Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Aug. 02, 2014 | Aug. 29, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'BROCADE COMMUNICATIONS SYSTEMS INC | ' |
Entity Central Index Key | '0001009626 | ' |
Current Fiscal Year End Date | '--11-01 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 2-Aug-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 432,003,141 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Net revenues: | ' | ' | ' | ' |
Product | $457,797 | $447,993 | $1,375,282 | $1,401,986 |
Service | 87,667 | 88,558 | 271,627 | 262,078 |
Total net revenues | 545,464 | 536,551 | 1,646,909 | 1,664,064 |
Cost of revenues: | ' | ' | ' | ' |
Product | 145,518 | 160,441 | 441,416 | 499,415 |
Service | 38,233 | 37,908 | 116,818 | 118,410 |
Total cost of revenues | 183,751 | 198,349 | 558,234 | 617,825 |
Gross margin | 361,713 | 338,202 | 1,088,675 | 1,046,239 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 84,152 | 92,969 | 261,862 | 289,088 |
Sales and marketing | 137,262 | 139,220 | 409,524 | 433,547 |
General and administrative | 22,140 | 18,526 | 63,395 | 57,640 |
Amortization of intangible assets | 131 | 13,124 | 10,145 | 41,131 |
Restructuring, goodwill impairment, and other related costs (Note 7) | 131 | 0 | 89,051 | 0 |
Gain on sale of network adapter business | 0 | 0 | -4,884 | 0 |
Total operating expenses | 243,816 | 263,839 | 829,093 | 821,406 |
Income from operations | 117,897 | 74,363 | 259,582 | 224,833 |
Interest expense | -9,176 | -9,247 | -27,606 | -46,047 |
Interest and other income, net | 5,299 | 76,684 | 3,943 | 76,781 |
Income before income tax | 114,020 | 141,800 | 235,919 | 255,567 |
Income tax expense | 26,668 | 23,104 | 81,367 | 111,177 |
Net income | $87,352 | $118,696 | $154,552 | $144,390 |
Net income per share—basic | $0.20 | $0.26 | $0.35 | $0.32 |
Net income per share—diluted | $0.20 | $0.26 | $0.34 | $0.31 |
Shares used in per share calculation—basic | 432,448 | 449,446 | 436,396 | 452,474 |
Shares used in per share calculation—diluted | 441,789 | 461,344 | 448,596 | 464,861 |
Cash dividends declared per share | $0.04 | $0 | $0.04 | $0 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | ||||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net income | $87,352 | $118,696 | $154,552 | $144,390 | ||||
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | -155 | -1,000 | 14 | -2,998 | ||||
Net gains and losses reclassified into earnings | -218 | [1] | -10 | [1] | -217 | [1] | -214 | [1] |
Net unrealized losses on cash flow hedges | -373 | -1,010 | -203 | -3,212 | ||||
Foreign currency translation adjustments | -191 | -1,470 | 284 | -3,612 | ||||
Total other comprehensive income (loss) | -564 | -2,480 | 81 | -6,824 | ||||
Total comprehensive income | $86,788 | $116,216 | $154,633 | $137,566 | ||||
[1] | For Condensed Consolidated Statements of Income classification of amounts reclassified from accumulated other comprehensive loss, see Note 10, “Derivative Instruments and Hedging Activities,†of the Notes to Condensed Consolidated Financial Statements. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Aug. 02, 2014 | Oct. 26, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,149,387 | $986,997 |
Accounts receivable, net of allowances for doubtful accounts of $531 and $575 at August 2, 2014, and October 26, 2013, respectively | 191,816 | 249,598 |
Inventories | 40,586 | 45,344 |
Deferred tax assets | 113,133 | 98,018 |
Prepaid expenses and other current assets | 47,238 | 42,846 |
Total current assets | 1,542,160 | 1,422,803 |
Property and equipment, net | 448,195 | 472,940 |
Goodwill | 1,556,361 | 1,645,437 |
Intangible assets, net | 22,703 | 40,258 |
Non-current deferred tax assets | 792 | 1,585 |
Other assets | 31,679 | 38,368 |
Total assets | 3,601,890 | 3,621,391 |
Current liabilities: | ' | ' |
Accounts payable | 84,242 | 88,218 |
Accrued employee compensation | 132,107 | 145,996 |
Deferred revenue | 225,353 | 226,696 |
Current restructuring liabilities | 2,670 | 16,418 |
Current portion of long-term debt | 1,817 | 2,996 |
Other accrued liabilities | 58,245 | 80,339 |
Total current liabilities | 504,434 | 560,663 |
Long-term debt, net of current portion | 595,420 | 596,208 |
Non-current restructuring liabilities | 3,218 | 1,008 |
Non-current deferred revenue | 73,714 | 76,426 |
Non-current income tax liability | 45,271 | 38,680 |
Non-current deferred tax liabilities | 41,679 | 0 |
Other non-current liabilities | 1,553 | 1,593 |
Total liabilities | 1,265,289 | 1,274,578 |
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: 432,664 and 445,285 shares at August 2, 2014, and October 26, 2013, respectively | 433 | 445 |
Additional paid-in capital | 1,765,589 | 1,915,152 |
Accumulated other comprehensive loss | -13,363 | -13,444 |
Retained earnings | 583,942 | 444,660 |
Total stockholders’ equity | 2,336,601 | 2,346,813 |
Total liabilities and stockholders’ equity | $3,601,890 | $3,621,391 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $531 | $575 |
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 | 432,664 | 445,285 |
Common stock, shares outstanding | 432,664 | 445,285 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | ||
Cash flows from operating activities: | ' | ' | ||
Net income | $154,552 | $144,390 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ||
Excess tax benefits from stock-based compensation | -37,698 | -6,909 | ||
Non-cash tax charges | 0 | 78,206 | ||
Depreciation and amortization | 80,370 | 139,005 | ||
Loss on disposal of property and equipment | 3,330 | 4,030 | ||
Gain on sale of network adapter business | -4,884 | 0 | ||
Amortization of debt issuance costs and original issue discount | 856 | 937 | ||
Call premium cost and write-off of original issue discount and debt issuance costs related to lenders that did not participate in refinancing | 0 | 5,360 | ||
Gain (Loss) on Sale of Equity Investments | -5,242 | 0 | ||
Provision for doubtful accounts receivable and sales allowances | 5,520 | 6,897 | ||
Non-cash stock-based compensation expense | 61,214 | 57,091 | ||
Goodwill impairment charge | 83,382 | [1],[2] | 0 | [1] |
Changes in assets and liabilities: | ' | ' | ||
Accounts receivable | 52,261 | 7,950 | ||
Inventories | 4,757 | 18,915 | ||
Prepaid expenses and other assets | -4,796 | -69,017 | ||
Deferred tax assets | 47 | 344 | ||
Accounts payable | -4,409 | -21,744 | ||
Accrued employee compensation | -38,136 | -82,457 | ||
Deferred revenue | -4,020 | 5,950 | ||
Other accrued liabilities | 48,178 | -7,082 | ||
Restructuring liabilities | -11,538 | -606 | ||
Net cash provided by operating activities | 383,744 | 281,260 | ||
Cash flows from investing activities: | ' | ' | ||
Purchases of non-marketable equity investments | -223 | 0 | ||
Proceeds from sale of non-marketable equity investment | 10,748 | 0 | ||
Purchases of property and equipment | -41,175 | -41,949 | ||
Net cash paid in connection with acquisition | 0 | -44,629 | ||
Proceeds from collection of note receivable | 250 | 0 | ||
Proceeds from sale of network adapter business | 9,995 | 0 | ||
Net cash used in investing activities | -20,405 | -86,578 | ||
Cash flows from financing activities: | ' | ' | ||
Proceeds from senior unsecured notes | 0 | 296,250 | ||
Payment of principal related to senior secured notes | 0 | -300,000 | ||
Payment of debt issuance costs related to senior unsecured notes | 0 | -992 | ||
Payment of principal related to capital leases | -2,382 | -1,536 | ||
Common stock repurchases | -302,560 | -187,360 | ||
Proceeds from issuance of common stock | 81,293 | 71,858 | ||
Payment of cash dividends to stockholders | -15,270 | 0 | ||
Excess tax benefits from stock-based compensation | 37,698 | 6,909 | ||
Net cash used in financing activities | -201,221 | -114,871 | ||
Effect of exchange rate fluctuations on cash and cash equivalents | 272 | -2,944 | ||
Net increase in cash and cash equivalents | 162,390 | 76,867 | ||
Cash and cash equivalents, beginning of period | 986,997 | 713,226 | ||
Cash and cash equivalents, end of period | 1,149,387 | 790,093 | ||
Supplemental disclosures of cash flow information: | ' | ' | ||
Cash paid for interest | 34,625 | 39,693 | ||
Cash paid for income taxes | 20,941 | 14,918 | ||
Supplemental schedule of non-cash investing activities: | ' | ' | ||
Acquisition of property and equipment through capital leases | 0 | 1,042 | ||
Convertible note receivable obtained from litigation settlement | $0 | $70,000 | ||
[1] | For additional discussion on goodwill impairment, see Note 4, “Goodwill and Intangible Assets,†of the Notes to Condensed Consolidated Financial Statements. | |||
[2] | In the second quarter of fiscal year 2014, the Company made a strategic shift in the allocation of its engineering resources and has reduced its investment in the hardware-based Brocade ADX® products and increased investment in the software-based Brocade ADX products for Layer 4-7 applications. As a result of this change in strategy, the Company expects hardware-based Brocade ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge during the second fiscal quarter of 2014 because the book value of its Application Delivery Products (“ADPâ€) reporting unit net assets, which includes the Brocade ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted. |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Aug. 02, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis Of Presentation | ' |
Basis of Presentation | |
Brocade Communications Systems, Inc. (“Brocade” or the “Company”) has prepared the accompanying Condensed Consolidated Financial Statements pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Condensed Consolidated Balance Sheet as of October 26, 2013, was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 26, 2013. | |
The accompanying Condensed Consolidated Financial Statements are unaudited but, in the opinion of the Company’s management, reflect all adjustments—including normal recurring adjustments—that management considers necessary for a fair presentation of these Condensed Consolidated Financial Statements. The results for the interim periods presented are not necessarily indicative of the results for the full fiscal year or any other future period. | |
The Company’s fiscal year is a 52- or 53-week period ending on the last Saturday in October or the first Saturday in November, respectively. Fiscal year 2014 is a 53-week fiscal year and fiscal year 2013 is a 52-week fiscal year. The second quarter of fiscal year 2014 is a 14-week quarter, which is one week longer than a typical quarter. | |
The Condensed 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 Condensed Consolidated Financial Statements | |
The preparation of condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, revenue recognition, 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 | 9 Months Ended |
Aug. 02, 2014 | |
Accounting Policies [Abstract] | ' |
Summary Of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
There have been no material changes in the Company’s significant accounting policies for the nine months ended August 2, 2014, as compared to the significant accounting policies disclosed in Brocade’s Annual Report on Form 10-K for the fiscal year ended October 26, 2013. | |
New Accounting Pronouncements or Updates Recently Adopted | |
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”) into net income 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. The Company adopted this update in the first quarter of fiscal year 2014, presenting the required information in Note 12, “Accumulated Other Comprehensive Income (Loss),” of the Notes to Condensed Consolidated Financial Statements. | |
Recent Accounting Pronouncements or Updates That Are Not Yet Effective | |
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. Early adoption and retrospective application are permitted. 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. | |
In April 2014, the FASB issued an update to ASC 205 Presentation of Financial Statements (“ASC 205”) and ASC 360 Property, Plant, and Equipment (“ASC 360”): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this update, a discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. Only those disposals of components of an entity that represent a strategic shift that has, or will have, a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements. This update to ASC 205 and ASC 360 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2016. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued. | |
In May 2014, the FASB issued an update to ASC 606 Revenue from Contracts with Customers (“ASC 606”) that will supersede virtually all existing revenue guidance. Under this update, an entity is required to recognize revenue upon transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. As such, an entity will need to use more judgment and make more estimates than under the current guidance. This update to ASC 606 should be applied retrospectively either to each prior reporting period presented in the financial statements, or only to the most current reporting period presented in the financial statements with a cumulative effect adjustment recorded in the retained earnings. This update to ASC 606 becomes effective and will be adopted by the Company in the first quarter of fiscal year 2018. Early adoption is not permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements. | |
Concentrations | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company’s cash and cash equivalents are primarily maintained at four 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 August 2, 2014, three customers accounted for 13%, 12%, and 10%, respectively, of total accounts receivable, for a combined total of 35% of total accounts receivable. As of October 26, 2013, four customers accounted for 18%, 12%, 11%, and 11%, respectively, of total accounts receivable, for a combined total of 52% 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 three months ended August 2, 2014, three customers accounted for 21%, 16%, and 11%, respectively, of the Company’s total net revenues for a combined total of 48% of total net revenues. For the three months ended July 27, 2013, three customers accounted for 20%, 15%, and 12%, respectively, of the Company’s total net revenues for a combined total of 47% of total net revenues. | |
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 contract manufacturers (“CMs”) for the manufacturing of its products. Although the Company uses standard parts and components for its products where possible, the Company’s CMs currently purchase, on the Company’s behalf, several key product components from single or limited supplier sources. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Aug. 02, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions and Divestitures | ' |
Acquisitions and Divestitures | |
Divestitures | |
On January 17, 2014, the Company completed the sale of its network adapter business to QLogic Corporation, as part of the Company’s business strategy to focus development on a portfolio of high performance networking products and services—both hardware and software-based—that meet the demands of today’s data centers whether virtualized or cloud based. | |
The net carrying amount of the network adapter business’ assets and liabilities at the time of the divestiture was $5.1 million, comprised primarily of associated goodwill of $4.1 million. The sale resulted in a gain of $4.9 million, which is presented in the Company’s Condensed Consolidated Statements of Income as “Gain on sale of network adapter business.” | |
Acquisitions | |
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 software-based network operating system suite is deployed on conventional computer hardware platforms for multiple applications in network virtualization, software-defined networking (“SDN”), Network Functions Virtualization (“NFV”), and other private/public cloud computing platforms. This acquisition complements Brocade’s investments in Internet Protocol (“IP”) switches and router products and enables Brocade to pursue new market opportunities in data center virtualization, including public cloud, virtual private cloud, and managed services. | |
The results of operations of Vyatta are included in the Company’s Condensed Consolidated Statement of Operations 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 was held in escrow for a period of 18 months from the closing of the acquisition and was subsequently released in the third quarter of fiscal year 2014. 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. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
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): | ||||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||
Goodwill | $ | 1,556,361 | $ | 1,645,437 | ||||||||||||
In-process research and development (1) | 12,260 | 21,590 | ||||||||||||||
Finite-lived intangible assets | ||||||||||||||||
Total intangible assets subject to amortization | 10,443 | 18,668 | ||||||||||||||
Total intangible assets | $ | 1,579,064 | $ | 1,685,695 | ||||||||||||
-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. As an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, which the Company conducts 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 three months ended May 3, 2014, development work was completed on $9.3 million of the IPRD intangible asset and this completed IPRD intangible asset is being amortized as Core/developed technology. The development effort on the remaining IPRD intangible asset is expected to be completed in the first half of fiscal year 2016. | |||||||||||||||
The Company performed its annual IPRD impairment test using measurement data as of the first day of the second fiscal quarter of 2014. During the test, the Company elected 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 was 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 three months ended August 2, 2014, 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 for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||
SAN | IP Networking Products | Global Services | Total | |||||||||||||
Products | ||||||||||||||||
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 | |||||||||||||
Impairment (1) | — | (83,382 | ) | — | (83,382 | ) | ||||||||||
Divestitures (2) | (474 | ) | (3,657 | ) | — | (4,131 | ) | |||||||||
Tax and other adjustments during the nine months ended August 2, 2014 (3) | (52 | ) | (1,511 | ) | — | (1,563 | ) | |||||||||
Balance at August 2, 2014 | ||||||||||||||||
Goodwill | 176,352 | 1,353,807 | 155,416 | 1,685,575 | ||||||||||||
Accumulated impairment losses | — | (129,214 | ) | — | (129,214 | ) | ||||||||||
$ | 176,352 | $ | 1,224,593 | $ | 155,416 | $ | 1,556,361 | |||||||||
(1) | In the second quarter of fiscal year 2014, the Company made a strategic shift in the allocation of its engineering resources and has reduced its investment in the hardware-based Brocade ADX® products and increased investment in the software-based Brocade ADX products for Layer 4-7 applications. As a result of this change in strategy, the Company expects hardware-based Brocade ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge during the second fiscal quarter of 2014 because the book value of its Application Delivery Products (“ADP”) reporting unit net assets, which includes the Brocade ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted. | |||||||||||||||
(2) | The goodwill disposed relates to the sale of the Company’s network adapter business, see Note 3, “Acquisitions and Divestitures,” of the Notes to Condensed Consolidated Financial Statements. | |||||||||||||||
(3) | The goodwill adjustments during the nine months ended August 2, 2014, 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 occur or facts and circumstances change that would more likely than not reduce the fair value of a reporting unit below 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 applying various observable market-based multiples to the reporting unit’s operating results and then applying an appropriate control premium. For the fiscal year 2014 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 the impairment testing performed in the second fiscal quarter of 2014, 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 market segments that are comparable with the Company’s reporting units. | ||||||||||||||||
Based on the results of the annual goodwill impairment analysis performed during the second fiscal quarter of 2014, the Company determined that no impairment needed to be recorded for Storage Area Networking (“SAN”) Products, Ethernet Switching & Internet Protocol (“IP”) Routing, and Global Services reporting units as these reporting units passed the first step of goodwill impairment testing. | ||||||||||||||||
However, the Company determined that the fair value of the ADP reporting unit was below the reporting unit’s carrying value. Accordingly, the Company performed the second step of the goodwill impairment test to measure the amount of the impairment. During the second step, the Company assigned the ADP reporting unit’s fair value to the reporting unit’s assets and liabilities, using the relevant acquisition accounting guidance, to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of the reporting unit’s goodwill was then compared with the carrying value of the ADP reporting unit’s goodwill to record an impairment loss of $83.4 million, which is equal to the difference in values. | ||||||||||||||||
During the three months ended August 2, 2014, there were no events or changes in 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): | ||||||||||||||||
August 2, 2014 | Gross | Accumulated | Net | Weighted- | ||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
Trade name | $ | 460 | $ | 195 | $ | 265 | 2.26 | |||||||||
Core/developed technology | 10,370 | 1,364 | 9,006 | 4.42 | ||||||||||||
Customer relationships | 1,080 | 374 | 706 | 3.26 | ||||||||||||
Non-compete agreements | 810 | 344 | 466 | 2.26 | ||||||||||||
Total intangible assets (1) | $ | 12,720 | $ | 2,277 | $ | 10,443 | 4.19 | |||||||||
October 26, 2013 | Gross | Accumulated | Net | Weighted- | ||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
