Segment, Geographic, and Significant Customer Information

12 Months Ended

Apr. 26, 2024

Segment Reporting [Abstract]

Segment, Geographic, and Significant Customer Information

15. 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 unified data storage portfolio of storage management and infrastructure solutions that help customers modernize their data centers. This portfolio supports structured and unstructured data with unified storage optimized for flash, disk, and cloud storage to handle data-intensive workloads and applications. 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 CloudOps 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 26, 2024
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	2,849		$	—		$	2,849
Support revenues		2,488			—			2,488
Professional and other services revenues		320			—			320
Public cloud revenues		—			611			611
Net revenues		5,657			611			6,268
Cost of product revenues		1,131			—			1,131
Cost of support revenues		195			—			195
Cost of professional and other services revenues		243			—			243
Cost of public cloud revenues		—			203			203
Segment cost of revenues		1,569			203			1,772
Segment gross profit	$	4,088		$	408		$	4,496
Segment gross margin		72.3	%		66.8	%		71.7	%
Unallocated cost of revenues1								63
Total gross profit							$	4,433
Total gross margin								70.7	%
1 Unallocated cost of revenues are composed of $29 million of stock-based compensation expense and $34 million of amortization of intangible assets.

	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.

Geographical Revenues and Certain Assets

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

	Year Ended
	April 26, 2024		April 28, 2023		April 29, 2022
United States, Canada and Latin America (Americas)	$	3,193	$	3,237	$	3,343
Europe, Middle East and Africa (EMEA)		2,104		2,148		2,003
Asia Pacific (APAC)		971		977		972
Net revenues	$	6,268	$	6,362	$	6,318

Effective in the first quarter of fiscal 2024, management began evaluating revenues by geographic region based on the location to which products and services are delivered, rather than based on the location from which the customer relationship is managed. Prior year numbers have been recast to conform to the current year presentation.

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $2,952 million, $3,007 million and $3,095 million during fiscal 2024, 2023 and 2022, 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 26, 2024		April 28, 2023
U.S.	$	1,142	$	887
International		2,110		2,183
Total	$	3,252	$	3,070

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 26, 2024		April 28, 2023
U.S.	$	378	$	413
International		226		237
Total	$	604	$	650

Significant Customers

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

	Year Ended
	April 26, 2024			April 28, 2023			April 29, 2022
Arrow Electronics, Inc.		22	%		24	%		24	%
TD Synnex Corporation (previously presented as Tech Data Corporation)		22	%		21	%		21	%

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

	April 26, 2024			April 28, 2023
Arrow Electronics, Inc.		10	%		15	%
TD Synnex Corporation (previously presented as Tech Data Corporation)		26	%		19	%