Segment, Geographic, and Significant Customer Information

12 Months Ended

Apr. 28, 2023

Segment Reporting [Abstract]

Segment, Geographic, and Significant Customer Information

15. Segment, Geographic, and Significant Customer Information

We have two operating segments and two reportable segments for financial reporting purposes: Hybrid Cloud and Public Cloud. Our Chief Operating Decision Maker (CODM), who is our Chief Executive Officer, reviews certain financial information for components of our business, organized based on category of product/solution, to evaluate performance 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 management and infrastructure solutions that help customers recast their traditional 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. Public Cloud includes certain reseller arrangements in which the timing of our consideration follows the end user consumption of the reseller services.

Segment Revenues and Gross Profit

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

	Year Ended April 28, 2023
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	3,049		$	—		$	3,049
Support revenues		2,419			—			2,419
Professional and other services revenues		319			—			319
Public cloud revenues		—			575			575
Net revenues		5,787			575			6,362
Cost of product revenues		1,511			—			1,511
Cost of support revenues		181			—			181
Cost of professional and other services revenues		211			—			211
Cost of public cloud revenues		—			184			184
Segment cost of revenues		1,903			184			2,087
Segment gross profit	$	3,884		$	391		$	4,275
Segment gross margin		67.1	%		68.0	%		67.2	%
Unallocated cost of revenues1								66
Total gross profit							$	4,209
Total gross margin								66.2	%
1 Unallocated cost of revenues are composed of $24 million of stock-based compensation expense and $42 million of amortization of intangible assets.

	Year Ended April 29, 2022
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	3,284		$	—		$	3,284
Support revenues		2,344			—			2,344
Professional and other services revenues		294			—			294
Public cloud revenues		—			396			396
Net revenues		5,922			396			6,318
Cost of product revenues		1,541			—			1,541
Cost of support revenues		184			—			184
Cost of professional and other services revenues		205			—			205
Cost of public cloud revenues		—			118			118
Segment cost of revenues		1,930			118			2,048
Segment gross profit	$	3,992		$	278		$	4,270
Segment gross margin		67.4	%		70.2	%		67.6	%
Unallocated cost of revenues1								50
Total gross profit							$	4,220
Total gross margin								66.8	%
1 Unallocated cost of revenues are composed of $17 million of stock-based compensation expense and $33 million of amortization of intangible assets.

	Year Ended April 30, 2021
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	2,991		$	—		$	2,991
Support revenues		2,277			—			2,277
Professional and other services revenues		277			—			277
Public cloud revenues		—			199			199
Net revenues		5,545			199			5,744
Cost of product revenues		1,402			—			1,402
Cost of support revenues		201			—			201
Cost of professional and other services revenues		206			—			206
Cost of public cloud revenues		—			65			65
Segment cost of revenues		1,809			65			1,874
Segment gross profit	$	3,736		$	134		$	3,870
Segment gross margin		67.4	%		67.3	%		67.4	%
Unallocated cost of revenues1								55
Total gross profit							$	3,815
Total gross margin								66.4	%
1 Unallocated cost of revenues are composed of $14 million of stock-based compensation expense and $41 million of amortization of intangible assets.

Geographical Revenues and Certain Assets

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

	Year Ended
	April 28, 2023		April 29, 2022		April 30, 2021
United States, Canada and Latin America (Americas)	$	3,390	$	3,460	$	3,097
Europe, Middle East and Africa (EMEA)		2,063		1,979		1,775
Asia Pacific (APAC)		909		879		872
Net revenues	$	6,362	$	6,318	$	5,744

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $2,973 million, $3,041 million and $2,784 million during fiscal 2023, 2022 and 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):

	April 28, 2023		April 29, 2022
U.S.	$	887	$	1,820
International		2,183		2,314
Total	$	3,070	$	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):

	April 28, 2023		April 29, 2022
U.S.	$	413	$	392
International		237		210
Total	$	650	$	602

Significant Customers

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

	Year Ended
	April 28, 2023			April 29, 2022			April 30, 2021
Arrow Electronics, Inc.		24	%		24	%		24	%
Tech Data Corporation		21	%		21	%		20	%

The following customers accounted for 10% or more of accounts receivable:

	April 28, 2023			April 29, 2022
Arrow Electronics, Inc.		15	%		10	%
Tech Data Corporation		19	%		19	%