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 intangible assets | $ | 480,700 | $ | 462,032 | $ | 18,668 | 0.58 | |||||||||
(1) | During the nine months ended August 2, 2014, $477.3 million of 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 in the Condensed Consolidated Statements of Income (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Cost of revenues | $ | 552 | $ | 9,650 | $ | 7,410 | $ | 30,081 | ||||||||
Operating expenses | 131 | 13,124 | 10,145 | 41,131 | ||||||||||||
Total | $ | 683 | $ | 22,774 | $ | 17,555 | $ | 71,212 | ||||||||
The following table presents the estimated future amortization of finite-lived intangible assets as of August 2, 2014 (in thousands): | ||||||||||||||||
Fiscal Year | Estimated | |||||||||||||||
Future | ||||||||||||||||
Amortization | ||||||||||||||||
2014 (remaining three months) | $ | 683 | ||||||||||||||
2015 | 2,731 | |||||||||||||||
2016 | 2,419 | |||||||||||||||
2017 | 2,104 | |||||||||||||||
2018 | 1,884 | |||||||||||||||
Thereafter | 622 | |||||||||||||||
Total | $ | 10,443 | ||||||||||||||
Balance_Sheet_Details
Balance Sheet Details | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Balance Sheet Details [Abstract] | ' | |||||||||||||||
Balance Sheet Details | ' | |||||||||||||||
Balance Sheet Details | ||||||||||||||||
The following table provides details of selected balance sheet items (in thousands): | ||||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Inventories: | ||||||||||||||||
Raw materials | $ | 13,962 | $ | 14,048 | ||||||||||||
Finished goods | 26,624 | 31,296 | ||||||||||||||
Total | $ | 40,586 | $ | 45,344 | ||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Property and equipment, net: | ||||||||||||||||
Computer equipment | $ | 13,709 | $ | 16,006 | ||||||||||||
Software | 61,401 | 57,186 | ||||||||||||||
Engineering and other equipment (1) | 375,478 | 416,573 | ||||||||||||||
Furniture and fixtures (1) | 29,422 | 29,029 | ||||||||||||||
Leasehold improvements | 21,487 | 24,287 | ||||||||||||||
Land and building | 384,659 | 384,654 | ||||||||||||||
Subtotal | 886,156 | 927,735 | ||||||||||||||
Less: Accumulated depreciation and amortization (1), (2) | (437,961 | ) | (454,795 | ) | ||||||||||||
Total | $ | 448,195 | $ | 472,940 | ||||||||||||
(1) | Engineering and other equipment, furniture and fixtures, and accumulated depreciation and amortization include the following amounts under capital leases as of August 2, 2014, and October 26, 2013, respectively (in thousands): | |||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Cost | $ | 11,925 | $ | 11,925 | ||||||||||||
Accumulated depreciation | (6,747 | ) | (5,366 | ) | ||||||||||||
Total | $ | 5,178 | $ | 6,559 | ||||||||||||
(2) | The following table presents the depreciation and amortization of property and equipment included in the Condensed Consolidated Statements of Income (in thousands): | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, | July 27, | August 2, | July 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Depreciation and amortization expense | $ | 19,761 | $ | 22,873 | $ | 62,815 | $ | 67,793 | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
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 August 2, 2014. | ||||||||||||||||
The fair value accounting guidance permits companies to elect fair value measurement for many financial instruments and certain other items that are otherwise not required to be accounted for at fair value. The Company did not elect to measure any eligible financial instruments or other assets at fair value as of August 2, 2014, and October 26, 2013. | ||||||||||||||||
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. | ||||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis as of August 2, 2014, were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
August 2, 2014 | Active Markets | Observable | Unobservable | |||||||||||||
for Identical | Inputs | Inputs | ||||||||||||||
Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 799,144 | $ | 799,144 | $ | — | $ | — | ||||||||
Derivative assets | 523 | — | 523 | — | ||||||||||||
Total assets measured at fair value | $ | 799,667 | $ | 799,144 | $ | 523 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 273 | $ | — | $ | 273 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 273 | $ | — | $ | 273 | $ | — | ||||||||
(1) | Money market funds are reported within “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. | |||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis as of October 26, 2013, were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
October 26, 2013 | 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” in the Condensed Consolidated Balance Sheets. | |||||||||||||||
During the nine months ended August 2, 2014, the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value. |
Restructuring_and_Other_Costs
Restructuring and Other Costs | 9 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Restructuring and Other Costs | ' | |||||||||||||||||||
Restructuring and Other Costs | ||||||||||||||||||||
The following table provides details of the Company’s restructuring and other charges (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
August 2, | July 27, | August 2, | July 27, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Goodwill impairment (1) | $ | — | $ | — | $ | 83,382 | $ | — | ||||||||||||
Severance and Benefits | — | — | (1,788 | ) | — | |||||||||||||||
Lease Loss Reserve and Related Costs | 131 | — | 7,457 | — | ||||||||||||||||
Restructuring, goodwill impairment, and other related costs | $ | 131 | $ | — | $ | 89,051 | $ | — | ||||||||||||
(1) | For additional discussion on goodwill impairment, see Note 4, “Goodwill and Intangible Assets,” of the Notes to Condensed Consolidated Financial Statements. | |||||||||||||||||||
The following table provides a reconciliation of the Company’s beginning and ending restructuring liability balances (in thousands): | ||||||||||||||||||||
Fiscal 2013 Fourth Quarter Restructuring Plan | Prior Restructuring Plans | |||||||||||||||||||
Severance and Benefits | Contract Terminations and Other | Lease Loss Reserve and Related Costs | Lease Loss | Total | ||||||||||||||||
Reserve and Related Costs | ||||||||||||||||||||
Restructuring liabilities at October 26, 2013 | $ | 15,216 | $ | 416 | $ | — | $ | 1,794 | $ | 17,426 | ||||||||||
Restructuring and other charges | (1,788 | ) | — | 7,457 | — | 5,669 | ||||||||||||||
Cash payments | (13,258 | ) | (291 | ) | (2,978 | ) | (682 | ) | (17,209 | ) | ||||||||||
Translation adjustment | — | — | 2 | — | 2 | |||||||||||||||
Restructuring liabilities at August 2, 2014 | $ | 170 | $ | 125 | $ | 4,481 | $ | 1,112 | $ | 5,888 | ||||||||||
Current restructuring liabilities at August 2, 2014 | $ | 170 | $ | 125 | $ | 1,936 | $ | 439 | $ | 2,670 | ||||||||||
Non-current restructuring liabilities at August 2, 2014 | $ | — | $ | — | $ | 2,545 | $ | 673 | $ | 3,218 | ||||||||||
Fiscal 2013 Fourth Quarter Restructuring Plan | ||||||||||||||||||||
During the fiscal year ended October 26, 2013, and the first quarter of fiscal year 2014, the Company restructured certain business operations and reduced 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 restructuring plan included a workforce reduction of approximately 250 employees, primarily in the engineering, sales, and marketing organizations, as well as the cancellation of certain nonrecurring engineering agreements and exit from certain leased facilities. | ||||||||||||||||||||
In connection with the restructuring plan, the Company incurred aggregate charges of $31.1 million through August 2, 2014, primarily related to severance and benefits charges and lease loss reserve and related costs, and substantially completed the restructuring plan by the end of the first quarter of fiscal year 2014. | ||||||||||||||||||||
Severance and benefits charges incurred under this restructuring plan 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 associated outplacement services. 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 costs that will continue to be incurred under exited facilities’ lease contracts for the remaining term of the leases without economic benefit to the Company, reduced by estimated sublease income that could be reasonably obtained for these facilities. | ||||||||||||||||||||
The Company reevaluates its estimates and assumptions on a quarterly basis and makes adjustments to the restructuring liabilities balance if necessary. During the nine months ended August 2, 2014, the Company reversed approximately $1.8 million of severance and benefits charges due to actual cash payments to certain terminated employees being lower than original estimates as a result of the completion of the severance arrangements with these employees during the first quarter of fiscal year 2014. | ||||||||||||||||||||
The above restructuring and other related charges are included in “Restructuring, goodwill impairment, and other related costs” in the Condensed Consolidated Statements of Income. | ||||||||||||||||||||
Prior Restructuring Plans | ||||||||||||||||||||
Prior to fiscal year 2013, the Company also 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 2021. |
Borrowings
Borrowings | 9 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Borrowings | ' | |||||||||||||||||||
Borrowings | ||||||||||||||||||||
The following table provides details of the Company’s long-term debt (in thousands, except years and percentages): | ||||||||||||||||||||
August 2, 2014 | October 26, 2013 | |||||||||||||||||||
Maturity | Stated Annual Interest Rate | Amount | Effective Interest Rate | Amount | Effective Interest Rate | |||||||||||||||
Senior Secured Notes: | ||||||||||||||||||||
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 | % | 300,000 | 4.83 | % | ||||||||||||
Capital lease obligations | 2016 | 5.67% | 2,218 | 5.36 | % | 4,600 | 5.5 | % | ||||||||||||
Total long-term debt | 602,218 | 604,600 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Unamortized discount | 4,981 | 5,396 | ||||||||||||||||||
Current portion of long-term debt | 1,817 | 2,996 | ||||||||||||||||||
Long-term debt, net of current portion | $ | 595,420 | $ | 596,208 | ||||||||||||||||
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 16, “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 semiannually on January 15 and July 15 of each year. No payments were made toward the principal of the 2023 Notes during the nine months ended August 2, 2014. | ||||||||||||||||||||
As of August 2, 2014, and October 26, 2013, the fair value of the 2023 Notes was approximately $291.0 million and $281.1 million, respectively, which was 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 semiannually on January 15 and July 15 of each year. During the three months ended April 27, 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 16, “Guarantor and Non-Guarantor Subsidiaries,” of the Notes to Condensed Consolidated Financial Statements. | ||||||||||||||||||||
As of August 2, 2014, and October 26, 2013, the fair value of the 2020 Notes was approximately $316.1 million and $324.4 million, respectively, which was 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, 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 Condensed Consolidated Statements of Income for the nine months ended July 27, 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 certain of its 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 debts of the Company and its subsidiaries. Prior to discharge, the 2018 Indenture contained covenants and events of default substantially similar 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, January 2013, October 2013, and April 2014, 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 January 7, 2015. The term loan was prepaid in full, and there were no principal amounts or commitments outstanding under the term loan facility as of either August 2, 2014, or October 26, 2013. | ||||||||||||||||||||
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 August 2, 2014, and October 26, 2013. | ||||||||||||||||||||
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 August 2, 2014, our aggregate debt maturities based on outstanding principal were as follows (in thousands): | ||||||||||||||||||||
Fiscal Year | Principal | |||||||||||||||||||
Balances | ||||||||||||||||||||
2014 (remaining three months) | $ | 642 | ||||||||||||||||||
2015 | 1,286 | |||||||||||||||||||
2016 | 290 | |||||||||||||||||||
2017 | — | |||||||||||||||||||
2018 | — | |||||||||||||||||||
Thereafter | 600,000 | |||||||||||||||||||
Total | $ | 602,218 | ||||||||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments And Contingencies | ' | |||||||
Commitments and Contingencies | ||||||||
Product Warranties | ||||||||
The Company’s accrued liability for estimated future warranty costs is included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty costs during the nine months ended August 2, 2014, and July 27, 2013, respectively (in thousands): | ||||||||
Accrued Warranty | ||||||||
Nine Months Ended | ||||||||
August 2, | July 27, | |||||||
2014 | 2013 | |||||||
Beginning balance | $ | 8,632 | $ | 14,453 | ||||
Liabilities accrued for warranties issued during the period | 3,498 | 3,753 | ||||||
Warranty claims paid and used during the period | (4,063 | ) | (6,500 | ) | ||||
Changes in liability for pre-existing warranties during the period | (368 | ) | (2,050 | ) | ||||
Ending balance | $ | 7,699 | $ | 9,656 | ||||
In addition, the Company has 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 August 2, 2014, there have been no known 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 contract manufacturers (“CMs”) under which Brocade provides 12-month product forecasts and places purchase orders in advance 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, usable by, or sold to other customers of the CMs. | ||||||||
As of August 2, 2014, the Company’s aggregate commitment to the CMs for inventory components used in the manufacture of Brocade products was $172.1 million, which the Company expects to utilize during future normal ongoing operations within the next 12 months, net of a purchase commitments reserve of $3.3 million, which is reported within “Other accrued liabilities” in the Condensed Consolidated Balance Sheet as of August 2, 2014. The Company’s purchase commitments reserve reflects the Company’s estimate of purchase commitments it does not expect to consume in normal ongoing operations. | ||||||||
Income Taxes | ||||||||
The Company has several ongoing income tax audits. For additional discussion, see Note 13, “Income Taxes,” of the Notes to Condensed Consolidated Financial Statements. The Company believes it has adequate reserves for all open tax years. | ||||||||
Legal Proceedings | ||||||||
From time to time, the Company is subject to various 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 accrued by the Company. |
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
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. Instead, 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 a counterparty’s obligations 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 are 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 three and nine months ended August 2, 2014, and July 27, 2013, were the euro, the British pound, the Indian rupee, the Japanese yen, the Singapore dollar, the Chinese yuan, 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 eliminate, the impact of foreign currency exchange rate movements. | ||||||||||||||||
The Company’s foreign currency risk management program includes foreign currency derivatives with a 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 was not significant for the three and nine months ended August 2, 2014, and July 27, 2013. | ||||||||||||||||
Ineffective cash flow hedges are included in the Company’s net income as part of “Interest and other income (loss), net.” The amount recorded on ineffective cash flow hedges was not significant for the three and nine months ended August 2, 2014, and July 27, 2013, respectively. | ||||||||||||||||
Net gains (losses) relating to the effective portion of foreign currency derivatives recorded in the Condensed Consolidated Statements of Income are as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Cost of revenues | $ | 53 | $ | 2 | $ | 173 | $ | 31 | ||||||||
Research and development | (80 | ) | (2 | ) | (665 | ) | 53 | |||||||||
Sales and marketing | 236 | 10 | 657 | 152 | ||||||||||||
General and administrative | 37 | 1 | 75 | 6 | ||||||||||||
Total | $ | 246 | $ | 11 | $ | 240 | $ | 242 | ||||||||
We may choose not to hedge the foreign currency risk associated with our foreign currency exposures if we believe such exposure acts as a natural foreign currency hedge for other offsetting amounts denominated in the same currency, if the currency is difficult or too expensive to hedge, or if such exposure or the associated risk is insignificant. The net foreign currency exchange gains and losses recorded as part of “Interest and other income (loss), net” were losses of $0.2 million and $0.3 million for the three and nine months ended August 2, 2014, respectively, and gains of $0.1 million and $0.2 million for the three and nine months ended July 27, 2013, 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 August 2, 2014, the Company had gross unrealized loss positions of $0.3 million and gross unrealized gain positions of $0.5 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 U.S. dollars | As of August 2, 2014 | As of October 26, 2013 | As of August 2, 2014 | As of October 26, 2013 | ||||||||||||
Euro | $ | 12,553 | $ | 16,012 | $ | — | $ | 25,478 | ||||||||
British pound | 8,665 | 25,053 | — | — | ||||||||||||
Indian rupee | 5,778 | 17,444 | — | — | ||||||||||||
Singapore dollar | 4,082 | 12,867 | — | — | ||||||||||||
Japanese yen | 3,784 | 16,172 | — | — | ||||||||||||
Swiss franc | 3,445 | 11,066 | — | — | ||||||||||||
Total | $ | 38,307 | $ | 98,614 | $ | — | $ | 25,478 | ||||||||
The Company utilizes a rolling hedge strategy for the majority of its foreign currency derivative instruments with cash flow hedge accounting designation. All of the Company’s foreign currency forward contracts are single delivery, which are settled at maturity involving one cash payment. |
Stockholders_Equity_and_StockB
Stockholders' Equity and Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | |||||||||||||||
Stockholders' Equity and Stock-Based Compensation | ' | |||||||||||||||
Stockholders’ Equity and Stock-Based Compensation | ||||||||||||||||
Dividends | ||||||||||||||||
In the third quarter of fiscal year 2014, the Company’s Board of Directors approved the initiation of a quarterly cash dividend on the Company’s common stock. As of August 2, 2014, the Company’s Board of Directors declared the following dividends (in thousands, except per share amounts): | ||||||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Paid | Payment Date | ||||||||||||
May 22, 2014 | $ | 0.035 | June 10, 2014 | $ | 15,270 | July 2, 2014 | ||||||||||
No dividends were declared or paid by the Company during the first two quarters of fiscal year 2014. On August 21, 2014, the Company’s Board of Directors declared a cash dividend of $0.035 per share of the Company’s common stock for stockholders of record as of the close of market on September 10, 2014, to be paid on October 2, 2014. Future dividend payments are subject to review and approval by the Company’s Board of Directors. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
Stock-based compensation expense, net of estimated forfeitures, was included in the following line items of the Condensed Consolidated Statements of Income as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Cost of revenues | $ | 4,121 | $ | 3,858 | $ | 10,738 | $ | 11,345 | ||||||||
Research and development | 4,350 | 4,020 | 13,107 | 13,205 | ||||||||||||
Sales and marketing | 7,592 | 7,164 | 22,819 | 23,321 | ||||||||||||
General and administrative | 5,511 | 3,727 | 14,550 | 9,220 | ||||||||||||
Total stock-based compensation | $ | 21,574 | $ | 18,769 | $ | 61,214 | $ | 57,091 | ||||||||
The following table presents stock-based compensation expense, net of estimated forfeitures, by grant type (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Stock options, including variable options | $ | 1,072 | $ | 828 | $ | 3,602 | $ | 1,818 | ||||||||
Restricted stock units, including stock units with market conditions (altogether “RSUs”) | 13,970 | 11,202 | 45,957 | 38,351 | ||||||||||||
Employee stock purchase plan (“ESPP”) | 6,532 | 6,739 | 11,655 | 16,922 | ||||||||||||
Total stock-based compensation | $ | 21,574 | $ | 18,769 | $ | 61,214 | $ | 57,091 | ||||||||
The following table presents the unrecognized compensation expense, net of estimated forfeitures, of the Company’s equity compensation plans as of August 2, 2014, 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 | $ | 5,432 | 1.49 | |||||||||||||
RSUs | $ | 124,306 | 2.03 | |||||||||||||
ESPP | $ | 19,606 | 1.17 | |||||||||||||
The following table presents details on grants made by the Company for the following periods: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||
Granted | Weighted-Average | Granted | Weighted-Average | |||||||||||||
(in thousands) | Grant Date Fair Value | (in thousands) | Grant Date Fair Value | |||||||||||||
Stock options | 1,770 | $ | 3.16 | 2,875 | $ | 2.34 | ||||||||||
RSUs | 10,419 | $ | 9.81 | 11,519 | $ | 5.7 | ||||||||||
The total intrinsic value of stock options exercised for the nine months ended August 2, 2014, and July 27, 2013, was $22.3 million and $19.5 million, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
The tax effects allocated to each component of other comprehensive loss for the three months ended August 2, 2014, and July 27, 2013, are as follows (in thousands): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||||||||||
Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | |||||||||||||||||||
Unrealized gains (losses) on cash flow hedges: | ||||||||||||||||||||||||
Change in unrealized gains and losses, foreign exchange contracts | $ | (203 | ) | $ | 48 | $ | (155 | ) | $ | (1,125 | ) | $ | 125 | $ | (1,000 | ) | ||||||||
