Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Apr. 30, 2016 | May. 26, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | BROCADE COMMUNICATIONS SYSTEMS INC | |
Entity Central Index Key | 1,009,626 | |
Current Fiscal Year End Date | --10-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 399,442,030 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Net revenues: | ||||
Product | $ 428,193 | $ 458,243 | $ 909,360 | $ 944,481 |
Service | 95,113 | 88,332 | 188,230 | 178,333 |
Total net revenues | 523,306 | 546,575 | 1,097,590 | 1,122,814 |
Cost of revenues: | ||||
Product | 132,208 | 137,612 | 276,305 | 287,538 |
Service | 40,787 | 36,754 | 82,159 | 73,384 |
Total cost of revenues | 172,995 | 174,366 | 358,464 | 360,922 |
Gross margin | 350,311 | 372,209 | 739,126 | 761,892 |
Operating expenses: | ||||
Research and development | 89,263 | 91,870 | 182,520 | 177,101 |
Sales and marketing | 148,933 | 143,078 | 300,760 | 283,316 |
General and administrative | 22,791 | 20,722 | 45,220 | 45,393 |
Amortization of intangible assets | 902 | 627 | 1,804 | 765 |
Acquisition and integration costs | 5,757 | 2,344 | 5,757 | 2,344 |
Restructuring and other related benefits | 0 | (637) | (566) | (637) |
Total operating expenses | 267,646 | 258,004 | 535,495 | 508,282 |
Income from operations | 82,665 | 114,205 | 203,631 | 253,610 |
Interest expense | (9,955) | (10,552) | (19,820) | (35,976) |
Interest and other income (loss), net | 1,091 | 466 | 1,760 | (93) |
Income before income tax | 73,801 | 104,119 | 185,571 | 217,541 |
Income tax expense | 30,716 | 27,079 | 48,840 | 53,234 |
Net income | $ 43,085 | $ 77,040 | $ 136,731 | $ 164,307 |
Net income per share—basic | $ 0.11 | $ 0.18 | $ 0.34 | $ 0.39 |
Net income per share—diluted | $ 0.11 | $ 0.18 | $ 0.33 | $ 0.38 |
Shares used in per share calculation—basic | 400,554 | 420,718 | 404,228 | 424,627 |
Shares used in per share calculation—diluted | 408,748 | 433,234 | 411,917 | 436,195 |
Cash dividends declared per share | $ 0.045 | $ 0.035 | $ 0.090 | $ 0.070 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 43,085 | $ 77,040 | $ 136,731 | $ 164,307 | |
Unrealized gains (losses) on cash flow hedges: | |||||
Change in unrealized gains and losses | 1,964 | (143) | (336) | (1,918) | |
Net gains and losses reclassified into earnings | [1] | 724 | 1,109 | 1,350 | 1,713 |
Net unrealized gains (losses) on cash flow hedges | 2,688 | 966 | 1,014 | (205) | |
Foreign currency translation adjustments | 2,070 | (1,068) | (133) | (5,289) | |
Total other comprehensive income (loss) | 4,758 | (102) | 881 | (5,494) | |
Total comprehensive income | $ 47,843 | $ 76,938 | $ 137,612 | $ 158,813 | |
[1] | For classification of amounts reclassified from accumulated other comprehensive loss into earnings as reported on the Company’s Condensed Consolidated Statements of Income, see Note 10, “Derivative Instruments and Hedging Activities,” of the Notes to Condensed Consolidated Financial Statements. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,427,643 | $ 1,440,882 |
Accounts receivable, net of allowances for doubtful accounts of $1,739 and $1,838 as of April 30, 2016, and October 31, 2015, respectively | 204,915 | 235,883 |
Inventories | 39,521 | 40,524 |
Deferred tax assets | 0 | 78,675 |
Prepaid expenses and other current assets | 67,598 | 56,235 |
Total current assets | 1,739,677 | 1,852,199 |
Property and equipment, net | 441,717 | 439,224 |
Goodwill | 1,621,691 | 1,617,161 |
Intangible assets, net | 69,611 | 75,623 |
Non-current deferred tax assets | 69,309 | 813 |
Other assets | 50,968 | 51,133 |
Total assets | 3,992,973 | 4,036,153 |
Current liabilities: | ||
Accounts payable | 97,498 | 98,143 |
Accrued employee compensation | 133,511 | 142,075 |
Deferred revenue | 230,540 | 244,622 |
Other accrued liabilities | 68,757 | 77,524 |
Total current liabilities | 530,306 | 562,364 |
Long-term debt, net of current portion | 802,482 | 793,779 |
Non-current deferred revenue | 74,434 | 72,065 |
Non-current income tax liability | 62,110 | 47,010 |
Non-current deferred tax liabilities | 0 | 24,024 |
Other non-current liabilities | 2,499 | 3,376 |
Total liabilities | $ 1,471,831 | $ 1,502,618 |
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: 399,383 and 413,923 shares as of April 30, 2016, and October 31, 2015, respectively | 399 | 414 |
Additional paid-in capital | 1,519,439 | 1,632,984 |
Accumulated other comprehensive loss | (24,121) | (25,002) |
Retained earnings | 1,025,425 | 925,139 |
Total stockholders’ equity | 2,521,142 | 2,533,535 |
Total liabilities and stockholders’ equity | $ 3,992,973 | $ 4,036,153 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 1,739 | $ 1,838 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 800,000 | 800,000 |
Common stock, shares issued | 399,383 | 413,923 |
Common stock, shares outstanding | 399,383 | 413,923 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 136,731 | $ 164,307 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Excess tax benefits from stock-based compensation | (10,987) | (29,570) |
Depreciation and amortization | 45,839 | 40,247 |
Loss on disposal of property and equipment | 437 | 1,241 |
Amortization of debt issuance costs and debt discount | 8,704 | 5,224 |
Write-off of debt discount and debt issuance costs related to lenders that did not participate in refinancing | 0 | 4,808 |
Provision (recovery) for doubtful accounts receivable and sales allowances | (1,083) | 4,694 |
Non-cash stock-based compensation expense | 48,833 | 40,157 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 32,051 | 35,237 |
Inventories | (424) | 3,008 |
Prepaid expenses and other assets | (1,882) | (25,702) |
Deferred tax assets | (74) | 503 |
Accounts payable | (5,127) | (6,160) |
Accrued employee compensation | (21,136) | (39,997) |
Deferred revenue | (11,715) | (9,149) |
Other accrued liabilities | 5,500 | 25,285 |
Restructuring liabilities | (1,035) | (1,866) |
Net cash provided by operating activities | 224,632 | 212,267 |
Cash flows from investing activities: | ||
Purchases of non-marketable equity and debt investments | (2,000) | (150) |
Purchases of property and equipment | (42,425) | (34,091) |
Purchase of intangible assets | 0 | (7,750) |
Net cash paid in connection with acquisitions | (8,061) | (95,278) |
Proceeds from collection of note receivable | 250 | 250 |
Net cash used in investing activities | (52,236) | (137,019) |
Cash flows from financing activities: | ||
Payment of principal related to senior secured notes | 0 | 300,000 |
Payment of debt issuance costs | 0 | (1,661) |
Payment of principal related to capital leases | (197) | (1,267) |
Common stock repurchases | (180,848) | (208,244) |
Proceeds from issuance of common stock | 20,512 | 21,975 |
Payment of cash dividends to stockholders | (36,445) | (29,854) |
Proceeds from convertible notes | 0 | 565,656 |
Purchase of convertible note hedge | 0 | (86,135) |
Proceeds from issuance of warrants | 0 | 51,175 |
Excess tax benefits from stock-based compensation | 10,987 | 29,570 |
Net cash provided by (used in) financing activities | (185,991) | 41,215 |
Effect of exchange rate fluctuations on cash and cash equivalents | 356 | (4,668) |
Net increase (decrease) in cash and cash equivalents | (13,239) | 111,795 |
Cash and cash equivalents, beginning of period | 1,440,882 | 1,255,017 |
Cash and cash equivalents, end of period | 1,427,643 | 1,366,812 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 10,891 | 18,937 |
Cash paid for income taxes | 31,712 | 23,599 |
Settlement of debt investment in relation to acquisition | $ 0 | $ 150 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Apr. 30, 2016 | |
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 (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Company’s Condensed Consolidated Balance Sheet as of October 31, 2015 , 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 31, 2015 . 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. As is customary for companies that use the 52/53-week convention, every fifth year is a 53-week year. Fiscal year 2016 is a 52-week fiscal year and fiscal year 2015 was a 52-week fiscal year. The Company’s next 53-week fiscal year will be fiscal year 2019 and its next 14-week quarter will be the second quarter of fiscal year 2019. The Company’s 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 the Company’s 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 Company’s 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, acquisition purchase price allocations, warranty obligations, inventory valuation and purchase commitments, restructuring costs, incentive compensation, facilities lease losses, impairment of goodwill and other indefinite-lived intangible assets, litigation, income taxes, and investments. Actual results may differ materially from these estimates. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2016 | |
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 six months ended April 30, 2016 , as compared to those disclosed in Brocade’s Annual Report on Form 10-K for the fiscal year ended October 31, 2015 . New Accounting Pronouncements or Updates Recently Adopted In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update to Accounting Standards Codification (“ASC”) 205, Presentation of Financial Statements , and ASC 360, Property, Plant, and Equipment: 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, 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 should be applied prospectively. The Company adopted this update in the first quarter of fiscal year 2016. There was no material impact on the Company’s financial position, results of operations, or cash flows. In April 2015, the FASB issued an update to ASC 835, Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs . Under this update, debt issuance costs are required to be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. This update should be applied retrospectively to all prior periods presented in the financial statements. The Company adopted this update in the first quarter of fiscal year 2016. There was no material impact on the Company’s financial position, results of operations, or cash flows. In September 2015, the FASB issued an update to ASC 805, Business Combinations: Simplifying the Accounting Measurement-Period Adjustments . This update simplifies the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. Under this update, the adjustments are recognized in the reporting period in which the adjustment amounts are determined. This update should be applied prospectively. The Company adopted this update in the first quarter of fiscal year 2016. There was no material impact on the Company’s financial position, results of operations, or cash flows. In November 2015, the FASB issued an update to ASC 740, Income Taxes: Balance Sheet Classification of Deferred Taxes . This update simplifies the presentation of current and non-current deferred tax liabilities and assets. Under this update, the deferred tax liabilities and assets are classified as non-current on the balance sheet. The update does not impact the current requirement that deferred tax liabilities and assets be offset and presented as a single amount. This update may be applied either prospectively or retrospectively. The Company adopted this update in the first quarter of fiscal year 2016 and has elected to apply this update prospectively. There was no material impact on the Company’s financial position, results of operations, or cash flows. Recent Accounting Pronouncements or Updates That Are Not Yet Effective In May 2014, the FASB issued ASC 606, Revenue from Contracts with Customers , that will supersede virtually all existing revenue guidance. Under this new revenue guidance, 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 new revenue guidance 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 retained earnings. In August 2015, the FASB issued an update to defer the effective date of this new revenue guidance by one year. This new revenue guidance becomes effective and will be adopted by the Company in the first quarter of fiscal year 2019. Early adoption is not permitted for reporting periods before the first quarter of fiscal year 2018. The Company is currently evaluating the impact of this new revenue guidance on its consolidated financial statements. In March 2016, the FASB issued an update to ASC 606, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarifies the implementation guidance for principal versus agent considerations. In April 2016, the FASB issued an update to ASC 606, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing , which clarifies the guidance related to identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued an update to ASC 606, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , which clarifies the guidance related to collectibility and non-cash consideration, as well as provides practical expedients for the transition to ASC 606. The Company must adopt these updates with the adoption of ASC 606, Revenue from Contracts with Customers . The Company is currently evaluating the impact of these updates on its consolidated financial statements. In April 2015, the FASB issued an update to ASC 350, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in Cloud Computing Arrangement . This update provides guidance on the accounting for fees paid in a cloud computing arrangement if the arrangement was determined to include a software license. This update will not change U.S. GAAP for a customer’s accounting for service contracts. This update may be applied either prospectively or retrospectively and will be adopted by the Company in the first quarter of fiscal year 2017. Early adoption is permitted. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In July 2015, the FASB issued an update to ASC 330, Inventory: Simplifying the Measurement of Inventory . Under this update, measurement of inventory is based on the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and disposal. This update does not apply to inventory that is measured using last-in, first-out or the retail inventory method. This update should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2018. Early adoption is permitted. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In January 2016, the FASB issued an update to ASC 825, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This update consists of eight provisions that provide guidance on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and prospectively for equity investments without readily determinable fair values. This update becomes effective and will be adopted by the Company in the first quarter of fiscal year 2019. Early adoption is permitted for two of the eight provisions. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASC 842, Leases , that will supersede the existing lease guidance, including on-balance sheet recognition of operating leases for lessees. This new lease guidance should be applied using a modified retrospective approach and will be adopted by the Company in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is currently evaluating the impact of this new lease guidance on its consolidated financial statements. In March 2016, the FASB issued an update to ASC 718, Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting . This update simplifies certain aspects of the accounting for share-based payment transactions, including income taxes, forfeiture rates, classification of awards, and classification in the statement of cash flows. This update becomes effective in the first quarter of fiscal year 2018. Early adoption is permitted, and the Company plans to adopt this update before the effective date. 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. Cash and cash equivalents are primarily maintained at five 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 April 30, 2016 , two customers individually accounted for 20% and 16% of total accounts receivable, for a combined total of 36% of total accounts receivable. As of October 31, 2015 , one customer individually accounted for 17% of total accounts receivable and no other customers individually accounted for more than 10% 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 and sales allowances. For the three months ended April 30, 2016 , two customers individually accounted for 19% and 11% of the Company’s total net revenues for a combined total of 30% of total net revenues. For the three months ended May 2, 2015 , four customers individually accounted for 15% , 12% , 12% , and 11% of the Company’s total net revenues for a combined total of 49% 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 multiple contract manufacturers (“CMs”) for the production of its products, including Hon Hai Precision Industry Co., Ltd. and Accton Technology Corporation. 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 components used in the manufacture of products from single or limited-source suppliers. |
Acquisitions
Acquisitions | 6 Months Ended |
