
17.	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, impacts to cost of sales from purchase accounting adjustments to inventory, 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 25, 2015 and April 26, 2014, 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 25, 2015			April 26, 2014			April 25, 2015			April 26, 2014
Revenue:
Americas	$	7,252		$	6,689		$	21,854		$	20,465
EMEA	3,119			3,068			9,212			8,897
APJC	1,766			1,788			5,252			5,423
Total	$	12,137		$	11,545		$	36,318		$	34,785
Gross margin:
Americas	$	4,560		$	4,196		$	13,776		$	12,823
EMEA	1,949			1,967			5,774			5,725
APJC	1,080			1,076			3,157			3,148
Segment total	7,589			7,239			22,707			21,696
Unallocated corporate items	(64		)	(233		)	(759		)	(1,332		)
Total	$	7,525		$	7,006		$	21,948		$	20,364

Revenue in the United States was $6.4 billion and $5.9 billion for the three months ended April 25, 2015 and April 26, 2014, respectively, and was $19.1 billion and $17.9 billion for the nine months ended April 25, 2015 and April 26, 2014, 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, Service Provider Video, Data Center, Wireless, Security, 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 25, 2015		April 26, 2014		April 25, 2015		April 26, 2014
Revenue:
Switching	$	3,560	$	3,368	$	11,022	$	10,366
NGN Routing	1,999		1,925		5,712		5,681
Collaboration	973		909		2,912		2,859
Service Provider Video	914		961		2,561		2,905
Data Center	801		662		2,340		1,868
Wireless	611		560		1,827		1,624
Security	412		361		1,283		1,119
Other	56		74		182		218
Product	9,326		8,820		27,839		26,640
Service	2,811		2,725		8,479		8,145
Total	$	12,137	$	11,545	$	36,318	$	34,785

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, as of April 25, 2015 and July 26, 2014 were attributable to its U.S. operations. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $51.8 billion and $47.4 billion as of April 25, 2015 and July 26, 2014, respectively, and the remaining $2.6 billion and $4.7 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 25, 2015		July 26, 2014
Property and equipment, net:
United States	$	2,709	$	2,697
International	567		555
Total	$	3,276	$	3,252