Net gains and losses reclassified into earnings, foreign exchange contracts (1) | (246 | ) | 28 | (218 | ) | (11 | ) | 1 | (10 | ) | ||||||||||||||
Net unrealized gains (losses) on cash flow hedges | (449 | ) | 76 | (373 | ) | (1,136 | ) | 126 | (1,010 | ) | ||||||||||||||
Foreign currency translation adjustments | (191 | ) | — | (191 | ) | (1,470 | ) | — | (1,470 | ) | ||||||||||||||
Total other comprehensive loss | $ | (640 | ) | $ | 76 | $ | (564 | ) | $ | (2,606 | ) | $ | 126 | $ | (2,480 | ) | ||||||||
The tax effects allocated to each component of other comprehensive income (loss) for the nine months ended August 2, 2014, and July 27, 2013, are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||||||||||
Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | |||||||||||||||||||
Unrealized gains (losses) on cash flow hedges: | ||||||||||||||||||||||||
Change in unrealized gains and losses, foreign exchange contracts | $ | 23 | $ | (9 | ) | $ | 14 | $ | (3,100 | ) | $ | 102 | $ | (2,998 | ) | |||||||||
Net gains and losses reclassified into earnings, foreign exchange contracts (1) | (240 | ) | 23 | (217 | ) | (242 | ) | 28 | (214 | ) | ||||||||||||||
Net unrealized gains (losses) on cash flow hedges | (217 | ) | 14 | (203 | ) | (3,342 | ) | 130 | (3,212 | ) | ||||||||||||||
Foreign currency translation adjustments | 284 | — | 284 | (3,612 | ) | — | (3,612 | ) | ||||||||||||||||
Total other comprehensive income (loss) | $ | 67 | $ | 14 | $ | 81 | $ | (6,954 | ) | $ | 130 | $ | (6,824 | ) | ||||||||||
-1 | For Condensed Consolidated Statements of Income classification of amounts reclassified from accumulated other comprehensive loss, see Note 10, “Derivative Instruments and Hedging Activities,” of the Notes to Condensed Consolidated Financial Statements. | |||||||||||||||||||||||
The changes in accumulated other comprehensive loss by component, net of tax, for the nine months ended August 2, 2014, and July 27, 2013, are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||||||||||
Gains (Losses) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | Gains (Losses) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | |||||||||||||||||||
Beginning balance | $ | 267 | $ | (13,711 | ) | $ | (13,444 | ) | $ | 2,390 | $ | (12,254 | ) | $ | (9,864 | ) | ||||||||
Change in unrealized gains and losses | 14 | 284 | 298 | (2,998 | ) | (3,612 | ) | (6,610 | ) | |||||||||||||||
Net gains and losses reclassified into earnings | (217 | ) | — | (217 | ) | (214 | ) | — | (214 | ) | ||||||||||||||
Net current-period other comprehensive income (loss) | (203 | ) | 284 | 81 | (3,212 | ) | (3,612 | ) | (6,824 | ) | ||||||||||||||
Ending balance | $ | 64 | $ | (13,427 | ) | $ | (13,363 | ) | $ | (822 | ) | $ | (15,866 | ) | $ | (16,688 | ) | |||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Aug. 02, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
In general, the Company’s provision for income taxes differs from tax computed at the U.S. federal statutory tax rate of 35% due to state taxes, the effect of non-U.S. operations, nondeductible stock-based compensation expense, and adjustments to unrecognized tax benefits. The effective tax rates for the three and nine months ended August 2, 2014, were lower than the federal statutory tax rate of 35% primarily due to the effects of earnings in foreign jurisdictions taxed at rates lower than the U.S. federal statutory tax rate, and a discrete benefit from release of tax reserves due to expired statutes of limitations, partially offset by an increase in certain unrecognized tax benefits. In addition, the effective tax rate for the nine months ended August 2, 2014, was negatively impacted by a goodwill impairment charge of $83.4 million, which is nondeductible for tax purposes. | |
The effective tax rate for the three months ended July 27, 2013, was lower than the federal statutory tax rate of 35% primarily due to a discrete benefit from favorable audit settlements. In addition, the effective tax rate for the nine months ended July 27, 2013, was higher than the federal statutory tax rate of 35% primarily due to a charge of $78.2 million to reduce our previously recognized California deferred tax assets as a result of a change in California tax law with the passage of Proposition 39. This charge was partially offset by the effect of change in foreign earnings, discrete benefits from reserve releases resulting from audit settlements, and an increase in the federal research and development tax credit that was reinstated on January 2, 2013, for calendar year 2013 and made retroactive to January 1, 2012. | |
The total amount of net unrecognized tax benefits of $81.0 million as of August 2, 2014, would affect the Company’s effective tax rate, if recognized. The timing of the closure of audits is highly uncertain and it is reasonably possible that the balance of unrecognized tax benefits could change during the remainder of fiscal year 2014. | |
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. After the Company reaches settlement with the tax authorities, the Company expects to record a corresponding adjustment to our 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 $5 million in the next 12 months. | |
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 certain California deferred tax assets and capital loss carryforwards. Accordingly, the Company applies a valuation allowance to the California deferred tax assets due to the change in California law in 2012 and to capital loss carryforwards due to the limited carryforward periods of these tax assets. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
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. Financial decisions and the allocation of resources are based on the information from the Company’s internal management reporting system. Currently, the Company’s CODM is its Chief Executive Officer. | ||||||||||||||||
Prior to the second quarter of fiscal year 2014, Brocade was organized into four operating segments, and three individually reportable segments, summarized as follows: | ||||||||||||||||
Operating Segments | Individually Reportable Segments (1) | |||||||||||||||
SAN Products | SAN Products | |||||||||||||||
Global Services | Global Services | |||||||||||||||
Ethernet Switching & IP Routing | IP Networking Products (2) | |||||||||||||||
ADP | ||||||||||||||||
(1) | These reportable segments were organized principally by product category. | |||||||||||||||
(2) | Ethernet Switching & IP Routing and ADP were combined to form the reportable segment: IP Networking Products. | |||||||||||||||
In the second quarter of fiscal year 2014, Brocade changed its internal financial reporting, realigning it with the changes in Brocade’s strategic focus on key technology segments. As a result of this change, the number of the Company’s operating segments was reduced from four to three operating segments. Ethernet Switching & IP Routing and ADP business components were combined into the IP Networking Products operating segment, and separate discrete financial information is no longer available for either Ethernet Switching & IP Routing or ADP components. The reportable segments did not change as a result of this change in the Company’s internal financial reporting. Therefore, the restatement of previously reported segment information is not necessary. | ||||||||||||||||
At this time, the Company does not track all of its assets by operating segments. The majority of the Company’s assets as of August 2, 2014, were attributable to its U.S. operations. | ||||||||||||||||
Summarized financial information by reportable segment for the three and nine months ended August 2, 2014, and July 27, 2013, based on the internal management reporting system, is as follows (in thousands): | ||||||||||||||||
SAN | IP Networking Products | Global Services | Total | |||||||||||||
Products | ||||||||||||||||
Three months ended August 2, 2014 | ||||||||||||||||
Net revenues | $ | 325,238 | $ | 132,559 | $ | 87,667 | $ | 545,464 | ||||||||
Cost of revenues | 83,938 | 61,580 | 38,233 | 183,751 | ||||||||||||
Gross margin | $ | 241,300 | $ | 70,979 | $ | 49,434 | $ | 361,713 | ||||||||
Three months ended July 27, 2013 | ||||||||||||||||
Net revenues | $ | 314,087 | $ | 133,906 | $ | 88,558 | $ | 536,551 | ||||||||
Cost of revenues | 85,611 | 74,830 | 37,908 | 198,349 | ||||||||||||
Gross margin | $ | 228,476 | $ | 59,076 | $ | 50,650 | $ | 338,202 | ||||||||
Nine months ended August 2, 2014 | ||||||||||||||||
Net revenues | $ | 1,001,858 | $ | 373,424 | $ | 271,627 | $ | 1,646,909 | ||||||||
Cost of revenues | 261,393 | 180,023 | 116,818 | 558,234 | ||||||||||||
Gross margin | $ | 740,465 | $ | 193,401 | $ | 154,809 | $ | 1,088,675 | ||||||||
Nine months ended July 27, 2013 | ||||||||||||||||
Net revenues | $ | 994,909 | $ | 407,077 | $ | 262,078 | $ | 1,664,064 | ||||||||
Cost of revenues | 270,461 | 228,954 | 118,410 | 617,825 | ||||||||||||
Gross margin | $ | 724,448 | $ | 178,123 | $ | 143,668 | $ | 1,046,239 | ||||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income (Loss) 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): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, | July 27, | August 2, | July 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic net income per share | ||||||||||||||||
Net income | $ | 87,352 | $ | 118,696 | $ | 154,552 | $ | 144,390 | ||||||||
Weighted-average shares used in computing basic net income per share | 432,448 | 449,446 | 436,396 | 452,474 | ||||||||||||
Basic net income per share | $ | 0.2 | $ | 0.26 | $ | 0.35 | $ | 0.32 | ||||||||
Diluted net income per share | ||||||||||||||||
Net income | $ | 87,352 | $ | 118,696 | $ | 154,552 | $ | 144,390 | ||||||||
Weighted-average shares used in computing basic net income per share | 432,448 | 449,446 | 436,396 | 452,474 | ||||||||||||
Dilutive potential common shares in the form of stock options | 1,616 | 2,842 | 2,162 | 3,686 | ||||||||||||
Dilutive potential common shares in the form of other share-based awards | 7,725 | 9,056 | 10,038 | 8,701 | ||||||||||||
Weighted-average shares used in computing diluted net income per share | 441,789 | 461,344 | 448,596 | 464,861 | ||||||||||||
Diluted net income per share | $ | 0.2 | $ | 0.26 | $ | 0.34 | $ | 0.31 | ||||||||
Antidilutive potential common shares in the form of (1) | ||||||||||||||||
Stock options | 1,651 | 13,146 | 2,050 | 14,637 | ||||||||||||
Other share-based awards | 1,331 | 12 | 1,119 | 171 | ||||||||||||
(1) | These amounts are excluded from the computation of diluted net income per share. |
Guarantor_And_NonGuarantor_Sub
Guarantor And Non-Guarantor Subsidiaries | 9 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
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 or any 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 condensed consolidated financial statements for the parent company, the Subsidiary Guarantors, and the Non-Guarantor Subsidiaries, respectively. | ||||||||||||||||||||
The following is the condensed consolidating balance sheet as of August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 373,413 | $ | 8,284 | $ | 767,690 | $ | — | $ | 1,149,387 | ||||||||||
Accounts receivable, net | 115,564 | 12 | 76,240 | — | 191,816 | |||||||||||||||
Inventories | 38,290 | — | 2,296 | — | 40,586 | |||||||||||||||
Intercompany receivables | — | 486,581 | — | (486,581 | ) | — | ||||||||||||||
Other current assets | 149,247 | 61 | 10,408 | 655 | 160,371 | |||||||||||||||
Total current assets | 676,514 | 494,938 | 856,634 | (485,926 | ) | 1,542,160 | ||||||||||||||
Property and equipment, net | 431,159 | 233 | 16,803 | — | 448,195 | |||||||||||||||
Investment in subsidiaries | 1,156,473 | — | — | (1,156,473 | ) | — | ||||||||||||||
Other non-current assets | 1,526,781 | 81,338 | 3,416 | — | 1,611,535 | |||||||||||||||
Total assets | $ | 3,790,927 | $ | 576,509 | $ | 876,853 | $ | (1,642,399 | ) | $ | 3,601,890 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 58,285 | $ | — | $ | 25,957 | $ | — | $ | 84,242 | ||||||||||
Current portion of long-term debt | 1,817 | — | — | — | 1,817 | |||||||||||||||
Intercompany payables | 381,223 | — | 105,358 | (486,581 | ) | — | ||||||||||||||
Other current liabilities | 299,555 | 3,990 | 114,175 | 655 | 418,375 | |||||||||||||||
Total current liabilities | 740,880 | 3,990 | 245,490 | (485,926 | ) | 504,434 | ||||||||||||||
Long-term debt, net of current portion | 595,420 | — | — | — | 595,420 | |||||||||||||||
Other non-current liabilities | 118,026 | — | 47,409 | — | 165,435 | |||||||||||||||
Total liabilities | 1,454,326 | 3,990 | 292,899 | (485,926 | ) | 1,265,289 | ||||||||||||||
Total stockholders’ equity | 2,336,601 | 572,519 | 583,954 | (1,156,473 | ) | 2,336,601 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,790,927 | $ | 576,509 | $ | 876,853 | $ | (1,642,399 | ) | $ | 3,601,890 | |||||||||
The following is the condensed consolidating balance sheet as of October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
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 condensed consolidating statement of operations for the three months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 303,946 | $ | 366 | $ | 241,152 | $ | — | $ | 545,464 | ||||||||||
Intercompany revenues | 6,127 | — | 3,807 | (9,934 | ) | — | ||||||||||||||
Total net revenues | 310,073 | 366 | 244,959 | (9,934 | ) | 545,464 | ||||||||||||||
Cost of revenues | 118,972 | 170 | 63,192 | 1,417 | 183,751 | |||||||||||||||
Intercompany (income) cost of revenues | (15,723 | ) | — | 25,657 | (9,934 | ) | — | |||||||||||||
Total cost of revenues | 103,249 | 170 | 88,849 | (8,517 | ) | 183,751 | ||||||||||||||
Gross margin (loss) | 206,824 | 196 | 156,110 | (1,417 | ) | 361,713 | ||||||||||||||
Operating expenses | 185,967 | 223 | 59,043 | (1,417 | ) | 243,816 | ||||||||||||||
Intercompany operating expenses (income) | (55,043 | ) | (9,481 | ) | 64,524 | — | — | |||||||||||||
Total operating expenses | 130,924 | (9,258 | ) | 123,567 | (1,417 | ) | 243,816 | |||||||||||||
Income (loss) from operations | 75,900 | 9,454 | 32,543 | — | 117,897 | |||||||||||||||
Other income (expense) | (3,658 | ) | (58 | ) | (161 | ) | — | (3,877 | ) | |||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 72,242 | 9,396 | 32,382 | — | 114,020 | |||||||||||||||
Income tax expense | 25,325 | — | 1,343 | — | 26,668 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 40,435 | — | — | (40,435 | ) | — | ||||||||||||||
Net income (loss) | $ | 87,352 | $ | 9,396 | $ | 31,039 | $ | (40,435 | ) | $ | 87,352 | |||||||||
The following is the condensed consolidating statement of operations for the three months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 327,422 | $ | 1,053 | $ | 208,076 | $ | — | $ | 536,551 | ||||||||||
Intercompany revenues | 5,647 | — | 7,855 | (13,502 | ) | — | ||||||||||||||
Total net revenues | 333,069 | 1,053 | 215,931 | (13,502 | ) | 536,551 | ||||||||||||||
Cost of revenues | 137,260 | 6,891 | 52,453 | 1,745 | 198,349 | |||||||||||||||
Intercompany (income) cost of revenues | (14,489 | ) | — | 27,991 | (13,502 | ) | — | |||||||||||||
Total cost of revenues | 122,771 | 6,891 | 80,444 | (11,757 | ) | 198,349 | ||||||||||||||
Gross margin (loss) | 210,298 | (5,838 | ) | 135,487 | (1,745 | ) | 338,202 | |||||||||||||
Operating expenses | 198,119 | 9,888 | 57,577 | (1,745 | ) | 263,839 | ||||||||||||||
Intercompany operating expenses (income) | (14,763 | ) | (11 | ) | 14,774 | — | — | |||||||||||||
Total operating expenses | 183,356 | 9,877 | 72,351 | (1,745 | ) | 263,839 | ||||||||||||||
Income (loss) from operations | 26,942 | (15,715 | ) | 63,136 | — | 74,363 | ||||||||||||||
Other income (expense) | 67,657 | 350 | (570 | ) | — | 67,437 | ||||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 94,599 | (15,365 | ) | 62,566 | — | 141,800 | ||||||||||||||
Income tax expense (benefit) | 26,079 | — | (2,975 | ) | — | 23,104 | ||||||||||||||
Equity in net earnings (losses) of subsidiaries | 50,176 | — | — | (50,176 | ) | — | ||||||||||||||
Net income (loss) | $ | 118,696 | $ | (15,365 | ) | $ | 65,541 | $ | (50,176 | ) | $ | 118,696 | ||||||||
The following is the condensed consolidating statement of operations for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 940,696 | $ | 1,747 | $ | 704,466 | $ | — | $ | 1,646,909 | ||||||||||
Intercompany revenues | 19,942 | — | 10,484 | (30,426 | ) | — | ||||||||||||||
Total net revenues | 960,638 | 1,747 | 714,950 | (30,426 | ) | 1,646,909 | ||||||||||||||
Cost of revenues | 361,085 | 8,992 | 183,715 | 4,442 | 558,234 | |||||||||||||||
Intercompany (income) cost of revenues | (45,882 | ) | — | 76,308 | (30,426 | ) | — | |||||||||||||
Total cost of revenues | 315,203 | 8,992 | 260,023 | (25,984 | ) | 558,234 | ||||||||||||||
Gross margin (loss) | 645,435 | (7,245 | ) | 454,927 | (4,442 | ) | 1,088,675 | |||||||||||||
Operating expenses | 665,764 | 7,142 | 160,629 | (4,442 | ) | 829,093 | ||||||||||||||
Intercompany operating expenses (income) | (144,783 | ) | (23,929 | ) | 168,712 | — | — | |||||||||||||
Total operating expenses | 520,981 | (16,787 | ) | 329,341 | (4,442 | ) | 829,093 | |||||||||||||
Income (loss) from operations | 124,454 | 9,542 | 125,586 | — | 259,582 | |||||||||||||||
Other income (expense) | (23,495 | ) | (192 | ) | 24 | — | (23,663 | ) | ||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 100,959 | 9,350 | 125,610 | — | 235,919 | |||||||||||||||
Income tax expense | 76,609 | — | 4,758 | — | 81,367 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 130,202 | — | — | (130,202 | ) | — | ||||||||||||||
Net income (loss) | $ | 154,552 | $ | 9,350 | $ | 120,852 | $ | (130,202 | ) | $ | 154,552 | |||||||||
The following is the condensed consolidating statement of operations for the nine months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 1,004,002 | $ | 3,176 | $ | 656,886 | $ | — | $ | 1,664,064 | ||||||||||
Intercompany revenues | 21,881 | — | 17,680 | (39,561 | ) | — | ||||||||||||||
Total net revenues | 1,025,883 | 3,176 | 674,566 | (39,561 | ) | 1,664,064 | ||||||||||||||
Cost of revenues | 405,005 | 29,104 | 177,744 | 5,972 | 617,825 | |||||||||||||||
Intercompany (income) cost of revenues | (41,711 | ) | — | 81,272 | (39,561 | ) | — | |||||||||||||
Total cost of revenues | 363,294 | 29,104 | 259,016 | (33,589 | ) | 617,825 | ||||||||||||||
Gross margin (loss) | 662,589 | (25,928 | ) | 415,550 | (5,972 | ) | 1,046,239 | |||||||||||||
Operating expenses | 608,523 | 30,941 | 187,914 | (5,972 | ) | 821,406 | ||||||||||||||
Intercompany operating expenses (income) | (89,648 | ) | (14,288 | ) | 103,936 | — | — | |||||||||||||
Total operating expenses | 518,875 | 16,653 | 291,850 | (5,972 | ) | 821,406 | ||||||||||||||
Income (loss) from operations | 143,714 | (42,581 | ) | 123,700 | — | 224,833 | ||||||||||||||
Other expense | 34,305 | 306 | (3,486 | ) | (391 | ) | 30,734 | |||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 178,019 | (42,275 | ) | 120,214 | (391 | ) | 255,567 | |||||||||||||
Income tax expense | 109,114 | 866 | 1,197 | — | 111,177 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 75,875 | — | — | (75,875 | ) | — | ||||||||||||||
Net income (loss) | $ | 144,780 | $ | (43,141 | ) | $ | 119,017 | $ | (76,266 | ) | $ | 144,390 | ||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the three months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 87,352 | $ | 9,396 | $ | 31,039 | $ | (40,435 | ) | $ | 87,352 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized gains on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (155 | ) | — | (155 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (218 | ) | — | (218 | ) | |||||||||||||
Net unrealized gains on cash flow hedges | — | — | (373 | ) | — | (373 | ) | |||||||||||||
Foreign currency translation adjustments | 18 | — | (209 | ) | — | (191 | ) | |||||||||||||
Total other comprehensive income (loss) | 18 | — | (582 | ) | — | (564 | ) | |||||||||||||
Total comprehensive income (loss) | $ | 87,370 | $ | 9,396 | $ | 30,457 | $ | (40,435 | ) | $ | 86,788 | |||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the three months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 118,696 | $ | (15,365 | ) | $ | 65,541 | $ | (50,176 | ) | $ | 118,696 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (1,000 | ) | — | (1,000 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | — | — | (1,010 | ) | — | (1,010 | ) | |||||||||||||
Foreign currency translation adjustments | 23 | — | (1,493 | ) | — | (1,470 | ) | |||||||||||||
Total other comprehensive income (loss) | 23 | — | (2,503 | ) | — | (2,480 | ) | |||||||||||||
Total comprehensive income (loss) | $ | 118,719 | $ | (15,365 | ) | $ | 63,038 | $ | (50,176 | ) | $ | 116,216 | ||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 154,552 | $ | 9,350 | $ | 120,852 | $ | (130,202 | ) | $ | 154,552 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized gains on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | 14 | — | 14 | |||||||||||||||
Net gains reclassified into earnings | — | — | (217 | ) | — | (217 | ) | |||||||||||||
Net unrealized gains on cash flow hedges | — | — | (203 | ) | — | (203 | ) | |||||||||||||
Foreign currency translation adjustments | (113 | ) | 171 | 226 | — | 284 | ||||||||||||||
Total other comprehensive income (loss) | (113 | ) | 171 | 23 | — | 81 | ||||||||||||||
Total comprehensive income (loss) | $ | 154,439 | $ | 9,521 | $ | 120,875 | $ | (130,202 | ) | $ | 154,633 | |||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the nine months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 144,780 | $ | (43,141 | ) | $ | 119,017 | $ | (76,266 | ) | $ | 144,390 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (2,998 | ) | — | (2,998 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (214 | ) | — | (214 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | — | — | (3,212 | ) | — | (3,212 | ) | |||||||||||||
Foreign currency translation adjustments | 1,149 | (628 | ) | (4,133 | ) | — | (3,612 | ) | ||||||||||||
Total other comprehensive income (loss) | 1,149 | (628 | ) | (7,345 | ) | — | (6,824 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 145,929 | $ | (43,769 | ) | $ | 111,672 | $ | (76,266 | ) | $ | 137,566 | ||||||||
