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 April 29, 2017 and April 30, 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						Nine Months Ended
	April 29, 2017			April 30, 2016			April 29, 2017			April 30, 2016
Revenue:
Americas	$	7,046		$	7,056		$	21,149		$	21,759
EMEA	2,999			3,006			9,077			9,193
APJC	1,895			1,938			5,646			5,657
Total	$	11,940		$	12,000		$	35,872		$	36,609
Gross margin:
Americas	$	4,551		$	4,677		$	13,672		$	14,031
EMEA	1,963			1,970			5,988			5,970
APJC	1,171			1,173			3,496			3,435
Segment total	7,685			7,820			23,156			23,436
Unallocated corporate items	(167		)	(99		)	(478		)	(451		)
Total	$	7,518		$	7,721		$	22,678		$	22,985

Revenue in the United States was $6.2 billion for each of the three months ended April 29, 2017 and April 30, 2016, and was $18.7 billion and $19.1 billion for the nine months ended April 29, 2017 and April 30, 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				Nine Months Ended
	April 29, 2017		April 30, 2016		April 29, 2017		April 30, 2016
Revenue:
Switching	$	3,489	$	3,435	$	10,510	$	10,919
NGN Routing	2,032		2,074		5,938		6,057
Collaboration	1,022		1,069		3,165		3,203
Data Center	767		811		2,391		2,492
Wireless	703		620		1,967		1,882
Security	527		482		1,595		1,429
Service Provider Video⁽¹⁾	207		296		719		1,482
Other	138		88		393		238
Product	8,885		8,875		26,678		27,702
Service	3,055		3,125		9,194		8,907
Total	$	11,940	$	12,000	$	35,872	$	36,609

⁽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 $504 million for the first nine 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 April 29, 2017 and July 30, 2016. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $65.1 billion and $59.8 billion as of April 29, 2017 and July 30, 2016, respectively, and the remaining $2.9 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):



	April 29, 2017		July 30, 2016
Property and equipment, net:
United States	$	2,754	$	2,822
International	641		684
Total	$	3,395	$	3,506