||||||||||
Outstanding as of October 26, 2013 | 12,561 | 6.19 | 2.37 | 24,784 | |||||||||||||
Vested and expected to vest as of October 26, 2013 | 12,384 | $ | 6.21 | 2.32 | $ | 24,393 | |||||||||||
Exercisable and vested as of: | |||||||||||||||||
26-Oct-13 | 9,586 | $ | 6.37 | 1.2 | $ | 18,300 | |||||||||||
Restricted Stock Units | |||||||||||||||||
A summary of the changes in restricted stock units outstanding under Brocade’s equity compensation plans during the years ended October 26, 2013, October 27, 2012, and October 29, 2011, is presented as follows: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
(in thousands) | Grant Date Fair Value | ||||||||||||||||
Nonvested as of October 30, 2010 | 28,171 | $ | 4.32 | ||||||||||||||
Granted | 12,754 | 5.68 | |||||||||||||||
Vested | (13,434 | ) | 5.82 | ||||||||||||||
Forfeited | (4,010 | ) | 6.37 | ||||||||||||||
Nonvested as of October 29, 2011 | 23,481 | 3.85 | |||||||||||||||
Granted | 11,166 | 4.97 | |||||||||||||||
Vested | (9,597 | ) | 4.82 | ||||||||||||||
Forfeited | (3,054 | ) | 5.92 | ||||||||||||||
Nonvested as of October 27, 2012 | 21,996 | 3.71 | |||||||||||||||
Granted | 11,518 | 5.75 | |||||||||||||||
Vested | (7,401 | ) | 5.69 | ||||||||||||||
Forfeited | (3,352 | ) | 5.39 | ||||||||||||||
Nonvested as of October 26, 2013 | 22,761 | 3.85 | |||||||||||||||
Vested and expected to vest as of October 26, 2013 | 19,565 | $ | 3.85 | ||||||||||||||
Typically, vesting of restricted stock units occurs over one to four years and is subject to the employee’s continuing service to Brocade. | |||||||||||||||||
The aggregate intrinsic value of restricted stock units outstanding at October 26, 2013, October 27, 2012, and October 29, 2011, was $178.8 million, $116.6 million and $105.9 million, respectively. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Under Brocade’s employee stock purchase plans, including the 2009 ESPP and the 1999 Employee Stock Purchase Plan (together, the “Brocade ESPP”), eligible employees can participate and purchase shares semi-annually at the lower of 85% of the fair market value of the Company’s common stock on (i) the first trading day of the offering period, or (ii) the last day of each six-month purchase period. The Brocade ESPP permits eligible employees to purchase common stock through payroll deductions for up to 15% of qualified compensation. The Company accounts for the Brocade ESPP as a compensatory plan and compensation expense is being amortized under a graded vesting method over the twenty-four months offering period. In addition, the Company accounts for changes in percentage contribution elected by employees, as well as decreases in the Company’s common stock price on the last day of each six-month purchase period as compared to the common stock price on the first trading day of the offering period, by applying modification accounting which results in an increase in compensation expense during the period of modification. | |||||||||||||||||
The fair value of the option component of Brocade ESPP shares was estimated using the Black-Scholes option pricing model using the following weighted-average assumptions: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 26, | October 27, | October 29, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Risk-free interest rate | 0.2 | % | 0.2 | % | 0.6 | % | |||||||||||
Expected volatility | 39.5 | % | 52.5 | % | 65.5 | % | |||||||||||
Expected term (in years) | 1.3 | 1.5 | 1.1 | ||||||||||||||
Loss_On_Sale_Of_Subsidiary
Loss On Sale Of Subsidiary | 12 Months Ended |
Oct. 26, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Loss On Sale Of Subsidiary | ' |
Loss on Sale of Subsidiary | |
In August 2011, the Company committed to a plan to exit a portion of its Global Services business through the sale of Strategic Business Systems, Inc. (“SBS”), its wholly-owned subsidiary, and signed a Stock Purchase Agreement to sell SBS to investors led by the former Managing Director of SBS. The sale was completed in September 2011 to enable the Company’s Global Services organization to focus on the execution of strategic and core offerings such as support and service for the Company’s products as well as professional consulting. | |
SBS’ assets and liabilities were classified as held for sale in the fourth quarter of fiscal year 2011 as a result of the Company’s commitment and actions. The net carrying amount of SBS’ assets and liabilities classified as held for sale was $16.2 million, comprising primarily of intangible assets of $11.1 million. Upon classifying the SBS assets as held for sale, the Company recognized an expected loss on disposal of $11.1 million, reducing the carrying amount of the SBS intangible assets to their fair value less costs to sell. Additionally, when the sale was completed, the Company wrote off $1.7 million of the associated Global Services goodwill, resulting in a total loss of $12.8 million, which is presented in the Company’s consolidated statements of income as “Loss on sale of subsidiary.” |
Other_Income_Loss_net
Other Income (Loss), net | 12 Months Ended |
Oct. 26, 2013 | |
Other Income and Expenses [Abstract] | ' |
Other Income (Loss), net | ' |
Other Income (Loss), net | |
On May 20, 2013, Brocade and A10 Networks, Inc. (“A10”) reached an agreement to settle both the lawsuit that Brocade filed against A10, A10’s founder and other individuals in the United States District Court for the Northern District of California on August 4, 2010, and the lawsuit that A10 filed against Brocade on September 9, 2011, along with all related claims as described in Note 9, “Commitments and Contingencies - Intellectual Property Litigation,” of the Notes to Consolidated Financial Statements. | |
Among other agreed upon terms, A10 has granted the Company a broad patent license and agreed to pay the Company $5.0 million in cash and issued a $70.0 million unsecured convertible promissory note payable to the Company, which bore interest at 8% per annum. A10 fully paid the unsecured convertible promissory note in the fourth quarter of fiscal year 2013. A10 also has agreed not to use any of the versions of source code that were found to infringe any of Brocade’s copyrights, patents or trade secrets, except as necessary to service prior versions of product already sold to and in the possession of A10’s customers. In addition, the settlement provides certain mutual covenants not to sue for various periods of time and certain general releases. | |
Based on the fair value of the consideration received as a result of this settlement, the Company recognized a gain of $76.8 million in the third quarter of fiscal year 2013, which is reported within “Other income (loss), net” in the Consolidated Statements of Income for the fiscal year ended October 26, 2013. | |
The current and non-current portion of the $1.8 million in fair value of certain licensing rights granted to the Company as part of the settlement were reported within “Prepaid expenses and other current assets” and “Other assets,” respectively, in the Consolidated Balance Sheet as of October 26, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The domestic and international components of income (loss) before provision for (benefit from) income taxes for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, are presented as follows (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 (1) | ||||||||||
United States | $ | 176,536 | $ | 115,736 | $ | (42,118 | ) | |||||
International | 153,925 | 108,665 | 121,546 | |||||||||
Total | $ | 330,461 | $ | 224,401 | $ | 79,428 | ||||||
(1) | Excludes the impact of repatriation of $200.0 million from offshore operations to the United States. | |||||||||||
The income tax expense (benefit) for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, consisted of the following (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. federal taxes: | ||||||||||||
Current | $ | (13,666 | ) | $ | (11,750 | ) | $ | 774 | ||||
Deferred | 46,313 | 33,981 | 28,111 | |||||||||
Total U.S. federal taxes | 32,647 | 22,231 | 28,885 | |||||||||
State taxes: | ||||||||||||
Current | 8,091 | 613 | 1,250 | |||||||||
Deferred | 78,106 | (2,412 | ) | (9,187 | ) | |||||||
Total state taxes | 86,197 | (1,799 | ) | (7,937 | ) | |||||||
Non-U.S. taxes: | ||||||||||||
Current | 2,837 | 8,770 | 7,854 | |||||||||
Deferred | 157 | 18 | 16 | |||||||||
Total non-U.S. taxes | 2,994 | 8,788 | 7,870 | |||||||||
Total | $ | 121,838 | $ | 29,220 | $ | 28,818 | ||||||
The difference between the U.S. Federal statutory income tax rate and the Company’s effective tax rate for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, consisted of the following: | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal tax benefit | 4.1 | 3.8 | 3.3 | |||||||||
Foreign income taxed at other than U.S. rates | (17.6 | ) | (17.7 | ) | (48.2 | ) | ||||||
Stock-based compensation | 1.9 | 3.5 | 11.8 | |||||||||
Research and development credit | (5.6 | ) | (3.5 | ) | (17.6 | ) | ||||||
Permanent items | 0.3 | 0.3 | 1.2 | |||||||||
Change in liabilities for uncertain tax positions | (5.1 | ) | (6.5 | ) | 2.5 | |||||||
Repatriation from offshore operations | — | — | 62.6 | |||||||||
Audit settlement and reinstated tax credit | 1.3 | (2.9 | ) | (11.7 | ) | |||||||
Change in valuation allowance | 23.7 | — | — | |||||||||
Other | (1.1 | ) | 1 | (2.6 | ) | |||||||
Effective tax rate | 36.9 | % | 13 | % | 36.3 | % | ||||||
In general, the Company’s provision for income taxes differs from the tax computed at the U.S. Federal statutory income tax rate due to state taxes, the effect of non-U.S. operations, non-deductible stock-based compensation expense and adjustments to unrecognized tax benefits. | ||||||||||||
The effective tax rate in fiscal year 2013 is higher than the 35% U.S. Federal statutory rate primarily due to a discrete charge of $78.2 million to reduce previously recognized California deferred tax assets due to California law changes. The effective tax rate in fiscal year 2012 is lower than the 35% U.S. federal statutory rate primarily due to earnings in our subsidiaries outside of the U.S. in jurisdictions where our effective tax rate is lower than in the U.S. Earnings of our subsidiaries outside of the U.S. primarily relate to our European and Asia Pacific businesses, which are headquartered in Switzerland and Singapore, respectively. The effective tax rate in fiscal year 2011 is higher than the 35% U.S. Federal statutory rate primarily due to the repatriation of $200.0 million from our offshore operations, with which we repurchased approximately 46.5 million shares of the Company’s stock. The Company recorded tax expense of $49.7 million related to this one-time cash repatriation to fund the stock repurchase program. | ||||||||||||
As of October 26, 2013, U.S. Federal income taxes and foreign withholding taxes were not provided for on an estimated cumulative total of $525.2 million of undistributed earnings of the Company’s foreign subsidiaries. The Company intends to reinvest current and accumulated earnings of its foreign subsidiaries for expansion of its business operations outside the United States for an indefinite period of time. Our existing cash, cash equivalents and short-term investments totaled $987.0 million as of October 26, 2013. Of this amount, approximately 59% was held by our foreign subsidiaries. If these earnings were distributed to the United States in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, the Company could be subject to additional U.S. income taxes, net of foreign tax credits, and foreign withholding taxes. Determination of the amount of unrecognized deferred income tax liability related to these earnings is not practicable. | ||||||||||||
The components of deferred tax assets and deferred tax liabilities for the years ended October 26, 2013, and October 27, 2012, are presented as follows (in thousands): | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Net operating loss carryforwards | $ | 10,525 | $ | 63,750 | ||||||||
Stock-based compensation expense | 17,664 | 22,582 | ||||||||||
Tax credit carryforwards | 141,975 | 145,688 | ||||||||||
Reserves and accruals | 63,765 | 94,755 | ||||||||||
Capitalized research and development expenditures | 621 | 3,232 | ||||||||||
Net unrealized losses on investments | 396 | 468 | ||||||||||
Gross deferred tax assets | 234,946 | 330,475 | ||||||||||
Less: Valuation allowance | (81,116 | ) | (22,269 | ) | ||||||||
Total deferred tax assets | 153,830 | 308,206 | ||||||||||
Acquired intangibles and goodwill | (22,307 | ) | (50,266 | ) | ||||||||
Fixed assets | (29,878 | ) | (28,110 | ) | ||||||||
Other | (2,042 | ) | (2,116 | ) | ||||||||
Total deferred tax liabilities | (54,227 | ) | (80,492 | ) | ||||||||
Total net deferred tax assets | $ | 99,603 | $ | 227,714 | ||||||||
As of October 26, 2013, the Company believes that sufficient positive evidence exists from historical operations and projections of taxable income in future years to conclude that it is more likely than not that the Company will realize its deferred tax assets except for California deferred tax assets and capital loss carryforwards. Accordingly, the Company applies a valuation allowance to the California deferred tax assets due to the recent change in California law and to capital loss carryforwards due to the limited carryforward periods of these tax assets. | ||||||||||||
As of October 26, 2013, the Company had federal net operating loss carryforwards of $443.6 million, California state net operating loss carryforwards of $57.1 million and other significant state net operating loss carryforwards of approximately $144.0 million. Additionally, the Company had federal tax credit carryforwards of $155.1 million and state tax credit carryforwards of $164.5 million. The federal net operating loss and tax credit carryforwards expire on various dates between fiscal year 2017 through 2033. The state net operating loss and credit carryforwards expire on various dates between fiscal year 2014 through 2033. Under the current tax law, net operating loss and credit carryforwards available to offset future income in any given year may be limited by statute or upon the occurrence of certain events, including significant changes in ownership interests. As a result of the McDATA, Foundry, and Vyatta acquisitions, all of the tax attributes from these companies are subject to an annual limitation, but the Company expects to use a majority of the tax attributes before expiration. | ||||||||||||
The Company applies a recognition threshold and measurement attribute for the financial statement recognition and measurement of an income tax position taken or expected to be taken on a tax return. Recognition of a tax position is determined when it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation process. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. | ||||||||||||
A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits, excluding accrued net interest and penalties, is as follows (in thousands): | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Unrecognized tax benefits, beginning balance | $ | 119,253 | $ | 149,430 | ||||||||
Gross increases for tax positions taken in prior periods | 3,472 | 797 | ||||||||||
Gross decreases for tax positions taken in prior periods | (12,970 | ) | (26,001 | ) | ||||||||
Gross increases for tax positions taken in current period | 14,875 | 6,633 | ||||||||||
Changes due to settlements with taxing authorities | (9,442 | ) | (6,771 | ) | ||||||||
Reductions resulting from lapses of statutes of limitations | (2,709 | ) | (4,835 | ) | ||||||||
Unrecognized tax benefits, ending balance | $ | 112,479 | $ | 119,253 | ||||||||
As of October 26, 2013, the Company had net unrecognized tax benefits of $75.8 million, all of which, if recognized, would result in a reduction of the Company’s effective tax rate. | ||||||||||||
For the fiscal year ended October 26, 2013, the Company recorded an income tax expense of $121.8 million. The tax reported was impacted by a detriment to reduce previously recognized California deferred tax assets as a result of California law changes, partially offset by benefits from reserve release resulting from audit settlements and expired statute of limitations, and an increase in the federal research and development tax credit that was reinstated on January 2, 2013, for two years and made retroactive to January 1, 2012. | ||||||||||||
For the fiscal year ended October 27, 2012, the Company recorded an income tax expense of $29.2 million. The tax reported was impacted by the effect of a decrease in benefit from the federal research and development tax credit which expired on December 31, 2011, offset by discrete benefits from reserve releases of settled tax audits, and the expiration of certain statutes of limitations. | ||||||||||||
The IRS and other tax authorities regularly examine the Company’s income tax returns. The IRS is currently examining fiscal years 2009 and 2010. In addition, the Company is in negotiations with foreign tax authorities to obtain correlative relief on transfer pricing adjustments previously settled with the IRS. The Company believes that reserves for unrecognized tax benefits are adequate for all open tax years. The timing of income tax examinations, as well as the amounts and timing of related settlements, if any, are highly uncertain. The Company believes that before the end of fiscal year 2014, it is reasonably possible that either certain audits will conclude or the statutes of limitations relating to certain income tax examination periods will expire, or both. As such, after the Company reaches settlement with the tax authorities, the Company expects to record a corresponding adjustment to the reserves for unrecognized tax benefits. Taking into consideration the inherent uncertainty as to settlement terms, the timing of payments and the impact of such settlements on other uncertain tax positions, the Company estimates the range of potential decreases in underlying uncertain tax positions is between $0 and $4.0 million in the next twelve months. | ||||||||||||
The Company classifies interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the fiscal year ended October 26, 2013, the Company expensed $0.6 million for net interest and penalties related to income tax liabilities through income tax expense. The total net interest and penalties accrued as of October 26, 2013, was $2.3 million. During the year ended October 27, 2012, the Company expensed $0.5 million for net interest and penalties related to income tax liabilities through income tax expense. The total net interest and penalties accrued as of October 27, 2012, was $2.4 million. | ||||||||||||
Of the total tax detriments resulting from the exercise of employee stock options and employee participation in the Company’s equity compensation plans, the amounts recorded to stockholders’ equity were approximately $1.5 million in fiscal year 2013, $4.8 million in fiscal year 2012 and $5.2 million in fiscal year 2011. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Currently, the Company’s CODM is its Chief Executive Officer. | ||||||||||||||||
Brocade is organized into four operating segments: Storage Area Networking (“SAN”) Products, Global Services, Ethernet Switching & Internet Protocol (“IP”) Routing, and Application Delivery Products (“ADP”). SAN and Global Services are two individually reportable segments, and the other two operating segments, Ethernet Switching & IP Routing and ADP, combine to form a third reportable segment: IP Networking Products. These segments are organized principally by product category. | ||||||||||||||||
The types of products and services from which each reportable segment derives its revenues are as follows: | ||||||||||||||||
• | SAN Products include infrastructure products and solutions that assist customers in the development and delivery of storage and server consolidation, disaster recovery and data security, and in meeting compliance issues regarding data management. These products are used to build storage area networks and are generally used in conjunction with servers and storage subsystems, SAN interconnection components such as host bus adapters (“HBAs”), and server and storage management software applications and tools. Brocade’s family of Fibre Channel (“FC”) SAN backbones, directors, fabric and embedded switches provide interconnections, bandwidth and high-speed routing of data between servers and storage devices. Switches and directors support applications such as data backup, remote mirroring and high-availability clustering, as well as high-volume transaction processing applications such as enterprise resource planning and data warehousing. Brocade’s storage networking products also include HBAs, which connect host computers to a FC network. Additionally, Brocade offers a variety of fabric extension, switching and routing solutions; | |||||||||||||||
• | IP Networking Products include Open Systems Interconnection Reference Model (“OSI”) Layer 2 and Layer 3 switches and routers that are designed to connect users in an enterprise network, enabling network connectivity such as access to the Internet, network-based communications, and collaboration through unified messaging applications and mobility. Brocade also offers converged network products, and a portfolio of platforms designed for service provider environments as well as carrier Ethernet products. Additionally, the Company offers OSI Layer 4-7 solutions that are designed for application traffic management and server load balancing; and | |||||||||||||||
• | Global Services include break/fix maintenance, installation, consulting, network management and software maintenance and customer support revenue. | |||||||||||||||
Financial decisions and the allocation of resources are based on the information from the Company’s internal management reporting system. At this point in time, the Company does not track all of its assets by operating segments. The majority of the Company’s assets as of October 26, 2013, October 27, 2012, and October 29, 2011, were attributable to its United States operations. | ||||||||||||||||
Summarized financial information by reportable segment for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, based on the internal management reporting system, is as follows (in thousands): | ||||||||||||||||
SAN | IP Networking | Global Services | Total | |||||||||||||
Products | Products | |||||||||||||||
Fiscal Year Ended October 26, 2013 | ||||||||||||||||
Net revenues | $ | 1,318,509 | $ | 552,058 | $ | 352,297 | $ | 2,222,864 | ||||||||
Cost of revenues | 355,388 | 302,974 | 155,623 | 813,985 | ||||||||||||
Gross margin | $ | 963,121 | $ | 249,084 | $ | 196,674 | $ | 1,408,879 | ||||||||
Fiscal Year Ended October 27, 2012 | ||||||||||||||||
Net revenues | $ | 1,356,099 | $ | 534,757 | $ | 346,914 | $ | 2,237,770 | ||||||||
Cost of revenues | 362,608 | 327,248 | 164,895 | 854,751 | ||||||||||||
Gross margin | $ | 993,491 | $ | 207,509 | $ | 182,019 | $ | 1,383,019 | ||||||||
Fiscal Year Ended October 29, 2011 | ||||||||||||||||
Net revenues | $ | 1,237,994 | $ | 551,820 | $ | 357,628 | $ | 2,147,442 | ||||||||
Cost of revenues | 356,013 | 321,183 | 186,712 | 863,908 | ||||||||||||
Gross margin | $ | 881,981 | $ | 230,637 | $ | 170,916 | $ | 1,283,534 | ||||||||
Revenues are attributed to geographic areas based on where the Company’s products are shipped. Geographic revenue and property and equipment information for the years ended October 26, 2013, October 27, 2012, and October 29, 2011 is presented below (in thousands): | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
October 26, | October 27, | October 29, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Net revenues: | ||||||||||||||||
United States | $ | 1,351,242 | $ | 1,414,390 | $ | 1,313,302 | ||||||||||
International | ||||||||||||||||
Europe, the Middle East and Africa (1) | 552,734 | 493,979 | 502,999 | |||||||||||||
Asia Pacific | 181,461 | 186,244 | 212,636 | |||||||||||||
Japan | 97,259 | 99,887 | 75,542 | |||||||||||||
Canada, Central and South America | 40,168 | 43,270 | 42,963 | |||||||||||||
Total international net revenues | 871,622 | 823,380 | 834,140 | |||||||||||||
Total net revenues | $ | 2,222,864 | $ | 2,237,770 | $ | 2,147,442 | ||||||||||
(1) | Includes net revenues of $339.1 million, $259.2 million and $257.5 million for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, respectively, relating to the Netherlands. | |||||||||||||||
Fiscal Year Ended | ||||||||||||||||
October 26, | October 27, | October 29, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Property and equipment, net: | ||||||||||||||||
United States | $ | 457,622 | $ | 500,744 | $ | 515,940 | ||||||||||
International | 15,318 | 18,196 | 16,444 | |||||||||||||
Total property and equipment, net | $ | 472,940 | $ | 518,940 | $ | 532,384 | ||||||||||
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income Per Share | ' | |||||||||||
Net Income Per-Share | ||||||||||||
The following table presents the calculation of basic and diluted net income per-share (in thousands, except per-share amounts): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Basic net income per-share | ||||||||||||
Net income | $ | 208,623 | $ | 195,181 | $ | 50,610 | ||||||
Weighted-average shares used in computing basic net income per-share | 450,516 | 456,629 | 474,259 | |||||||||
Basic net income per-share | $ | 0.46 | $ | 0.43 | $ | 0.11 | ||||||
Diluted net income per-share | ||||||||||||
Net income | $ | 208,623 | $ | 195,181 | $ | 50,610 | ||||||
Weighted-average shares used in computing basic net income per-share | 450,516 | 456,629 | 474,259 | |||||||||
Dilutive potential common shares in the form of stock options | 3,472 | 7,846 | 13,654 | |||||||||
Dilutive potential common shares in the form of other share-based awards | 9,717 | 7,868 | 9,117 | |||||||||
Weighted-average shares used in computing diluted net income per-share | 463,705 | 472,343 | 497,030 | |||||||||
Diluted net income per-share | $ | 0.45 | $ | 0.41 | $ | 0.1 | ||||||
Antidilutive potential common shares in the form of (1) | ||||||||||||
Stock options | 11,868 | 16,402 | 21,905 | |||||||||
Other share-based awards | 167 | 570 | 3,075 | |||||||||
(1) | These amounts are excluded from the computation of diluted net income per-share. |
Guarantor_And_NonGuarantor_Sub
Guarantor And Non-Guarantor Subsidiaries | 12 Months Ended | |||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||
Guarantor And Non-Guarantor Subsidiaries [Abstract] | ' | |||||||||||||||||||
Guarantor And Non-Guarantor Subsidiaries | ' | |||||||||||||||||||
Guarantor and Non-Guarantor Subsidiaries | ||||||||||||||||||||
On January 20, 2010, the Company issued $600.0 million aggregate principal amount of the 2018 Notes and 2020 Notes. In addition, on January 22, 2013, the Company issued $300.0 million aggregate principal amount of the 2023 Notes. The Company’s obligations under the 2023 Notes and the 2020 Notes are, and prior to January 22, 2013, the Company’s obligations under the 2018 Notes were, guaranteed by certain of the Company’s domestic subsidiaries (the “Subsidiary Guarantors”). Each of the Subsidiary Guarantors is 100% owned by the Company and all guarantees are joint and several. The Senior Secured Notes are not guaranteed by certain of the Company’s domestic subsidiaries and all of the Company’s foreign subsidiaries (the “Non-Guarantor Subsidiaries”). | ||||||||||||||||||||
Pursuant to the terms of the Indentures governing the Senior Secured Notes, the guarantees are full and unconditional, but are subject to release under the following circumstances: | ||||||||||||||||||||
• | Upon the sale of the subsidiary or all or substantially all of its assets; | |||||||||||||||||||
• | Upon the discharge of the guarantees under the credit facility and any other debt guaranteed by the applicable subsidiary provided that the credit facility has been paid in full and the applicable series of senior secured notes have an investment grade rating from both Standard & Poor’s and Moody’s; | |||||||||||||||||||
• | Upon designation of the subsidiary as an “unrestricted subsidiary” under the applicable Indenture; | |||||||||||||||||||
• | Upon the merger, consolidation or liquidation of the subsidiary into the Company or another subsidiary guarantor; and | |||||||||||||||||||
• | Upon legal or covenant defeasance or the discharge of the Company’s obligations under the applicable indenture. | |||||||||||||||||||
The guarantees of the 2018 Notes were released on January 22, 2013, upon the discharge of the 2018 Indenture. | ||||||||||||||||||||
Pursuant to the terms of the Indenture governing the 2023 Notes, the guarantees are full and unconditional but are subject to release under the following circumstances: | ||||||||||||||||||||
