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Segment, Geographic, and Significant Customer Information | 6 Months Ended
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Oct. 29, 2021
Segment Reporting [Abstract] |
Segment, Geographic, and Significant Customer Information | 14. Segment, Geographic, and Significant Customer Information Our operations are now organized into two segments for financial reporting purposes: Public Cloud and Hybrid Cloud. The two segments are based on the information reviewed by our Chief Operating Decision Maker (“CODM”), who is the Chief Executive Officer, to evaluate results and allocate resources. The CODM measures performance of each segment based on segment revenue and segment gross profit. We do not allocate to our segments certain cost of revenues which we manage at the corporate level. These unallocated costs include stock-based compensation and amortization of intangible assets. We do not allocate assets to our segments. Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support, and made available on the world’s leading clouds. This portfolio includes storage services, cloud automation and optimization services, and cloud infrastructure monitoring services. Hybrid Cloud offers a portfolio of storage and data management solutions that help customers build and integrate on-premises and private cloud environments. This portfolio is designed to operate with public clouds to unlock the potential of hybrid, multi-cloud operations. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services. Financial information for the prior period has been updated to conform to the current year presentation of two segments. Segment Revenues and Gross Profit Financial information by segment is as follows (in millions, except percentages):
| Three Months Ended October 29, 2021 |
| Hybrid Cloud |  |  | Public Cloud |  |  | Consolidated |
Product revenues | $ | 814 |  |  | $ | — |  |  | $ | 814 |
Support revenues |  | 590 |  |  |  | — |  |  |  | 590 |
Professional and other services revenues |  | 75 |  |  |  | — |  |  |  | 75 |
Public cloud revenues |  | — |  |  |  | 87 |  |  |  | 87 |
Net revenues |  | 1,479 |  |  |  | 87 |  |  |  | 1,566 |
Cost of product revenues |  | 369 |  |  |  | — |  |  |  | 369 |
Cost of support revenues |  | 48 |  |  |  | — |  |  |  | 48 |
Cost of professional and other services revenues |  | 54 |  |  |  | — |  |  |  | 54 |
Cost of public cloud revenues |  | — |  |  |  | 25 |  |  |  | 25 |
Segment cost of revenues |  | 471 |  |  |  | 25 |  |  |  | 496 |
Segment gross profit | $ | 1,008 |  |  | $ | 62 |  |  | $ | 1,070 |
Segment gross margin |  | 68.2 | % |  |  | 71.3 | % |  |  | 68.3 | %
Unallocated cost of revenues 1 |  |  |  |  |  |  |  | 11 |
Total gross profit |  |  |  |  |  |  | $ | 1,059 |
Total gross margin |  |  |  |  |  |  |  | 67.6 | %
1 Unallocated cost of revenues are composed of $4 million of stock-based compensation expense and $7 million of amortization of intangible assets. |
| Three Months Ended October 30, 2020 |
| Hybrid Cloud |  |  | Public Cloud |  |  | Consolidated |
Product revenues | $ | 749 |  |  | $ | — |  |  | $ | 749 |
Support revenues |  | 553 |  |  |  | — |  |  |  | 553 |
Professional and other services revenues |  | 67 |  |  |  | — |  |  |  | 67 |
Public cloud revenues |  | — |  |  |  | 47 |  |  |  | 47 |
Net revenues |  | 1,369 |  |  |  | 47 |  |  |  | 1,416 |
Cost of product revenues |  | 352 |  |  |  | — |  |  |  | 352 |
Cost of support revenues |  | 50 |  |  |  | — |  |  |  | 50 |
Cost of professional and other services revenues |  | 50 |  |  |  | — |  |  |  | 50 |
Cost of public cloud revenues |  | — |  |  |  | 16 |  |  |  | 16 |
Segment cost of revenues |  | 452 |  |  |  | 16 |  |  |  | 468 |
Segment gross profit | $ | 917 |  |  | $ | 31 |  |  | $ | 948 |
Segment gross margin |  | 67.0 | % |  |  | 66.0 | % |  |  | 66.9 | %
Unallocated cost of revenues 1 |  |  |  |  |  |  |  | 15 |
Total gross profit |  |  |  |  |  |  | $ | 933 |
Total gross margin |  |  |  |  |  |  |  | 65.9 | %
1 Unallocated cost of revenues are composed of $3 million of stock-based compensation expense and $12 million of amortization of intangible assets. |
| Six Months Ended October 29, 2021 |
| Hybrid Cloud |  |  | Public Cloud |  |  | Consolidated |
Product revenues | $ | 1,544 |  |  | $ | — |  |  | $ | 1,544 |
Support revenues |  | 1,168 |  |  |  | — |  |  |  | 1,168 |
