
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 nine months ended April 30, 2016 and April 25, 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						Nine Months Ended
	April 30, 2016			April 25, 2015			April 30, 2016			April 25, 2015
Revenue:
Americas	$	7,062		$	7,252		$	21,773		$	21,854
EMEA	3,001			3,119			9,176			9,212
APJC	1,937			1,766			5,660			5,252
Total	$	12,000		$	12,137		$	36,609		$	36,318
Gross margin:
Americas	$	4,684		$	4,560		$	14,046		$	13,776
EMEA	1,966			1,949			5,953			5,774
APJC	1,170			1,080			3,437			3,157
Segment total	7,820			7,589			23,436			22,707
Unallocated corporate items	(99		)	(64		)	(451		)	(759		)
Total	$	7,721		$	7,525		$	22,985		$	21,948

Revenue in the United States was $6.2 billion and $6.4 billion for the three months ended April 30, 2016 and April 25, 2015, respectively, and was $19.2 billion and $19.1 billion for the nine months ended April 30, 2016 and April 25, 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				Nine Months Ended
	April 30, 2016		April 25, 2015		April 30, 2016		April 25, 2015
Revenue:
Switching	$	3,447	$	3,560	$	10,952	$	11,021
NGN Routing	1,894		1,999		5,532		5,712
Collaboration	1,069		974		3,203		2,915
Data Center	811		801		2,492		2,339
Service Provider Video ⁽¹⁾	468		914		1,980		2,561
Wireless	615		611		1,873		1,827
Security	482		412		1,429		1,283
Other	89		55		241		181
Product	8,875		9,326		27,702		27,839
Service	3,125		2,811		8,907		8,479
Total	$	12,000	$	12,137	$	36,609	$	36,318

⁽¹⁾ Includes SP Video CPE Business revenue of zero and $519 million for the third quarters of fiscal 2016 and 2015, respectively and $504 million and $1,359 million for the first nine 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 April 30, 2016 and July 25, 2015. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $57.2 billion and $53.4 billion as of April 30, 2016 and July 25, 2015, respectively, and the remaining $6.3 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):



	April 30, 2016		July 25, 2015
Property and equipment, net:
United States	$	2,823	$	2,733
International	706		599
Total	$	3,529	$	3,332