Apr. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Current Fiscal Year Acquisitions In May 2016, the Company completed its acquisition of Ruckus Wireless, Inc. (“Ruckus”), a public company incorporated in the state of Delaware, to strengthen its Internet Protocol (“IP”) Networking product portfolio. For the three and six months ended April 30, 2016 , the Company recorded direct acquisition costs and integration costs of $5.0 million and $0.8 million , respectively. These costs were expensed as incurred and are presented in the Company’s Condensed Consolidated Statements of Income for the three and six months ended April 30, 2016 , as “Acquisition and integration costs.” For additional discussion, see Note 16 , “ Subsequent Events ,” of the Notes to Condensed Consolidated Financial Statements. In March 2016, the Company completed its acquisition of a privately held developer of software for data center automation to strengthen its IP Networking product portfolio. The Company does not consider this acquisition to be material to its results of operations or financial position. Therefore, the Company is not presenting pro-forma financial information of combined operations. Prior Fiscal Year Acquisitions In March 2015, the Company completed its acquisition of two businesses to strengthen its software networking portfolio. The total aggregate purchase price of the acquisitions was $96.1 million . The total net aggregate purchase price of the acquisitions, net of $0.1 million of cash acquired as part of the acquisitions, was $95.5 million in cash consideration and $0.5 million in non-cash consideration. For the three and six months ended May 2, 2015 , the Company recorded direct acquisition costs and integration costs of $1.5 million and $0.8 million , respectively. These costs were expensed as incurred and are presented in the Company’s Condensed Consolidated Statements of Income for the three and six months ended May 2, 2015 , as “Acquisition and integration costs.” The results of operations for both acquisitions are included in the Company’s Condensed Consolidated Statements of Income from the respective dates of acquisition. The Company does not consider these acquisitions to be significant, individually or in the aggregate, to its results of operations or financial position. Therefore, the Company is not presenting pro-forma financial information of combined operations. In connection with these acquisitions, the Company allocated the total purchase consideration to the net assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition dates. The Company also granted restricted stock unit (“RSU”) awards and cash awards to transferring or continuing employees of the acquired businesses. These awards require the employees to continue providing services to the Company for the duration of the vesting or payout periods. The RSUs are accounted for as stock-based compensation expense and reported, as applicable, within “Cost of revenues,” “Research and development,” “Sales and marketing,” and “General and administrative” on the Company’s Condensed Consolidated Statements of Income . For the three and six months ended April 30, 2016 , the Company recognized $0.4 million and $1.0 million , respectively, of stock-based compensation expense related to these RSU awards. For the three and six months ended May 2, 2015 , the Company recognized $0.3 million of stock-based compensation expense related to these RSU awards. The cash awards are accounted for as employee compensation expense and reported within “Research and development” on the Company’s Condensed Consolidated Statements of Income . For the three and six months ended April 30, 2016 , the Company recognized $1.2 million and $2.5 million , respectively, of compensation expense related to these cash awards. For the three and six months ended May 2, 2015 , the Company recognized $0.4 million of compensation expense related to these cash awards. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 6 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets The following table summarizes goodwill activity by reportable segment during the six months ended April 30, 2016 (in thousands): Storage Area Networking (“SAN”) Products IP Networking Products Global Services Total Balance at October 31, 2015 Goodwill $ 176,325 $ 1,414,634 $ 155,416 $ 1,746,375 Accumulated impairment losses — (129,214 ) — (129,214 ) 176,325 1,285,420 155,416 1,617,161 Acquisitions (1) — 4,625 — 4,625 Tax adjustments (2) (5 ) — — (5 ) Translation adjustments — (90 ) — (90 ) Balance at April 30, 2016 Goodwill 176,320 1,419,169 155,416 1,750,905 Accumulated impairment losses — (129,214 ) — (129,214 ) $ 176,320 $ 1,289,955 $ 155,416 $ 1,621,691 (1) The goodwill acquired relates to the acquisition completed in March 2016. See Note 3 , “ Acquisitions ,” of the Notes to Condensed Consolidated Financial Statements. (2) The goodwill adjustments were primarily a result of tax benefits from the exercise of stock awards of acquired companies. The Company conducts its goodwill impairment test annually, as of the first day of the second fiscal quarter, and whenever events 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 by applying various observable market-based multiples to the reporting unit’s operating results and then applying an appropriate control premium. For the fiscal year 2016 annual goodwill impairment test, the Company used a combination of these approaches to estimate each reporting unit’s fair value. At the time that the fiscal year 2016 annual goodwill impairment test was performed, the Company believed that 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 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 are 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; • The Company’s forecasted 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 the Company’s regular long-range planning process. The control premium used in market or combined approaches was determined by considering control premiums offered as part of the acquisitions where acquired companies were comparable with the Company’s reporting units. Based on the results of the annual goodwill impairment analysis performed during the second fiscal quarter of 2016, the Company determined that no impairment needed to be recorded. 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 Company did not incur costs to renew or extend the term of any acquired finite-lived intangible assets during the six months ended April 30, 2016 . The following tables present details of the Company’s intangible assets, excluding goodwill (in thousands, except for weighted-average remaining useful life): April 30, 2016 Gross Accumulated Net Weighted- Finite-lived intangible assets: Trade names $ 1,090 $ 527 $ 563 4.13 Core/developed technology (1) (2) 57,290 14,912 42,378 4.00 Patent portfolio license (3) 7,750 1,399 6,351 17.49 Customer relationships 23,110 3,982 19,128 6.71 Non-compete agreements 1,050 824 226 0.69 Patents with broader applications 1,040 75 965 13.88 Total finite-lived intangible assets 91,330 21,719 69,611 6.10 Total intangible assets, excluding goodwill $ 91,330 $ 21,719 $ 69,611 October 31, 2015 Gross Accumulated Net Weighted- Finite-lived intangible assets: Trade names $ 1,090 $ 415 $ 675 4.36 Core/developed technology (2) 40,530 9,605 30,925 3.49 Patent portfolio license (3) 7,750 849 6,901 17.74 Customer relationships 23,110 2,484 20,626 7.18 Non-compete agreements 1,050 664 386 1.17 Patents with broader applications 1,040 40 1,000 14.38 Total finite-lived intangible assets 74,570 14,057 60,513 6.55 Indefinite-lived intangible assets, excluding goodwill: In-process research and development (“IPR&D”) (1) 15,110 — 15,110 Total indefinite-lived intangible assets, excluding goodwill 15,110 — 15,110 Total intangible assets, excluding goodwill $ 89,680 $ 14,057 $ 75,623 (1) Acquired IPR&D are intangible assets accounted for as indefinite-lived assets until the completion or abandonment of the associated research and development efforts. If the research and development efforts associated with the IPR&D are successfully completed, then the IPR&D intangible assets will be amortized over the estimated useful lives to be determined as of the date the efforts are completed. During the six months ended April 30, 2016 , research and development efforts were completed on $15.1 million of the IPR&D intangible assets, and the completed IPR&D intangible assets are being amortized as Core/developed technology over the respective estimated useful lives of five and six years. (2) During the six months ended April 30, 2016 , $1.0 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. (3) The patent portfolio license was assigned an estimated useful life that reflects the Company’s consumption of the expected defensive benefits related to this license to certain patents. The method of amortization for the patent portfolio license reflects the Company’s estimate of the pattern in which these expected defensive benefits will be used by the Company and is primarily based on the mix of expiration patterns of the individual patents included in the license. The Company conducts the IPR&D impairment test annually, as of the first day of the second fiscal quarter, or when events occur or facts and circumstances indicate that it is more likely than not that the IPR&D is impaired. For the annual IPR&D impairment test, the Company elects 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 the IPR&D assets is less than the carrying amount. If, after assessing the totality of events and circumstances, the Company determines that it is more likely than not that the fair value of the IPR&D assets is less than the carrying amount, then the Company conducts a quantitative analysis to determine the fair value of the IPR&D assets. If the carrying amount of the IPR&D assets exceeds the fair value, then the Company recognizes an impairment loss equal to the difference. As of April 30, 2016 , the Company had no remaining IPR&D intangible assets. The amortization of finite-lived intangible assets is included in the following line items of the Company’s Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Cost of revenues $ 3,193 $ 1,857 $ 6,348 $ 2,494 General and administrative (1) 274 291 550 291 Amortization of intangible assets 902 627 1,804 765 Total $ 4,369 $ 2,775 $ 8,702 $ 3,550 (1) The amortization is related to the $7.8 million of perpetual, non-exclusive license to certain patents purchased during the fiscal year ended October 31, 2015. The following table presents the estimated future amortization of finite-lived intangible assets as of April 30, 2016 (in thousands): Fiscal Year Estimated Future Amortization 2016 (remaining six months) $ 8,979 2017 17,531 2018 13,012 2019 9,483 2020 8,394 Thereafter 12,212 Total $ 69,611 |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Apr. 30, 2016 | |
Balance Sheet Details [Abstract] | |
Balance Sheet Details | Balance Sheet Details The following tables provide details of selected balance sheet items (in thousands): April 30, October 31, Inventories: Raw materials $ 17,357 $ 18,788 Finished goods 22,164 21,736 Inventories $ 39,521 $ 40,524 April 30, October 31, Property and equipment, net: Gross property and equipment Computer equipment $ 20,046 $ 14,820 Software 70,991 67,625 Engineering and other equipment (1) 424,059 407,342 Furniture and fixtures (1) 32,870 31,028 Leasehold improvements 37,016 33,986 Land and building 385,760 385,415 Total gross property and equipment 970,742 940,216 Accumulated depreciation and amortization (1), (2) (529,025 ) (500,992 ) Property and equipment, net $ 441,717 $ 439,224 (1) Engineering and other equipment, furniture and fixtures, and accumulated depreciation and amortization include the following amounts under capital leases as of April 30, 2016 , and October 31, 2015 (in thousands): April 30, October 31, Cost $ 1,312 $ 1,312 Accumulated depreciation (1,274 ) (857 ) Property and equipment, net, under capital leases $ 38 $ 455 (2) The following table presents the depreciation of property and equipment included on the Company’s Condensed Consolidated Statements of Income (in thousands): Three Months Ended Six Months Ended April 30, May 2, April 30, May 2, Depreciation expense $ 18,658 $ 17,898 $ 37,137 $ 36,697 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company applies fair value measurements for both financial and non-financial assets and liabilities. The Company does not have any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis as of April 30, 2016 . The fair value accounting guidance permits companies to elect fair value measurement for many financial instruments and certain other items that are not required to be accounted for at fair value. The Company did not elect fair value measurement for any eligible financial instruments or other assets. 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. During the six months ended April 30, 2016 , the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value. Assets and liabilities measured and recorded at fair value on a recurring basis as of April 30, 2016 , were as follows (in thousands): Fair Value Measurements Using Balance as of Quoted Prices in Significant Other Significant Assets: Money market funds (1) $ 1,151,583 $ 1,151,583 $ — $ — Derivative assets 1,025 — 1,025 — Total assets measured at fair value $ 1,152,608 $ 1,151,583 $ 1,025 $ — Liabilities: Derivative liabilities $ 739 $ — $ 739 $ — Total liabilities measured at fair value $ 739 $ — $ 739 $ — (1) Money market funds are reported within “Cash and cash equivalents” on the Company’s Condensed Consolidated Balance Sheets. Assets and liabilities measured and recorded at fair value on a recurring basis as of October 31, 2015 , were as follows (in thousands): Fair Value Measurements Using Balance as of Quoted Prices in Significant Other Significant Assets: Money market funds (1) $ 1,184,410 $ 1,184,410 $ — $ — Derivative assets 709 — 709 — Total assets measured at fair value $ 1,185,119 $ 1,184,410 $ 709 $ — Liabilities: Derivative liabilities $ 1,125 $ — $ 1,125 $ — Total liabilities measured at fair value $ 1,125 $ — $ 1,125 $ — (1) Money market funds are reported within “Cash and cash equivalents” on the Company’s Condensed Consolidated Balance Sheets. |
Restructuring and Other Costs
Restructuring and Other Costs | 6 Months Ended |
Apr. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Related Benefits The following table provides details of “ Restructuring and other related benefits ” on the Company’s Condensed Consolidated Statements of Income (in thousands): Three Months Ended Six Months Ended April 30, May 2, April 30, May 2, Lease loss reserve and related benefits $ — $ (637 ) $ (566 ) $ (637 ) The following table provides a reconciliation of the Company’s beginning and ending restructuring liability balances (in thousands): Fiscal 2013 Fourth Quarter Restructuring Plan Other Restructuring Plans Severance and Benefits Lease Loss Reserve and Related Costs Lease Loss Reserve and Related Costs Total Restructuring liabilities at October 31, 2015 $ 110 $ 1,811 $ 408 $ 2,329 Restructuring and other related benefits — (566 ) — (566 ) Cash payments — (285 ) (180 ) (465 ) Translation adjustment 2 (6 ) — (4 ) Restructuring liabilities at April 30, 2016 $ 112 $ 954 $ 228 $ 1,294 Current restructuring liabilities at April 30, 2016 $ 112 $ 378 $ 228 $ 718 Non-current restructuring liabilities at April 30, 2016 $ — $ 576 $ — $ 576 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 included a workforce reduction, as well as the cancellation of certain non-recurring engineering agreements and exits from certain leased facilities. The restructuring plan was substantially completed in the first quarter of fiscal year 2014. Other Restructuring Plans 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. General The Company reevaluates its estimates and assumptions on a quarterly basis and makes adjustments to the restructuring liabilities balance if necessary. During the six months ended April 30, 2016 , the Company reversed $0.6 million of charges related to estimated facilities lease losses due to a change in lease terms for a certain facility. |
Borrowings
Borrowings | 6 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following table provides details of the Company’s long-term debt (in thousands, except years and percentages): April 30, 2016 October 31, 2015 Maturity Stated Annual Interest Rate Amount Effective Interest Rate Amount Effective Interest Rate Convertible Senior Unsecured Notes: 2020 Convertible Notes 2020 1.375% $ 575,000 4.98 % $ 575,000 4.98 % Senior Unsecured Notes: 2023 Notes 2023 4.625% 300,000 4.83 % 300,000 4.83 % Capital lease obligations 2016 4.625% 101 4.63 % 298 4.63 % Total gross long-term debt 875,101 875,298 Unamortized discount (70,675 ) (79,196 ) Unamortized debt issuance costs (1,843 ) (2,025 ) Current portion of long-term debt (101 ) (298 ) Long-term debt, net of current portion $ 802,482 $ 793,779 Convertible Senior Unsecured Notes On January 14, 2015, the Company issued $575.0 million in aggregate principal amount of 1.375% convertible senior unsecured notes due 2020 (the “2020 Convertible Notes”) pursuant to an indenture, dated as of January 14, 2015, between the Company and Wells Fargo Bank, National Association, as the trustee (the “Offering”). Net of an original issue discount, the Company received $565.7 million in proceeds from the Offering. Concurrently with the closing of the Offering, the Company called for redemption its outstanding 6.875% senior secured notes due 2020 (the “2020 Notes”) and irrevocably deposited a portion of the net proceeds from the Offering with the trustee to discharge the 2020 Indenture as described below under “ Senior Secured Notes. ” The 2020 Convertible Notes bear interest payable semiannually on January 1 and July 1 of each year, beginning on July 1, 2015. No payments were made toward the principal of the 2020 Convertible Notes during the six months ended April 30, 2016 . The Company separately accounts for the liability and equity components of the 2020 Convertible Notes. The fair value of the liability component, used in the allocation between the liability and equity components as of the date of issuance, was based on the present value of cash flows using a discount rate of 4.57% , the Company’s borrowing rate for a similar debt instrument without the conversion feature. The carrying values of the liability and equity components of the 2020 Convertible Notes are as follows (in thousands): April 30, October 31, Principal $ 575,000 $ 575,000 Unamortized discount of the liability component (67,959 ) (76,311 ) Net carrying amount of liability component $ 507,041 $ 498,689 Carrying amount of equity component $ 63,164 $ 70,765 As of April 30, 2016 , the remaining period of amortization for the discount is 3.67 years. The amount of interest cost recognized for amortization of the discount and for the contractual interest coupon for the 2020 Convertible Notes was $4.2 million and $2.0 million , respectively, during the three months ended April 30, 2016 . The amount of interest cost recognized for amortization of the discount and for the contractual interest coupon for the 2020 Convertible Notes was $8.4 million and $4.0 million , respectively, during the six months ended April 30, 2016 . The amount of interest cost recognized for amortization of the discount and for the contractual interest coupon for the 2020 Convertible Notes was $4.0 million and $2.0 million , respectively, during the three months ended May 2, 2015 . The amount of interest cost recognized for amortization of the discount and for the contractual interest coupon for the 2020 Convertible Notes was $4.7 million and $2.3 million , respectively, during the six months ended May 2, 2015 . As of April 30, 2016 , and October 31, 2015 , the fair value of the 2020 Convertible Notes was approximately $560.6 million and $568.0 million , respectively, which was estimated based on broker trading prices. The 2020 Convertible Notes mature on January 1, 2020 , unless repurchased or converted in accordance with their terms prior to such date. The 2020 Convertible Notes are not callable prior to their maturity. The 2020 Convertible Notes are convertible into shares of common stock of the Company under the circumstances described below. The initial conversion rate is 62.7746 shares of the Company’s common stock per $1,000 principal amount of the