
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 2015, 2014, and 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):



Years Ended	July 25, 2015			July 26, 2014			July 27, 2013
Revenue:
Americas	$	29,655		$	27,781		$	28,639
EMEA	12,322			12,006			12,210
APJC	7,184			7,355			7,758
Total	$	49,161		$	47,142		$	48,607
Gross margin:
Americas	$	18,670		$	17,379		$	17,887
EMEA	7,705			7,700			7,876
APJC	4,307			4,252			4,637
Segment total	30,682			29,331			30,400
Unallocated corporate items	(1,001		)	(1,562		)	(960		)
Total	$	29,681		$	27,769		$	29,440

Revenue in the United States was $26.0 billion, $24.3 billion, and $24.6 billion for fiscal 2015, 2014, and 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):



Years Ended	July 25, 2015		July 26, 2014		July 27, 2013
Revenue:
Switching	$	14,741	$	14,001	$	14,711
NGN Routing	7,704		7,609		8,168
Collaboration	4,000		3,815		4,057
Service Provider Video	3,555		3,969		4,855
Data Center	3,220		2,640		2,074
Wireless	2,542		2,293		2,257
Security	1,747		1,566		1,348
Other	241		279		559
Product	37,750		36,172		38,029
Service	11,411		10,970		10,578
Total	$	49,161	$	47,142	$	48,607

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 25, 2015 and July 26, 2014 was attributable to its U.S. operations. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $53.4 billion and $47.4 billion as of July 25, 2015 and July 26, 2014, respectively, and the remaining $7.0 billion and $4.7 billion at the respective fiscal year ends were available in the United States. In fiscal 2015, 2014, and 2013, 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 25, 2015		July 26, 2014		July 27, 2013
Property and equipment, net:
United States	$	2,733	$	2,697	$	2,780
International	599		555		542
Total	$	3,332	$	3,252	$	3,322