The following is the condensed consolidating statement of cash flows for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 196,642 | $ | (1,017 | ) | $ | 188,119 | $ | — | $ | 383,744 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property and equipment | (32,574 | ) | — | (8,601 | ) | — | (41,175 | ) | ||||||||||||
Purchases of non-marketable minority equity investments | (223 | ) | — | — | — | (223 | ) | |||||||||||||
Proceeds from sale of non-marketable equity investment | 10,748 | — | — | — | 10,748 | |||||||||||||||
Proceeds from sale of network adapter business | 3,081 | — | 6,914 | — | 9,995 | |||||||||||||||
Proceeds from collection of note receivable | 250 | — | — | — | 250 | |||||||||||||||
Net cash provided by (used in) investing activities | (18,718 | ) | — | (1,687 | ) | — | (20,405 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payment of principal related to capital leases | (2,382 | ) | — | — | — | (2,382 | ) | |||||||||||||
Common stock repurchases | (302,560 | ) | — | — | — | (302,560 | ) | |||||||||||||
Proceeds from issuance of common stock | 81,293 | — | — | — | 81,293 | |||||||||||||||
Payment of cash dividends to stockholders | (15,270 | ) | — | — | — | (15,270 | ) | |||||||||||||
Excess tax benefits from stock-based compensation | 37,698 | — | — | — | 37,698 | |||||||||||||||
Net cash used in financing activities | (201,221 | ) | — | — | — | (201,221 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | 272 | — | 272 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (23,297 | ) | (1,017 | ) | 186,704 | — | 162,390 | |||||||||||||
Cash and cash equivalents, beginning of period | 396,710 | 9,301 | 580,986 | — | 986,997 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 373,413 | $ | 8,284 | $ | 767,690 | $ | — | $ | 1,149,387 | ||||||||||
The following is the condensed consolidating statement of cash flows for the nine months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net cash provided by operating activities | $ | 181,335 | $ | 2,846 | $ | 97,079 | $ | — | $ | 281,260 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property and equipment | (35,969 | ) | (23 | ) | (5,957 | ) | — | (41,949 | ) | |||||||||||
Net cash acquired (paid) in connection with acquisition | (44,769 | ) | 140 | — | — | (44,629 | ) | |||||||||||||
Net cash provided by (used in) investing activities | (80,738 | ) | 117 | (5,957 | ) | — | (86,578 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from senior unsecured notes | 296,250 | — | — | — | 296,250 | |||||||||||||||
Payment of debt issuance costs related to senior unsecured notes | (992 | ) | — | — | — | (992 | ) | |||||||||||||
Payment of principal related to senior secured notes | (300,000 | ) | — | — | — | (300,000 | ) | |||||||||||||
Payment of principal related to capital leases | (1,536 | ) | — | — | — | (1,536 | ) | |||||||||||||
Common stock repurchases | (187,360 | ) | — | — | — | (187,360 | ) | |||||||||||||
Proceeds from issuance of common stock | 71,858 | — | — | — | 71,858 | |||||||||||||||
Excess tax benefits from stock-based compensation | 6,909 | — | — | — | 6,909 | |||||||||||||||
Net cash used in financing activities | (114,871 | ) | — | — | — | (114,871 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (2,944 | ) | — | (2,944 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (14,274 | ) | 2,963 | 88,178 | — | 76,867 | ||||||||||||||
Cash and cash equivalents, beginning of period | 284,466 | 680 | 428,080 | — | 713,226 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 270,192 | $ | 3,643 | $ | 516,258 | $ | — | $ | 790,093 | ||||||||||
Basis_Of_Presentation_Policies
Basis Of Presentation (Policies) | 9 Months Ended |
Aug. 02, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Fiscal Period Policy | ' |
The Company’s fiscal year is a 52- or 53-week period ending on the last Saturday in October or the first Saturday in November, respectively. Fiscal year 2014 is a 53-week fiscal year and fiscal year 2013 is a 52-week fiscal year. The second quarter of fiscal year 2014 is a 14-week quarter, which is one week longer than a typical quarter. | |
Consolidation Policy | ' |
The Condensed 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 Condensed Consolidated Financial Statements | ' |
Use of Estimates in Preparation of Condensed Consolidated Financial Statements | |
The preparation of condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, revenue recognition, 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. |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Aug. 02, 2014 | |
Accounting Policies [Abstract] | ' |
New Accounting Pronouncements, Policy | ' |
New Accounting Pronouncements or Updates Recently Adopted | |
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”) into net income 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. The Company adopted this update in the first quarter of fiscal year 2014, presenting the required information in Note 12, “Accumulated Other Comprehensive Income (Loss),” of the Notes to Condensed Consolidated Financial Statements. | |
Recent Accounting Pronouncements or Updates That Are Not Yet Effective | |
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. Early adoption and retrospective application are permitted. 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. | |
In April 2014, the FASB issued an update to ASC 205 Presentation of Financial Statements (“ASC 205”) and ASC 360 Property, Plant, and Equipment (“ASC 360”): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this update, a discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. Only those disposals of components of an entity that represent a strategic shift that has, or will have, a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements. This update to ASC 205 and ASC 360 should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2016. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued. | |
In May 2014, the FASB issued an update to ASC 606 Revenue from Contracts with Customers (“ASC 606”) that will supersede virtually all existing revenue guidance. Under this update, an entity is required to recognize revenue upon transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. As such, an entity will need to use more judgment and make more estimates than under the current guidance. This update to ASC 606 should be applied retrospectively either to each prior reporting period presented in the financial statements, or only to the most current reporting period presented in the financial statements with a cumulative effect adjustment recorded in the retained earnings. This update to ASC 606 becomes effective and will be adopted by the Company in the first quarter of fiscal year 2018. Early adoption is not permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements. |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets Goodwill And Intangible Assets (Policies) | 9 Months Ended | |
Aug. 02, 2014 | ||
Accounting Policies [Abstract] | ' | |
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. As an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, which the Company conducts 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, Goodwill Policy | ' | |
The Company conducts its goodwill impairment test annually, as of the first day of the second fiscal quarter, and whenever events occur or facts and circumstances change that would more likely than not reduce the fair value of a reporting unit below 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 applying various observable market-based multiples to the reporting unit’s operating results and then applying an appropriate control premium. For the fiscal year 2014 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 the impairment testing performed in the second fiscal quarter of 2014, 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 market segments that are comparable with the Company’s reporting units. | ||
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) | 9 Months Ended |
Aug. 02, 2014 | |
Accounting Policies [Abstract] | ' |
Fair Value Transfer Policy | ' |
During the nine months ended August 2, 2014, the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value. |
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities Derivative Instruments And Hedging Activities (Policies) | 9 Months Ended |
Aug. 02, 2014 | |
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 are 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 three and nine months ended August 2, 2014, and July 27, 2013, were the euro, the British pound, the Indian rupee, the Japanese yen, the Singapore dollar, the Chinese yuan, 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 eliminate, the impact of foreign currency exchange rate movements. | |
The Company’s foreign currency risk management program includes foreign currency derivatives with a 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 was not significant for the three and nine months ended August 2, 2014, and July 27, 2013. | |
Ineffective cash flow hedges are included in the Company’s net income as part of “Interest and other income (loss), net.” The amount recorded on ineffective cash flow hedges was not significant for the three and nine months ended August 2, 2014, and July 27, 2013, respectively. |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
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): | ||||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||
Goodwill | $ | 1,556,361 | $ | 1,645,437 | ||||||||||||
In-process research and development (1) | 12,260 | 21,590 | ||||||||||||||
Finite-lived intangible assets | ||||||||||||||||
Total intangible assets subject to amortization | 10,443 | 18,668 | ||||||||||||||
Total intangible assets | $ | 1,579,064 | $ | 1,685,695 | ||||||||||||
-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. As an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, which the Company conducts 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 three months ended May 3, 2014, development work was completed on $9.3 million of the IPRD intangible asset and this completed IPRD intangible asset is being amortized as Core/developed technology. The development effort on the remaining IPRD intangible asset is expected to be completed in the first half of fiscal year 2016. | |||||||||||||||
Schedule Of Goodwill Activity By Reportable Segment | ' | |||||||||||||||
The following table summarizes goodwill activity by reportable segment for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||
SAN | IP Networking Products | Global Services | Total | |||||||||||||
Products | ||||||||||||||||
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 | |||||||||||||
Impairment (1) | — | (83,382 | ) | — | (83,382 | ) | ||||||||||
Divestitures (2) | (474 | ) | (3,657 | ) | — | (4,131 | ) | |||||||||
Tax and other adjustments during the nine months ended August 2, 2014 (3) | (52 | ) | (1,511 | ) | — | (1,563 | ) | |||||||||
Balance at August 2, 2014 | ||||||||||||||||
Goodwill | 176,352 | 1,353,807 | 155,416 | 1,685,575 | ||||||||||||
Accumulated impairment losses | — | (129,214 | ) | — | (129,214 | ) | ||||||||||
$ | 176,352 | $ | 1,224,593 | $ | 155,416 | $ | 1,556,361 | |||||||||
(1) | In the second quarter of fiscal year 2014, the Company made a strategic shift in the allocation of its engineering resources and has reduced its investment in the hardware-based Brocade ADX® products and increased investment in the software-based Brocade ADX products for Layer 4-7 applications. As a result of this change in strategy, the Company expects hardware-based Brocade ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge during the second fiscal quarter of 2014 because the book value of its Application Delivery Products (“ADP”) reporting unit net assets, which includes the Brocade ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted. | |||||||||||||||
(2) | The goodwill disposed relates to the sale of the Company’s network adapter business, see Note 3, “Acquisitions and Divestitures,” of the Notes to Condensed Consolidated Financial Statements. | |||||||||||||||
(3) | The goodwill adjustments during the nine months ended August 2, 2014, 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): | ||||||||||||||||
August 2, 2014 | Gross | Accumulated | Net | Weighted- | ||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
Trade name | $ | 460 | $ | 195 | $ | 265 | 2.26 | |||||||||
Core/developed technology | 10,370 | 1,364 | 9,006 | 4.42 | ||||||||||||
Customer relationships | 1,080 | 374 | 706 | 3.26 | ||||||||||||
Non-compete agreements | 810 | 344 | 466 | 2.26 | ||||||||||||
Total intangible assets (1) | $ | 12,720 | $ | 2,277 | $ | 10,443 | 4.19 | |||||||||
October 26, 2013 | Gross | Accumulated | Net | Weighted- | ||||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||||
Value | Value | Remaining | ||||||||||||||
Useful Life | ||||||||||||||||
(in years) | ||||||||||||||||
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 intangible assets | $ | 480,700 | $ | 462,032 | $ | 18,668 | 0.58 | |||||||||
(1) | During the nine months ended August 2, 2014, $477.3 million of 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 in the Condensed Consolidated Statements of Income (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Cost of revenues | $ | 552 | $ | 9,650 | $ | 7,410 | $ | 30,081 | ||||||||
Operating expenses | 131 | 13,124 | 10,145 | 41,131 | ||||||||||||
Total | $ | 683 | $ | 22,774 | $ | 17,555 | $ | 71,212 | ||||||||
Schedule Of Estimated Future Amortization Of Intangible Assets | ' | |||||||||||||||
The following table presents the estimated future amortization of finite-lived intangible assets as of August 2, 2014 (in thousands): | ||||||||||||||||
Fiscal Year | Estimated | |||||||||||||||
Future | ||||||||||||||||
Amortization | ||||||||||||||||
2014 (remaining three months) | $ | 683 | ||||||||||||||
2015 | 2,731 | |||||||||||||||
2016 | 2,419 | |||||||||||||||
2017 | 2,104 | |||||||||||||||
2018 | 1,884 | |||||||||||||||
Thereafter | 622 | |||||||||||||||
Total | $ | 10,443 | ||||||||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Balance Sheet Details [Abstract] | ' | |||||||||||||||
Schedule of Inventory | ' | |||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Inventories: | ||||||||||||||||
Raw materials | $ | 13,962 | $ | 14,048 | ||||||||||||
Finished goods | 26,624 | 31,296 | ||||||||||||||
Total | $ | 40,586 | $ | 45,344 | ||||||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Property and equipment, net: | ||||||||||||||||
Computer equipment | $ | 13,709 | $ | 16,006 | ||||||||||||
Software | 61,401 | 57,186 | ||||||||||||||
Engineering and other equipment (1) | 375,478 | 416,573 | ||||||||||||||
Furniture and fixtures (1) | 29,422 | 29,029 | ||||||||||||||
Leasehold improvements | 21,487 | 24,287 | ||||||||||||||
Land and building | 384,659 | 384,654 | ||||||||||||||
Subtotal | 886,156 | 927,735 | ||||||||||||||
Less: Accumulated depreciation and amortization (1), (2) | (437,961 | ) | (454,795 | ) | ||||||||||||
Total | $ | 448,195 | $ | 472,940 | ||||||||||||
(1) | Engineering and other equipment, furniture and fixtures, and accumulated depreciation and amortization include the following amounts under capital leases as of August 2, 2014, and October 26, 2013, respectively (in thousands): | |||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Cost | $ | 11,925 | $ | 11,925 | ||||||||||||
Accumulated depreciation | (6,747 | ) | (5,366 | ) | ||||||||||||
Total | $ | 5,178 | $ | 6,559 | ||||||||||||
(2) | The following table presents the depreciation and amortization of property and equipment included in the Condensed Consolidated Statements of Income (in thousands): | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, | July 27, | August 2, | July 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Depreciation and amortization expense | $ | 19,761 | $ | 22,873 | $ | 62,815 | $ | 67,793 | ||||||||
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 August 2, 2014, and October 26, 2013, respectively (in thousands): | ||||||||||||||||
August 2, | October 26, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Cost | $ | 11,925 | $ | 11,925 | ||||||||||||
Accumulated depreciation | (6,747 | ) | (5,366 | ) | ||||||||||||
Total | $ | 5,178 | $ | 6,559 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value | ' | |||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis as of August 2, 2014, were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
August 2, 2014 | Active Markets | Observable | Unobservable | |||||||||||||
for Identical | Inputs | Inputs | ||||||||||||||
Instruments | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 799,144 | $ | 799,144 | $ | — | $ | — | ||||||||
Derivative assets | 523 | — | 523 | — | ||||||||||||
Total assets measured at fair value | $ | 799,667 | $ | 799,144 | $ | 523 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 273 | $ | — | $ | 273 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 273 | $ | — | $ | 273 | $ | — | ||||||||
(1) | Money market funds are reported within “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. | |||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis as of October 26, 2013, were as follows (in thousands): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
October 26, 2013 | 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” in the Condensed Consolidated Balance Sheets. |
Restructuring_and_Other_Costs_
Restructuring and Other Costs (Tables) | 9 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Schedule of Restructuring and Other Charges | ' | |||||||||||||||||||
The following table provides details of the Company’s restructuring and other charges (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
August 2, | July 27, | August 2, | July 27, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Goodwill impairment (1) | $ | — | $ | — | $ | 83,382 | $ | — | ||||||||||||
Severance and Benefits | — | — | (1,788 | ) | — | |||||||||||||||
Lease Loss Reserve and Related Costs | 131 | — | 7,457 | — | ||||||||||||||||
Restructuring, goodwill impairment, and other related costs | $ | 131 | $ | — | $ | 89,051 | $ | — | ||||||||||||
(1) | For additional discussion on goodwill impairment, see Note 4, “Goodwill and Intangible Assets,” of the Notes to Condensed Consolidated Financial Statements. | |||||||||||||||||||
Schedule of Restructuring Reserve | ' | |||||||||||||||||||
The following table provides a reconciliation of the Company’s beginning and ending restructuring liability balances (in thousands): | ||||||||||||||||||||
Fiscal 2013 Fourth Quarter Restructuring Plan | Prior Restructuring Plans | |||||||||||||||||||
Severance and Benefits | Contract Terminations and Other | Lease Loss Reserve and Related Costs | Lease Loss | Total | ||||||||||||||||
Reserve and Related Costs | ||||||||||||||||||||
Restructuring liabilities at October 26, 2013 | $ | 15,216 | $ | 416 | $ | — | $ | 1,794 | $ | 17,426 | ||||||||||
Restructuring and other charges | (1,788 | ) | — | 7,457 | — | 5,669 | ||||||||||||||
Cash payments | (13,258 | ) | (291 | ) | (2,978 | ) | (682 | ) | (17,209 | ) | ||||||||||
Translation adjustment | — | — | 2 | — | 2 | |||||||||||||||
Restructuring liabilities at August 2, 2014 | $ | 170 | $ | 125 | $ | 4,481 | $ | 1,112 | $ | 5,888 | ||||||||||
Current restructuring liabilities at August 2, 2014 | $ | 170 | $ | 125 | $ | 1,936 | $ | 439 | $ | 2,670 | ||||||||||
Non-current restructuring liabilities at August 2, 2014 | $ | — | $ | — | $ | 2,545 | $ | 673 | $ | 3,218 | ||||||||||
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
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): | ||||||||||||||||||||
August 2, 2014 | October 26, 2013 | |||||||||||||||||||
Maturity | Stated Annual Interest Rate | Amount | Effective Interest Rate | Amount | Effective Interest Rate | |||||||||||||||
Senior Secured Notes: | ||||||||||||||||||||
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 | % | 300,000 | 4.83 | % | ||||||||||||
Capital lease obligations | 2016 | 5.67% | 2,218 | 5.36 | % | 4,600 | 5.5 | % | ||||||||||||
Total long-term debt | 602,218 | 604,600 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Unamortized discount | 4,981 | 5,396 | ||||||||||||||||||
Current portion of long-term debt | 1,817 | 2,996 | ||||||||||||||||||
Long-term debt, net of current portion | $ | 595,420 | $ | 596,208 | ||||||||||||||||
Schedule Of Debt Maturities | ' | |||||||||||||||||||
As of August 2, 2014, our aggregate debt maturities based on outstanding principal were as follows (in thousands): | ||||||||||||||||||||
Fiscal Year | Principal | |||||||||||||||||||
Balances | ||||||||||||||||||||
2014 (remaining three months) | $ | 642 | ||||||||||||||||||
2015 | 1,286 | |||||||||||||||||||
2016 | 290 | |||||||||||||||||||
2017 | — | |||||||||||||||||||
2018 | — | |||||||||||||||||||
Thereafter | 600,000 | |||||||||||||||||||
Total | $ | 602,218 | ||||||||||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 9 Months Ended | |||||||
Aug. 02, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
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 nine months ended August 2, 2014, and July 27, 2013, respectively (in thousands): | ||||||||
Accrued Warranty | ||||||||
Nine Months Ended | ||||||||
August 2, | July 27, | |||||||
2014 | 2013 | |||||||
Beginning balance | $ | 8,632 | $ | 14,453 | ||||
Liabilities accrued for warranties issued during the period | 3,498 | 3,753 | ||||||
Warranty claims paid and used during the period | (4,063 | ) | (6,500 | ) | ||||
Changes in liability for pre-existing warranties during the period | (368 | ) | (2,050 | ) | ||||
Ending balance | $ | 7,699 | $ | 9,656 | ||||
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging Activities (Tables) | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
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 Condensed Consolidated Statements of Income are as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Cost of revenues | $ | 53 | $ | 2 | $ | 173 | $ | 31 | ||||||||
Research and development | (80 | ) | (2 | ) | (665 | ) | 53 | |||||||||
Sales and marketing | 236 | 10 | 657 | 152 | ||||||||||||
General and administrative | 37 | 1 | 75 | 6 | ||||||||||||
Total | $ | 246 | $ | 11 | $ | 240 | $ | 242 | ||||||||
