Segment, Geographic, and Significant Customer Information

3 Months Ended

Jul. 29, 2022

Segment Reporting [Abstract]

Segment, Geographic, and Significant Customer Information

14. Segment, Geographic, and Significant Customer Information

Our operations are organized into two segments: Hybrid Cloud and Public 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.

Hybrid Cloud offers a portfolio of storage and infrastructure solutions that help customers recast their data centers with the power of cloud. 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.

Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage and data services, and cloud operations services.

Segment Revenues and Gross Profit

Financial information by segment is as follows (in millions, except percentages):

	Three Months Ended July 29, 2022
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	786		$	—		$	786
Support revenues		598			—			598
Professional and other services revenues		76			—			76
Public cloud revenues		—			132			132
Net revenues		1,460			132			1,592
Cost of product revenues		395			—			395
Cost of support revenues		43			—			43
Cost of professional and other services revenues		52			—			52
Cost of public cloud revenues		—			40			40
Segment cost of revenues		490			40			530
Segment gross profit	$	970		$	92		$	1,062
Segment gross margin		66.4	%		69.7	%		66.7	%
Unallocated cost of revenues1								16
Total gross profit							$	1,046
Total gross margin								65.7	%
1 Unallocated cost of revenues are composed of $5 million of stock-based compensation expense and $11 million of amortization of intangible assets.

	Three Months Ended July 30, 2021
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	730		$	—		$	730
Support revenues		578			—			578
Professional and other services revenues		71			—			71
Public cloud revenues		—			79			79
Net revenues		1,379			79			1,458
Cost of product revenues		326			—			326
Cost of support revenues		48			—			48
Cost of professional and other services revenues		51			—			51
Cost of public cloud revenues		—			23			23
Segment cost of revenues		425			23			448
Segment gross profit	$	954		$	56		$	1,010
Segment gross margin		69.2	%		70.9	%		69.3	%
Unallocated cost of revenues1								11
Total gross profit							$	999
Total gross margin								68.5	%
1 Unallocated cost of revenues are composed of $4 million of stock-based compensation expense and $7 million of amortization of intangible assets.

Geographical Revenues and Certain Assets

Revenues summarized by geographic region are as follows (in millions):

	Three Months Ended
	July 29,  2022		July 30, 2021
United States, Canada and Latin America (Americas)	$	856	$	786
Europe, Middle East and Africa (EMEA)		500		454
Asia Pacific (APAC)		236		218
Net revenues	$	1,592	$	1,458

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $758 million and $696 million during the three months ended July 29, 2022 and July 30, 2021, respectively.

The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions):

	July 29,  2022		April 29,  2022
U.S.	$	1,441	$	1,820
International		1,998		2,314
Total	$	3,439	$	4,134

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):

	July 29,  2022		April 29,  2022
U.S.	$	399	$	392
International		223		210
Total	$	622	$	602

Significant Customers

The following customers, each of which is a distributor, accounted for 10% or more of our net revenues:

	Three Months Ended
	July 29,  2022			July 30, 2021
Arrow Electronics, Inc.		25	%		24	%
Tech Data Corporation		21	%		20	%

The following customers accounted for 10% or more of accounts receivable in at least one of the periods presented:

	July 29,  2022			April 29,  2022
Arrow Electronics, Inc.		12	%		10	%
Tech Data Corporation		15	%		19	%