Segment Information and Major Customers

6 Months Ended

Jan. 25, 2020


(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 second quarter and the first six months 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						Six Months Ended
	January 25, 2020			January 26, 2019			January 25, 2020			January 26, 2019
Revenue:
Americas	$	7,013		$	7,352		$	14,990		$	15,103
EMEA	3,134			3,223			6,417			6,447
APJC	1,859			1,872			3,758			3,968
Total	$	12,005		$	12,446		$	25,164		$	25,518
Gross margin:
Americas	$	4,692		$	4,796		$	10,008		$	9,866
EMEA	2,062			2,070			4,229			4,141
APJC	1,219			1,109			2,413			2,309
Segment total	7,974			7,975			16,650			16,316
Unallocated corporate items	(210		)	(202		)	(422		)	(397		)
Total	$	7,764		$	7,773		$	16,228		$	15,919

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

Revenue in the United States was $6.2 billion and $6.4 billion for the second quarter of fiscal 2020 and 2019, respectively, and $13.3 billion for each of the first six months of fiscal 2020 and 2019.


(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 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				Six Months Ended
	January 25, 2020		January 26, 2019		January 25, 2020		January 26, 2019
Revenue:
Infrastructure Platforms	$	6,528	$	7,102	$	14,067	$	14,724
Applications	1,349		1,465		2,847		2,884
Security	748		684		1,563		1,354
Other Products	46		22		72		200
Total Product	8,671		9,273		18,549		19,163
Services	3,334		3,173		6,615		6,355
Total⁽¹⁾	$	12,005	$	12,446	$	25,164	$	25,518

Amounts may not sum due to rounding.

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