
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 24, 2015 and October 25, 2014, 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 24, 2015			October 25, 2014
Revenue:
Americas	$	7,799		$	7,501
EMEA	3,087			3,002
APJC	1,796			1,742
Total	$	12,682		$	12,245
Gross margin:
Americas	$	4,950		$	4,810
EMEA	1,982			1,915
APJC	1,078			1,025
Segment total	8,010			7,750
Unallocated corporate items	(178		)	(417		)
Total	$	7,832		$	7,333

Revenue in the United States was $6.9 billion and $6.5 billion for the three months ended October 24, 2015 and October 25, 2014, respectively.


(b)	Revenue for Groups of Similar Products and Services

The Company designs and sells broad lines of products, provides services and delivers integrated solutions to develop and connect networks around the world, building the Internet. The Company groups its products and technologies into the following categories: Switching, NGN Routing, Collaboration, Data Center, Service Provider Video, 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 24, 2015		October 25, 2014
Revenue:
Switching	$	4,022	$	3,846
NGN Routing	1,793		1,949
Collaboration	1,115		950
Data Center	859		692
Service Provider Video	850		871
Wireless	645		605
Security	485		455
Other	75		67
Product	9,844		9,435
Service	2,838		2,810
Total	$	12,682	$	12,245

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, were attributable to its U.S. operations as of each of October 24, 2015 and July 25, 2015. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $54.1 billion and $53.4 billion as of October 24, 2015 and July 25, 2015, respectively, and the remaining $5.0 billion and $7.0 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 24, 2015		July 25, 2015
Property and equipment, net:
United States	$	2,727	$	2,733
International	619		599
Total	$	3,346	$	3,332