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 U.S. dollars | As of August 2, 2014 | As of October 26, 2013 | As of August 2, 2014 | As of October 26, 2013 | ||||||||||||
Euro | $ | 12,553 | $ | 16,012 | $ | — | $ | 25,478 | ||||||||
British pound | 8,665 | 25,053 | — | — | ||||||||||||
Indian rupee | 5,778 | 17,444 | — | — | ||||||||||||
Singapore dollar | 4,082 | 12,867 | — | — | ||||||||||||
Japanese yen | 3,784 | 16,172 | — | — | ||||||||||||
Swiss franc | 3,445 | 11,066 | — | — | ||||||||||||
Total | $ | 38,307 | $ | 98,614 | $ | — | $ | 25,478 | ||||||||
Stockholders_Equity_and_StockB1
Stockholders' Equity and Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | |||||||||||||||
Schedule of Dividends | ' | |||||||||||||||
As of August 2, 2014, the Company’s Board of Directors declared the following dividends (in thousands, except per share amounts): | ||||||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Paid | Payment Date | ||||||||||||
May 22, 2014 | $ | 0.035 | June 10, 2014 | $ | 15,270 | July 2, 2014 | ||||||||||
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 of the Condensed Consolidated Statements of Income as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Cost of revenues | $ | 4,121 | $ | 3,858 | $ | 10,738 | $ | 11,345 | ||||||||
Research and development | 4,350 | 4,020 | 13,107 | 13,205 | ||||||||||||
Sales and marketing | 7,592 | 7,164 | 22,819 | 23,321 | ||||||||||||
General and administrative | 5,511 | 3,727 | 14,550 | 9,220 | ||||||||||||
Total stock-based compensation | $ | 21,574 | $ | 18,769 | $ | 61,214 | $ | 57,091 | ||||||||
Stock-Based Compensation Expense By Grant Type | ' | |||||||||||||||
The following table presents stock-based compensation expense, net of estimated forfeitures, by grant type (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, 2014 | July 27, 2013 | August 2, 2014 | July 27, 2013 | |||||||||||||
Stock options, including variable options | $ | 1,072 | $ | 828 | $ | 3,602 | $ | 1,818 | ||||||||
Restricted stock units, including stock units with market conditions (altogether “RSUs”) | 13,970 | 11,202 | 45,957 | 38,351 | ||||||||||||
Employee stock purchase plan (“ESPP”) | 6,532 | 6,739 | 11,655 | 16,922 | ||||||||||||
Total stock-based compensation | $ | 21,574 | $ | 18,769 | $ | 61,214 | $ | 57,091 | ||||||||
Stock-Based Compensation, Unrecognized Compensation Expense And Weighted-Average Period | ' | |||||||||||||||
The following table presents the unrecognized compensation expense, net of estimated forfeitures, of the Company’s equity compensation plans as of August 2, 2014, 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 | $ | 5,432 | 1.49 | |||||||||||||
RSUs | $ | 124,306 | 2.03 | |||||||||||||
ESPP | $ | 19,606 | 1.17 | |||||||||||||
Schedule of Share-based Compensation, Activity | ' | |||||||||||||||
The following table presents details on grants made by the Company for the following periods: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||
Granted | Weighted-Average | Granted | Weighted-Average | |||||||||||||
(in thousands) | Grant Date Fair Value | (in thousands) | Grant Date Fair Value | |||||||||||||
Stock options | 1,770 | $ | 3.16 | 2,875 | $ | 2.34 | ||||||||||
RSUs | 10,419 | $ | 9.81 | 11,519 | $ | 5.7 | ||||||||||
The total intrinsic value of stock options exercised for the nine months ended August 2, 2014, and July 27, 2013, was $22.3 million and $19.5 million, respectively. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) Tax Effects | ' | |||||||||||||||||||||||
The tax effects allocated to each component of other comprehensive loss for the three months ended August 2, 2014, and July 27, 2013, are as follows (in thousands): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||||||||||
Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | |||||||||||||||||||
Unrealized gains (losses) on cash flow hedges: | ||||||||||||||||||||||||
Change in unrealized gains and losses, foreign exchange contracts | $ | (203 | ) | $ | 48 | $ | (155 | ) | $ | (1,125 | ) | $ | 125 | $ | (1,000 | ) | ||||||||
Net gains and losses reclassified into earnings, foreign exchange contracts (1) | (246 | ) | 28 | (218 | ) | (11 | ) | 1 | (10 | ) | ||||||||||||||
Net unrealized gains (losses) on cash flow hedges | (449 | ) | 76 | (373 | ) | (1,136 | ) | 126 | (1,010 | ) | ||||||||||||||
Foreign currency translation adjustments | (191 | ) | — | (191 | ) | (1,470 | ) | — | (1,470 | ) | ||||||||||||||
Total other comprehensive loss | $ | (640 | ) | $ | 76 | $ | (564 | ) | $ | (2,606 | ) | $ | 126 | $ | (2,480 | ) | ||||||||
The tax effects allocated to each component of other comprehensive income (loss) for the nine months ended August 2, 2014, and July 27, 2013, are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||||||||||
Before-Tax Amount | Tax (Expense) or Benefit | Net-of-Tax Amount | Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | |||||||||||||||||||
Unrealized gains (losses) on cash flow hedges: | ||||||||||||||||||||||||
Change in unrealized gains and losses, foreign exchange contracts | $ | 23 | $ | (9 | ) | $ | 14 | $ | (3,100 | ) | $ | 102 | $ | (2,998 | ) | |||||||||
Net gains and losses reclassified into earnings, foreign exchange contracts (1) | (240 | ) | 23 | (217 | ) | (242 | ) | 28 | (214 | ) | ||||||||||||||
Net unrealized gains (losses) on cash flow hedges | (217 | ) | 14 | (203 | ) | (3,342 | ) | 130 | (3,212 | ) | ||||||||||||||
Foreign currency translation adjustments | 284 | — | 284 | (3,612 | ) | — | (3,612 | ) | ||||||||||||||||
Total other comprehensive income (loss) | $ | 67 | $ | 14 | $ | 81 | $ | (6,954 | ) | $ | 130 | $ | (6,824 | ) | ||||||||||
-1 | For Condensed Consolidated Statements of Income classification of amounts reclassified from accumulated other comprehensive loss, see Note 10, “Derivative Instruments and Hedging Activities,” of the Notes to Condensed Consolidated Financial Statements. | |||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The changes in accumulated other comprehensive loss by component, net of tax, for the nine months ended August 2, 2014, and July 27, 2013, are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
August 2, 2014 | July 27, 2013 | |||||||||||||||||||||||
Gains (Losses) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | Gains (Losses) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | |||||||||||||||||||
Beginning balance | $ | 267 | $ | (13,711 | ) | $ | (13,444 | ) | $ | 2,390 | $ | (12,254 | ) | $ | (9,864 | ) | ||||||||
Change in unrealized gains and losses | 14 | 284 | 298 | (2,998 | ) | (3,612 | ) | (6,610 | ) | |||||||||||||||
Net gains and losses reclassified into earnings | (217 | ) | — | (217 | ) | (214 | ) | — | (214 | ) | ||||||||||||||
Net current-period other comprehensive income (loss) | (203 | ) | 284 | 81 | (3,212 | ) | (3,612 | ) | (6,824 | ) | ||||||||||||||
Ending balance | $ | 64 | $ | (13,427 | ) | $ | (13,363 | ) | $ | (822 | ) | $ | (15,866 | ) | $ | (16,688 | ) | |||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule Of Financial Information By Reportable Segment | ' | |||||||||||||||
Summarized financial information by reportable segment for the three and nine months ended August 2, 2014, and July 27, 2013, based on the internal management reporting system, is as follows (in thousands): | ||||||||||||||||
SAN | IP Networking Products | Global Services | Total | |||||||||||||
Products | ||||||||||||||||
Three months ended August 2, 2014 | ||||||||||||||||
Net revenues | $ | 325,238 | $ | 132,559 | $ | 87,667 | $ | 545,464 | ||||||||
Cost of revenues | 83,938 | 61,580 | 38,233 | 183,751 | ||||||||||||
Gross margin | $ | 241,300 | $ | 70,979 | $ | 49,434 | $ | 361,713 | ||||||||
Three months ended July 27, 2013 | ||||||||||||||||
Net revenues | $ | 314,087 | $ | 133,906 | $ | 88,558 | $ | 536,551 | ||||||||
Cost of revenues | 85,611 | 74,830 | 37,908 | 198,349 | ||||||||||||
Gross margin | $ | 228,476 | $ | 59,076 | $ | 50,650 | $ | 338,202 | ||||||||
Nine months ended August 2, 2014 | ||||||||||||||||
Net revenues | $ | 1,001,858 | $ | 373,424 | $ | 271,627 | $ | 1,646,909 | ||||||||
Cost of revenues | 261,393 | 180,023 | 116,818 | 558,234 | ||||||||||||
Gross margin | $ | 740,465 | $ | 193,401 | $ | 154,809 | $ | 1,088,675 | ||||||||
Nine months ended July 27, 2013 | ||||||||||||||||
Net revenues | $ | 994,909 | $ | 407,077 | $ | 262,078 | $ | 1,664,064 | ||||||||
Cost of revenues | 270,461 | 228,954 | 118,410 | 617,825 | ||||||||||||
Gross margin | $ | 724,448 | $ | 178,123 | $ | 143,668 | $ | 1,046,239 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||
Aug. 02, 2014 | ||||||||||||||||
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): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
August 2, | July 27, | August 2, | July 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic net income per share | ||||||||||||||||
Net income | $ | 87,352 | $ | 118,696 | $ | 154,552 | $ | 144,390 | ||||||||
Weighted-average shares used in computing basic net income per share | 432,448 | 449,446 | 436,396 | 452,474 | ||||||||||||
Basic net income per share | $ | 0.2 | $ | 0.26 | $ | 0.35 | $ | 0.32 | ||||||||
Diluted net income per share | ||||||||||||||||
Net income | $ | 87,352 | $ | 118,696 | $ | 154,552 | $ | 144,390 | ||||||||
Weighted-average shares used in computing basic net income per share | 432,448 | 449,446 | 436,396 | 452,474 | ||||||||||||
Dilutive potential common shares in the form of stock options | 1,616 | 2,842 | 2,162 | 3,686 | ||||||||||||
Dilutive potential common shares in the form of other share-based awards | 7,725 | 9,056 | 10,038 | 8,701 | ||||||||||||
Weighted-average shares used in computing diluted net income per share | 441,789 | 461,344 | 448,596 | 464,861 | ||||||||||||
Diluted net income per share | $ | 0.2 | $ | 0.26 | $ | 0.34 | $ | 0.31 | ||||||||
Antidilutive potential common shares in the form of (1) | ||||||||||||||||
Stock options | 1,651 | 13,146 | 2,050 | 14,637 | ||||||||||||
Other share-based awards | 1,331 | 12 | 1,119 | 171 | ||||||||||||
(1) | These amounts are excluded from the computation of diluted net income per share. |
Guarantor_And_NonGuarantor_Sub1
Guarantor And Non-Guarantor Subsidiaries (Tables) | 9 Months Ended | |||||||||||||||||||
Aug. 02, 2014 | ||||||||||||||||||||
Guarantor And Non-Guarantor Subsidiaries [Abstract] | ' | |||||||||||||||||||
Schedule Of Condensed Consolidated Balance Sheet | ' | |||||||||||||||||||
The following is the condensed consolidating balance sheet as of August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 373,413 | $ | 8,284 | $ | 767,690 | $ | — | $ | 1,149,387 | ||||||||||
Accounts receivable, net | 115,564 | 12 | 76,240 | — | 191,816 | |||||||||||||||
Inventories | 38,290 | — | 2,296 | — | 40,586 | |||||||||||||||
Intercompany receivables | — | 486,581 | — | (486,581 | ) | — | ||||||||||||||
Other current assets | 149,247 | 61 | 10,408 | 655 | 160,371 | |||||||||||||||
Total current assets | 676,514 | 494,938 | 856,634 | (485,926 | ) | 1,542,160 | ||||||||||||||
Property and equipment, net | 431,159 | 233 | 16,803 | — | 448,195 | |||||||||||||||
Investment in subsidiaries | 1,156,473 | — | — | (1,156,473 | ) | — | ||||||||||||||
Other non-current assets | 1,526,781 | 81,338 | 3,416 | — | 1,611,535 | |||||||||||||||
Total assets | $ | 3,790,927 | $ | 576,509 | $ | 876,853 | $ | (1,642,399 | ) | $ | 3,601,890 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 58,285 | $ | — | $ | 25,957 | $ | — | $ | 84,242 | ||||||||||
Current portion of long-term debt | 1,817 | — | — | — | 1,817 | |||||||||||||||
Intercompany payables | 381,223 | — | 105,358 | (486,581 | ) | — | ||||||||||||||
Other current liabilities | 299,555 | 3,990 | 114,175 | 655 | 418,375 | |||||||||||||||
Total current liabilities | 740,880 | 3,990 | 245,490 | (485,926 | ) | 504,434 | ||||||||||||||
Long-term debt, net of current portion | 595,420 | — | — | — | 595,420 | |||||||||||||||
Other non-current liabilities | 118,026 | — | 47,409 | — | 165,435 | |||||||||||||||
Total liabilities | 1,454,326 | 3,990 | 292,899 | (485,926 | ) | 1,265,289 | ||||||||||||||
Total stockholders’ equity | 2,336,601 | 572,519 | 583,954 | (1,156,473 | ) | 2,336,601 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,790,927 | $ | 576,509 | $ | 876,853 | $ | (1,642,399 | ) | $ | 3,601,890 | |||||||||
The following is the condensed consolidating balance sheet as of October 26, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
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 | |||||||||
Schedule Of Condensed Consolidated Statement Of Income | ' | |||||||||||||||||||
The following is the condensed consolidating statement of operations for the three months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 303,946 | $ | 366 | $ | 241,152 | $ | — | $ | 545,464 | ||||||||||
Intercompany revenues | 6,127 | — | 3,807 | (9,934 | ) | — | ||||||||||||||
Total net revenues | 310,073 | 366 | 244,959 | (9,934 | ) | 545,464 | ||||||||||||||
Cost of revenues | 118,972 | 170 | 63,192 | 1,417 | 183,751 | |||||||||||||||
Intercompany (income) cost of revenues | (15,723 | ) | — | 25,657 | (9,934 | ) | — | |||||||||||||
Total cost of revenues | 103,249 | 170 | 88,849 | (8,517 | ) | 183,751 | ||||||||||||||
Gross margin (loss) | 206,824 | 196 | 156,110 | (1,417 | ) | 361,713 | ||||||||||||||
Operating expenses | 185,967 | 223 | 59,043 | (1,417 | ) | 243,816 | ||||||||||||||
Intercompany operating expenses (income) | (55,043 | ) | (9,481 | ) | 64,524 | — | — | |||||||||||||
Total operating expenses | 130,924 | (9,258 | ) | 123,567 | (1,417 | ) | 243,816 | |||||||||||||
Income (loss) from operations | 75,900 | 9,454 | 32,543 | — | 117,897 | |||||||||||||||
Other income (expense) | (3,658 | ) | (58 | ) | (161 | ) | — | (3,877 | ) | |||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 72,242 | 9,396 | 32,382 | — | 114,020 | |||||||||||||||
Income tax expense | 25,325 | — | 1,343 | — | 26,668 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 40,435 | — | — | (40,435 | ) | — | ||||||||||||||
Net income (loss) | $ | 87,352 | $ | 9,396 | $ | 31,039 | $ | (40,435 | ) | $ | 87,352 | |||||||||
The following is the condensed consolidating statement of operations for the three months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 327,422 | $ | 1,053 | $ | 208,076 | $ | — | $ | 536,551 | ||||||||||
Intercompany revenues | 5,647 | — | 7,855 | (13,502 | ) | — | ||||||||||||||
Total net revenues | 333,069 | 1,053 | 215,931 | (13,502 | ) | 536,551 | ||||||||||||||
Cost of revenues | 137,260 | 6,891 | 52,453 | 1,745 | 198,349 | |||||||||||||||
Intercompany (income) cost of revenues | (14,489 | ) | — | 27,991 | (13,502 | ) | — | |||||||||||||
Total cost of revenues | 122,771 | 6,891 | 80,444 | (11,757 | ) | 198,349 | ||||||||||||||
Gross margin (loss) | 210,298 | (5,838 | ) | 135,487 | (1,745 | ) | 338,202 | |||||||||||||
Operating expenses | 198,119 | 9,888 | 57,577 | (1,745 | ) | 263,839 | ||||||||||||||
Intercompany operating expenses (income) | (14,763 | ) | (11 | ) | 14,774 | — | — | |||||||||||||
Total operating expenses | 183,356 | 9,877 | 72,351 | (1,745 | ) | 263,839 | ||||||||||||||
Income (loss) from operations | 26,942 | (15,715 | ) | 63,136 | — | 74,363 | ||||||||||||||
Other income (expense) | 67,657 | 350 | (570 | ) | — | 67,437 | ||||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 94,599 | (15,365 | ) | 62,566 | — | 141,800 | ||||||||||||||
Income tax expense (benefit) | 26,079 | — | (2,975 | ) | — | 23,104 | ||||||||||||||
Equity in net earnings (losses) of subsidiaries | 50,176 | — | — | (50,176 | ) | — | ||||||||||||||
Net income (loss) | $ | 118,696 | $ | (15,365 | ) | $ | 65,541 | $ | (50,176 | ) | $ | 118,696 | ||||||||
The following is the condensed consolidating statement of operations for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 940,696 | $ | 1,747 | $ | 704,466 | $ | — | $ | 1,646,909 | ||||||||||
Intercompany revenues | 19,942 | — | 10,484 | (30,426 | ) | — | ||||||||||||||
Total net revenues | 960,638 | 1,747 | 714,950 | (30,426 | ) | 1,646,909 | ||||||||||||||
Cost of revenues | 361,085 | 8,992 | 183,715 | 4,442 | 558,234 | |||||||||||||||
Intercompany (income) cost of revenues | (45,882 | ) | — | 76,308 | (30,426 | ) | — | |||||||||||||
Total cost of revenues | 315,203 | 8,992 | 260,023 | (25,984 | ) | 558,234 | ||||||||||||||
Gross margin (loss) | 645,435 | (7,245 | ) | 454,927 | (4,442 | ) | 1,088,675 | |||||||||||||
Operating expenses | 665,764 | 7,142 | 160,629 | (4,442 | ) | 829,093 | ||||||||||||||
Intercompany operating expenses (income) | (144,783 | ) | (23,929 | ) | 168,712 | — | — | |||||||||||||
Total operating expenses | 520,981 | (16,787 | ) | 329,341 | (4,442 | ) | 829,093 | |||||||||||||
Income (loss) from operations | 124,454 | 9,542 | 125,586 | — | 259,582 | |||||||||||||||
Other income (expense) | (23,495 | ) | (192 | ) | 24 | — | (23,663 | ) | ||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 100,959 | 9,350 | 125,610 | — | 235,919 | |||||||||||||||
Income tax expense | 76,609 | — | 4,758 | — | 81,367 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 130,202 | — | — | (130,202 | ) | — | ||||||||||||||
Net income (loss) | $ | 154,552 | $ | 9,350 | $ | 120,852 | $ | (130,202 | ) | $ | 154,552 | |||||||||
The following is the condensed consolidating statement of operations for the nine months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Revenues | $ | 1,004,002 | $ | 3,176 | $ | 656,886 | $ | — | $ | 1,664,064 | ||||||||||
Intercompany revenues | 21,881 | — | 17,680 | (39,561 | ) | — | ||||||||||||||
Total net revenues | 1,025,883 | 3,176 | 674,566 | (39,561 | ) | 1,664,064 | ||||||||||||||
Cost of revenues | 405,005 | 29,104 | 177,744 | 5,972 | 617,825 | |||||||||||||||
Intercompany (income) cost of revenues | (41,711 | ) | — | 81,272 | (39,561 | ) | — | |||||||||||||
Total cost of revenues | 363,294 | 29,104 | 259,016 | (33,589 | ) | 617,825 | ||||||||||||||
Gross margin (loss) | 662,589 | (25,928 | ) | 415,550 | (5,972 | ) | 1,046,239 | |||||||||||||
Operating expenses | 608,523 | 30,941 | 187,914 | (5,972 | ) | 821,406 | ||||||||||||||
Intercompany operating expenses (income) | (89,648 | ) | (14,288 | ) | 103,936 | — | — | |||||||||||||
Total operating expenses | 518,875 | 16,653 | 291,850 | (5,972 | ) | 821,406 | ||||||||||||||
Income (loss) from operations | 143,714 | (42,581 | ) | 123,700 | — | 224,833 | ||||||||||||||
Other expense | 34,305 | 306 | (3,486 | ) | (391 | ) | 30,734 | |||||||||||||
Income (loss) before income tax provision and equity in net earnings (losses) of subsidiaries | 178,019 | (42,275 | ) | 120,214 | (391 | ) | 255,567 | |||||||||||||
Income tax expense | 109,114 | 866 | 1,197 | — | 111,177 | |||||||||||||||
Equity in net earnings (losses) of subsidiaries | 75,875 | — | — | (75,875 | ) | — | ||||||||||||||
Net income (loss) | $ | 144,780 | $ | (43,141 | ) | $ | 119,017 | $ | (76,266 | ) | $ | 144,390 | ||||||||
Schedule Of Condensed Consolidated Statement Of Comprehensive Income [Table Text Block] | ' | |||||||||||||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the three months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 87,352 | $ | 9,396 | $ | 31,039 | $ | (40,435 | ) | $ | 87,352 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized gains on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (155 | ) | — | (155 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (218 | ) | — | (218 | ) | |||||||||||||
Net unrealized gains on cash flow hedges | — | — | (373 | ) | — | (373 | ) | |||||||||||||
Foreign currency translation adjustments | 18 | — | (209 | ) | — | (191 | ) | |||||||||||||
Total other comprehensive income (loss) | 18 | — | (582 | ) | — | (564 | ) | |||||||||||||
Total comprehensive income (loss) | $ | 87,370 | $ | 9,396 | $ | 30,457 | $ | (40,435 | ) | $ | 86,788 | |||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the three months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 118,696 | $ | (15,365 | ) | $ | 65,541 | $ | (50,176 | ) | $ | 118,696 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (1,000 | ) | — | (1,000 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | — | — | (1,010 | ) | — | (1,010 | ) | |||||||||||||
Foreign currency translation adjustments | 23 | — | (1,493 | ) | — | (1,470 | ) | |||||||||||||
Total other comprehensive income (loss) | 23 | — | (2,503 | ) | — | (2,480 | ) | |||||||||||||
Total comprehensive income (loss) | $ | 118,719 | $ | (15,365 | ) | $ | 63,038 | $ | (50,176 | ) | $ | 116,216 | ||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 154,552 | $ | 9,350 | $ | 120,852 | $ | (130,202 | ) | $ | 154,552 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized gains on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | 14 | — | 14 | |||||||||||||||
Net gains reclassified into earnings | — | — | (217 | ) | — | (217 | ) | |||||||||||||
Net unrealized gains on cash flow hedges | — | — | (203 | ) | — | (203 | ) | |||||||||||||
Foreign currency translation adjustments | (113 | ) | 171 | 226 | — | 284 | ||||||||||||||
Total other comprehensive income (loss) | (113 | ) | 171 | 23 | — | 81 | ||||||||||||||
Total comprehensive income (loss) | $ | 154,439 | $ | 9,521 | $ | 120,875 | $ | (130,202 | ) | $ | 154,633 | |||||||||
The following is the condensed consolidating statement of comprehensive income (loss) for the nine months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net income (loss) | $ | 144,780 | $ | (43,141 | ) | $ | 119,017 | $ | (76,266 | ) | $ | 144,390 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||||||
Change in unrealized gains and losses | — | — | (2,998 | ) | — | (2,998 | ) | |||||||||||||
Net gains reclassified into earnings | — | — | (214 | ) | — | (214 | ) | |||||||||||||
Net unrealized losses on cash flow hedges | — | — | (3,212 | ) | — | (3,212 | ) | |||||||||||||
Foreign currency translation adjustments | 1,149 | (628 | ) | (4,133 | ) | — | (3,612 | ) | ||||||||||||
Total other comprehensive income (loss) | 1,149 | (628 | ) | (7,345 | ) | — | (6,824 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 145,929 | $ | (43,769 | ) | $ | 111,672 | $ | (76,266 | ) | $ | 137,566 | ||||||||
Schedule Of Condensed Consolidated Statement Of Cash Flows | ' | |||||||||||||||||||
