
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 six months ended January 23, 2016 and January 24, 2015, 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						Six Months Ended
	January 23, 2016			January 24, 2015			January 23, 2016			January 24, 2015
Revenue:
Americas	$	6,912		$	7,101		$	14,711		$	14,602
EMEA	3,088			3,091			6,175			6,093
APJC	1,927			1,744			3,723			3,486
Total	$	11,927		$	11,936		$	24,609		$	24,181
Gross margin:
Americas	$	4,412		$	4,406		$	9,362		$	9,216
EMEA	2,005			1,910			3,987			3,825
APJC	1,189			1,052			2,267			2,077
Segment total	7,606			7,368			15,616			15,118
Unallocated corporate items	(174		)	(278		)	(352		)	(695		)
Total	$	7,432		$	7,090		$	15,264		$	14,423

Revenue in the United States was $6.1 billion and $6.0 billion for the three months ended January 23, 2016 and January 24, 2015, respectively, and was $13.0 billion and $12.6 billion for the six months ended January 23, 2016 and January 24, 2015, 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				Six Months Ended
	January 23, 2016		January 24, 2015		January 23, 2016		January 24, 2015
Revenue:
Switching	$	3,483	$	3,615	$	7,505	$	7,461
NGN Routing	1,845		1,764		3,638		3,713
Collaboration	1,019		991		2,134		1,941
Data Center	822		846		1,681		1,538
Service Provider Video ⁽¹⁾	662		776		1,512		1,647
Wireless	613		611		1,258		1,216
Security	462		416		947		871
Other	77		59		152		126
Product	8,983		9,078		18,827		18,513
Service	2,944		2,858		5,782		5,668
Total	$	11,927	$	11,936	$	24,609	$	24,181

⁽¹⁾ Includes SP Video CPE Business revenue of $93 million (one month of operations) and $361 million for the second quarter of fiscal 2016 and 2015, respectively and $504 million and $840 million for the first six months of fiscal 2016 and 2015, respectively.

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 January 23, 2016 and July 25, 2015. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $56.5 billion and $53.4 billion as of January 23, 2016 and July 25, 2015, respectively, and the remaining $3.9 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):



	January 23, 2016		July 25, 2015
Property and equipment, net:
United States	$	2,779	$	2,733
International	607		599
Total	$	3,386	$	3,332