Segment, Geographic, and Significant Customer Information

3 Months Ended

Jul. 30, 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):

	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.

	Three Months Ended July 31, 2020
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	627		$	—		$	627
Support revenues		577			—			577
Professional and other services revenues		68			—			68
Public cloud revenues		—			31			31
Net revenues		1,272			31			1,303
Cost of product revenues		305			—			305
Cost of support revenues		51			—			51
Cost of professional and other services revenues		48			—			48
Cost of public cloud revenues		—			13			13
Segment cost of revenues		404			13			417
Segment gross profit	$	868		$	18		$	886
Segment gross margin		68.2	%		58.1	%		68.0	%
Unallocated cost of revenues1								14
Total gross profit							$	872
Total gross margin								66.9	%
1 Unallocated cost of revenues are composed of $4 million of stock-based compensation expense and $10 million of amortization of intangible assets.

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

	Three Months Ended
	July 30, 2021		July 31, 2020
United States, Canada and Latin America (Americas)	$	786	$	709
Europe, Middle East and Africa (EMEA)		454		383
Asia Pacific (APAC)		218		211
Net revenues	$	1,458	$	1,303

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $696 million and $637 million during the three months ended July 30, 2021 and July 31, 2020, 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 30, 2021		April 30, 2021
U.S.	$	2,136	$	2,098
International		2,411		2,498
Total	$	4,547	$	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):

	July 30, 2021		April 30, 2021
U.S.	$	343	$	340
International		190		185
Total	$	533	$	525

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

	Three Months Ended
	July 30, 2021			July 31, 2020
Arrow Electronics, Inc.		24	%		23	%
Tech Data Corporation		20	%		20	%

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

	July 30, 2021			April 30, 2021
Arrow Electronics, Inc.		10	%		10	%
Tech Data Corporation		19	%		21	%