XML 36 R22.htm IDEA: XBRL DOCUMENT v3.21.2
Segment, Geographic, and Significant Customer Information
 6 Months Ended
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 revenues1

 

 

 

 

 

 

 

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 revenues1

 

 

 

 

 

 

 

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 revenues1

 

 

 

 

 

 

 

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 revenues1

 

 

 

 

 

 

 

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

%