notes, which is equal to 36.1 million shares at an initial conversion price of approximately $15.93 per share. The 2020 Convertible Notes contain provisions where the conversion rate is adjusted upon the occurrence of certain events, including if the Company pays a regular, quarterly cash dividend in an amount greater than $0.035 per share. During the second fiscal quarter of 2016, the Board of Directors of the Company declared and paid a cash dividend in the amount of $0.045 per share. Accordingly, as of March 8, 2016 , the conversion rate was adjusted to a rate of 63.0192 shares of the Company’s common stock per $1,000 principal amount of the notes, which is equal to 36.2 million shares at a conversion price of approximately $15.87 per share. However, because the adjustment resulted in a change to the conversion rate of less than 1%, as is allowed by the terms of the indenture governing the 2020 Convertible Notes, the Company elected to defer the administration and noteholder notification of such adjustment until the occurrence of (i) a subsequent adjustment to the conversion rate that results in a cumulative adjustment of at least 1% of the current conversion rate, (ii) the conversion of any 2020 Convertible Note, or (iii) certain other events requiring the adjustment to be made under the indenture governing the 2020 Convertible Notes. Holders of the 2020 Convertible Notes may convert all or a portion of their notes prior to the close of business on the business day immediately preceding September 1, 2019, in multiples of $1,000 principal amount, only under the following circumstances: • During any fiscal quarter commencing after the fiscal quarter ending on May 2, 2015 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the notes on each applicable trading day; • During the five -business-day period after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of the notes for each trading day of that 10 consecutive trading day period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate of the notes on each such trading day; or • Upon the occurrence of certain corporate events as specified in the terms of the indenture governing the 2020 Convertible Notes. On or after September 1, 2019, to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes regardless of the foregoing conditions. As of April 30, 2016 , the circumstances for conversion had not been triggered, and the 2020 Convertible Notes were not convertible. The if-converted value of the 2020 Convertible Notes as of April 30, 2016 , did not exceed the principal amount of the 2020 Convertible Notes. If a fundamental change, as specified in the terms of the indenture governing the 2020 Convertible Notes, occurs prior to the maturity date, holders of the notes may require the Company to repurchase the 2020 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2020 Convertible Notes repurchased, plus accrued and unpaid interest, if any, up to the repurchase date. As of April 30, 2016 , a fundamental change had not occurred and the 2020 Convertible Notes were not re-purchasable. Convertible Note Hedge and Warrants Related to the Convertible Senior Unsecured Notes In connection with the issuance of the 2020 Convertible Notes, the Company entered into convertible note hedge transactions with certain financial institutions (the “counterparties”) with respect to its common stock. Upon conversion of the 2020 Convertible Notes, the convertible note hedge transactions give the Company the right to acquire from the counterparties, subject to anti-dilution adjustments substantially similar to those in the 2020 Convertible Notes, initially approximately 36.1 million shares of the Company’s common stock at an initial strike price of $15.93 per share. Because a dividend in an amount greater than $0.035 per share was declared and paid effective beginning in the third fiscal quarter of 2015, the strike price under the convertible note hedge transactions has been adjusted to approximately $15.87 per share as of March 8, 2016 . The convertible note hedge transactions are expected generally to reduce the potential common stock dilution and/or offset potential cash payments in excess of the principal amount of converted notes upon conversion of the notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the convertible note hedge transactions, is greater than the strike price of the convertible note hedge transactions. The convertible note hedge transactions will be terminated on the maturity date of the 2020 Convertible Notes or earlier under certain circumstances. The $86.1 million cost of the convertible note hedge transactions has been accounted for as an equity transaction. Separately from the convertible note hedge transactions, the Company entered into warrant transactions with the counterparties, pursuant to which the Company sold warrants to the counterparties to acquire, subject to customary anti-dilution adjustments, up to 36.1 million shares in the aggregate at an initial strike price of $20.65 per share. The primary reason the Company entered into these warrant transactions was to partially offset the cost of the convertible note hedge transactions. The warrants mature over 60 trading days, commencing on April 1, 2020 , and are exercisable solely on the maturity dates. The warrants are subject to net share settlement; however, the Company may elect to cash settle the warrants. The Company received gross proceeds of $51.2 million from the warrant transactions, which have been accounted for as an equity transaction. Under the terms of the warrants, the strike price and number of shares to be acquired by the holders of the warrants are adjusted if the Company pays a regular, quarterly cash dividend in an amount greater than $0.035 per share. Accordingly, the terms of the warrants were adjusted to reflect the payment of a cash dividend in the amount of $0.045 per share beginning in the third fiscal quarter of 2015, and, as of March 8, 2016 , the holders of the warrants have the right to acquire up to approximately 36.2 million shares of the Company’s common stock at a strike price of approximately $20.57 per share. See Note 15 , “ Net Income per Share ,” of the Notes to Condensed Consolidated Financial Statements for further discussion of the dilutive impact of the 2020 Convertible Notes and the convertible note hedge and warrant transactions. 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, and Wells Fargo Bank, National Association, as the trustee. The guarantees of the 2023 Notes were released upon the termination of the Senior Secured Credit Facility and discharge of the 2020 Indenture in the first fiscal quarter of 2015. 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 six months ended April 30, 2016 . As of April 30, 2016 , and October 31, 2015 , the fair value of the 2023 Notes was approximately $291.7 million and $293.9 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. 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 subsidiaries guaranteeing the 2023 Notes on a pari passu basis; and • Enter into certain consolidation or merger transactions, 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 as 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 2020 Notes pursuant to an indenture, dated as of January 20, 2010, between the Company, certain domestic subsidiaries of the Company, and Wells Fargo Bank, National Association, as the trustee (the “2020 Indenture”). Interest on the 2020 Notes was payable semiannually on January 15 and July 15 of each year. The Company’s obligations under the 2020 Notes were previously 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. On January 14, 2015, the Company called the 2020 Notes for redemption at a redemption price equal to 103.438% of the principal amount of the 2020 Notes, and irrevocably deposited $322.2 million with the trustee for the 2020 Notes to discharge the 2020 Indenture. Due to 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 2020 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 2020 Notes, $10.3 million representing the difference between the redemption price and the principal amount of the 2020 Notes (“Call Premium”), $10.3 million for accrued interest through January 15, 2015, and $1.6 million of interest payable up to the redemption date of February 13, 2015. The trustee redeemed the 2020 Notes on February 13, 2015, using the deposited amount, extinguishing the Company’s $300.0 million liability for the principal amount of the 2020 Notes. In accordance with the applicable accounting guidance for debt modification and extinguishment, and for interest costs accounting, the Company expensed the Call Premium, remaining debt issuance costs, and remaining original issue discount relating to the 2020 Notes in the first quarter of fiscal year 2015, which totaled $20.4 million . The Company reported this expense within “Interest expense” on the Company’s Condensed Consolidated Statements of Income for the six months ended May 2, 2015 . Debt Maturities As of April 30, 2016 , the Company’s aggregate debt maturities based on outstanding principal were as follows (in thousands): Fiscal Year Principal Balances 2016 (remaining six months) $ 101 2017 — 2018 — 2019 — 2020 575,000 Thereafter 300,000 Total $ 875,101 |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Apr. 30, 2016 | |
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 six months ended April 30, 2016 , and May 2, 2015 (in thousands): Accrued Warranty Six Months Ended April 30, May 2, Beginning balance $ 7,599 $ 7,486 Liabilities accrued for warranties issued during the period 1,876 2,302 Warranty claims paid and used during the period (1,931 ) (2,132 ) Changes in liability for pre-existing warranties during the period (115 ) (349 ) Ending balance $ 7,429 $ 7,307 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 products, both alone and in certain circumstances when in combination with other products and services, for infringement of 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 April 30, 2016 , 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 its CMs under which Brocade provides 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. In addition, Brocade has an arrangement with one of its CMs regarding factory capacity that can be used by the Company. Under this arrangement, the Company receives a credit for exceeding the planned utilization of factory capacity and, conversely, is required to pay additional fees for underutilizing the planned capacity. As of April 30, 2016 , the Company’s aggregate commitment to its CMs for inventory components used in the manufacture of Brocade products was $204.1 million , which the Company expects to utilize during future normal ongoing operations, net of a purchase commitments reserve of $1.3 million , which is reported within “Other accrued liabilities” on the Company’s Condensed Consolidated Balance Sheet as of April 30, 2016 . The Company’s purchase commitments reserve reflects the Company’s estimate of purchase commitments it does not expect to utilize in normal ongoing operations. Income Taxes The Company is subject to several ongoing income tax audits and has received notices of proposed adjustments or assessments from certain tax authorities. 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 Hedg
Derivative Instruments And Hedging Activities | 6 Months Ended |
Apr. 30, 2016 | |
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 manage its exposure to credit risk by entering into derivative instruments. However, the Company manages its exposure to credit risk through its investment policies. As part of these investment policies, the Company generally enters into 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 six months ended April 30, 2016 , were the British pound , the euro , the Indian rupee , the Chinese yuan , the Singapore dollar , the Japanese yen , 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 utilizes a rolling hedge strategy for the majority of its foreign currency derivative instruments to hedge exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S.-dollar-denominated cash flows. All of the Company’s foreign currency forward contracts are single delivery, which are settled at maturity involving one cash payment. 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 15 months . For these derivatives, the Company initially 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 loss was not material for the three and six months ended April 30, 2016, and May 2, 2015 . 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 material for the three and six months ended April 30, 2016, and May 2, 2015 . Net losses relating to the effective portion of foreign currency derivatives, which are offset by net gains on the underlying exposures, are recorded in the Company’s Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Cost of revenues $ (66 ) $ (328 ) $ (160 ) $ (464 ) Research and development (427 ) (32 ) (626 ) (67 ) Sales and marketing (270 ) (870 ) (644 ) (1,324 ) General and administrative (17 ) (25 ) (44 ) (83 ) Total $ (780 ) $ (1,255 ) $ (1,474 ) $ (1,938 ) Alternatively, the Company may choose not to hedge the foreign currency risk associated with its foreign currency exposures if the Company believes such exposure acts as a natural foreign currency hedge for other offsetting amounts denominated in the same currency or if the currency is difficult or too expensive to hedge. As a result of foreign currency fluctuations, the net foreign currency exchange gains and losses recorded as part of “ Interest and other income (loss), net ” were losses of $0.3 million and $0.6 million for the three and six months ended April 30, 2016 , respectively, and gains of $0.1 million and losses of $0.9 million for the three and six months ended May 2, 2015 , respectively. As of April 30, 2016 , the Company had gross unrealized loss positions of $0.7 million and gross unrealized gain positions of $1.0 million included in “Other accrued liabilities” and “Prepaid expenses and other current assets,” respectively. Volume of Derivative Activity All derivatives are designated as hedging instruments as of April 30, 2016 , and October 31, 2015 . Total gross notional amounts, presented by currency, are as follows (in thousands): Derivatives Designated In U.S. dollars April 30, 2016 October 31, 2015 British pound $ 21,936 $ 46,330 Euro 21,311 40,961 Indian rupee 17,668 35,647 Chinese yuan 7,418 15,129 Singapore dollar 6,943 13,745 Japanese yen 4,985 8,809 Swiss franc 4,771 9,265 Total $ 85,032 $ 169,886 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Apr. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense, net of estimated forfeitures, is included in the following line items of the Company’s Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Cost of revenues $ 3,531 $ 1,986 $ 6,436 $ 5,802 Research and development 5,123 3,080 10,599 8,013 Sales and marketing 11,052 7,207 22,130 17,050 General and administrative 5,083 3,802 9,668 9,292 Total stock-based compensation expense $ 24,789 $ 16,075 $ 48,833 $ 40,157 The following table presents stock-based compensation expense, net of estimated forfeitures, by grant type (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Stock options $ 708 $ 536 $ 1,437 $ 1,892 RSUs, including restricted stock units with market conditions 20,589 11,317 40,382 29,251 Employee stock purchase plan (“ESPP”) 3,492 4,222 7,014 9,014 Total stock-based compensation expense $ 24,789 $ 16,075 $ 48,833 $ 40,157 The following table presents the unrecognized compensation expense, net of estimated forfeitures, by grant type and the related weighted-average periods over which this expense is expected to be recognized as of April 30, 2016 (in thousands, except for the weighted-average period): Unrecognized Compensation Expense Weighted- Average Period (In years) Stock options $ 1,414 0.91 RSUs, including restricted stock units with market conditions $ 109,208 1.82 ESPP $ 6,518 1.03 The following table presents details on grants made by the Company for the following periods: Six Months Ended April 30, 2016 May 2, 2015 Granted Weighted-Average Granted Weighted-Average Stock options — $ — 1,117 $ 3.09 RSUs, including stock units with market conditions 4,181 $ 8.13 5,463 $ 10.98 The total intrinsic value of stock options exercised for the six months ended April 30, 2016 , and May 2, 2015 , was $1.1 million and $2.0 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Apr. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Dividends During the six months ended April 30, 2016 , 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 November 22, 2015 $ 0.045 December 10, 2015 $ 18,429 January 4, 2016 February 16, 2016 $ 0.045 March 10, 2016 $ 18,016 April 4, 2016 Future dividends are subject to review and approval on a quarterly basis by the Company’s Board of Directors or a committee thereof. Convertible Note Hedge and Warrants Related to the Convertible Senior Unsecured Notes In connection with the issuance of the 2020 Convertible Notes, the Company entered into convertible note hedge and warrant transactions with certain financial institutions with respect to its common stock. See Note 8 , “ Borrowings ,” of the Notes to Condensed Consolidated Financial Statements for further discussion. Accumulated Other Comprehensive Loss The components of other comprehensive income (loss) and related tax effects for the three months ended April 30, 2016 , and May 2, 2015 , are as follows (in thousands): Three Months Ended April 30, 2016 May 2, 2015 Before-Tax Amount Tax Expense Net-of-Tax Amount Before-Tax Amount Tax Expense Net-of-Tax Amount Unrealized gains (losses) on cash flow hedges: Change in unrealized gains and losses, foreign exchange contracts $ 2,254 $ (290 ) $ 1,964 $ (17 ) $ (126 ) $ (143 ) Net gains and losses reclassified into earnings, foreign exchange contracts (1) 780 (56 ) 724 1,255 (146 ) 1,109 Net unrealized gains (losses) on cash flow hedges 3,034 (346 ) 2,688 1,238 (272 ) 966 Foreign currency translation adjustments 2,070 — 2,070 (1,068 ) — (1,068 ) Total other comprehensive income (loss) $ 5,104 $ (346 ) $ 4,758 $ 170 $ (272 ) $ (102 ) The components of other comprehensive income (loss) and related tax effects for the six months ended April 30, 2016 , and May 2, 2015 , are as follows (in thousands): Six Months Ended April 30, 2016 May 2, 2015 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on cash flow hedges: Change in unrealized gains and losses, foreign exchange contracts $ (342 ) $ 6 $ (336 ) $ (2,197 ) $ 279 $ (1,918 ) Net gains and losses reclassified into earnings, foreign exchange contracts (1) 1,474 (124 ) 1,350 1,938 (225 ) 1,713 Net unrealized gains (losses) on cash flow hedges 1,132 (118 ) 1,014 (259 ) 54 (205 ) Foreign currency translation adjustments (133 ) — (133 ) (5,289 ) — (5,289 ) Total other comprehensive income (loss) $ 999 $ (118 ) $ 881 $ (5,548 ) $ 54 $ (5,494 ) (1) For classification of amounts reclassified from accumulated other comprehensive loss into earnings as reported on the Company’s Condensed Consolidated Statements of Income , 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 six months ended April 30, 2016 , and May 2, 2015 , are as follows (in thousands): Six Months Ended April 30, 2016 May 2, 2015 Losses on Cash Flow Hedges Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Loss Losses on Cash Flow Hedges Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Loss Beginning balance $ (1,539 ) $ (23,463 ) $ (25,002 ) $ (1,907 ) $ (16,907 ) $ (18,814 ) Change in unrealized gains and losses (336 ) (133 ) (469 ) (1,918 ) (5,289 ) (7,207 ) Net gains and losses reclassified into earnings 1,350 — 1,350 1,713 — 1,713 Net current-period other comprehensive income (loss) 1,014 (133 ) 881 (205 ) (5,289 ) (5,494 ) Ending balance $ (525 ) $ (23,596 ) $ (24,121 ) $ (2,112 ) $ (22,196 ) $ (24,308 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In general, the Company’s provision for income taxes differs from the tax computed at the U.S. federal statutory tax rate due to state taxes, the effect of non-U.S. operations being taxed at rates lower than the U.S. federal statutory tax rate, non-deductible stock-based compensation expense, tax credits, and adjustments to unrecognized tax benefits. Earnings of the Company’s subsidiaries outside of the United States primarily relate to its European, Asia Pacific, and Japan businesses. The effective tax rate for the three months ended April 30, 2016 , was higher than the U.S. federal statutory tax rate of 35% primarily due to the increase in unrecognized tax benefits related to certain intercompany transactions. The effective tax rate for the six months ended April 30, 2016 , was lower than the U.S. federal statutory tax rate of 35% primarily due to the benefits from the federal research and development tax credit, which was permanently reinstated retroactive to January 1, 2015, by the passage of the Protecting Americans from Tax Hikes Act of 2015. The effective tax rate for the three and six months ended April 30, 2016 , was higher compared with the three and six months ended May 2, 2015 , primarily due to the increase in unrecognized tax benefits related to certain intercompany transactions during the three months ended April 30, 2016 . The Company’s total gross unrecognized tax benefits, excluding interest and penalties, were $142.1 million as of April 30, 2016 . If the total gross unrecognized tax benefits as of April 30, 2016 , were recognized in the future, approximately $102.5 million would decrease the Company’s effective tax rate. The IRS and other tax authorities regularly examine the Company’s income tax returns. In October 2014, the IRS issued a Revenue Agent’s Report related to its field examination of the Company’s federal income tax returns for fiscal years 2009 and 2010. The IRS is contesting certain assumptions used to support the Company’s transfer pricing with its foreign subsidiaries. In November 2014, the Company filed a protest to challenge the proposed adjustment, and in March 2015, the issue was moved to the Office of Appeals. In addition, in October 2014, the Geneva Tax Administration issued its final assessments for fiscal years 2003 to 2012, disputing certain of the Company’s transfer pricing arrangements. In November 2014, the Company filed a protest to challenge the final assessments. 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. Before the end of fiscal year 2016, 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 its unrecognized tax benefits. Taking into consideration the inherent uncertainty as to settlement terms, the timing of payments, and the impact of such settlements on the uncertainty in income taxes, the Company estimates the range of potential decreases in underlying uncertainty in income tax is between $0 and $19 million in the next 12 months. |
Segment Information
Segment Information | 6 Months Ended |
Apr. 30, 2016 | |
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. Brocade is organized into three operating segments, each of which is an individually reportable segment: SAN Products, IP Networking Products, and Global Services. These reportable segments are organized principally by product category. At this time, the Company does not track its operating expenses by operating segments because management does not consider this information in its measurement of the performance of the operating segments. The Company also does not track all of its assets by operating segments. The majority of the Company’s assets as of April 30, 2016 , were attributable to its U.S. operations. Summarized financial information by reportable segment for the three and six months ended April 30, 2016, and May 2, 2015 , based on the internal management reporting system, is as follows (in thousands): SAN Products IP Networking Products Global Services Total Three months ended April 30, 2016 Net revenues $ 296,627 $ 131,566 $ 95,113 $ 523,306 Cost of revenues 71,972 60,236 40,787 172,995 Gross margin $ 224,655 $ 71,330 $ 54,326 $ 350,311 Three months ended May 2, 2015 Net revenues $ 313,512 $ 144,731 $ 88,332 $ 546,575 Cost of revenues 73,768 63,844 36,754 174,366 Gross margin $ 239,744 $ 80,887 $ 51,578 $ 372,209 Six months ended April 30, 2016 Net revenues $ 643,685 $ 265,675 $ 188,230 $ 1,097,590 Cost of revenues 153,176 123,129 82,159 358,464 Gross margin $ 490,509 $ 142,546 $ 106,071 $ 739,126 Six months ended May 2, 2015 Net revenues $ 666,911 $ 277,570 $ 178,333 $ 1,122,814 Cost of revenues 159,493 128,045 73,384 360,922 Gross margin $ 507,418 $ 149,525 $ 104,949 $ 761,892 |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Apr. 30, 2016 | |
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 Six Months Ended April 30, May 2, April 30, May 2, Basic net income per share Net income $ 43,085 $ 77,040 $ 136,731 $ 164,307 Weighted-average shares used in computing basic net income per share 400,554 420,718 404,228 424,627 Basic net income per share $ 0.11 $ 0.18 $ 0.34 $ 0.39 Diluted net income per share Net income $ 43,085 $ 77,040 $ 136,731 $ 164,307 Weighted-average shares used in computing basic net income per share 400,554 420,718 404,228 424,627 Dilutive potential common shares in the form of stock options 1,428 1,826 1,380 1,780 Dilutive potential common shares in the form of other share-based awards 6,766 10,690 6,309 9,788 Weighted-average shares used in computing diluted net income per share 408,748 433,234 411,917 436,195 Diluted net income per share $ 0.11 $ 0.18 $ 0.33 $ 0.38 Antidilutive potential common shares in the form of: (1) Warrants issued in conjunction with the 2020 Convertible Notes (2) 36,240 36,095 36,220 21,618 Stock options 1,374 1,117 1,624 847 Other share-based awards 316 — 650 — (1) These amounts are excluded from the computation of diluted net income per share. (2) In connection with the issuance of the 2020 Convertible Notes, the Company entered into convertible note hedge and warrant transactions as described in Note 8 , “ Borrowings .” The 2020 Convertible Notes have no impact on diluted earnings per share until the average quarterly price of the Company’s common stock exceeds the adjusted conversion price of $15.87 per share. If the common stock price exceeds this adjusted conversion price, then, prior to conversion, the Company will calculate the effect of the additional shares that may be issued using the treasury stock method. If the average price of the Company’s common stock exceeds $20.57 per share for a quarterly period, the Company’s weighted-average shares used in computing diluted net income per share will be impacted by the effect of the additional potential shares that may be issued related to the warrants using the treasury stock method. The convertible note hedge is not considered for purposes of the diluted earnings per share calculation, as its effect would be antidilutive. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 6 Months Ended |
Apr. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On May 27, 2016, the Company completed its acquisition of Ruckus in accordance with the terms and conditions of the Agreement and Plan of Merger (the “Merger Agreement”), dated April 3, 2016, between the Company, Stallion Merger Sub Inc., a wholly owned subsidiary of the Company (“Stallion”), and Ruckus. Pursuant to the Merger Agreement, Stallion merged into Ruckus with Ruckus surviving as a wholly owned subsidiary of the Company. The acquisition is expected to complement the Company’s enterprise networking portfolio, adding Ruckus’ wireless products to the Company’s networking solutions. Pursuant to the terms of the Merger Agreement, Ruckus stockholders received $6.45 in cash and 0.75 shares of the Company’s common stock in exchange for each share of Ruckus common stock. The preliminary estimated purchase price for the Ruckus acquisition was approximately $1.2 billion , which is comprised of $0.6 billion in cash and $0.6 billion of equity interests in the Company. Due to the limited amount of time since the completion of the acquisition, the purchase price allocation was based on a preliminary valuation of the assets acquired and liabilities assumed and could change materially as the Company finalizes the fair values of the tangible and intangible assets acquired and liabilities assumed. The following table summarizes the preliminary allocation of the purchase price for the Ruckus acquisition (in thousands): Assets acquired: Cash and cash equivalents $ 59,714 Restricted cash 5,000 Short-term investments 166,934 Accounts receivable, net of allowance for doubtful accounts of $800 80,256 Inventories 64,000 Prepaid expenses and other current assets 9,185 Property and equipment, net 27,888 Identifiable intangible assets 422,000 Non-current deferred tax assets 70,944 Other assets 1,767 Total assets acquired 907,688 Liabilities assumed: Accounts payable 23,074 Accrued employee compensation 17,100 Deferred revenue 13,947 Other accrued liabilities 11,209 Non-current deferred revenue 10,420 Non-current deferred tax liability 172,265 Other non-current liabilities 3,274 Total liabilities assumed 251,289 Net assets acquired, excluding goodwill (a) 656,399 Total preliminary estimated purchase price (b) 1,245,090 Estimated goodwill (b) - (a) $ 588,691 Goodwill represents the excess of the preliminary estimated purchase price over the fair value of the underlying assets acquired and liabilities assumed. Goodwill is attributable to planned growth in new markets, and synergies expected to be achieved from the combined operations of the Company and Ruckus. The goodwill will be assigned to our IP Networking Products reportable segment. Goodwill recognized in the acquisition is no t expected to be deductible for tax purposes. Intangible Assets Preliminary identified intangible assets and their respective useful lives are as follows (in thousands, except estimated useful life): Intangible Asset Approximate Fair Value Estimated Useful Life (in years) Trade name/trademark $ 48,000 12.50 Customer relationships 117,000 6.50 Developed technology 223,000 5.50 IPR&D (1) 34,000 N/A Total intangible assets $ 422,000 (1) IPR&D will be accounted for as an indefinite-lived intangible asset until the underlying projects are completed or abandoned. The following unaudited pro forma financial information presents the consolidated results of the Company and Ruckus for the three and six months ended April 30, 2016, and May 2, 2015 , giving effect to the acquisition and the related debt financing as if they had occurred on November 2, 2014. The unaudited pro forma financial information combines the historical consolidated statement of income of the Company and Ruckus and includes adjustments to give effect to pro forma events that are directly attributable to the acquisition and the related debt financing. The unaudited pro forma financial information for the three and six months ended April 30, 2016, and May 2, 2015 , combines the historical results of Brocade for those same periods and of Ruckus for the three and six months ended March 31, 2016, and March 31, 2015, respectively, which represent Ruckus’ reporting periods prior to the acquisition. The pro forma financial information includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to share-based compensation expense, the acquisition accounting effect on inventory acquired and deferred revenue, interest expense for the additional indebtedness and acquisition costs. The unaudited financial pro forma information is presented for illustrative purposes only and is not necessarily indicative of the results of operations of future periods. The unaudited pro forma financial information does not give effect to the potential impact of current financial conditions, regulatory matters, or any anticipated synergies, operating efficiencies or cost savings that may be associated with the acquisition. Consequently, actual results will differ from the unaudited pro forma financial information presented below (in thousands): Three Months Ended Six Months Ended April 30, May 2, April 30, May 2, Unaudited pro forma consolidated results: Pro forma revenues $ 623,143 $ 627,917 $ 1,296,807 $ 1,276,670 Pro forma net income $ 31,203 $ 60,324 $ 115,421 $ 88,107 As the acquisition occurred after April 30, 2016, the Company’s Condensed Consolidated Statements of Income for the three and six months ended April 30, 2016, and May 2, 2015 , do not include any of Ruckus’ financial results. The preliminary estimated post-combination stock-based compensation expense for Company stock options and restricted stock units issued to replace canceled Ruckus stock options and restricted stock units is $47.3 million . This expense will be recognized in accordance with the Company’s policy. Initial Term Loan and Revolving Credit Facility In connection with the completion of the acquisition of Ruckus, on May 27, 2016, the Company entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, Deutsche Bank AG New York Branch, SunTrust Bank and certain other lenders. Pursuant to the Credit Agreement, the lenders have provided Brocade with a term loan facility of $800 million , which was fully drawn at the time of, and the proceeds used to fund in part, the acquisition, and a revolving credit facility of $100 million , which is fully available to finance ongoing working capital requirements and other general corporate purposes of the Company. The proceeds of both the term loan facility and the revolving credit facility may also be used to finance the repurchase of the Company’s shares. The initial term loan has a term of five years and bears interest at floating rates based on LIBOR, plus 1.5% interest margin. The Company’s obligations under the Credit Agreement are and will be fully and unconditionally guaranteed by certain of the Company’s existing and subsequently acquired or organized direct and indirect subsidiaries. The Company’s obligations under the Credit Agreement are unsecured but will be required to be secured upon the occurrence of certain events, including certain credit rating agency downgrades or the incurrence of certain indebtedness in excess of $600 million, subject to certain exceptions. The Credit Agreement includes financial covenants, including a maximum total leverage ratio and a minimum interest coverage ratio, certain restrictive covenants and customary events of default. Commitments under the revolving credit facility are subject to an annual undrawn commitment fee starting at 0.30% , and are later subject to adjustment between 0.20% and 0.35% based on the Company’s total leverage ratio. |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 6 Months Ended |
Apr. 30, 2016 | |
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. As is customary for companies that use the 52/53-week convention, every fifth year is a 53-week year. Fiscal year 2016 is a 52-week fiscal year and fiscal year 2015 was a 52-week fiscal year. The Company’s next 53-week fiscal year will be fiscal year 2019 and its next 14-week quarter will be the second quarter of fiscal year 2019. |
