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Segment Information and Major Customers
9 Months Ended
Apr. 28, 2018
Segment Reporting [Abstract]  
Segment Information and Major Customers
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 settlements 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 and nine months ended April 28, 2018 and April 29, 2017, 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 28,
2018
 
April 29,
2017
 
April 28,
2018
 
April 29,
2017
Revenue:
 
 
 
 
 
 
 
Americas
$
7,161

 
$
7,046

 
$
21,515

 
$
21,149

EMEA
3,281

 
2,999

 
9,252

 
9,077

APJC
2,021

 
1,895

 
5,719

 
5,646

Total
$
12,463

 
$
11,940

 
$
36,486

 
$
35,872

Gross margin:
 
 
 
 
 
 
 
Americas
$
4,614

 
$
4,551

 
$
13,950

 
$
13,672

EMEA
2,109

 
1,963

 
5,925

 
5,988

APJC
1,247

 
1,171

 
3,506

 
3,496

Segment total
7,970

 
7,685

 
23,381

 
23,156

Unallocated corporate items
(211
)
 
(167
)
 
(697
)
 
(478
)
Total
$
7,759

 
$
7,518

 
$
22,684

 
$
22,678


Revenue in the United States was $6.2 billion for each of the three months ended April 28, 2018 and April 29, 2017, and was $18.8 billion and $18.7 billion for the nine months ended April 28, 2018 and April 29, 2017, 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 information technology (IT) industry and provides services associated with these products and their use. Effective in the first quarter of fiscal 2018, the Company began reporting its product and service revenue in the following five categories: Infrastructure Platforms, Applications, Security, Other Products, and Services. The change better aligns the Company's product categories with its evolving business model. Prior period amounts have been reclassified to conform to the current period's presentation. 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 28,
2018
 
April 29,
2017
 
April 28,
2018
 
April 29,
2017
Revenue:
 
 
 
 
 
 
 
Infrastructure Platforms
$
7,163

 
$
6,992

 
$
20,827

 
$
20,810

Applications
1,309

 
1,100

 
3,696

 
3,352

Security
583

 
527

 
1,726

 
1,595

Other Products
249

 
266

 
818

 
921

Total Product
9,304

 
8,885

 
27,067

 
26,678

Services
3,159

 
3,055

 
9,419

 
9,194

Total
$
12,463

 
$
11,940

 
$
36,486

 
$
35,872



(c)
Additional Segment Information
The majority of the Company’s assets was attributable to its U.S. operations as of each of April 28, 2018 and July 29, 2017. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $6.9 billion and $67.5 billion as of April 28, 2018 and July 29, 2017, respectively, and the remaining $47.5 billion and $3.0 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 28,
2018
 
July 29,
2017
Property and equipment, net:
 
 
 
United States
$
2,533

 
$
2,711

International
549

 
611

Total
$
3,082

 
$
3,322