The following is the condensed consolidating statement of cash flows for the nine months ended August 2, 2014 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 196,642 | $ | (1,017 | ) | $ | 188,119 | $ | — | $ | 383,744 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property and equipment | (32,574 | ) | — | (8,601 | ) | — | (41,175 | ) | ||||||||||||
Purchases of non-marketable minority equity investments | (223 | ) | — | — | — | (223 | ) | |||||||||||||
Proceeds from sale of non-marketable equity investment | 10,748 | — | — | — | 10,748 | |||||||||||||||
Proceeds from sale of network adapter business | 3,081 | — | 6,914 | — | 9,995 | |||||||||||||||
Proceeds from collection of note receivable | 250 | — | — | — | 250 | |||||||||||||||
Net cash provided by (used in) investing activities | (18,718 | ) | — | (1,687 | ) | — | (20,405 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payment of principal related to capital leases | (2,382 | ) | — | — | — | (2,382 | ) | |||||||||||||
Common stock repurchases | (302,560 | ) | — | — | — | (302,560 | ) | |||||||||||||
Proceeds from issuance of common stock | 81,293 | — | — | — | 81,293 | |||||||||||||||
Payment of cash dividends to stockholders | (15,270 | ) | — | — | — | (15,270 | ) | |||||||||||||
Excess tax benefits from stock-based compensation | 37,698 | — | — | — | 37,698 | |||||||||||||||
Net cash used in financing activities | (201,221 | ) | — | — | — | (201,221 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | 272 | — | 272 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (23,297 | ) | (1,017 | ) | 186,704 | — | 162,390 | |||||||||||||
Cash and cash equivalents, beginning of period | 396,710 | 9,301 | 580,986 | — | 986,997 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 373,413 | $ | 8,284 | $ | 767,690 | $ | — | $ | 1,149,387 | ||||||||||
The following is the condensed consolidating statement of cash flows for the nine months ended July 27, 2013 (in thousands): | ||||||||||||||||||||
Brocade | Subsidiary | Non-Guarantor Subsidiaries | Consolidating | Total | ||||||||||||||||
Communications | Guarantors | Adjustments | ||||||||||||||||||
Systems, Inc. | ||||||||||||||||||||
Net cash provided by operating activities | $ | 181,335 | $ | 2,846 | $ | 97,079 | $ | — | $ | 281,260 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property and equipment | (35,969 | ) | (23 | ) | (5,957 | ) | — | (41,949 | ) | |||||||||||
Net cash acquired (paid) in connection with acquisition | (44,769 | ) | 140 | — | — | (44,629 | ) | |||||||||||||
Net cash provided by (used in) investing activities | (80,738 | ) | 117 | (5,957 | ) | — | (86,578 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from senior unsecured notes | 296,250 | — | — | — | 296,250 | |||||||||||||||
Payment of debt issuance costs related to senior unsecured notes | (992 | ) | — | — | — | (992 | ) | |||||||||||||
Payment of principal related to senior secured notes | (300,000 | ) | — | — | — | (300,000 | ) | |||||||||||||
Payment of principal related to capital leases | (1,536 | ) | — | — | — | (1,536 | ) | |||||||||||||
Common stock repurchases | (187,360 | ) | — | — | — | (187,360 | ) | |||||||||||||
Proceeds from issuance of common stock | 71,858 | — | — | — | 71,858 | |||||||||||||||
Excess tax benefits from stock-based compensation | 6,909 | — | — | — | 6,909 | |||||||||||||||
Net cash used in financing activities | (114,871 | ) | — | — | — | (114,871 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (2,944 | ) | — | (2,944 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (14,274 | ) | 2,963 | 88,178 | — | 76,867 | ||||||||||||||
Cash and cash equivalents, beginning of period | 284,466 | 680 | 428,080 | — | 713,226 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 270,192 | $ | 3,643 | $ | 516,258 | $ | — | $ | 790,093 | ||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Concentration of Risk Narrative)(Details) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
Aug. 02, 2014 | Aug. 02, 2014 | Oct. 26, 2013 | Aug. 02, 2014 | Oct. 26, 2013 | Aug. 02, 2014 | Oct. 26, 2013 | Aug. 02, 2014 | Oct. 26, 2013 | Oct. 26, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | |
Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | ||
Accounts Receivable | Accounts Receivable | Accounts Receivable | Accounts Receivable | Accounts Receivable | Accounts Receivable | Accounts Receivable | Accounts Receivable | Accounts Receivable | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | ||
customer | customer | Major Customer One | Major Customer One | Major Customer Two | Major Customer Two | Major Customer Three | Major Customer Three | Major Customer Four | customer | customer | Major Customer One | Major Customer One | Major Customer Two | Major Customer Two | Major Customer Three | Major Customer Three | ||
Concentration Risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | 35.00% | 52.00% | 13.00% | 18.00% | 12.00% | 12.00% | 10.00% | 11.00% | 11.00% | 48.00% | 47.00% | 21.00% | 20.00% | 16.00% | 15.00% | 11.00% | 12.00% |
Number Of Customers Included In Concentration Disclosures | ' | 3 | 4 | ' | ' | ' | ' | ' | ' | ' | 3 | 3 | ' | ' | ' | ' | ' | ' |
Number of Financial Institutions | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Divestitures_Narrative_Details
Divestitures (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jan. 17, 2014 | |
Network Adapter Business | Network Adapter Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups | ' | ' | ' | ' | ' | ' |
Disposal Group, Description and Timing of Disposal | ' | ' | ' | ' | 'On January 17, 2014, the Company completed the sale of its network adapter business to QLogic Corporation, as part of the Company’s business strategy to focus development on a portfolio of high performance networking products and services—both hardware and software-based—that meet the demands of today’s data centers whether virtualized or cloud based. | ' |
Disposal Group, Goodwill | ' | ' | ' | ' | ' | $4,100,000 |
Net Assets of Disposal Group | ' | ' | ' | ' | ' | 5,100,000 |
Disposal Group, Gain (Loss) on Disposal | $0 | $0 | $4,884,000 | $0 | $4,900,000 | ' |
Disposal Group, Income Statement Caption | ' | ' | ' | ' | 'Gain on sale of network adapter business | ' |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (Vyatta, USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Jan. 26, 2013 | Aug. 02, 2014 |
Vyatta | ' | ' |
Business Acquisition | ' | ' |
Effective Date of Acquisition | ' | 9-Nov-12 |
Acquisition Cost Expensed | $0.40 | ' |
Consideration Paid Held In Escrow, Amount | 7 | ' |
Consideration Paid Held In Escrow, Escrow Duration | '18 months | ' |
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 $) | 3 Months Ended | ||||
3-May-14 | Aug. 02, 2014 | Oct. 26, 2013 | |||
Intangible Assets, Net (Including Goodwill) | ' | ' | ' | ||
Goodwill | ' | $1,556,361,000 | $1,645,437,000 | ||
In-process research and development (1) | ' | 12,260,000 | [1] | 21,590,000 | [1] |
Total intangible assets subject to amortization | ' | 10,443,000 | [2] | 18,668,000 | |
Total intangible assets | ' | 1,579,064,000 | 1,685,695,000 | ||
Completed IPRD | $9,300,000 | ' | ' | ||
[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. As an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, which the Company conducts 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 three months ended May 3, 2014, development work was completed on $9.3 million of the IPRD intangible asset and this completed IPRD intangible asset is being amortized as Core/developed technology. The development effort on the remaining IPRD intangible asset is expected to be completed in the first half of fiscal year 2016. | ||||
[2] | During the nine months ended August 2, 2014, $477.3 million of 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 $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | ||||
Goodwill | ' | ' | ' | ' | ||||
Goodwill, Gross, Beginning Balance | ' | ' | $1,691,269 | ' | ||||
Accumulated impairment losses, Beginning Balance | ' | ' | -45,832 | ' | ||||
Goodwill, Net, Beginning Balance | ' | ' | 1,645,437 | ' | ||||
Goodwill, Impairment Loss | 0 | [1] | 0 | [1] | -83,382 | [1],[2] | 0 | [1] |
Goodwill, Written off related to divestitures | ' | ' | -4,131 | [3] | ' | |||
Goodwill, Tax and other adjustments | ' | ' | -1,563 | [4] | ' | |||
Goodwill, Gross, Ending Balance | 1,685,575 | ' | 1,685,575 | ' | ||||
Accumulated impairment losses, Ending Balance | -129,214 | ' | -129,214 | ' | ||||
Goodwill, Net, Ending Balance | 1,556,361 | ' | 1,556,361 | ' | ||||
SAN Products | ' | ' | ' | ' | ||||
Goodwill | ' | ' | ' | ' | ||||
Goodwill, Gross, Beginning Balance | ' | ' | 176,878 | ' | ||||
Accumulated impairment losses, Beginning Balance | ' | ' | 0 | ' | ||||
Goodwill, Net, Beginning Balance | ' | ' | 176,878 | ' | ||||
Goodwill, Impairment Loss | ' | ' | 0 | [2] | ' | |||
Goodwill, Written off related to divestitures | ' | ' | -474 | [3] | ' | |||
Goodwill, Tax and other adjustments | ' | ' | -52 | [4] | ' | |||
Goodwill, Gross, Ending Balance | 176,352 | ' | 176,352 | ' | ||||
Accumulated impairment losses, Ending Balance | 0 | ' | 0 | ' | ||||
Goodwill, Net, Ending Balance | 176,352 | ' | 176,352 | ' | ||||
IP Networking Products | ' | ' | ' | ' | ||||
Goodwill | ' | ' | ' | ' | ||||
Goodwill, Gross, Beginning Balance | ' | ' | 1,358,975 | ' | ||||
Accumulated impairment losses, Beginning Balance | ' | ' | -45,832 | ' | ||||
Goodwill, Net, Beginning Balance | ' | ' | 1,313,143 | ' | ||||
Goodwill, Impairment Loss | ' | ' | -83,382 | [2] | ' | |||
Goodwill, Written off related to divestitures | ' | ' | -3,657 | [3] | ' | |||
Goodwill, Tax and other adjustments | ' | ' | -1,511 | [4] | ' | |||
Goodwill, Gross, Ending Balance | 1,353,807 | ' | 1,353,807 | ' | ||||
Accumulated impairment losses, Ending Balance | -129,214 | ' | -129,214 | ' | ||||
Goodwill, Net, Ending Balance | 1,224,593 | ' | 1,224,593 | ' | ||||
Global Services | ' | ' | ' | ' | ||||
Goodwill | ' | ' | ' | ' | ||||
Goodwill, Gross, Beginning Balance | ' | ' | 155,416 | ' | ||||
Accumulated impairment losses, Beginning Balance | ' | ' | 0 | ' | ||||
Goodwill, Net, Beginning Balance | ' | ' | 155,416 | ' | ||||
Goodwill, Impairment Loss | ' | ' | 0 | [2] | ' | |||
Goodwill, Written off related to divestitures | ' | ' | 0 | [3] | ' | |||
Goodwill, Tax and other adjustments | ' | ' | 0 | [4] | ' | |||
Goodwill, Gross, Ending Balance | 155,416 | ' | 155,416 | ' | ||||
Accumulated impairment losses, Ending Balance | 0 | ' | 0 | ' | ||||
Goodwill, Net, Ending Balance | $155,416 | ' | $155,416 | ' | ||||
[1] | For additional discussion on goodwill impairment, see Note 4, “Goodwill and Intangible Assets,†of the Notes to Condensed Consolidated Financial Statements. | |||||||
[2] | In the second quarter of fiscal year 2014, the Company made a strategic shift in the allocation of its engineering resources and has reduced its investment in the hardware-based Brocade ADX® products and increased investment in the software-based Brocade ADX products for Layer 4-7 applications. As a result of this change in strategy, the Company expects hardware-based Brocade ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge during the second fiscal quarter of 2014 because the book value of its Application Delivery Products (“ADPâ€) reporting unit net assets, which includes the Brocade ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted. | |||||||
[3] | The goodwill disposed relates to the sale of the Company’s network adapter business, see Note 3, “Acquisitions and Divestitures,†of the Notes to Condensed Consolidated Financial Statements. | |||||||
[4] | The goodwill adjustments during the nine months ended August 2, 2014, 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 Company's Intangible Assets) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Aug. 02, 2014 | Oct. 26, 2013 | ||
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | $12,720,000 | [1] | $480,700,000 |
Accumulated Amortization | 2,277,000 | [1] | 462,032,000 |
Net Carrying Value | 10,443,000 | [1] | 18,668,000 |
Weighted- Average Remaining Useful Life (in years) | '4 years 2 months 8 days | '0 years 6 months 29 days | |
Cost of Fully Amortized Intangible Assets | 477,300,000 | ' | |
Trade name | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 460,000 | 460,000 | |
Accumulated Amortization | 195,000 | 110,000 | |
Net Carrying Value | 265,000 | 350,000 | |
Weighted- Average Remaining Useful Life (in years) | '2 years 3 months 4 days | '3 years 0 months 4 days | |
Core/developed technology | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 10,370,000 | 192,340,000 | |
Accumulated Amortization | 1,364,000 | 185,254,000 | |
Net Carrying Value | 9,006,000 | 7,086,000 | |
Weighted- Average Remaining Useful Life (in years) | '4 years 5 months 1 day | '0 years 4 months 6 days | |
Customer relationships | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 1,080,000 | 287,090,000 | |
Accumulated Amortization | 374,000 | 276,473,000 | |
Net Carrying Value | 706,000 | 10,617,000 | |
Weighted- Average Remaining Useful Life (in years) | '3 years 3 months 4 days | '0 years 6 months 4 days | |
Non-compete agreements | ' | ' | |
Finite-Lived Intangible Assets | ' | ' | |
Gross Carrying Value | 810,000 | 810,000 | |
Accumulated Amortization | 344,000 | 195,000 | |
Net Carrying Value | $466,000 | $615,000 | |
Weighted- Average Remaining Useful Life (in years) | '2 years 3 months 4 days | '3 years 0 months 4 days | |
[1] | During the nine months ended August 2, 2014, $477.3 million of 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 $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Cost of revenues | $552 | $9,650 | $7,410 | $30,081 |
Operating expenses | 131 | 13,124 | 10,145 | 41,131 |
Total | $683 | $22,774 | $17,555 | $71,212 |
Goodwill_And_Intangible_Assets7
Goodwill And Intangible Assets (Schedule Of Estimated Future Amortization Of Intangible Assets) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 | |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | |
2014 (remaining three months) | $683 | ' | |
2015 | 2,731 | ' | |
2016 | 2,419 | ' | |
2017 | 2,104 | ' | |
2018 | 1,884 | ' | |
Thereafter | 622 | ' | |
Total | $10,443 | [1] | $18,668 |
[1] | During the nine months ended August 2, 2014, $477.3 million of intangible assets became fully amortized and, therefore, were removed from the balance sheet. |
Balance_Sheet_Details_Schedule
Balance Sheet Details (Schedule of Inventory) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $13,962 | $14,048 |
Finished goods | 26,624 | 31,296 |
Inventory, Net | $40,586 | $45,344 |
Balance_Sheet_Details_Schedule1
Balance Sheet Details (Schedule of Property, Plant and Equipment) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment | ' | ' | ||
Property and equipment, gross | $886,156 | $927,735 | ||
Less: Accumulated depreciation and amortization | -437,961 | [1],[2] | -454,795 | [1],[2] |
Total property and equipment, net | 448,195 | 472,940 | ||
Computer equipment | ' | ' | ||
Property, Plant and Equipment | ' | ' | ||
Property and equipment, gross | 13,709 | 16,006 | ||
Software | ' | ' | ||
Property, Plant and Equipment | ' | ' | ||
Property and equipment, gross | 61,401 | 57,186 | ||
Engineering and other equipment | ' | ' | ||
Property, Plant and Equipment | ' | ' | ||
Property and equipment, gross | 375,478 | [1] | 416,573 | [1] |
Furniture and fixtures | ' | ' | ||
Property, Plant and Equipment | ' | ' | ||
Property and equipment, gross | 29,422 | [1] | 29,029 | [1] |
Leasehold improvements | ' | ' | ||
Property, Plant and Equipment | ' | ' | ||
Property and equipment, gross | 21,487 | 24,287 | ||
Land and building | ' | ' | ||
Property, Plant and Equipment | ' | ' | ||
Property and equipment, gross | $384,659 | $384,654 | ||
[1] | Engineering and other equipment, furniture and fixtures, and accumulated depreciation and amortization include the following amounts under capital leases as of August 2, 2014, and October 26, 2013, respectively (in thousands): August 2, 2014 October 26, 2013Cost$11,925 $11,925Accumulated depreciation(6,747) (5,366)Total$5,178 $6,559 | |||
[2] | The following table presents the depreciation and amortization of property and equipment included in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended August 2, 2014 July 27, 2013 August 2, 2014 July 27, 2013Depreciation and amortization expense$19,761 $22,873 $62,815 $67,793 |
Balance_Sheet_Details_Schedule2
Balance Sheet Details (Schedule of Capital Leased Assets) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 |
In Thousands, unless otherwise specified | ||
Capital Leases | ' | ' |
Cost | $11,925 | $11,925 |
Accumulated depreciation | -6,747 | -5,366 |
Total | $5,178 | $6,559 |
Balance_Sheet_Details_Narrativ
Balance Sheet Details (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Balance Sheet Details [Abstract] | ' | ' | ' | ' |
Depreciation expense | $19,761 | $22,873 | $62,815 | $67,793 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Aug. 02, 2014 | Oct. 26, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ||
Money market funds | $799,144 | [1] | $431,750 | [1] |
Derivative assets | 523 | 1,814 | ||
Total assets measured at fair value | 799,667 | 433,564 | ||
Liabilities | ' | ' | ||
Derivative liabilities | 273 | 1,441 | ||
Total liabilities measured at fair value | 273 | 1,441 | ||
Quoted Prices In Active Markets For Identical Instruments (Level 1) | ' | ' | ||
Assets | ' | ' | ||
Money market funds | 799,144 | [1] | 431,750 | [1] |
Derivative assets | 0 | 0 | ||
Total assets measured at fair value | 799,144 | 431,750 | ||
Liabilities | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Total liabilities measured at fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Assets | ' | ' | ||
Money market funds | 0 | [1] | 0 | [1] |
Derivative assets | 523 | 1,814 | ||
Total assets measured at fair value | 523 | 1,814 | ||
Liabilities | ' | ' | ||
Derivative liabilities | 273 | 1,441 | ||
Total liabilities measured at fair value | 273 | 1,441 | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Assets | ' | ' | ||
Money market funds | 0 | [1] | 0 | [1] |
Derivative assets | 0 | 0 | ||
Total assets measured at fair value | 0 | 0 | ||
Liabilities | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Total liabilities measured at fair value | $0 | $0 | ||
[1] | Money market funds are reported within “Cash and cash equivalents†in the Condensed Consolidated Balance Sheets. |
Restructuring_and_Other_Costs_1
Restructuring and Other Costs (Schedule of Restructuring and Other Charges) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | ||||
Restructuring Charges [Abstract] | ' | ' | ' | ' | ||||
Goodwill impairment charge | $0 | [1] | $0 | [1] | $83,382 | [1],[2] | $0 | [1] |
Severance Costs | 0 | 0 | -1,788 | 0 | ||||
Business Exit Costs | 131 | 0 | 7,457 | 0 | ||||
Restructuring, goodwill impairment, and other related costs (Note 7) | $131 | $0 | $89,051 | $0 | ||||
[1] | For additional discussion on goodwill impairment, see Note 4, “Goodwill and Intangible Assets,†of the Notes to Condensed Consolidated Financial Statements. | |||||||
[2] | In the second quarter of fiscal year 2014, the Company made a strategic shift in the allocation of its engineering resources and has reduced its investment in the hardware-based Brocade ADX® products and increased investment in the software-based Brocade ADX products for Layer 4-7 applications. As a result of this change in strategy, the Company expects hardware-based Brocade ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge during the second fiscal quarter of 2014 because the book value of its Application Delivery Products (“ADPâ€) reporting unit net assets, which includes the Brocade ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted. |
Restructuring_and_Other_Costs_2
Restructuring and Other Costs (Schedule of Restructuring Reserve) (Details) (USD $) | 9 Months Ended | |
Aug. 02, 2014 | Oct. 26, 2013 | |
Restructuring | ' | ' |
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 'Restructuring, goodwill impairment, and other related costs | ' |
Initial Period in which Effects are Expected to be Realized | '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 2021. | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | $17,426,000 | ' |
Restructuring and other charges | 5,669,000 | ' |
Cash payments | -17,209,000 | ' |
Translation adjustment | 2,000 | ' |
Restructuring liabilities, Ending balance | 5,888,000 | ' |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 2,670,000 | 16,418,000 |
Non-current restructuring liabilities | 3,218,000 | 1,008,000 |
Fiscal 2013 Fourth Quarter Restructuring Plan | ' | ' |
Restructuring | ' | ' |
Restructuring and Related Activities, Initiation Date | 4-Sep-13 | ' |
Restructuring and Related Activities, Description | 'During the fiscal year ended October 26, 2013, and the first quarter of fiscal year 2014, the Company restructured certain business operations and reduced 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 restructuring plan included a workforce reduction of approximately 250 employees, primarily in the engineering, sales, and marketing organizations, as well as the cancellation of certain nonrecurring engineering agreements and exit from certain leased facilities. In connection with the restructuring plan, the Company incurred aggregate charges of $31.1 million through August 2, 2014, primarily related to severance and benefits charges and lease loss reserve and related costs, and substantially completed the restructuring plan by the end of the first quarter of fiscal year 2014. Severance and benefits charges incurred under this restructuring plan 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 associated outplacement services. 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 costs that will continue to be incurred under exited facilities’ lease contracts for the remaining term of the leases without economic benefit to the Company, reduced by estimated sublease income that could be reasonably obtained for these facilities. | ' |