• | Upon the sale of the subsidiary or all or substantially all of its assets; | |||||||||||||||||||
• | Upon the discharge of the guarantees under the Senior Secured Credit Facility, the 2020 Notes and any other debt guaranteed by the applicable subsidiary; | |||||||||||||||||||
• | Upon the merger, consolidation or liquidation of the subsidiary into the Company or another subsidiary guarantor; and | |||||||||||||||||||
• | Upon legal or covenant defeasance or the discharge of the Company’s obligations under the applicable indenture. | |||||||||||||||||||
Because the guarantees are subject to release under the above described circumstances, they would not be deemed “full and unconditional” for purposes of Rule 3-10 of Regulation S-X. However, as these circumstances are customary, the Company concluded that it may rely on Rule 3-10 of Regulation S-X, as the other requirements of Rule 3-10 have been met. | ||||||||||||||||||||
The following tables present consolidated financial statements for the parent company, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries, respectively. | ||||||||||||||||||||
The following is the consolidated balance sheet as of October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 396,710 | $ | 9,301 | $ | 580,986 | $ | — | $ | 986,997 | ||||||||||
Accounts receivable, net | 159,436 | 328 | 89,834 | — | 249,598 | |||||||||||||||
Inventories | 40,072 | — | 5,272 | — | 45,344 | |||||||||||||||
Intercompany receivables | — | 464,443 | — | (464,443 | ) | — | ||||||||||||||
Other current assets | 127,709 | 7 | 11,395 | 1,753 | 140,864 | |||||||||||||||
Total current assets | 723,927 | 474,079 | 687,487 | (462,690 | ) | 1,422,803 | ||||||||||||||
Property and equipment, net | 457,054 | 567 | 15,319 | — | 472,940 | |||||||||||||||
Investment in subsidiaries | 1,026,247 | — | — | (1,026,247 | ) | — | ||||||||||||||
Other non-current assets | 1,626,031 | 95,624 | 3,993 | — | 1,725,648 | |||||||||||||||
Total assets | $ | 3,833,259 | $ | 570,270 | $ | 706,799 | $ | (1,488,937 | ) | $ | 3,621,391 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 68,190 | $ | 28 | $ | 20,000 | $ | — | $ | 88,218 | ||||||||||
Current portion of long-term debt | 2,996 | — | — | — | 2,996 | |||||||||||||||
Intercompany payables | 409,590 | — | 54,853 | (464,443 | ) | — | ||||||||||||||
Other current liabilities | 335,261 | 7,075 | 125,360 | 1,753 | 469,449 | |||||||||||||||
Total current liabilities | 816,037 | 7,103 | 200,213 | (462,690 | ) | 560,663 | ||||||||||||||
Long-term debt, net of current portion | 596,208 | — | — | — | 596,208 | |||||||||||||||
Other non-current liabilities | 74,201 | — | 43,506 | — | 117,707 | |||||||||||||||
Total liabilities | 1,486,446 | 7,103 | 243,719 | (462,690 | ) | 1,274,578 | ||||||||||||||
Total stockholders’ equity | 2,346,813 | 563,167 | 463,080 | (1,026,247 | ) | 2,346,813 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,833,259 | $ | 570,270 | $ | 706,799 | $ | (1,488,937 | ) | $ | 3,621,391 | |||||||||
The following is the consolidated balance sheet as of October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 284,466 | $ | 680 | $ | 428,080 | $ | — | $ | 713,226 | ||||||||||
Accounts receivable, net | 150,367 | (1,847 | ) | 84,619 | — | 233,139 | ||||||||||||||
Inventories | 55,084 | — | 13,095 | — | 68,179 | |||||||||||||||
Intercompany receivables | — | 478,133 | — | (478,133 | ) | — | ||||||||||||||
Other current assets | 124,690 | 514 | 15,606 | 225 | 141,035 | |||||||||||||||
Total current assets | 614,607 | 477,480 | 541,400 | (477,908 | ) | 1,155,579 | ||||||||||||||
Property and equipment, net | 500,530 | 213 | 18,197 | — | 518,940 | |||||||||||||||
Investment in subsidiaries | 871,157 | — | — | (871,157 | ) | — | ||||||||||||||
Other non-current assets | 1,814,729 | 90,766 | 1,247 | — | 1,906,742 | |||||||||||||||
Total assets | $ | 3,801,023 | $ | 568,459 | $ | 560,844 | $ | (1,349,065 | ) | $ | 3,581,261 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 92,661 | $ | — | $ | 24,689 | $ | — | $ | 117,350 | ||||||||||
Current portion of long-term debt | 2,226 | (249 | ) | — | — | 1,977 | ||||||||||||||
Intercompany payables | 434,981 | — | 43,152 | (478,133 | ) | — | ||||||||||||||
Other current liabilities | 346,959 | 7,628 | 136,329 | 225 | 491,141 | |||||||||||||||
Total current liabilities | 876,827 | 7,379 | 204,170 | (477,908 | ) | 610,468 | ||||||||||||||
Long-term debt, net of current portion | 599,203 | — | — | — | 599,203 | |||||||||||||||
Other non-current liabilities | 89,173 | 2,429 | 44,168 | — | 135,770 | |||||||||||||||
Total liabilities | 1,565,203 | 9,808 | 248,338 | (477,908 | ) | 1,345,441 | ||||||||||||||
Total stockholders’ equity | 2,235,820 | 558,651 | 312,506 | (871,157 | ) | 2,235,820 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,801,023 | $ | 568,459 | $ | 560,844 | $ | (1,349,065 | ) | $ | 3,581,261 | |||||||||
The following is the consolidated statement of operations for the fiscal year ended October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Revenues | $ | 1,347,055 | $ | 4,257 | $ | 871,552 | $ | — | $ | 2,222,864 | ||||||||||
Intercompany revenues | 25,507 | — | 22,123 | (47,630 | ) | — | ||||||||||||||
Total net revenues | 1,372,562 | 4,257 | 893,675 | (47,630 | ) | 2,222,864 | ||||||||||||||
Cost of revenues | 534,699 | 38,991 | 232,807 | 7,488 | 813,985 | |||||||||||||||
Intercompany cost of revenues | (58,050 | ) | — | 105,680 | (47,630 | ) | — | |||||||||||||
Total cost of revenues | 476,649 | 38,991 | 338,487 | (40,142 | ) | 813,985 | ||||||||||||||
Gross margin (loss) | 895,913 | (34,734 | ) | 555,188 | (7,488 | ) | 1,408,879 | |||||||||||||
Operating expenses | 826,239 | 34,175 | 247,470 | (7,488 | ) | 1,100,396 | ||||||||||||||
Intercompany operating expenses (income) | (127,997 | ) | (22,443 | ) | 150,440 | — | — | |||||||||||||
Total operating expenses | 698,242 | 11,732 | 397,910 | (7,488 | ) | 1,100,396 | ||||||||||||||
Income (loss) from operations | 197,671 | (46,466 | ) | 157,278 | — | 308,483 | ||||||||||||||
Other income (expense) | 25,481 | 258 | (3,370 | ) | (391 | ) | 21,978 | |||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 223,152 | (46,208 | ) | 153,908 | (391 | ) | 330,461 | |||||||||||||
Income tax expense | 117,654 | 1,190 | 2,994 | — | 121,838 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 103,516 | — | — | (103,516 | ) | — | ||||||||||||||
Net income (loss) | $ | 209,014 | $ | (47,398 | ) | $ | 150,914 | $ | (103,907 | ) | $ | 208,623 | ||||||||
The following is the consolidated statement of operations for the fiscal year ended October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Revenues | $ | 1,409,705 | $ | 4,685 | $ | 823,380 | $ | — | $ | 2,237,770 | ||||||||||
Intercompany revenues | 44,152 | — | 21,709 | (65,861 | ) | — | ||||||||||||||
Total net revenues | 1,453,857 | 4,685 | 845,089 | (65,861 | ) | 2,237,770 | ||||||||||||||
Cost of revenues | 559,835 | 49,935 | 234,889 | 10,092 | 854,751 | |||||||||||||||
Intercompany cost of revenues | (35,070 | ) | — | 100,931 | (65,861 | ) | — | |||||||||||||
Total cost of revenues | 524,765 | 49,935 | 335,820 | (55,769 | ) | 854,751 | ||||||||||||||
Gross margin (loss) | 929,092 | (45,250 | ) | 509,269 | (10,092 | ) | 1,383,019 | |||||||||||||
Operating expenses | 827,318 | 56,838 | 231,226 | (10,092 | ) | 1,105,290 | ||||||||||||||
Intercompany operating expenses (income) | (138,197 | ) | (27,319 | ) | 165,516 | — | — | |||||||||||||
Total operating expenses | 689,121 | 29,519 | 396,742 | (10,092 | ) | 1,105,290 | ||||||||||||||
Income (loss) from operations | 239,971 | (74,769 | ) | 112,527 | — | 277,729 | ||||||||||||||
Other income (expense) | (49,470 | ) | 4 | (3,862 | ) | — | (53,328 | ) | ||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 190,501 | (74,765 | ) | 108,665 | — | 224,401 | ||||||||||||||
Income tax expense | 20,432 | — | 8,788 | — | 29,220 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 25,112 | — | — | (25,112 | ) | — | ||||||||||||||
Net income (loss) | $ | 195,181 | $ | (74,765 | ) | $ | 99,877 | $ | (25,112 | ) | $ | 195,181 | ||||||||
The following is the consolidated statement of operations for the fiscal year ended October 29, 2011 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Revenues | $ | 1,285,732 | $ | 27,569 | $ | 834,141 | $ | — | $ | 2,147,442 | ||||||||||
Intercompany revenues | 88,063 | 1,753 | 35,980 | (125,796 | ) | — | ||||||||||||||
Total net revenues | 1,373,795 | 29,322 | 870,121 | (125,796 | ) | 2,147,442 | ||||||||||||||
Cost of revenues | 531,162 | 85,540 | 233,448 | 13,758 | 863,908 | |||||||||||||||
Intercompany cost of revenues | (2,263 | ) | — | 128,059 | (125,796 | ) | — | |||||||||||||
Total cost of revenues | 528,899 | 85,540 | 361,507 | (112,038 | ) | 863,908 | ||||||||||||||
Gross margin (loss) | 844,896 | (56,218 | ) | 508,614 | (13,758 | ) | 1,283,534 | |||||||||||||
Operating expenses | 821,018 | 76,645 | 222,109 | (13,758 | ) | 1,106,014 | ||||||||||||||
Intercompany operating expenses (income) | (138,789 | ) | (25,694 | ) | 164,483 | — | — | |||||||||||||
Total operating expenses | 682,229 | 50,951 | 386,592 | (13,758 | ) | 1,106,014 | ||||||||||||||
Income (loss) from operations | 162,667 | (107,169 | ) | 122,022 | — | 177,520 | ||||||||||||||
Other expense | 109,902 | (7,518 | ) | (200,476 | ) | — | (98,092 | ) | ||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 272,569 | (114,687 | ) | (78,454 | ) | — | 79,428 | |||||||||||||
Income tax expense | 22,115 | 46 | 6,657 | — | 28,818 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | (199,844 | ) | — | — | 199,844 | — | ||||||||||||||
Net income (loss) | $ | 50,610 | $ | (114,733 | ) | $ | (85,111 | ) | $ | 199,844 | $ | 50,610 | ||||||||
The following is the consolidated statement of comprehensive income (loss) for the fiscal year ended October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 209,014 | $ | (47,398 | ) | $ | 150,914 | $ | (103,907 | ) | $ | 208,623 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (1,748 | ) | — | (1,748 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (376 | ) | — | (376 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | — | — | (2,124 | ) | — | (2,124 | ) | |||||||||||||
Foreign currency translation adjustments | 1,021 | (628 | ) | (1,849 | ) | — | (1,456 | ) | ||||||||||||
Total other comprehensive income (loss) | 1,021 | (628 | ) | (3,973 | ) | — | (3,580 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 210,035 | $ | (48,026 | ) | $ | 146,941 | $ | (103,907 | ) | $ | 205,043 | ||||||||
The following is the consolidated statement of comprehensive income (loss) for the fiscal year ended October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 195,181 | $ | (74,765 | ) | $ | 99,877 | $ | (25,112 | ) | $ | 195,181 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (3,468 | ) | — | (3,468 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | 7,433 | — | 7,433 | |||||||||||||||
Net unrealized gains on cash flow hedges | — | — | 3,965 | — | 3,965 | |||||||||||||||
Foreign currency translation adjustments | 128 | 11 | (1,972 | ) | — | (1,833 | ) | |||||||||||||
Total other comprehensive income (loss) | 128 | 11 | 1,993 | — | 2,132 | |||||||||||||||
Total comprehensive income (loss) | $ | 195,309 | $ | (74,754 | ) | $ | 101,870 | $ | (25,112 | ) | $ | 197,313 | ||||||||
The following is the consolidated statement of comprehensive income (loss) for the fiscal year ended October 29, 2011 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 50,610 | $ | (114,733 | ) | $ | (85,111 | ) | $ | 199,844 | $ | 50,610 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | (6,701 | ) | — | 4,870 | — | (1,831 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (6,444 | ) | — | (6,444 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | (6,701 | ) | — | (1,574 | ) | — | (8,275 | ) | ||||||||||||
Foreign currency translation adjustments | (89 | ) | 458 | (1,263 | ) | — | (894 | ) | ||||||||||||
Total other comprehensive income (loss) | (6,790 | ) | 458 | (2,837 | ) | — | (9,169 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 43,820 | $ | (114,275 | ) | $ | (87,948 | ) | $ | 199,844 | $ | 41,441 | ||||||||
The following is the consolidated statement of cash flows for the fiscal year ended October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Net cash provided by operating activities | $ | 281,478 | $ | 8,503 | $ | 161,048 | $ | — | $ | 451,029 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property and equipment | (44,786 | ) | (22 | ) | (7,563 | ) | — | (52,371 | ) | |||||||||||
Net cash paid in connection with acquisition | (44,769 | ) | 140 | — | — | (44,629 | ) | |||||||||||||
Proceeds from collection of convertible note receivable | 70,000 | — | — | — | 70,000 | |||||||||||||||
Net cash provided by (used in) investing activities | (19,555 | ) | 118 | (7,563 | ) | — | (27,000 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from senior unsecured notes | 296,250 | — | — | — | 296,250 | |||||||||||||||
Payment of principal related to senior secured notes | (300,000 | ) | — | — | — | (300,000 | ) | |||||||||||||
Payment of debt issuance costs related to senior unsecured notes | (992 | ) | — | — | — | (992 | ) | |||||||||||||
Payment of principal related to capital leases | (1,627 | ) | — | — | — | (1,627 | ) | |||||||||||||
Common stock repurchases | (240,000 | ) | — | — | — | (240,000 | ) | |||||||||||||
Proceeds from issuance of common stock | 93,771 | — | — | — | 93,771 | |||||||||||||||
Excess tax benefits from stock-based compensation | 2,919 | — | 270 | — | 3,189 | |||||||||||||||
Net cash provided by (used in) financing activities | (149,679 | ) | — | 270 | — | (149,409 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (849 | ) | — | (849 | ) | |||||||||||||
Net increase in cash and cash equivalents | 112,244 | 8,621 | 152,906 | — | 273,771 | |||||||||||||||
Cash and cash equivalents, beginning of period | 284,466 | 680 | 428,080 | — | 713,226 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 396,710 | $ | 9,301 | $ | 580,986 | $ | — | $ | 986,997 | ||||||||||
The following is the consolidated statement of cash flows for the fiscal year ended October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 464,097 | $ | (1,799 | ) | $ | 128,572 | $ | — | $ | 590,870 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from sale of subsidiary | 35 | — | — | — | 35 | |||||||||||||||
Proceeds from maturities and sale of short-term investments | — | 952 | — | — | 952 | |||||||||||||||
Purchases of property and equipment | (62,791 | ) | — | (10,006 | ) | — | (72,797 | ) | ||||||||||||
Net cash provided by (used in) investing activities | (62,756 | ) | 952 | (10,006 | ) | — | (71,810 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payment of principal related to the term loan | (190,000 | ) | — | — | — | (190,000 | ) | |||||||||||||
Payment of principal related to capital leases | (1,866 | ) | — | — | — | (1,866 | ) | |||||||||||||
Common stock repurchases | (130,209 | ) | — | — | — | (130,209 | ) | |||||||||||||
Proceeds from issuance of common stock | 98,791 | — | — | — | 98,791 | |||||||||||||||
Excess tax benefits from stock-based compensation | 5,042 | — | 99 | — | 5,141 | |||||||||||||||
Net cash provided by (used in) financing activities | (218,242 | ) | — | 99 | — | (218,143 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (1,893 | ) | — | (1,893 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 183,099 | (847 | ) | 116,772 | — | 299,024 | ||||||||||||||
Cash and cash equivalents, beginning of period | 101,367 | 1,527 | 311,308 | — | 414,202 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 284,466 | $ | 680 | $ | 428,080 | $ | — | $ | 713,226 | ||||||||||
The following is the consolidated statement of cash flows for the fiscal year ended October 29, 2011 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 436,714 | $ | (5,852 | ) | $ | 18,370 | $ | — | $ | 449,232 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of short-term investments | — | (38 | ) | — | — | (38 | ) | |||||||||||||
Proceeds from maturities and sale of short-term investments | — | 1,604 | — | — | 1,604 | |||||||||||||||
Purchases of property and equipment | (86,447 | ) | (33 | ) | (10,317 | ) | — | (96,797 | ) | |||||||||||
Proceeds from sale of subsidiary | 4,966 | (1,061 | ) | — | — | 3,905 | ||||||||||||||
Net cash provided by (used in) investing activities | (81,481 | ) | 472 | (10,317 | ) | — | (91,326 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payment of principal related to the term loan | (359,898 | ) | — | — | — | (359,898 | ) | |||||||||||||
Payment of fees related to the term loan | (1,167 | ) | — | — | — | (1,167 | ) | |||||||||||||
Proceeds from term loan | 198,950 | — | — | — | 198,950 | |||||||||||||||
Payment of principal related to capital leases | (1,761 | ) | — | — | — | (1,761 | ) | |||||||||||||
Common stock repurchases | (210,698 | ) | — | — | — | (210,698 | ) | |||||||||||||
Proceeds from issuance of common stock | 97,152 | — | — | — | 97,152 | |||||||||||||||
Excess tax benefits from stock-based compensation | 101 | — | 211 | — | 312 | |||||||||||||||
Net cash provided by (used in) financing activities | (277,321 | ) | — | 211 | — | (277,110 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (578 | ) | — | (578 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 77,912 | (5,380 | ) | 7,686 | — | 80,218 | ||||||||||||||
Cash and cash equivalents, beginning of period | 23,455 | 6,907 | 303,622 | — | 333,984 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 101,367 | $ | 1,527 | $ | 311,308 | $ | — | $ | 414,202 | ||||||||||
Quarterly_Summary
Quarterly Summary | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Quarterly Financial Information [Text Block] | ' | |||||||||||||||||||||||||||||||
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||||||||||||||||||||||||||||||
QUARTERLY SUMMARY | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
October 26, 2013 | July 27, 2013 (1) | April 27, 2013 | January 26, 2013 | October 27, 2012 | July 28, 2012 | April 28, 2012 | January 28, 2012 | |||||||||||||||||||||||||
(In thousands, except per-share and stock price amounts) | ||||||||||||||||||||||||||||||||
Quarterly Data: | ||||||||||||||||||||||||||||||||
Net revenues | $ | 558,800 | $ | 536,551 | $ | 538,784 | $ | 588,729 | $ | 578,357 | $ | 555,332 | $ | 543,439 | $ | 560,642 | ||||||||||||||||
Gross margin | $ | 362,640 | $ | 338,202 | $ | 334,112 | $ | 373,925 | $ | 360,690 | $ | 340,478 | $ | 337,082 | $ | 344,769 | ||||||||||||||||
Income from operations | $ | 83,650 | $ | 74,363 | $ | 57,179 | $ | 93,291 | $ | 86,320 | $ | 70,221 | $ | 51,769 | $ | 69,419 | ||||||||||||||||
Net income (loss) | $ | 64,233 | $ | 118,696 | $ | 46,949 | $ | (21,255 | ) | $ | 54,001 | $ | 43,300 | $ | 39,296 | $ | 58,584 | |||||||||||||||
Per-share amounts: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.26 | $ | 0.1 | $ | (0.05 | ) | $ | 0.12 | $ | 0.09 | $ | 0.09 | $ | 0.13 | |||||||||||||||
Diluted | $ | 0.14 | $ | 0.26 | $ | 0.1 | $ | (0.05 | ) | $ | 0.11 | $ | 0.09 | $ | 0.08 | $ | 0.12 | |||||||||||||||
Shares used in computing | ||||||||||||||||||||||||||||||||
per-share amounts: | ||||||||||||||||||||||||||||||||
Basic | 444,642 | 449,446 | 453,133 | 454,843 | 459,333 | 457,147 | 457,541 | 452,494 | ||||||||||||||||||||||||
Diluted | 460,237 | 461,344 | 466,919 | 454,843 | 474,213 | 469,571 | 476,848 | 468,738 | ||||||||||||||||||||||||
Sales prices: | ||||||||||||||||||||||||||||||||
High | $ | 8.43 | $ | 6.69 | $ | 6.15 | $ | 5.8 | $ | 6.44 | $ | 5.63 | $ | 6.17 | $ | 6.05 | ||||||||||||||||
Low | $ | 6.28 | $ | 5.14 | $ | 5.38 | $ | 5.17 | $ | 4.83 | $ | 4.18 | $ | 5.19 | $ | 4.15 | ||||||||||||||||
-1 | The quarter ended July 27, 2013, includes the impact of the nonrecurring gain of $76.8 million resulting from the litigation settlement with A10 Networks, Inc. |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | ' | |||||||||||||||
SCHEDULE II | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Fiscal Years Ended October 26, 2013, October 27, 2012, and October 29, 2011 | ||||||||||||||||
Balance at | Additions | Deductions (1) | Balance at | |||||||||||||
Beginning of | Charged to | End of | ||||||||||||||
Period | Revenues | Period | ||||||||||||||
(In thousands) | ||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||
2013 | $ | 833 | $ | 319 | $ | (577 | ) | $ | 575 | |||||||
2012 | $ | 1,388 | $ | 1,482 | $ | (2,037 | ) | $ | 833 | |||||||
2011 | $ | 1,838 | $ | 1,357 | $ | (1,807 | ) | $ | 1,388 | |||||||
Sales allowances: | ||||||||||||||||
2013 | $ | 9,759 | $ | 8,885 | $ | (11,323 | ) | $ | 7,321 | |||||||
2012 | $ | 5,011 | $ | 10,947 | $ | (6,199 | ) | $ | 9,759 | |||||||
2011 | $ | 4,883 | $ | 9,048 | $ | (8,920 | ) | $ | 5,011 | |||||||
(1) | Deductions related to the allowance for doubtful accounts and sales allowances represent amounts written off against the allowance and recoveries. |
Basis_Of_Presentation_Policies
Basis Of Presentation (Policies) | 12 Months Ended |
Oct. 26, 2013 | |
Accounting Policies [Abstract] | ' |
Fiscal Period Policy | ' |
The fiscal year for the Company is the 52 or 53 weeks ending on the last Saturday in October. As is customary for companies that use the 52/53-week convention, every fifth year contains a 53-week year. Fiscal years 2013, 2012 and 2011 were 52-week fiscal years. The Company’s next 53-week fiscal year will be fiscal year 2014 and its next 14-week quarter will be in the second quarter of fiscal year 2014. | |
Consolidation Policy | ' |
The Consolidated Financial Statements include the accounts of Brocade and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Use of Estimates in Preparation of Consolidated Financial Statements | ' |
Use of Estimates in Preparation of Consolidated Financial Statements | |
The preparation of consolidated financial statements and related disclosures in conformity with U.S. generally accepted accounting principles requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, sales allowances and programs, allowance for doubtful accounts, stock-based compensation, purchase price allocations, warranty obligations, inventory valuation and purchase commitments, restructuring costs, commissions, facilities lease losses, impairment of goodwill and intangible assets, litigation, income taxes, and investments. Actual results may differ materially from these estimates. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | |
Oct. 26, 2013 | ||
Accounting Policies [Abstract] | ' | |
Cash and Cash Equivalents, Policy | ' | |
Cash and Cash Equivalents | ||
The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. | ||
Investments and Equity Securities, Policy | ' | |
Investments and Equity Securities | ||
Investment securities with an original maturity of more than three months that mature less than one year from the Consolidated Balance Sheet date are considered short-term investments. Investment securities with an original or remaining maturity of one year or more and which the Company has the ability and intent to hold are considered long-term investments. Investments are classified as available-for-sale and are recorded on the accompanying Consolidated Balance Sheets at fair value. | ||
Unrealized holding gains and losses related to the Company’s investments are included as a separate component of accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets, net of any related tax effect. Realized gains and losses are calculated based on the specific identification method and are included in “Other expense, net” on the Consolidated Statements of Income. | ||
The Company recognizes an impairment charge when the fair values of its investments have fallen below their cost basis and the decline in fair value is assessed to be other-than-temporary. An other-than-temporary impairment is triggered when there is an intent to sell the security, and it is more likely than not that the security will be required to be sold before recovery, or the Company is not expected to recover the entire amortized cost basis of the security. The Company also considers various factors in determining whether to recognize an impairment charge, including the length of time and extent to which the fair value has been less than the cost basis and the financial condition and near-term prospects of the issuer. For impairments involving credit losses, the Company recognizes the credit loss component in earnings and the remainder of the impairment is recorded in accumulated other comprehensive loss. | ||
From time to time the Company makes equity investments in non-publicly traded companies. These investments are included in “Other assets” on the accompanying Consolidated Balance Sheets and are generally accounted for under the cost method as the Company does not have the ability to exercise significant influence over the respective issuer’s operating and financial policies, nor does it have a liquidation preference that is substantive. The Company monitors its investments in non-publicly traded companies for impairment on a quarterly basis and makes appropriate reductions in carrying values when such impairments are determined to be other-than-temporary. Impairment charges are included in “Other expense, net” on the Consolidated Statements of Income. Factors considered in determining an impairment include, but are not limited to, the current business environment including competition and uncertainty of financial condition, going concern considerations such as the rate at which the issuer company utilizes cash and the issuer company’s ability to obtain additional private financing to fulfill its stated business plan, the need for changes to the issuer company’s existing business model due to changing business environments and its ability to successfully implement necessary changes, and comparable valuations. The carrying value of the Company’s equity investments in non-publicly traded companies at October 26, 2013, and October 27, 2012, was $7.7 million and $7.0 million, respectively. | ||
Fair Value of Financial Instruments, Policy | ' | |
Fair Value of Financial Instruments | ||
The fair value of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate cost because of their short maturities. The fair value of the Company’s investments is primarily determined using quoted market prices for those securities or similar financial instruments. | ||
Derivative Financial Instruments, Policy | ' | |
Derivative Financial Instruments | ||
In the normal course of business, the Company is exposed to fluctuations in interest rates and the exchange rates associated with foreign currencies. The derivatives entered into by the Company qualify for and are designated as foreign currency cash flow hedges. | ||
The derivatives are recognized on the Consolidated Balance Sheets at their respective fair values. Changes in fair values of outstanding cash flow hedges that are highly effective are recorded in accumulated other comprehensive loss until earnings are affected by the variability of cash flows of the underlying hedged transaction. In most cases, amounts recorded in accumulated other comprehensive loss will be released to earnings at maturity of the related derivative. The recognition of effective hedge results offsets the gains or losses on the underlying exposure. Cash flows from derivative transactions are classified according to the nature of the risk being hedged. | ||
The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions. This documentation includes linking all derivatives either to specific assets and liabilities on the consolidated balance sheets or specific firm commitments or forecasted transactions. The Company also formally assesses both at the hedge’s inception and on an ongoing basis whether the derivatives used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. | ||
The Company discontinues hedge accounting prospectively when (i) the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including hedged items such as firm commitments or forecasted transactions); (ii) the derivative expires or is sold, terminated or exercised; (iii) it is no longer probable that the forecasted transaction will occur; or (iv) management determines that designating the derivative as a hedging instrument is no longer appropriate. | ||
When the Company discontinues hedge accounting, but it continues to be probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive loss and is reclassified into earnings when the forecasted transaction affects earnings. However, if it is no longer probable that a forecasted transaction will occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gain or loss that was in accumulated other comprehensive loss will be recognized immediately in earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the Consolidated Balance Sheet until maturity and will recognize future changes in the fair value in current period earnings. Any hedge ineffectiveness is recorded in current period earnings within “Other income (loss), net.” Effectiveness is assessed based on the comparison of current forward rates to the rates established on the Company’s hedges. | ||