Consolidation Policy | The Company’s 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 the Company’s 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 Company’s 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, acquisition purchase price allocations, warranty obligations, inventory valuation and purchase commitments, restructuring costs, incentive compensation, facilities lease losses, impairment of goodwill and other indefinite-lived intangible assets, litigation, income taxes, and investments. Actual results may differ materially from these estimates. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy | New Accounting Pronouncements or Updates Recently Adopted In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update to Accounting Standards Codification (“ASC”) 205, Presentation of Financial Statements , and ASC 360, Property, Plant, and Equipment: 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, 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 should be applied prospectively. The Company adopted this update in the first quarter of fiscal year 2016. There was no material impact on the Company’s financial position, results of operations, or cash flows. In April 2015, the FASB issued an update to ASC 835, Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs . Under this update, debt issuance costs are required to be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. This update should be applied retrospectively to all prior periods presented in the financial statements. The Company adopted this update in the first quarter of fiscal year 2016. There was no material impact on the Company’s financial position, results of operations, or cash flows. In September 2015, the FASB issued an update to ASC 805, Business Combinations: Simplifying the Accounting Measurement-Period Adjustments . This update simplifies the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. Under this update, the adjustments are recognized in the reporting period in which the adjustment amounts are determined. This update should be applied prospectively. The Company adopted this update in the first quarter of fiscal year 2016. There was no material impact on the Company’s financial position, results of operations, or cash flows. In November 2015, the FASB issued an update to ASC 740, Income Taxes: Balance Sheet Classification of Deferred Taxes . This update simplifies the presentation of current and non-current deferred tax liabilities and assets. Under this update, the deferred tax liabilities and assets are classified as non-current on the balance sheet. The update does not impact the current requirement that deferred tax liabilities and assets be offset and presented as a single amount. This update may be applied either prospectively or retrospectively. The Company adopted this update in the first quarter of fiscal year 2016 and has elected to apply this update prospectively. There was no material impact on the Company’s financial position, results of operations, or cash flows. Recent Accounting Pronouncements or Updates That Are Not Yet Effective In May 2014, the FASB issued ASC 606, Revenue from Contracts with Customers , that will supersede virtually all existing revenue guidance. Under this new revenue guidance, 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 new revenue guidance 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 retained earnings. In August 2015, the FASB issued an update to defer the effective date of this new revenue guidance by one year. This new revenue guidance becomes effective and will be adopted by the Company in the first quarter of fiscal year 2019. Early adoption is not permitted for reporting periods before the first quarter of fiscal year 2018. The Company is currently evaluating the impact of this new revenue guidance on its consolidated financial statements. In March 2016, the FASB issued an update to ASC 606, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarifies the implementation guidance for principal versus agent considerations. In April 2016, the FASB issued an update to ASC 606, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing , which clarifies the guidance related to identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued an update to ASC 606, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , which clarifies the guidance related to collectibility and non-cash consideration, as well as provides practical expedients for the transition to ASC 606. The Company must adopt these updates with the adoption of ASC 606, Revenue from Contracts with Customers . The Company is currently evaluating the impact of these updates on its consolidated financial statements. In April 2015, the FASB issued an update to ASC 350, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in Cloud Computing Arrangement . This update provides guidance on the accounting for fees paid in a cloud computing arrangement if the arrangement was determined to include a software license. This update will not change U.S. GAAP for a customer’s accounting for service contracts. This update may be applied either prospectively or retrospectively and will be adopted by the Company in the first quarter of fiscal year 2017. Early adoption is permitted. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In July 2015, the FASB issued an update to ASC 330, Inventory: Simplifying the Measurement of Inventory . Under this update, measurement of inventory is based on the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and disposal. This update does not apply to inventory that is measured using last-in, first-out or the retail inventory method. This update should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2018. Early adoption is permitted. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In January 2016, the FASB issued an update to ASC 825, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This update consists of eight provisions that provide guidance on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and prospectively for equity investments without readily determinable fair values. This update becomes effective and will be adopted by the Company in the first quarter of fiscal year 2019. Early adoption is permitted for two of the eight provisions. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASC 842, Leases , that will supersede the existing lease guidance, including on-balance sheet recognition of operating leases for lessees. This new lease guidance should be applied using a modified retrospective approach and will be adopted by the Company in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is currently evaluating the impact of this new lease guidance on its consolidated financial statements. In March 2016, the FASB issued an update to ASC 718, Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting . This update simplifies certain aspects of the accounting for share-based payment transactions, including income taxes, forfeiture rates, classification of awards, and classification in the statement of cash flows. This update becomes effective in the first quarter of fiscal year 2018. Early adoption is permitted, and the Company plans to adopt this update before the effective date. The Company is currently evaluating the impact of this update on its consolidated financial statements. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Policies) | 6 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Goodwill Policy | The Company conducts its goodwill impairment test annually, as of the first day of the second fiscal quarter, and whenever events 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 by applying various observable market-based multiples to the reporting unit’s operating results and then applying an appropriate control premium. For the fiscal year 2016 annual goodwill impairment test, the Company used a combination of these approaches to estimate each reporting unit’s fair value. At the time that the fiscal year 2016 annual goodwill impairment test was performed, the Company believed that 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 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 are 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; • The Company’s forecasted 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 the Company’s regular long-range planning process. The control premium used in market or combined approaches was determined by considering control premiums offered as part of the acquisitions where acquired companies were 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. |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy | Acquired IPR&D are intangible assets accounted for as indefinite-lived assets until the completion or abandonment of the associated research and development efforts. If the research and development efforts associated with the IPR&D are successfully completed, then the IPR&D intangible assets will be amortized over the estimated useful lives to be determined as of the date the efforts are completed. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Policies) | 6 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Fair Value Transfer Policy | The Company applies fair value measurements for both financial and non-financial assets and liabilities. The Company does not have any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis as of April 30, 2016 . The fair value accounting guidance permits companies to elect fair value measurement for many financial instruments and certain other items that are not required to be accounted for at fair value. The Company did not elect fair value measurement for any eligible financial instruments or other assets. 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. During the six months ended April 30, 2016 , the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value. |
Derivative Instruments and He27
Derivative Instruments and Hedging Activities Derivative Instruments And Hedging Activities (Policies) | 6 Months Ended |
Apr. 30, 2016 | |
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 six months ended April 30, 2016 , were the British pound , the euro , the Indian rupee , the Chinese yuan , the Singapore dollar , the Japanese yen , 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 utilizes a rolling hedge strategy for the majority of its foreign currency derivative instruments to hedge exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S.-dollar-denominated cash flows. All of the Company’s foreign currency forward contracts are single delivery, which are settled at maturity involving one cash payment. 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 15 months . For these derivatives, the Company initially 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 loss was not material for the three and six months ended April 30, 2016, and May 2, 2015 . 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 material for the three and six months ended April 30, 2016, and May 2, 2015 . |
Goodwill And Intangible Asset28
Goodwill And Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill Activity By Reportable Segment | The following table summarizes goodwill activity by reportable segment during the six months ended April 30, 2016 (in thousands): Storage Area Networking (“SAN”) Products IP Networking Products Global Services Total Balance at October 31, 2015 Goodwill $ 176,325 $ 1,414,634 $ 155,416 $ 1,746,375 Accumulated impairment losses — (129,214 ) — (129,214 ) 176,325 1,285,420 155,416 1,617,161 Acquisitions (1) — 4,625 — 4,625 Tax adjustments (2) (5 ) — — (5 ) Translation adjustments — (90 ) — (90 ) Balance at April 30, 2016 Goodwill 176,320 1,419,169 155,416 1,750,905 Accumulated impairment losses — (129,214 ) — (129,214 ) $ 176,320 $ 1,289,955 $ 155,416 $ 1,621,691 (1) The goodwill acquired relates to the acquisition completed in March 2016. See Note 3 , “ Acquisitions ,” of the Notes to Condensed Consolidated Financial Statements. (2) The goodwill adjustments were primarily a result of tax benefits from the exercise of stock awards of acquired companies. |
Schedule of Intangible Assets | The following tables present details of the Company’s intangible assets, excluding goodwill (in thousands, except for weighted-average remaining useful life): April 30, 2016 Gross Accumulated Net Weighted- Finite-lived intangible assets: Trade names $ 1,090 $ 527 $ 563 4.13 Core/developed technology (1) (2) 57,290 14,912 42,378 4.00 Patent portfolio license (3) 7,750 1,399 6,351 17.49 Customer relationships 23,110 3,982 19,128 6.71 Non-compete agreements 1,050 824 226 0.69 Patents with broader applications 1,040 75 965 13.88 Total finite-lived intangible assets 91,330 21,719 69,611 6.10 Total intangible assets, excluding goodwill $ 91,330 $ 21,719 $ 69,611 October 31, 2015 Gross Accumulated Net Weighted- Finite-lived intangible assets: Trade names $ 1,090 $ 415 $ 675 4.36 Core/developed technology (2) 40,530 9,605 30,925 3.49 Patent portfolio license (3) 7,750 849 6,901 17.74 Customer relationships 23,110 2,484 20,626 7.18 Non-compete agreements 1,050 664 386 1.17 Patents with broader applications 1,040 40 1,000 14.38 Total finite-lived intangible assets 74,570 14,057 60,513 6.55 Indefinite-lived intangible assets, excluding goodwill: In-process research and development (“IPR&D”) (1) 15,110 — 15,110 Total indefinite-lived intangible assets, excluding goodwill 15,110 — 15,110 Total intangible assets, excluding goodwill $ 89,680 $ 14,057 $ 75,623 (1) Acquired IPR&D are intangible assets accounted for as indefinite-lived assets until the completion or abandonment of the associated research and development efforts. If the research and development efforts associated with the IPR&D are successfully completed, then the IPR&D intangible assets will be amortized over the estimated useful lives to be determined as of the date the efforts are completed. During the six months ended April 30, 2016 , research and development efforts were completed on $15.1 million of the IPR&D intangible assets, and the completed IPR&D intangible assets are being amortized as Core/developed technology over the respective estimated useful lives of five and six years. (2) During the six months ended April 30, 2016 , $1.0 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. (3) The patent portfolio license was assigned an estimated useful life that reflects the Company’s consumption of the expected defensive benefits related to this license to certain patents. The method of amortization for the patent portfolio license reflects the Company’s estimate of the pattern in which these expected defensive benefits will be used by the Company and is primarily based on the mix of expiration patterns of the individual patents included in the license. |
Schedule Of Amortization Of Intangible Assets Included On Consolidated Statements Of Operations | The amortization of finite-lived intangible assets is included in the following line items of the Company’s Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Cost of revenues $ 3,193 $ 1,857 $ 6,348 $ 2,494 General and administrative (1) 274 291 550 291 Amortization of intangible assets 902 627 1,804 765 Total $ 4,369 $ 2,775 $ 8,702 $ 3,550 (1) The amortization is related to the $7.8 million of perpetual, non-exclusive license to certain patents purchased during the fiscal year ended October 31, 2015. |
Schedule Of Estimated Future Amortization Of Intangible Assets | The following table presents the estimated future amortization of finite-lived intangible assets as of April 30, 2016 (in thousands): Fiscal Year Estimated Future Amortization 2016 (remaining six months) $ 8,979 2017 17,531 2018 13,012 2019 9,483 2020 8,394 Thereafter 12,212 Total $ 69,611 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Balance Sheet Details [Abstract] | |
Schedule of Inventory | The following tables provide details of selected balance sheet items (in thousands): April 30, October 31, Inventories: Raw materials $ 17,357 $ 18,788 Finished goods 22,164 21,736 Inventories $ 39,521 $ 40,524 |
Schedule of Property, Plant and Equipment | April 30, October 31, Property and equipment, net: Gross property and equipment Computer equipment $ 20,046 $ 14,820 Software 70,991 67,625 Engineering and other equipment (1) 424,059 407,342 Furniture and fixtures (1) 32,870 31,028 Leasehold improvements 37,016 33,986 Land and building 385,760 385,415 Total gross property and equipment 970,742 940,216 Accumulated depreciation and amortization (1), (2) (529,025 ) (500,992 ) Property and equipment, net $ 441,717 $ 439,224 (1) Engineering and other equipment, furniture and fixtures, and accumulated depreciation and amortization include the following amounts under capital leases as of April 30, 2016 , and October 31, 2015 (in thousands): April 30, October 31, Cost $ 1,312 $ 1,312 Accumulated depreciation (1,274 ) (857 ) Property and equipment, net, under capital leases $ 38 $ 455 (2) The following table presents the depreciation of property and equipment included on the Company’s Condensed Consolidated Statements of Income (in thousands): Three Months Ended Six Months Ended April 30, May 2, April 30, May 2, Depreciation expense $ 18,658 $ 17,898 $ 37,137 $ 36,697 |
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 April 30, 2016 , and October 31, 2015 (in thousands): April 30, October 31, Cost $ 1,312 $ 1,312 Accumulated depreciation (1,274 ) (857 ) Property and equipment, net, under capital leases $ 38 $ 455 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
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 April 30, 2016 , were as follows (in thousands): Fair Value Measurements Using Balance as of Quoted Prices in Significant Other Significant Assets: Money market funds (1) $ 1,151,583 $ 1,151,583 $ — $ — Derivative assets 1,025 — 1,025 — Total assets measured at fair value $ 1,152,608 $ 1,151,583 $ 1,025 $ — Liabilities: Derivative liabilities $ 739 $ — $ 739 $ — Total liabilities measured at fair value $ 739 $ — $ 739 $ — (1) Money market funds are reported within “Cash and cash equivalents” on the Company’s Condensed Consolidated Balance Sheets. Assets and liabilities measured and recorded at fair value on a recurring basis as of October 31, 2015 , were as follows (in thousands): Fair Value Measurements Using Balance as of Quoted Prices in Significant Other Significant Assets: Money market funds (1) $ 1,184,410 $ 1,184,410 $ — $ — Derivative assets 709 — 709 — Total assets measured at fair value $ 1,185,119 $ 1,184,410 $ 709 $ — Liabilities: Derivative liabilities $ 1,125 $ — $ 1,125 $ — Total liabilities measured at fair value $ 1,125 $ — $ 1,125 $ — (1) Money market funds are reported within “Cash and cash equivalents” on the Company’s Condensed Consolidated Balance Sheets. |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges | The following table provides details of “ Restructuring and other related benefits ” on the Company’s Condensed Consolidated Statements of Income (in thousands): Three Months Ended Six Months Ended April 30, May 2, April 30, May 2, Lease loss reserve and related benefits $ — $ (637 ) $ (566 ) $ (637 ) |
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 Other Restructuring Plans Severance and Benefits Lease Loss Reserve and Related Costs Lease Loss Reserve and Related Costs Total Restructuring liabilities at October 31, 2015 $ 110 $ 1,811 $ 408 $ 2,329 Restructuring and other related benefits — (566 ) — (566 ) Cash payments — (285 ) (180 ) (465 ) Translation adjustment 2 (6 ) — (4 ) Restructuring liabilities at April 30, 2016 $ 112 $ 954 $ 228 $ 1,294 Current restructuring liabilities at April 30, 2016 $ 112 $ 378 $ 228 $ 718 Non-current restructuring liabilities at April 30, 2016 $ — $ 576 $ — $ 576 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
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): April 30, 2016 October 31, 2015 Maturity Stated Annual Interest Rate Amount Effective Interest Rate Amount Effective Interest Rate Convertible Senior Unsecured Notes: 2020 Convertible Notes 2020 1.375% $ 575,000 4.98 % $ 575,000 4.98 % Senior Unsecured Notes: 2023 Notes 2023 4.625% 300,000 4.83 % 300,000 4.83 % Capital lease obligations 2016 4.625% 101 4.63 % 298 4.63 % Total gross long-term debt 875,101 875,298 Unamortized discount (70,675 ) (79,196 ) Unamortized debt issuance costs (1,843 ) (2,025 ) Current portion of long-term debt (101 ) (298 ) Long-term debt, net of current portion $ 802,482 $ 793,779 |
Schedule of Carrying Values of Liability and Equity Components | The carrying values of the liability and equity components of the 2020 Convertible Notes are as follows (in thousands): April 30, October 31, Principal $ 575,000 $ 575,000 Unamortized discount of the liability component (67,959 ) (76,311 ) Net carrying amount of liability component $ 507,041 $ 498,689 Carrying amount of equity component $ 63,164 $ 70,765 |
Schedule Of Debt Maturities | As of April 30, 2016 , the Company’s aggregate debt maturities based on outstanding principal were as follows (in thousands): Fiscal Year Principal Balances 2016 (remaining six months) $ 101 2017 — 2018 — 2019 — 2020 575,000 Thereafter 300,000 Total $ 875,101 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
