
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 months ended October 25, 2014 and October 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
	October 25, 2014			October 26, 2013
Revenue:
Americas	$	7,501		$	7,316
EMEA	3,002			2,933
APJC	1,742			1,836
Total	$	12,245		$	12,085
Gross margin:
Americas	$	4,810		$	4,650
EMEA	1,915			1,888
APJC	1,025			1,079
Segment total	7,750			7,617
Unallocated corporate items	(417		)	(210		)
Total	$	7,333		$	7,407

Revenue in the United States was $6.6 billion and $6.4 billion for the three months ended October 25, 2014 and October 26, 2013, 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, Collaboration, Service Provider Video, 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):



	Three Months Ended
	October 25, 2014		October 26, 2013
Revenue:
Switching	$	3,846	$	3,740
NGN Routing	1,949		2,026
Collaboration	949		1,051
Service Provider Video	871		987
Data Center	693		601
Wireless	605		547
Security	455		365
Other	67		80
Product	9,435		9,397
Service	2,810		2,688
Total	$	12,245	$	12,085

The Company has made certain reclassifications to the product revenue amounts for prior periods 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 25, 2014 and July 26, 2014 were attributable to its U.S. operations. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $48.3 billion and $47.4 billion as of October 25, 2014 and July 26, 2014, respectively, and the remaining $3.8 billion and $4.7 billion at the respective period ends were 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 25, 2014		July 26, 2014
Property and equipment, net:
United States	$	2,687	$	2,697
International	546		555
Total	$	3,233	$	3,252