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 October 29, 2016 and October 24, 2015, 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
	October 29, 2016			October 24, 2015
Revenue:
Americas	$	7,443		$	7,792
EMEA	3,013			3,094
APJC	1,896			1,796
Total	$	12,352		$	12,682
Gross margin:
Americas	$	4,833		$	4,943
EMEA	2,013			1,989
APJC	1,204			1,078
Segment total	8,050			8,010
Unallocated corporate items	(166		)	(178		)
Total	$	7,884		$	7,832

Revenue in the United States was $6.6 billion and $6.9 billion for the three months ended October 29, 2016 and October 24, 2015, 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
	October 29, 2016		October 24, 2015
Revenue:
Switching	$	3,716	$	4,009
NGN Routing	2,089		1,969
Collaboration	1,081		1,115
Data Center	834		859
Wireless	632		646
Security	540		485
Service Provider Video⁽¹⁾	271		687
Other	139		74
Product	9,302		9,844
Service	3,050		2,838
Total	$	12,352	$	12,682

⁽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 $411 million for the first quarter 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 October 29, 2016 and July 30, 2016. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $60.6 billion and $59.8 billion as of October 29, 2016 and July 30, 2016, respectively, and the remaining $10.4 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):



	October 29, 2016		July 30, 2016
Property and equipment, net:
United States	$	2,847	$	2,822
International	652		684
Total	$	3,499	$	3,506