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 six months ended April 30, 2016 , and May 2, 2015 (in thousands): Accrued Warranty Six Months Ended April 30, May 2, Beginning balance $ 7,599 $ 7,486 Liabilities accrued for warranties issued during the period 1,876 2,302 Warranty claims paid and used during the period (1,931 ) (2,132 ) Changes in liability for pre-existing warranties during the period (115 ) (349 ) Ending balance $ 7,429 $ 7,307 |
Derivative Instruments And He34
Derivative Instruments And Hedging Activities (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Net Gains (Losses) Related To The Effective Portion Of Foreign Currency Derivatives | Net losses relating to the effective portion of foreign currency derivatives, which are offset by net gains on the underlying exposures, are recorded in the Company’s Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Cost of revenues $ (66 ) $ (328 ) $ (160 ) $ (464 ) Research and development (427 ) (32 ) (626 ) (67 ) Sales and marketing (270 ) (870 ) (644 ) (1,324 ) General and administrative (17 ) (25 ) (44 ) (83 ) Total $ (780 ) $ (1,255 ) $ (1,474 ) $ (1,938 ) |
Schedule Of Total Gross Notional Amounts, Presented By Currency | Total gross notional amounts, presented by currency, are as follows (in thousands): Derivatives Designated In U.S. dollars April 30, 2016 October 31, 2015 British pound $ 21,936 $ 46,330 Euro 21,311 40,961 Indian rupee 17,668 35,647 Chinese yuan 7,418 15,129 Singapore dollar 6,943 13,745 Japanese yen 4,985 8,809 Swiss franc 4,771 9,265 Total $ 85,032 $ 169,886 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Stock-Based Compensation Expense Included In Line Items Of Consolidated Statements Of Operations | Stock-based compensation expense, net of estimated forfeitures, is included in the following line items of the Company’s Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Cost of revenues $ 3,531 $ 1,986 $ 6,436 $ 5,802 Research and development 5,123 3,080 10,599 8,013 Sales and marketing 11,052 7,207 22,130 17,050 General and administrative 5,083 3,802 9,668 9,292 Total stock-based compensation expense $ 24,789 $ 16,075 $ 48,833 $ 40,157 |
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 Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015 Stock options $ 708 $ 536 $ 1,437 $ 1,892 RSUs, including restricted stock units with market conditions 20,589 11,317 40,382 29,251 Employee stock purchase plan (“ESPP”) 3,492 4,222 7,014 9,014 Total stock-based compensation expense $ 24,789 $ 16,075 $ 48,833 $ 40,157 |
Stock-Based Compensation, Unrecognized Compensation Expense And Weighted-Average Period | The following table presents the unrecognized compensation expense, net of estimated forfeitures, by grant type and the related weighted-average periods over which this expense is expected to be recognized as of April 30, 2016 (in thousands, except for the weighted-average period): Unrecognized Compensation Expense Weighted- Average Period (In years) Stock options $ 1,414 0.91 RSUs, including restricted stock units with market conditions $ 109,208 1.82 ESPP $ 6,518 1.03 |
Schedule of Share-based Compensation, Activity | The following table presents details on grants made by the Company for the following periods: Six Months Ended April 30, 2016 May 2, 2015 Granted Weighted-Average Granted Weighted-Average Stock options — $ — 1,117 $ 3.09 RSUs, including stock units with market conditions 4,181 $ 8.13 5,463 $ 10.98 The total intrinsic value of stock options exercised for the six months ended April 30, 2016 , and May 2, 2015 , was $1.1 million and $2.0 million , respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Equity [Abstract] | |
Schedule of Dividends Payable [Table Text Block] | During the six months ended April 30, 2016 , 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 November 22, 2015 $ 0.045 December 10, 2015 $ 18,429 January 4, 2016 February 16, 2016 $ 0.045 March 10, 2016 $ 18,016 April 4, 2016 |
Schedule of Comprehensive Income (Loss) Tax Effects | The components of other comprehensive income (loss) and related tax effects for the three months ended April 30, 2016 , and May 2, 2015 , are as follows (in thousands): Three Months Ended April 30, 2016 May 2, 2015 Before-Tax Amount Tax Expense Net-of-Tax Amount Before-Tax Amount Tax Expense Net-of-Tax Amount Unrealized gains (losses) on cash flow hedges: Change in unrealized gains and losses, foreign exchange contracts $ 2,254 $ (290 ) $ 1,964 $ (17 ) $ (126 ) $ (143 ) Net gains and losses reclassified into earnings, foreign exchange contracts (1) 780 (56 ) 724 1,255 (146 ) 1,109 Net unrealized gains (losses) on cash flow hedges 3,034 (346 ) 2,688 1,238 (272 ) 966 Foreign currency translation adjustments 2,070 — 2,070 (1,068 ) — (1,068 ) Total other comprehensive income (loss) $ 5,104 $ (346 ) $ 4,758 $ 170 $ (272 ) $ (102 ) The components of other comprehensive income (loss) and related tax effects for the six months ended April 30, 2016 , and May 2, 2015 , are as follows (in thousands): Six Months Ended April 30, 2016 May 2, 2015 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on cash flow hedges: Change in unrealized gains and losses, foreign exchange contracts $ (342 ) $ 6 $ (336 ) $ (2,197 ) $ 279 $ (1,918 ) Net gains and losses reclassified into earnings, foreign exchange contracts (1) 1,474 (124 ) 1,350 1,938 (225 ) 1,713 Net unrealized gains (losses) on cash flow hedges 1,132 (118 ) 1,014 (259 ) 54 (205 ) Foreign currency translation adjustments (133 ) — (133 ) (5,289 ) — (5,289 ) Total other comprehensive income (loss) $ 999 $ (118 ) $ 881 $ (5,548 ) $ 54 $ (5,494 ) (1) For classification of amounts reclassified from accumulated other comprehensive loss into earnings as reported on the Company’s Condensed Consolidated Statements of Income , 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 six months ended April 30, 2016 , and May 2, 2015 , are as follows (in thousands): Six Months Ended April 30, 2016 May 2, 2015 Losses on Cash Flow Hedges Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Loss Losses on Cash Flow Hedges Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Loss Beginning balance $ (1,539 ) $ (23,463 ) $ (25,002 ) $ (1,907 ) $ (16,907 ) $ (18,814 ) Change in unrealized gains and losses (336 ) (133 ) (469 ) (1,918 ) (5,289 ) (7,207 ) Net gains and losses reclassified into earnings 1,350 — 1,350 1,713 — 1,713 Net current-period other comprehensive income (loss) 1,014 (133 ) 881 (205 ) (5,289 ) (5,494 ) Ending balance $ (525 ) $ (23,596 ) $ (24,121 ) $ (2,112 ) $ (22,196 ) $ (24,308 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Financial Information By Reportable Segment | Summarized financial information by reportable segment for the three and six months ended April 30, 2016, and May 2, 2015 , based on the internal management reporting system, is as follows (in thousands): SAN Products IP Networking Products Global Services Total Three months ended April 30, 2016 Net revenues $ 296,627 $ 131,566 $ 95,113 $ 523,306 Cost of revenues 71,972 60,236 40,787 172,995 Gross margin $ 224,655 $ 71,330 $ 54,326 $ 350,311 Three months ended May 2, 2015 Net revenues $ 313,512 $ 144,731 $ 88,332 $ 546,575 Cost of revenues 73,768 63,844 36,754 174,366 Gross margin $ 239,744 $ 80,887 $ 51,578 $ 372,209 Six months ended April 30, 2016 Net revenues $ 643,685 $ 265,675 $ 188,230 $ 1,097,590 Cost of revenues 153,176 123,129 82,159 358,464 Gross margin $ 490,509 $ 142,546 $ 106,071 $ 739,126 Six months ended May 2, 2015 Net revenues $ 666,911 $ 277,570 $ 178,333 $ 1,122,814 Cost of revenues 159,493 128,045 73,384 360,922 Gross margin $ 507,418 $ 149,525 $ 104,949 $ 761,892 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
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 Six Months Ended April 30, May 2, April 30, May 2, Basic net income per share Net income $ 43,085 $ 77,040 $ 136,731 $ 164,307 Weighted-average shares used in computing basic net income per share 400,554 420,718 404,228 424,627 Basic net income per share $ 0.11 $ 0.18 $ 0.34 $ 0.39 Diluted net income per share Net income $ 43,085 $ 77,040 $ 136,731 $ 164,307 Weighted-average shares used in computing basic net income per share 400,554 420,718 404,228 424,627 Dilutive potential common shares in the form of stock options 1,428 1,826 1,380 1,780 Dilutive potential common shares in the form of other share-based awards 6,766 10,690 6,309 9,788 Weighted-average shares used in computing diluted net income per share 408,748 433,234 411,917 436,195 Diluted net income per share $ 0.11 $ 0.18 $ 0.33 $ 0.38 Antidilutive potential common shares in the form of: (1) Warrants issued in conjunction with the 2020 Convertible Notes (2) 36,240 36,095 36,220 21,618 Stock options 1,374 1,117 1,624 847 Other share-based awards 316 — 650 — (1) These amounts are excluded from the computation of diluted net income per share. (2) In connection with the issuance of the 2020 Convertible Notes, the Company entered into convertible note hedge and warrant transactions as described in Note 8 , “ Borrowings .” The 2020 Convertible Notes have no impact on diluted earnings per share until the average quarterly price of the Company’s common stock exceeds the adjusted conversion price of $15.87 per share. If the common stock price exceeds this adjusted conversion price, then, prior to conversion, the Company will calculate the effect of the additional shares that may be issued using the treasury stock method. If the average price of the Company’s common stock exceeds $20.57 per share for a quarterly period, the Company’s weighted-average shares used in computing diluted net income per share will be impacted by the effect of the additional potential shares that may be issued related to the warrants using the treasury stock method. The convertible note hedge is not considered for purposes of the diluted earnings per share calculation, as its effect would be antidilutive. |
Subsequent Events Subsequent 39
Subsequent Events Subsequent Events (Tables) | 6 Months Ended |
Apr. 30, 2016 | |
Subsequent Events [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Due to the limited amount of time since the completion of the acquisition, the purchase price allocation was based on a preliminary valuation of the assets acquired and liabilities assumed and could change materially as the Company finalizes the fair values of the tangible and intangible assets acquired and liabilities assumed. The following table summarizes the preliminary allocation of the purchase price for the Ruckus acquisition (in thousands): Assets acquired: Cash and cash equivalents $ 59,714 Restricted cash 5,000 Short-term investments 166,934 Accounts receivable, net of allowance for doubtful accounts of $800 80,256 Inventories 64,000 Prepaid expenses and other current assets 9,185 Property and equipment, net 27,888 Identifiable intangible assets 422,000 Non-current deferred tax assets 70,944 Other assets 1,767 Total assets acquired 907,688 Liabilities assumed: Accounts payable 23,074 Accrued employee compensation 17,100 Deferred revenue 13,947 Other accrued liabilities 11,209 Non-current deferred revenue 10,420 Non-current deferred tax liability 172,265 Other non-current liabilities 3,274 Total liabilities assumed 251,289 Net assets acquired, excluding goodwill (a) 656,399 Total preliminary estimated purchase price (b) 1,245,090 Estimated goodwill (b) - (a) $ 588,691 |
Schedule of Intangible Assets Acquired as Part of Business Combination | Preliminary identified intangible assets and their respective useful lives are as follows (in thousands, except estimated useful life): Intangible Asset Approximate Fair Value Estimated Useful Life (in years) Trade name/trademark $ 48,000 12.50 Customer relationships 117,000 6.50 Developed technology 223,000 5.50 IPR&D (1) 34,000 N/A Total intangible assets $ 422,000 (1) IPR&D will be accounted for as an indefinite-lived intangible asset until the underlying projects are completed or abandoned. |
Schedule of Pro Forma Information | Consequently, actual results will differ from the unaudited pro forma financial information presented below (in thousands): Three Months Ended Six Months Ended April 30, May 2, April 30, May 2, Unaudited pro forma consolidated results: Pro forma revenues $ 623,143 $ 627,917 $ 1,296,807 $ 1,276,670 Pro forma net income $ 31,203 $ 60,324 $ 115,421 $ 88,107 |
Summary Of Significant Accoun40
Summary Of Significant Accounting Policies (Concentration of Risk Narrative)(Details) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2016customer | May. 02, 2015customer | Oct. 31, 2015customer | |
Concentration Risk | |||
Number of Financial Institutions | 5 | ||
Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk | |||
Concentration Risk, Percentage | 36.00% | ||
Number Of Customers Included In Concentration Disclosures | 2 | 1 | |
Customer Concentration Risk | Accounts Receivable | Major Customer One | |||
Concentration Risk | |||
Concentration Risk, Percentage | 20.00% | 17.00% | |
Customer Concentration Risk | Accounts Receivable | Major Customer Two | |||
Concentration Risk | |||
Concentration Risk, Percentage | 16.00% | ||
Customer Concentration Risk | Sales Revenue, Segment | |||
Concentration Risk | |||
Concentration Risk, Percentage | 30.00% | 49.00% | |
Number Of Customers Included In Concentration Disclosures | 2 | 4 | |
Customer Concentration Risk | Sales Revenue, Segment | Major Customer One | |||
Concentration Risk | |||
Concentration Risk, Percentage | 19.00% | 15.00% | |
Customer Concentration Risk | Sales Revenue, Segment | Major Customer Two | |||
Concentration Risk | |||
Concentration Risk, Percentage | 11.00% | 12.00% | |
Customer Concentration Risk | Sales Revenue, Segment | Major Customer Three | |||
Concentration Risk | |||
Concentration Risk, Percentage | 12.00% | ||
Customer Concentration Risk | Sales Revenue, Segment | Major Customer Four [Member] | |||
Concentration Risk | |||
Concentration Risk, Percentage | 11.00% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Business Acquisition [Line Items] | ||||
Acquisition and integration costs | $ 5,757 | $ 2,344 | $ 5,757 | $ 2,344 |
Acquisition Costs [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition and integration costs | 4,986 | 1,460 | 5,000 | 1,460 |
Integration Costs | ||||
Business Acquisition [Line Items] | ||||
Acquisition and integration costs | 771 | 800 | $ 800 | 800 |
Series of Individually Immaterial Business Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase Consideration Transferred | 96,100 | |||
Payments to Acquire Businesses, Gross | 95,500 | |||
Cash Acquired from Acquisition | 100 | |||
Other Consideration Transferred | $ 500 | |||
Series of Individually Immaterial Business Acquisitions [Member] | RSU Grant | ||||
Business Acquisition [Line Items] | ||||
Separately Recognized Transactions, Accounting Method | The RSUs are accounted for as stock-based compensation expense | |||
Separately Recognized Transaction, Expense Recognized | 400 | $ 1,000 | 300 | |
Series of Individually Immaterial Business Acquisitions [Member] | Cash Retention Award | ||||
Business Acquisition [Line Items] | ||||
Separately Recognized Transactions, Accounting Method | The cash awards are accounted for as employee compensation expense | |||
Separately Recognized Transaction, Expense Recognized | $ 1,200 | $ 2,500 | $ 400 |
Goodwill And Intangible Asset42
Goodwill And Intangible Assets (Schedule Of Goodwill Activity By Reportable Segment) (Details) $ in Thousands | 6 Months Ended | |
Apr. 30, 2016USD ($) | ||
Goodwill | ||
Goodwill, Gross, Beginning Balance | $ 1,746,375 | |
Accumulated impairment losses, Beginning Balance | (129,214) | |
Goodwill, Net, Beginning Balance | 1,617,161 | |
Acquisitions (1) | 4,625 | |
Goodwill, Tax and other adjustments | (5) | [1] |
Goodwill, Translation Adjustments | (90) | |
Goodwill, Gross, Ending Balance | 1,750,905 | |
Accumulated impairment losses, Ending Balance | (129,214) | |
Goodwill, Net, Ending Balance | 1,621,691 | |
Storage Area Networking (“SAN”) Products | ||
Goodwill | ||
Goodwill, Gross, Beginning Balance | 176,325 | |
Accumulated impairment losses, Beginning Balance | 0 | |
Goodwill, Net, Beginning Balance | 176,325 | |
Acquisitions (1) | 0 | |
Goodwill, Tax and other adjustments | (5) | [1] |
Goodwill, Translation Adjustments | 0 | |
Goodwill, Gross, Ending Balance | 176,320 | |
Accumulated impairment losses, Ending Balance | 0 | |
Goodwill, Net, Ending Balance | 176,320 | |
IP Networking Products | ||
Goodwill | ||
Goodwill, Gross, Beginning Balance | 1,414,634 | |
Accumulated impairment losses, Beginning Balance | (129,214) | |
Goodwill, Net, Beginning Balance | 1,285,420 | |
Acquisitions (1) | 4,625 | |
Goodwill, Tax and other adjustments | 0 | [1] |
Goodwill, Translation Adjustments | (90) | |
Goodwill, Gross, Ending Balance | 1,419,169 | |
Accumulated impairment losses, Ending Balance | (129,214) | |
Goodwill, Net, Ending Balance | 1,289,955 | |
Global Services | ||
Goodwill | ||
Goodwill, Gross, Beginning Balance | 155,416 | |
Accumulated impairment losses, Beginning Balance | 0 | |
Goodwill, Net, Beginning Balance | 155,416 | |
Acquisitions (1) | 0 | |
Goodwill, Tax and other adjustments | 0 | [1] |
Goodwill, Translation Adjustments | 0 | |
Goodwill, Gross, Ending Balance | 155,416 | |
Accumulated impairment losses, Ending Balance | 0 | |
Goodwill, Net, Ending Balance | $ 155,416 | |
[1] | The goodwill adjustments were primarily a result of tax benefits from the exercise of stock awards of acquired companies. |
Goodwill And Intangible Asset43
Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | Oct. 31, 2015 | |||
Intangible Assets | ||||
Gross Carrying Value | $ 91,330 | $ 74,570 | ||
Accumulated Amortization | 21,719 | 14,057 | ||
Net Carrying Value | $ 69,611 | $ 60,513 | ||
Weighted- Average Remaining Useful Life (In years) | 6 years 1 month 6 days | 6 years 6 months 18 days | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 15,110 | |||
Intangible Assets, Gross (Excluding Goodwill) | $ 91,330 | 89,680 | ||
Intangible assets, net | 69,611 | 75,623 | ||
Indefinite-lived Intangible Assets, Period Increase (Decrease) | 15,100 | |||
CostofFullyAmortizedIntangibleAssets | $ 1,000 | |||
Minimum [Member] | ||||
Intangible Assets | ||||
UsefulLifeofCompletedIPRD | 5 years | |||
Maximum [Member] | ||||
Intangible Assets | ||||
UsefulLifeofCompletedIPRD | 6 years | |||
In Process Research and Development [Member] | ||||
Intangible Assets | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | [1] | 15,110 | ||
Trade names | ||||
Intangible Assets | ||||
Gross Carrying Value | $ 1,090 | 1,090 | ||
Accumulated Amortization | 527 | 415 | ||
Net Carrying Value | $ 563 | $ 675 | ||