Inventory, Policy | ' | |
Inventories | ||
Inventories are stated at the lower of cost or market. Inventory costs include material, labor and overhead. The Company records inventory write-downs based on excess and obsolete inventory determined primarily by its forecast of future demand. A majority of the Company’s inventory is located off-site at customers’ hubs, third-party managed service depots and at contract manufacturers’ locations. Cash flows related to the sale of inventories are classified as cash flows from operating activities. | ||
Property and Equipment, Policy | ' | |
Property and Equipment | ||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. An estimated useful life of three years is used for computer equipment and four to seven years is used for software based on the nature of the software purchased. Estimated useful lives of up to four years are used for engineering and other equipment, seven years is used for furniture and an estimated useful life of thirty-nine years is used for buildings. Leasehold improvements are amortized using the straight-line method over the shorter of ten years or the remaining term of the lease. | ||
Interest costs related to major construction projects are capitalized until the asset is ready for service. Capitalized interest is calculated by multiplying the weighted-average interest rate on the Company’s long-term debt by the qualifying construction costs. Interest capitalized may not exceed gross interest expense for the period. As the qualifying asset is moved to the depreciation and amortization pool, the related capitalized interest is also transferred and is amortized over the useful life of the related asset. No interest costs were capitalized during the years ended October 26, 2013, October 27, 2012, and October 29, 2011, since the construction of the Company’s campus project was completed in the third quarter of fiscal year 2010. | ||
Brocade evaluates long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable in accordance with Accounting Standards Codification (“ASC”) 360-10 Property, Plant and Equipment. Brocade assesses the fair value of the assets based on the undiscounted future cash flow the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset plus net proceeds expected to result from the disposition of the asset, if any, are less than the carrying value of the asset. When Brocade identifies an impairment, Brocade reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. | ||
Goodwill and Intangible Assets, Policy | ' | |
Goodwill, Other Indefinite-lived Intangible Assets and Long-lived Intangible Assets | ||
Goodwill and other indefinite-lived intangible assets are generated as a result of business combinations. Our indefinite-lived assets are comprised of acquired in-process research and development (“IPRD”) and goodwill. IPRD is an intangible asset accounted as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. | ||
During the development period, the Company conducts an IPRD impairment test annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that it is more likely than not that IPRD is impaired. Events which might indicate impairment include, but are not limited to, adverse cost factors, deteriorating financial performance, strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on us and our customer base, and/or other relevant events such as changes in management, key personnel, litigations, or customers. | ||
The Company evaluates goodwill on an annual basis during its second fiscal quarter or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the asset’s implied fair value. Events which might indicate impairment include, but are not limited to, strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on the Company’s customer base, material negative changes in relationships with significant customers, and/or a significant decline in the Company’s stock price for a sustained period. | ||
Long-lived intangible assets are carried at cost less accumulated amortization. Amortization is recognized on a straight-line basis over the estimated useful life of the respective asset. The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Examples of such events or circumstances include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of acquired assets or the strategy for the Company’s business, significant negative industry or economic trends, and/or a significant decline in the Company’s stock price for a sustained period. Impairment is recognized based on the difference between the fair value of the asset and its carrying value. For additional discussion, see Note 4, “Goodwill and Intangible Assets,” of the Notes to Consolidated Financial Statements. | ||
Litigation Costs, Policy | ' | |
Litigation Costs | ||
The Company is subject to the possibility of legal actions arising in the ordinary course of business. The Company regularly monitors the status of pending legal actions to evaluate both the magnitude and likelihood of any potential losses. An accrual for these potential losses is made when they are probable and the amount of loss, or possible range of loss, can be reasonably estimated. Legal costs related to such potential losses are expensed as incurred. In addition, recoveries are shown as a reduction in litigation costs in the period in which they are realized. | ||
Concentrations | ' | |
Concentrations | ||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash and cash equivalents are primarily maintained at seven major financial institutions. Deposits held with banks may be redeemed upon demand and may exceed the amount of insurance provided on such deposits. | ||
A majority of the Company’s accounts receivable balance is derived from sales to original equipment manufacturer (“OEM”) partners in the computer storage and server industry. As of October 26, 2013, four customers individually accounted for 18%, 12%, 11% and 11% of total accounts receivable, for a combined total of 52% of total accounts receivable. As of October 27, 2012, three customers individually accounted for 16%, 12% and 10%, of total accounts receivable, for a combined total of 38% of total accounts receivable. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable balances. The Company has established reserves for credit losses, sales allowances, and other allowances. | ||
For the years ended October 26, 2013, October 27, 2012 and October 29, 2011, the same three customers accounted for a combined total of 46% (EMC Corporation (“EMC”) with 18%, Hewlett-Packard Company (“HP”) with 12%, and International Business Machines Corporation (“IBM”) with 16%), 47% (EMC with 16%, HP with 13%, and IBM with 18%) and 43% (EMC with 15%, HP with 13%, and IBM with 15%) of total net revenues, respectively. | ||
The Company currently relies on single and limited sources for multiple key components used in the manufacture of its products. Additionally, the Company relies on multiple contract manufacturers for the production of its products, including Hon Hai Precision Industry Co., Ltd., Accton Wireless Broadband Corporation, Motorola, Inc. and Quanta Computer Incorporated (collectively, the contract manufacturers or “CMs”). Although the Company uses standard parts and components for its products where possible, the Company’s CMs currently purchase, on their behalf, several key components used in the manufacture of products from single or limited supplier sources. | ||
Revenue Recognition, Policy | ' | |
Revenue Recognition | ||
Product revenue. Substantially all of the Company’s products are integrated with software that is essential to the functionality of the equipment. Additionally, the Company provides unspecified software upgrades and enhancements related to the equipment through its maintenance contracts for most of its products. Product revenue is generally recognized when all of the following criteria have been met: | ||
• | Persuasive evidence of an arrangement exists; | |
• | Delivery has occurred; | |
• | The fee is fixed or determinable; and | |
• | Collectability is reasonably assured. | |
For newly introduced products, many of the Company’s large OEM customers require a product qualification period during which the Company’s products are tested and approved by the OEM customers for sale to their customers. Revenue recognition and related cost are deferred for shipments to new OEM customers and for shipments of newly introduced products to existing OEM customers until satisfactory evidence of completion of the product qualification has been received from the OEM customer. In addition, revenue from sales to the Company’s distributor customers is recognized in the same period in which the product is actually sold by the distributor (sell-through). | ||
The Company reduces revenue for estimated sales allowances at the time of shipment and sales programs at the later of revenue recognition or communication of the commitment for sales incentives. Sales allowances are estimated based on historical sales returns. Sales programs are estimated based on approved sales programs versus claims under such sales programs, current trends and the Company’s expectations regarding future activity. In addition, the Company maintains an allowance for doubtful accounts, which is also accounted for as a reduction in revenue. The Company establishes the allowance for doubtful accounts to ensure accounts receivable are not overstated due to uncollectibility. The Company maintains bad debt reserves based upon the analysis of accounts receivable, historical collection patterns, customer concentrations, customer creditworthiness, current economic trends, changes in customer payment terms and practices, and customer communication. The Company records a specific reserve for individual accounts when it becomes aware of a customer’s likely inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. | ||
Multiple-element arrangements. The Company’s multiple-element product offerings include networking hardware with embedded software products and support, which are considered separate units of accounting. For certain of the Company’s products, software and non-software components function together to deliver the tangible products’ essential functionality. | ||
The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, the Company uses its best estimate of selling price for that deliverable. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for each element. | ||
The Company determines VSOE based on its normal pricing and discounting practices for the specific product or service when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. For post-contract customer support (“PCS”), the Company considers stated renewal rates in determining VSOE. | ||
In most instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history. When VSOE cannot be established, the Company attempts to establish the selling price for each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company’s go-to-market strategy differs from that of its peers and its offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. Therefore, the Company is typically unable to determine TPE. | ||
When the Company is unable to establish selling price using VSOE or TPE, the Company uses estimated selling price (“ESP”) in its allocation of the arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. | ||
The Company determines ESP for a product by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. The determination of ESP is made through consultation with and formal approval by the Company’s management, taking into consideration the go-to-market strategy. | ||
The Company regularly reviews VSOE, TPE and ESP and maintains internal controls over the establishment and updates of these estimates. There was no material impact on revenues during the fiscal year ended October 26, 2013 nor does the Company expect a material impact in the near term from changes in VSOE, TPE or ESP. | ||
Services revenue. Services revenue consists of training and maintenance arrangements, including PCS and other professional services. PCS services are offered under renewable, annual fee-based contracts or as part of multiple-element arrangements, and typically include telephone support and upgrades and enhancements to the Company’s operating system software. Revenue related to PCS elements is deferred and recognized ratably over the contractual period. PCS contracts are typically one to three years in length. | ||
Professional services are offered under hourly or fixed fee-based contracts. Professional services revenue is recognized as services are performed. Training revenue is recognized upon completion of the training. | ||
Warranty Expense, Policy | ' | |
Warranty Expense | ||
The Company provides standard warranties on its products ranging from one year to limited lifetime warranties. Estimated future warranty costs are accrued at the time of shipment and charged to cost of revenues based upon historical experience, current trends and the Company’s expectations regarding future experience. | ||
Foreign Currency, Policy | ' | |
Foreign Currency | ||
Assets and liabilities of the Company’s international subsidiaries in which the local currency is the functional currency are translated into U.S. dollars at period-end exchange rates. Income and expenses are translated into U.S. dollars at the average exchange rates during the period. The resulting translation adjustments are included in the Company’s Consolidated Balance Sheets in the stockholders’ equity section as a component of accumulated other comprehensive loss. Foreign exchange gains and losses for assets and liabilities of the Company’s international subsidiaries in which the functional currency is the U.S. dollar are recorded in the Company’s Consolidated Statement of Income. | ||
Software to be Sold, Leased, or Otherwise Marketed, Policy | ' | |
Eligible software development costs are capitalized upon the establishment of technological feasibility, which is defined as being equivalent to completion of a beta-phase working prototype. Total eligible software development costs have not been material to date. | ||
Internal Use Software, Policy | ' | |
Costs related to internally developed software and software purchased for internal use, primarily for implementation and upgrade of the Company’s enterprise-wide integrated business information system, are capitalized and included in “Property and equipment, net.” These costs are being depreciated over the estimated useful lives of four to seven years based on the nature of the software purchased. | ||
Advertising Costs, Policy | ' | |
Advertising Costs | ||
The Company expenses all advertising costs as incurred. Advertising costs were $15.3 million, $17.7 million and $12.1 million for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, respectively. | ||
During the fiscal year ended October 27, 2012, the Company entered into a multi-year arrangement which includes exchanging certain of the Company’s products and services, with the estimated overall fair value of $16.6 million, for advertising services. The Company is accounting for this transaction based on fair values of products and services surrendered and recognized $7.1 million and $0.3 million of gross operating revenue in the fiscal year ended October 26, 2013, and October 27, 2012, respectively. As the advertising has not yet been received, the corresponding $7.4 million advertising prepayment is currently recorded within “Other assets”. | ||
Income Taxes, Policy | ' | |
Income Taxes | ||
The Company recognizes income tax expense for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts, along with net operating loss carryforwards and credit carryforwards. A valuation allowance is recognized to the extent that it is more likely than not that the tax benefits will not be realized. | ||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. For additional discussion, see Note 15, “Income Taxes,” of the Notes to Consolidated Financial Statements. | ||
Computation of Net Income (Loss) per Share, Policy | ' | |
Computation of Net Income per Share | ||
Basic net income per-share is computed using the weighted-average number of common shares outstanding during the period, less shares subject to repurchase. Diluted net income per-share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period that have a dilutive effect on earnings per-share. Potentially dilutive common shares result from the assumed exercise of outstanding stock options, assumed vesting of outstanding restricted stock units and awards and assumed issuance of stock under the employee stock purchase plan, all using the treasury stock method. | ||
Stock-Based Compensation, Policy | ' | |
Stock-Based Compensation | ||
The Company accounts for employee equity awards under the fair value method. Accordingly, the Company measures stock-based compensation at the grant date based on the fair value of the award. The fair values of stock options and the Employee Stock Purchase Plan (“ESPP”) are estimated using the Black-Scholes option pricing model. Estimated compensation cost relating to restricted stock units is based on the fair value of the Company’s common stock on the date of the grant. The Company records stock-based compensation expense over the twenty-four month offering period in connection with shares issued under its ESPP. The compensation expense for stock-based awards is reduced by an estimate for forfeitures and is recognized over the vesting period of the award under a graded vesting method, except for restricted stock units granted by the Company, which are recognized over the expected term of the award under a straight-line vesting method. For additional discussion, see Note 12, “Stock-Based Compensation,” of the Notes to Consolidated Financial Statements. | ||
The Company accounts for the tax effects of share-based payment awards using the alternative transition method, which includes simplified methods to establish the beginning balance of the additional paid-in capital pool (“APIC Pool”) related to the tax effects of employee stock-based compensation and to determine the subsequent impact on the APIC Pool and consolidated statement of cash flows of the tax effects of employee stock-based compensation awards. | ||
Recent Accounting Pronouncements or Updates Recently Adopted or That Are Not Yet Effective, Policy | ' | |
New Accounting Pronouncements or Updates Recently Adopted | ||
In June 2011 and December 2011, the FASB issued updates to ASC 220 Comprehensive Income (“ASC 220”): Presentation of Comprehensive Income. The amendments from these updates increase the prominence of items reported in other comprehensive income and eliminate the option to present components of other comprehensive income as part of the statement of equity. The Company adopted these updates in the first quarter of fiscal year 2013, presenting the required information in the Consolidated Statements of Comprehensive Income. | ||
Recent Accounting Pronouncements or Updates That Are Not Yet Effective | ||
In February 2013, the FASB issued an update to ASC 220: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Under this update, an entity is required to provide information about the amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. This update to ASC 220 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2014. The adoption of this update to ASC 220 will not have an impact on the Company’s financial position, results of operations or cash flows. The Company will include additional information required by this update prospectively starting from the first quarter of fiscal year 2014. | ||
In March 2013, the FASB issued an update to ASC 830 Foreign Currency Matters (“ASC 830”): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. Under this update, an entity is required to release any cumulative translation adjustment into net income when an entity ceases to have a controlling financial interest resulting in the complete or substantially complete liquidation of a subsidiary or group of assets within a foreign entity. This update to ASC 830 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2015. The Company does not expect the adoption of this update to ASC 830 to have a material impact on its financial position, results of operations or cash flows. | ||
In July 2013, the FASB issued an update to ASC 740 Income Taxes (“ASC 740”): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this update, an entity is required to present an unrecognized tax benefit, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that these instances are not available at the reporting date. This update to ASC 740 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2015. The Company does not expect the adoption of this update to ASC 740 to have a material impact on its financial position, results of operations or cash flows. |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets Goodwill And Intangible Assets (Policies) | 12 Months Ended | |
Oct. 26, 2013 | ||
Accounting Policies [Abstract] | ' | |
Goodwill and Intangible Assets, Goodwill Policy | ' | |
The Company conducts its goodwill impairment test annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that the fair value of the reporting unit may be less than its carrying amount. For the annual goodwill impairment test, the Company uses the income approach, the market approach, or a combination thereof, to determine each reporting unit’s fair value. The income approach provides an estimate of fair value based on discounted expected future cash flows (“DCF”). The market approach provides an estimate of fair value using various prices or market multiples applied to the reporting unit’s operating results and then applying an appropriate control premium. For the fiscal year 2013 annual goodwill impairment test, the Company used a combination of approaches to estimate each reporting unit’s fair value. The Company believed that at the time of impairment testing performed in the second fiscal quarter of 2013, the income approach and the market approach were equally representative of a reporting unit’s fair value. | ||
Determining the fair value of a reporting unit or an intangible asset requires judgment and involves the use of significant estimates and assumptions. The Company based its fair value estimates on assumptions it believes to be reasonable, but inherently uncertain. Estimates and assumptions with respect to the determination of the fair value of its reporting units using the income approach include, among other inputs: | ||
• | The Company’s operating forecasts; | |
• | Revenue growth rates; and | |
• | Risk-commensurate discount rates and costs of capital. | |
The Company’s estimates of revenues and costs are based on historical data, various internal estimates and a variety of external sources, and are developed as part of our regular long-range planning process. The control premium used in market or combined approaches is determined by considering control premiums offered as part of the acquisitions that have occurred in the reporting units’ comparable market segments. Based on the results of the annual goodwill impairment analysis performed during the second fiscal quarter of 2013, the Company determined that no impairment needed to be recorded. | ||
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy | ' | |
Acquired in-process research and development (“IPRD”) is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. While accounted as an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that it is more likely than not that IPRD is impaired. If the research and development effort associated with the IPRD is successfully completed, then the IPRD intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. | ||
Goodwill and Intangible Assets, Intangible Assets, Policy | ' | |
Intangible assets other than goodwill are amortized on a straight-line basis over the following estimated remaining useful lives, unless the Company has determined these lives to be indefinite. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Policies) | 12 Months Ended |
Oct. 26, 2013 | |
Accounting Policies [Abstract] | ' |
Fair Value Transfer Policy | ' |
During the fiscal year ended October 26, 2013, the Company had no transfers between levels of the fair value hierarchy of its assets measured at fair value. |
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities Derivative Instruments And Hedging Activities (Policies) | 12 Months Ended |
Oct. 26, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivatives, Methods of Accounting, Hedging Derivatives | ' |
A majority of the Company’s revenue, expense and capital purchasing activities is transacted in U.S. dollars. However, the Company is exposed to foreign currency exchange rate risk inherent in conducting business globally in numerous currencies. The Company is primarily exposed to foreign currency fluctuations related to operating expenses denominated in currencies other than the U.S. dollar, of which the most significant to its operations for the fiscal year ended October 26, 2013, were the Chinese yuan, the euro, the Japanese yen, the Indian rupee, the British pound, the Singapore dollar and the Swiss franc. The Company has established a foreign currency risk management program to protect against the volatility of future cash flows caused by changes in foreign currency exchange rates. This program reduces, but does not always entirely eliminate, the impact of foreign currency exchange rate movements. | |
The Company’s foreign currency risk management program includes foreign currency derivatives with cash flow hedge accounting designation that utilizes foreign currency forward and option contracts to hedge exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S.-dollar-denominated cash flows. These instruments generally have a maturity of less than fifteen months. For these derivatives, the Company reports the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive loss in stockholders’ equity and reclassifies it into earnings in the same period in which the hedged transaction affects earnings. The tax effect allocated to cash flow hedge-related components of other comprehensive income (loss) was not significant for the fiscal years ended October 26, 2013, October 27, 2012, and October 29, 2011. | |
Effective cash flow hedges are reported as a component of accumulated other comprehensive loss. Ineffective cash flow hedges are included in the Company’s net income as part of “Other income (loss), net.” The amount recorded on ineffective cash flow hedges was not significant for the fiscal years ended October 26, 2013, October 27, 2012, and October 29, 2011. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Oct. 26, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Purchase Price Allocation | ' | |||
The following table summarizes the allocation of the purchase price to the fair value of the assets and liabilities acquired (in thousands): | ||||
Assets acquired: | ||||
Cash | $ | 140 | ||
Accounts receivable | 511 | |||
Identifiable intangible assets: | ||||
In-process technology | 21,590 | |||
Customer relationships | 1,080 | |||
Core/developed technology | 1,040 | |||
Non-compete agreements | 810 | |||
Trade name | 460 | |||
Total identifiable intangible assets | 24,980 | |||
Goodwill (1) | 25,681 | |||
Other assets | 1,017 | |||
Total assets acquired | 52,329 | |||
Liabilities assumed: | ||||
Deferred tax liability | 3,475 | |||
Deferred revenue | 1,354 | |||
Accounts payable and other accrued liabilities | 2,731 | |||
Total liabilities assumed | 7,560 | |||
Net assets acquired | $ | 44,769 | ||
(1) | None of the goodwill recognized is expected to be deductible for income tax purposes. |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Intangible Assets and Goodwill | ' | |||||||||||||||
The following table presents a summary of the net carrying value of the Company’s intangible assets (in thousands): | ||||||||||||||||
October 26, | October 27, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
Goodwill | $ | 1,645,437 | $ | 1,624,089 | ||||||||||||
In-process research and development (1) | 21,590 | — | ||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||
Total intangible assets subject to amortization | 18,668 | 109,265 | ||||||||||||||
Total intangible assets | $ | 1,685,695 | $ | 1,733,354 | ||||||||||||
