
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 fiscal 2014, 2013, and 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):



Years Ended	July 26, 2014			July 27, 2013			July 28, 2012
Revenue:
Americas	$	27,781		$	28,639		$	26,501
EMEA	12,006			12,210			12,075
APJC	7,355			7,758			7,485
Total	$	47,142		$	48,607		$	46,061
Gross margin:
Americas	$	17,379		$	17,887		$	16,639
EMEA	7,700			7,876			7,605
APJC	4,252			4,637			4,519
Segment total	29,331			30,400			28,763
Unallocated corporate items	(1,562		)	(960		)	(554		)
Total	$	27,769		$	29,440		$	28,209

Revenue in the United States was $24.3 billion, $24.6 billion, and $22.6 billion for fiscal 2014, 2013, and 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, 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 following table presents revenue for groups of similar products and services (in millions):



Years Ended	July 26, 2014		July 27, 2013		July 28, 2012
Revenue:
Switching	$	14,056	$	14,767	$	14,634
NGN Routing	7,662		8,243		8,395
Service Provider Video	3,969		4,855		3,869
Collaboration	3,734		3,956		4,194
Data Center	2,640		2,074		1,298
Wireless	2,265		2,228		1,697
Security	1,566		1,348		1,341
Other	280		558		898
Product	36,172		38,029		36,326
Service	10,970		10,578		9,735
Total	$	47,142	$	48,607	$	46,061

The Company has made certain reclassifications to the product revenue amounts for prior years to conform to the current year’s presentation.


(c)	Additional Segment Information

The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of July 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 $47.4 billion and $40.4 billion as of July 26, 2014 and July 27, 2013, respectively, and the remaining $4.7 billion and $10.2 billion at the respective fiscal year ends were available in the United States. In fiscal 2014, 2013, and 2012, no single customer accounted for 10% or more of the Company’s revenue.

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):



	July 26, 2014		July 27, 2013		July 28, 2012
Property and equipment, net:
United States	$	2,697	$	2,780	$	2,842
International	555		542		560
Total	$	3,252	$	3,322	$	3,402