Weighted- Average Remaining Useful Life (In years) | 4 years 1 month 17 days | 4 years 4 months 10 days | ||
Core/developed technology (1) (2) | ||||
Intangible Assets | ||||
Gross Carrying Value | [2] | $ 57,290 | [1] | $ 40,530 |
Accumulated Amortization | [2] | 14,912 | [1] | 9,605 |
Net Carrying Value | [2] | $ 42,378 | [1] | $ 30,925 |
Weighted- Average Remaining Useful Life (In years) | [2] | 4 years | [1] | 3 years 5 months 26 days |
Patent portfolio license (3) | ||||
Intangible Assets | ||||
Gross Carrying Value | [3] | $ 7,750 | $ 7,750 | |
Accumulated Amortization | [3] | 1,399 | 849 | |
Net Carrying Value | [3] | $ 6,351 | $ 6,901 | |
Weighted- Average Remaining Useful Life (In years) | [3] | 17 years 5 months 26 days | 17 years 8 months 26 days | |
Customer relationships | ||||
Intangible Assets | ||||
Gross Carrying Value | $ 23,110 | $ 23,110 | ||
Accumulated Amortization | 3,982 | 2,484 | ||
Net Carrying Value | $ 19,128 | $ 20,626 | ||
Weighted- Average Remaining Useful Life (In years) | 6 years 8 months 16 days | 7 years 2 months 5 days | ||
Non-compete agreements | ||||
Intangible Assets | ||||
Gross Carrying Value | $ 1,050 | $ 1,050 | ||
Accumulated Amortization | 824 | 664 | ||
Net Carrying Value | $ 226 | $ 386 | ||
Weighted- Average Remaining Useful Life (In years) | 8 months 8 days | 1 year 2 months 1 day | ||
Patents with broader applications | ||||
Intangible Assets | ||||
Gross Carrying Value | $ 1,040 | $ 1,040 | ||
Accumulated Amortization | 75 | 40 | ||
Net Carrying Value | $ 965 | $ 1,000 | ||
Weighted- Average Remaining Useful Life (In years) | 13 years 10 months 17 days | 14 years 4 months 17 days | ||
[1] | Acquired IPR&D are intangible assets accounted for as indefinite-lived assets until the completion or abandonment of the associated research and development efforts. If the research and development efforts associated with the IPR&D are successfully completed, then the IPR&D intangible assets will be amortized over the estimated useful lives to be determined as of the date the efforts are completed. During the six months ended April 30, 2016, research and development efforts were completed on $15.1 million of the IPR&D intangible assets, and the completed IPR&D intangible assets are being amortized as Core/developed technology over the respective estimated useful lives of five and six years. | |||
[2] | During the six months ended April 30, 2016, $1.0 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet. | |||
[3] | The patent portfolio license was assigned an estimated useful life that reflects the Company’s consumption of the expected defensive benefits related to this license to certain patents. The method of amortization for the patent portfolio license reflects the Company’s estimate of the pattern in which these expected defensive benefits will be used by the Company and is primarily based on the mix of expiration patterns of the individual patents included in the license. |
Goodwill And Intangible Asset44
Goodwill And Intangible Assets (Schedule Of Amortization Of Intangible Assets Included On Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | ||
Amortization of Finite-Lived Intangible Assets [Line Items] | |||||
Amortization | $ 4,369 | $ 2,775 | $ 8,702 | $ 3,550 | |
Payments to Acquire Intangible Assets | 0 | 7,750 | |||
Cost of revenues | |||||
Amortization of Finite-Lived Intangible Assets [Line Items] | |||||
Amortization | 3,193 | 1,857 | 6,348 | 2,494 | |
Other Operating Income (Expense) | |||||
Amortization of Finite-Lived Intangible Assets [Line Items] | |||||
Amortization | 902 | 627 | 1,804 | 765 | |
General and administrative | |||||
Amortization of Finite-Lived Intangible Assets [Line Items] | |||||
Amortization | [1] | $ 274 | $ 291 | $ 550 | $ 291 |
[1] | The amortization is related to the $7.8 million of perpetual, non-exclusive license to certain patents purchased during the fiscal year ended October 31, 2015. |
Goodwill And Intangible Asset45
Goodwill And Intangible Assets (Schedule Of Estimated Future Amortization Of Intangible Assets) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2016 (remaining six months) | $ 8,979 | |
2,017 | 17,531 | |
2,018 | 13,012 | |
2,019 | 9,483 | |
2,020 | 8,394 | |
Thereafter | 12,212 | |
Total | $ 69,611 | $ 60,513 |
Balance Sheet Details (Schedule
Balance Sheet Details (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 17,357 | $ 18,788 |
Finished goods | 22,164 | 21,736 |
Inventory, Net | $ 39,521 | $ 40,524 |
Balance Sheet Details (Schedu47
Balance Sheet Details (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 | |
Property, Plant and Equipment | |||
Property and equipment, gross | $ 970,742 | $ 940,216 | |
Less: Accumulated depreciation and amortization | [1],[2] | (529,025) | (500,992) |
Total property and equipment, net | 441,717 | 439,224 | |
Computer equipment | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 20,046 | 14,820 | |
Software | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 70,991 | 67,625 | |
Engineering and other equipment | |||
Property, Plant and Equipment | |||
Property and equipment, gross | [1] | 424,059 | 407,342 |
Furniture and fixtures | |||
Property, Plant and Equipment | |||
Property and equipment, gross | [1] | 32,870 | 31,028 |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 37,016 | 33,986 | |
Land and building | |||
Property, Plant and Equipment | |||
Property and equipment, gross | $ 385,760 | $ 385,415 | |
[1] | Engineering and other equipment, furniture and fixtures, and accumulated depreciation and amortization include the following amounts under capital leases as of April 30, 2016, and October 31, 2015 (in thousands): April 30, 2016 October 31, 2015Cost$1,312 $1,312Accumulated depreciation(1,274) (857)Property and equipment, net, under capital leases$38 $455 | ||
[2] | The following table presents the depreciation of property and equipment included on the Company’s Condensed Consolidated Statements of Income (in thousands): Three Months Ended Six Months Ended April 30, 2016 May 2, 2015 April 30, 2016 May 2, 2015Depreciation expense$18,658 $17,898 $37,137 $36,697 |
Balance Sheet Details (Schedu48
Balance Sheet Details (Schedule of Capital Leased Assets) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Capital Leases | ||
Cost | $ 1,312 | $ 1,312 |
Accumulated depreciation | (1,274) | (857) |
Total | $ 38 | $ 455 |
Balance Sheet Details (Narrativ
Balance Sheet Details (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Balance Sheet Details [Abstract] | ||||
Depreciation expense | $ 18,658 | $ 17,898 | $ 37,137 | $ 36,697 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 | |
Assets | |||
Money market funds | [1] | $ 1,151,583 | $ 1,184,410 |
Derivative assets | 1,025 | 709 | |
Total assets measured at fair value | 1,152,608 | 1,185,119 | |
Liabilities | |||
Derivative liabilities | 739 | 1,125 | |
Total liabilities measured at fair value | 739 | 1,125 | |
Quoted Prices In Active Markets For Identical Instruments (Level 1) | |||
Assets | |||
Money market funds | [1] | 1,151,583 | 1,184,410 |
Derivative assets | 0 | 0 | |
Total assets measured at fair value | 1,151,583 | 1,184,410 | |
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Total liabilities measured at fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Money market funds | [1] | 0 | 0 |
Derivative assets | 1,025 | 709 | |
Total assets measured at fair value | 1,025 | 709 | |
Liabilities | |||
Derivative liabilities | 739 | 1,125 | |
Total liabilities measured at fair value | 739 | 1,125 | |
Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Money market funds | [1] | 0 | 0 |
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” on the Company’s Condensed Consolidated Balance Sheets. |
Restructuring and Other Costs51
Restructuring and Other Costs (Schedule of Restructuring and Other Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Restructuring Charges [Abstract] | ||||
Business Exit Costs | $ 0 | $ (637) | $ (566) | $ (637) |
Restructuring and Other Costs52
Restructuring and Other Costs (Schedule of Restructuring Reserve) (Details) $ in Thousands | 6 Months Ended |
Apr. 30, 2016USD ($) | |
Restructuring | |
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 | $ 2,329 |
Restructuring Charges | (566) |
Cash payments | (465) |
Translation adjustment | (4) |
Restructuring liabilities, Ending balance | 1,294 |
Restructuring Reserve Ending Balance | |
Current restructuring liabilities | 718 |
Non-current restructuring liabilities | $ 576 |
Fiscal 2013 Fourth Quarter Restructuring Plan | |
Restructuring | |
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 included a workforce reduction, as well as the cancellation of certain non-recurring engineering agreements and exits from certain leased facilities. The restructuring plan was substantially completed in the first quarter of fiscal year 2014. |
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 six months ended April 30, 2016, the Company reversed $0.6 million of charges related to estimated facilities lease losses due to a change in lease terms for a certain facility. |
Other Restructuring Plans [Member] | |
Restructuring | |
Restructuring and Related Activities, Description | 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 | $ 110 |
Restructuring Charges | 0 |
Cash payments | 0 |
Translation adjustment | 2 |
Restructuring liabilities, Ending balance | 112 |
Restructuring Reserve Ending Balance | |
Current restructuring liabilities | 112 |
Non-current restructuring liabilities | 0 |
Lease Loss Reserve and Related Costs | Fiscal 2013 Fourth Quarter Restructuring Plan | |
Restructuring Reserve Rollforward | |
Restructuring liabilities, Beginning balance | 1,811 |
Restructuring Charges | (566) |
Cash payments | (285) |
Translation adjustment | (6) |
Restructuring liabilities, Ending balance | 954 |
Restructuring Reserve Ending Balance | |
Current restructuring liabilities | 378 |
Non-current restructuring liabilities | 576 |
Lease Loss Reserve and Related Costs | Other Restructuring Plans [Member] | |
Restructuring Reserve Rollforward | |
Restructuring liabilities, Beginning balance | 408 |
Restructuring Charges | 0 |
Cash payments | (180) |
Translation adjustment | 0 |
Restructuring liabilities, Ending balance | 228 |
Restructuring Reserve Ending Balance | |
Current restructuring liabilities | 228 |
Non-current restructuring liabilities | $ 0 |
Borrowings (Schedule Of Long-Te
Borrowings (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2015 | Apr. 30, 2016 | Oct. 31, 2015 | |
Debt Instrument | |||
Long-term debt, gross | $ 875,101 | $ 875,298 | |
Unamortized discount | (70,675) | (79,196) | |
Unamortized debt issuance costs | (1,843) | (2,025) | |
Current portion of long-term debt | (101) | (298) | |
Long-term debt, net of current portion | $ 802,482 | 793,779 | |
Convertible Senior Unsecured 2020 Notes | |||
Debt Instrument | |||
Maturity | Jan. 1, 2020 | Jan. 1, 2020 | |
Stated annual interest rate | 1.375% | ||
Long-term debt, gross | $ 575,000 | $ 575,000 | |
Effective interest rate | 4.98% | 4.98% | |
Unamortized discount | $ (67,959) | $ (76,311) | |
Senior Unsecured 2023 Notes | |||
Debt Instrument | |||
Maturity | Jan. 15, 2023 | ||
Stated annual interest rate | 4.625% | ||
Long-term debt, gross | $ 300,000 | $ 300,000 | |
Effective interest rate | 4.83% | 4.83% | |
Capital Lease Obligations | |||
Debt Instrument | |||
Maturity | May 31, 2016 | ||
Stated annual interest rate | 4.625% | ||
Long-term debt, gross | $ 101 | $ 298 | |
Effective interest rate | 4.63% | 4.63% |
Borrowings (Schedule of Carryin
Borrowings (Schedule of Carrying Values of Liability and Equity Components) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Debt Instrument | ||
Long-term debt, gross | $ 875,101 | $ 875,298 |
Unamortized discount | (70,675) | (79,196) |
Convertible Senior Unsecured 2020 Notes | ||
Debt Instrument | ||
Long-term debt, gross | 575,000 | 575,000 |
Unamortized discount | (67,959) | (76,311) |
Long-term Debt | 507,041 | 498,689 |
Carrying amount of equity component | $ 63,164 | $ 70,765 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jan. 31, 2015USD ($)shares$ / shares | Apr. 30, 2016USD ($)$ / sharesshares | May. 02, 2015USD ($)$ / shares | Jan. 31, 2015USD ($) | Apr. 30, 2016USD ($)shares$ / shares | May. 02, 2015USD ($)$ / shares | Oct. 31, 2015USD ($) | Jan. 14, 2015USD ($)$ / sharesshares | Jan. 22, 2013USD ($) | Jan. 20, 2010USD ($) | |
Debt Instrument | ||||||||||
Proceeds from convertible notes | $ 0 | $ 565,656,000 | ||||||||
Cash dividends declared per share | $ / shares | $ 0.045 | $ 0.035 | $ 0.090 | $ 0.070 | ||||||
Purchase of convertible hedge | $ 0 | $ 86,135,000 | ||||||||
Proceeds from issuance of warrants | $ 0 | 51,175,000 | ||||||||
Senior Secured 2020 Notes | ||||||||||
Debt Instrument | ||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||||||
Debt Instrument, Redemption Price, Percentage | 103.438% | |||||||||
Irrevocable deposit | $ 322,200,000 | |||||||||
Repayment of principal amount | 300,000,000 | |||||||||
Call premium | 10,300,000 | |||||||||
Debt Instrument, Increase, Accrued Interest | $ 10,300,000 | |||||||||
Unpaid interest deposited to escrow | 1,600,000 | |||||||||
Call premium cost and original issue discount and debt issuance costs related to lenders that did not participate in refinancing | $ 20,400,000 | |||||||||
Convertible Senior Unsecured 2020 Notes | ||||||||||
Debt Instrument | ||||||||||
Debt Instrument, Face Amount | $ 575,000,000 | |||||||||
Proceeds from convertible notes | $ 565,700,000 | |||||||||
DiscountRateForFairValueOfLiabilityComponent | 4.57% | |||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 3 years 8 months | |||||||||
Long-Term Debt, Fair Value | $ 560,600,000 | $ 560,600,000 | $ 568,000,000 | |||||||
Maturity | Jan. 1, 2020 | Jan. 1, 2020 | ||||||||
Debt Instrument, Convertible, Conversion Ratio | 62.7746 | 63.0192 | ||||||||
Debt Instrument, Convertible, Number of Equity Instruments | shares | 36.1 | 36.2 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 15.87 | $ 15.87 | $ 15.93 | |||||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | $ 0 | |||||||||
Repurchase price of notes in case of change in control, percentage of face value | 100.00% | |||||||||
Shares Covered By Note Hedge | shares | 36.1 | |||||||||
Note Hedge, Exercise Price | $ / shares | $ 15.93 | $ 15.87 | ||||||||
Purchase of convertible hedge | $ 86,100,000 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 36.2 | 36.2 | 36.1 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 20.57 | $ 20.57 | $ 20.65 | |||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Apr. 1, 2020 | |||||||||
WarrantsMaturityPeriod | 60 days | |||||||||
Proceeds from issuance of warrants | $ 51,200,000 | |||||||||
Interest Expense, Debt [Abstract] | ||||||||||
Amortization of Debt Discount | $ 4,200,000 | $ 4,000,000 | $ 8,400,000 | 4,700,000 | ||||||
Interest Expense, Debt, Excluding Amortization | 2,000,000 | $ 2,000,000 | 4,000,000 | $ 2,300,000 | ||||||
Senior Unsecured 2023 Notes | ||||||||||
Debt Instrument | ||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||||||
Long-Term Debt, Fair Value | $ 291,700,000 | $ 291,700,000 | $ 293,900,000 | |||||||
Maturity | Jan. 15, 2023 | |||||||||
Repurchase price of notes in case of change in control, percentage of face value | 101.00% | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||
Trading Price Trigger One | Convertible Senior Unsecured 2020 Notes | ||||||||||
Debt Instrument | ||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | |||||||||
Trading Price Trigger Two | Convertible Senior Unsecured 2020 Notes | ||||||||||
Debt Instrument | ||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 5 | |||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 10 days | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Notes Price Trigger | 98.00% |
Borrowings (Schedule Of Debt Ma
Borrowings (Schedule Of Debt Maturities) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Long-term Debt, by Maturity [Abstract] | ||
2016 (remaining six months) | $ 101 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 575,000 | |
Thereafter | 300,000 | |
Long-term debt, gross | $ 875,101 | $ 875,298 |
Commitments And Contingencies57
Commitments And Contingencies (Schedule Of Accrued Liability For Estimated Future Warranty Costs) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Product Warranty Activity | ||
Beginning balance | $ 7,599 | $ 7,486 |
Liabilities accrued for warranties issued during the period | 1,876 | 2,302 |
Warranty claims paid and used during the period | (1,931) | (2,132) |
Changes in liability for pre-existing warranties during the period | (115) | (349) |
Ending balance | $ 7,429 | $ 7,307 |
Commitments And Contingencies58
Commitments And Contingencies (Purchase Commitment Narrative) (Details) (Details) - Inventory Purchase Commitment $ in Millions | Apr. 30, 2016USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 204.1 |
Purchase Commitment, Recognized Loss | $ 1.3 |
Derivative Instruments And He59
Derivative Instruments And Hedging Activities (Schedule Of Net Gains (Losses) Related To The Effective Portion Of Foreign Currency Derivatives) (Details) - Foreign Exchange Contract - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) related to the effective portion of foreign currency derivatives | $ (780) | $ (1,255) | $ (1,474) | $ (1,938) |
Cost of revenues | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) related to the effective portion of foreign currency derivatives | (66) | (328) | (160) | (464) |
Research and development | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) related to the effective portion of foreign currency derivatives | (427) | (32) | (626) | (67) |
Sales and marketing | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) related to the effective portion of foreign currency derivatives | (270) | (870) | (644) | (1,324) |
General and administrative | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) related to the effective portion of foreign currency derivatives | $ (17) | $ (25) | $ (44) | $ (83) |
Derivative Instruments And He60
Derivative Instruments And Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Maximum derivative instrument maturity period | 15 months | |||
Foreign Currency Transaction [Abstract] | ||||
Foreign currency transaction gains (losses) | $ (0.3) | $ 0.1 | $ (0.6) | $ (0.9) |
Derivatives Designated As Hedging Instruments | Other Current Assets [Member] | ||||
Derivative Instruments, Gain (Loss) | ||||
Gross unrealized gain positions | 1 | 1 | ||
Derivatives Designated As Hedging Instruments | Other Current Liabilities [Member] | ||||
Derivative Instruments, Gain (Loss) | ||||
Gross unrealized loss positions | $ (0.7) | $ (0.7) |