-1 | Acquired in-process research and development (“IPRD”) is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. While accounted as an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that it is more likely than not that IPRD is impaired. If the research and development effort associated with the IPRD is successfully completed, then the IPRD intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. During the fiscal year ended October 26, 2013, the IPRD intangible asset was not amortized due to the current stage of the associated research and development effort, which is expected to be completed in fiscal year 2014. | |||||||||||||||
Schedule Of Goodwill Activity By Reportable Segment | ' | |||||||||||||||
The following table summarizes goodwill activity by reportable segment during the fiscal years ended October 26, 2013 and October 27, 2012 (in thousands): | ||||||||||||||||
SAN | IP Networking | Global | Total | |||||||||||||
Products | Products | Services | ||||||||||||||
Balance at October 29, 2011 | ||||||||||||||||
Goodwill | $ | 176,968 | $ | 1,344,415 | $ | 155,416 | $ | 1,676,799 | ||||||||
Accumulated impairment losses | — | (45,832 | ) | — | (45,832 | ) | ||||||||||
176,968 | 1,298,583 | 155,416 | 1,630,967 | |||||||||||||
Tax and other adjustments (1) | (12 | ) | (6,866 | ) | — | (6,878 | ) | |||||||||
Balance at October 27, 2012 | ||||||||||||||||
Goodwill | 176,956 | 1,337,549 | 155,416 | 1,669,921 | ||||||||||||
Accumulated impairment losses | — | (45,832 | ) | — | (45,832 | ) | ||||||||||
176,956 | 1,291,717 | 155,416 | 1,624,089 | |||||||||||||
Acquisition | — | 25,681 | — | 25,681 | ||||||||||||
Tax and other adjustments (1) | (78 | ) | (4,255 | ) | — | (4,333 | ) | |||||||||
Balance at October 26, 2013 | ||||||||||||||||
Goodwill | 176,878 | 1,358,975 | 155,416 | 1,691,269 | ||||||||||||
Accumulated impairment losses | — | (45,832 | ) | — | (45,832 | ) | ||||||||||
$ | 176,878 | $ | 1,313,143 | $ | 155,416 | $ | 1,645,437 | |||||||||
(1) | The goodwill adjustments were primarily a result of tax benefits from the exercise of stock awards of acquired companies. | |||||||||||||||
Schedule Of Finite-Lived Intangible Assets | ' | |||||||||||||||
The following tables present details of the Company’s finite-lived intangible assets (in thousands, except for weighted-average remaining useful life): | ||||||||||||||||
Gross | Accumulated | Net | Weighted- | |||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
October 26, 2013 | ||||||||||||||||
Trade name | $ | 460 | $ | 110 | $ | 350 | 3.01 | |||||||||
Core/developed technology | 192,340 | 185,254 | 7,086 | 0.35 | ||||||||||||
Customer relationships | 287,090 | 276,473 | 10,617 | 0.51 | ||||||||||||
Non-compete agreements | 810 | 195 | 615 | 3.01 | ||||||||||||
Total finite-lived intangible assets (1) | $ | 480,700 | $ | 462,032 | $ | 18,668 | 0.58 | |||||||||
Gross | Accumulated | Net | Weighted- | |||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
October 27, 2012 | ||||||||||||||||
Trade name | $ | 100 | $ | 97 | $ | 3 | 0.17 | |||||||||
Core/developed technology | 218,845 | 173,070 | 45,775 | 1.14 | ||||||||||||
Customer relationships | 327,765 | 264,278 | 63,487 | 1.16 | ||||||||||||
Total finite-lived intangible assets | $ | 546,710 | $ | 437,445 | $ | 109,265 | 1.16 | |||||||||
(1) | During the fiscal year ended October 26, 2013, $69.4 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. | |||||||||||||||
Schedule Of Amortization Of Intangible Assets Included On Consolidated Statements Of Operations | ' | |||||||||||||||
The following table presents the amortization of finite-lived intangible assets included on the Consolidated Statements of Income (in thousands): | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
October 26, | October 27, | October 29, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Cost of revenues | $ | 39,731 | $ | 46,229 | $ | 57,489 | ||||||||||
Operating expenses | 54,256 | 59,204 | 60,713 | |||||||||||||
Total | $ | 93,987 | $ | 105,433 | $ | 118,202 | ||||||||||
Schedule Of Estimated Future Amortization Of Intangible Assets | ' | |||||||||||||||
The following table presents the estimated future amortization of finite-lived intangible assets as of October 26, 2013 (in thousands): | ||||||||||||||||
Fiscal Year | Estimated | |||||||||||||||
Future | ||||||||||||||||
Amortization | ||||||||||||||||
2014 | $ | 16,994 | ||||||||||||||
2015 | 865 | |||||||||||||||
2016 | 553 | |||||||||||||||
2017 | 238 | |||||||||||||||
2018 | 18 | |||||||||||||||
Total | $ | 18,668 | ||||||||||||||
Restructuring_And_Other_Charge1
Restructuring And Other Charges (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Schedule of Restructuring and Related Costs | ' | |||||||||||||||||||
The following table provides details of the Company’s restructuring and other charges (in thousands): | ||||||||||||||||||||
Fiscal 2013 Fourth Quarter Restructuring Plan | Prior Restructuring Plans | |||||||||||||||||||
Severance | Contract Terminations | Lease Loss | Lease Loss | Total | ||||||||||||||||
and Benefits | and Other | Reserve and Related Costs | Reserve and Related Costs | |||||||||||||||||
Restructuring liabilities at October 29, 2011 | $ | — | $ | — | $ | — | $ | 3,952 | $ | 3,952 | ||||||||||
Cash payments | — | — | — | (1,334 | ) | (1,334 | ) | |||||||||||||
Other adjustments, net | — | — | — | (36 | ) | (36 | ) | |||||||||||||
Restructuring liabilities at October 27, 2012 | — | — | — | 2,582 | 2,582 | |||||||||||||||
Restructuring and other charges | 20,413 | 3,981 | 1,070 | — | 25,464 | |||||||||||||||
Cash payments | (5,197 | ) | (3,565 | ) | (1 | ) | (788 | ) | (9,551 | ) | ||||||||||
Non-cash charges | — | — | (1,069 | ) | — | (1,069 | ) | |||||||||||||
Restructuring liabilities at October 26, 2013 | $ | 15,216 | $ | 416 | $ | — | $ | 1,794 | $ | 17,426 | ||||||||||
Current restructuring liabilities at October 26, 2013 | $ | 15,216 | $ | 416 | $ | — | $ | 786 | $ | 16,418 | ||||||||||
Non-current restructuring liabilities at October 26, 2013 | $ | — | $ | — | $ | — | $ | 1,008 | $ | 1,008 | ||||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Balance Sheet Details [Abstract] | ' | |||||||||||
Schedule of Accounts Receivable | ' | |||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Accounts receivable: | ||||||||||||
Accounts receivable | $ | 257,494 | $ | 243,731 | ||||||||
Allowance for doubtful accounts | (575 | ) | (833 | ) | ||||||||
Sales allowances | (7,321 | ) | (9,759 | ) | ||||||||
Total | $ | 249,598 | $ | 233,139 | ||||||||
Schedule of Inventory | ' | |||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Inventories: | ||||||||||||
Raw materials | $ | 14,048 | $ | 24,240 | ||||||||
Finished goods | 31,296 | 43,939 | ||||||||||
Total | $ | 45,344 | $ | 68,179 | ||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Property and equipment, net: | ||||||||||||
Computer equipment | $ | 16,006 | $ | 17,953 | ||||||||
Software | 57,186 | 39,410 | ||||||||||
Engineering and other equipment (1) | 416,573 | 409,524 | ||||||||||
Furniture and fixtures (1) | 29,029 | 30,516 | ||||||||||
Leasehold improvements | 24,287 | 26,306 | ||||||||||
Land and building | 384,654 | 384,666 | ||||||||||
Subtotal | 927,735 | 908,375 | ||||||||||
Less: Accumulated depreciation and amortization (1), (2) | (454,795 | ) | (389,435 | ) | ||||||||
Total | $ | 472,940 | $ | 518,940 | ||||||||
(1) | Engineering and other equipment, furniture and fixtures and accumulated depreciation and amortization include the following amounts under capital leases as of October 26, 2013, and October 27, 2012 (in thousands): | |||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Cost | $ | 11,925 | $ | 10,613 | ||||||||
Accumulated depreciation | (5,366 | ) | (3,647 | ) | ||||||||
Total | $ | 6,559 | $ | 6,966 | ||||||||
(2) | The following table presents the depreciation of property and equipment included on the Consolidated Statements of Income (in thousands): | |||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation expense | $ | 90,127 | $ | 86,785 | $ | 88,150 | ||||||
Schedule of Capital Leased Assets | ' | |||||||||||
Engineering and other equipment, furniture and fixtures and accumulated depreciation and amortization include the following amounts under capital leases as of October 26, 2013, and October 27, 2012 (in thousands): | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Cost | $ | 11,925 | $ | 10,613 | ||||||||
Accumulated depreciation | (5,366 | ) | (3,647 | ) | ||||||||
Total | $ | 6,559 | $ | 6,966 | ||||||||
Schedule of Accrued Liabilities | ' | |||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Other accrued liabilities: | ||||||||||||
Income taxes payable | $ | 11,081 | $ | 15,079 | ||||||||
Accrued warranty | 8,632 | 14,453 | ||||||||||
Inventory purchase commitments | 4,436 | 4,271 | ||||||||||
Accrued sales programs | 25,752 | 24,801 | ||||||||||
Accrued interest | 10,056 | 12,011 | ||||||||||
Others | 20,382 | 20,670 | ||||||||||
Total | $ | 80,339 | $ | 91,285 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value | ' | |||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of October 26, 2013 were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of October 26, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Inputs | Inputs | ||||||||||||||
Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 431,750 | $ | 431,750 | $ | — | $ | — | ||||||||
Derivative assets | 1,814 | — | 1,814 | — | ||||||||||||
Total assets measured at fair value | $ | 433,564 | $ | 431,750 | $ | 1,814 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 1,441 | $ | — | $ | 1,441 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 1,441 | $ | — | $ | 1,441 | $ | — | ||||||||
(1) | Money market funds are reported within “Cash and cash equivalents” on the Consolidated Balance Sheets. | |||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of October 27, 2012 were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of October 27, 2012 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
For Identical | Inputs | Inputs | ||||||||||||||
Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 308,960 | $ | 308,960 | $ | — | $ | — | ||||||||
Derivative assets | $ | 2,941 | $ | — | $ | 2,941 | $ | — | ||||||||
Total assets measured at fair value | $ | 311,901 | $ | 308,960 | $ | 2,941 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 296 | $ | — | $ | 296 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 296 | $ | — | $ | 296 | $ | — | ||||||||
(1) | Money market funds are reported within “Cash and cash equivalents” on the Consolidated Balance Sheets. |
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||||||||||
The following table provides details of the Company’s long-term debt (in thousands, except years and percentages): | ||||||||||||||||||||
26-Oct-13 | 27-Oct-12 | |||||||||||||||||||
Maturity | Stated Annual Interest Rate | Amount | Effective Interest Rate | Amount | Effective Interest Rate | |||||||||||||||
Senior Secured Notes: | ||||||||||||||||||||
2018 Notes | 2013 | 6.63% | $ | — | — | % | $ | 300,000 | 7.05 | % | ||||||||||
2020 Notes | 2020 | 6.88% | 300,000 | 7.26 | % | 300,000 | 7.26 | % | ||||||||||||
Senior Unsecured Notes: | ||||||||||||||||||||
2023 Notes | 2023 | 4.63% | 300,000 | 4.83 | % | — | — | % | ||||||||||||
Capital lease obligations | 2016 | 5.67% | 4,600 | 5.5 | % | 4,916 | 5.8 | % | ||||||||||||
Total long-term debt | 604,600 | 604,916 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Unamortized discount | 5,396 | 3,736 | ||||||||||||||||||
Current portion of long-term debt | 2,996 | 1,977 | ||||||||||||||||||
Total long-term debt, net of current portion | $ | 596,208 | $ | 599,203 | ||||||||||||||||
Schedule Of Debt Maturities | ' | |||||||||||||||||||
As of October 26, 2013, our aggregate debt maturities based on outstanding principal were as follows (in thousands): | ||||||||||||||||||||
Fiscal Year | Principal | |||||||||||||||||||
Balances | ||||||||||||||||||||
2014 | $ | 2,996 | ||||||||||||||||||
2015 | 1,284 | |||||||||||||||||||
2016 | 320 | |||||||||||||||||||
2017 | — | |||||||||||||||||||
2018 | — | |||||||||||||||||||
Thereafter | 600,000 | |||||||||||||||||||
Total | $ | 604,600 | ||||||||||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Schedule of Rent Expense | ' | |||||||||||
The following table presents the composition of net rent expense included on the Consolidated Statements of Income (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Rent expense | $ | 26,199 | $ | 25,867 | $ | 26,576 | ||||||
Less: Sublease income | (6,834 | ) | (6,606 | ) | (5,643 | ) | ||||||
$ | 19,365 | $ | 19,261 | $ | 20,933 | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||||||
Future minimum lease payments under all non-cancellable operating leases as of October 26, 2013, excluding the contractual sublease income of $22.7 million, are as follows (in thousands): | ||||||||||||
Fiscal Year | Operating | |||||||||||
Leases | ||||||||||||
2014 | $ | 22,253 | ||||||||||
2015 | 17,040 | |||||||||||
2016 | 15,313 | |||||||||||
2017 | 6,889 | |||||||||||
2018 | 2,884 | |||||||||||
Thereafter | 5,876 | |||||||||||
Total minimum lease payments | $ | 70,255 | ||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | |||||||||||
Future minimum lease payments under all non-cancellable capital leases as of October 26, 2013, are as follows (in thousands): | ||||||||||||
Fiscal Year | Capital | |||||||||||
Leases | ||||||||||||
2014 | $ | 3,215 | ||||||||||
2015 | 1,329 | |||||||||||
2016 | 326 | |||||||||||
2017 | — | |||||||||||
Total minimum lease payments | 4,870 | |||||||||||
Less: Amount representing interest | (270 | ) | ||||||||||
Present value of net minimum lease payments | $ | 4,600 | ||||||||||
Schedule Of Accrued Liability For Estimated Future Warranty Costs | ' | |||||||||||
The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty costs during the fiscal years ended October 26, 2013, and October 27, 2012 (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Beginning balance | $ | 14,453 | $ | 11,298 | ||||||||
Liabilities accrued for warranties issued during the period | 4,969 | 5,929 | ||||||||||
Warranty claims paid and used during the period | (8,213 | ) | (575 | ) | ||||||||
Changes in liability for pre-existing warranties during the period | (2,577 | ) | (2,199 | ) | ||||||||
Ending balance | $ | 8,632 | $ | 14,453 | ||||||||
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Schedule Of Net Gains (Losses) Related To The Effective Portion Of Foreign Currency Derivatives | ' | |||||||||||||||
Net gains (losses) relating to the effective portion of foreign currency derivatives recorded in the consolidated statements of income are as follows (in thousands): | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
26-Oct-13 | 27-Oct-12 | 29-Oct-11 | ||||||||||||||
Cost of revenues | $ | 98 | $ | (1,043 | ) | $ | 882 | |||||||||
Research and development | (60 | ) | (1,094 | ) | 496 | |||||||||||
Sales and marketing | 356 | (5,704 | ) | 5,498 | ||||||||||||
General and administrative | 31 | (510 | ) | 416 | ||||||||||||
Total | $ | 425 | $ | (8,351 | ) | $ | 7,292 | |||||||||
Schedule Of Total Gross Notional Amounts, Presented By Currency | ' | |||||||||||||||
Total gross notional amounts, presented by currency, are as follows (in thousands): | ||||||||||||||||
Derivatives Designated | Derivatives Not Designated | |||||||||||||||
as Hedging Instruments | as Hedging Instruments | |||||||||||||||
In United States dollars | October 26, 2013 | October 27, 2012 | October 26, 2013 | October 27, 2012 | ||||||||||||
Euro | $ | 16,012 | $ | 43,357 | $ | 25,478 | $ | — | ||||||||
British pound | 25,053 | 20,499 | — | — | ||||||||||||
Japanese yen | 16,172 | 3,776 | — | 12,068 | ||||||||||||
Indian rupee | 17,444 | 16,046 | — | — | ||||||||||||
Singapore dollar | 12,867 | 12,918 | — | — | ||||||||||||
Swiss franc | 11,066 | 8,575 | — | — | ||||||||||||
Total | $ | 98,614 | $ | 105,171 | $ | 25,478 | $ | 12,068 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 26, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule Of Equity Compensation Plans | ' | ||||||||||||||||
The following table summarizes information with respect to shares of the Company’s common stock that may be issued under the Company’s existing equity compensation plans as of October 26, 2013 (in thousands, except per-share amounts): | |||||||||||||||||
Plan Category | A | B | C | ||||||||||||||
Number of Securities | |||||||||||||||||
Remaining Available | |||||||||||||||||
Number of Securities | for Future Issuance | ||||||||||||||||
to be Issued | Weighted-Average | Under Equity | |||||||||||||||
upon Exercise of | Exercise Price of | Compensation Plans | |||||||||||||||
Outstanding Options, | Outstanding Options, | (Excludes Securities | |||||||||||||||
Warrants and Rights | Warrants and Rights | Reflected in Column A) | |||||||||||||||
Equity compensation plans approved by stockholders (1) | 9,686 | (3) | $ | 6.51 | 56,756 | (4) | |||||||||||
Equity compensation plans not approved by stockholders (2) | 2,875 | (5) | $ | 5.12 | — | ||||||||||||
Total | 12,561 | $ | 6.19 | 56,756 | |||||||||||||
(1) | Primarily consist of the 2009 ESPP, the 2009 and 1999 Director Plans, and the 2009 and 1999 Stock Plans. | ||||||||||||||||
(2) | Consist solely of the 1999 NSO Plan described in Note 11, “Employee Compensation Plans,” of the Notes to Consolidated Financial Statements and Foundry’s 2000 NSO Plan, which was assumed in connection with our acquisition of Foundry. | ||||||||||||||||
(3) | Amount excludes purchase rights accrued under the 2009 ESPP. As of October 26, 2013, the 2009 ESPP had a stockholder-approved reserve of 65.0 million shares, of which 27.9 million shares were available for future issuance. | ||||||||||||||||
(4) | Amount consists of shares available for future issuance under the 2009 ESPP, the 2009 Director Plan and the 2009 Stock Plan. | ||||||||||||||||
(5) | A substantial number of shares were granted in the first quarter of fiscal year 2013. Information relating to equity compensation plans is set forth in Note 11, “Employee Compensation Plans,” of the Notes to Consolidated Financial Statements. | ||||||||||||||||
Stock-Based Compensation Expense Included In Line Items Of Consolidated Statements Of Operations | ' | ||||||||||||||||
Stock-based compensation expense, net of estimated forfeitures, was included in the following line items on the Consolidated Statements of Income as follows (in thousands): | |||||||||||||||||
Fiscal Year Ended October 26, 2013 | Fiscal Year Ended October 27, 2012 | Fiscal Year Ended October 29, 2011 | |||||||||||||||
Cost of revenues | $ | 14,519 | $ | 15,433 | $ | 15,607 | |||||||||||
Research and development | 17,509 | 17,952 | 18,959 | ||||||||||||||
Sales and marketing | 29,425 | 33,257 | 36,068 | ||||||||||||||
General and administrative | 12,165 | 10,527 | 12,442 | ||||||||||||||
Total stock-based compensation | $ | 73,618 | $ | 77,169 | $ | 83,076 | |||||||||||
Stock-Based Compensation Expense By Grant Type | ' | ||||||||||||||||
The following table presents stock-based compensation expense, net of estimated forfeitures, by grant type (in thousands): | |||||||||||||||||
Fiscal Year Ended October 26, 2013 | Fiscal Year Ended October 27, 2012 | Fiscal Year Ended October 29, 2011 | |||||||||||||||
Stock options | $ | 2,581 | $ | 1,079 | $ | 3,483 | |||||||||||
Restricted stock units (“RSUs”) | 50,522 | 56,791 | 55,750 | ||||||||||||||
Employee stock purchase plan (“ESPP”) | 20,515 | 19,299 | 23,843 | ||||||||||||||
Total stock-based compensation | $ | 73,618 | $ | 77,169 | $ | 83,076 | |||||||||||
Stock-Based Compensation, Unrecognized Compensation Expense And Weighted-Average Period | ' | ||||||||||||||||
The following table presents unrecognized compensation expense, net of estimated forfeitures, of the Company’s equity compensation plans as of October 26, 2013, which is expected to be recognized over the following weighted-average periods (in thousands, except for weighted-average period): | |||||||||||||||||
Unrecognized | Weighted- | ||||||||||||||||
Compensation | Average Period | ||||||||||||||||
Expense | (in years) | ||||||||||||||||
Stock options | $ | 3,565 | 1.38 | ||||||||||||||
RSUs | $ | 86,956 | 2.02 | ||||||||||||||
ESPP | $ | 6,270 | 0.88 | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 26, | October 27, | October 29, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Risk-free interest rate | 0.6 - 1.7% | 0.1 - 0.8% | 0.1 - 0.6% | ||||||||||||||
Expected volatility | 39.9 - 44.9% | 48.8 - 56.5% | 50.3 - 61.9% | ||||||||||||||
Expected term (in years) | 5.7 | 4.7 | 3.9 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||||||
A summary of stock option activity under the equity compensation plans for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, is presented as follows: | |||||||||||||||||
Shares | Weighted-Average | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
(in thousands) | Exercise Price | Grant Date Fair Value | Remaining | Intrinsic | |||||||||||||
Contractual Term | Value | ||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||
Outstanding as of October 30, 2010 | 71,666 | $ | 4.82 | 2.58 | $ | 146,199 | |||||||||||
Granted | 243 | 5.47 | $ | 2.23 | |||||||||||||
Exercised | (16,814 | ) | 3.48 | 46,047 | |||||||||||||
Forfeited or expired | (4,330 | ) | 9.03 | ||||||||||||||
Outstanding as of October 29, 2011 | 50,765 | 4.91 | 1.98 | 35,494 | |||||||||||||
Granted | 160 | 5.55 | $ | 2.39 | |||||||||||||
Exercised | (16,993 | ) | 3.39 | 36,498 | |||||||||||||
Forfeited or expired | (4,435 | ) | 7.34 | ||||||||||||||
Outstanding as of October 27, 2012 | 29,497 | 5.43 | 1.61 | 26,077 | |||||||||||||
Granted | 2,875 | 5.64 | $ | 2.34 | |||||||||||||
Exercised | (13,149 | ) | 3.99 | 32,324 | |||||||||||||
Forfeited or expired | (6,662 | ) | 6.9 | ||||||||||||||
Outstanding as of October 26, 2013 | 12,561 | 6.19 | 2.37 | 24,784 | |||||||||||||
Vested and expected to vest as of October 26, 2013 | 12,384 | $ | 6.21 | 2.32 | $ | 24,393 | |||||||||||
Exercisable and vested as of: | |||||||||||||||||
26-Oct-13 | 9,586 | $ | 6.37 | 1.2 | $ | 18,300 | |||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | ' | ||||||||||||||||
The fair value of the option component of Brocade ESPP shares was estimated using the Black-Scholes option pricing model using the following weighted-average assumptions: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 26, | October 27, | October 29, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Risk-free interest rate | 0.2 | % | 0.2 | % | 0.6 | % | |||||||||||
Expected volatility | 39.5 | % | 52.5 | % | 65.5 | % | |||||||||||
Expected term (in years) | 1.3 | 1.5 | 1.1 | ||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||||||
A summary of the changes in restricted stock units outstanding under Brocade’s equity compensation plans during the years ended October 26, 2013, October 27, 2012, and October 29, 2011, is presented as follows: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
(in thousands) | Grant Date Fair Value | ||||||||||||||||
Nonvested as of October 30, 2010 | 28,171 | $ | 4.32 | ||||||||||||||
Granted | 12,754 | 5.68 | |||||||||||||||
Vested | (13,434 | ) | 5.82 | ||||||||||||||
Forfeited | (4,010 | ) | 6.37 | ||||||||||||||
Nonvested as of October 29, 2011 | 23,481 | 3.85 | |||||||||||||||
Granted | 11,166 | 4.97 | |||||||||||||||
Vested | (9,597 | ) | 4.82 | ||||||||||||||
Forfeited | (3,054 | ) | 5.92 | ||||||||||||||
Nonvested as of October 27, 2012 | 21,996 | 3.71 | |||||||||||||||
Granted | 11,518 | 5.75 | |||||||||||||||
Vested | (7,401 | ) | 5.69 | ||||||||||||||
Forfeited | (3,352 | ) | 5.39 | ||||||||||||||
Nonvested as of October 26, 2013 | 22,761 | 3.85 | |||||||||||||||
Vested and expected to vest as of October 26, 2013 | 19,565 | $ | 3.85 | ||||||||||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | |||||||||||
The domestic and international components of income (loss) before provision for (benefit from) income taxes for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, are presented as follows (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 (1) | ||||||||||
United States | $ | 176,536 | $ | 115,736 | $ | (42,118 | ) | |||||
International | 153,925 | 108,665 | 121,546 | |||||||||
Total | $ | 330,461 | $ | 224,401 | $ | 79,428 | ||||||
(1) | Excludes the impact of repatriation of $200.0 million from offshore operations to the United States. | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||
The income tax expense (benefit) for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, consisted of the following (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. federal taxes: | ||||||||||||
Current | $ | (13,666 | ) | $ | (11,750 | ) | $ | 774 | ||||
Deferred | 46,313 | 33,981 | 28,111 | |||||||||
Total U.S. federal taxes | 32,647 | 22,231 | 28,885 | |||||||||
State taxes: | ||||||||||||
Current | 8,091 | 613 | 1,250 | |||||||||
Deferred | 78,106 | (2,412 | ) | (9,187 | ) | |||||||
Total state taxes | 86,197 | (1,799 | ) | (7,937 | ) | |||||||
Non-U.S. taxes: | ||||||||||||
Current | 2,837 | 8,770 | 7,854 | |||||||||
Deferred | 157 | 18 | 16 | |||||||||
Total non-U.S. taxes | 2,994 | 8,788 | 7,870 | |||||||||
Total | $ | 121,838 | $ | 29,220 | $ | 28,818 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
The difference between the U.S. Federal statutory income tax rate and the Company’s effective tax rate for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, consisted of the following: | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal tax benefit | 4.1 | 3.8 | 3.3 | |||||||||
Foreign income taxed at other than U.S. rates | (17.6 | ) | (17.7 | ) | (48.2 | ) | ||||||
Stock-based compensation | 1.9 | 3.5 | 11.8 | |||||||||
Research and development credit | (5.6 | ) | (3.5 | ) | (17.6 | ) | ||||||
Permanent items | 0.3 | 0.3 | 1.2 | |||||||||
Change in liabilities for uncertain tax positions | (5.1 | ) | (6.5 | ) | 2.5 | |||||||
Repatriation from offshore operations | — | — | 62.6 | |||||||||
Audit settlement and reinstated tax credit | 1.3 | (2.9 | ) | (11.7 | ) | |||||||
Change in valuation allowance | 23.7 | — | — | |||||||||
Other | (1.1 | ) | 1 | (2.6 | ) | |||||||
Effective tax rate | 36.9 | % | 13 | % | 36.3 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
The components of deferred tax assets and deferred tax liabilities for the years ended October 26, 2013, and October 27, 2012, are presented as follows (in thousands): | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Net operating loss carryforwards | $ | 10,525 | $ | 63,750 | ||||||||
Stock-based compensation expense | 17,664 | 22,582 | ||||||||||
Tax credit carryforwards | 141,975 | 145,688 | ||||||||||
Reserves and accruals | 63,765 | 94,755 | ||||||||||
Capitalized research and development expenditures | 621 | 3,232 | ||||||||||
Net unrealized losses on investments | 396 | 468 | ||||||||||
Gross deferred tax assets | 234,946 | 330,475 | ||||||||||
Less: Valuation allowance | (81,116 | ) | (22,269 | ) | ||||||||
Total deferred tax assets | 153,830 | 308,206 | ||||||||||
Acquired intangibles and goodwill | (22,307 | ) | (50,266 | ) | ||||||||
Fixed assets | (29,878 | ) | (28,110 | ) | ||||||||
Other | (2,042 | ) | (2,116 | ) | ||||||||
Total deferred tax liabilities | (54,227 | ) | (80,492 | ) | ||||||||
Total net deferred tax assets | $ | 99,603 | $ | 227,714 | ||||||||
Summary of Income Tax Contingencies | ' | |||||||||||
A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits, excluding accrued net interest and penalties, is as follows (in thousands): | ||||||||||||
October 26, | October 27, | |||||||||||
2013 | 2012 | |||||||||||
Unrecognized tax benefits, beginning balance | $ | 119,253 | $ | 149,430 | ||||||||
Gross increases for tax positions taken in prior periods | 3,472 | 797 | ||||||||||
Gross decreases for tax positions taken in prior periods | (12,970 | ) | (26,001 | ) | ||||||||
Gross increases for tax positions taken in current period | 14,875 | 6,633 | ||||||||||
Changes due to settlements with taxing authorities | (9,442 | ) | (6,771 | ) | ||||||||
Reductions resulting from lapses of statutes of limitations | (2,709 | ) | (4,835 | ) | ||||||||
Unrecognized tax benefits, ending balance | $ | 112,479 | $ | 119,253 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Oct. 26, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule Of Financial Information By Reportable Segment | ' | |||||||||||||||
Summarized financial information by reportable segment for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, based on the internal management reporting system, is as follows (in thousands): | ||||||||||||||||
SAN | IP Networking | Global Services | Total | |||||||||||||
Products | Products | |||||||||||||||
Fiscal Year Ended October 26, 2013 | ||||||||||||||||