Professional and other services revenues |  | 146 |  |  |  | — |  |  |  | 146 |
Public cloud revenues |  | — |  |  |  | 166 |  |  |  | 166 |
Net revenues |  | 2,858 |  |  |  | 166 |  |  |  | 3,024 |
Cost of product revenues |  | 695 |  |  |  | — |  |  |  | 695 |
Cost of support revenues |  | 96 |  |  |  | — |  |  |  | 96 |
Cost of professional and other services revenues |  | 105 |  |  |  | — |  |  |  | 105 |
Cost of public cloud revenues |  | — |  |  |  | 48 |  |  |  | 48 |
Segment cost of revenues |  | 896 |  |  |  | 48 |  |  |  | 944 |
Segment gross profit | $ | 1,962 |  |  | $ | 118 |  |  | $ | 2,080 |
Segment gross margin |  | 68.6 | % |  |  | 71.1 | % |  |  | 68.8 | %
Unallocated cost of revenues 1 |  |  |  |  |  |  |  | 22 |
Total gross profit |  |  |  |  |  |  | $ | 2,058 |
Total gross margin |  |  |  |  |  |  |  | 68.1 | %
1 Unallocated cost of revenues are composed of $8 million of stock-based compensation expense and $14 million of amortization of intangible assets. |
| Six Months Ended October 30, 2020 |
| Hybrid Cloud |  |  | Public Cloud |  |  | Consolidated |
Product revenues | $ | 1,376 |  |  | $ | — |  |  | $ | 1,376 |
Support revenues |  | 1,130 |  |  |  | — |  |  |  | 1,130 |
Professional and other services revenues |  | 135 |  |  |  | — |  |  |  | 135 |
Public cloud revenues |  | — |  |  |  | 78 |  |  |  | 78 |
Net revenues |  | 2,641 |  |  |  | 78 |  |  |  | 2,719 |
Cost of product revenues |  | 657 |  |  |  | — |  |  |  | 657 |
Cost of support revenues |  | 101 |  |  |  | — |  |  |  | 101 |
Cost of professional and other services revenues |  | 98 |  |  |  | — |  |  |  | 98 |
Cost of public cloud revenues |  | — |  |  |  | 29 |  |  |  | 29 |
Segment cost of revenues |  | 856 |  |  |  | 29 |  |  |  | 885 |
Segment gross profit | $ | 1,785 |  |  | $ | 49 |  |  | $ | 1,834 |
Segment gross margin |  | 67.6 | % |  |  | 62.8 | % |  |  | 67.5 | %
Unallocated cost of revenues 1 |  |  |  |  |  |  |  | 29 |
Total gross profit |  |  |  |  |  |  | $ | 1,805 |
Total gross margin |  |  |  |  |  |  |  | 66.4 | %
1 Unallocated cost of revenues are composed of $7 million of stock-based compensation expense and $22 million of amortization of intangible assets. |
Geographical Revenues and Certain Assets Revenues summarized by geographic region are as follows (in millions):
|  | Three Months Ended |  |  | Six Months Ended |
|  | October 29, 2021 |  |  | October 30, 2020 |  |  | October 29, 2021 |  |  | October 30, 2020 |
United States, Canada and Latin America (Americas) |  | $ | 868 |  |  | $ | 781 |  |  | $ | 1,654 |  |  | $ | 1,490 |
Europe, Middle East and Africa (EMEA) |  |  | 461 |  |  |  | 422 |  |  |  | 915 |  |  |  | 805 |
Asia Pacific (APAC) |  |  | 237 |  |  |  | 213 |  |  |  | 455 |  |  |  | 424 |
Net revenues |  | $ | 1,566 |  |  | $ | 1,416 |  |  | $ | 3,024 |  |  | $ | 2,719 |
Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $773 million and $705 million during the three months ended October 29, 2021 and October 30, 2020, respectively, and were $1,469 million and $1,342 million during the six months ended October 29, 2021 and October 30, 2020, respectively. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions):
|  | October 29, 2021 |  |  | April 30, 2021 |
U.S. |  | $ | 2,800 |  |  | $ | 2,098 |
International |  |  | 1,748 |  |  |  | 2,498 |
Total |  | $ | 4,548 |  |  | $ | 4,596 |
With the exception of property and equipment, we do not identify or allocate our long-lived assets by geographic area. The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions):
|  | October 29, 2021 |  |  | April 30, 2021 |
U.S. |  | $ | 351 |  |  | $ | 340 |
International |  |  | 198 |  |  |  | 185 |
Total |  | $ | 549 |  |  | $ | 525 |
Significant Customers The following customers, each of which is a distributor, accounted for 10% or more of our net revenues:
|  | Three Months Ended |  |  | Six Months Ended |
|  | October 29, 2021 |  |  | October 30, 2020 |  |  | October 29, 2021 |  |  | October 30, 2020 |
Arrow Electronics, Inc. |  |  | 24 | % |  |  | 25 | % |  |  | 24 | % |  |  | 24 | %
Tech Data Corporation |  |  | 20 | % |  |  | 20 | % |  |  | 20 | % |  |  | 20 | %
The following customers accounted for 10% or more of accounts receivable:
|  | October 29, 2021 |  |  | April 30, 2021 |
Arrow Electronics, Inc. |  |  | 10 | % |  |  | 10 | %
Tech Data Corporation |  |  | 20 | % |  |  | 21 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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