Derivative Instruments And He61
Derivative Instruments And Hedging Activities (Schedule Of Total Gross Notional Amounts, Presented By Currency) (Details) - Derivatives Designated As Hedging Instruments - USD ($) $ in Thousands | Apr. 30, 2016 | Oct. 31, 2015 |
Derivative | ||
Total gross notional amounts, presented by currency | $ 85,032 | $ 169,886 |
United Kingdom, Pounds | ||
Derivative | ||
Total gross notional amounts, presented by currency | 21,936 | 46,330 |
Euro Member Countries, Euro | ||
Derivative | ||
Total gross notional amounts, presented by currency | 21,311 | 40,961 |
India, Rupees | ||
Derivative | ||
Total gross notional amounts, presented by currency | 17,668 | 35,647 |
China, Yuan Renminbi | ||
Derivative | ||
Total gross notional amounts, presented by currency | 7,418 | 15,129 |
Singapore, Dollars | ||
Derivative | ||
Total gross notional amounts, presented by currency | 6,943 | 13,745 |
Japan, Yen | ||
Derivative | ||
Total gross notional amounts, presented by currency | 4,985 | 8,809 |
Switzerland, Francs | ||
Derivative | ||
Total gross notional amounts, presented by currency | $ 4,771 | $ 9,265 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense Included In Line Items Of Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Total stock-based compensation expense | $ 24,789 | $ 16,075 | $ 48,833 | $ 40,157 |
Cost of revenues | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Total stock-based compensation expense | 3,531 | 1,986 | 6,436 | 5,802 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Total stock-based compensation expense | 5,123 | 3,080 | 10,599 | 8,013 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Total stock-based compensation expense | 11,052 | 7,207 | 22,130 | 17,050 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Total stock-based compensation expense | $ 5,083 | $ 3,802 | $ 9,668 | $ 9,292 |
Stock-Based Compensation (Sto63
Stock-Based Compensation (Stock-Based Compensation Expense By Grant Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock-based compensation expense | $ 24,789 | $ 16,075 | $ 48,833 | $ 40,157 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock-based compensation expense | 708 | 536 | 1,437 | 1,892 |
RSUs, including restricted stock units with market conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock-based compensation expense | 20,589 | 11,317 | 40,382 | 29,251 |
Employee stock purchase plan (“ESPP”) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock-based compensation expense | $ 3,492 | $ 4,222 | $ 7,014 | $ 9,014 |
Stock-Based Compensation (Sto64
Stock-Based Compensation (Stock-Based Compensation, Unrecognized Compensation Expense And Weighted-Average Period) (Details) $ in Thousands | 6 Months Ended |
Apr. 30, 2016USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Unrecognized Compensation Expense | $ 1,414 |
Weighted-Average Period (in years) | 10 months 28 days |
RSUs, including restricted stock units with market conditions | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Unrecognized Compensation Expense | $ 109,208 |
Weighted-Average Period (in years) | 1 year 9 months 25 days |
Employee stock purchase plan (“ESPP”) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Unrecognized Compensation Expense | $ 6,518 |
Weighted-Average Period (in years) | 1 year 11 days |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Compensation, Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock options, Granted | 0 | 1,117 |
Stock options, Weighted-Average Grant Date Fair Value (dollars per share) | $ 0 | $ 3.09 |
Stock options, Exercises in Period, Total Intrinsic Value | $ 1.1 | $ 2 |
RSUs, including restricted stock units with market conditions | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
RSUs, Granted | 4,181 | 5,463 |
RSUs, Weighted-Average Grant Date Fair Value (dollars per share) | $ 8.13 | $ 10.98 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Schedule of Dividends Payable) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2016 | Jan. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Dividends Payable [Line Items] | |||||
Cash dividends declared per share | $ 0.045 | $ 0.035 | $ 0.090 | $ 0.070 | |
Payments of Ordinary Dividends, Common Stock | $ 36,445 | $ 29,854 | |||
Common Stock | |||||
Dividends Payable [Line Items] | |||||
Dividends Payable, Date Declared | Feb. 16, 2016 | Nov. 22, 2015 | |||
Cash dividends declared per share | $ 0.045 | ||||
Dividends Payable, Date of Record | Mar. 10, 2016 | Dec. 10, 2015 | |||
Payments of Ordinary Dividends, Common Stock | $ 18,016 | $ 18,429 | |||
Dividends Payable, Date to be Paid | Apr. 4, 2016 | Jan. 4, 2016 |
Stockholders' Equity Stockhol67
Stockholders' Equity Stockholders' Equity (Details) | 6 Months Ended |
Apr. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note, Derivative Transactions Connected with Contingently Convertible Securities | In connection with the issuance of the 2020 Convertible Notes, the Company entered into convertible note hedge and warrant transactions with certain financial institutions with respect to its common stock. See Note 8, “Borrowings,” of the Notes to Condensed Consolidated Financial Statements for further discussion. |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Comprehensive Income (Loss) Tax Effects) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | ||
Unrealized gains (losses) on cash flow hedges, before tax | |||||
Change in unrealized gains and losses, foreign exchange contracts, before tax | $ 2,254 | $ (17) | $ (342) | $ (2,197) | |
Net gains and losses reclassified into earnings, foreign exchange contracts, before tax | [1] | 780 | 1,255 | 1,474 | 1,938 |
Net unrealized losses on cash flow hedges, before tax | 3,034 | 1,238 | 1,132 | (259) | |
Foreign currency translation adjustments, before tax | |||||
Foreign currency translation adjustments, before tax | 2,070 | (1,068) | (133) | (5,289) | |
Total other comprehensive loss, before tax | 5,104 | 170 | 999 | (5,548) | |
Unrealized gains (losses) on cash flow hedges, tax | |||||
Change in unrealized gains and losses, foreign exchange contracts, tax | (290) | (126) | 6 | 279 | |
Net gains and losses reclassified into earnings, foreign exchange contracts, tax | [1] | (56) | (146) | (124) | (225) |
Net unrealized losses on cash flow hedges, tax | (346) | (272) | (118) | 54 | |
Foreign currency translation adjustments, tax | |||||
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 | |
Total other comprehensive loss, tax | (346) | (272) | (118) | 54 | |
Unrealized gains (losses) on cash flow hedges, net of tax | |||||
Change in unrealized gains and losses, foreign exchange contracts, net of tax | 1,964 | (143) | (336) | (1,918) | |
Net gains and losses reclassified into earnings, foreign exchange contracts, net of tax | [1] | 724 | 1,109 | 1,350 | 1,713 |
Net unrealized gains (losses) on cash flow hedges | 2,688 | 966 | 1,014 | (205) | |
Foreign currency translation adjustments, net of tax | |||||
Foreign currency translation adjustments, net of tax | 2,070 | (1,068) | (133) | (5,289) | |
Total other comprehensive income (loss) | $ 4,758 | $ (102) | $ 881 | $ (5,494) | |
[1] | For classification of amounts reclassified from accumulated other comprehensive loss into earnings as reported on the Company’s Condensed Consolidated Statements of Income, see Note 10, “Derivative Instruments and Hedging Activities,” of the Notes to Condensed Consolidated Financial Statements. |
Stockholders' Equity (Schedul69
Stockholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2016 | May. 02, 2015 | |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI, Net of Tax, Beginning Balance | $ (25,002) | $ (18,814) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ||
Change in unrealized gains and losses | (469) | (7,207) |
Net gains and losses reclassified into earnings | 1,350 | 1,713 |
Net current-period other comprehensive income (loss) | 881 | (5,494) |
AOCI, Net of Tax, Ending Balance | (24,121) | (24,308) |
Losses on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) | ||
AOCI, Net of Tax, Beginning Balance | (1,539) | (1,907) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ||
Change in unrealized gains and losses | (336) | (1,918) |
Net gains and losses reclassified into earnings | 1,350 | 1,713 |
Net current-period other comprehensive income (loss) | 1,014 | (205) |
AOCI, Net of Tax, Ending Balance | (525) | (2,112) |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) | ||
AOCI, Net of Tax, Beginning Balance | (23,463) | (16,907) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ||
Change in unrealized gains and losses | (133) | (5,289) |
Net gains and losses reclassified into earnings | 0 | 0 |
Net current-period other comprehensive income (loss) | (133) | (5,289) |
AOCI, Net of Tax, Ending Balance | $ (23,596) | $ (22,196) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 6 Months Ended |
Apr. 30, 2016USD ($) | |
Current Income Tax Expense (Benefit), Continuing Operations | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
Income Tax Contingency | |
Unrecognized Tax Benefits | $ 142.1 |
Amount of unrecognized tax benefits that could affect the effect tax rate | 102.5 |
Minimum [Member] | |
Income Tax Contingency | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 0 |
Maximum [Member] | |
Income Tax Contingency | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 19 |
Segment Information (Schedule O
Segment Information (Schedule Of Financial Information By Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Segment Reporting Information | ||||
Net revenues | $ 523,306 | $ 546,575 | $ 1,097,590 | $ 1,122,814 |
Service | 95,113 | 88,332 | 188,230 | 178,333 |
Cost of revenues | 172,995 | 174,366 | 358,464 | 360,922 |
Gross margin | 350,311 | 372,209 | 739,126 | 761,892 |
Storage Area Networking (“SAN”) Products | ||||
Segment Reporting Information | ||||
Net revenues | 296,627 | 313,512 | 643,685 | 666,911 |
Cost of revenues | 71,972 | 73,768 | 153,176 | 159,493 |
Gross margin | 224,655 | 239,744 | 490,509 | 507,418 |
IP Networking Products | ||||
Segment Reporting Information | ||||
Net revenues | 131,566 | 144,731 | 265,675 | 277,570 |
Cost of revenues | 60,236 | 63,844 | 123,129 | 128,045 |
Gross margin | 71,330 | 80,887 | 142,546 | 149,525 |
Global Services | ||||
Segment Reporting Information | ||||
Net revenues | 95,113 | 88,332 | 188,230 | 178,333 |
Cost of revenues | 40,787 | 36,754 | 82,159 | 73,384 |
Gross margin | $ 54,326 | $ 51,578 | $ 106,071 | $ 104,949 |
Segment Information Narrative (
Segment Information Narrative (Details) | 6 Months Ended |
Apr. 30, 2016segments | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable operating segments | 3 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule Of Calculation Of Basic And Diluted Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | Jan. 14, 2015 | ||
Earnings Per Share, Basic | ||||||
Net income | $ 43,085 | $ 77,040 | $ 136,731 | $ 164,307 | ||
Weighted-average shares used in computing basic net income per share | 400,554 | 420,718 | 404,228 | 424,627 | ||
Net income per share—basic | $ 0.11 | $ 0.18 | $ 0.34 | $ 0.39 | ||
Earnings Per Share, Diluted | ||||||
Net income | $ 43,085 | $ 77,040 | $ 136,731 | $ 164,307 | ||
Weighted-average shares used in computing diluted net income per share | 408,748 | 433,234 | 411,917 | 436,195 | ||
Net income per share—diluted | $ 0.11 | $ 0.18 | $ 0.33 | $ 0.38 | ||
Weighted Average Number of Shares Outstanding Reconciliation | ||||||
Weighted-average shares used in computing basic net income per share | 400,554 | 420,718 | 404,228 | 424,627 | ||
Dilutive potential common shares in the form of stock options | 1,428 | 1,826 | 1,380 | 1,780 | ||
Dilutive potential common shares in the form of other share-based awards | 6,766 | 10,690 | 6,309 | 9,788 | ||
Weighted-average shares used in computing diluted net income per share | 408,748 | 433,234 | 411,917 | 436,195 | ||
Stock options | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||
Antidilutive potential common shares | [1] | 1,374 | 1,117 | 1,624 | 847 | |
Other share-based awards | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||
Antidilutive potential common shares | [1] | 316 | 0 | 650 | 0 | |
Convertible Senior Unsecured 2020 Notes | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||
Debt Instrument, Convertible, Conversion Price | $ 15.87 | $ 15.87 | $ 15.93 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 20.57 | $ 20.57 | $ 20.65 | |||
Convertible Senior Unsecured 2020 Notes | Warrant | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||
Antidilutive potential common shares | [1],[2] | 36,240 | 36,095 | 36,220 | 21,618 | |
[1] | These amounts are excluded from the computation of diluted net income per share. | |||||
[2] | In connection with the issuance of the 2020 Convertible Notes, the Company entered into convertible note hedge and warrant transactions as described in Note 8, “Borrowings.” The 2020 Convertible Notes have no impact on diluted earnings per share until the average quarterly price of the Company’s common stock exceeds the adjusted conversion price of $15.87 per share. If the common stock price exceeds this adjusted conversion price, then, prior to conversion, the Company will calculate the effect of the additional shares that may be issued using the treasury stock method. If the average price of the Company’s common stock exceeds $20.57 per share for a quarterly period, the Company’s weighted-average shares used in computing diluted net income per share will be impacted by the effect of the additional potential shares that may be issued related to the warrants using the treasury stock method. The convertible note hedge is not considered for purposes of the diluted earnings per share calculation, as its effect would be antidilutive. |
Subsequent Events Subsequent 74
Subsequent Events Subsequent Events (Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 30, 2016 | May. 27, 2016 | Apr. 30, 2016 | Oct. 31, 2015 | |
Business Acquisition [Line Items] | ||||
Accrued employee compensation | $ 133,511 | $ 142,075 | ||
Non-current deferred revenue | 74,434 | 72,065 | ||
Goodwill | $ 1,621,691 | $ 1,617,161 | ||
Ruckus | ||||
Business Acquisition [Line Items] | ||||
Total preliminary estimated purchase price | $ 1,200,000 | |||
Ruckus | Ruckus | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 59,714 | |||
Restricted cash | 5,000 | |||
Short-term investments | 166,934 | |||
Accounts receivable | 80,256 | |||
Inventories | 64,000 | |||
Prepaid expenses and other current assets | 9,185 | |||
Property and equipment, net | 27,888 | |||
Identifiable intangible assets | 422,000 | |||
Non-current deferred tax assets | 70,944 | |||
Other assets | 1,767 | |||
Total assets acquired | 907,688 | |||
Accounts payable | 23,074 | |||
Accrued employee compensation | 17,100 | |||
Deferred revenue | 13,947 | |||
Other accrued liabilities | 11,209 | |||
Non-current deferred revenue | 10,420 | |||
Non-current deferred tax liability | 172,265 | |||
Other non-current liabilities | 3,274 | |||
Total liabilities assumed | 251,289 | |||
Net assets acquired | 656,399 | |||
Total preliminary estimated purchase price | $ 1,245,090 | |||
Goodwill | $ 588,691 |
Subsequent Events Subsequent 75
Subsequent Events Subsequent Events (Schedule of Intangible Assets Acquired as Part of Business Combination) (Details) - Ruckus - Ruckus - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 30, 2016 | May. 27, 2016 | ||
Acquired Intangible Assets [Line Items] | |||
Identifiable intangible assets | $ 422,000 | ||
Trade names | |||
Acquired Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 48,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years 6 months | ||
Customer relationships | |||
Acquired Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 117,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 6 months | ||
Core/developed technology | |||
Acquired Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 223,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 6 months | ||
In Process Research and Development [Member] | |||
Acquired Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets Acquired | [1] | $ 34,000 | |
[1] | IPR&D will be accounted for as an indefinite-lived intangible asset until the underlying projects are completed or abandoned. |
Subsequent Events Subsequent 76
Subsequent Events Subsequent Events (Schedule of Pro Form Information) (Details) - Ruckus - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2016 | May. 02, 2015 | Apr. 30, 2016 | May. 02, 2015 | |
Pro Forma Revenue | $ 623,143 | $ 627,917 | $ 1,296,807 | $ 1,276,670 |
Pro Forma Net Income | $ 31,203 | $ 60,324 | $ 115,421 | $ 88,107 |
Subsequent Events Subsequent 77
Subsequent Events Subsequent Events (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |
Jul. 30, 2016USD ($) | Jul. 30, 2016 | May. 27, 2016USD ($)$ / shares | |
Ruckus | |||
Subsequent Event [Line Items] | |||
Business Acquisition, Share Price | $ / shares | $ 6.45 | ||
Business Acquisition Shares | 0.75 | ||
Total preliminary estimated purchase price | $ 1,200,000,000 | ||
Payments to Acquire Businesses, Gross | $ 600,000,000 | ||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 600,000,000 | ||
Separately Recognized Transaction, Unamortized Stock Compensation Expense | 47,300,000 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | ||
Credit Agreement | Line of Credit | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Collateral | The Company’s obligations under the Credit Agreement are and will be fully and unconditionally guaranteed by certain of the Company’s existing and subsequently acquired or organized direct and indirect subsidiaries. The Company’s obligations under the Credit Agreement are unsecured but will be required to be secured upon the occurrence of certain events, including certain credit rating agency downgrades or the incurrence of certain indebtedness in excess of $600 million, subject to certain exceptions. | ||
Credit Agreement | Term Loan | Line of Credit | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 800,000,000 | ||
Line of Credit Facility, Amount Outstanding | $ 800,000,000 | ||
Debt Instrument, Term | 5 years | ||
LIBOR Interest Margin | 1.50% | ||
Credit Agreement | Revolving Credit Facility | Line of Credit | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | ||
Line of Credit Facility, Amount Outstanding | $ 0 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
Credit Agreement | Revolving Credit Facility | Line of Credit | Minimum [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Credit Agreement | Revolving Credit Facility | Line of Credit | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% |