Net revenues | $ | 1,318,509 | $ | 552,058 | $ | 352,297 | $ | 2,222,864 | ||||||||
Cost of revenues | 355,388 | 302,974 | 155,623 | 813,985 | ||||||||||||
Gross margin | $ | 963,121 | $ | 249,084 | $ | 196,674 | $ | 1,408,879 | ||||||||
Fiscal Year Ended October 27, 2012 | ||||||||||||||||
Net revenues | $ | 1,356,099 | $ | 534,757 | $ | 346,914 | $ | 2,237,770 | ||||||||
Cost of revenues | 362,608 | 327,248 | 164,895 | 854,751 | ||||||||||||
Gross margin | $ | 993,491 | $ | 207,509 | $ | 182,019 | $ | 1,383,019 | ||||||||
Fiscal Year Ended October 29, 2011 | ||||||||||||||||
Net revenues | $ | 1,237,994 | $ | 551,820 | $ | 357,628 | $ | 2,147,442 | ||||||||
Cost of revenues | 356,013 | 321,183 | 186,712 | 863,908 | ||||||||||||
Gross margin | $ | 881,981 | $ | 230,637 | $ | 170,916 | $ | 1,283,534 | ||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | |||||||||||||||
Geographic revenue and property and equipment information for the years ended October 26, 2013, October 27, 2012, and October 29, 2011 is presented below (in thousands): | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
October 26, | October 27, | October 29, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Net revenues: | ||||||||||||||||
United States | $ | 1,351,242 | $ | 1,414,390 | $ | 1,313,302 | ||||||||||
International | ||||||||||||||||
Europe, the Middle East and Africa (1) | 552,734 | 493,979 | 502,999 | |||||||||||||
Asia Pacific | 181,461 | 186,244 | 212,636 | |||||||||||||
Japan | 97,259 | 99,887 | 75,542 | |||||||||||||
Canada, Central and South America | 40,168 | 43,270 | 42,963 | |||||||||||||
Total international net revenues | 871,622 | 823,380 | 834,140 | |||||||||||||
Total net revenues | $ | 2,222,864 | $ | 2,237,770 | $ | 2,147,442 | ||||||||||
(1) | Includes net revenues of $339.1 million, $259.2 million and $257.5 million for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, respectively, relating to the Netherlands. | |||||||||||||||
Fiscal Year Ended | ||||||||||||||||
October 26, | October 27, | October 29, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Property and equipment, net: | ||||||||||||||||
United States | $ | 457,622 | $ | 500,744 | $ | 515,940 | ||||||||||
International | 15,318 | 18,196 | 16,444 | |||||||||||||
Total property and equipment, net | $ | 472,940 | $ | 518,940 | $ | 532,384 | ||||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | |||||||||||
Oct. 26, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule Of Calculation Of Basic And Diluted Net Income (Loss) Per Share | ' | |||||||||||
The following table presents the calculation of basic and diluted net income per-share (in thousands, except per-share amounts): | ||||||||||||
Fiscal Year Ended | ||||||||||||
October 26, | October 27, | October 29, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Basic net income per-share | ||||||||||||
Net income | $ | 208,623 | $ | 195,181 | $ | 50,610 | ||||||
Weighted-average shares used in computing basic net income per-share | 450,516 | 456,629 | 474,259 | |||||||||
Basic net income per-share | $ | 0.46 | $ | 0.43 | $ | 0.11 | ||||||
Diluted net income per-share | ||||||||||||
Net income | $ | 208,623 | $ | 195,181 | $ | 50,610 | ||||||
Weighted-average shares used in computing basic net income per-share | 450,516 | 456,629 | 474,259 | |||||||||
Dilutive potential common shares in the form of stock options | 3,472 | 7,846 | 13,654 | |||||||||
Dilutive potential common shares in the form of other share-based awards | 9,717 | 7,868 | 9,117 | |||||||||
Weighted-average shares used in computing diluted net income per-share | 463,705 | 472,343 | 497,030 | |||||||||
Diluted net income per-share | $ | 0.45 | $ | 0.41 | $ | 0.1 | ||||||
Antidilutive potential common shares in the form of (1) | ||||||||||||
Stock options | 11,868 | 16,402 | 21,905 | |||||||||
Other share-based awards | 167 | 570 | 3,075 | |||||||||
(1) | These amounts are excluded from the computation of diluted net income per-share. |
Guarantor_And_NonGuarantor_Sub1
Guarantor And Non-Guarantor Subsidiaries (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||
Guarantor And Non-Guarantor Subsidiaries [Abstract] | ' | |||||||||||||||||||
Schedule Of Condensed Consolidated Balance Sheet | ' | |||||||||||||||||||
The following is the consolidated balance sheet as of October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 396,710 | $ | 9,301 | $ | 580,986 | $ | — | $ | 986,997 | ||||||||||
Accounts receivable, net | 159,436 | 328 | 89,834 | — | 249,598 | |||||||||||||||
Inventories | 40,072 | — | 5,272 | — | 45,344 | |||||||||||||||
Intercompany receivables | — | 464,443 | — | (464,443 | ) | — | ||||||||||||||
Other current assets | 127,709 | 7 | 11,395 | 1,753 | 140,864 | |||||||||||||||
Total current assets | 723,927 | 474,079 | 687,487 | (462,690 | ) | 1,422,803 | ||||||||||||||
Property and equipment, net | 457,054 | 567 | 15,319 | — | 472,940 | |||||||||||||||
Investment in subsidiaries | 1,026,247 | — | — | (1,026,247 | ) | — | ||||||||||||||
Other non-current assets | 1,626,031 | 95,624 | 3,993 | — | 1,725,648 | |||||||||||||||
Total assets | $ | 3,833,259 | $ | 570,270 | $ | 706,799 | $ | (1,488,937 | ) | $ | 3,621,391 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 68,190 | $ | 28 | $ | 20,000 | $ | — | $ | 88,218 | ||||||||||
Current portion of long-term debt | 2,996 | — | — | — | 2,996 | |||||||||||||||
Intercompany payables | 409,590 | — | 54,853 | (464,443 | ) | — | ||||||||||||||
Other current liabilities | 335,261 | 7,075 | 125,360 | 1,753 | 469,449 | |||||||||||||||
Total current liabilities | 816,037 | 7,103 | 200,213 | (462,690 | ) | 560,663 | ||||||||||||||
Long-term debt, net of current portion | 596,208 | — | — | — | 596,208 | |||||||||||||||
Other non-current liabilities | 74,201 | — | 43,506 | — | 117,707 | |||||||||||||||
Total liabilities | 1,486,446 | 7,103 | 243,719 | (462,690 | ) | 1,274,578 | ||||||||||||||
Total stockholders’ equity | 2,346,813 | 563,167 | 463,080 | (1,026,247 | ) | 2,346,813 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,833,259 | $ | 570,270 | $ | 706,799 | $ | (1,488,937 | ) | $ | 3,621,391 | |||||||||
The following is the consolidated balance sheet as of October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 284,466 | $ | 680 | $ | 428,080 | $ | — | $ | 713,226 | ||||||||||
Accounts receivable, net | 150,367 | (1,847 | ) | 84,619 | — | 233,139 | ||||||||||||||
Inventories | 55,084 | — | 13,095 | — | 68,179 | |||||||||||||||
Intercompany receivables | — | 478,133 | — | (478,133 | ) | — | ||||||||||||||
Other current assets | 124,690 | 514 | 15,606 | 225 | 141,035 | |||||||||||||||
Total current assets | 614,607 | 477,480 | 541,400 | (477,908 | ) | 1,155,579 | ||||||||||||||
Property and equipment, net | 500,530 | 213 | 18,197 | — | 518,940 | |||||||||||||||
Investment in subsidiaries | 871,157 | — | — | (871,157 | ) | — | ||||||||||||||
Other non-current assets | 1,814,729 | 90,766 | 1,247 | — | 1,906,742 | |||||||||||||||
Total assets | $ | 3,801,023 | $ | 568,459 | $ | 560,844 | $ | (1,349,065 | ) | $ | 3,581,261 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 92,661 | $ | — | $ | 24,689 | $ | — | $ | 117,350 | ||||||||||
Current portion of long-term debt | 2,226 | (249 | ) | — | — | 1,977 | ||||||||||||||
Intercompany payables | 434,981 | — | 43,152 | (478,133 | ) | — | ||||||||||||||
Other current liabilities | 346,959 | 7,628 | 136,329 | 225 | 491,141 | |||||||||||||||
Total current liabilities | 876,827 | 7,379 | 204,170 | (477,908 | ) | 610,468 | ||||||||||||||
Long-term debt, net of current portion | 599,203 | — | — | — | 599,203 | |||||||||||||||
Other non-current liabilities | 89,173 | 2,429 | 44,168 | — | 135,770 | |||||||||||||||
Total liabilities | 1,565,203 | 9,808 | 248,338 | (477,908 | ) | 1,345,441 | ||||||||||||||
Total stockholders’ equity | 2,235,820 | 558,651 | 312,506 | (871,157 | ) | 2,235,820 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,801,023 | $ | 568,459 | $ | 560,844 | $ | (1,349,065 | ) | $ | 3,581,261 | |||||||||
Schedule Of Condensed Consolidated Statement Of Income | ' | |||||||||||||||||||
The following is the consolidated statement of operations for the fiscal year ended October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Revenues | $ | 1,347,055 | $ | 4,257 | $ | 871,552 | $ | — | $ | 2,222,864 | ||||||||||
Intercompany revenues | 25,507 | — | 22,123 | (47,630 | ) | — | ||||||||||||||
Total net revenues | 1,372,562 | 4,257 | 893,675 | (47,630 | ) | 2,222,864 | ||||||||||||||
Cost of revenues | 534,699 | 38,991 | 232,807 | 7,488 | 813,985 | |||||||||||||||
Intercompany cost of revenues | (58,050 | ) | — | 105,680 | (47,630 | ) | — | |||||||||||||
Total cost of revenues | 476,649 | 38,991 | 338,487 | (40,142 | ) | 813,985 | ||||||||||||||
Gross margin (loss) | 895,913 | (34,734 | ) | 555,188 | (7,488 | ) | 1,408,879 | |||||||||||||
Operating expenses | 826,239 | 34,175 | 247,470 | (7,488 | ) | 1,100,396 | ||||||||||||||
Intercompany operating expenses (income) | (127,997 | ) | (22,443 | ) | 150,440 | — | — | |||||||||||||
Total operating expenses | 698,242 | 11,732 | 397,910 | (7,488 | ) | 1,100,396 | ||||||||||||||
Income (loss) from operations | 197,671 | (46,466 | ) | 157,278 | — | 308,483 | ||||||||||||||
Other income (expense) | 25,481 | 258 | (3,370 | ) | (391 | ) | 21,978 | |||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 223,152 | (46,208 | ) | 153,908 | (391 | ) | 330,461 | |||||||||||||
Income tax expense | 117,654 | 1,190 | 2,994 | — | 121,838 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 103,516 | — | — | (103,516 | ) | — | ||||||||||||||
Net income (loss) | $ | 209,014 | $ | (47,398 | ) | $ | 150,914 | $ | (103,907 | ) | $ | 208,623 | ||||||||
The following is the consolidated statement of operations for the fiscal year ended October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Revenues | $ | 1,409,705 | $ | 4,685 | $ | 823,380 | $ | — | $ | 2,237,770 | ||||||||||
Intercompany revenues | 44,152 | — | 21,709 | (65,861 | ) | — | ||||||||||||||
Total net revenues | 1,453,857 | 4,685 | 845,089 | (65,861 | ) | 2,237,770 | ||||||||||||||
Cost of revenues | 559,835 | 49,935 | 234,889 | 10,092 | 854,751 | |||||||||||||||
Intercompany cost of revenues | (35,070 | ) | — | 100,931 | (65,861 | ) | — | |||||||||||||
Total cost of revenues | 524,765 | 49,935 | 335,820 | (55,769 | ) | 854,751 | ||||||||||||||
Gross margin (loss) | 929,092 | (45,250 | ) | 509,269 | (10,092 | ) | 1,383,019 | |||||||||||||
Operating expenses | 827,318 | 56,838 | 231,226 | (10,092 | ) | 1,105,290 | ||||||||||||||
Intercompany operating expenses (income) | (138,197 | ) | (27,319 | ) | 165,516 | — | — | |||||||||||||
Total operating expenses | 689,121 | 29,519 | 396,742 | (10,092 | ) | 1,105,290 | ||||||||||||||
Income (loss) from operations | 239,971 | (74,769 | ) | 112,527 | — | 277,729 | ||||||||||||||
Other income (expense) | (49,470 | ) | 4 | (3,862 | ) | — | (53,328 | ) | ||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 190,501 | (74,765 | ) | 108,665 | — | 224,401 | ||||||||||||||
Income tax expense | 20,432 | — | 8,788 | — | 29,220 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 25,112 | — | — | (25,112 | ) | — | ||||||||||||||
Net income (loss) | $ | 195,181 | $ | (74,765 | ) | $ | 99,877 | $ | (25,112 | ) | $ | 195,181 | ||||||||
The following is the consolidated statement of operations for the fiscal year ended October 29, 2011 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Revenues | $ | 1,285,732 | $ | 27,569 | $ | 834,141 | $ | — | $ | 2,147,442 | ||||||||||
Intercompany revenues | 88,063 | 1,753 | 35,980 | (125,796 | ) | — | ||||||||||||||
Total net revenues | 1,373,795 | 29,322 | 870,121 | (125,796 | ) | 2,147,442 | ||||||||||||||
Cost of revenues | 531,162 | 85,540 | 233,448 | 13,758 | 863,908 | |||||||||||||||
Intercompany cost of revenues | (2,263 | ) | — | 128,059 | (125,796 | ) | — | |||||||||||||
Total cost of revenues | 528,899 | 85,540 | 361,507 | (112,038 | ) | 863,908 | ||||||||||||||
Gross margin (loss) | 844,896 | (56,218 | ) | 508,614 | (13,758 | ) | 1,283,534 | |||||||||||||
Operating expenses | 821,018 | 76,645 | 222,109 | (13,758 | ) | 1,106,014 | ||||||||||||||
Intercompany operating expenses (income) | (138,789 | ) | (25,694 | ) | 164,483 | — | — | |||||||||||||
Total operating expenses | 682,229 | 50,951 | 386,592 | (13,758 | ) | 1,106,014 | ||||||||||||||
Income (loss) from operations | 162,667 | (107,169 | ) | 122,022 | — | 177,520 | ||||||||||||||
Other expense | 109,902 | (7,518 | ) | (200,476 | ) | — | (98,092 | ) | ||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 272,569 | (114,687 | ) | (78,454 | ) | — | 79,428 | |||||||||||||
Income tax expense | 22,115 | 46 | 6,657 | — | 28,818 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | (199,844 | ) | — | — | 199,844 | — | ||||||||||||||
Net income (loss) | $ | 50,610 | $ | (114,733 | ) | $ | (85,111 | ) | $ | 199,844 | $ | 50,610 | ||||||||
Schedule Of Condensed Consolidated Statement Of Comprehensive Income | ' | |||||||||||||||||||
The following is the consolidated statement of comprehensive income (loss) for the fiscal year ended October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 209,014 | $ | (47,398 | ) | $ | 150,914 | $ | (103,907 | ) | $ | 208,623 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (1,748 | ) | — | (1,748 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (376 | ) | — | (376 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | — | — | (2,124 | ) | — | (2,124 | ) | |||||||||||||
Foreign currency translation adjustments | 1,021 | (628 | ) | (1,849 | ) | — | (1,456 | ) | ||||||||||||
Total other comprehensive income (loss) | 1,021 | (628 | ) | (3,973 | ) | — | (3,580 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 210,035 | $ | (48,026 | ) | $ | 146,941 | $ | (103,907 | ) | $ | 205,043 | ||||||||
The following is the consolidated statement of comprehensive income (loss) for the fiscal year ended October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 195,181 | $ | (74,765 | ) | $ | 99,877 | $ | (25,112 | ) | $ | 195,181 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (3,468 | ) | — | (3,468 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | 7,433 | — | 7,433 | |||||||||||||||
Net unrealized gains on cash flow hedges | — | — | 3,965 | — | 3,965 | |||||||||||||||
Foreign currency translation adjustments | 128 | 11 | (1,972 | ) | — | (1,833 | ) | |||||||||||||
Total other comprehensive income (loss) | 128 | 11 | 1,993 | — | 2,132 | |||||||||||||||
Total comprehensive income (loss) | $ | 195,309 | $ | (74,754 | ) | $ | 101,870 | $ | (25,112 | ) | $ | 197,313 | ||||||||
The following is the consolidated statement of comprehensive income (loss) for the fiscal year ended October 29, 2011 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 50,610 | $ | (114,733 | ) | $ | (85,111 | ) | $ | 199,844 | $ | 50,610 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | (6,701 | ) | — | 4,870 | — | (1,831 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (6,444 | ) | — | (6,444 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | (6,701 | ) | — | (1,574 | ) | — | (8,275 | ) | ||||||||||||
Foreign currency translation adjustments | (89 | ) | 458 | (1,263 | ) | — | (894 | ) | ||||||||||||
Total other comprehensive income (loss) | (6,790 | ) | 458 | (2,837 | ) | — | (9,169 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 43,820 | $ | (114,275 | ) | $ | (87,948 | ) | $ | 199,844 | $ | 41,441 | ||||||||
Schedule Of Condensed Consolidated Statement Of Cash Flows | ' | |||||||||||||||||||
The following is the consolidated statement of cash flows for the fiscal year ended October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Net cash provided by operating activities | $ | 281,478 | $ | 8,503 | $ | 161,048 | $ | — | $ | 451,029 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property and equipment | (44,786 | ) | (22 | ) | (7,563 | ) | — | (52,371 | ) | |||||||||||
Net cash paid in connection with acquisition | (44,769 | ) | 140 | — | — | (44,629 | ) | |||||||||||||
Proceeds from collection of convertible note receivable | 70,000 | — | — | — | 70,000 | |||||||||||||||
Net cash provided by (used in) investing activities | (19,555 | ) | 118 | (7,563 | ) | — | (27,000 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from senior unsecured notes | 296,250 | — | — | — | 296,250 | |||||||||||||||
Payment of principal related to senior secured notes | (300,000 | ) | — | — | — | (300,000 | ) | |||||||||||||
Payment of debt issuance costs related to senior unsecured notes | (992 | ) | — | — | — | (992 | ) | |||||||||||||
Payment of principal related to capital leases | (1,627 | ) | — | — | — | (1,627 | ) | |||||||||||||
Common stock repurchases | (240,000 | ) | — | — | — | (240,000 | ) | |||||||||||||
Proceeds from issuance of common stock | 93,771 | — | — | — | 93,771 | |||||||||||||||
Excess tax benefits from stock-based compensation | 2,919 | — | 270 | — | 3,189 | |||||||||||||||
Net cash provided by (used in) financing activities | (149,679 | ) | — | 270 | — | (149,409 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (849 | ) | — | (849 | ) | |||||||||||||
Net increase in cash and cash equivalents | 112,244 | 8,621 | 152,906 | — | 273,771 | |||||||||||||||
Cash and cash equivalents, beginning of period | 284,466 | 680 | 428,080 | — | 713,226 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 396,710 | $ | 9,301 | $ | 580,986 | $ | — | $ | 986,997 | ||||||||||
The following is the consolidated statement of cash flows for the fiscal year ended October 27, 2012 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 464,097 | $ | (1,799 | ) | $ | 128,572 | $ | — | $ | 590,870 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from sale of subsidiary | 35 | — | — | — | 35 | |||||||||||||||
Proceeds from maturities and sale of short-term investments | — | 952 | — | — | 952 | |||||||||||||||
Purchases of property and equipment | (62,791 | ) | — | (10,006 | ) | — | (72,797 | ) | ||||||||||||
Net cash provided by (used in) investing activities | (62,756 | ) | 952 | (10,006 | ) | — | (71,810 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payment of principal related to the term loan | (190,000 | ) | — | — | — | (190,000 | ) | |||||||||||||
Payment of principal related to capital leases | (1,866 | ) | — | — | — | (1,866 | ) | |||||||||||||
Common stock repurchases | (130,209 | ) | — | — | — | (130,209 | ) | |||||||||||||
Proceeds from issuance of common stock | 98,791 | — | — | — | 98,791 | |||||||||||||||
Excess tax benefits from stock-based compensation | 5,042 | — | 99 | — | 5,141 | |||||||||||||||
Net cash provided by (used in) financing activities | (218,242 | ) | — | 99 | — | (218,143 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (1,893 | ) | — | (1,893 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 183,099 | (847 | ) | 116,772 | — | 299,024 | ||||||||||||||
Cash and cash equivalents, beginning of period | 101,367 | 1,527 | 311,308 | — | 414,202 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 284,466 | $ | 680 | $ | 428,080 | $ | — | $ | 713,226 | ||||||||||
The following is the consolidated statement of cash flows for the fiscal year ended October 29, 2011 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non- | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Guarantor | Adjustments | |||||||||||||||||
Systems, Inc. | Subsidiaries | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 436,714 | $ | (5,852 | ) | $ | 18,370 | $ | — | $ | 449,232 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of short-term investments | — | (38 | ) | — | — | (38 | ) | |||||||||||||
Proceeds from maturities and sale of short-term investments | — | 1,604 | — | — | 1,604 | |||||||||||||||
Purchases of property and equipment | (86,447 | ) | (33 | ) | (10,317 | ) | — | (96,797 | ) | |||||||||||
Proceeds from sale of subsidiary | 4,966 | (1,061 | ) | — | — | 3,905 | ||||||||||||||
Net cash provided by (used in) investing activities | (81,481 | ) | 472 | (10,317 | ) | — | (91,326 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payment of principal related to the term loan | (359,898 | ) | — | — | — | (359,898 | ) | |||||||||||||
Payment of fees related to the term loan | (1,167 | ) | — | — | — | (1,167 | ) | |||||||||||||
Proceeds from term loan | 198,950 | — | — | — | 198,950 | |||||||||||||||
Payment of principal related to capital leases | (1,761 | ) | — | — | — | (1,761 | ) | |||||||||||||
Common stock repurchases | (210,698 | ) | — | — | — | (210,698 | ) | |||||||||||||
Proceeds from issuance of common stock | 97,152 | — | — | — | 97,152 | |||||||||||||||
Excess tax benefits from stock-based compensation | 101 | — | 211 | — | 312 | |||||||||||||||
Net cash provided by (used in) financing activities | (277,321 | ) | — | 211 | — | (277,110 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (578 | ) | — | (578 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 77,912 | (5,380 | ) | 7,686 | — | 80,218 | ||||||||||||||
Cash and cash equivalents, beginning of period | 23,455 | 6,907 | 303,622 | — | 333,984 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 101,367 | $ | 1,527 | $ | 311,308 | $ | — | $ | 414,202 | ||||||||||
Quarterly_Summary_Tables
Quarterly Summary (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 26, 2013 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||||||||||||||||||
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||||||||||||||||||||||||||||||
QUARTERLY SUMMARY | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
October 26, 2013 | July 27, 2013 (1) | April 27, 2013 | January 26, 2013 | October 27, 2012 | July 28, 2012 | April 28, 2012 | January 28, 2012 | |||||||||||||||||||||||||
(In thousands, except per-share and stock price amounts) | ||||||||||||||||||||||||||||||||
Quarterly Data: | ||||||||||||||||||||||||||||||||
Net revenues | $ | 558,800 | $ | 536,551 | $ | 538,784 | $ | 588,729 | $ | 578,357 | $ | 555,332 | $ | 543,439 | $ | 560,642 | ||||||||||||||||
Gross margin | $ | 362,640 | $ | 338,202 | $ | 334,112 | $ | 373,925 | $ | 360,690 | $ | 340,478 | $ | 337,082 | $ | 344,769 | ||||||||||||||||
Income from operations | $ | 83,650 | $ | 74,363 | $ | 57,179 | $ | 93,291 | $ | 86,320 | $ | 70,221 | $ | 51,769 | $ | 69,419 | ||||||||||||||||
Net income (loss) | $ | 64,233 | $ | 118,696 | $ | 46,949 | $ | (21,255 | ) | $ | 54,001 | $ | 43,300 | $ | 39,296 | $ | 58,584 | |||||||||||||||
Per-share amounts: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.26 | $ | 0.1 | $ | (0.05 | ) | $ | 0.12 | $ | 0.09 | $ | 0.09 | $ | 0.13 | |||||||||||||||
Diluted | $ | 0.14 | $ | 0.26 | $ | 0.1 | $ | (0.05 | ) | $ | 0.11 | $ | 0.09 | $ | 0.08 | $ | 0.12 | |||||||||||||||
Shares used in computing | ||||||||||||||||||||||||||||||||
per-share amounts: | ||||||||||||||||||||||||||||||||
Basic | 444,642 | 449,446 | 453,133 | 454,843 | 459,333 | 457,147 | 457,541 | 452,494 | ||||||||||||||||||||||||
Diluted | 460,237 | 461,344 | 466,919 | 454,843 | 474,213 | 469,571 | 476,848 | 468,738 | ||||||||||||||||||||||||
Sales prices: | ||||||||||||||||||||||||||||||||
High | $ | 8.43 | $ | 6.69 | $ | 6.15 | $ | 5.8 | $ | 6.44 | $ | 5.63 | $ | 6.17 | $ | 6.05 | ||||||||||||||||
Low | $ | 6.28 | $ | 5.14 | $ | 5.38 | $ | 5.17 | $ | 4.83 | $ | 4.18 | $ | 5.19 | $ | 4.15 | ||||||||||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Property and Equipment Narrative) (Details) | 12 Months Ended |
Oct. 26, 2013 | |
Computer equipment | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Software | Minimum | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '4 years |
Software | Maximum | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '7 years |
Engineering and other equipment | Maximum | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '4 years |
Furniture and fixtures | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '7 years |
Leasehold improvements | Maximum | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Building and Building Improvements | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '39 years |
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Concentration of Risk Narrative)(Details) (Customer Concentration Risk) | 12 Months Ended | ||
Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | |
customer | |||
Accounts Receivable | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Number Of Customers Included In Concentration Disclosures | 4 | 3 | ' |
Concentration Risk, Percentage | 52.00% | 38.00% | ' |
Accounts Receivable | Major Customer One | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk, Percentage | 18.00% | 16.00% | ' |
Accounts Receivable | Major Customer Two | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk, Percentage | 12.00% | 12.00% | ' |
Accounts Receivable | Major Customer Three | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk, Percentage | 11.00% | 10.00% | ' |
Accounts Receivable | Major Customer Four | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk, Percentage | 11.00% | ' | ' |
Sales Revenue | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Number Of Customers Included In Concentration Disclosures | 3 | ' | ' |
Concentration Risk, Percentage | 46.00% | 47.00% | 43.00% |
Sales Revenue | EMC Corporation | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk, Percentage | 18.00% | 16.00% | 15.00% |
Sales Revenue | Hewlett Packard Corporation | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk, Percentage | 12.00% | 13.00% | 13.00% |
Sales Revenue | International Business Machines Corporation | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk, Percentage | 16.00% | 18.00% | 15.00% |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Nonmonetary Transactions Narrative) (Details) (Exchange of product held-for-sale for advertising services, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 |
Exchange of product held-for-sale for advertising services | ' | ' |
Nonmonetary Transaction | ' | ' |
Basis of accounting for assets transferred | 'The Company is accounting for this transaction based on fair values of products and services surrendered | ' |
Estimated overall fair value of barter transaction | ' | $16.60 |
Gross operating revenue recognized | 7.1 | 0.3 |
Prepaid advertising | $7.40 | ' |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Advertising expense | $15.30 | $17.70 | $12.10 |
Investments in non-publicly traded companies | $7.70 | $7 | ' |
Acquisitions_Schedule_of_Purch
Acquisitions (Schedule of Purchase Price Allocation) (Details) (Vyatta, USD $) | Nov. 09, 2012 | |
In Thousands, unless otherwise specified | ||
Business Acquisition, Purchase Price Allocation | ' | |
Cash | $140 | |
Accounts receivable | 511 | |
Identifiable intangible assets: | 24,980 | |
Goodwill (1) | 25,681 | [1] |
Other assets | 1,017 | |
Total assets acquired | 52,329 | |
Deferred tax liability | 3,475 | |
Deferred revenue | 1,354 | |
Accounts payable and other accrued liabilities | 2,731 | |
Total liabilities assumed | 7,560 | |
Net assets acquired | 44,769 | |
In-process technology | ' | |
Business Acquisition, Purchase Price Allocation | ' | |
Identifiable intangible assets: | 21,590 | |
Customer relationships | ' | |
Business Acquisition, Purchase Price Allocation | ' | |
Identifiable intangible assets: | 1,080 | |
Core/developed technology | ' | |
Business Acquisition, Purchase Price Allocation | ' | |
Identifiable intangible assets: | 1,040 | |
Non-compete agreements | ' | |
Business Acquisition, Purchase Price Allocation | ' | |
Identifiable intangible assets: | 810 | |
Trade name | ' | |
Business Acquisition, Purchase Price Allocation | ' | |
Identifiable intangible assets: | $460 | |
[1] | None of the goodwill recognized is expected to be deductible for income tax purposes. |
Acquisitions_Acquisitions_Narr
Acquisitions Acquisitions (Narrative) (Details) (Vyatta, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 26, 2013 | Nov. 09, 2012 |
Vyatta | ' | ' |
Business Acquisition | ' | ' |
Effective Date of Acquisition | 9-Nov-12 | ' |
Consideration Paid Held In Escrow, Amount | $7 | ' |
Consideration Paid Held In Escrow, Escrow Duration | '18 months | ' |
Acquisition Cost Expensed | 0.4 | ' |
Goodwill, Expected Tax Deductible Amount | ' | 0 |
Business Combination, Consideration Transferred | ' | ' |
Cash consideration | ' | 43.6 |
Prepaid license fees consideration | ' | 1.2 |
Total purchase price | ' | $44.80 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Schedule of Intangible Assets and Goodwill) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | ||
In Thousands, unless otherwise specified | |||||
Intangible Assets, Net (Including Goodwill) | ' | ' | ' | ||
Goodwill | $1,645,437 | $1,624,089 | $1,630,967 | ||
In-process research and development (1) | 21,590 | [1] | 0 | [1] | ' |
