
17.	Segment Information and Major Customers


(a)	Revenue and Gross Margin by Segment

The Company conducts business globally and is primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. The Company’s management makes financial decisions and allocates resources based on the information it receives from its internal management system. Sales are attributed to a segment based on the ordering location of the customer. The Company does not allocate research and development, sales and marketing, or general and administrative expenses to its segments in this internal management system because management does not include the information in its measurement of the performance of the operating segments. In addition, the Company does not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation and other contingencies, impacts to cost of sales from purchase accounting adjustments to inventory, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in its measurement of the performance of the operating segments.

Summarized financial information by segment for the three and six months ended January 24, 2015 and January 25, 2014, based on the Company’s internal management system and as utilized by the Company’s Chief Operating Decision Maker ("CODM"), is as follows (in millions):



	Three Months Ended						Six Months Ended
	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Revenue:
Americas	$	7,101		$	6,460		$	14,602		$	13,776
EMEA	3,091			2,896			6,093			5,829
APJC	1,744			1,799			3,486			3,635
Total	$	11,936		$	11,155		$	24,181		$	23,240
Gross margin:
Americas	$	4,406		$	3,977		$	9,216		$	8,627
EMEA	1,910			1,870			3,825			3,758
APJC	1,052			993			2,077			2,072
Segment total	7,368			6,840			15,118			14,457
Unallocated corporate items	(278		)	(889		)	(695		)	(1,099		)
Total	$	7,090		$	5,951		$	14,423		$	13,358

Revenue in the United States was $6.1 billion and $5.6 billion for the three months ended January 24, 2015 and January 25, 2014, respectively, and was $12.7 billion and $12.0 billion for the six months ended January 24, 2015 and January 25, 2014, respectively.


(b)	Revenue for Groups of Similar Products and Services

The Company designs, manufactures, and sells Internet Protocol (IP)-based networking and other products related to the communications and IT industry and provides services associated with these products and their use. The Company groups its products and technologies into the following categories: Switching, NGN Routing, Collaboration, Service Provider Video, Data Center, Wireless, Security, and Other Products. These products, primarily integrated by Cisco IOS Software, link geographically dispersed local-area networks (LANs), metropolitan-area networks (MANs), and wide-area networks (WANs).

The following table presents revenue for groups of similar products and services (in millions):



	Three Months Ended				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Revenue:
Switching	$	3,616	$	3,258	$	7,462	$	6,998
NGN Routing	1,764		1,730		3,713		3,756
Collaboration	990		899		1,939		1,950
Service Provider Video	776		957		1,647		1,944
Data Center	846		605		1,539		1,206
Wireless	611		517		1,216		1,064
Security	416		393		871		758
Other	59		64		126		144
Product	9,078		8,423		18,513		17,820
Service	2,858		2,732		5,668		5,420
Total	$	11,936	$	11,155	$	24,181	$	23,240

The Company has made certain reclassifications to the product revenue amounts for prior periods to conform to the current period’s presentation.


(c)	Additional Segment Information

The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of January 24, 2015 and July 26, 2014 were attributable to its U.S. operations. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $49.8 billion and $47.4 billion as of January 24, 2015 and July 26, 2014, respectively, and the remaining $3.2 billion and $4.7 billion at the respective period ends were available in the United States.

Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in millions):



	January 24, 2015		July 26, 2014
Property and equipment, net:
United States	$	2,668	$	2,697
International	544		555
Total	$	3,212	$	3,252