Segment Information And Major Customers

6 Months Ended

Jan. 25, 2014

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, significant litigation and other contingencies, 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 25, 2014 and January 26, 2013, 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 25, 2014			January 26, 2013			January 25, 2014			January 26, 2013
Revenue:
Americas	$	6,460		$	7,136		$	13,776		$	14,159
EMEA	2,896			3,093			5,829			5,934
APJC	1,799			1,869			3,635			3,881
Total	$	11,155		$	12,098		$	23,240		$	23,974
Gross margin:
Americas	3,977			4,413			8,627			8,881
EMEA	1,870			2,008			3,758			3,806
APJC	993			1,121			2,072			2,297
Segment total	6,840			7,542			14,457			14,984
Unallocated corporate items	(889		)	(199		)	(1,099		)	(402		)
Total	$	5,951		$	7,343		$	13,358		$	14,582

Revenue in the United States, which is included in the Americas, was $5.6 billion and $6.1 billion for the three months ended January 25, 2014 and January 26, 2013, respectively, and was $12.0 billion and $12.2 billion for the six months ended January 25, 2014 and January 26, 2013.

(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				Six Months Ended
	January 25, 2014		January 26, 2013		January 25, 2014		January 26, 2013
Revenue:
Switching	$	3,271	$	3,732	$	7,025	$	7,361
NGN Routing	1,741		1,947		3,784		4,002
Service Provider Video	957		1,222		1,944		2,371
Collaboration	881		945		1,908		1,965
Data Center	605		548		1,206		965
Wireless	511		535		1,051		1,034
Security	393		337		758		675
Other	64		171		144		361
Product	8,423		9,437		17,820		18,734
Service	2,732		2,661		5,420		5,240
Total	$	11,155	$	12,098	$	23,240	$	23,974

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 January 25, 2014 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 $43.8 billion and $40.4 billion as of January 25, 2014 and July 27, 2013, respectively, and the remaining $3.3 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):

	January 25, 2014		July 27, 2013
Property and equipment, net:
United States	$	2,651	$	2,780
International	583		542
Total	$	3,234	$	3,322