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, 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 January 28, 2017 and January 23, 2016, 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 28, 2017			January 23, 2016			January 28, 2017			January 23, 2016
Revenue:
Americas	$	6,660		$	6,911		$	14,103		$	14,703
EMEA	3,065			3,093			6,078			6,187
APJC	1,855			1,923			3,751			3,719
Total	$	11,580		$	11,927		$	23,932		$	24,609
Gross margin:
Americas	$	4,288		$	4,411		$	9,121		$	9,354
EMEA	2,012			2,011			4,025			4,000
APJC	1,121			1,184			2,325			2,262
Segment total	7,421			7,606			15,471			15,616
Unallocated corporate items	(145		)	(174		)	(311		)	(352		)
Total	$	7,276		$	7,432		$	15,160		$	15,264

Revenue in the United States was $5.9 billion and $6.0 billion for the three months ended January 28, 2017 and January 23, 2016, respectively, and was $12.5 billion and $12.9 billion for the six months ended January 28, 2017 and January 23, 2016, 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, Data Center, Wireless, Security, Service Provider Video, 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 28, 2017		January 23, 2016		January 28, 2017		January 23, 2016
Revenue:
Switching	$	3,305	$	3,475	$	7,021	$	7,484
NGN Routing	1,817		2,014		3,906		3,983
Collaboration	1,062		1,019		2,143		2,134
Data Center	790		822		1,624		1,681
Wireless	632		616		1,264		1,262
Security	528		462		1,068		947
Service Provider Video⁽¹⁾	241		499		512		1,186
Other	116		76		255		150
Product	8,491		8,983		17,793		18,827
Service	3,089		2,944		6,139		5,782
Total	$	11,580	$	11,927	$	23,932	$	24,609

⁽¹⁾ During the second quarter of fiscal 2016, the Company completed the sale of the Customer Premises Equipment portion of its Service Provider Video Connected Devices business (“SP Video CPE Business”). As a result, revenue from this portion of the Service Provider Video product category will not recur in future periods. Includes SP Video CPE Business revenue of $93 million for the second quarter of fiscal 2016 and $504 million for the first six months of fiscal 2016.

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, was attributable to its U.S. operations as of each of January 28, 2017 and July 30, 2016. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $62.3 billion and $59.8 billion as of January 28, 2017 and July 30, 2016, respectively, and the remaining $9.6 billion and $5.9 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 28, 2017		July 30, 2016
Property and equipment, net:
United States	$	2,797	$	2,822
International	625		684
Total	$	3,422	$	3,506