Total intangible assets subject to amortization | 18,668 | [2] | 109,265 | ' | |
Total intangible assets | $1,685,695 | $1,733,354 | ' | ||
[1] | Acquired in-process research and development (“IPRDâ€) is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. While accounted as an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that it is more likely than not that IPRD is impaired. If the research and development effort associated with the IPRD is successfully completed, then the IPRD intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. During the fiscal year ended October 26, 2013, the IPRD intangible asset was not amortized due to the current stage of the associated research and development effort, which is expected to be completed in fiscal year 2014. | ||||
[2] | During the fiscal year ended October 26, 2013, $69.4 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Schedule Of Goodwill Activity By Reportable Segment) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | ||
Goodwill | ' | ' | ||
Goodwill, Gross, Beginning Balance | $1,669,921 | $1,676,799 | ||
Accumulated impairment losses, Beginning Balance | -45,832 | -45,832 | ||
Goodwill, Net, Beginning Balance | 1,624,089 | 1,630,967 | ||
Goodwill, Acquired During Period | 25,681 | ' | ||
Goodwill, Tax and other adjustments | -4,333 | [1] | -6,878 | [1] |
Goodwill, Gross, Ending Balance | 1,691,269 | 1,669,921 | ||
Accumulated impairment losses, Ending Balance | -45,832 | -45,832 | ||
Goodwill, Net, Ending Balance | 1,645,437 | 1,624,089 | ||
SAN Products | ' | ' | ||
Goodwill | ' | ' | ||
Goodwill, Gross, Beginning Balance | 176,956 | 176,968 | ||
Accumulated impairment losses, Beginning Balance | 0 | 0 | ||
Goodwill, Net, Beginning Balance | 176,956 | 176,968 | ||
Goodwill, Acquired During Period | 0 | ' | ||
Goodwill, Tax and other adjustments | -78 | [1] | -12 | [1] |
Goodwill, Gross, Ending Balance | 176,878 | 176,956 | ||
Accumulated impairment losses, Ending Balance | 0 | 0 | ||
Goodwill, Net, Ending Balance | 176,878 | 176,956 | ||
IP Networking Products | ' | ' | ||
Goodwill | ' | ' | ||
Goodwill, Gross, Beginning Balance | 1,337,549 | 1,344,415 | ||
Accumulated impairment losses, Beginning Balance | -45,832 | -45,832 | ||
Goodwill, Net, Beginning Balance | 1,291,717 | 1,298,583 | ||
Goodwill, Acquired During Period | 25,681 | ' | ||
Goodwill, Tax and other adjustments | -4,255 | [1] | -6,866 | [1] |
Goodwill, Gross, Ending Balance | 1,358,975 | 1,337,549 | ||
Accumulated impairment losses, Ending Balance | -45,832 | -45,832 | ||
Goodwill, Net, Ending Balance | 1,313,143 | 1,291,717 | ||
Global Services | ' | ' | ||
Goodwill | ' | ' | ||
Goodwill, Gross, Beginning Balance | 155,416 | 155,416 | ||
Accumulated impairment losses, Beginning Balance | 0 | 0 | ||
Goodwill, Net, Beginning Balance | 155,416 | 155,416 | ||
Goodwill, Acquired During Period | 0 | ' | ||
Goodwill, Tax and other adjustments | 0 | [1] | 0 | [1] |
Goodwill, Gross, Ending Balance | 155,416 | 155,416 | ||
Accumulated impairment losses, Ending Balance | 0 | 0 | ||
Goodwill, Net, Ending Balance | $155,416 | $155,416 | ||
[1] | The goodwill adjustments were primarily a result of tax benefits from the exercise of stock awards of acquired companies. |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
Oct. 26, 2013 | Oct. 27, 2012 | ||
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | $480,700,000 | [1] | $546,710,000 |
Accumulated Amortization | 462,032,000 | [1] | 437,445,000 |
Net Carrying Value | 18,668,000 | [1] | 109,265,000 |
Weighted-Average Remaining Useful Life | '0 years 6 months 29 days | [1] | '1 year 1 month 28 days |
Cost of Fully Amortized Intangible Assets | 69,400,000 | ' | |
Trade name | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 460,000 | 100,000 | |
Accumulated Amortization | 110,000 | 97,000 | |
Net Carrying Value | 350,000 | 3,000 | |
Weighted-Average Remaining Useful Life | '3 years 0 months 4 days | '0 years 2 months 1 day | |
Core/developed technology | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 192,340,000 | 218,845,000 | |
Accumulated Amortization | 185,254,000 | 173,070,000 | |
Net Carrying Value | 7,086,000 | 45,775,000 | |
Weighted-Average Remaining Useful Life | '0 years 4 months 6 days | '1 year 1 month 20 days | |
Customer relationships | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 287,090,000 | 327,765,000 | |
Accumulated Amortization | 276,473,000 | 264,278,000 | |
Net Carrying Value | 10,617,000 | 63,487,000 | |
Weighted-Average Remaining Useful Life | '0 years 6 months 4 days | '1 year 1 month 28 days | |
Non-compete agreements | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 810,000 | ' | |
Accumulated Amortization | 195,000 | ' | |
Net Carrying Value | $615,000 | ' | |
Weighted-Average Remaining Useful Life | '3 years 0 months 4 days | ' | |
[1] | During the fiscal year ended October 26, 2013, $69.4 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. |
Goodwill_And_Intangible_Assets6
Goodwill And Intangible Assets (Schedule Of Amortization Of Intangible Assets Included On Consolidated Statements Of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Cost of revenues | $39,731 | $46,229 | $57,489 |
Operating expenses | 54,256 | 59,204 | 60,713 |
Total | $93,987 | $105,433 | $118,202 |
Goodwill_And_Intangible_Assets7
Goodwill And Intangible Assets (Schedule Of Estimated Future Amortization Of Intangible Assets) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 | |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | |
2014 | $16,994 | ' | |
2015 | 865 | ' | |
2016 | 553 | ' | |
2017 | 238 | ' | |
2018 | 18 | ' | |
Total | $18,668 | [1] | $109,265 |
[1] | During the fiscal year ended October 26, 2013, $69.4 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. |
Restructuring_And_Other_Charge2
Restructuring And Other Charges (Schedule of Restructuring and Related Costs) (Details) (USD $) | 12 Months Ended | |
Oct. 26, 2013 | Oct. 27, 2012 | |
Restructuring | ' | ' |
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 'Restructuring and other costs (recoveries) | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | $2,582,000 | $3,952,000 |
Restructuring and other charges | 25,464,000 | ' |
Cash payments | -9,551,000 | -1,334,000 |
Non-cash charges | -1,069,000 | ' |
Other adjustments, net | ' | -36,000 |
Restructuring liabilities, Ending balance | 17,426,000 | 2,582,000 |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 16,418,000 | 976,000 |
Non-current restructuring liabilities | 1,008,000 | 1,606,000 |
Fiscal 2013 Fourth Quarter Restructuring Plan | ' | ' |
Restructuring | ' | ' |
Restructuring and Related Activities, Description | 'During the fiscal year ended October 26, 2013, the Company reevaluated its business model to restructure certain business operations, reorganize certain business units within the Company, and reduce the Company’s operating expense structure. The restructuring plan was approved by the Company’s management and communicated to the Company’s employees in September 2013. The plan included a workforce reduction of approximately 250 employees, primarily in the engineering, sales, and marketing organizations, as well as the cancellation of certain non-recurring engineering agreements and exit from certain leased facilities. In connection with the plan, the Company incurred aggregate charges of $25.5 million as of October 26, 2013, primarily related to severance and benefits charges. We expect to incur total charges of approximately $35.0 million, with future costs primarily related to lease loss reserve and related costs, by the expected completion of the plan by the end of the first quarter of 2014. Severance and benefits charges incurred during the quarter ended October 26, 2013, consisted of severance and related employee termination costs, including salary and other compensation payments to the employees during their post-notification retention period, as well as outplacement services, associated with the reduction of the Company’s workforce. The post-notification retention period for the employees terminated under the plan did not exceed the legal notification period, or in the absence of a legal notification requirement, 60 days. Contract terminations and other charges were primarily related to the cancellation of certain contracts in connection with the restructuring of certain business functions. Lease loss reserve and related costs were primarily related to the loss on cancellation of the right of first offer to purchase an unimproved parcel. The Company reevaluates its estimates and assumptions on a quarterly basis and makes adjustments to the restructuring liabilities balance if necessary. No material changes in estimates were made to the fiscal 2013 fourth quarter restructuring plan accrual. The Company expects to pay or otherwise substantially settle the remaining accrued liabilities during the next fiscal year. The above restructuring and other related charges are included in “Restructuring and other costs (recoveries)†on the Consolidated Statements of Income. | ' |
Restructuring and Related Activities, Initiation Date | 4-Sep-13 | ' |
Restructuring and Related Activities, Authorized Approval | 'The restructuring plan was approved by the Company’s management and communicated to the Company’s employees in September 2013. | ' |
Restructuring and Related Activities, Expected Completion Date | 25-Jan-14 | ' |
Restructuring and Related Cost, Description | 'Severance and benefits charges incurred during the quarter ended October 26, 2013, consisted of severance and related employee termination costs, including salary and other compensation payments to the employees during their post-notification retention period, as well as outplacement services, associated with the reduction of the Company’s workforce. The post-notification retention period for the employees terminated under the plan did not exceed the legal notification period, or in the absence of a legal notification requirement, 60 days. Contract terminations and other charges were primarily related to the cancellation of certain contracts in connection with the restructuring of certain business functions. Lease loss reserve and related costs were primarily related to the loss on cancellation of the right of first offer to purchase an unimproved parcel. | ' |
Restructuring and Related Cost, Expected Cost | 35,000,000 | ' |
Restructuring and Related Cost, Cost Incurred to Date | 25,500,000 | ' |
Restructuring and Related Cost, Expected Number of Positions Eliminated | 250 | ' |
Prior Restructuring Plans | ' | ' |
Restructuring | ' | ' |
Restructuring and Related Activities, Description | 'During the fiscal years prior to fiscal year 2013, the Company recorded charges related to estimated facilities lease losses, net of expected sublease income, due to consolidation of real estate space as a result of acquisitions. Cash payments for facilities that are part of the Company’s lease loss reserve are expected to be paid over the respective lease terms through fiscal year 2017. | ' |
Restructuring and Related Activities, Expected Completion Date | 28-Oct-17 | ' |
Restructuring and Related Cost, Description | 'During the fiscal years prior to fiscal year 2013, the Company recorded charges related to estimated facilities lease losses, net of expected sublease income, due to consolidation of real estate space as a result of acquisitions. | ' |
Severance and Benefits | Fiscal 2013 Fourth Quarter Restructuring Plan | ' | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | 0 | 0 |
Restructuring and other charges | 20,413,000 | ' |
Cash payments | -5,197,000 | 0 |
Non-cash charges | 0 | ' |
Other adjustments, net | ' | 0 |
Restructuring liabilities, Ending balance | 15,216,000 | 0 |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 15,216,000 | ' |
Non-current restructuring liabilities | 0 | ' |
Contract Terminations and Other | Fiscal 2013 Fourth Quarter Restructuring Plan | ' | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | 0 | 0 |
Restructuring and other charges | 3,981,000 | ' |
Cash payments | -3,565,000 | 0 |
Non-cash charges | 0 | ' |
Other adjustments, net | ' | 0 |
Restructuring liabilities, Ending balance | 416,000 | 0 |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 416,000 | ' |
Non-current restructuring liabilities | 0 | ' |
Lease Loss Reserve and Related Costs | Fiscal 2013 Fourth Quarter Restructuring Plan | ' | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | 0 | 0 |
Restructuring and other charges | 1,070,000 | ' |
Cash payments | -1,000 | 0 |
Non-cash charges | -1,069,000 | ' |
Other adjustments, net | ' | 0 |
Restructuring liabilities, Ending balance | 0 | 0 |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 0 | ' |
Non-current restructuring liabilities | 0 | ' |
Lease Loss Reserve and Related Costs | Prior Restructuring Plans | ' | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | 2,582,000 | 3,952,000 |
Restructuring and other charges | 0 | ' |
Cash payments | -788,000 | -1,334,000 |
Non-cash charges | 0 | ' |
Other adjustments, net | ' | -36,000 |
Restructuring liabilities, Ending balance | 1,794,000 | 2,582,000 |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 786,000 | ' |
Non-current restructuring liabilities | $1,008,000 | ' |
Balance_Sheet_Details_Schedule
Balance Sheet Details (Schedule of Accounts Receivable) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Allowance for Doubtful Accounts | ($575) | ($833) |
Accounts receivable, net | 249,598 | 233,139 |
Trade Accounts Receivable | ' | ' |
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Accounts Receivable, Gross | 257,494 | 243,731 |
Allowance for Doubtful Accounts | -575 | -833 |
Sales Allowance | -7,321 | -9,759 |
Accounts receivable, net | $249,598 | $233,139 |
Balance_Sheet_Details_Schedule1
Balance Sheet Details (Schedule of Inventory) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Inventory | ' | ' |
Inventory, Raw Materials | $14,048 | $24,240 |
Inventory, Finished Goods | 31,296 | 43,939 |
Inventory, Net | $45,344 | $68,179 |
Balance_Sheet_Details_Schedule2
Balance Sheet Details (Schedule of Property, Plant and Equipment) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment, Net, by Type | ' | ' | ||
Property and equipment, gross | $927,735 | $908,375 | ||
Less: Accumulated depreciation and amortization | -454,795 | [1],[2] | -389,435 | [1],[2] |
Total property and equipment, net | 472,940 | 518,940 | ||
Computer equipment | ' | ' | ||
Property, Plant and Equipment, Net, by Type | ' | ' | ||
Property and equipment, gross | 16,006 | 17,953 | ||
Software | ' | ' | ||
Property, Plant and Equipment, Net, by Type | ' | ' | ||
Property and equipment, gross | 57,186 | 39,410 | ||
Engineering and other equipment | ' | ' | ||
Property, Plant and Equipment, Net, by Type | ' | ' | ||
Property and equipment, gross | 416,573 | [1] | 409,524 | [1] |
Furniture and fixtures | ' | ' | ||
Property, Plant and Equipment, Net, by Type | ' | ' | ||
Property and equipment, gross | 29,029 | [1] | 30,516 | [1] |
Leasehold improvements | ' | ' | ||
Property, Plant and Equipment, Net, by Type | ' | ' | ||
Property and equipment, gross | 24,287 | 26,306 | ||
Land and building | ' | ' | ||
Property, Plant and Equipment, Net, by Type | ' | ' | ||
Property and equipment, gross | $384,654 | $384,666 | ||
[1] | Engineering and other equipment, furniture and fixtures and accumulated depreciation and amortization include the following amounts under capital leases as of October 26, 2013, and October 27, 2012 (in thousands): October 26, 2013 October 27, 2012Cost$11,925 $10,613Accumulated depreciation(5,366) (3,647)Total$6,559 $6,966 | |||
[2] | The following table presents the depreciation of property and equipment included on the Consolidated Statements of Income (in thousands): Fiscal Year Ended October 26, 2013 October 27, 2012 October 29, 2011Depreciation expense$90,127 $86,785 $88,150 |
Balance_Sheet_Details_Schedule3
Balance Sheet Details (Schedule of Capital Leased Assets) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Capital Leases | ' | ' |
Cost | $11,925 | $10,613 |
Accumulated depreciation | -5,366 | -3,647 |
Total | $6,559 | $6,966 |
Balance_Sheet_Details_Schedule4
Balance Sheet Details (Schedule of Accrued Liabilities) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities, Current | ' | ' |
Income taxes payable | $11,081 | $15,079 |
Accrued warranty | 8,632 | 14,453 |
Inventory purchase commitments | 4,436 | 4,271 |
Accrued sales programs | 25,752 | 24,801 |
Accrued interest | 10,056 | 12,011 |
Others | 20,382 | 20,670 |
Total other accrued liabilities | $80,339 | $91,285 |
Balance_Sheet_Details_Narrativ
Balance Sheet Details (Narratives) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Depreciation | ' | ' | ' |
Depreciation expense | $90,127 | $86,785 | $88,150 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Oct. 26, 2013 | Oct. 27, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets, Fair Value Disclosure | ' | ' | ||
Money market funds | $431,750 | [1] | $308,960 | [1] |
Derivative assets | 1,814 | 2,941 | ||
Total assets measured at fair value | 433,564 | 311,901 | ||
Liabilities, Fair Value Disclosure | ' | ' | ||
Derivative liabilities | 1,441 | 296 | ||
Total liabilities measured at fair value | 1,441 | 296 | ||
Quoted Prices In Active Markets For Identical Instruments (Level 1) | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Money market funds | 431,750 | [1] | 308,960 | [1] |
Derivative assets | 0 | 0 | ||
Total assets measured at fair value | 431,750 | 308,960 | ||
Liabilities, Fair Value Disclosure | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Total liabilities measured at fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Money market funds | 0 | [1] | 0 | [1] |
Derivative assets | 1,814 | 2,941 | ||
Total assets measured at fair value | 1,814 | 2,941 | ||
Liabilities, Fair Value Disclosure | ' | ' | ||
Derivative liabilities | 1,441 | 296 | ||
Total liabilities measured at fair value | 1,441 | 296 | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Money market funds | 0 | [1] | 0 | [1] |
Derivative assets | 0 | 0 | ||
Total assets measured at fair value | 0 | 0 | ||
Liabilities, Fair Value Disclosure | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Total liabilities measured at fair value | $0 | $0 | ||
[1] | Money market funds are reported within “Cash and cash equivalents†on the Consolidated Balance Sheets. |
Borrowings_Schedule_Of_LongTer
Borrowings (Schedule Of Long-Term Debt) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 |
Debt Instrument | ' | ' |
Long-term debt, gross | 604,600 | 604,916 |
Unamortized discount | 5,396 | 3,736 |
Current portion of long-term debt | 2,996 | 1,977 |
Long-term debt, net of current portion | 596,208 | 599,203 |
Senior Secured 2018 Notes | ' | ' |
Debt Instrument | ' | ' |
Maturity | 22-Jan-13 | ' |
Stated annual interest rate | 6.63% | ' |
Effective interest rate | 0.00% | 7.05% |
Senior Secured 2020 Notes | ' | ' |
Debt Instrument | ' | ' |
Maturity | 15-Jan-20 | ' |
Stated annual interest rate | 6.88% | ' |
Long-term debt, gross | 300,000 | 300,000 |
Effective interest rate | 7.26% | 7.26% |
Senior Unsecured 2023 Notes | ' | ' |
Debt Instrument | ' | ' |
Maturity | 15-Jan-23 | ' |
Stated annual interest rate | 4.63% | ' |
Long-term debt, gross | 300,000 | 0 |
Effective interest rate | 4.83% | 0.00% |
Capital Lease Obligations | ' | ' |
Debt Instrument | ' | ' |
Maturity | 31-May-16 | ' |
Stated annual interest rate | 5.67% | ' |
Long-term debt, gross | 4,600 | 4,916 |
Effective interest rate | 5.50% | 5.80% |
Borrowings_Narrative_Details
Borrowings (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | Oct. 26, 2013 | Oct. 27, 2012 | Jan. 20, 2010 | Oct. 26, 2013 | Jan. 22, 2013 | Jan. 20, 2010 | Oct. 26, 2013 | Jan. 20, 2010 | Oct. 26, 2013 | Jan. 22, 2013 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 31, 2008 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 31, 2008 | Oct. 31, 2008 | Oct. 31, 2008 | |
Senior Secured Notes | Senior Secured Notes | Senior Secured Notes | Senior Secured 2018 Notes | Senior Secured 2018 Notes | Senior Secured 2018 Notes | Senior Secured 2020 Notes | Senior Secured 2020 Notes | Senior Unsecured 2023 Notes | Senior Unsecured 2023 Notes | Term Loan Facility | Term Loan Facility | Term Loan Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Swing Line Loan Subfacility | Letter Of Credit Subfacility | ||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | $600,000,000 | ' | ' | $300,000,000 | ' | $300,000,000 | ' | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, fair value | ' | ' | ' | 324,400,000 | 638,300,000 | ' | ' | ' | ' | ' | ' | 281,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Irrevocable deposit | ' | ' | ' | ' | ' | ' | ' | 311,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of principal amount | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Call premium | ' | ' | ' | ' | ' | ' | ' | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid interest deposited to escrow | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price, percentage of face value | ' | ' | ' | ' | ' | ' | 103.31% | ' | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption amount of notes, percentage of principal amount, when using the net cash proceed from capital stock sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price, percentage of principal amount, when using the net cash proceed from capital stock sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase price of notes in case of change in control, percentage of face value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase price of notes in case of sale of assets, percentage of face value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, original term of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '5 years | ' | ' |
Call premium cost and original issue discount and debt issuance costs related to lenders that did not participate in refinancing | ' | ' | ' | ' | ' | ' | 15,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | 125,000,000 | 25,000,000 | 25,000,000 |
Senior secured credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 0 | 0 | ' | ' | ' |
Senior secured credit facility, current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | 125,000,000 | ' | ' | ' |
Write-off of original issue discount and debt issuance costs related to lenders that did not participate in refinancing | $5,360,000 | $0 | $25,465,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,500,000 | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Schedule_Of_Debt_Ma
Borrowings (Schedule Of Debt Maturities) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Long-term Debt, by Maturity | ' | ' |
2014 | $2,996 | ' |
2015 | 1,284 | ' |
2016 | 320 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
Thereafter | 600,000 | ' |
Total | $604,600 | $604,916 |
Commitments_And_Contingencies_1
Commitments And Contingencies Commitments And Contingencies (Leases Narrative) (Details) (USD $) | Oct. 26, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Letters of Credit Outstanding, Amount | $0.20 |
Commitments_And_Contingencies_2
Commitments And Contingencies Commitments And Contingencies (Schedule of Rent Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Operating Leases, Rent Expense, Net [Abstract] | ' | ' | ' |
Rent expense | $26,199 | $25,867 | $26,576 |
Sublease income | -6,834 | -6,606 | -5,643 |
Rent Expense, Net | $19,365 | $19,261 | $20,933 |
Commitments_And_Contingencies_3
Commitments And Contingencies Commitments And Contingencies (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) (USD $) | Oct. 26, 2013 |
Operating Leases, Future Minimum Payments Due [Abstract] | ' |
2014 | $22,253,000 |
2015 | 17,040,000 |
2016 | 15,313,000 |
2017 | 6,889,000 |
2018 | 2,884,000 |
Thereafter | 5,876,000 |
Total minimum lease payments | 70,255,000 |
Contractual sublease income | $22,700,000 |
Commitments_And_Contingencies_4
Commitments And Contingencies Commitments And Contingencies (Schedule of Future Minimum Lease Payments for Capital Leases) (Details) (USD $) | Oct. 26, 2013 |
In Thousands, unless otherwise specified | |
Capital Leases, Future Minimum Payments Due | ' |
2014 | $3,215 |
2015 | 1,329 |
2016 | 326 |
2017 | 0 |
Total minimum lease payments | 4,870 |
Amount representing interest | -270 |
Present value of net minimum lease payments | $4,600 |
Commitments_And_Contingencies_5
Commitments And Contingencies (Schedule Of Accrued Liability For Estimated Future Warranty Costs) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 |
Product Warranty Activity | ' | ' |
Beginning balance | $14,453 | $11,298 |
Liabilities accrued for warranties issued during the period | 4,969 | 5,929 |
Warranty claims paid and used during the period | -8,213 | -575 |
Changes in liability for pre-existing warranties during the period | -2,577 | -2,199 |
Ending balance | $8,632 | $14,453 |
Commitments_And_Contingencies_6
Commitments And Contingencies (Purchase Commitment Narrative) (Details) (Inventory Purchase Commitment, USD $) | Oct. 26, 2013 |
In Millions, unless otherwise specified | |
Inventory Purchase Commitment | ' |
Purchase Commitment, Excluding Long-term Commitment | ' |
Purchase Commitment, Remaining Minimum Amount Committed | $186.60 |
Purchase Commitment, Recognized Loss | $4.40 |
Commitments_And_Contingencies_7
Commitments And Contingencies (Loss Contingency Narrative) (Details) (Enterasys, Settled Litigation) | Jun. 21, 2005 |
patents | |
Enterasys | Settled Litigation | ' |
Loss Contingencies | ' |
Number of alleged patents infringed and seeking injunctive relief | 6 |
Commitments_And_Contingencies_8
Commitments And Contingencies (Gain Contingency Narrative) (Details) (Positive Outcome of Litigation, A10 Networks, USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Oct. 26, 2013 | Jul. 27, 2013 | Aug. 06, 2012 | Oct. 29, 2010 | Jul. 27, 2013 | Jul. 27, 2013 | Oct. 26, 2013 |
patents | Cash | Notes Receivable | Notes Receivable | ||||
Gain Contingencies | ' | ' | ' | ' | ' | ' | ' |
Number of alleged patents infringed and seeking injunctive relief | ' | ' | ' | 13 | ' | ' | ' |
Amount Awarded by Jury | ' | ' | $60 | ' | ' | ' | ' |
Gain Contingency, Description | 'On August 6, 2012, the jury found A10 responsible for intellectual property infringement and unfair competition, and awarded damages to Brocade. On January 11, 2013, the Court issued an order that affirmed the jury’s finding of A10’s liability for patent and copyright infringement, trade secret misappropriation, and unfair competition due to A10’s interference with the employment contract of a Foundry Networks employee beginning in 2007. The Court also confirmed the jury’s award of $60.0 million to Brocade in damages for copyright infringement. The Court did, however, vacate the jury’s award of damages for patent infringement, and its award of punitive damages for A10’s and Lee Chen’s interference with the employment contract of the Foundry employee, and the Court ordered a new trial to redetermine the amount of any such damages. On January 11, 2013, the Court also issued a permanent injunction prohibiting A10 from shipping any A10 products that infringe Brocade’s patents. On January 23, 2013, the Court issued a permanent injunction prohibiting A10 from further use of the misappropriated trade secrets. On February 8, 2013, A10 filed a Notice of Appeal of the permanent injunctions. A10 also asked the Court to stay both of the injunctions pending appeal. On February 12, 2013, the Court denied A10’s request to stay the injunctions. A retrial on the sole issue of the amount of patent damages to be awarded to Brocade for A10’s infringement was set for May 20, 2013. On May 20, 2013, before the start of the retrial, Brocade and A10 reached an agreement to settle all matters between the parties including the lawsuit A10 filed against Brocade on September 9, 2011. On June 7, 2013, judgment was entered in favor of Brocade against A10 for the amount of $75.0 million (as further described in Note 14, “Other Income (Loss), netâ€). Pursuant to that judgment, A10 paid Brocade $5.0 million on June 25, 2013, and on July 22, 2013, the parties signed a $70.0 million, six-month convertible promissory note at 8%. That promissory note was then paid in full on September 30, 2013, including $70.0 million in principal and approximately $1.1 million in interest paid by A10 to Brocade. | ' | ' | ' | ' | ' | ' |
Former Gain Contingency, Recognized in Current Period | ' | 75 | ' | ' | 5 | 70 | 70 |
Interest Income, Note received in settlement | ' | ' | ' | ' | ' | ' | $1.10 |
Note Receivable Interest Rate | ' | ' | ' | ' | ' | 8.00% | ' |
Derivative_Instruments_And_Hed3
