Segment Information and Major Customers

3 Months Ended

Oct. 26, 2019


(a)	Revenue and Gross Margin by Segment

We conduct business globally and are primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. Our management makes financial decisions and allocates resources based on the information it receives from our internal management system. Sales are attributed to a segment based on the ordering location of the customer. We do not allocate research and development, sales and marketing, or general and administrative expenses to our segments in this internal management system because management does not include the information in our measurement of the performance of the operating segments. In addition, we do 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 our measurement of the performance of the operating segments.

Summarized financial information by segment for the first quarter of fiscal 2020 and 2019, based on our internal management system and as utilized by our Chief Operating Decision Maker (“CODM”), is as follows (in millions):



	Three Months Ended
	October 26, 2019			October 27, 2018
Revenue:
Americas	$	7,977		$	7,751
EMEA	3,283			3,224
APJC	1,899			2,096
Total	$	13,159		$	13,072
Gross margin:
Americas	$	5,316		$	5,070
EMEA	2,166			2,070
APJC	1,194			1,200
Segment total	8,676			8,341
Unallocated corporate items	(212		)	(195		)
Total	$	8,464		$	8,146

Amounts may not sum and percentages may not recalculate due to rounding.

Revenue in the United States was $7.1 billion and $6.9 billion for the first quarter of fiscal 2020 and 2019, respectively.


(b)	Revenue for Groups of Similar Products and Services

We design, manufacture, and sell Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use.

The following table presents revenue for groups of similar products and services (in millions):



	Three Months Ended
	October 26, 2019		October 27, 2018
Revenue:
Infrastructure Platforms	$	7,538	$	7,622
Applications	1,499		1,419
Security	815		670
Other Products	26		178
Total Product	9,878		9,890
Services	3,281		3,182
Total⁽¹⁾	$	13,159	$	13,072

Amounts may not sum due to rounding.

⁽¹⁾ Includes SPVSS business revenue of $168 million for the first quarter of fiscal 2019.


(c)	Additional Segment Information

The majority of our assets were attributable to our U.S. operations as of each of October 26, 2019 and July 27, 2019.

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):



	October 26, 2019		July 27, 2019
Property and equipment, net:
United States	$	2,168	$	2,266
International	501		523
Total	$	2,669	$	2,789