Segment Information And Major Customers

6 Months Ended

Jan. 26, 2013

Segment Reporting [Abstract]

Segment Information and Major Customers

16. Segment Information and Major Customers

(a) Net Sales and Gross Margin by Segment

The Company conducts business globally and is primarily managed on a geographic basis consisting of three segments: the Americas; EMEA; and APJC. The Company's management makes financial decisions and allocates resources based on the information it receives from its internal management system. Sales are attributed to a segment based on the ordering location of the customer. The Company does not allocate research and development, sales and marketing, or general and administrative expenses to its segments in this internal management system because management does not include the information in its measurement of the performance of the operating segments. In addition, the Company does not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, impacts to cost of sales from purchase accounting adjustments to inventory, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in its measurement of the performance of the operating segments.

Summarized financial information by segment for the three and six months ended January 26, 2013 and January 28, 2012, based on the Company's internal management system and as utilized by the Company's Chief Operating Decision Maker ("CODM"), is as follows (in millions):

	Three Months Ended						Six Months Ended
	January 26, 2013			January 28, 2012			January 26, 2013			January 28, 2012
Net sales:
Americas	$	7,136		$	6,552		$	14,159		$	13,140
EMEA	3,093			3,250			5,934			6,095
APJC	1,869			1,725			3,881			3,548
Total	$	12,098		$	11,527		$	23,974		$	22,783
Gross margin:
Americas	4,413			4,106			8,881			8,266
EMEA	2,008			2,095			3,806			3,849
APJC	1,121			992			2,297			2,100
Segment total	7,542			7,193			14,984			14,215
Unallocated corporate items	(199		)	(128		)	(402		)	(260		)
Total	$	7,343		$	7,065		$	14,582		$	13,955

Net sales in the United States, which is included in the Americas, were $6.1 billion and $5.6 billion for the three months ended January 26, 2013 and January 28, 2012, respectively, and were $12.2 billion and $11.2 billion for the six months ended January 26, 2013 and January 28, 2012, respectively.

(b) Net Sales for Groups of Similar Products and Services

The Company designs, manufactures, and sells Internet Protocol ("IP")-based networking and other products related to the communications and IT industry and provides services associated with these products and their use. The Company groups its products and technologies into the following categories: Switching, NGN Routing, Service Provider Video, Collaboration, Data Center, Wireless, Security, and Other Products. These products, primarily integrated by Cisco IOS Software, link geographically dispersed local-area networks ("LANs"), metropolitan-area networks ("MANs"), and wide-area networks ("WANs"). The Company has made certain reclassifications to the prior period amounts to conform to the current period's presentation.

The following table presents net sales for groups of similar products and services (in millions):

	Three Months Ended				Six Months Ended
	January 26, 2013		January 28, 2012		January 26, 2013		January 28, 2012
Net sales:
Switching	$	3,724	$	3,621	$	7,340	$	7,308
NGN Routing	1,946		2,068		3,998		4,162
Service Provider Video	1,220		1,014		2,368		1,897
Collaboration	945		1,060		1,965		2,168
Data Center	548		333		965		592
Wireless	520		409		1,006		762
Security	336		333		674		652
Other	198		280		418		529
Product	9,437		9,118		18,734		18,070
Service	2,661		2,409		5,240		4,713
Total	$	12,098	$	11,527	$	23,974	$	22,783

(c) Additional Segment Information

The majority of the Company's assets, excluding cash and cash equivalents and investments, as of January 26, 2013 and July 28, 2012 were attributable to its U.S. operations. The Company's total cash and cash equivalents and investments held by various foreign subsidiaries were $39.4 billion and $42.5 billion as of January 26, 2013 and July 28, 2012, respectively, and the remaining $7.0 billion and $6.2 billion at the respective period ends was available in the United States.

Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in millions):

	January 26, 2013		July 28, 2012
Property and equipment, net:
United States	$	2,808	$	2,842
International	595		560
Total	$	3,403	$	3,402