
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 2016, 2015, and 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):



Years Ended	July 30, 2016			July 25, 2015			July 26, 2014
Revenue:
Americas	$	29,411		$	29,655		$	27,781
EMEA	12,281			12,322			12,006
APJC	7,555			7,184			7,355
Total	$	49,247		$	49,161		$	47,142
Gross margin:
Americas	$	19,006		$	18,670		$	17,379
EMEA	7,976			7,705			7,700
APJC	4,622			4,307			4,252
Segment total	31,604			30,682			29,331
Unallocated corporate items	(644		)	(1,001		)	(1,562		)
Total	$	30,960		$	29,681		$	27,769

Revenue in the United States was $26.2 billion, $26.2 billion, and $24.4 billion for fiscal 2016, 2015, and 2014, 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 30, 2016		July 25, 2015		July 26, 2014
Revenue:
Switching	$	14,746	$	14,740	$	14,001
NGN Routing	7,408		7,704		7,606
Collaboration	4,352		4,004		3,817
Data Center	3,365		3,219		2,640
Wireless	2,625		2,542		2,293
Service Provider Video ⁽¹⁾	2,424		3,555		3,969
Security	1,969		1,747		1,566
Other	365		239		280
Product	37,254		37,750		36,172
Service	11,993		11,411		10,970
Total	$	49,247	$	49,161	$	47,142

⁽¹⁾During the second quarter of fiscal 2016, the Company completed the sale of our SP Video CPE Business. As a result, revenue from this portion of the Service Provider Video product category will not recur in future periods. SP Video CPE Business revenue was $504 million, $1,846 million, and $2,240 million for fiscal 2016, 2015 and 2014, respectively.

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 30, 2016 and July 25, 2015 was attributable to its U.S. operations. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $59.8 billion and $53.4 billion as of July 30, 2016 and July 25, 2015, respectively, and the remaining $5.9 billion and $7.0 billion at the respective fiscal year ends were available in the United States. In fiscal 2016, 2015, and 2014, no single customer accounted for 10% or more of 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 30, 2016		July 25, 2015		July 26, 2014
Property and equipment, net:
United States	$	2,822	$	2,733	$	2,697
International	684		599		555
Total	$	3,506	$	3,332	$	3,252