Derivative Instruments And Hedging Activities (Schedule Of Net Gains (Losses) Related To The Effective Portion Of Foreign Currency Derivatives) (Details) (Foreign Exchange Contract, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | $425 | ($8,351) | $7,292 |
Cost of revenues | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | 98 | -1,043 | 882 |
Research and development | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | -60 | -1,094 | 496 |
Sales and marketing | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | 356 | -5,704 | 5,498 |
General and administrative | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | $31 | ($510) | $416 |
Derivative_Instruments_And_Hed4
Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' |
Maximum derivative instrument maturity period | '15 months | ' | ' |
Foreign Currency Transaction [Abstract] | ' | ' | ' |
Foreign currency transaction gains (losses) | $0.10 | ($1.50) | ($0.60) |
Derivatives Designated As Hedging Instruments | Prepaid Expense And Other Current Asset | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Gross unrealized gain positions | 1.8 | ' | ' |
Derivatives Designated As Hedging Instruments | Other Accrued Liabilities | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Gross unrealized loss positions | $1.40 | ' | ' |
Derivative_Instruments_And_Hed5
Derivative Instruments And Hedging Activities (Schedule Of Total Gross Notional Amounts, Presented By Currency) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives Designated As Hedging Instruments | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | $98,614 | $105,171 |
Derivatives Designated As Hedging Instruments | Euro | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 16,012 | 43,357 |
Derivatives Designated As Hedging Instruments | British Pound | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 25,053 | 20,499 |
Derivatives Designated As Hedging Instruments | India Rupee | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 17,444 | 16,046 |
Derivatives Designated As Hedging Instruments | Singapore Dollar | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 12,867 | 12,918 |
Derivatives Designated As Hedging Instruments | Swiss Franc | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 11,066 | 8,575 |
Derivatives Designated As Hedging Instruments | Japanese Yen | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 16,172 | 3,776 |
Derivatives Not Designated As Hedging Instruments | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 25,478 | 12,068 |
Derivatives Not Designated As Hedging Instruments | Euro | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 25,478 | 0 |
Derivatives Not Designated As Hedging Instruments | British Pound | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | India Rupee | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | Singapore Dollar | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | Swiss Franc | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | Japanese Yen | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | $0 | $12,068 |
Employee_Compensation_Plans_Em
Employee Compensation Plans Employee Compensation Plans (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
Oct. 26, 2013 | Oct. 27, 2012 | Oct. 26, 2013 | Oct. 26, 2013 | Oct. 26, 2013 | Apr. 28, 2012 | Oct. 26, 2013 | Oct. 26, 2013 | Apr. 28, 2012 | Oct. 26, 2013 | Oct. 26, 2013 | Oct. 26, 2013 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | |
Equity Compensation Plans | Equity Compensation Plans | Equity Compensation Plans | Equity Compensation Plans | 2013 Inducement Award Plan | 2009 Stock Plan | 2009 Stock Plan | 2009 Director Plan | 2009 Employee Stock Purchase Plan | 2009 Employee Stock Purchase Plan | 1999 Nonstatutory Stock Option Plan | Mcdata Equity Plans | Employee 401 K Plan | Employee 401 K Plan | Employee 401 K Plan | |
Minimum | Maximum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized under plan | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance under plan | 90,600,000 | 126,700,000 | ' | ' | 2,400,000 | ' | 83,000,000 | 2,000,000 | ' | 65,000,000 | ' | 800,000 | ' | ' | ' |
Maximum number of shares to be added to the plan | ' | ' | ' | ' | ' | ' | 40,300,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance under plan | 56,800,000 | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | 27,900,000 | ' | ' | ' | ' | ' |
Maximum payroll deductions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' |
Discount from Market Price At Offering Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' |
Maximum number of shares to be purchased per employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750 | ' | ' | ' | ' | ' |
Plan Offering Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' |
Plan Purchase Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' |
Number of purchase periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' |
Reduction In Number Of Shares Available For Issuance | 1.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Percentage Holding Requirement For Principal Shareholder | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Fair Market Value Of The Shares Granted To Principal Shareholder | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration Date For Stock Options And Stock Appreciation Rights Maximum Time From Grant Date - 10% owners | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration Date For Stock Options And Stock Appreciation Rights Maximum Time From Grant Date | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | '3 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares reserved for issuance under director plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,400,000 | ' | ' | ' | ' |
Shares Remaining For Future Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' |
Company's matching contributions to the 401(k) Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,200,000 | $9,100,000 | $9,300,000 |
Maximum contribution by employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,000 | ' | ' |
Employee contribution maximum rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule Of Equity Compensation Plans) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | Oct. 30, 2010 | |
In Thousands, except Per Share data, unless otherwise specified | |||||
Stock options | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | |
Number of securities to be Issued upon exercise of outstanding options, warrants and rights | 12,561 | 29,497 | 50,765 | 71,666 | |
Weighted-average exercise price of options outstanding | $6.19 | $5.43 | $4.91 | $4.82 | |
Number of securities remaining available for future issuance under equity compensation plans | 56,756 | ' | ' | ' | |
Equity Compensation Plans Approved By Stockholders | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | |
Number of securities to be Issued upon exercise of outstanding options, warrants and rights | 9,686 | [1],[2] | ' | ' | ' |
Weighted-average exercise price of options outstanding | $6.51 | [1] | ' | ' | ' |
Number of securities remaining available for future issuance under equity compensation plans | 56,756 | [1],[3] | ' | ' | ' |
Equity Compensation Plans Not Approved By Stockholders | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | |
Number of securities to be Issued upon exercise of outstanding options, warrants and rights | 2,875 | [4],[5] | ' | ' | ' |
Weighted-average exercise price of options outstanding | $5.12 | [4] | ' | ' | ' |
Number of securities remaining available for future issuance under equity compensation plans | 0 | [4] | ' | ' | ' |
[1] | Primarily consist of the 2009 ESPP, the 2009 and 1999 Director Plans, and the 2009 and 1999 Stock Plans. | ||||
[2] | Amount excludes purchase rights accrued under the 2009 ESPP. As of October 26, 2013, the 2009 ESPP had a stockholder-approved reserve of 65.0 million shares, of which 27.9 million shares were available for future issuance. | ||||
[3] | Amount consists of shares available for future issuance under the 2009 ESPP, the 2009 Director Plan and the 2009 Stock Plan. | ||||
[4] | Consist solely of the 1999 NSO Plan described in Note 11, “Employee Compensation Plans,†of the Notes to Consolidated Financial Statements and Foundry’s 2000 NSO Plan, which was assumed in connection with our acquisition of Foundry. | ||||
[5] | A substantial number of shares were granted in the first quarter of fiscal year 2013. Information relating to equity compensation plans is set forth in Note 11, “Employee Compensation Plans,†of the Notes to Consolidated Financial Statements. |
StockBased_Compensation_StockB
Stock-Based Compensation (Stock-Based Compensation Expense Included In Line Items Of Consolidated Statements Of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Total stock-based compensation | $73,618 | $77,169 | $83,076 |
Cost of revenues | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Total stock-based compensation | 14,519 | 15,433 | 15,607 |
Research and development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Total stock-based compensation | 17,509 | 17,952 | 18,959 |
Sales and marketing | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Total stock-based compensation | 29,425 | 33,257 | 36,068 |
General and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Total stock-based compensation | $12,165 | $10,527 | $12,442 |
StockBased_Compensation_StockB1
Stock-Based Compensation (Stock-Based Compensation Expense By Grant Type) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Total stock-based compensation | $73,618 | $77,169 | $83,076 |
Stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Total stock-based compensation | 2,581 | 1,079 | 3,483 |
Restricted stock units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Total stock-based compensation | 50,522 | 56,791 | 55,750 |
Employee stock purchase plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Total stock-based compensation | $20,515 | $19,299 | $23,843 |
StockBased_Compensation_StockB2
Stock-Based Compensation (Stock-Based Compensation, Unrecognized Compensation Expense And Weighted-Average Period) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 26, 2013 |
Stock options | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Unrecognized Compensation Expense | $3,565 |
Weighted-Average Period | '1 year 4 months 17 days |
Restricted stock units | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Unrecognized Compensation Expense | 86,956 |
Weighted-Average Period | '2 years 0 months 7 days |
Employee stock purchase plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Unrecognized Compensation Expense | $6,270 |
Weighted-Average Period | '0 years 10 months 17 days |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedules of Share-based Payment Award, Stock Options and Employee Stock Purchase Plan, Valuation Assumptions) (Details) | 12 Months Ended | ||
Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | |
Stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk free interest rate minimum | 0.60% | 0.10% | 0.10% |
Risk free interest rate maximum | 1.70% | 0.80% | 0.60% |
Expected volatility minimum | 39.90% | 48.80% | 50.30% |
Expected volatility maximum | 44.90% | 56.50% | 61.90% |
Expected term | '5 years 8 months 12 days | '4 years 8 months 12 days | '3 years 10 months 24 days |
Employee stock purchase plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 0.21% | 0.20% | 0.60% |
Expected volatility | 39.50% | 52.50% | 65.50% |
Expected term | '1 year 3 months 18 days | '1 year 6 months 0 days | '1 year 1 month 6 days |
StockBased_Compensation_Schedu2
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) (Stock options, USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | Oct. 30, 2010 |
Stock options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ' | ' | ' | ' |
Stock options, Beginning balance | 29,497 | 50,765 | 71,666 | ' |
Stock options, Granted | 2,875 | 160 | 243 | ' |
Stock options, Exercised | -13,149 | -16,993 | -16,814 | ' |
Stock options, Forfeited or expired | -6,662 | -4,435 | -4,330 | ' |
Stock options, Ending balance | 12,561 | 29,497 | 50,765 | 71,666 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ' | ' | ' | ' |
Weighted Average Exercise Price, Stock options, Beginning balance | $5.43 | $4.91 | $4.82 | ' |
Weighted Average Exercise Price, Stock options, Granted | $5.64 | $5.55 | $5.47 | ' |
Weighted Average Exercise Price, Stock options, Exercised | $3.99 | $3.39 | $3.48 | ' |
Weighted Average Exercise Price, Stock options, Forfeited or expired | $6.90 | $7.34 | $9.03 | ' |
Weighted Average Exercise Price, Stock options, Ending balance | $6.19 | $5.43 | $4.91 | $4.82 |
Aggregate intrinsic value, Stock options, Outstanding | $24,784 | $26,077 | $35,494 | $146,199 |
Aggregate intrinsic value, Stock options, Exercised | 32,324 | 36,498 | 46,047 | ' |
Weighted-average grant date fair value | $2.34 | $2.39 | $2.23 | ' |
Weighted average remaining contractual term, Stock options, Outstanding | '2 years 4 months 13 days | '1 year 7 months 10 days | '1 year 11 months 23 days | '2 years 6 months 29 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest | ' | ' | ' | ' |
Vested and expected to vest, Stock options, Outstanding | 12,384 | ' | ' | ' |
Vested and expected to vest, Stock options, Weighted average exercise price | $6.21 | ' | ' | ' |
Vested and expected to vest, Stock options, Weighted average remaining contractual term | '2 years 3 months 25 days | ' | ' | ' |
Vested and expected to vest, Stock options, Outstanding, Aggregate intrinsic value | 24,393 | ' | ' | ' |
Exercisable and vested, Stock options, Outstanding | 9,586 | ' | ' | ' |
Exercisable and vested, Stock options, Weighted average exercise price | $6.37 | ' | ' | ' |
Exercisable and vested, Stock options, Weighted average remaining contractual term | '1 year 2 months 12 days | ' | ' | ' |
Exercisable and vested, Stock options, Outstanding, Aggregate intrinsic value | $18,300 | ' | ' | ' |
StockBased_Compensation_Schedu3
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) (Restricted stock units, USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Restricted stock units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | ' | ' | ' |
RSUs, Nonvested, Beginning balance | 21,996 | 23,481 | 28,171 |
RSUs, Granted | 11,518 | 11,166 | 12,754 |
RSUs, Vested | -7,401 | -9,597 | -13,434 |
RSUs, Forfeited | -3,352 | -3,054 | -4,010 |
RSUs, Nonvested, Ending balance | 22,761 | 21,996 | 23,481 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | ' | ' | ' |
RSUs, Weighted-Average Grant Date Fair Value, Beginning balance | $3.71 | $3.85 | $4.32 |
RSUs, Weighted-Average Grant Date Fair Value, Granted | $5.75 | $4.97 | $5.68 |
RSUs, Weighted-Average Grant Date Fair Value, Vested | $5.69 | $4.82 | $5.82 |
RSUs, Weighted-Average Grant Date Fair Value, Forfeited | $5.39 | $5.92 | $6.37 |
RSUs, Weighted-Average Grant Date Fair Value, Ending balance | $3.85 | $3.71 | $3.85 |
Vested and expected to vest, Shares | 19,565 | ' | ' |
Vested and expected to vest, Weighted-Average Grant Date Fair Value | $3.85 | ' | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Oct. 26, 2013 | Oct. 26, 2013 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | Oct. 26, 2013 | Oct. 26, 2013 | Oct. 26, 2013 | |
2009 Employee Stock Purchase Plan | Stock options | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Employee stock purchase plan | |
Minimum | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance under plan | 65,000,000 | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance under plan | 27,900,000 | 56,756,000 | ' | ' | ' | ' | ' | ' |
Discount from Market Price At Offering Date | 85.00% | ' | ' | ' | ' | ' | ' | 85.00% |
Maximum payroll deductions | 15.00% | ' | ' | ' | ' | ' | ' | 15.00% |
Plan Offering Period | '24 months | ' | ' | ' | ' | ' | ' | '24 months |
Plan Purchase Period | '6 months | ' | ' | ' | ' | ' | ' | '6 months |
Award vesting period | ' | ' | ' | ' | ' | '1 year | '4 years | ' |
RSUs, Nonvested, Aggregate intrinsic value | ' | ' | $178,800,000 | $116,600,000 | $105,900,000 | ' | ' | ' |
Loss_On_Sale_Of_Subsidiary_Nar
Loss On Sale Of Subsidiary (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 29, 2011 |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Assets and liabilities held for sale | $16.20 |
Intangible assets | 11.1 |
Expected loss recognized on disposal | 11.1 |
Goodwill written off | 1.7 |
Loss on sale of subsidiary | $12.80 |
Other_Income_Loss_net_Narrativ
Other Income (Loss), net (Narrative) (Details) (A10 Networks, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 26, 2013 |
Component of Other Income, Nonoperating | ' |
Other Nonoperating Income | $76.80 |
Gain Litigation Settlement Date | 20-May-13 |
Cash | ' |
Component of Other Income, Nonoperating | ' |
Other Nonoperating Income | 5 |
Notes Receivable | ' |
Component of Other Income, Nonoperating | ' |
Other Nonoperating Income | 70 |
Note Receivable Interest Rate | 8.00% |
Other Assets | ' |
Component of Other Income, Nonoperating | ' |
Other Nonoperating Income | $1.80 |
Income_Taxes_Income_Taxes_Sche
Income Taxes Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) (USD $) | 12 Months Ended | |||
Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' | |
United States | $176,536,000 | $115,736,000 | ($42,118,000) | [1] |
International | 153,925,000 | 108,665,000 | 121,546,000 | [1] |
Income before income tax | 330,461,000 | 224,401,000 | 79,428,000 | |
Repatriation from offshore operations excluded from income before income taxes | ' | ' | $200,000,000 | |
[1] | Excludes the impact of repatriation of $200.0 million from offshore operations to the United States. |
Income_Taxes_Income_Taxes_Sche1
Income Taxes Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
U.S. federal taxes: | ' | ' | ' |
Current, U.S. federal taxes | ($13,666) | ($11,750) | $774 |
Deferred, U.S. federal taxes | 46,313 | 33,981 | 28,111 |
Total U.S. federal taxes | 32,647 | 22,231 | 28,885 |
State taxes: | ' | ' | ' |
Current, State taxes | 8,091 | 613 | 1,250 |
Deferred, State taxes | 78,106 | -2,412 | -9,187 |
Total state taxes | 86,197 | -1,799 | -7,937 |
Non-U.S. taxes: | ' | ' | ' |
Current, Non-U.S. taxes | 2,837 | 8,770 | 7,854 |
Deferred, Non-U.S. taxes | 157 | 18 | 16 |
Total non-U.S. taxes | 2,994 | 8,788 | 7,870 |
Total | $121,838 | $29,220 | $28,818 |
Income_Taxes_Income_Taxes_Sche2
Income Taxes Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation | ' | ' | ' |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax benefit | 4.10% | 3.80% | 3.30% |
Foreign income taxed at other than U.S. rates | -17.60% | -17.70% | -48.20% |
Stock-based compensation | 1.90% | 3.50% | 11.80% |
Research and development credit | -5.60% | -3.50% | -17.60% |
Permanent items | 0.30% | 0.30% | 1.20% |
Change in liabilities for uncertain tax positions | -5.10% | -6.50% | 2.50% |
Repatriation from offshore operations | 0.00% | 0.00% | 62.60% |
Audit settlement and reinstated tax credit | 1.30% | -2.90% | -11.70% |
Change in valuation allowance | 23.70% | 0.00% | 0.00% |
Other | -1.10% | 1.00% | -2.60% |
Effective tax rate | 36.90% | 13.00% | 36.30% |
Income_Taxes_Income_Taxes_Sche3
Income Taxes Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets, Gross | ' | ' |
Net operating loss carry forwards | $10,525 | $63,750 |
Stock-based compensation expense | 17,664 | 22,582 |
Tax credit carry forwards | 141,975 | 145,688 |
Reserves and accruals | 63,765 | 94,755 |
Capitalized research and development expenditures | 621 | 3,232 |
Net unrealized losses on investments | 396 | 468 |
Gross deferred tax assets | 234,946 | 330,475 |
Valuation allowance | -81,116 | -22,269 |
Total deferred tax assets | 153,830 | 308,206 |
Deferred Tax Liabilities | ' | ' |
Acquired intangibles and goodwill | -22,307 | -50,266 |
Fixed assets | -29,878 | -28,110 |
Other | -2,042 | -2,116 |
Total deferred tax liabilities | -54,227 | -80,492 |
Deferred Tax Assets (Liabilities), Net | ' | ' |
Total net deferred tax assets | $99,603 | $227,714 |
Income_Taxes_Income_Taxes_Summ
Income Taxes Income Taxes (Summary of Income Tax Contingencies) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | ' | ' |
Unrecognized tax benefits, beginning balance | $119,253 | $149,430 |
Gross increases for tax positions taken in prior periods | 3,472 | 797 |
Gross decreases for tax positions taken in prior periods | -12,970 | -26,001 |
Gross increases for tax positions taken in current period | 14,875 | 6,633 |
Changes due to settlements with taxing authorities | -9,442 | -6,771 |
Reductions resulting from lapses of statutes of limitations | -2,709 | -4,835 |
Unrecognized tax benefits, ending balance | $112,479 | $119,253 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Shares Repurchased with Repatriation From Off Shore Operations | ' | ' | 46.5 |
Tax Expense Related To Repatriation From Offshore Operations | ' | ' | $49,700,000 |
Cash, cash equivalents and short-term investments | 987,000,000 | ' | ' |
Percentage of cash and cash equivalents and short term investments held in foreign subsidiaries | 59.00% | ' | ' |
Percentage Of Tax Benefit Realized Upon Ultimate Settlement With Taxing Authority | 50.00% | ' | ' |
Amount of unrecognized tax benefits that could affect the effect tax rate | 75,800,000 | ' | ' |
Lower range of estimated potential decreases in underlying uncertain tax positions | 0 | ' | ' |
Upper range of estimated potential decreases in underlying uncertain tax positions | 4,000,000 | ' | ' |
Tax detriment from employee stock plans | 1,500,000 | 4,800,000 | 5,200,000 |
Change in California deferred tax asset valuation allowance as a result of the passage of Proposition 39 | 78,200,000 | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 600,000 | 500,000 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,300,000 | 2,400,000 | ' |
Income Tax Expense (Benefit) | ' | ' | ' |
Income tax expense | 121,838,000 | 29,220,000 | 28,818,000 |
Foreign undistributed earnings permanent in duration | ' | ' | ' |
Deferred tax liability not recognized, Undistributed earnings of the Company's foreign subsidiaries | 525,200,000 | ' | ' |
Internal Revenue Service (IRS) | ' | ' | ' |
Operating loss carryforwards | 443,600,000 | ' | ' |
Operating loss carryforwards, Expiration dates | 'various dates between fiscal year 2017 through 2033 | ' | ' |
Tax credit carryforward | 155,100,000 | ' | ' |
State and Local Jurisdiction | ' | ' | ' |
Operating loss carryforwards, Expiration dates | 'various dates between fiscal year 2014 through 2033 | ' | ' |
Tax credit carryforward | 164,500,000 | ' | ' |
California State | ' | ' | ' |
Operating loss carryforwards | 57,100,000 | ' | ' |
Other States | ' | ' | ' |
Operating loss carryforwards | $144,000,000 | ' | ' |
Segment_Information_Schedule_O
Segment Information (Schedule Of Financial Information By Reportable Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Jul. 27, 2013 | Apr. 27, 2013 | Jan. 26, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Jan. 28, 2012 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $558,800 | $536,551 | $538,784 | $588,729 | $578,357 | $555,332 | $543,439 | $560,642 | $2,222,864 | $2,237,770 | $2,147,442 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 813,985 | 854,751 | 863,908 |
Gross margin | 362,640 | 338,202 | 334,112 | 373,925 | 360,690 | 340,478 | 337,082 | 344,769 | 1,408,879 | 1,383,019 | 1,283,534 |
SAN Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,318,509 | 1,356,099 | 1,237,994 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 355,388 | 362,608 | 356,013 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 963,121 | 993,491 | 881,981 |
IP Networking Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 552,058 | 534,757 | 551,820 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 302,974 | 327,248 | 321,183 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 249,084 | 207,509 | 230,637 |
Global Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 352,297 | 346,914 | 357,628 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 155,623 | 164,895 | 186,712 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | $196,674 | $182,019 | $170,916 |
Recovered_Sheet1
Segment Information (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | $2,222,864 | $2,237,770 | $2,147,442 | |||
Property and equipment, net | 472,940 | 518,940 | 532,384 | |||
United States | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | 1,351,242 | 1,414,390 | 1,313,302 | |||
Property and equipment, net | 457,622 | 500,744 | 515,940 | |||
International | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | 871,622 | 823,380 | 834,140 | |||
Property and equipment, net | 15,318 | 18,196 | 16,444 | |||
Europe Middle East And Africa, including Netherlands | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | 552,734 | [1] | 493,979 | [1] | 502,999 | [1] |
Netherlands | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | 339,100 | 259,200 | 257,500 | |||
Asia Pacific | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | 181,461 | 186,244 | 212,636 | |||
JAPAN | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | 97,259 | 99,887 | 75,542 | |||
Canada Central And South America | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | |||
Revenues | $40,168 | $43,270 | $42,963 | |||
[1] | Includes net revenues of $339.1 million, $259.2 million and $257.5 million for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, respectively, relating to the Netherlands. |
Segment_Information_Narrative_
Segment Information Narrative (Details) | 12 Months Ended |
Oct. 26, 2013 | |
segments | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 4 |
Number of reportable segments, individually reported | 2 |
Number of operating segments, combined to reporting segment | 2 |
Net_Income_Per_Share_Schedule_
Net Income Per Share (Schedule Of Calculation Of Basic And Diluted Net Income (Loss) Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 26, 2013 | Jul. 27, 2013 | Apr. 27, 2013 | Jan. 26, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Jan. 28, 2012 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | ||||
Basic net income per-share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $208,623 | $195,181 | $50,610 | ||||
Weighted-average shares used in computing basic net income per-share | 444,642 | 449,446 | 453,133 | 454,843 | 459,333 | 457,147 | 457,541 | 452,494 | 450,516 | 456,629 | 474,259 | ||||
Net income per-share—basic | $0.14 | $0.26 | [1] | $0.10 | ($0.05) | $0.12 | $0.09 | $0.09 | $0.13 | $0.46 | $0.43 | $0.11 | |||
Diluted net income per-share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $208,623 | $195,181 | $50,610 | ||||
Weighted-average shares used in computing diluted net income per-share | 460,237 | 461,344 | 466,919 | 454,843 | 474,213 | 469,571 | 476,848 | 468,738 | 463,705 | 472,343 | 497,030 | ||||
Net income per-share—diluted | $0.14 | $0.26 | [1] | $0.10 | ($0.05) | $0.11 | $0.09 | $0.08 | $0.12 | $0.45 | $0.41 | $0.10 | |||
Weighted Average Number of Shares Outstanding Reconciliation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Weighted-average shares used in computing basic net income per-share | 444,642 | 449,446 | 453,133 | 454,843 | 459,333 | 457,147 | 457,541 | 452,494 | 450,516 | 456,629 | 474,259 | ||||
Dilutive potential common shares in the form of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 3,472 | 7,846 | 13,654 | ||||
Dilutive potential common shares in the form of other share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 9,717 | 7,868 | 9,117 | ||||
Weighted-average shares used in computing diluted net income per-share | 460,237 | 461,344 | 466,919 | 454,843 | 474,213 | 469,571 | 476,848 | 468,738 | 463,705 | 472,343 | 497,030 | ||||
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Antidilutive potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | 11,868 | [2] | 16,402 | [2] | 21,905 | [2] | |
Other share based awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Antidilutive potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | 167 | [2] | 570 | [2] | 3,075 | [2] | |
[1] | The quarter ended July 27, 2013, includes the impact of the nonrecurring gain of $76.8 million resulting from the litigation settlement with A10 Networks, Inc. | ||||||||||||||
[2] | These amounts are excluded from the computation of diluted net income per-share. |
Guarantor_And_NonGuarantor_Sub2
Guarantor And Non-Guarantor Subsidiaries (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 26, 2013 | Jan. 20, 2010 | Jan. 22, 2013 |
Senior Secured Notes | Senior Unsecured 2023 Notes | ||
Guarantor And Non-Guarantor Subsidiaries [Abstract] | ' | ' | ' |
