Segment Information And Major Customers

3 Months Ended

Oct. 26, 2013

Segment Reporting [Abstract]

Segment Information and Major Customers

17. Segment Information and Major Customers

(a)  Revenue 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 months ended October 26, 2013 and October 27, 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
	October 26, 2013			October 27, 2012
Revenue:
Americas	$	7,316		$	7,023
EMEA	2,933			2,841
APJC	1,836			2,012
Total	$	12,085		$	11,876
Gross margin:
Americas	4,650			4,468
EMEA	1,888			1,798
APJC	1,079			1,176
Segment total	7,617			7,442
Unallocated corporate items	(210		)	(203		)
Total	$	7,407		$	7,239

Revenue in the United States, which is included in the Americas, was $6.4 billion and $6.1 billion for the three months ended October 26, 2013 and October 27, 2012, respectively.

(b) Revenue 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, Wireless, Data Center, 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 following table presents revenue for groups of similar products and services (in millions):

	Three Months Ended
	October 26, 2013		October 27, 2012
Revenue:
Switching	$	3,754	$	3,629
NGN Routing	2,043		2,055
Collaboration	1,027		1,020
Service Provider Video	987		1,149
Data Center	601		417
Wireless	540		499
Security	365		338
Other	80		190
Product	9,397		9,297
Service	2,688		2,579
Total	$	12,085	$	11,876

The Company has made certain reclassifications to the prior period amounts to conform to the current period’s presentation.

(c) Additional Segment Information

The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of October 26, 2013 and July 27, 2013 were attributable to its U.S. operations. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $42.0 billion and $40.4 billion as of October 26, 2013 and July 27, 2013, respectively, and the remaining $6.2 billion and $10.2 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):

	October 26, 2013		July 27, 2013
Property and equipment, net:
United States	$	2,687	$	2,780
International	586		542
Total	$	3,273	$	3,322