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 Cost, Description | 'Severance and benefits charges incurred under this restructuring plan 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 associated outplacement services. 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 costs that will continue to be incurred under exited facilities’ lease contracts for the remaining term of the leases without economic benefit to the Company, reduced by estimated sublease income that could be reasonably obtained for these facilities. The Company reevaluates its estimates and assumptions on a quarterly basis and makes adjustments to the restructuring liabilities balance if necessary. During the nine months ended August 2, 2014, the Company reversed approximately $1.8 million of severance and benefits charges due to actual cash payments to certain terminated employees being lower than original estimates as a result of the completion of the severance arrangements with these employees during the first quarter of fiscal year 2014. | ' |
Restructuring and Related Cost, Cost Incurred to Date | 31,100,000 | ' |
Restructuring Reserve, Accrual Adjustment | 1,800,000 | ' |
Restructuring Reserve, Adjustment Description | 'The Company reevaluates its estimates and assumptions on a quarterly basis and makes adjustments to the restructuring liabilities balance if necessary. During the nine months ended August 2, 2014, the Company reversed approximately $1.8 million of severance and benefits charges due to actual cash payments to certain terminated employees being lower than original estimates as a result of the completion of the severance arrangements with these employees during the first quarter of fiscal year 2014. | ' |
Restructuring and Related Activities, Completion Date | 25-Jan-14 | ' |
Restructuring and Related Cost, Number of Positions Eliminated, Inception to Date | 250 | ' |
Prior Restructuring Plans | ' | ' |
Restructuring | ' | ' |
Restructuring and Related Activities, Description | 'Prior to fiscal year 2013, the Company also 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. | ' |
Restructuring and Related Cost, Description | 'Prior to fiscal year 2013, the Company also 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 | 15,216,000 | ' |
Restructuring and other charges | -1,788,000 | ' |
Cash payments | -13,258,000 | ' |
Translation adjustment | 0 | ' |
Restructuring liabilities, Ending balance | 170,000 | ' |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 170,000 | ' |
Non-current restructuring liabilities | 0 | ' |
Contract Terminations and Other | Fiscal 2013 Fourth Quarter Restructuring Plan | ' | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | 416,000 | ' |
Restructuring and other charges | 0 | ' |
Cash payments | -291,000 | ' |
Translation adjustment | 0 | ' |
Restructuring liabilities, Ending balance | 125,000 | ' |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 125,000 | ' |
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 | ' |
Restructuring and other charges | 7,457,000 | ' |
Cash payments | -2,978,000 | ' |
Translation adjustment | 2,000 | ' |
Restructuring liabilities, Ending balance | 4,481,000 | ' |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 1,936,000 | ' |
Non-current restructuring liabilities | 2,545,000 | ' |
Lease Loss Reserve and Related Costs | Prior Restructuring Plans | ' | ' |
Restructuring Reserve Rollforward | ' | ' |
Restructuring liabilities, Beginning balance | 1,794,000 | ' |
Restructuring and other charges | 0 | ' |
Cash payments | -682,000 | ' |
Translation adjustment | 0 | ' |
Restructuring liabilities, Ending balance | 1,112,000 | ' |
Restructuring Reserve Ending Balance | ' | ' |
Current restructuring liabilities | 439,000 | ' |
Non-current restructuring liabilities | $673,000 | ' |
Borrowings_Schedule_Of_LongTer
Borrowings (Schedule Of Long-Term Debt) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Aug. 02, 2014 | Oct. 26, 2013 |
Debt Instrument | ' | ' |
Long-term debt, gross | $602,218 | $604,600 |
Unamortized discount | 4,981 | 5,396 |
Current portion of long-term debt | 1,817 | 2,996 |
Long-term debt, net of current portion | 595,420 | 596,208 |
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 | 300,000 |
Effective interest rate | 4.83% | 4.83% |
Capital Lease Obligations | ' | ' |
Debt Instrument | ' | ' |
Maturity | 31-May-16 | ' |
Stated annual interest rate | 5.67% | ' |
Long-term debt, gross | $2,218 | $4,600 |
Effective interest rate | 5.36% | 5.50% |
Borrowings_Narrative_Details
Borrowings (Narrative) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 | Jan. 20, 2010 | Apr. 27, 2013 | Jan. 26, 2013 | Aug. 02, 2014 | Jan. 22, 2013 | Jan. 20, 2010 | Aug. 02, 2014 | Jan. 20, 2010 | Aug. 02, 2014 | Oct. 26, 2013 | Jan. 22, 2013 | Jan. 24, 2009 | Oct. 31, 2008 | Jan. 24, 2009 | Aug. 02, 2014 | Oct. 26, 2013 | Oct. 31, 2008 | Oct. 31, 2008 | Oct. 31, 2008 |
In Millions, unless otherwise specified | Senior Secured Notes | Senior Secured Notes | Senior Secured Notes | Senior Secured 2018 Notes | Senior Secured 2018 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 | Senior Unsecured 2023 Notes | Term Loan Facility | Term Loan Facility | Revolving Credit 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 | ' | ' | ' | ' | $300 | ' | $300 | ' | ' | $300 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Term Debt, Fair Value | 316.1 | 324.4 | ' | ' | ' | ' | ' | ' | ' | ' | 291 | 281.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Irrevocable deposit | ' | ' | ' | ' | ' | ' | 311.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of principal amount | ' | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Call premium | ' | ' | ' | ' | ' | ' | 9.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid interest deposited to escrow | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original term of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' |
Senior secured credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100 | ' | 125 | 125 | 125 | 25 | 25 |
Call premium cost and original issue discount and debt issuance costs related to lenders that did not participate in refinancing | ' | ' | ' | ' | $15.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Schedule_Of_Debt_Ma
Borrowings (Schedule Of Debt Maturities) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt, by Maturity [Abstract] | ' | ' |
2014 (remaining three months) | $642 | ' |
2015 | 1,286 | ' |
2016 | 290 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
Thereafter | 600,000 | ' |
Long-term debt, gross | $602,218 | $604,600 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Schedule Of Accrued Liability For Estimated Future Warranty Costs) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
Product Warranty Activity | ' | ' |
Beginning balance | $8,632 | $14,453 |
Liabilities accrued for warranties issued during the period | 3,498 | 3,753 |
Warranty claims paid and used during the period | -4,063 | -6,500 |
Changes in liability for pre-existing warranties during the period | -368 | -2,050 |
Ending balance | $7,699 | $9,656 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Purchase Commitment Narrative) (Details) (Details) (Inventory Purchase Commitment, USD $) | Aug. 02, 2014 |
In Millions, unless otherwise specified | |
Inventory Purchase Commitment | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' |
Purchase Commitment, Remaining Minimum Amount Committed | $172.10 |
Purchase Commitment, Recognized Loss | $3.30 |
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 $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | $246 | $11 | $240 | $242 |
Cost of revenues | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | 53 | 2 | 173 | 31 |
Research and development | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | -80 | -2 | -665 | 53 |
Sales and marketing | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | 236 | 10 | 657 | 152 |
General and administrative | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) related to the effective portion of foreign currency derivatives | $37 | $1 | $75 | $6 |
Derivative_Instruments_And_Hed4
Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Maximum derivative instrument maturity period | ' | ' | '15 months | ' |
Foreign Currency Transaction [Abstract] | ' | ' | ' | ' |
Foreign currency transaction gains (losses) | ($0.20) | $0.10 | ($0.30) | $0.20 |
Derivatives Designated As Hedging Instruments | Prepaid Expense And Other Current Asset | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gross unrealized gain positions | 0.5 | ' | 0.5 | ' |
Derivatives Designated As Hedging Instruments | Other Accrued Liabilities | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gross unrealized loss positions | ($0.30) | ' | ($0.30) | ' |
Derivative_Instruments_And_Hed5
Derivative Instruments And Hedging Activities (Schedule Of Total Gross Notional Amounts, Presented By Currency) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives Designated As Hedging Instruments | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | $38,307 | $98,614 |
Derivatives Designated As Hedging Instruments | Euro | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 12,553 | 16,012 |
Derivatives Designated As Hedging Instruments | British pound | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 8,665 | 25,053 |
Derivatives Designated As Hedging Instruments | Indian rupee | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 5,778 | 17,444 |
Derivatives Designated As Hedging Instruments | Singapore dollar | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 4,082 | 12,867 |
Derivatives Designated As Hedging Instruments | Japanese yen | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 3,784 | 16,172 |
Derivatives Designated As Hedging Instruments | Swiss franc | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 3,445 | 11,066 |
Derivatives Not Designated As Hedging Instruments | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 0 | 25,478 |
Derivatives Not Designated As Hedging Instruments | Euro | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 0 | 25,478 |
Derivatives Not Designated As Hedging Instruments | British pound | ' | ' |
Derivative | ' | ' |
Total gross notional amounts, presented by currency | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | Indian 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 | Japanese yen | ' | ' |
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 |
Stockholders_Equity_Schedule_o
Stockholders' Equity (Schedule of Dividends) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | 3-May-14 | Sep. 05, 2014 |
Common Stock | Common Stock | Common Stock | |||||
Dividend Declared | |||||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date Declared | ' | ' | ' | ' | 22-May-14 | ' | 21-Aug-14 |
Common Stock, Dividends, Per Share, Declared | $0.04 | $0 | $0.04 | $0 | $0.04 | $0 | $0.04 |
Dividends Payable, Date of Record | ' | ' | ' | ' | 10-Jun-14 | ' | 10-Sep-14 |
Payment of cash dividends to stockholders | ' | ' | $15,270 | $0 | $15,270 | ' | ' |
Dividends Payable, Date to be Paid | ' | ' | ' | ' | 2-Jul-14 | ' | 2-Oct-14 |
StockBased_Compensation_StockB
Stock-Based Compensation (Stock-Based Compensation Expense Included In Line Items Of Consolidated Statements Of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Total stock-based compensation | $21,574 | $18,769 | $61,214 | $57,091 |
Cost of revenues | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Total stock-based compensation | 4,121 | 3,858 | 10,738 | 11,345 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Total stock-based compensation | 4,350 | 4,020 | 13,107 | 13,205 |
Sales and marketing | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Total stock-based compensation | 7,592 | 7,164 | 22,819 | 23,321 |
General and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Total stock-based compensation | $5,511 | $3,727 | $14,550 | $9,220 |
StockBased_Compensation_StockB1
Stock-Based Compensation (Stock-Based Compensation Expense By Grant Type) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Total stock-based compensation | $21,574 | $18,769 | $61,214 | $57,091 |
Stock options, including variable options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Total stock-based compensation | 1,072 | 828 | 3,602 | 1,818 |
Restricted stock units, including stock units with market conditions (altogether “RSUsâ€) | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Total stock-based compensation | 13,970 | 11,202 | 45,957 | 38,351 |
Employee stock purchase plan (“ESPPâ€) | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Total stock-based compensation | $6,532 | $6,739 | $11,655 | $16,922 |
StockBased_Compensation_StockB2
Stock-Based Compensation (Stock-Based Compensation, Unrecognized Compensation Expense And Weighted-Average Period) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Aug. 02, 2014 |
Stock options | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Unrecognized Compensation Expense | $5,432 |
Weighted-Average Period (in years) | '1 year 5 months 26 days |
Restricted stock units, including stock units with market conditions (altogether “RSUsâ€) | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Unrecognized Compensation Expense | 124,306 |
Weighted-Average Period (in years) | '2 years 0 months 11 days |
Employee stock purchase plan (“ESPPâ€) | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Unrecognized Compensation Expense | $19,606 |
Weighted-Average Period (in years) | '1 year 2 months 1 day |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Share-based Compensation, Activity) (Details) (USD $) | 9 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
Stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Stock options, Granted | 1,770 | 2,875 |
Stock options, Weighted-Average Grant Date Fair Value (dollars per share) | $3.16 | $2.34 |
Stock options, Exercises in Period, Total Intrinsic Value | $22.30 | $19.50 |
Restricted stock units, including stock units with market conditions (altogether “RSUsâ€) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
RSUs, Granted | 10,419 | 11,519 |
RSUs, Weighted-Average Grant Date Fair Value (dollars per share) | $9.81 | $5.70 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Schedule of Comprehensive Income (Loss) Tax Effects) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | ||||
Unrealized gains (losses) on cash flow hedges, before tax | ' | ' | ' | ' | ||||
Change in unrealized gains and losses, foreign exchange contracts, before tax | ($203) | ($1,125) | $23 | ($3,100) | ||||
Net gains and losses reclassified into earnings, foreign exchange contracts, before tax | -246 | [1] | -11 | [1] | -240 | [1] | -242 | [1] |
Net unrealized losses on cash flow hedges, before tax | -449 | -1,136 | -217 | -3,342 | ||||
Foreign currency translation adjustments, before tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, before tax | -191 | -1,470 | 284 | -3,612 | ||||
Total other comprehensive loss, before tax | -640 | -2,606 | 67 | -6,954 | ||||
Unrealized gains (losses) on cash flow hedges, tax | ' | ' | ' | ' | ||||
Change in unrealized gains and losses, foreign exchange contracts, tax | 48 | 125 | -9 | 102 | ||||
Net gains and losses reclassified into earnings, foreign exchange contracts, tax | 28 | [1] | 1 | [1] | 23 | [1] | 28 | [1] |
Net unrealized losses on cash flow hedges, tax | 76 | 126 | 14 | 130 | ||||
Foreign currency translation adjustments, tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 | ||||
Total other comprehensive loss, tax | 76 | 126 | 14 | 130 | ||||
Unrealized gains (losses) on cash flow hedges, net of tax | ' | ' | ' | ' | ||||
Change in unrealized gains and losses, foreign exchange contracts, net of tax | -155 | -1,000 | 14 | -2,998 | ||||
Net gains and losses reclassified into earnings, foreign exchange contracts, net of tax | -218 | [1] | -10 | [1] | -217 | [1] | -214 | [1] |
Net unrealized losses on cash flow hedges, net of tax | -373 | -1,010 | -203 | -3,212 | ||||
Foreign currency translation adjustments, net of tax | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, net of tax | -191 | -1,470 | 284 | -3,612 | ||||
Total other comprehensive loss, net of tax | ($564) | ($2,480) | $81 | ($6,824) | ||||
[1] | For Condensed Consolidated Statements of Income classification of amounts reclassified from accumulated other comprehensive loss, see Note 10, “Derivative Instruments and Hedging Activities,†of the Notes to Condensed Consolidated Financial Statements. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | ||||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' | ||||
Change in unrealized gains and losses, foreign exchange contracts, before tax | ($203) | ($1,125) | $23 | ($3,100) | ||||
Change in unrealized gains and losses, foreign exchange contracts, tax | 48 | 125 | -9 | 102 | ||||
Change in unrealized gains and losses | -155 | -1,000 | 14 | -2,998 | ||||
Net gains and losses reclassified into earnings, foreign exchange contracts, before tax | -246 | [1] | -11 | [1] | -240 | [1] | -242 | [1] |
Net gains and losses reclassified into earnings, foreign exchange contracts, tax | 28 | [1] | 1 | [1] | 23 | [1] | 28 | [1] |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 218 | [1] | 10 | [1] | 217 | [1] | 214 | [1] |
Net unrealized losses on cash flow hedges, before tax | -449 | -1,136 | -217 | -3,342 | ||||
Net unrealized losses on cash flow hedges, tax | 76 | 126 | 14 | 130 | ||||
Net unrealized losses on cash flow hedges, net of tax | -373 | -1,010 | -203 | -3,212 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | -191 | -1,470 | 284 | -3,612 | ||||
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | ' | ' | -13,444 | -9,864 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | ' | ' | 298 | -6,610 | ||||
Net gains and losses reclassified into earnings | ' | ' | -217 | -214 | ||||
Net current-period other comprehensive income (loss) | ' | ' | 81 | -6,824 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | -13,363 | -16,688 | -13,363 | -16,688 | ||||
Foreign currency translation adjustments | -191 | -1,470 | 284 | -3,612 | ||||
Total other comprehensive loss, before tax | -640 | -2,606 | 67 | -6,954 | ||||
Total other comprehensive loss, tax | 76 | 126 | 14 | 130 | ||||
Total other comprehensive loss, net of tax | -564 | -2,480 | 81 | -6,824 | ||||
Gains (Losses) on Cash Flow Hedges | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | ' | ' | 267 | 2,390 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | ' | ' | 14 | -2,998 | ||||
Net gains and losses reclassified into earnings | ' | ' | -217 | -214 | ||||
Net current-period other comprehensive income (loss) | ' | ' | -203 | -3,212 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | 64 | -822 | 64 | -822 | ||||
Foreign Currency Translation Adjustments | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | ' | ' | -13,711 | -12,254 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | ' | ' | 284 | -3,612 | ||||
Net gains and losses reclassified into earnings | ' | ' | 0 | 0 | ||||
Net current-period other comprehensive income (loss) | ' | ' | 284 | -3,612 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | ($13,427) | ($15,866) | ($13,427) | ($15,866) | ||||
[1] | For Condensed Consolidated Statements of Income classification of amounts reclassified from accumulated other comprehensive loss, see Note 10, “Derivative Instruments and Hedging Activities,†of the Notes to Condensed Consolidated Financial Statements. |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | |||||
Current Income Tax Expense (Benefit), Continuing Operations | ' | ' | ' | ' | ||||
U.S. federal statutory tax rate | ' | ' | 35.00% | 35.00% | ||||
Goodwill impairment charge | $0 | [1] | $0 | [1] | $83,382,000 | [1],[2] | $0 | [1] |
Change in California deferred tax asset valuation allowance as a result of the passage of Proposition 39 | ' | ' | ' | 78,200,000 | ||||
Income Tax Contingency | ' | ' | ' | ' | ||||
Amount of unrecognized tax benefits that could affect the effect tax rate | 81,000,000 | ' | 81,000,000 | ' | ||||
Upper range of estimated potential decreases in underlying uncertain tax positions | 5,000,000 | ' | 5,000,000 | ' | ||||
Lower range of estimated potential decreases in underlying uncertain tax positions | $0 | ' | $0 | ' | ||||
[1] | For additional discussion on goodwill impairment, see Note 4, “Goodwill and Intangible Assets,†of the Notes to Condensed Consolidated Financial Statements. | |||||||
[2] | In the second quarter of fiscal year 2014, the Company made a strategic shift in the allocation of its engineering resources and has reduced its investment in the hardware-based Brocade ADX® products and increased investment in the software-based Brocade ADX products for Layer 4-7 applications. As a result of this change in strategy, the Company expects hardware-based Brocade ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge during the second fiscal quarter of 2014 because the book value of its Application Delivery Products (“ADPâ€) reporting unit net assets, which includes the Brocade ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted. |
Segment_Information_Schedule_O
Segment Information (Schedule Of Financial Information By Reportable Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Segment Reporting Information | ' | ' | ' | ' |
Net revenues | $545,464 | $536,551 | $1,646,909 | $1,664,064 |
Cost of revenues | 183,751 | 198,349 | 558,234 | 617,825 |
Gross margin | 361,713 | 338,202 | 1,088,675 | 1,046,239 |
SAN Products | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenues | 325,238 | 314,087 | 1,001,858 | 994,909 |
Cost of revenues | 83,938 | 85,611 | 261,393 | 270,461 |
Gross margin | 241,300 | 228,476 | 740,465 | 724,448 |
IP Networking Products | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenues | 132,559 | 133,906 | 373,424 | 407,077 |
Cost of revenues | 61,580 | 74,830 | 180,023 | 228,954 |
Gross margin | 70,979 | 59,076 | 193,401 | 178,123 |
Global Services | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenues | 87,667 | 88,558 | 271,627 | 262,078 |
Cost of revenues | 38,233 | 37,908 | 116,818 | 118,410 |
Gross margin | $49,434 | $50,650 | $154,809 | $143,668 |
Segment_Information_Narrative_
Segment Information Narrative (Details) | 3 Months Ended | |
3-May-14 | Jan. 25, 2014 | |
segments | segments | |
Segment Reporting [Abstract] | ' | ' |
