Segment Information And Major Customers

9 Months Ended

Apr. 26, 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 nine months ended April 26, 2014 and April 27, 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						Nine Months Ended
	April 26, 2014			April 27, 2013			April 26, 2014			April 27, 2013
Revenue:
Americas	$	6,689		$	7,127		$	20,465		$	21,286
EMEA	3,068			3,131			8,897			9,065
APJC	1,788			1,958			5,423			5,839
Total	$	11,545		$	12,216		$	34,785		$	36,190
Gross margin:
Americas	4,196			4,460			12,823			13,341
EMEA	1,967			2,044			5,725			5,850
APJC	1,076			1,197			3,148			3,494
Segment total	7,239			7,701			21,696			22,685
Unallocated corporate items	(233		)	(190		)	(1,332		)	(592		)
Total	$	7,006		$	7,511		$	20,364		$	22,093

Revenue in the United States, which is included in the Americas, was $5.9 billion and $6.1 billion for the three months ended April 26, 2014 and April 27, 2013, respectively, and was $17.9 billion and $18.3 billion for the nine months ended April 26, 2014 and April 27, 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				Nine Months Ended
	April 26, 2014		April 27, 2013		April 26, 2014		April 27, 2013
Revenue:
Switching	$	3,381	$	3,601	$	10,406	$	10,962
NGN Routing	1,935		2,145		5,719		6,147
Service Provider Video	961		1,299		2,905		3,670
Collaboration	892		1,013		2,800		2,978
Data Center	662		515		1,868		1,480
Wireless	553		539		1,604		1,573
Security	361		327		1,119		1,002
Other	75		120		219		481
Product	8,820		9,559		26,640		28,293
Service	2,725		2,657		8,145		7,897
Total	$	11,545	$	12,216	$	34,785	$	36,190

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 April 26, 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 $45.9 billion and $40.4 billion as of April 26, 2014 and July 27, 2013, respectively, and the remaining $4.6 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):

	April 26, 2014		July 27, 2013
Property and equipment, net:
United States	$	2,718	$	2,780
International	592		542
Total	$	3,310	$	3,322