Description of Guarantees Given by Parent Company | ' On January 20, 2010, the Company issued $600.0 million aggregate principal amount of the 2018 Notes and 2020 Notes. In addition, on January 22, 2013, the Company issued $300.0 million aggregate principal amount of the 2023 Notes. The Company’s obligations under the 2023 Notes and the 2020 Notes are, and prior to January 22, 2013, the Company’s obligations under the 2018 Notes were, guaranteed by certain of the Company’s domestic subsidiaries (the “Subsidiary Guarantorsâ€). Each of the Subsidiary Guarantors is 100% owned by the Company and all guarantees are joint and several. The Senior Secured Notes are not guaranteed by certain of the Company’s domestic subsidiaries and all of the Company’s foreign subsidiaries (the “Non-Guarantor Subsidiariesâ€). Pursuant to the terms of the Indentures governing the Senior Secured Notes, the guarantees are full and unconditional, but are subject to release under the following circumstances: - Upon the sale of the subsidiary or all or substantially all of its assets; - Upon the discharge of the guarantees under the credit facility and any other debt guaranteed by the applicable subsidiary provided that the credit facility has been paid in full and the applicable series of senior secured notes have an investment grade rating from both Standard & Poor’s and Moody’s; - Upon designation of the subsidiary as an “unrestricted subsidiary†under the applicable Indenture; - Upon the merger, consolidation or liquidation of the subsidiary into the Company or another subsidiary guarantor; and - Upon legal or covenant defeasance or the discharge of the Company’s obligations under the applicable indenture. The guarantees of the 2018 Notes were released on January 22, 2013, upon the discharge of the 2018 Indenture. Pursuant to the terms of the Indenture governing the 2023 Notes, the guarantees are full and unconditional but are subject to release under the following circumstances: - Upon the sale of the subsidiary or all or substantially all of its assets; - Upon the discharge of the guarantees under the Senior Secured Credit Facility, the 2020 Notes and any other debt guaranteed by the applicable subsidiary; - Upon the merger, consolidation or liquidation of the subsidiary into the Company or another subsidiary guarantor; and - Upon legal or covenant defeasance or the discharge of the Company’s obligations under the applicable indenture. Because the guarantees are subject to release under the above described circumstances, they would not be deemed “full and unconditional†for purposes of Rule 3-10 of Regulation S-X. However, as these circumstances are customary, the Company concluded that it may rely on Rule 3-10 of Regulation S-X, as the other requirements of Rule 3-10 have been met. | ' | ' |
Debt Instrument | ' | ' | ' |
Debt instrument, face amount | ' | $600 | $300 |
Guarantor_And_NonGuarantor_Sub3
Guarantor And Non-Guarantor Subsidiaries (Schedule Of Condensed Consolidated Balance Sheet) (Details) (USD $) | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | Oct. 30, 2010 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | $986,997 | $713,226 | $414,202 | $333,984 |
Accounts receivable, net | 249,598 | 233,139 | ' | ' |
Inventories | 45,344 | 68,179 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other current assets | 140,864 | 141,035 | ' | ' |
Total current assets | 1,422,803 | 1,155,579 | ' | ' |
Property and equipment, net | 472,940 | 518,940 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other non-current assets | 1,725,648 | 1,906,742 | ' | ' |
Total assets | 3,621,391 | 3,581,261 | ' | ' |
Accounts payable | 88,218 | 117,350 | ' | ' |
Current portion of long-term debt | 2,996 | 1,977 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Other current liabilities | 469,449 | 491,141 | ' | ' |
Total current liabilities | 560,663 | 610,468 | ' | ' |
Long-term debt, net of current portion | 596,208 | 599,203 | ' | ' |
Other non-current liabilities | 117,707 | 135,770 | ' | ' |
Total liabilities | 1,274,578 | 1,345,441 | ' | ' |
Total stockholders’ equity | 2,346,813 | 2,235,820 | ' | ' |
Total liabilities and stockholders’ equity | 3,621,391 | 3,581,261 | ' | ' |
Brocade Communications Systems, Inc. | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 396,710 | 284,466 | 101,367 | 23,455 |
Accounts receivable, net | 159,436 | 150,367 | ' | ' |
Inventories | 40,072 | 55,084 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other current assets | 127,709 | 124,690 | ' | ' |
Total current assets | 723,927 | 614,607 | ' | ' |
Property and equipment, net | 457,054 | 500,530 | ' | ' |
Investment in subsidiaries | 1,026,247 | 871,157 | ' | ' |
Other non-current assets | 1,626,031 | 1,814,729 | ' | ' |
Total assets | 3,833,259 | 3,801,023 | ' | ' |
Accounts payable | 68,190 | 92,661 | ' | ' |
Current portion of long-term debt | 2,996 | 2,226 | ' | ' |
Intercompany payables | 409,590 | 434,981 | ' | ' |
Other current liabilities | 335,261 | 346,959 | ' | ' |
Total current liabilities | 816,037 | 876,827 | ' | ' |
Long-term debt, net of current portion | 596,208 | 599,203 | ' | ' |
Other non-current liabilities | 74,201 | 89,173 | ' | ' |
Total liabilities | 1,486,446 | 1,565,203 | ' | ' |
Total stockholders’ equity | 2,346,813 | 2,235,820 | ' | ' |
Total liabilities and stockholders’ equity | 3,833,259 | 3,801,023 | ' | ' |
Subsidiary Guarantors | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 9,301 | 680 | 1,527 | 6,907 |
Accounts receivable, net | 328 | -1,847 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Intercompany receivables | 464,443 | 478,133 | ' | ' |
Other current assets | 7 | 514 | ' | ' |
Total current assets | 474,079 | 477,480 | ' | ' |
Property and equipment, net | 567 | 213 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other non-current assets | 95,624 | 90,766 | ' | ' |
Total assets | 570,270 | 568,459 | ' | ' |
Accounts payable | 28 | 0 | ' | ' |
Current portion of long-term debt | 0 | -249 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Other current liabilities | 7,075 | 7,628 | ' | ' |
Total current liabilities | 7,103 | 7,379 | ' | ' |
Long-term debt, net of current portion | 0 | 0 | ' | ' |
Other non-current liabilities | 0 | 2,429 | ' | ' |
Total liabilities | 7,103 | 9,808 | ' | ' |
Total stockholders’ equity | 563,167 | 558,651 | ' | ' |
Total liabilities and stockholders’ equity | 570,270 | 568,459 | ' | ' |
Non- Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 580,986 | 428,080 | 311,308 | 303,622 |
Accounts receivable, net | 89,834 | 84,619 | ' | ' |
Inventories | 5,272 | 13,095 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other current assets | 11,395 | 15,606 | ' | ' |
Total current assets | 687,487 | 541,400 | ' | ' |
Property and equipment, net | 15,319 | 18,197 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other non-current assets | 3,993 | 1,247 | ' | ' |
Total assets | 706,799 | 560,844 | ' | ' |
Accounts payable | 20,000 | 24,689 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Intercompany payables | 54,853 | 43,152 | ' | ' |
Other current liabilities | 125,360 | 136,329 | ' | ' |
Total current liabilities | 200,213 | 204,170 | ' | ' |
Long-term debt, net of current portion | 0 | 0 | ' | ' |
Other non-current liabilities | 43,506 | 44,168 | ' | ' |
Total liabilities | 243,719 | 248,338 | ' | ' |
Total stockholders’ equity | 463,080 | 312,506 | ' | ' |
Total liabilities and stockholders’ equity | 706,799 | 560,844 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Intercompany receivables | -464,443 | -478,133 | ' | ' |
Other current assets | 1,753 | 225 | ' | ' |
Total current assets | -462,690 | -477,908 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Investment in subsidiaries | -1,026,247 | -871,157 | ' | ' |
Other non-current assets | 0 | 0 | ' | ' |
Total assets | -1,488,937 | -1,349,065 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Intercompany payables | -464,443 | -478,133 | ' | ' |
Other current liabilities | 1,753 | 225 | ' | ' |
Total current liabilities | -462,690 | -477,908 | ' | ' |
Long-term debt, net of current portion | 0 | 0 | ' | ' |
Other non-current liabilities | 0 | 0 | ' | ' |
Total liabilities | -462,690 | -477,908 | ' | ' |
Total stockholders’ equity | -1,026,247 | -871,157 | ' | ' |
Total liabilities and stockholders’ equity | ($1,488,937) | ($1,349,065) | ' | ' |
Guarantor_And_NonGuarantor_Sub4
Guarantor And Non-Guarantor Subsidiaries (Schedule Of Condensed Consolidated Statement Of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Jul. 27, 2013 | Apr. 27, 2013 | Jan. 26, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Jan. 28, 2012 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Condensed Financial Statements, Captions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $2,222,864 | $2,237,770 | $2,147,442 |
Intercompany revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total net revenues | 558,800 | 536,551 | 538,784 | 588,729 | 578,357 | 555,332 | 543,439 | 560,642 | 2,222,864 | 2,237,770 | 2,147,442 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 813,985 | 854,751 | 863,908 |
Intercompany cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 813,985 | 854,751 | 863,908 |
Gross margin | 362,640 | 338,202 | 334,112 | 373,925 | 360,690 | 340,478 | 337,082 | 344,769 | 1,408,879 | 1,383,019 | 1,283,534 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,396 | 1,105,290 | 1,106,014 |
Intercompany operating expenses (income) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,396 | 1,105,290 | 1,106,014 |
Income (loss) from operations | 83,650 | 74,363 | 57,179 | 93,291 | 86,320 | 70,221 | 51,769 | 69,419 | 308,483 | 277,729 | 177,520 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 21,978 | -53,328 | -98,092 |
Income before income tax | ' | ' | ' | ' | ' | ' | ' | ' | 330,461 | 224,401 | 79,428 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 121,838 | 29,220 | 28,818 |
Equity in net earnings (losses) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 208,623 | 195,181 | 50,610 |
Brocade Communications Systems, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,347,055 | 1,409,705 | 1,285,732 |
Intercompany revenues | ' | ' | ' | ' | ' | ' | ' | ' | 25,507 | 44,152 | 88,063 |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,372,562 | 1,453,857 | 1,373,795 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 534,699 | 559,835 | 531,162 |
Intercompany cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | -58,050 | -35,070 | -2,263 |
Total cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 476,649 | 524,765 | 528,899 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 895,913 | 929,092 | 844,896 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 826,239 | 827,318 | 821,018 |
Intercompany operating expenses (income) | ' | ' | ' | ' | ' | ' | ' | ' | -127,997 | -138,197 | -138,789 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 698,242 | 689,121 | 682,229 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 197,671 | 239,971 | 162,667 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 25,481 | -49,470 | 109,902 |
Income before income tax | ' | ' | ' | ' | ' | ' | ' | ' | 223,152 | 190,501 | 272,569 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 117,654 | 20,432 | 22,115 |
Equity in net earnings (losses) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 103,516 | 25,112 | -199,844 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 209,014 | 195,181 | 50,610 |
Subsidiary Guarantors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,257 | 4,685 | 27,569 |
Intercompany revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1,753 |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,257 | 4,685 | 29,322 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 38,991 | 49,935 | 85,540 |
Intercompany cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 38,991 | 49,935 | 85,540 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | -34,734 | -45,250 | -56,218 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 34,175 | 56,838 | 76,645 |
Intercompany operating expenses (income) | ' | ' | ' | ' | ' | ' | ' | ' | -22,443 | -27,319 | -25,694 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 11,732 | 29,519 | 50,951 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -46,466 | -74,769 | -107,169 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 258 | 4 | -7,518 |
Income before income tax | ' | ' | ' | ' | ' | ' | ' | ' | -46,208 | -74,765 | -114,687 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,190 | 0 | 46 |
Equity in net earnings (losses) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | -47,398 | -74,765 | -114,733 |
Non- Guarantor Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 871,552 | 823,380 | 834,141 |
Intercompany revenues | ' | ' | ' | ' | ' | ' | ' | ' | 22,123 | 21,709 | 35,980 |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 893,675 | 845,089 | 870,121 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 232,807 | 234,889 | 233,448 |
Intercompany cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 105,680 | 100,931 | 128,059 |
Total cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 338,487 | 335,820 | 361,507 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 555,188 | 509,269 | 508,614 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 247,470 | 231,226 | 222,109 |
Intercompany operating expenses (income) | ' | ' | ' | ' | ' | ' | ' | ' | 150,440 | 165,516 | 164,483 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 397,910 | 396,742 | 386,592 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 157,278 | 112,527 | 122,022 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -3,370 | -3,862 | -200,476 |
Income before income tax | ' | ' | ' | ' | ' | ' | ' | ' | 153,908 | 108,665 | -78,454 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,994 | 8,788 | 6,657 |
Equity in net earnings (losses) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 150,914 | 99,877 | -85,111 |
Consolidating Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Intercompany revenues | ' | ' | ' | ' | ' | ' | ' | ' | -47,630 | -65,861 | -125,796 |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | -47,630 | -65,861 | -125,796 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 7,488 | 10,092 | 13,758 |
Intercompany cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | -47,630 | -65,861 | -125,796 |
Total cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | -40,142 | -55,769 | -112,038 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | -7,488 | -10,092 | -13,758 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -7,488 | -10,092 | -13,758 |
Intercompany operating expenses (income) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -7,488 | -10,092 | -13,758 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -391 | 0 | 0 |
Income before income tax | ' | ' | ' | ' | ' | ' | ' | ' | -391 | 0 | 0 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Equity in net earnings (losses) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -103,516 | -25,112 | 199,844 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ($103,907) | ($25,112) | $199,844 |
Guarantor_And_NonGuarantor_Sub5
Guarantor And Non-Guarantor Subsidiaries (Schedule Of Condensed Consolidated Statement Of Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Condensed Financial Statements, Captions | ' | ' | ' |
Net income (loss) | $208,623 | $195,181 | $50,610 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Change in unrealized gains and losses | -1,748 | -3,468 | -1,831 |
Net gains and losses reclassified into earnings | -376 | 7,433 | -6,444 |
Net unrealized gains (losses) on cash flow hedges | -2,124 | 3,965 | -8,275 |
Foreign currency translation adjustments | -1,456 | -1,833 | -894 |
Total other comprehensive income (loss) | -3,580 | 2,132 | -9,169 |
Total comprehensive income (loss) | 205,043 | 197,313 | 41,441 |
Brocade Communications Systems, Inc. | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net income (loss) | 209,014 | 195,181 | 50,610 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Change in unrealized gains and losses | 0 | 0 | -6,701 |
Net gains and losses reclassified into earnings | 0 | 0 | 0 |
Net unrealized gains (losses) on cash flow hedges | 0 | 0 | -6,701 |
Foreign currency translation adjustments | 1,021 | 128 | -89 |
Total other comprehensive income (loss) | 1,021 | 128 | -6,790 |
Total comprehensive income (loss) | 210,035 | 195,309 | 43,820 |
Subsidiary Guarantors | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net income (loss) | -47,398 | -74,765 | -114,733 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Change in unrealized gains and losses | 0 | 0 | 0 |
Net gains and losses reclassified into earnings | 0 | 0 | 0 |
Net unrealized gains (losses) on cash flow hedges | 0 | 0 | 0 |
Foreign currency translation adjustments | -628 | 11 | 458 |
Total other comprehensive income (loss) | -628 | 11 | 458 |
Total comprehensive income (loss) | -48,026 | -74,754 | -114,275 |
Non- Guarantor Subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net income (loss) | 150,914 | 99,877 | -85,111 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Change in unrealized gains and losses | -1,748 | -3,468 | 4,870 |
Net gains and losses reclassified into earnings | -376 | 7,433 | -6,444 |
Net unrealized gains (losses) on cash flow hedges | -2,124 | 3,965 | -1,574 |
Foreign currency translation adjustments | -1,849 | -1,972 | -1,263 |
Total other comprehensive income (loss) | -3,973 | 1,993 | -2,837 |
Total comprehensive income (loss) | 146,941 | 101,870 | -87,948 |
Consolidating Adjustments | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net income (loss) | -103,907 | -25,112 | 199,844 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Change in unrealized gains and losses | 0 | 0 | 0 |
Net gains and losses reclassified into earnings | 0 | 0 | 0 |
Net unrealized gains (losses) on cash flow hedges | 0 | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 0 |
Total comprehensive income (loss) | ($103,907) | ($25,112) | $199,844 |
Guarantor_And_NonGuarantor_Sub6
Guarantor And Non-Guarantor Subsidiaries (Schedule Of Condensed Consolidated Statement Of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 |
Condensed Financial Statements, Captions | ' | ' | ' |
Net cash provided by (used in) operating activities | $451,029 | $590,870 | $449,232 |
Purchases of short-term investments | 0 | 0 | -38 |
Proceeds from maturities and sale of short-term investments | 0 | 952 | 1,604 |
Purchases of property and equipment | -52,371 | -72,797 | -96,797 |
Net cash paid in connection with acquisition | -44,629 | 0 | 0 |
Proceeds from collection of convertible note receivable | 70,000 | 0 | 0 |
Proceeds from sale of subsidiary | 0 | 35 | 3,905 |
Net cash provided by (used in) investing activities | -27,000 | -71,810 | -91,326 |
Proceeds from senior unsecured notes | 296,250 | 0 | 0 |
Proceeds from term loan | 0 | 0 | 198,950 |
Payment of principal related to senior secured notes | -300,000 | 0 | 0 |
Payment of principal related to the term loan | 0 | -190,000 | -359,898 |
Payment of debt issuance costs related to senior unsecured notes | -992 | 0 | 0 |
Payment of fees related to the term loan | 0 | 0 | -1,167 |
Payment of principal related to capital leases | -1,627 | -1,866 | -1,761 |
Common stock repurchases | -240,000 | -130,209 | -210,698 |
Proceeds from issuance of common stock | 93,771 | 98,791 | 97,152 |
Excess tax benefits from stock-based compensation | 3,189 | 5,141 | 312 |
Net cash provided by (used in) financing activities | -149,409 | -218,143 | -277,110 |
Effect of exchange rate fluctuations on cash and cash equivalents | -849 | -1,893 | -578 |
Net increase (decrease) in cash and cash equivalents | 273,771 | 299,024 | 80,218 |
Cash and cash equivalents, beginning of year | 713,226 | 414,202 | 333,984 |
Cash and cash equivalents, end of year | 986,997 | 713,226 | 414,202 |
Brocade Communications Systems, Inc. | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net cash provided by (used in) operating activities | 281,478 | 464,097 | 436,714 |
Purchases of short-term investments | ' | ' | 0 |
Proceeds from maturities and sale of short-term investments | ' | 0 | 0 |
Purchases of property and equipment | -44,786 | -62,791 | -86,447 |
Net cash paid in connection with acquisition | -44,769 | ' | ' |
Proceeds from collection of convertible note receivable | 70,000 | ' | ' |
Proceeds from sale of subsidiary | ' | 35 | 4,966 |
Net cash provided by (used in) investing activities | -19,555 | -62,756 | -81,481 |
Proceeds from senior unsecured notes | 296,250 | ' | ' |
Proceeds from term loan | ' | ' | 198,950 |
Payment of principal related to senior secured notes | -300,000 | ' | ' |
Payment of principal related to the term loan | ' | -190,000 | -359,898 |
Payment of debt issuance costs related to senior unsecured notes | -992 | ' | ' |
Payment of fees related to the term loan | ' | ' | -1,167 |
Payment of principal related to capital leases | -1,627 | -1,866 | -1,761 |
Common stock repurchases | -240,000 | -130,209 | -210,698 |
Proceeds from issuance of common stock | 93,771 | 98,791 | 97,152 |
Excess tax benefits from stock-based compensation | 2,919 | 5,042 | 101 |
Net cash provided by (used in) financing activities | -149,679 | -218,242 | -277,321 |
Effect of exchange rate fluctuations on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 112,244 | 183,099 | 77,912 |
Cash and cash equivalents, beginning of year | 284,466 | 101,367 | 23,455 |
Cash and cash equivalents, end of year | 396,710 | 284,466 | 101,367 |
Subsidiary Guarantors | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net cash provided by (used in) operating activities | 8,503 | -1,799 | -5,852 |
Purchases of short-term investments | ' | ' | -38 |
Proceeds from maturities and sale of short-term investments | ' | 952 | 1,604 |
Purchases of property and equipment | -22 | 0 | -33 |
Net cash paid in connection with acquisition | 140 | ' | ' |
Proceeds from collection of convertible note receivable | 0 | ' | ' |
Proceeds from sale of subsidiary | ' | 0 | -1,061 |
Net cash provided by (used in) investing activities | 118 | 952 | 472 |
Proceeds from senior unsecured notes | 0 | ' | ' |
Proceeds from term loan | ' | ' | 0 |
Payment of principal related to senior secured notes | 0 | ' | ' |
Payment of principal related to the term loan | ' | 0 | 0 |
Payment of debt issuance costs related to senior unsecured notes | 0 | ' | ' |
Payment of fees related to the term loan | ' | ' | 0 |
Payment of principal related to capital leases | 0 | 0 | 0 |
Common stock repurchases | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of exchange rate fluctuations on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 8,621 | -847 | -5,380 |
Cash and cash equivalents, beginning of year | 680 | 1,527 | 6,907 |
Cash and cash equivalents, end of year | 9,301 | 680 | 1,527 |
Non- Guarantor Subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net cash provided by (used in) operating activities | 161,048 | 128,572 | 18,370 |
Purchases of short-term investments | ' | ' | 0 |
Proceeds from maturities and sale of short-term investments | ' | 0 | 0 |
Purchases of property and equipment | -7,563 | -10,006 | -10,317 |
Net cash paid in connection with acquisition | 0 | ' | ' |
Proceeds from collection of convertible note receivable | 0 | ' | ' |
Proceeds from sale of subsidiary | ' | 0 | 0 |
Net cash provided by (used in) investing activities | -7,563 | -10,006 | -10,317 |
Proceeds from senior unsecured notes | 0 | ' | ' |
Proceeds from term loan | ' | ' | 0 |
Payment of principal related to senior secured notes | 0 | ' | ' |
Payment of principal related to the term loan | ' | 0 | 0 |
Payment of debt issuance costs related to senior unsecured notes | 0 | ' | ' |
Payment of fees related to the term loan | ' | ' | 0 |
Payment of principal related to capital leases | 0 | 0 | 0 |
Common stock repurchases | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 270 | 99 | 211 |
Net cash provided by (used in) financing activities | 270 | 99 | 211 |
Effect of exchange rate fluctuations on cash and cash equivalents | -849 | -1,893 | -578 |
Net increase (decrease) in cash and cash equivalents | 152,906 | 116,772 | 7,686 |
Cash and cash equivalents, beginning of year | 428,080 | 311,308 | 303,622 |
Cash and cash equivalents, end of year | 580,986 | 428,080 | 311,308 |
Consolidating Adjustments | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' |
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Purchases of short-term investments | ' | ' | 0 |
Proceeds from maturities and sale of short-term investments | ' | 0 | 0 |
Purchases of property and equipment | 0 | 0 | 0 |
Net cash paid in connection with acquisition | 0 | ' | ' |
Proceeds from collection of convertible note receivable | 0 | ' | ' |
Proceeds from sale of subsidiary | ' | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Proceeds from senior unsecured notes | 0 | ' | ' |
Proceeds from term loan | ' | ' | 0 |
Payment of principal related to senior secured notes | 0 | ' | ' |
Payment of principal related to the term loan | ' | 0 | 0 |
Payment of debt issuance costs related to senior unsecured notes | 0 | ' | ' |
Payment of fees related to the term loan | ' | ' | 0 |
Payment of principal related to capital leases | 0 | 0 | 0 |
Common stock repurchases | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of exchange rate fluctuations on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 | 0 |
Cash and cash equivalents, end of year | $0 | $0 | $0 |
Quarterly_Summary_Schedule_of_
Quarterly Summary (Schedule of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Oct. 26, 2013 | Jul. 27, 2013 | Apr. 27, 2013 | Jan. 26, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Jan. 28, 2012 | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | |
Selected Quarterly Financial Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net revenues | $558,800,000 | $536,551,000 | $538,784,000 | $588,729,000 | $578,357,000 | $555,332,000 | $543,439,000 | $560,642,000 | $2,222,864,000 | $2,237,770,000 | $2,147,442,000 | |
Gross margin | 362,640,000 | 338,202,000 | 334,112,000 | 373,925,000 | 360,690,000 | 340,478,000 | 337,082,000 | 344,769,000 | 1,408,879,000 | 1,383,019,000 | 1,283,534,000 | |
Income from operations | 83,650,000 | 74,363,000 | 57,179,000 | 93,291,000 | 86,320,000 | 70,221,000 | 51,769,000 | 69,419,000 | 308,483,000 | 277,729,000 | 177,520,000 | |
Net income (loss) | 64,233,000 | 118,696,000 | [1] | 46,949,000 | -21,255,000 | 54,001,000 | 43,300,000 | 39,296,000 | 58,584,000 | ' | ' | ' |
Net income (loss) per-share—basic | $0.14 | $0.26 | [1] | $0.10 | ($0.05) | $0.12 | $0.09 | $0.09 | $0.13 | $0.46 | $0.43 | $0.11 |
Net income (loss) per-share—diluted | $0.14 | $0.26 | [1] | $0.10 | ($0.05) | $0.11 | $0.09 | $0.08 | $0.12 | $0.45 | $0.41 | $0.10 |
Shares used in per-share calculation—basic | 444,642 | 449,446 | 453,133 | 454,843 | 459,333 | 457,147 | 457,541 | 452,494 | 450,516 | 456,629 | 474,259 | |
Shares used in per-share calculation—diluted | 460,237 | 461,344 | 466,919 | 454,843 | 474,213 | 469,571 | 476,848 | 468,738 | 463,705 | 472,343 | 497,030 | |
Brocade Price Per Share High | $8.43 | $6.69 | $6.15 | $5.80 | $6.44 | $5.63 | $6.17 | $6.05 | ' | ' | ' | |
Brocade Price Per Share Low | $6.28 | $5.14 | $5.38 | $5.17 | $4.83 | $4.18 | $5.19 | $4.15 | ' | ' | ' | |
Quarterly Financial Information, Explanatory Disclosure | ' | 'The quarter ended July 27, 2013, includes the impact of the nonrecurring gain of $76.8 million resulting from the litigation settlement with A10 Networks, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Quarterly Financial Information, Explanatory Note, Period | ' | 'The quarter ended July 27, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | ' | $76,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The quarter ended July 27, 2013, includes the impact of the nonrecurring gain of $76.8 million resulting from the litigation settlement with A10 Networks, Inc. |
Valuation_And_Qualifying_Accou1
Valuation And Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 26, 2013 | Oct. 27, 2012 | Oct. 29, 2011 | |||
Allowance for doubtful accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure | ' | ' | ' | |||
Balance at Beginning of Period | $833 | $1,388 | $1,838 | |||
Additions Charged to Revenues | 319 | 1,482 | 1,357 | |||
Deductions (1) | -577 | [1] | -2,037 | [1] | -1,807 | [1] |
Balance at End of Period | 575 | 833 | 1,388 | |||
Sales Allowances | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure | ' | ' | ' | |||
Balance at Beginning of Period | 9,759 | 5,011 | 4,883 | |||
Additions Charged to Revenues | 8,885 | 10,947 | 9,048 | |||
Deductions (1) | -11,323 | [1] | -6,199 | [1] | -8,920 | [1] |
Balance at End of Period | $7,321 | $9,759 | $5,011 | |||
[1] | Deductions related to the allowance for doubtful accounts and sales allowances represent amounts written off against the allowance and recoveries. |