Number of operating segments | 3 | 4 |
Number of reportable operating segments | ' | 3 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | ||||
Earnings Per Share, Basic | ' | ' | ' | ' | ||||
Net income | $87,352 | $118,696 | $154,552 | $144,390 | ||||
Weighted-average shares used in computing basic net income per share | 432,448 | 449,446 | 436,396 | 452,474 | ||||
Net income per share—basic | $0.20 | $0.26 | $0.35 | $0.32 | ||||
Earnings Per Share, Diluted | ' | ' | ' | ' | ||||
Net income | $87,352 | $118,696 | $154,552 | $144,390 | ||||
Weighted-average shares used in computing diluted net income per share | 441,789 | 461,344 | 448,596 | 464,861 | ||||
Net income per share—diluted | $0.20 | $0.26 | $0.34 | $0.31 | ||||
Weighted Average Number of Shares Outstanding Reconciliation | ' | ' | ' | ' | ||||
Weighted-average shares used in computing basic net income per share | 432,448 | 449,446 | 436,396 | 452,474 | ||||
Dilutive potential common shares in the form of stock options | 1,616 | 2,842 | 2,162 | 3,686 | ||||
Dilutive potential common shares in the form of other share-based awards | 7,725 | 9,056 | 10,038 | 8,701 | ||||
Weighted-average shares used in computing diluted net income per share | 441,789 | 461,344 | 448,596 | 464,861 | ||||
Stock options | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ||||
Antidilutive potential common shares | 1,651 | [1] | 13,146 | [1] | 2,050 | [1] | 14,637 | [1] |
Other share-based awards | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ||||
Antidilutive potential common shares | 1,331 | [1] | 12 | [1] | 1,119 | [1] | 171 | [1] |
[1] | 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 $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | 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 or any 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 Consolidated Balance Sheet) (Details) (USD $) | Aug. 02, 2014 | Oct. 26, 2013 | Jul. 27, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | $1,149,387 | $986,997 | $790,093 | $713,226 |
Accounts receivable, net | 191,816 | 249,598 | ' | ' |
Inventories | 40,586 | 45,344 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other current assets | 160,371 | 140,864 | ' | ' |
Total current assets | 1,542,160 | 1,422,803 | ' | ' |
Property and equipment, net | 448,195 | 472,940 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other non-current assets | 1,611,535 | 1,725,648 | ' | ' |
Total assets | 3,601,890 | 3,621,391 | ' | ' |
Accounts payable | 84,242 | 88,218 | ' | ' |
Current portion of long-term debt | 1,817 | 2,996 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Other current liabilities | 418,375 | 469,449 | ' | ' |
Total current liabilities | 504,434 | 560,663 | ' | ' |
Long-term debt, net of current portion | 595,420 | 596,208 | ' | ' |
Other non-current liabilities | 165,435 | 117,707 | ' | ' |
Total liabilities | 1,265,289 | 1,274,578 | ' | ' |
Total stockholders’ equity | 2,336,601 | 2,346,813 | ' | ' |
Total liabilities and stockholders’ equity | 3,601,890 | 3,621,391 | ' | ' |
Brocade Communications Systems, Inc. | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 373,413 | 396,710 | 270,192 | 284,466 |
Accounts receivable, net | 115,564 | 159,436 | ' | ' |
Inventories | 38,290 | 40,072 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other current assets | 149,247 | 127,709 | ' | ' |
Total current assets | 676,514 | 723,927 | ' | ' |
Property and equipment, net | 431,159 | 457,054 | ' | ' |
Investment in subsidiaries | 1,156,473 | 1,026,247 | ' | ' |
Other non-current assets | 1,526,781 | 1,626,031 | ' | ' |
Total assets | 3,790,927 | 3,833,259 | ' | ' |
Accounts payable | 58,285 | 68,190 | ' | ' |
Current portion of long-term debt | 1,817 | 2,996 | ' | ' |
Intercompany payables | 381,223 | 409,590 | ' | ' |
Other current liabilities | 299,555 | 335,261 | ' | ' |
Total current liabilities | 740,880 | 816,037 | ' | ' |
Long-term debt, net of current portion | 595,420 | 596,208 | ' | ' |
Other non-current liabilities | 118,026 | 74,201 | ' | ' |
Total liabilities | 1,454,326 | 1,486,446 | ' | ' |
Total stockholders’ equity | 2,336,601 | 2,346,813 | ' | ' |
Total liabilities and stockholders’ equity | 3,790,927 | 3,833,259 | ' | ' |
Subsidiary Guarantors | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 8,284 | 9,301 | 3,643 | 680 |
Accounts receivable, net | 12 | 328 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Intercompany receivables | 486,581 | 464,443 | ' | ' |
Other current assets | 61 | 7 | ' | ' |
Total current assets | 494,938 | 474,079 | ' | ' |
Property and equipment, net | 233 | 567 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other non-current assets | 81,338 | 95,624 | ' | ' |
Total assets | 576,509 | 570,270 | ' | ' |
Accounts payable | 0 | 28 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Other current liabilities | 3,990 | 7,075 | ' | ' |
Total current liabilities | 3,990 | 7,103 | ' | ' |
Long-term debt, net of current portion | 0 | 0 | ' | ' |
Other non-current liabilities | 0 | 0 | ' | ' |
Total liabilities | 3,990 | 7,103 | ' | ' |
Total stockholders’ equity | 572,519 | 563,167 | ' | ' |
Total liabilities and stockholders’ equity | 576,509 | 570,270 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 767,690 | 580,986 | 516,258 | 428,080 |
Accounts receivable, net | 76,240 | 89,834 | ' | ' |
Inventories | 2,296 | 5,272 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other current assets | 10,408 | 11,395 | ' | ' |
Total current assets | 856,634 | 687,487 | ' | ' |
Property and equipment, net | 16,803 | 15,319 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other non-current assets | 3,416 | 3,993 | ' | ' |
Total assets | 876,853 | 706,799 | ' | ' |
Accounts payable | 25,957 | 20,000 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Intercompany payables | 105,358 | 54,853 | ' | ' |
Other current liabilities | 114,175 | 125,360 | ' | ' |
Total current liabilities | 245,490 | 200,213 | ' | ' |
Long-term debt, net of current portion | 0 | 0 | ' | ' |
Other non-current liabilities | 47,409 | 43,506 | ' | ' |
Total liabilities | 292,899 | 243,719 | ' | ' |
Total stockholders’ equity | 583,954 | 463,080 | ' | ' |
Total liabilities and stockholders’ equity | 876,853 | 706,799 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Intercompany receivables | -486,581 | -464,443 | ' | ' |
Other current assets | 655 | 1,753 | ' | ' |
Total current assets | -485,926 | -462,690 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Investment in subsidiaries | -1,156,473 | -1,026,247 | ' | ' |
Other non-current assets | 0 | 0 | ' | ' |
Total assets | -1,642,399 | -1,488,937 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Intercompany payables | -486,581 | -464,443 | ' | ' |
Other current liabilities | 655 | 1,753 | ' | ' |
Total current liabilities | -485,926 | -462,690 | ' | ' |
Long-term debt, net of current portion | 0 | 0 | ' | ' |
Other non-current liabilities | 0 | 0 | ' | ' |
Total liabilities | -485,926 | -462,690 | ' | ' |
Total stockholders’ equity | -1,156,473 | -1,026,247 | ' | ' |
Total liabilities and stockholders’ equity | ($1,642,399) | ($1,488,937) | ' | ' |
Guarantor_And_NonGuarantor_Sub4
Guarantor And Non-Guarantor Subsidiaries (Schedule Of Consolidated Statement Of Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Revenues | $545,464 | $536,551 | $1,646,909 | $1,664,064 |
Intercompany revenues | 0 | 0 | 0 | 0 |
Total net revenues | 545,464 | 536,551 | 1,646,909 | 1,664,064 |
Cost of revenues | 183,751 | 198,349 | 558,234 | 617,825 |
Intercompany (income) cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 183,751 | 198,349 | 558,234 | 617,825 |
Gross margin | 361,713 | 338,202 | 1,088,675 | 1,046,239 |
Operating expenses | 243,816 | 263,839 | 829,093 | 821,406 |
Intercompany operating expenses (income) | 0 | 0 | 0 | 0 |
Total operating expenses | 243,816 | 263,839 | 829,093 | 821,406 |
Income from operations | 117,897 | 74,363 | 259,582 | 224,833 |
Other income (expense) | -3,877 | 67,437 | -23,663 | 30,734 |
Income before income tax | 114,020 | 141,800 | 235,919 | 255,567 |
Income tax expense | 26,668 | 23,104 | 81,367 | 111,177 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 87,352 | 118,696 | 154,552 | 144,390 |
Brocade Communications Systems, Inc. | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Revenues | 303,946 | 327,422 | 940,696 | 1,004,002 |
Intercompany revenues | 6,127 | 5,647 | 19,942 | 21,881 |
Total net revenues | 310,073 | 333,069 | 960,638 | 1,025,883 |
Cost of revenues | 118,972 | 137,260 | 361,085 | 405,005 |
Intercompany (income) cost of revenues | -15,723 | -14,489 | -45,882 | -41,711 |
Total cost of revenues | 103,249 | 122,771 | 315,203 | 363,294 |
Gross margin | 206,824 | 210,298 | 645,435 | 662,589 |
Operating expenses | 185,967 | 198,119 | 665,764 | 608,523 |
Intercompany operating expenses (income) | -55,043 | -14,763 | -144,783 | -89,648 |
Total operating expenses | 130,924 | 183,356 | 520,981 | 518,875 |
Income from operations | 75,900 | 26,942 | 124,454 | 143,714 |
Other income (expense) | -3,658 | 67,657 | -23,495 | 34,305 |
Income before income tax | 72,242 | 94,599 | 100,959 | 178,019 |
Income tax expense | 25,325 | 26,079 | 76,609 | 109,114 |
Equity in net earnings (losses) of subsidiaries | 40,435 | 50,176 | 130,202 | 75,875 |
Net income | 87,352 | 118,696 | 154,552 | 144,780 |
Subsidiary Guarantors | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Revenues | 366 | 1,053 | 1,747 | 3,176 |
Intercompany revenues | 0 | 0 | 0 | 0 |
Total net revenues | 366 | 1,053 | 1,747 | 3,176 |
Cost of revenues | 170 | 6,891 | 8,992 | 29,104 |
Intercompany (income) cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 170 | 6,891 | 8,992 | 29,104 |
Gross margin | 196 | -5,838 | -7,245 | -25,928 |
Operating expenses | 223 | 9,888 | 7,142 | 30,941 |
Intercompany operating expenses (income) | -9,481 | -11 | -23,929 | -14,288 |
Total operating expenses | -9,258 | 9,877 | -16,787 | 16,653 |
Income from operations | 9,454 | -15,715 | 9,542 | -42,581 |
Other income (expense) | -58 | 350 | -192 | 306 |
Income before income tax | 9,396 | -15,365 | 9,350 | -42,275 |
Income tax expense | 0 | 0 | 0 | 866 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 9,396 | -15,365 | 9,350 | -43,141 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Revenues | 241,152 | 208,076 | 704,466 | 656,886 |
Intercompany revenues | 3,807 | 7,855 | 10,484 | 17,680 |
Total net revenues | 244,959 | 215,931 | 714,950 | 674,566 |
Cost of revenues | 63,192 | 52,453 | 183,715 | 177,744 |
Intercompany (income) cost of revenues | 25,657 | 27,991 | 76,308 | 81,272 |
Total cost of revenues | 88,849 | 80,444 | 260,023 | 259,016 |
Gross margin | 156,110 | 135,487 | 454,927 | 415,550 |
Operating expenses | 59,043 | 57,577 | 160,629 | 187,914 |
Intercompany operating expenses (income) | 64,524 | 14,774 | 168,712 | 103,936 |
Total operating expenses | 123,567 | 72,351 | 329,341 | 291,850 |
Income from operations | 32,543 | 63,136 | 125,586 | 123,700 |
Other income (expense) | -161 | -570 | 24 | -3,486 |
Income before income tax | 32,382 | 62,566 | 125,610 | 120,214 |
Income tax expense | 1,343 | -2,975 | 4,758 | 1,197 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 31,039 | 65,541 | 120,852 | 119,017 |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Financial Statements, Captions | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Intercompany revenues | -9,934 | -13,502 | -30,426 | -39,561 |
Total net revenues | -9,934 | -13,502 | -30,426 | -39,561 |
Cost of revenues | 1,417 | 1,745 | 4,442 | 5,972 |
Intercompany (income) cost of revenues | -9,934 | -13,502 | -30,426 | -39,561 |
Total cost of revenues | -8,517 | -11,757 | -25,984 | -33,589 |
Gross margin | -1,417 | -1,745 | -4,442 | -5,972 |
Operating expenses | -1,417 | -1,745 | -4,442 | -5,972 |
Intercompany operating expenses (income) | 0 | 0 | 0 | 0 |
Total operating expenses | -1,417 | -1,745 | -4,442 | -5,972 |
Income from operations | 0 | 0 | 0 | 0 |
Other income (expense) | 0 | 0 | 0 | -391 |
Income before income tax | 0 | 0 | 0 | -391 |
Income tax expense | 0 | 0 | 0 | 0 |
Equity in net earnings (losses) of subsidiaries | -40,435 | -50,176 | -130,202 | -75,875 |
Net income | ($40,435) | ($50,176) | ($130,202) | ($76,266) |
Guarantor_And_NonGuarantor_Sub5
Guarantor And Non-Guarantor Subsidiaries (Schedule Of Consolidated Statement Of Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 | Aug. 02, 2014 | Jul. 27, 2013 | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Net income (loss) | $87,352 | $118,696 | $154,552 | $144,390 | ||||
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | -155 | -1,000 | 14 | -2,998 | ||||
Net gains and losses reclassified into earnings | -218 | [1] | -10 | [1] | -217 | [1] | -214 | [1] |
Net unrealized losses on cash flow hedges | -373 | -1,010 | -203 | -3,212 | ||||
Foreign currency translation adjustments | -191 | -1,470 | 284 | -3,612 | ||||
Total other comprehensive income (loss) | -564 | -2,480 | 81 | -6,824 | ||||
Total comprehensive income | 86,788 | 116,216 | 154,633 | 137,566 | ||||
Brocade Communications Systems, Inc. | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Net income (loss) | 87,352 | 118,696 | 154,552 | 144,780 | ||||
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | 0 | 0 | 0 | 0 | ||||
Net gains and losses reclassified into earnings | 0 | 0 | 0 | 0 | ||||
Net unrealized losses on cash flow hedges | 0 | 0 | 0 | 0 | ||||
Foreign currency translation adjustments | 18 | 23 | -113 | 1,149 | ||||
Total other comprehensive income (loss) | 18 | 23 | -113 | 1,149 | ||||
Total comprehensive income | 87,370 | 118,719 | 154,439 | 145,929 | ||||
Subsidiary Guarantors | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Net income (loss) | 9,396 | -15,365 | 9,350 | -43,141 | ||||
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | 0 | 0 | 0 | 0 | ||||
Net gains and losses reclassified into earnings | 0 | 0 | 0 | 0 | ||||
Net unrealized losses on cash flow hedges | 0 | 0 | 0 | 0 | ||||
Foreign currency translation adjustments | 0 | 0 | 171 | -628 | ||||
Total other comprehensive income (loss) | 0 | 0 | 171 | -628 | ||||
Total comprehensive income | 9,396 | -15,365 | 9,521 | -43,769 | ||||
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Net income (loss) | 31,039 | 65,541 | 120,852 | 119,017 | ||||
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | -155 | -1,000 | 14 | -2,998 | ||||
Net gains and losses reclassified into earnings | -218 | -10 | -217 | -214 | ||||
Net unrealized losses on cash flow hedges | -373 | -1,010 | -203 | -3,212 | ||||
Foreign currency translation adjustments | -209 | -1,493 | 226 | -4,133 | ||||
Total other comprehensive income (loss) | -582 | -2,503 | 23 | -7,345 | ||||
Total comprehensive income | 30,457 | 63,038 | 120,875 | 111,672 | ||||
Consolidating Adjustments | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Net income (loss) | -40,435 | -50,176 | -130,202 | -76,266 | ||||
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' | ||||
Change in unrealized gains and losses | 0 | 0 | 0 | 0 | ||||
Net gains and losses reclassified into earnings | 0 | 0 | 0 | 0 | ||||
Net unrealized losses on cash flow hedges | 0 | 0 | 0 | 0 | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | ||||
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||
Total comprehensive income | ($40,435) | ($50,176) | ($130,202) | ($76,266) | ||||
[1] | For Condensed Consolidated Statements of Income classification of amounts reclassified from accumulated other comprehensive loss, see Note 10, “Derivative Instruments and Hedging Activities,†of the Notes to Condensed Consolidated Financial Statements. |
Guarantor_And_NonGuarantor_Sub6
Guarantor And Non-Guarantor Subsidiaries (Schedule Of Consolidated Statement Of Cash Flows) (Details) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
Condensed Financial Statements, Captions | ' | ' |
Net cash provided by operating activities | $383,744 | $281,260 |
Purchases of property and equipment | -41,175 | -41,949 |
Purchases of non-marketable equity investments | -223 | 0 |
Proceeds from sale of non-marketable equity investment | 10,748 | 0 |
Proceeds from sale of network adapter business | 9,995 | 0 |
Proceeds from collection of note receivable | 250 | 0 |
Net cash paid in connection with acquisition | 0 | -44,629 |
Net cash used in investing activities | -20,405 | -86,578 |
Payment of principal related to capital leases | -2,382 | -1,536 |
Common stock repurchases | -302,560 | -187,360 |
Proceeds from issuance of common stock | 81,293 | 71,858 |
Payment of cash dividends to stockholders | -15,270 | 0 |
Excess tax benefits from stock-based compensation | 37,698 | 6,909 |
Proceeds from senior unsecured notes | 0 | 296,250 |
Payment of debt issuance costs related to senior unsecured notes | 0 | -992 |
Payment of principal related to senior secured notes | 0 | -300,000 |
Net cash used in financing activities | -201,221 | -114,871 |
Effect of exchange rate fluctuations on cash and cash equivalents | 272 | -2,944 |
Net increase in cash and cash equivalents | 162,390 | 76,867 |
Cash and cash equivalents, beginning of period | 986,997 | 713,226 |
Cash and cash equivalents, end of period | 1,149,387 | 790,093 |
Cash dividends declared per share | $0.04 | $0 |
Brocade Communications Systems, Inc. | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash provided by operating activities | 196,642 | 181,335 |
Purchases of property and equipment | -32,574 | -35,969 |
Purchases of non-marketable equity investments | -223 | ' |
Proceeds from sale of non-marketable equity investment | 10,748 | ' |
Proceeds from sale of network adapter business | 3,081 | ' |
Proceeds from collection of note receivable | 250 | ' |
Net cash paid in connection with acquisition | ' | -44,769 |
Net cash used in investing activities | -18,718 | -80,738 |
Payment of principal related to capital leases | -2,382 | -1,536 |
Common stock repurchases | -302,560 | -187,360 |
Proceeds from issuance of common stock | 81,293 | 71,858 |
Payment of cash dividends to stockholders | -15,270 | ' |
Excess tax benefits from stock-based compensation | 37,698 | 6,909 |
Proceeds from senior unsecured notes | ' | 296,250 |
Payment of debt issuance costs related to senior unsecured notes | ' | -992 |
Payment of principal related to senior secured notes | ' | -300,000 |
Net cash used in financing activities | -201,221 | -114,871 |
Effect of exchange rate fluctuations on cash and cash equivalents | 0 | 0 |
Net increase in cash and cash equivalents | -23,297 | -14,274 |
Cash and cash equivalents, beginning of period | 396,710 | 284,466 |
Cash and cash equivalents, end of period | 373,413 | 270,192 |
Subsidiary Guarantors | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash provided by operating activities | -1,017 | 2,846 |
Purchases of property and equipment | 0 | -23 |
Purchases of non-marketable equity investments | 0 | ' |
Proceeds from sale of non-marketable equity investment | 0 | ' |
Proceeds from sale of network adapter business | 0 | ' |
Proceeds from collection of note receivable | 0 | ' |
Net cash paid in connection with acquisition | ' | 140 |
Net cash used in investing activities | 0 | 117 |
Payment of principal related to capital leases | 0 | 0 |
Common stock repurchases | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Payment of cash dividends to stockholders | 0 | ' |
Excess tax benefits from stock-based compensation | 0 | 0 |
Proceeds from senior unsecured notes | ' | 0 |
Payment of debt issuance costs related to senior unsecured notes | ' | 0 |
Payment of principal related to senior secured notes | ' | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate fluctuations on cash and cash equivalents | 0 | 0 |
Net increase in cash and cash equivalents | -1,017 | 2,963 |
Cash and cash equivalents, beginning of period | 9,301 | 680 |
Cash and cash equivalents, end of period | 8,284 | 3,643 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash provided by operating activities | 188,119 | 97,079 |
Purchases of property and equipment | -8,601 | -5,957 |
Purchases of non-marketable equity investments | 0 | ' |
Proceeds from sale of non-marketable equity investment | 0 | ' |
Proceeds from sale of network adapter business | 6,914 | ' |
Proceeds from collection of note receivable | 0 | ' |
Net cash paid in connection with acquisition | ' | 0 |
Net cash used in investing activities | -1,687 | -5,957 |
Payment of principal related to capital leases | 0 | 0 |
Common stock repurchases | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Payment of cash dividends to stockholders | 0 | ' |
Excess tax benefits from stock-based compensation | 0 | 0 |
Proceeds from senior unsecured notes | ' | 0 |
Payment of debt issuance costs related to senior unsecured notes | ' | 0 |
Payment of principal related to senior secured notes | ' | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate fluctuations on cash and cash equivalents | 272 | -2,944 |
Net increase in cash and cash equivalents | 186,704 | 88,178 |
Cash and cash equivalents, beginning of period | 580,986 | 428,080 |
Cash and cash equivalents, end of period | 767,690 | 516,258 |
Consolidating Adjustments | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash provided by operating activities | 0 | 0 |
Purchases of property and equipment | 0 | 0 |
Purchases of non-marketable equity investments | 0 | ' |
Proceeds from sale of non-marketable equity investment | 0 | ' |
Proceeds from sale of network adapter business | 0 | ' |
Proceeds from collection of note receivable | 0 | ' |
Net cash paid in connection with acquisition | ' | 0 |
Net cash used in investing activities | 0 | 0 |
Payment of principal related to capital leases | 0 | 0 |
Common stock repurchases | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Payment of cash dividends to stockholders | 0 | ' |
Excess tax benefits from stock-based compensation | 0 | 0 |
Proceeds from senior unsecured notes | ' | 0 |
Payment of debt issuance costs related to senior unsecured notes | ' | 0 |
Payment of principal related to senior secured notes | ' | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate fluctuations on cash and cash equivalents | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |