|
|
|
|
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended July 29, 2017
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____
|
California
|
|
77-0059951
|
(State or other jurisdiction of
incorporation or organization)
|
|
(IRS Employer
Identification No.)
|
170 West Tasman Drive
San Jose, California
|
|
95134-1706
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of Each Class:
|
|
Name of Each Exchange on which Registered
|
Common Stock, par value $0.001 per share
|
|
The NASDAQ Stock Market LLC
|
Large accelerated filer
|
|
x
|
|
|
Accelerated filer
|
|
o
|
|
|
|
|
||||
Non-accelerated filer
|
|
o
|
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
o
|
Item 1.
|
Business
|
Campus Switches
|
|
Data Center Switches
|
|
Storage
|
Fixed Configuration:
|
|
Fixed Configuration:
|
|
Cisco MDS Series:
|
• Cisco Catalyst 2960 Series
|
|
• Cisco Nexus 2000 Series
|
|
• Cisco MDS 9000
|
• Cisco Catalyst 3650 Series
|
|
• Cisco Nexus 3000 Series
|
|
|
• Cisco Catalyst 3850 Series
|
|
• Cisco Nexus 3500 Series
|
|
|
• Cisco Catalyst 4500-X Series
|
|
• Cisco Nexus 5000 Series
|
|
|
• Cisco Catalyst 6800 Series
|
|
• Cisco Nexus 6000 Series
|
|
|
• Cisco Catalyst 9300 Series
|
|
• Cisco Nexus 9200 Series
|
|
|
• Cisco Catalyst 9500 Series
|
|
• Cisco Nexus 9300 Series
|
|
|
|
|
|
|
|
Modular Configuration:
|
|
Modular Configuration:
|
|
|
• Cisco Catalyst 4500-E Series
|
|
• Cisco Nexus 7000 Series
|
|
|
• Cisco Catalyst 6500-E Series
|
|
• Cisco Nexus 7700 Series
|
|
|
• Cisco Catalyst 6800 Series
|
|
• Cisco Nexus 9500 Series
|
|
|
• Cisco Catalyst 9400 Series
|
|
|
|
|
High-End Routers
|
|
Midrange and Low-End Routers
|
|
Other NGN Routing
|
Cisco Aggregation Services Routers (ASRs):
|
|
Cisco Integrated Services Routers (ISRs):
|
|
Optical networking products:
|
• Cisco ASR 900 and 920 Series
|
|
• Cisco 800 Series ISR
|
|
• Cisco NCS 1000 Series
|
• Cisco ASR 1000 Series
|
|
• Cisco 1900 Series ISR
|
|
• Cisco NCS 2000 Series
|
• Cisco ASR 5000 and 5500 Series
|
|
• Cisco 2900 Series ISR
|
|
• Cisco NCS 4000 Series
|
• Cisco ASR 9000 Series
|
|
• Cisco 3900 Series ISR
|
|
|
|
|
• Cisco 4200 Series ISR
|
|
|
Cisco Carrier Routing Systems (CRS):
|
|
• Cisco 4300 Series ISR
|
|
Cable access/Infrastructure products:
|
• Cisco CRS-3
|
|
• Cisco 4400 Series ISR
|
|
• Cisco CBR Series
|
• Cisco CRS-X
|
|
|
|
• Cable modem termination systems (CMTS)
|
Cisco Network Convergence System (NCS):
|
|
|
|
• Hybrid fiber coaxial (HFC) access network products
|
• Cisco NCS 6000 Series
|
|
|
|
• Quadrature amplitude modulation (QAM)
|
• Cisco NCS 5000 Series
|
|
|
|
|
• Cisco NCS 5500 Series
|
|
|
|
|
|
|
|
|
|
Unified Communications
|
|
Conferencing
|
|
Collaboration Endpoints
|
|
Business Messaging
|
• Internet Protocol (IP) phones
|
|
• Cisco WebEx
|
|
• Collaboration desk endpoints
|
|
• Cisco Spark
|
• Call control
|
|
• Cisco TelePresence Server
|
|
• Collaboration room endpoints
|
|
|
• Call center and messaging
|
|
•
Cisco TelePresence Conductor
|
|
• Immersive systems
|
|
|
• Software-based instant-messaging (IM) clients
|
|
•
Cisco Meeting Server
|
|
• Cisco Spark Board
|
|
|
• Communication gateways and unified communication
|
|
|
|
|
|
|
Cisco Unified Computing System (Cisco UCS):
|
• Cisco UCS B-Series Blade Servers
|
• Cisco UCS C-Series Rack Servers
|
• Cisco UCS M5 Series Servers
|
• Cisco UCS C3260 Storage Optimized Rack Server
|
• Cisco UCS Mini branch/remote site computing solution
|
• Cisco UCS Fabric Interconnects
|
• Cisco UCS Manager and Cisco UCS Director Management Software
|
Cisco HyperFlex Systems
|
Private and Hybrid Cloud:
|
• Cisco ONE Enterprise Cloud Suite (a portion of Cisco ONE is in Data Center)
|
Access Points
|
|
WLAN Controllers
|
|
Connected Mobile Experiences
|
|
Integrated Software Offerings and Other
|
Cisco Aironet Series
|
|
Standalone
|
|
Cloud
|
|
Meraki integrated software services
|
Meraki Cloud Managed MR Series
|
|
Virtual
|
|
Appliance-based
|
|
|
|
|
Integrated
|
|
|
|
|
|
|
|
|
|
|
|
Service Provider Video Software and Solutions
|
• End-to-end video security solutions
|
• Digital headend portfolio for content acquisition and distribution
|
• Virtualized video processing (V2P)
|
• Cloud-based, SaaS-delivered end-to-end video entertainment solutions
|
Leases:
|
• Sales-type
|
• Direct financing
|
• Operating
|
Loans
|
Financed service contracts
|
Channels financing arrangements
|
End-user financing arrangements
|
Build
|
Working within Cisco, with the developer community, or with customers
|
Buy
|
Acquiring or divesting, depending on goals
|
Partner
|
Strategically partnering to further build out the business
|
Invest
|
Making investments in areas where technology is in its infancy or where there is no dominant technology
|
Co-develop
|
Developing new solutions with multi-party teams that may include customers, channel partners, startups, independent software vendors, and academics
|
•
|
The ability to sell successful business outcomes
|
•
|
The ability to provide a broad range of networking and communications products and services
|
•
|
Product performance
|
•
|
Price
|
•
|
The ability to introduce new products, including providing continuous new customer value and products with price-performance advantages
|
•
|
The ability to reduce production costs
|
•
|
The ability to provide value-added features such as security, reliability, and investment protection
|
•
|
Conformance to standards
|
•
|
Market presence
|
•
|
The ability to provide financing
|
•
|
Disruptive technology shifts and new business models
|
|
July 29, 2017
|
Employees by geography:
|
|
United States
|
37,000
|
Rest of world
|
35,900
|
Total
|
72,900
|
Employees by line item on the Consolidated Statements of Operations:
|
|
Cost of sales
(1)
|
20,300
|
Research and development
|
20,800
|
Sales and marketing
|
24,500
|
General and administrative
|
7,300
|
Total
|
72,900
|
Name
|
|
Age
|
|
Position with the Company
|
Charles H. Robbins
|
|
51
|
|
Chief Executive Officer and Director
|
John T. Chambers
|
|
68
|
|
Executive Chairman
|
Mark Chandler
|
|
61
|
|
Senior Vice President, Legal Services, General Counsel and Chief Compliance Officer
|
Chris Dedicoat
|
|
60
|
|
Executive Vice President, Worldwide Sales and Field Operations
|
David Goeckeler
|
|
55
|
|
Executive Vice President and General Manager, Security and Networking Business
|
Rebecca Jacoby
|
|
55
|
|
Senior Vice President and Chief of Operations
|
Kelly A. Kramer
|
|
50
|
|
Executive Vice President and Chief Financial Officer
|
Karen Walker
|
|
55
|
|
Senior Vice President and Chief Marketing Officer
|
Item 1A.
|
Risk Factors
|
|
•
|
|
Fluctuations in demand for our products and services, especially with respect to service providers and Internet businesses, in part due to changes in the global economic environment
|
|
•
|
|
Changes in sales and implementation cycles for our products and reduced visibility into our customers’ spending plans and associated revenue
|
|
•
|
|
Our ability to maintain appropriate inventory levels and purchase commitments
|
|
•
|
|
Price and product competition in the communications and networking industries, which can change rapidly due to technological innovation and different business models from various geographic regions
|
|
•
|
|
The overall movement toward industry consolidation among both our competitors and our customers
|
|
•
|
|
The introduction and market acceptance of new technologies and products and our success in new and evolving markets, including in our newer product categories such as data center and collaboration and in emerging technologies, as well as the adoption of new standards
|
|
•
|
|
The transformation of our business to deliver more software and subscription offerings where revenue is recognized over time
|
|
•
|
|
Variations in sales channels, product costs, mix of products sold, or mix of direct sales and indirect sales
|
|
•
|
|
The timing, size, and mix of orders from customers
|
|
•
|
|
Manufacturing and customer lead times
|
|
•
|
|
Fluctuations in our gross margins, and the factors that contribute to such fluctuations, as described below
|
|
•
|
|
The ability of our customers, channel partners, contract manufacturers and suppliers to obtain financing or to fund capital expenditures, especially during a period of global credit market disruption or in the event of customer, channel partner, contract manufacturer or supplier financial problems
|
|
•
|
|
Actual events, circumstances, outcomes, and amounts differing from judgments, assumptions, and estimates used in determining the values of certain assets (including the amounts of related valuation allowances), liabilities, and other items reflected in our Consolidated Financial Statements
|
|
•
|
|
How well we execute on our strategy and operating plans and the impact of changes in our business model that could result in significant restructuring charges
|
|
•
|
|
Our ability to achieve targeted cost reductions
|
|
•
|
|
Benefits anticipated from our investments in engineering, sales, service, and marketing
|
|
•
|
|
Changes in tax laws or accounting rules, or interpretations thereof
|
|
•
|
|
Reduced demand for our products as a result of continued constraints on IT-related capital spending by our customers, particularly service providers, and other customer markets as well
|
|
•
|
|
Increased price competition for our products, not only from our competitors but also as a consequence of customers disposing of unutilized products
|
|
•
|
|
Risk of excess and obsolete inventories
|
|
•
|
|
Risk of supply constraints
|
|
•
|
|
Risk of excess facilities and manufacturing capacity
|
|
•
|
|
Higher overhead costs as a percentage of revenue and higher interest expense
|
|
•
|
|
Changes in customer, geographic, or product mix, including mix of configurations within each product group
|
|
•
|
|
Introduction of new products, including products with price-performance advantages, and new business models including the transformation of our business to deliver more software and subscription offerings
|
|
•
|
|
Our ability to reduce production costs
|
|
•
|
|
Entry into new markets or growth in lower margin markets, including markets with different pricing and cost structures, through acquisitions or internal development
|
|
•
|
|
Sales discounts
|
|
•
|
|
Increases in material, labor or other manufacturing-related costs, which could be significant especially during periods of supply constraints such as those impacting the market for memory components
|
|
•
|
|
Excess inventory and inventory holding charges
|
|
•
|
|
Obsolescence charges
|
|
•
|
|
Changes in shipment volume
|
|
•
|
|
The timing of revenue recognition and revenue deferrals
|
|
•
|
|
Increased cost, loss of cost savings or dilution of savings due to changes in component pricing or charges incurred due to inventory holding periods if parts ordering does not correctly anticipate product demand or if the financial health of either contract manufacturers or suppliers deteriorates
|
|
•
|
|
Lower than expected benefits from value engineering
|
|
•
|
|
Increased price competition, including competitors from Asia, especially from China
|
|
•
|
|
Changes in distribution channels
|
|
•
|
|
Increased warranty costs
|
|
•
|
|
Increased amortization of purchased intangible assets, especially from acquisitions
|
|
•
|
|
How well we execute on our strategy and operating plans
|
|
•
|
|
We compete with some of our channel partners, including through our direct sales, which may lead these channel partners to use other suppliers that do not directly sell their own products or otherwise compete with them
|
|
•
|
|
Some of our channel partners may demand that we absorb a greater share of the risks that their customers may ask them to bear
|
|
•
|
|
Some of our channel partners may have insufficient financial resources and may not be able to withstand changes and challenges in business conditions
|
|
•
|
|
Revenue from indirect sales could suffer if our distributors’ financial condition or operations weaken
|
|
•
|
|
The ability to sell successful business outcomes
|
|
•
|
|
The ability to provide a broad range of networking and communications products and services
|
|
•
|
|
Product performance
|
|
•
|
|
Price
|
|
•
|
|
The ability to introduce new products, including providing continuous new customer value and products with price-performance advantages
|
|
•
|
|
The ability to reduce production costs
|
|
•
|
|
The ability to provide value-added features such as security, reliability, and investment protection
|
|
•
|
|
Conformance to standards
|
|
•
|
|
Market presence
|
|
•
|
|
The ability to provide financing
|
|
•
|
|
Disruptive technology shifts and new business models
|
|
•
|
|
Any financial problems of either contract manufacturers or component suppliers could either limit supply or increase costs
|
|
•
|
|
Reservation of manufacturing capacity at our contract manufacturers by other companies, inside or outside of our industry, could either limit supply or increase costs
|
|
•
|
|
Industry consolidation occurring within one or more component supplier markets, such as the semiconductor market, could either limit supply or increase costs
|
|
•
|
|
New markets in which we participate may grow quickly, which may make it difficult to quickly obtain significant component capacity
|
|
•
|
|
As we acquire companies and new technologies, we may be dependent, at least initially, on unfamiliar supply chains or relatively small supply partners
|
|
•
|
|
We face competition for certain components that are supply-constrained, from existing competitors, and companies in other markets
|
|
•
|
|
Difficulties in integrating the operations, systems, technologies, products, and personnel of the acquired companies, particularly companies with large and widespread operations and/or complex products
|
|
•
|
|
Diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations resulting from acquisitions
|
|
•
|
|
Potential difficulties in completing projects associated with in-process research and development intangibles
|
|
•
|
|
Difficulties in entering markets in which we have no or limited direct prior experience and where competitors in such markets have stronger market positions
|
|
•
|
|
Initial dependence on unfamiliar supply chains or relatively small supply partners
|
|
•
|
|
Insufficient revenue to offset increased expenses associated with acquisitions
|
|
•
|
|
The potential loss of key employees, customers, distributors, vendors and other business partners of the companies we acquire following and continuing after announcement of acquisition plans
|
|
•
|
|
Issue common stock that would dilute our current shareholders’ percentage ownership
|
|
•
|
|
Use a substantial portion of our cash resources, or incur debt
|
|
•
|
|
Significantly increase our interest expense, leverage and debt service requirements if we incur additional debt to pay for an acquisition
|
|
•
|
|
Assume liabilities
|
|
•
|
|
Record goodwill and intangible assets that are subject to impairment testing on a regular basis and potential periodic impairment charges
|
|
•
|
|
Incur amortization expenses related to certain intangible assets
|
|
•
|
|
Incur tax expenses related to the effect of acquisitions on our intercompany R&D cost sharing arrangement and legal structure
|
|
•
|
|
Incur large and immediate write-offs and restructuring and other related expenses
|
|
•
|
|
Become subject to intellectual property or other litigation
|
|
•
|
|
Foreign currency exchange rates
|
|
•
|
|
Political or social unrest
|
|
•
|
|
Economic instability or weakness or natural disasters in a specific country or region,
including the current economic challenges in China and global economic ramifications of Chinese economic difficulties; instability as a result of Brexit; environmental and trade protection measures and other legal and regulatory requirements, some of which may affect our ability to import our products, to export our products from, or sell our products in various countries
|
|
•
|
|
Political considerations that affect service provider and government spending patterns
|
|
•
|
|
Health or similar issues, such as a pandemic or epidemic
|
|
•
|
|
Difficulties in staffing and managing international operations
|
|
•
|
|
Adverse tax consequences, including imposition of withholding or other taxes on our global operations
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Americas
|
|
EMEA
|
|
APJC
|
San Jose, California, USA
|
|
Amsterdam, Netherlands
|
|
Singapore
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
|
(a)
|
Cisco common stock is traded on the NASDAQ Global Select Market under the symbol CSCO. Information regarding quarterly cash dividends declared on Cisco’s common stock during
fiscal 2017
and
2016
may be found in Supplementary Financial Data on page 118 of this report. There were 42,344
registered shareholders as of
September 1, 2017
. The high and low common stock sales prices per share for each period were as follows:
|
|
FISCAL 2017
|
|
FISCAL 2016
|
||||||||||||
Fiscal Quarter
|
High
|
|
Low
|
|
High
|
|
Low
|
||||||||
First quarter
|
$
|
31.95
|
|
|
$
|
29.86
|
|
|
$
|
29.38
|
|
|
$
|
23.03
|
|
Second quarter
|
$
|
31.89
|
|
|
$
|
29.12
|
|
|
$
|
29.49
|
|
|
$
|
22.47
|
|
Third quarter
|
$
|
34.53
|
|
|
$
|
30.42
|
|
|
$
|
28.70
|
|
|
$
|
22.46
|
|
Fourth quarter
|
$
|
34.60
|
|
|
$
|
30.37
|
|
|
$
|
31.15
|
|
|
$
|
25.81
|
|
(b)
|
Not applicable.
|
(c)
|
Issuer purchases of equity securities (in millions, except per-share amounts):
|
Period
|
Total
Number of
Shares
Purchased
|
|
Average Price Paid
per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs
|
|
Approximate Dollar Value of Shares
That May Yet Be Purchased
Under the Plans or Programs
|
||||||
April 30, 2017 to May 27, 2017
|
5
|
|
|
$
|
31.64
|
|
|
5
|
|
|
$
|
12,747
|
|
May 28, 2017 to June 24, 2017
|
16
|
|
|
$
|
31.67
|
|
|
16
|
|
|
$
|
12,222
|
|
June 25, 2017 to July 29, 2017
|
17
|
|
|
$
|
31.55
|
|
|
17
|
|
|
$
|
11,697
|
|
Total
|
38
|
|
|
$
|
31.61
|
|
|
38
|
|
|
|
|
July 2012
|
|
July 2013
|
|
July 2014
|
|
July 2015
|
|
July 2016
|
|
July 2017
|
||||||||||||
Cisco Systems, Inc.
|
$
|
100.00
|
|
|
$
|
167.41
|
|
|
$
|
175.84
|
|
|
$
|
198.08
|
|
|
$
|
220.38
|
|
|
$
|
235.57
|
|
S&P 500
|
$
|
100.00
|
|
|
$
|
124.81
|
|
|
$
|
149.03
|
|
|
$
|
159.89
|
|
|
$
|
170.86
|
|
|
$
|
198.42
|
|
S&P Information Technology
|
$
|
100.00
|
|
|
$
|
111.14
|
|
|
$
|
145.84
|
|
|
$
|
160.62
|
|
|
$
|
176.85
|
|
|
$
|
230.20
|
|
Item 6.
|
Selected Financial Data
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
(1)(2)
|
|
July 25, 2015
(1)
|
|
July 26, 2014
(3)
|
|
July 27, 2013
(4)
|
||||||||||
Revenue
|
$
|
48,005
|
|
|
$
|
49,247
|
|
|
$
|
49,161
|
|
|
$
|
47,142
|
|
|
$
|
48,607
|
|
Net income
|
$
|
9,609
|
|
|
$
|
10,739
|
|
|
$
|
8,981
|
|
|
$
|
7,853
|
|
|
$
|
9,983
|
|
Net income per share—basic
|
$
|
1.92
|
|
|
$
|
2.13
|
|
|
$
|
1.76
|
|
|
$
|
1.50
|
|
|
$
|
1.87
|
|
Net income per share—diluted
|
$
|
1.90
|
|
|
$
|
2.11
|
|
|
$
|
1.75
|
|
|
$
|
1.49
|
|
|
$
|
1.86
|
|
Shares used in per-share calculation—basic
|
5,010
|
|
|
5,053
|
|
|
5,104
|
|
|
5,234
|
|
|
5,329
|
|
|||||
Shares used in per-share calculation—diluted
|
5,049
|
|
|
5,088
|
|
|
5,146
|
|
|
5,281
|
|
|
5,380
|
|
|||||
Cash dividends declared per common share
|
$
|
1.10
|
|
|
$
|
0.94
|
|
|
$
|
0.80
|
|
|
$
|
0.72
|
|
|
$
|
0.62
|
|
Net cash provided by operating activities
|
$
|
13,876
|
|
|
$
|
13,570
|
|
|
$
|
12,552
|
|
|
$
|
12,332
|
|
|
$
|
12,894
|
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
July 26, 2014
|
|
July 27, 2013
|
||||||||||
Cash and cash equivalents and investments
|
$
|
70,492
|
|
|
$
|
65,756
|
|
|
$
|
60,416
|
|
|
$
|
52,074
|
|
|
$
|
50,610
|
|
Total assets
|
$
|
129,818
|
|
|
$
|
121,652
|
|
|
$
|
113,373
|
|
|
$
|
105,070
|
|
|
$
|
101,138
|
|
Debt
|
$
|
33,717
|
|
|
$
|
28,643
|
|
|
$
|
25,354
|
|
|
$
|
20,845
|
|
|
$
|
16,158
|
|
Deferred revenue
|
$
|
18,494
|
|
|
$
|
16,472
|
|
|
$
|
15,183
|
|
|
$
|
14,142
|
|
|
$
|
13,423
|
|
(1)
|
In the second quarter of fiscal 2016, Cisco completed the sale of the SP Video CPE Business. As a result, revenue from this portion of the Service Provider Video product category will not recur in future periods. The sale resulted in a pre-tax gain of
$253 million
net of certain transaction costs. The years ended
July 30, 2016
and
July 25, 2015
include SP Video CPE Business revenue of
$504 million
and
$1,846 million
, respectively.
|
(2)
|
In fiscal 2016 Cisco recognized total tax benefits of $593 million for the following: i) the Internal Revenue Service (IRS) and Cisco settled all outstanding items related to Cisco’s federal income tax returns for fiscal 2008 through fiscal 2010, as a result of which Cisco recorded a net tax benefit of
$367 million
ii) the Protecting Americans from Tax Hikes Act of 2015 reinstated the U.S. federal R&D tax credit permanently, as a result of which Cisco recognized tax benefits of
$226 million
of which $81 million related to fiscal 2015 R&D expenses.
|
(3)
|
In the second quarter of fiscal 2014, Cisco recorded a pre-tax charge of $655 million to product cost of sales, which corresponds to $526 million, net of tax, for the expected remediation cost for certain products sold in prior fiscal years containing memory components manufactured by a single supplier between 2005 and 2010. See Note 12(f) to the Consolidated Financial Statements.
|
(4)
|
In the second quarter of fiscal 2013, the IRS and Cisco settled all outstanding items related to Cisco’s federal income tax returns for fiscal 2002 through fiscal 2007. As a result of the settlement, Cisco recorded a net tax benefit of $794 million. Also during the second quarter of fiscal 2013, the American Taxpayer Relief Act of 2012 reinstated the U.S. federal R&D tax credit, retroactive to January 1, 2012. As a result, Cisco recognized tax benefits of $184 million in fiscal 2013, of which $72 million related to fiscal 2012 R&D expenses.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
|
Years Ended
|
|
||||||||||||||||||
|
July 29, 2017
|
|
July 30, 2016
|
|
Variance
|
|
July 29, 2017
|
|
July 30, 2016
|
|
Variance
|
|
||||||||||
Revenue
(1)
|
$
|
12,133
|
|
|
$
|
12,638
|
|
|
(4.0
|
)%
|
|
$
|
48,005
|
|
|
$
|
49,247
|
|
|
(2.5
|
)%
|
|
Gross margin percentage
|
62.2
|
%
|
|
63.1
|
%
|
|
(0.9
|
)
|
pts
|
63.0
|
%
|
|
62.9
|
%
|
|
0.1
|
|
pts
|
||||
Research and development
|
$
|
1,499
|
|
|
$
|
1,601
|
|
|
(6.4
|
)%
|
|
$
|
6,059
|
|
|
$
|
6,296
|
|
|
(3.8
|
)%
|
|
Sales and marketing
|
$
|
2,318
|
|
|
$
|
2,443
|
|
|
(5.1
|
)%
|
|
$
|
9,184
|
|
|
$
|
9,619
|
|
|
(4.5
|
)%
|
|
General and administrative
|
$
|
495
|
|
|
$
|
533
|
|
|
(7.1
|
)%
|
|
$
|
1,993
|
|
|
$
|
1,814
|
|
|
9.9
|
%
|
|
Total R&D, sales and marketing, general and administrative
|
$
|
4,312
|
|
|
$
|
4,577
|
|
|
(5.8
|
)%
|
|
$
|
17,236
|
|
|
$
|
17,729
|
|
|
(2.8
|
)%
|
|
Total as a percentage of revenue
|
35.5
|
%
|
|
36.2
|
%
|
|
(0.7
|
)
|
pts
|
35.9
|
%
|
|
36.0
|
%
|
|
(0.1
|
)
|
pts
|
||||
Amortization of purchased intangible assets included in operating expenses
|
$
|
58
|
|
|
$
|
82
|
|
|
(29.3
|
)%
|
|
$
|
259
|
|
|
$
|
303
|
|
|
(14.5
|
)%
|
|
Restructuring and other charges included in operating expenses
|
$
|
142
|
|
|
$
|
13
|
|
|
992.3
|
%
|
|
$
|
756
|
|
|
$
|
268
|
|
|
182.1
|
%
|
|
Operating income as a percentage of revenue
|
25.0
|
%
|
|
26.1
|
%
|
|
(1.1
|
)
|
pts
|
24.9
|
%
|
|
25.7
|
%
|
|
(0.8
|
)
|
pts
|
||||
Income tax percentage
|
23.8
|
%
|
|
17.1
|
%
|
|
6.7
|
|
pts
|
21.8
|
%
|
|
16.9
|
%
|
|
4.9
|
|
pts
|
||||
Net income
|
$
|
2,424
|
|
|
$
|
2,813
|
|
|
(13.8
|
)%
|
|
$
|
9,609
|
|
|
$
|
10,739
|
|
|
(10.5
|
)%
|
|
Net income as a percentage of revenue
|
20.0
|
%
|
|
22.3
|
%
|
|
(2.3
|
)
|
pts
|
20.0
|
%
|
|
21.8
|
%
|
|
(1.8
|
)
|
pts
|
||||
Earnings per share—diluted
|
$
|
0.48
|
|
|
$
|
0.56
|
|
|
(14.3
|
)%
|
|
$
|
1.90
|
|
|
$
|
2.11
|
|
|
(10.0
|
)%
|
|
|
|
Fiscal 2017
|
|
Fiscal 2016
|
Cash and cash equivalents and investments
|
|
$70,492
|
|
$65,756
|
Cash provided by operating activities
|
|
$13,876
|
|
$13,570
|
Deferred revenue
|
|
$18,494
|
|
$16,472
|
Repurchases of common stock—stock repurchase program
|
|
$3,706
|
|
$3,918
|
Dividends
|
|
$5,511
|
|
$4,750
|
Inventories
|
|
$1,616
|
|
$1,217
|
Annualized inventory turns
|
|
12.3
|
|
14.6
|
•
|
Persuasive evidence of an arrangement exists.
Contracts, Internet commerce agreements, and customer purchase orders are generally used to determine the existence of an arrangement.
|
•
|
Delivery has occurred.
Shipping documents and customer acceptance, when applicable, are used to verify delivery. For software, delivery is considered to have occurred upon unrestricted license access and license term commencement, when applicable.
|
•
|
The fee is fixed or determinable.
We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.
|
•
|
Collectibility is reasonably assured.
We assess collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history.
|
|
|
July 29, 2017
|
|
|
July 30, 2016
|
|
||
Allowance for doubtful accounts
|
|
$
|
211
|
|
|
$
|
249
|
|
Percentage of gross accounts receivable
|
|
3.9
|
%
|
|
4.1
|
%
|
||
Allowance for credit loss—lease receivables
|
|
$
|
162
|
|
|
$
|
230
|
|
Percentage of gross lease receivables
(1)
|
|
5.5
|
%
|
|
6.6
|
%
|
||
Allowance for credit loss—loan receivables
|
|
$
|
103
|
|
|
$
|
97
|
|
Percentage of gross loan receivables
|
|
2.3
|
%
|
|
2.8
|
%
|
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||||||
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Percent
|
|
Variance in Dollars
|
|
Variance in Percent
|
||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Product
|
|
$
|
35,705
|
|
|
$
|
37,254
|
|
|
$
|
37,750
|
|
|
$
|
(1,549
|
)
|
|
(4.2
|
)%
|
|
$
|
(496
|
)
|
|
(1.3
|
)%
|
Percentage of revenue
|
|
74.4
|
%
|
|
75.6
|
%
|
|
76.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service
|
|
12,300
|
|
|
11,993
|
|
|
11,411
|
|
|
307
|
|
|
2.6
|
%
|
|
582
|
|
|
5.1
|
%
|
|||||
Percentage of revenue
|
|
25.6
|
%
|
|
24.4
|
%
|
|
23.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
|
$
|
48,005
|
|
|
$
|
49,247
|
|
|
$
|
49,161
|
|
|
$
|
(1,242
|
)
|
|
(2.5
|
)%
|
|
$
|
86
|
|
|
0.2
|
%
|
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||||||
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Percent
|
|
Variance in Dollars
|
|
Variance in Percent
|
||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
|
$
|
28,351
|
|
|
$
|
29,392
|
|
|
$
|
29,626
|
|
|
$
|
(1,041
|
)
|
|
(3.5
|
)%
|
|
$
|
(234
|
)
|
|
(0.8
|
)%
|
Percentage of revenue
|
|
59.1
|
%
|
|
59.7
|
%
|
|
60.3
|
%
|
|
|
|
|
|
|
|
|
|||||||||
EMEA
|
|
12,004
|
|
|
12,302
|
|
|
12,348
|
|
|
(298
|
)
|
|
(2.4
|
)%
|
|
(46
|
)
|
|
(0.4
|
)%
|
|||||
Percentage of revenue
|
|
25.0
|
%
|
|
25.0
|
%
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|||||||||
APJC
|
|
7,650
|
|
|
7,553
|
|
|
7,187
|
|
|
97
|
|
|
1.3
|
%
|
|
366
|
|
|
5.1
|
%
|
|||||
Percentage of revenue
|
|
15.9
|
%
|
|
15.3
|
%
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
$
|
48,005
|
|
|
$
|
49,247
|
|
|
$
|
49,161
|
|
|
$
|
(1,242
|
)
|
|
(2.5
|
)%
|
|
$
|
86
|
|
|
0.2
|
%
|
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||||||
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Percent
|
|
Variance in Dollars
|
|
Variance in Percent
|
||||||||||||
Product revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
|
$
|
20,487
|
|
|
$
|
21,663
|
|
|
$
|
22,231
|
|
|
$
|
(1,176
|
)
|
|
(5.4
|
)%
|
|
$
|
(568
|
)
|
|
(2.6
|
)%
|
Percentage of product revenue
|
|
57.4
|
%
|
|
58.1
|
%
|
|
58.9
|
%
|
|
|
|
|
|
|
|
|
|||||||||
EMEA
|
|
9,369
|
|
|
9,682
|
|
|
9,882
|
|
|
(313
|
)
|
|
(3.2
|
)%
|
|
(200
|
)
|
|
(2.0
|
)%
|
|||||
Percentage of product revenue
|
|
26.2
|
%
|
|
26.0
|
%
|
|
26.2
|
%
|
|
|
|
|
|
|
|
|
|||||||||
APJC
|
|
5,849
|
|
|
5,909
|
|
|
5,637
|
|
|
(60
|
)
|
|
(1.0
|
)%
|
|
272
|
|
|
4.8
|
%
|
|||||
Percentage of product revenue
|
|
16.4
|
%
|
|
15.9
|
%
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
$
|
35,705
|
|
|
$
|
37,254
|
|
|
$
|
37,750
|
|
|
$
|
(1,549
|
)
|
|
(4.2
|
)%
|
|
$
|
(496
|
)
|
|
(1.3
|
)%
|
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||||||
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Percent
|
|
Variance in Dollars
|
|
Variance in Percent
|
||||||||||||
Product revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Switching
|
|
$
|
13,949
|
|
|
$
|
14,700
|
|
|
$
|
14,712
|
|
|
$
|
(751
|
)
|
|
(5.1
|
)%
|
|
$
|
(12
|
)
|
|
(0.1
|
)%
|
Percentage of product revenue
|
|
39.1
|
%
|
|
39.4
|
%
|
|
39.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NGN Routing
|
|
7,831
|
|
|
8,133
|
|
|
8,343
|
|
|
(302
|
)
|
|
(3.7
|
)%
|
|
(210
|
)
|
|
(2.5
|
)%
|
|||||
Percentage of product revenue
|
|
21.9
|
%
|
|
21.8
|
%
|
|
22.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Collaboration
|
|
4,278
|
|
|
4,352
|
|
|
4,004
|
|
|
(74
|
)
|
|
(1.7
|
)%
|
|
348
|
|
|
8.7
|
%
|
|||||
Percentage of product revenue
|
|
12.0
|
%
|
|
11.7
|
%
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Data Center
|
|
3,228
|
|
|
3,365
|
|
|
3,219
|
|
|
(137
|
)
|
|
(4.1
|
)%
|
|
146
|
|
|
4.5
|
%
|
|||||
Percentage of product revenue
|
|
9.0
|
%
|
|
9.0
|
%
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wireless
|
|
2,766
|
|
|
2,640
|
|
|
2,551
|
|
|
126
|
|
|
4.8
|
%
|
|
89
|
|
|
3.5
|
%
|
|||||
Percentage of product revenue
|
|
7.7
|
%
|
|
7.1
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Security
|
|
2,153
|
|
|
1,969
|
|
|
1,747
|
|
|
184
|
|
|
9.3
|
%
|
|
222
|
|
|
12.7
|
%
|
|||||
Percentage of product revenue
|
|
6.0
|
%
|
|
5.3
|
%
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service Provider Video
(1)
|
|
946
|
|
|
1,734
|
|
|
2,941
|
|
|
(788
|
)
|
|
(45.4
|
)%
|
|
(1,207
|
)
|
|
(41.0
|
)%
|
|||||
Percentage of product revenue
|
|
2.7
|
%
|
|
4.7
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other
|
|
554
|
|
|
361
|
|
|
233
|
|
|
193
|
|
|
53.5
|
%
|
|
128
|
|
|
54.9
|
%
|
|||||
Percentage of product revenue
|
|
1.6
|
%
|
|
1.0
|
%
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$
|
35,705
|
|
|
$
|
37,254
|
|
|
$
|
37,750
|
|
|
$
|
(1,549
|
)
|
|
(4.2
|
)%
|
|
$
|
(496
|
)
|
|
(1.3
|
)%
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||||||
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Percent
|
|
Variance in Dollars
|
|
Variance in Percent
|
||||||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
$
|
7,864
|
|
|
$
|
7,729
|
|
|
$
|
7,395
|
|
|
$
|
135
|
|
|
1.7
|
%
|
|
$
|
334
|
|
|
4.5
|
%
|
Percentage of service revenue
|
63.9
|
%
|
|
64.4
|
%
|
|
64.8
|
%
|
|
|
|
|
|
|
|
|
|||||||||
EMEA
|
2,635
|
|
|
2,620
|
|
|
2,466
|
|
|
15
|
|
|
0.6
|
%
|
|
154
|
|
|
6.2
|
%
|
|||||
Percentage of service revenue
|
21.4
|
%
|
|
21.9
|
%
|
|
21.6
|
%
|
|
|
|
|
|
|
|
|
|||||||||
APJC
|
1,801
|
|
|
1,644
|
|
|
1,550
|
|
|
157
|
|
|
9.5
|
%
|
|
94
|
|
|
6.1
|
%
|
|||||
Percentage of service revenue
|
14.7
|
%
|
|
13.7
|
%
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
$
|
12,300
|
|
|
$
|
11,993
|
|
|
$
|
11,411
|
|
|
$
|
307
|
|
|
2.6
|
%
|
|
$
|
582
|
|
|
5.1
|
%
|
|
AMOUNT
|
|
PERCENTAGE
|
|||||||||||||||||
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|||||||||
Gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Product
|
$
|
22,006
|
|
|
$
|
23,093
|
|
|
$
|
22,373
|
|
|
61.6
|
%
|
|
62.0
|
%
|
|
59.3
|
%
|
Service
|
8,218
|
|
|
7,867
|
|
|
7,308
|
|
|
66.8
|
%
|
|
65.6
|
%
|
|
64.0
|
%
|
|||
Total
|
$
|
30,224
|
|
|
$
|
30,960
|
|
|
$
|
29,681
|
|
|
63.0
|
%
|
|
62.9
|
%
|
|
60.4
|
%
|
|
|
Product Gross Margin Percentage
|
|
Fiscal 2016
|
|
62.0
|
%
|
Product pricing
|
|
(2.1
|
)%
|
Mix of products sold
|
|
(0.3
|
)%
|
Supplier component remediation adjustment
|
|
(0.1
|
)%
|
Other
|
|
(0.1
|
)%
|
Productivity
(1)
|
|
1.4
|
%
|
SP Video CPE Business impact
|
|
0.8
|
%
|
Fiscal 2017
|
|
61.6
|
%
|
|
|
Product Gross Margin Percentage
|
|
Fiscal 2015
|
|
59.3
|
%
|
Productivity
(1)
|
|
3.3
|
%
|
SP Video CPE Business impact
|
|
1.5
|
%
|
Amortization of purchased intangible assets
|
|
0.6
|
%
|
Rockstar patent portfolio charge
|
|
0.5
|
%
|
Product pricing
|
|
(2.2
|
)%
|
Mix of products sold
|
|
(0.8
|
)%
|
Supplier component remediation charge/adjustment
|
|
(0.2
|
)%
|
Fiscal 2016
|
|
62.0
|
%
|
|
|
AMOUNT
|
|
PERCENTAGE
|
|||||||||||||||||
Years Ended
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|||||||||
Gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Americas
|
|
$
|
18,284
|
|
|
$
|
18,986
|
|
|
$
|
18,638
|
|
|
64.5
|
%
|
|
64.6
|
%
|
|
62.9
|
%
|
EMEA
|
|
7,855
|
|
|
7,998
|
|
|
7,731
|
|
|
65.4
|
%
|
|
65.0
|
%
|
|
62.6
|
%
|
|||
APJC
|
|
4,741
|
|
|
4,620
|
|
|
4,313
|
|
|
62.0
|
%
|
|
61.2
|
%
|
|
60.0
|
%
|
|||
Segment total
|
|
30,880
|
|
|
31,604
|
|
|
30,682
|
|
|
64.3
|
%
|
|
64.2
|
%
|
|
62.4
|
%
|
|||
Unallocated corporate items
(1)
|
|
(656
|
)
|
|
(644
|
)
|
|
(1,001
|
)
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
30,224
|
|
|
$
|
30,960
|
|
|
$
|
29,681
|
|
|
63.0
|
%
|
|
62.9
|
%
|
|
60.4
|
%
|
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||||||
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Percent
|
|
Variance in Dollars
|
|
Variance in Percent
|
||||||||||||
Research and development
|
|
$
|
6,059
|
|
|
$
|
6,296
|
|
|
$
|
6,207
|
|
|
$
|
(237
|
)
|
|
(3.8
|
)%
|
|
$
|
89
|
|
|
1.4
|
%
|
Percentage of revenue
|
|
12.6
|
%
|
|
12.8
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Sales and marketing
|
|
9,184
|
|
|
9,619
|
|
|
9,821
|
|
|
(435
|
)
|
|
(4.5
|
)%
|
|
(202
|
)
|
|
(2.1
|
)%
|
|||||
Percentage of revenue
|
|
19.1
|
%
|
|
19.5
|
%
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|||||||||
General and administrative
|
|
1,993
|
|
|
1,814
|
|
|
2,040
|
|
|
179
|
|
|
9.9
|
%
|
|
(226
|
)
|
|
(11.1
|
)%
|
|||||
Percentage of revenue
|
|
4.2
|
%
|
|
3.7
|
%
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
$
|
17,236
|
|
|
$
|
17,729
|
|
|
$
|
18,068
|
|
|
$
|
(493
|
)
|
|
(2.8
|
)%
|
|
$
|
(339
|
)
|
|
(1.9
|
)%
|
Percentage of revenue
|
|
35.9
|
%
|
|
36.0
|
%
|
|
36.8
|
%
|
|
|
|
|
|
|
|
|
Years Ended
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Cost of sales—product
|
|
$
|
85
|
|
|
$
|
70
|
|
|
$
|
50
|
|
Cost of sales—service
|
|
134
|
|
|
142
|
|
|
157
|
|
|||
Share-based compensation expense in cost of sales
|
|
219
|
|
|
212
|
|
|
207
|
|
|||
Research and development
|
|
529
|
|
|
470
|
|
|
448
|
|
|||
Sales and marketing
|
|
542
|
|
|
545
|
|
|
559
|
|
|||
General and administrative
|
|
236
|
|
|
205
|
|
|
228
|
|
|||
Restructuring and other charges
|
|
3
|
|
|
26
|
|
|
(2
|
)
|
|||
Share-based compensation expense in operating expenses
|
|
1,310
|
|
|
1,246
|
|
|
1,233
|
|
|||
Total share-based compensation expense
|
|
$
|
1,529
|
|
|
$
|
1,458
|
|
|
$
|
1,440
|
|
Years Ended
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Amortization of purchased intangible assets:
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
$
|
556
|
|
|
$
|
577
|
|
|
$
|
814
|
|
Operating expenses
|
|
|
|
|
|
|
||||||
Amortization of purchased intangible assets
|
|
259
|
|
|
303
|
|
|
359
|
|
|||
Restructuring and other charges
|
|
38
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
853
|
|
|
$
|
880
|
|
|
$
|
1,173
|
|
Years Ended
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Operating income
|
|
$
|
11,973
|
|
|
$
|
12,660
|
|
|
$
|
10,770
|
|
Operating income as a percentage of revenue
|
|
24.9
|
%
|
|
25.7
|
%
|
|
21.9
|
%
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Dollars
|
||||||||||
Interest income
|
$
|
1,338
|
|
|
$
|
1,005
|
|
|
$
|
769
|
|
|
$
|
333
|
|
|
$
|
236
|
|
Interest expense
|
(861
|
)
|
|
(676
|
)
|
|
(566
|
)
|
|
(185
|
)
|
|
(110
|
)
|
|||||
Interest income (expense), net
|
$
|
477
|
|
|
$
|
329
|
|
|
$
|
203
|
|
|
$
|
148
|
|
|
$
|
126
|
|
|
Years Ended
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Variance in Dollars
|
|
Variance in Dollars
|
||||||||||
Gains (losses) on investments, net:
|
|
|
|
|
|
|
|
|
|
||||||||||
Publicly traded equity securities
|
$
|
(45
|
)
|
|
$
|
33
|
|
|
$
|
116
|
|
|
$
|
(78
|
)
|
|
$
|
(83
|
)
|
Fixed income securities
|
(42
|
)
|
|
(34
|
)
|
|
41
|
|
|
(8
|
)
|
|
(75
|
)
|
|||||
Total available-for-sale investments
|
(87
|
)
|
|
(1
|
)
|
|
157
|
|
|
(86
|
)
|
|
(158
|
)
|
|||||
Privately held companies
|
(46
|
)
|
|
(35
|
)
|
|
82
|
|
|
(11
|
)
|
|
(117
|
)
|
|||||
Net gains (losses) on investments
|
(133
|
)
|
|
(36
|
)
|
|
239
|
|
|
(97
|
)
|
|
(275
|
)
|
|||||
Other gains (losses), net
|
(30
|
)
|
|
(33
|
)
|
|
(11
|
)
|
|
3
|
|
|
(22
|
)
|
|||||
Other income (loss), net
|
$
|
(163
|
)
|
|
$
|
(69
|
)
|
|
$
|
228
|
|
|
$
|
(94
|
)
|
|
$
|
(297
|
)
|
|
July 29, 2017
|
|
July 30, 2016
|
|
Increase (Decrease)
|
||||||
Cash and cash equivalents
|
$
|
11,708
|
|
|
$
|
7,631
|
|
|
$
|
4,077
|
|
Fixed income securities
|
57,077
|
|
|
56,621
|
|
|
456
|
|
|||
Publicly traded equity securities
|
1,707
|
|
|
1,504
|
|
|
203
|
|
|||
Total
|
$
|
70,492
|
|
|
$
|
65,756
|
|
|
$
|
4,736
|
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Net cash provided by operating activities
|
$
|
13,876
|
|
|
$
|
13,570
|
|
|
$
|
12,552
|
|
Acquisition of property and equipment
|
(964
|
)
|
|
(1,146
|
)
|
|
(1,227
|
)
|
|||
Free cash flow
|
$
|
12,912
|
|
|
$
|
12,424
|
|
|
$
|
11,325
|
|
|
|
DIVIDENDS
|
|
STOCK REPURCHASE PROGRAM
|
|
TOTAL
|
|||||||||||||||||
Years Ended
|
|
Per Share
|
|
Amount
|
|
Shares
|
|
Weighted-Average Price per Share
|
|
Amount
|
|
Amount
|
|||||||||||
July 29, 2017
|
|
$
|
1.10
|
|
|
$
|
5,511
|
|
|
118
|
|
|
$
|
31.38
|
|
|
$
|
3,706
|
|
|
$
|
9,217
|
|
July 30, 2016
|
|
$
|
0.94
|
|
|
$
|
4,750
|
|
|
148
|
|
|
$
|
26.45
|
|
|
$
|
3,918
|
|
|
$
|
8,668
|
|
July 25, 2015
|
|
$
|
0.80
|
|
|
$
|
4,086
|
|
|
155
|
|
|
$
|
27.22
|
|
|
$
|
4,234
|
|
|
$
|
8,320
|
|
|
July 29, 2017
|
|
July 30, 2016
|
|
Increase (Decrease)
|
||||||
Accounts receivable, net
|
$
|
5,146
|
|
|
$
|
5,847
|
|
|
$
|
(701
|
)
|
|
July 29, 2017
|
|
July 30, 2016
|
|
Increase (Decrease)
|
||||||
Inventories
|
$
|
1,616
|
|
|
$
|
1,217
|
|
|
$
|
399
|
|
Annualized inventory turns
|
12.3
|
|
|
14.6
|
|
|
(2.3
|
)
|
|||
Purchase commitments with contract manufacturers and suppliers
|
$
|
4,640
|
|
|
$
|
3,896
|
|
|
$
|
744
|
|
|
July 29, 2017
|
|
July 30, 2016
|
|
Increase (Decrease)
|
||||||
Lease receivables, net
|
$
|
2,650
|
|
|
$
|
3,070
|
|
|
$
|
(420
|
)
|
Loan receivables, net
|
4,457
|
|
|
3,349
|
|
|
1,108
|
|
|||
Financed service contracts, net
|
2,487
|
|
|
2,011
|
|
|
476
|
|
|||
Total, net
|
$
|
9,594
|
|
|
$
|
8,430
|
|
|
$
|
1,164
|
|
|
Maturity Date
|
|
July 29, 2017
|
|
July 30, 2016
|
|
||||
Senior notes:
|
|
|
|
|
|
|
||||
Floating-rate notes:
|
|
|
|
|
|
|
||||
Three-month LIBOR plus 0.28%
|
March 3, 2017
|
(1)
|
$
|
—
|
|
|
$
|
1,000
|
|
|
Three-month LIBOR plus 0.60%
|
February 21, 2018
|
|
1,000
|
|
|
1,000
|
|
|
||
Three-month LIBOR plus 0.31%
|
June 15, 2018
|
|
900
|
|
|
900
|
|
|
||
Three-month LIBOR plus 0.50%
|
March 1, 2019
|
|
500
|
|
|
500
|
|
|
||
Three-month LIBOR plus 0.34%
|
September 20, 2019
|
(2)
|
500
|
|
|
—
|
|
|
||
Fixed-rate notes:
|
|
|
|
|
|
|
||||
1.10%
|
March 3, 2017
|
(1)
|
—
|
|
|
2,400
|
|
|
||
3.15%
|
March 14, 2017
|
(1)
|
—
|
|
|
750
|
|
|
||
1.40%
|
February 28, 2018
|
|
1,250
|
|
|
1,250
|
|
|
||
1.65%
|
June 15, 2018
|
|
1,600
|
|
|
1,600
|
|
|
||
4.95%
|
February 15, 2019
|
|
2,000
|
|
|
2,000
|
|
|
||
1.60%
|
February 28, 2019
|
|
1,000
|
|
|
1,000
|
|
|
||
2.125%
|
March 1, 2019
|
|
1,750
|
|
|
1,750
|
|
|
||
1.40%
|
September 20, 2019
|
(2)
|
1,500
|
|
|
—
|
|
|
||
4.45%
|
January 15, 2020
|
|
2,500
|
|
|
2,500
|
|
|
||
2.45%
|
June 15, 2020
|
|
1,500
|
|
|
1,500
|
|
|
||
2.20%
|
February 28, 2021
|
|
2,500
|
|
|
2,500
|
|
|
||
2.90%
|
March 4, 2021
|
|
500
|
|
|
500
|
|
|
||
1.85%
|
September 20, 2021
|
(2)
|
2,000
|
|
|
—
|
|
|
||
3.00%
|
June 15, 2022
|
|
500
|
|
|
500
|
|
|
||
2.60%
|
February 28, 2023
|
|
500
|
|
|
500
|
|
|
||
2.20%
|
September 20, 2023
|
(2)
|
750
|
|
|
—
|
|
|
||
3.625%
|
March 4, 2024
|
|
1,000
|
|
|
1,000
|
|
|
||
3.50%
|
June 15, 2025
|
|
500
|
|
|
500
|
|
|
||
2.95%
|
February 28, 2026
|
|
750
|
|
|
750
|
|
|
||
2.50%
|
September 20, 2026
|
(2)
|
1,500
|
|
|
—
|
|
|
||
5.90%
|
February 15, 2039
|
|
2,000
|
|
|
2,000
|
|
|
||
5.50%
|
January 15, 2040
|
|
2,000
|
|
|
2,000
|
|
|
||
Total
|
|
|
$
|
30,500
|
|
|
$
|
28,400
|
|
|
|
July 29, 2017
|
|
July 30, 2016
|
|
Increase (Decrease)
|
||||||
Service
|
$
|
11,302
|
|
|
$
|
10,621
|
|
|
$
|
681
|
|
Product:
|
|
|
|
|
|
|
|||||
Deferred revenue related to recurring software and subscription offers
|
4,971
|
|
|
3,308
|
|
|
1,663
|
|
|||
Other product deferred revenue
|
2,221
|
|
|
2,543
|
|
|
(322
|
)
|
|||
Total product deferred revenue
|
7,192
|
|
|
5,851
|
|
|
1,341
|
|
|||
Total
|
$
|
18,494
|
|
|
$
|
16,472
|
|
|
$
|
2,022
|
|
Reported as:
|
|
|
|
|
|
||||||
Current
|
$
|
10,821
|
|
|
$
|
10,155
|
|
|
$
|
666
|
|
Noncurrent
|
7,673
|
|
|
6,317
|
|
|
1,356
|
|
|||
Total
|
$
|
18,494
|
|
|
$
|
16,472
|
|
|
$
|
2,022
|
|
|
PAYMENTS DUE BY PERIOD
|
||||||||||||||||||
July 29, 2017
|
Total
|
|
Less than 1 Year
|
|
1 to 3 Years
|
|
3 to 5 Years
|
|
More than 5 Years
|
||||||||||
Operating leases
|
$
|
1,237
|
|
|
$
|
417
|
|
|
$
|
467
|
|
|
$
|
210
|
|
|
$
|
143
|
|
Purchase commitments with contract manufacturers and suppliers
|
4,640
|
|
|
4,620
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|||||
Other purchase obligations
|
1,987
|
|
|
750
|
|
|
867
|
|
|
284
|
|
|
86
|
|
|||||
Senior notes
|
30,500
|
|
|
4,750
|
|
|
11,250
|
|
|
5,500
|
|
|
9,000
|
|
|||||
Other long-term liabilities
|
1,179
|
|
|
—
|
|
|
209
|
|
|
99
|
|
|
871
|
|
|||||
Total by period
|
$
|
39,543
|
|
|
$
|
10,537
|
|
|
$
|
12,813
|
|
|
$
|
6,093
|
|
|
$
|
10,100
|
|
Other long-term liabilities (uncertainty in the timing of future payments)
|
1,521
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
$
|
41,064
|
|
|
|
|
|
|
|
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
VALUATION OF
SECURITIES
GIVEN AN X%
DECREASE IN
EACH STOCK’S PRICE
|
|
FAIR VALUE
AS OF JULY 29, 2017
|
|
VALUATION OF
SECURITIES
GIVEN AN X%
INCREASE IN
EACH STOCK’S PRICE
|
||||||||
|
(30)%
|
|
(20)%
|
|
(10)%
|
|
10%
|
|
20%
|
|
30%
|
||
Publicly traded equity securities
|
$1,195
|
|
$1,366
|
|
$1,536
|
|
$1,707
|
|
$1,878
|
|
$2,048
|
|
$2,219
|
|
VALUATION OF
SECURITIES
GIVEN AN X%
DECREASE IN
EACH STOCK’S PRICE
|
|
FAIR VALUE
AS OF JULY 30, 2016 |
|
VALUATION OF
SECURITIES
GIVEN AN X%
INCREASE IN
EACH STOCK’S PRICE
|
||||||||
|
(30)%
|
|
(20)%
|
|
(10)%
|
|
10%
|
|
20%
|
|
30%
|
||
Publicly traded equity securities
|
$1,053
|
|
$1,203
|
|
$1,354
|
|
$1,504
|
|
$1,654
|
|
$1,805
|
|
$1,955
|
|
July 29, 2017
|
|
July 30, 2016
|
||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
||||||||
Forward contracts:
|
|
|
|
|
|
|
|
||||||||
Purchased
|
$
|
2,562
|
|
|
$
|
39
|
|
|
$
|
3,079
|
|
|
$
|
(41
|
)
|
Sold
|
$
|
729
|
|
|
$
|
(2
|
)
|
|
$
|
651
|
|
|
$
|
—
|
|
Option contracts:
|
|
|
|
|
|
|
|
||||||||
Purchased
|
$
|
528
|
|
|
$
|
7
|
|
|
$
|
688
|
|
|
$
|
4
|
|
Sold
|
$
|
486
|
|
|
$
|
(1
|
)
|
|
$
|
620
|
|
|
$
|
(10
|
)
|
Item 8.
|
Financial Statements and Supplementary Data
|
/S/
C
HARLES
H
.
R
OBBINS
|
|
/S/
K
ELLY
A
.
K
RAMER
|
Charles H. Robbins
|
|
Kelly A. Kramer
|
Chief Executive Officer and Director
|
|
Executive Vice President and Chief Financial Officer
|
September 7, 2017
|
|
September 7, 2017
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
11,708
|
|
|
$
|
7,631
|
|
Investments
|
58,784
|
|
|
58,125
|
|
||
Accounts receivable, net of allowance for doubtful accounts
of $211 at July 29, 2017 and $249 at July 30, 2016
|
5,146
|
|
|
5,847
|
|
||
Inventories
|
1,616
|
|
|
1,217
|
|
||
Financing receivables, net
|
4,856
|
|
|
4,272
|
|
||
Other current assets
|
1,593
|
|
|
1,627
|
|
||
Total current assets
|
83,703
|
|
|
78,719
|
|
||
Property and equipment, net
|
3,322
|
|
|
3,506
|
|
||
Financing receivables, net
|
4,738
|
|
|
4,158
|
|
||
Goodwill
|
29,766
|
|
|
26,625
|
|
||
Purchased intangible assets, net
|
2,539
|
|
|
2,501
|
|
||
Deferred tax assets
|
4,239
|
|
|
4,299
|
|
||
Other assets
|
1,511
|
|
|
1,844
|
|
||
TOTAL ASSETS
|
$
|
129,818
|
|
|
$
|
121,652
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt
|
$
|
7,992
|
|
|
$
|
4,160
|
|
Accounts payable
|
1,385
|
|
|
1,056
|
|
||
Income taxes payable
|
98
|
|
|
517
|
|
||
Accrued compensation
|
2,895
|
|
|
2,951
|
|
||
Deferred revenue
|
10,821
|
|
|
10,155
|
|
||
Other current liabilities
|
4,392
|
|
|
6,072
|
|
||
Total current liabilities
|
27,583
|
|
|
24,911
|
|
||
Long-term debt
|
25,725
|
|
|
24,483
|
|
||
Income taxes payable
|
1,250
|
|
|
925
|
|
||
Deferred revenue
|
7,673
|
|
|
6,317
|
|
||
Other long-term liabilities
|
1,450
|
|
|
1,431
|
|
||
Total liabilities
|
63,681
|
|
|
58,067
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
||||
Equity:
|
|
|
|
||||
Cisco shareholders’ equity:
|
|
|
|
||||
Preferred stock, no par value: 5 shares authorized; none issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,983 and 5,029 shares issued and outstanding at July 29, 2017 and July 30, 2016, respectively
|
45,253
|
|
|
44,516
|
|
||
Retained earnings
|
20,838
|
|
|
19,396
|
|
||
Accumulated other comprehensive income (loss)
|
46
|
|
|
(326
|
)
|
||
Total Cisco shareholders’ equity
|
66,137
|
|
|
63,586
|
|
||
Noncontrolling interests
|
—
|
|
|
(1
|
)
|
||
Total equity
|
66,137
|
|
|
63,585
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
129,818
|
|
|
$
|
121,652
|
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
REVENUE:
|
|
|
|
|
|
||||||
Product
|
$
|
35,705
|
|
|
$
|
37,254
|
|
|
$
|
37,750
|
|
Service
|
12,300
|
|
|
11,993
|
|
|
11,411
|
|
|||
Total revenue
|
48,005
|
|
|
49,247
|
|
|
49,161
|
|
|||
COST OF SALES:
|
|
|
|
|
|
||||||
Product
|
13,699
|
|
|
14,161
|
|
|
15,377
|
|
|||
Service
|
4,082
|
|
|
4,126
|
|
|
4,103
|
|
|||
Total cost of sales
|
17,781
|
|
|
18,287
|
|
|
19,480
|
|
|||
GROSS MARGIN
|
30,224
|
|
|
30,960
|
|
|
29,681
|
|
|||
OPERATING EXPENSES:
|
|
|
|
|
|
||||||
Research and development
|
6,059
|
|
|
6,296
|
|
|
6,207
|
|
|||
Sales and marketing
|
9,184
|
|
|
9,619
|
|
|
9,821
|
|
|||
General and administrative
|
1,993
|
|
|
1,814
|
|
|
2,040
|
|
|||
Amortization of purchased intangible assets
|
259
|
|
|
303
|
|
|
359
|
|
|||
Restructuring and other charges
|
756
|
|
|
268
|
|
|
484
|
|
|||
Total operating expenses
|
18,251
|
|
|
18,300
|
|
|
18,911
|
|
|||
OPERATING INCOME
|
11,973
|
|
|
12,660
|
|
|
10,770
|
|
|||
Interest income
|
1,338
|
|
|
1,005
|
|
|
769
|
|
|||
Interest expense
|
(861
|
)
|
|
(676
|
)
|
|
(566
|
)
|
|||
Other income (loss), net
|
(163
|
)
|
|
(69
|
)
|
|
228
|
|
|||
Interest and other income (loss), net
|
314
|
|
|
260
|
|
|
431
|
|
|||
INCOME BEFORE PROVISION FOR INCOME TAXES
|
12,287
|
|
|
12,920
|
|
|
11,201
|
|
|||
Provision for income taxes
|
2,678
|
|
|
2,181
|
|
|
2,220
|
|
|||
NET INCOME
|
$
|
9,609
|
|
|
$
|
10,739
|
|
|
$
|
8,981
|
|
|
|
|
|
|
|
|
|
||||
Net income per share:
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
1.92
|
|
|
$
|
2.13
|
|
|
$
|
1.76
|
|
Diluted
|
$
|
1.90
|
|
|
$
|
2.11
|
|
|
$
|
1.75
|
|
Shares used in per-share calculation:
|
|
|
|
|
|
|
|
||||
Basic
|
5,010
|
|
|
5,053
|
|
|
5,104
|
|
|||
Diluted
|
5,049
|
|
|
5,088
|
|
|
5,146
|
|
|||
|
|
|
|
|
|
|
|
||||
Cash dividends declared per common share
|
$
|
1.10
|
|
|
$
|
0.94
|
|
|
$
|
0.80
|
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Net income
|
$
|
9,609
|
|
|
$
|
10,739
|
|
|
$
|
8,981
|
|
Available-for-sale investments:
|
|
|
|
|
|
||||||
Change in net unrealized gains and losses, net of tax benefit (expense) of $74, $(49), and $14 for fiscal 2017, 2016, and 2015, respectively
|
(89
|
)
|
|
92
|
|
|
(12
|
)
|
|||
Net (gains) losses reclassified into earnings, net of tax expense (benefit) of $(37), $0, and $57 for fiscal 2017, 2016, and 2015, respectively
|
50
|
|
|
1
|
|
|
(100
|
)
|
|||
|
(39
|
)
|
|
93
|
|
|
(112
|
)
|
|||
Cash flow hedging instruments:
|
|
|
|
|
|
||||||
Change in unrealized gains and losses, net of tax benefit (expense) of $(5), $7, and $19 for fiscal 2017, 2016, and 2015, respectively
|
17
|
|
|
(59
|
)
|
|
(140
|
)
|
|||
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $(5), $(4), and $(18) for fiscal 2017, 2016, and 2015, respectively
|
74
|
|
|
16
|
|
|
136
|
|
|||
|
91
|
|
|
(43
|
)
|
|
(4
|
)
|
|||
Net change in cumulative translation adjustment and actuarial gains and losses, net of tax benefit (expense) of $(13), $(42), and $63 for fiscal 2017, 2016, and 2015, respectively
|
321
|
|
|
(447
|
)
|
|
(498
|
)
|
|||
Other comprehensive income (loss)
|
373
|
|
|
(397
|
)
|
|
(614
|
)
|
|||
Comprehensive income
|
9,982
|
|
|
10,342
|
|
|
8,367
|
|
|||
Comprehensive (income) loss attributable to noncontrolling interests
|
(1
|
)
|
|
10
|
|
|
(2
|
)
|
|||
Comprehensive income attributable to Cisco Systems, Inc.
|
$
|
9,981
|
|
|
$
|
10,352
|
|
|
$
|
8,365
|
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
9,609
|
|
|
$
|
10,739
|
|
|
$
|
8,981
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation, amortization, and other
|
2,286
|
|
|
2,150
|
|
|
2,442
|
|
|||
Share-based compensation expense
|
1,526
|
|
|
1,458
|
|
|
1,440
|
|
|||
Provision for receivables
|
(8
|
)
|
|
(9
|
)
|
|
134
|
|
|||
Deferred income taxes
|
(124
|
)
|
|
(194
|
)
|
|
(23
|
)
|
|||
Excess tax benefits from share-based compensation
|
(153
|
)
|
|
(129
|
)
|
|
(128
|
)
|
|||
(Gains) losses on divestitures, investments and other, net
|
154
|
|
|
(317
|
)
|
|
(258
|
)
|
|||
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
|
|
|
|
|
|
||||||
Accounts receivable
|
756
|
|
|
(404
|
)
|
|
(413
|
)
|
|||
Inventories
|
(394
|
)
|
|
315
|
|
|
(116
|
)
|
|||
Financing receivables
|
(1,038
|
)
|
|
(150
|
)
|
|
(634
|
)
|
|||
Other assets
|
15
|
|
|
(37
|
)
|
|
(370
|
)
|
|||
Accounts payable
|
311
|
|
|
(65
|
)
|
|
87
|
|
|||
Income taxes, net
|
60
|
|
|
(300
|
)
|
|
53
|
|
|||
Accrued compensation
|
(110
|
)
|
|
(101
|
)
|
|
7
|
|
|||
Deferred revenue
|
1,683
|
|
|
1,219
|
|
|
1,275
|
|
|||
Other liabilities
|
(697
|
)
|
|
(605
|
)
|
|
75
|
|
|||
Net cash provided by operating activities
|
13,876
|
|
|
13,570
|
|
|
12,552
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of investments
|
(42,702
|
)
|
|
(46,760
|
)
|
|
(43,975
|
)
|
|||
Proceeds from sales of investments
|
28,827
|
|
|
28,778
|
|
|
20,237
|
|
|||
Proceeds from maturities of investments
|
12,143
|
|
|
14,115
|
|
|
15,293
|
|
|||
Acquisition of businesses, net of cash and cash equivalents acquired
|
(3,324
|
)
|
|
(3,161
|
)
|
|
(326
|
)
|
|||
Proceeds from business divestiture
|
—
|
|
|
372
|
|
|
—
|
|
|||
Purchases of investments in privately held companies
|
(222
|
)
|
|
(256
|
)
|
|
(222
|
)
|
|||
Return of investments in privately held companies
|
203
|
|
|
91
|
|
|
288
|
|
|||
Acquisition of property and equipment
|
(964
|
)
|
|
(1,146
|
)
|
|
(1,227
|
)
|
|||
Proceeds from sales of property and equipment
|
7
|
|
|
41
|
|
|
22
|
|
|||
Other
|
39
|
|
|
(191
|
)
|
|
(178
|
)
|
|||
Net cash used in investing activities
|
(5,993
|
)
|
|
(8,117
|
)
|
|
(10,088
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Issuances of common stock
|
708
|
|
|
1,127
|
|
|
2,016
|
|
|||
Repurchases of common stock - repurchase program
|
(3,685
|
)
|
|
(3,909
|
)
|
|
(4,324
|
)
|
|||
Shares repurchased for tax withholdings on vesting of restricted stock units
|
(619
|
)
|
|
(557
|
)
|
|
(502
|
)
|
|||
Short-term borrowings, original maturities less than 90 days, net
|
2,497
|
|
|
(4
|
)
|
|
(4
|
)
|
|||
Issuances of debt
|
6,980
|
|
|
6,978
|
|
|
4,981
|
|
|||
Repayments of debt
|
(4,151
|
)
|
|
(3,863
|
)
|
|
(508
|
)
|
|||
Excess tax benefits from share-based compensation
|
153
|
|
|
129
|
|
|
128
|
|
|||
Dividends paid
|
(5,511
|
)
|
|
(4,750
|
)
|
|
(4,086
|
)
|
|||
Other
|
(178
|
)
|
|
150
|
|
|
(14
|
)
|
|||
Net cash used in financing activities
|
(3,806
|
)
|
|
(4,699
|
)
|
|
(2,313
|
)
|
|||
Net increase
in cash and cash equivalents
|
4,077
|
|
|
754
|
|
|
151
|
|
|||
Cash and cash equivalents, beginning of fiscal year
|
7,631
|
|
|
6,877
|
|
|
6,726
|
|
|||
Cash and cash equivalents, end of fiscal year
|
$
|
11,708
|
|
|
$
|
7,631
|
|
|
$
|
6,877
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
897
|
|
|
$
|
859
|
|
|
$
|
760
|
|
Cash paid for income taxes, net
|
$
|
2,742
|
|
|
$
|
2,675
|
|
|
$
|
2,190
|
|
|
Shares of
Common
Stock
|
|
Common Stock
and
Additional
Paid-In Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total Cisco
Shareholders’
Equity
|
|
Non-controlling
Interests
|
|
Total Equity
|
|||||||||||||
BALANCE AT JULY 26, 2014
|
5,107
|
|
|
$
|
41,884
|
|
|
$
|
14,093
|
|
|
$
|
677
|
|
|
$
|
56,654
|
|
|
$
|
7
|
|
|
$
|
56,661
|
|
Net income
|
|
|
|
|
8,981
|
|
|
|
|
8,981
|
|
|
|
|
8,981
|
|
||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
(616
|
)
|
|
(616
|
)
|
|
2
|
|
|
(614
|
)
|
|||||||||
Issuance of common stock
|
153
|
|
|
2,016
|
|
|
|
|
|
|
2,016
|
|
|
|
|
2,016
|
|
|||||||||
Repurchase of common stock
|
(155
|
)
|
|
(1,291
|
)
|
|
(2,943
|
)
|
|
|
|
(4,234
|
)
|
|
|
|
(4,234
|
)
|
||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units
|
(20
|
)
|
|
(502
|
)
|
|
|
|
|
|
(502
|
)
|
|
|
|
(502
|
)
|
|||||||||
Cash dividends declared ($0.80 per common share)
|
|
|
|
|
(4,086
|
)
|
|
|
|
(4,086
|
)
|
|
|
|
(4,086
|
)
|
||||||||||
Tax effects from employee stock incentive plans
|
|
|
41
|
|
|
|
|
|
|
41
|
|
|
|
|
41
|
|
||||||||||
Share-based compensation
|
|
|
1,440
|
|
|
|
|
|
|
1,440
|
|
|
|
|
1,440
|
|
||||||||||
Purchase acquisitions and other
|
|
|
4
|
|
|
|
|
|
|
4
|
|
|
|
|
4
|
|
||||||||||
BALANCE AT JULY 25, 2015
|
5,085
|
|
|
$
|
43,592
|
|
|
$
|
16,045
|
|
|
$
|
61
|
|
|
$
|
59,698
|
|
|
$
|
9
|
|
|
$
|
59,707
|
|
Net income
|
|
|
|
|
10,739
|
|
|
|
|
10,739
|
|
|
|
|
10,739
|
|
||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
(387
|
)
|
|
(387
|
)
|
|
(10
|
)
|
|
(397
|
)
|
|||||||||
Issuance of common stock
|
113
|
|
|
1,127
|
|
|
|
|
|
|
1,127
|
|
|
|
|
1,127
|
|
|||||||||
Repurchase of common stock
|
(148
|
)
|
|
(1,280
|
)
|
|
(2,638
|
)
|
|
|
|
(3,918
|
)
|
|
|
|
(3,918
|
)
|
||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units
|
(21
|
)
|
|
(557
|
)
|
|
|
|
|
|
(557
|
)
|
|
|
|
(557
|
)
|
|||||||||
Cash dividends declared ($0.94 per common share)
|
|
|
|
|
(4,750
|
)
|
|
|
|
(4,750
|
)
|
|
|
|
(4,750
|
)
|
||||||||||
Tax effects from employee stock incentive plans
|
|
|
30
|
|
|
|
|
|
|
30
|
|
|
|
|
30
|
|
||||||||||
Share-based compensation
|
|
|
1,458
|
|
|
|
|
|
|
1,458
|
|
|
|
|
1,458
|
|
||||||||||
Purchase acquisitions and other
|
|
|
146
|
|
|
|
|
|
|
146
|
|
|
|
|
146
|
|
||||||||||
BALANCE AT JULY 30, 2016
|
5,029
|
|
|
$
|
44,516
|
|
|
$
|
19,396
|
|
|
$
|
(326
|
)
|
|
$
|
63,586
|
|
|
$
|
(1
|
)
|
|
$
|
63,585
|
|
Net income
|
|
|
|
|
9,609
|
|
|
|
|
9,609
|
|
|
|
|
9,609
|
|
||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
372
|
|
|
372
|
|
|
1
|
|
|
373
|
|
|||||||||
Issuance of common stock
|
92
|
|
|
708
|
|
|
|
|
|
|
708
|
|
|
|
|
708
|
|
|||||||||
Repurchase of common stock
|
(118
|
)
|
|
(1,050
|
)
|
|
(2,656
|
)
|
|
|
|
(3,706
|
)
|
|
|
|
(3,706
|
)
|
||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units
|
(20
|
)
|
|
(619
|
)
|
|
|
|
|
|
(619
|
)
|
|
|
|
(619
|
)
|
|||||||||
Cash dividends declared ($1.10
per common share)
|
|
|
|
|
(5,511
|
)
|
|
|
|
(5,511
|
)
|
|
|
|
(5,511
|
)
|
||||||||||
Tax effects from employee stock incentive plans
|
|
|
(10
|
)
|
|
|
|
|
|
(10
|
)
|
|
|
|
(10
|
)
|
||||||||||
Share-based compensation
|
|
|
1,540
|
|
|
|
|
|
|
1,540
|
|
|
|
|
1,540
|
|
||||||||||
Purchase acquisitions and other
|
|
|
168
|
|
|
|
|
|
|
168
|
|
|
|
|
168
|
|
||||||||||
BALANCE AT JULY 29, 2017
|
4,983
|
|
|
$
|
45,253
|
|
|
$
|
20,838
|
|
|
$
|
46
|
|
|
$
|
66,137
|
|
|
$
|
—
|
|
|
$
|
66,137
|
|
|
Shares of
Common
Stock
|
|
Common Stock
and Additional
Paid-In Capital
|
|
Retained
Earnings
|
|
Total Cisco
Shareholders’
Equity
|
|||||||
Repurchases of common stock under the repurchase program
|
4,709
|
|
|
$
|
24,945
|
|
|
$
|
75,358
|
|
|
$
|
100,303
|
|
1.
|
Basis of Presentation
|
2.
|
Summary of Significant Accounting Policies
|
Asset Category
|
|
Period
|
Buildings
|
|
25 years
|
Building improvements
|
|
10 years
|
Leasehold improvements
|
|
Shorter of remaining lease term or up to 10 years
|
Computer equipment and related software
|
|
30 to 36 months
|
Production, engineering, and other equipment
|
|
Up to 5 years
|
Operating lease assets
|
|
Based on lease term
|
Furniture and fixtures
|
|
5 years
|
▪
|
Revenue recognition
|
▪
|
Allowances for accounts receivable, sales returns, and financing receivables
|
▪
|
Inventory valuation and liability for purchase commitments with contract manufacturers and suppliers
|
▪
|
Loss contingencies and product warranties
|
▪
|
Fair value measurements and other-than-temporary impairments
|
▪
|
Goodwill and purchased intangible asset impairments
|
▪
|
Income taxes
|
|
|
Current Revenue Standard
|
|
New Revenue Standard
|
Software arrangements:
|
|
|
|
|
Perpetual software licenses
|
|
Upfront
|
|
Upfront
|
Term software licenses
|
|
Ratable
|
|
Upfront
|
Security software licenses
|
|
Ratable
|
|
Ratable
|
Enterprise license agreements
|
|
Ratable
|
|
Upfront
|
Software support services
|
|
Ratable
|
|
Ratable
|
Software-as-a-service
|
|
Ratable
|
|
Ratable
|
Two-tier distribution
|
|
Sell-Through
|
|
Sell-In
|
3.
|
Acquisitions and Divestitures
|
(a)
|
Acquisition Summary
|
Fiscal 2017
|
Purchase Consideration
|
|
Net Tangible Assets Acquired (Liabilities Assumed)
|
|
Purchased Intangible Assets
|
|
Goodwill
|
||||||||
CloudLock
|
$
|
249
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
213
|
|
AppDynamics
|
3,258
|
|
|
(175
|
)
|
|
785
|
|
|
2,648
|
|
||||
MindMeld
|
104
|
|
|
(11
|
)
|
|
51
|
|
|
64
|
|
||||
Others (four in total)
|
26
|
|
|
—
|
|
|
6
|
|
|
20
|
|
||||
Total
|
$
|
3,637
|
|
|
$
|
(186
|
)
|
|
$
|
878
|
|
|
$
|
2,945
|
|
Fiscal 2016
|
Purchase Consideration
|
|
Net Tangible Assets Acquired (Liabilities Assumed)
|
|
Purchased Intangible Assets
|
|
Goodwill
|
||||||||
MaintenanceNet
|
$
|
105
|
|
|
$
|
(21
|
)
|
|
$
|
65
|
|
|
$
|
61
|
|
OpenDNS
|
545
|
|
|
(9
|
)
|
|
61
|
|
|
493
|
|
||||
Lancope
|
410
|
|
|
(34
|
)
|
|
121
|
|
|
323
|
|
||||
Acano
|
528
|
|
|
(27
|
)
|
|
103
|
|
|
452
|
|
||||
Leaba
|
219
|
|
|
(18
|
)
|
|
96
|
|
|
141
|
|
||||
Jasper
|
1,234
|
|
|
5
|
|
|
361
|
|
|
868
|
|
||||
CliQr
|
225
|
|
|
(3
|
)
|
|
69
|
|
|
159
|
|
||||
Others (five in total)
|
112
|
|
|
(17
|
)
|
|
64
|
|
|
65
|
|
||||
Total
|
$
|
3,378
|
|
|
$
|
(124
|
)
|
|
$
|
940
|
|
|
$
|
2,562
|
|
Fiscal 2015
|
Purchase Consideration
|
|
Net Tangible Assets Acquired
(Liabilities Assumed)
|
|
Purchased Intangible Assets
|
|
Goodwill
|
||||||||
Metacloud
|
$
|
149
|
|
|
$
|
(7
|
)
|
|
$
|
29
|
|
|
$
|
127
|
|
Others (five in total)
|
185
|
|
|
(13
|
)
|
|
70
|
|
|
128
|
|
||||
Total
|
$
|
334
|
|
|
$
|
(20
|
)
|
|
$
|
99
|
|
|
$
|
255
|
|
(b)
|
Acquisition of Viptela
|
(c)
|
Divestiture of SP Video CPE Business
|
4.
|
Goodwill and Purchased Intangible Assets
|
(a)
|
Goodwill
|
|
Balance at July 30, 2016
|
|
Acquisitions
|
|
Divestiture
|
|
Other
|
|
Balance at July 29, 2017
|
||||||||||
Americas
|
$
|
16,529
|
|
|
$
|
2,042
|
|
|
$
|
—
|
|
|
$
|
120
|
|
|
$
|
18,691
|
|
EMEA
|
6,269
|
|
|
740
|
|
|
—
|
|
|
48
|
|
|
7,057
|
|
|||||
APJC
|
3,827
|
|
|
163
|
|
|
—
|
|
|
28
|
|
|
4,018
|
|
|||||
Total
|
$
|
26,625
|
|
|
$
|
2,945
|
|
|
$
|
—
|
|
|
$
|
196
|
|
|
$
|
29,766
|
|
|
Balance at July 25, 2015
|
|
Acquisitions
|
|
Divestiture
|
|
Other
|
|
Balance at July 30, 2016
|
||||||||||
Americas
|
$
|
15,212
|
|
|
$
|
1,607
|
|
|
$
|
(126
|
)
|
|
$
|
(164
|
)
|
|
$
|
16,529
|
|
EMEA
|
5,791
|
|
|
554
|
|
|
(12
|
)
|
|
(64
|
)
|
|
6,269
|
|
|||||
APJC
|
3,466
|
|
|
401
|
|
|
(3
|
)
|
|
(37
|
)
|
|
3,827
|
|
|||||
Total
|
$
|
24,469
|
|
|
$
|
2,562
|
|
|
$
|
(141
|
)
|
|
$
|
(265
|
)
|
|
$
|
26,625
|
|
(b)
|
Purchased Intangible Assets
|
|
FINITE LIVES
|
|
INDEFINITE
LIVES
|
|
TOTAL
|
||||||||||||||||||||
|
TECHNOLOGY
|
|
CUSTOMER
RELATIONSHIPS
|
|
OTHER
|
|
IPR&D
|
|
|||||||||||||||||
Fiscal 2017
|
Weighted-
Average Useful
Life (in Years)
|
|
Amount
|
|
Weighted-
Average Useful
Life (in Years)
|
|
Amount
|
|
Weighted-
Average Useful
Life (in Years)
|
|
Amount
|
|
Amount
|
|
Amount
|
||||||||||
CloudLock
|
6.0
|
|
$
|
32
|
|
|
4.0
|
|
$
|
3
|
|
|
1.5
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
36
|
|
AppDynamics
|
4.0
|
|
525
|
|
|
7.0
|
|
235
|
|
|
2.3
|
|
25
|
|
|
—
|
|
|
785
|
|
|||||
MindMeld
|
4.0
|
|
51
|
|
|
1.0
|
|
—
|
|
|
0.0
|
|
—
|
|
|
—
|
|
|
51
|
|
|||||
Others (four in total)
|
3.0
|
|
6
|
|
|
0.0
|
|
—
|
|
|
0.0
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Total
|
|
|
$
|
614
|
|
|
|
|
$
|
238
|
|
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
878
|
|
|
FINITE LIVES
|
|
INDEFINITE
LIVES
|
|
TOTAL
|
||||||||||||||||||||
|
TECHNOLOGY
|
|
CUSTOMER
RELATIONSHIPS
|
|
OTHER
|
|
IPR&D
|
|
|||||||||||||||||
Fiscal 2016
|
Weighted-
Average Useful
Life (in Years)
|
|
Amount
|
|
Weighted-
Average Useful
Life (in Years)
|
|
Amount
|
|
Weighted-
Average Useful
Life (in Years)
|
|
Amount
|
|
Amount
|
|
Amount
|
||||||||||
MaintenanceNet
|
5.0
|
|
$
|
50
|
|
|
5.0
|
|
$
|
2
|
|
|
2.0
|
|
$
|
2
|
|
|
$
|
11
|
|
|
$
|
65
|
|
OpenDNS
|
5.0
|
|
43
|
|
|
7.0
|
|
15
|
|
|
1.0
|
|
2
|
|
|
1
|
|
|
61
|
|
|||||
Lancope
|
5.0
|
|
79
|
|
|
6.0
|
|
29
|
|
|
3.0
|
|
3
|
|
|
10
|
|
|
121
|
|
|||||
Acano
|
5.0
|
|
9
|
|
|
5.0
|
|
12
|
|
|
0.0
|
|
—
|
|
|
82
|
|
|
103
|
|
|||||
Leaba
|
0.0
|
|
—
|
|
|
0.0
|
|
—
|
|
|
0.0
|
|
—
|
|
|
96
|
|
|
96
|
|
|||||
Jasper
|
6.0
|
|
240
|
|
|
7.0
|
|
75
|
|
|
2.0
|
|
23
|
|
|
23
|
|
|
361
|
|
|||||
CliQr
|
6.0
|
|
65
|
|
|
6.0
|
|
3
|
|
|
2.0
|
|
1
|
|
|
—
|
|
|
69
|
|
|||||
Others (five in total)
|
4.1
|
|
58
|
|
|
6.3
|
|
6
|
|
|
0.0
|
|
—
|
|
|
—
|
|
|
64
|
|
|||||
Total
|
|
|
$
|
544
|
|
|
|
|
$
|
142
|
|
|
|
|
$
|
31
|
|
|
$
|
223
|
|
|
$
|
940
|
|
July 29, 2017
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
||||||
Purchased intangible assets with finite lives:
|
|
|
|
|
|
|
||||||
Technology
|
|
$
|
3,182
|
|
|
$
|
(1,386
|
)
|
|
$
|
1,796
|
|
Customer relationships
|
|
1,353
|
|
|
(765
|
)
|
|
588
|
|
|||
Other
|
|
82
|
|
|
(38
|
)
|
|
44
|
|
|||
Total purchased intangible assets with finite lives
|
|
4,617
|
|
|
(2,189
|
)
|
|
2,428
|
|
|||
In-process research and development, with indefinite lives
|
|
111
|
|
|
—
|
|
|
111
|
|
|||
Total
|
|
$
|
4,728
|
|
|
$
|
(2,189
|
)
|
|
$
|
2,539
|
|
July 30, 2016
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
||||||
Purchased intangible assets with finite lives:
|
|
|
|
|
|
|
||||||
Technology
|
|
$
|
3,038
|
|
|
$
|
(1,391
|
)
|
|
$
|
1,647
|
|
Customer relationships
|
|
1,793
|
|
|
(1,203
|
)
|
|
590
|
|
|||
Other
|
|
85
|
|
|
(43
|
)
|
|
42
|
|
|||
Total purchased intangible assets with finite lives
|
|
4,916
|
|
|
(2,637
|
)
|
|
2,279
|
|
|||
In-process research and development, with indefinite lives
|
|
222
|
|
|
—
|
|
|
222
|
|
|||
Total
|
|
$
|
5,138
|
|
|
$
|
(2,637
|
)
|
|
$
|
2,501
|
|
Years Ended
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Amortization of purchased intangible assets:
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
$
|
556
|
|
|
$
|
577
|
|
|
$
|
814
|
|
Operating expenses
|
|
|
|
|
|
|
||||||
Amortization of purchased intangible assets
|
|
259
|
|
|
303
|
|
|
359
|
|
|||
Restructuring and other charges
|
|
38
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
853
|
|
|
$
|
880
|
|
|
$
|
1,173
|
|
Fiscal Year
|
Amount
|
||
2018
|
$
|
790
|
|
2019
|
700
|
|
|
2020
|
483
|
|
|
2021
|
286
|
|
|
2022
|
102
|
|
|
Thereafter
|
67
|
|
|
Total
|
$
|
2,428
|
|
5.
|
Restructuring and Other Charges
|
|
|
FISCAL 2015 AND
PRIOR YEAR PLANS
|
|
FISCAL 2017 PLAN
|
|
|
||||||||||||||
|
|
Employee
Severance
|
|
Other
|
|
Employee
Severance
|
|
Other
|
|
Total
|
||||||||||
Liability as of July 26, 2014
|
|
$
|
40
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69
|
|
Charges
|
|
464
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
484
|
|
|||||
Cash payments
|
|
(442
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(459
|
)
|
|||||
Non-cash items
|
|
(2
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Liability as of July 25, 2015
|
|
60
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|||||
Charges
|
|
225
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
268
|
|
|||||
Cash payments
|
|
(264
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(279
|
)
|
|||||
Non-cash items
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|||||
Liability as of July 30, 2016
|
|
21
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Charges
|
|
—
|
|
|
—
|
|
|
625
|
|
|
131
|
|
|
756
|
|
|||||
Cash payments
|
|
(16
|
)
|
|
(8
|
)
|
|
(553
|
)
|
|
(29
|
)
|
|
(606
|
)
|
|||||
Non-cash items
|
|
(4
|
)
|
|
(9
|
)
|
|
1
|
|
|
(66
|
)
|
|
(78
|
)
|
|||||
Liability as of July 29, 2017
|
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
73
|
|
|
$
|
36
|
|
|
$
|
117
|
|
6.
|
Balance Sheet Details
|
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
Inventories:
|
|
|
|
|
||||
Raw materials
|
|
$
|
289
|
|
|
$
|
91
|
|
Work in process
|
|
1
|
|
|
—
|
|
||
Finished goods:
|
|
|
|
|
||||
Distributor inventory and deferred cost of sales
|
|
451
|
|
|
457
|
|
||
Manufactured finished goods
|
|
552
|
|
|
415
|
|
||
Total finished goods
|
|
1,003
|
|
|
872
|
|
||
Service-related spares
|
|
300
|
|
|
236
|
|
||
Demonstration systems
|
|
23
|
|
|
18
|
|
||
Total
|
|
$
|
1,616
|
|
|
$
|
1,217
|
|
Property and equipment, net:
|
|
|
|
|
||||
Gross property and equipment:
|
|
|
|
|
||||
Land, buildings, and building and leasehold improvements
|
|
$
|
4,926
|
|
|
$
|
4,778
|
|
Computer equipment and related software
|
|
1,258
|
|
|
1,288
|
|
||
Production, engineering, and other equipment
|
|
5,707
|
|
|
5,658
|
|
||
Operating lease assets
|
|
356
|
|
|
296
|
|
||
Furniture and fixtures
|
|
572
|
|
|
543
|
|
||
Total gross property and equipment
|
|
12,819
|
|
|
12,563
|
|
||
Less: accumulated depreciation and amortization
|
|
(9,497
|
)
|
|
(9,057
|
)
|
||
Total
|
|
$
|
3,322
|
|
|
$
|
3,506
|
|
Deferred revenue:
|
|
|
|
|
||||
Service
|
|
$
|
11,302
|
|
|
$
|
10,621
|
|
Product:
|
|
|
|
|
||||
Deferred revenue related to recurring software and subscription offers
|
|
4,971
|
|
|
3,308
|
|
||
Other product deferred revenue
|
|
2,221
|
|
|
2,543
|
|
||
Total product deferred revenue
|
|
7,192
|
|
|
5,851
|
|
||
Total
|
|
$
|
18,494
|
|
|
$
|
16,472
|
|
Reported as:
|
|
|
|
|
||||
Current
|
|
$
|
10,821
|
|
|
$
|
10,155
|
|
Noncurrent
|
|
7,673
|
|
|
6,317
|
|
||
Total
|
|
$
|
18,494
|
|
|
$
|
16,472
|
|
7.
|
Financing Receivables and Operating Leases
|
(a)
|
Financing Receivables
|
July 29, 2017
|
Lease
Receivables
|
|
Loan
Receivables
|
|
Financed Service
Contracts
|
|
Total
|
||||||||
Gross
|
$
|
2,784
|
|
|
$
|
4,560
|
|
|
$
|
2,517
|
|
|
$
|
9,861
|
|
Residual value
|
173
|
|
|
—
|
|
|
—
|
|
|
173
|
|
||||
Unearned income
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
||||
Allowance for credit loss
|
(162
|
)
|
|
(103
|
)
|
|
(30
|
)
|
|
(295
|
)
|
||||
Total, net
|
$
|
2,650
|
|
|
$
|
4,457
|
|
|
$
|
2,487
|
|
|
$
|
9,594
|
|
Reported as:
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
1,301
|
|
|
$
|
2,104
|
|
|
$
|
1,451
|
|
|
$
|
4,856
|
|
Noncurrent
|
1,349
|
|
|
2,353
|
|
|
1,036
|
|
|
4,738
|
|
||||
Total, net
|
$
|
2,650
|
|
|
$
|
4,457
|
|
|
$
|
2,487
|
|
|
$
|
9,594
|
|
July 30, 2016
|
Lease
Receivables
|
|
Loan
Receivables
|
|
Financed Service
Contracts
|
|
Total
|
||||||||
Gross
|
$
|
3,272
|
|
|
$
|
3,446
|
|
|
$
|
2,059
|
|
|
$
|
8,777
|
|
Residual value
|
202
|
|
|
—
|
|
|
—
|
|
|
202
|
|
||||
Unearned income
|
(174
|
)
|
|
—
|
|
|
—
|
|
|
(174
|
)
|
||||
Allowance for credit loss
|
(230
|
)
|
|
(97
|
)
|
|
(48
|
)
|
|
(375
|
)
|
||||
Total, net
|
$
|
3,070
|
|
|
$
|
3,349
|
|
|
$
|
2,011
|
|
|
$
|
8,430
|
|
Reported as:
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
1,490
|
|
|
$
|
1,580
|
|
|
$
|
1,202
|
|
|
$
|
4,272
|
|
Noncurrent
|
1,580
|
|
|
1,769
|
|
|
809
|
|
|
4,158
|
|
||||
Total, net
|
$
|
3,070
|
|
|
$
|
3,349
|
|
|
$
|
2,011
|
|
|
$
|
8,430
|
|
Fiscal Year
|
Amount
|
||
2018
|
$
|
1,318
|
|
2019
|
813
|
|
|
2020
|
438
|
|
|
2021
|
183
|
|
|
2022
|
9
|
|
|
Thereafter
|
23
|
|
|
Total
|
$
|
2,784
|
|
(b)
|
Credit Quality of Financing Receivables
|
|
INTERNAL CREDIT RISK RATING
|
||||||||||||||
July 29, 2017
|
1 to 4
|
|
5 to 6
|
|
7 and Higher
|
|
Total
|
||||||||
Lease receivables
|
$
|
1,408
|
|
|
$
|
1,181
|
|
|
$
|
50
|
|
|
$
|
2,639
|
|
Loan receivables
|
2,865
|
|
|
1,516
|
|
|
179
|
|
|
4,560
|
|
||||
Financed service contracts
|
1,593
|
|
|
902
|
|
|
22
|
|
|
2,517
|
|
||||
Total
|
$
|
5,866
|
|
|
$
|
3,599
|
|
|
$
|
251
|
|
|
$
|
9,716
|
|
|
INTERNAL CREDIT RISK RATING
|
||||||||||||||
July 30, 2016
|
1 to 4
|
|
5 to 6
|
|
7 and Higher
|
|
Total
|
||||||||
Lease receivables
|
$
|
1,703
|
|
|
$
|
1,294
|
|
|
$
|
101
|
|
|
$
|
3,098
|
|
Loan receivables
|
1,792
|
|
|
1,464
|
|
|
190
|
|
|
3,446
|
|
||||
Financed service contracts
|
1,271
|
|
|
774
|
|
|
14
|
|
|
2,059
|
|
||||
Total
|
$
|
4,766
|
|
|
$
|
3,532
|
|
|
$
|
305
|
|
|
$
|
8,603
|
|
|
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
July 29, 2017
|
31 - 60
|
|
61 - 90
|
|
91+
|
|
Total
Past Due
|
|
Current
|
|
Total
|
|
Nonaccrual
Financing
Receivables
|
|
Impaired
Financing
Receivables
|
||||||||||||||||
Lease receivables
|
$
|
160
|
|
|
$
|
60
|
|
|
$
|
216
|
|
|
$
|
436
|
|
|
$
|
2,203
|
|
|
$
|
2,639
|
|
|
$
|
14
|
|
|
$
|
14
|
|
Loan receivables
|
230
|
|
|
48
|
|
|
259
|
|
|
537
|
|
|
4,023
|
|
|
4,560
|
|
|
43
|
|
|
43
|
|
||||||||
Financed service contracts
|
160
|
|
|
77
|
|
|
523
|
|
|
760
|
|
|
1,757
|
|
|
2,517
|
|
|
18
|
|
|
2
|
|
||||||||
Total
|
$
|
550
|
|
|
$
|
185
|
|
|
$
|
998
|
|
|
$
|
1,733
|
|
|
$
|
7,983
|
|
|
$
|
9,716
|
|
|
$
|
75
|
|
|
$
|
59
|
|
|
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
July 30, 2016
|
31 - 60
|
|
61 - 90
|
|
91+
|
|
Total
Past Due
|
|
Current
|
|
Total
|
|
Nonaccrual
Financing
Receivables
|
|
Impaired
Financing
Receivables
|
||||||||||||||||
Lease receivables
|
$
|
111
|
|
|
$
|
25
|
|
|
$
|
251
|
|
|
$
|
387
|
|
|
$
|
2,711
|
|
|
$
|
3,098
|
|
|
$
|
60
|
|
|
$
|
60
|
|
Loan receivables
|
83
|
|
|
37
|
|
|
167
|
|
|
287
|
|
|
3,159
|
|
|
3,446
|
|
|
42
|
|
|
42
|
|
||||||||
Financed service contracts
|
159
|
|
|
124
|
|
|
436
|
|
|
719
|
|
|
1,340
|
|
|
2,059
|
|
|
30
|
|
|
10
|
|
||||||||
Total
|
$
|
353
|
|
|
$
|
186
|
|
|
$
|
854
|
|
|
$
|
1,393
|
|
|
$
|
7,210
|
|
|
$
|
8,603
|
|
|
$
|
132
|
|
|
$
|
112
|
|
(c)
|
Allowance for Credit Loss Rollforward
|
|
CREDIT LOSS ALLOWANCES
|
||||||||||||||
|
Lease
Receivables
|
|
Loan
Receivables
|
|
Financed Service
Contracts
|
|
Total
|
||||||||
Allowance for credit loss as of July 30, 2016
|
$
|
230
|
|
|
$
|
97
|
|
|
$
|
48
|
|
|
$
|
375
|
|
Provisions
|
(25
|
)
|
|
7
|
|
|
(17
|
)
|
|
(35
|
)
|
||||
Recoveries (write-offs), net
|
(37
|
)
|
|
(11
|
)
|
|
(1
|
)
|
|
(49
|
)
|
||||
Foreign exchange and other
|
(6
|
)
|
|
10
|
|
|
—
|
|
|
4
|
|
||||
Allowance for credit loss as of July 29, 2017
|
$
|
162
|
|
|
$
|
103
|
|
|
$
|
30
|
|
|
$
|
295
|
|
|
CREDIT LOSS ALLOWANCES
|
||||||||||||||
|
Lease
Receivables
|
|
Loan
Receivables
|
|
Financed Service
Contracts
|
|
Total
|
||||||||
Allowance for credit loss as of July 25, 2015
|
$
|
259
|
|
|
$
|
87
|
|
|
$
|
36
|
|
|
$
|
382
|
|
Provisions
|
(13
|
)
|
|
13
|
|
|
17
|
|
|
17
|
|
||||
Recoveries (write-offs), net
|
(10
|
)
|
|
—
|
|
|
(5
|
)
|
|
(15
|
)
|
||||
Foreign exchange and other
|
(6
|
)
|
|
(3
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Allowance for credit loss as of July 30, 2016
|
$
|
230
|
|
|
$
|
97
|
|
|
$
|
48
|
|
|
$
|
375
|
|
|
CREDIT LOSS ALLOWANCES
|
||||||||||||||
|
Lease
Receivables
|
|
Loan
Receivables
|
|
Financed Service
Contracts
|
|
Total
|
||||||||
Allowance for credit loss as of July 26, 2014
|
$
|
233
|
|
|
$
|
98
|
|
|
$
|
18
|
|
|
$
|
349
|
|
Provisions
|
45
|
|
|
(8
|
)
|
|
20
|
|
|
57
|
|
||||
Recoveries (write-offs), net
|
(7
|
)
|
|
1
|
|
|
(1
|
)
|
|
(7
|
)
|
||||
Foreign exchange and other
|
(12
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(17
|
)
|
||||
Allowance for credit loss as of July 25, 2015
|
$
|
259
|
|
|
$
|
87
|
|
|
$
|
36
|
|
|
$
|
382
|
|
(d)
|
Operating Leases
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
Operating lease assets
|
$
|
356
|
|
|
$
|
296
|
|
Accumulated depreciation
|
(212
|
)
|
|
(161
|
)
|
||
Operating lease assets, net
|
$
|
144
|
|
|
$
|
135
|
|
Fiscal Year
|
Amount
|
||
2018
|
$
|
183
|
|
2019
|
102
|
|
|
2020
|
39
|
|
|
2021
|
5
|
|
|
Thereafter
|
2
|
|
|
Total
|
$
|
331
|
|
8.
|
Investments
|
(a)
|
Summary of Available-for-Sale Investments
|
July 29, 2017
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government securities
|
$
|
19,880
|
|
|
$
|
3
|
|
|
$
|
(60
|
)
|
|
$
|
19,823
|
|
U.S. government agency securities
|
2,057
|
|
|
—
|
|
|
(5
|
)
|
|
2,052
|
|
||||
Non-U.S. government and agency securities
|
389
|
|
|
—
|
|
|
(1
|
)
|
|
388
|
|
||||
Corporate debt securities
|
31,626
|
|
|
202
|
|
|
(93
|
)
|
|
31,735
|
|
||||
U.S. agency mortgage-backed securities
|
2,037
|
|
|
3
|
|
|
(17
|
)
|
|
2,023
|
|
||||
Commercial paper
|
996
|
|
|
—
|
|
|
—
|
|
|
996
|
|
||||
Certificates of deposit
|
60
|
|
|
—
|
|
|
—
|
|
|
60
|
|
||||
Total fixed income securities
|
57,045
|
|
|
208
|
|
|
(176
|
)
|
|
57,077
|
|
||||
Publicly traded equity securities
|
1,180
|
|
|
554
|
|
|
(27
|
)
|
|
1,707
|
|
||||
Total
(1)
|
$
|
58,225
|
|
|
$
|
762
|
|
|
$
|
(203
|
)
|
|
$
|
58,784
|
|
|
|
|
|
|
|
|
|
||||||||
July 30, 2016
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government securities
|
$
|
26,473
|
|
|
$
|
73
|
|
|
$
|
(2
|
)
|
|
$
|
26,544
|
|
U.S. government agency securities
|
2,809
|
|
|
8
|
|
|
—
|
|
|
2,817
|
|
||||
Non-U.S. government and agency securities
|
1,096
|
|
|
4
|
|
|
—
|
|
|
1,100
|
|
||||
Corporate debt securities
|
24,044
|
|
|
263
|
|
|
(15
|
)
|
|
24,292
|
|
||||
U.S. agency mortgage-backed securities
|
1,846
|
|
|
22
|
|
|
—
|
|
|
1,868
|
|
||||
Total fixed income securities
|
56,268
|
|
|
370
|
|
|
(17
|
)
|
|
56,621
|
|
||||
Publicly traded equity securities
|
1,211
|
|
|
333
|
|
|
(40
|
)
|
|
1,504
|
|
||||
Total
(1)
|
$
|
57,479
|
|
|
$
|
703
|
|
|
$
|
(57
|
)
|
|
$
|
58,125
|
|
(b)
|
Gains and Losses on Available-for-Sale Investments
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Gross realized gains
|
$
|
114
|
|
|
$
|
152
|
|
|
$
|
221
|
|
Gross realized losses
|
(201
|
)
|
|
(153
|
)
|
|
(64
|
)
|
|||
Total
|
$
|
(87
|
)
|
|
$
|
(1
|
)
|
|
$
|
157
|
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Net gains/(losses) on investments in publicly traded equity securities
|
$
|
(45
|
)
|
|
$
|
33
|
|
|
$
|
116
|
|
Net gains/(losses) on investments in fixed income securities
|
(42
|
)
|
|
(34
|
)
|
|
41
|
|
|||
Total
|
$
|
(87
|
)
|
|
$
|
(1
|
)
|
|
$
|
157
|
|
|
UNREALIZED LOSSES
LESS THAN 12 MONTHS
|
|
UNREALIZED LOSSES
12 MONTHS OR GREATER
|
|
TOTAL
|
||||||||||||||||||
July 29, 2017
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government securities
|
$
|
14,962
|
|
|
$
|
(55
|
)
|
|
$
|
771
|
|
|
$
|
(5
|
)
|
|
$
|
15,733
|
|
|
$
|
(60
|
)
|
U.S. government agency securities
|
1,791
|
|
|
(4
|
)
|
|
130
|
|
|
(1
|
)
|
|
1,921
|
|
|
(5
|
)
|
||||||
Non-U.S. government and agency securities
|
368
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
368
|
|
|
(1
|
)
|
||||||
Corporate debt securities
|
9,487
|
|
|
(92
|
)
|
|
101
|
|
|
(1
|
)
|
|
9,588
|
|
|
(93
|
)
|
||||||
U.S. agency mortgage-backed securities
|
1,485
|
|
|
(16
|
)
|
|
38
|
|
|
(1
|
)
|
|
1,523
|
|
|
(17
|
)
|
||||||
Total fixed income securities
|
28,093
|
|
|
(168
|
)
|
|
1,040
|
|
|
(8
|
)
|
|
29,133
|
|
|
(176
|
)
|
||||||
Publicly traded equity securities
|
122
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
122
|
|
|
(27
|
)
|
||||||
Total
|
$
|
28,215
|
|
|
$
|
(195
|
)
|
|
$
|
1,040
|
|
|
$
|
(8
|
)
|
|
$
|
29,255
|
|
|
$
|
(203
|
)
|
|
UNREALIZED LOSSES
LESS THAN 12 MONTHS
|
|
UNREALIZED LOSSES
12 MONTHS OR GREATER
|
|
TOTAL
|
||||||||||||||||||
July 30, 2016
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government securities
|
$
|
2,414
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,414
|
|
|
$
|
(2
|
)
|
U.S. government agency securities
|
144
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
||||||
Non-U.S. government and agency securities
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
||||||
Corporate debt securities
|
2,499
|
|
|
(7
|
)
|
|
1,208
|
|
|
(8
|
)
|
|
3,707
|
|
|
(15
|
)
|
||||||
U.S. agency mortgage-backed securities
|
174
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174
|
|
|
—
|
|
||||||
Total fixed income securities
|
5,292
|
|
|
(9
|
)
|
|
1,208
|
|
|
(8
|
)
|
|
6,500
|
|
|
(17
|
)
|
||||||
Publicly traded equity securities
|
188
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
188
|
|
|
(40
|
)
|
||||||
Total
|
$
|
5,480
|
|
|
$
|
(49
|
)
|
|
$
|
1,208
|
|
|
$
|
(8
|
)
|
|
$
|
6,688
|
|
|
$
|
(57
|
)
|
(c)
|
Maturities of Fixed Income Securities
|
|
Amortized Cost
|
|
Fair Value
|
||||
Less than 1 year
|
$
|
15,497
|
|
|
$
|
15,489
|
|
Due in 1 to 2 years
|
13,983
|
|
|
13,965
|
|
||
Due in 2 to 5 years
|
21,980
|
|
|
22,077
|
|
||
Due after 5 years
|
3,548
|
|
|
3,523
|
|
||
Mortgage-backed securities with no single maturity
|
2,037
|
|
|
2,023
|
|
||
Total
|
$
|
57,045
|
|
|
$
|
57,077
|
|
(d)
|
Securities Lending
|
(e)
|
Investments in Privately Held Companies
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
Equity method investments
|
$
|
124
|
|
|
$
|
174
|
|
Cost method investments
|
859
|
|
|
829
|
|
||
Total
|
$
|
983
|
|
|
$
|
1,003
|
|
9.
|
Fair Value
|
(a)
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|
JULY 29, 2017
|
|
JULY 30, 2016
|
|||||||||||||||||||||||||||||
|
FAIR VALUE MEASUREMENTS
|
|
FAIR VALUE MEASUREMENTS
|
|||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Balance
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Balance
|
|||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Money market funds
|
$
|
9,567
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,567
|
|
|
$
|
6,111
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,111
|
|
|
U.S. government securities
|
—
|
|
|
139
|
|
|
—
|
|
|
139
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Corporate debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
|||||||||
Commercial paper
|
—
|
|
|
160
|
|
|
—
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Certificates of deposit
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Available-for-sale investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
U.S. government securities
|
—
|
|
|
19,823
|
|
|
—
|
|
|
19,823
|
|
|
—
|
|
|
26,544
|
|
|
—
|
|
|
26,544
|
|
|||||||||
U.S. government agency securities
|
—
|
|
|
2,052
|
|
|
—
|
|
|
2,052
|
|
|
—
|
|
|
2,817
|
|
|
—
|
|
|
2,817
|
|
|||||||||
Non-U.S. government and agency securities
|
—
|
|
|
388
|
|
|
—
|
|
|
388
|
|
|
—
|
|
|
1,100
|
|
|
—
|
|
|
1,100
|
|
|||||||||
Corporate debt securities
|
—
|
|
|
31,735
|
|
|
—
|
|
|
31,735
|
|
|
—
|
|
|
24,292
|
|
|
—
|
|
|
24,292
|
|
|||||||||
U.S. agency mortgage-backed securities
|
—
|
|
|
2,023
|
|
|
—
|
|
|
2,023
|
|
|
—
|
|
|
1,868
|
|
|
—
|
|
|
1,868
|
|
|||||||||
Commercial paper
|
—
|
|
|
996
|
|
|
—
|
|
|
996
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Certificates of deposit
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Publicly traded equity securities
|
1,707
|
|
|
—
|
|
|
—
|
|
|
1,707
|
|
|
1,504
|
|
|
—
|
|
|
—
|
|
|
1,504
|
|
|||||||||
Derivative assets
|
—
|
|
|
149
|
|
|
—
|
|
|
149
|
|
|
—
|
|
|
384
|
|
|
1
|
|
|
385
|
|
|||||||||
Total
|
$
|
11,274
|
|
|
$
|
57,550
|
|
|
$
|
—
|
|
|
$
|
68,824
|
|
|
$
|
7,615
|
|
|
$
|
57,048
|
|
|
$
|
1
|
|
|
$
|
64,664
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
Total
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
54
|
|
(b)
|
Assets Measured at Fair Value on a Nonrecurring Basis
|
|
TOTAL GAINS (LOSSES) FOR THE YEARS ENDED
|
||||||||||
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Investments in privately held companies (impaired)
|
$
|
(175
|
)
|
|
$
|
(57
|
)
|
|
$
|
(38
|
)
|
Purchased intangible assets (impaired)
|
(47
|
)
|
|
(74
|
)
|
|
(175
|
)
|
|||
Property held for sale - land and buildings
|
(30
|
)
|
|
—
|
|
|
—
|
|
|||
Gains (losses) on assets no longer held at end of fiscal year
|
(2
|
)
|
|
(10
|
)
|
|
(8
|
)
|
|||
Total gains (losses) for nonrecurring measurements
|
$
|
(254
|
)
|
|
$
|
(141
|
)
|
|
$
|
(221
|
)
|
(c)
|
Other Fair Value Disclosures
|
10.
|
Borrowings
|
(a)
|
Short-Term Debt
|
|
July 29, 2017
|
|
July 30, 2016
|
||||||||||
|
Amount
|
|
Effective Rate
|
|
Amount
|
|
Effective Rate
|
||||||
Current portion of long-term debt
|
$
|
4,747
|
|
|
1.66
|
%
|
|
$
|
4,159
|
|
|
0.97
|
%
|
Commercial paper
|
3,245
|
|
|
1.16
|
%
|
|
—
|
|
|
—
|
%
|
||
Other notes and borrowings
|
—
|
|
|
—
|
%
|
|
1
|
|
|
2.08
|
%
|
||
Total short-term debt
|
$
|
7,992
|
|
|
|
|
$
|
4,160
|
|
|
|
(b)
|
Long-Term Debt
|
|
|
|
July 29, 2017
|
|
July 30, 2016
|
||||||||
|
Maturity Date
|
|
Amount
|
|
Effective Rate
|
|
Amount
|
|
Effective Rate
|
||||
Senior notes:
|
|
|
|
|
|
|
|
|
|
||||
Floating-rate notes:
|
|
|
|
|
|
|
|
|
|
||||
Three-month LIBOR plus 0.28%
|
March 3, 2017
|
(1)
|
$
|
—
|
|
|
—
|
|
$
|
1,000
|
|
|
1.03%
|
Three-month LIBOR plus 0.60%
|
February 21, 2018
|
|
1,000
|
|
|
1.84%
|
|
1,000
|
|
|
1.32%
|
||
Three-month LIBOR plus 0.31%
|
June 15, 2018
|
|
900
|
|
|
1.62%
|
|
900
|
|
|
1.03%
|
||
Three-month LIBOR plus 0.50%
|
March 1, 2019
|
|
500
|
|
|
1.76%
|
|
500
|
|
|
1.23%
|
||
Three-month LIBOR plus 0.34%
|
September 20, 2019
|
(2)
|
500
|
|
|
1.66%
|
|
—
|
|
|
—
|
||
Fixed-rate notes:
|
|
|
|
|
|
|
|
|
|
||||
1.10%
|
March 3, 2017
|
(1)
|
—
|
|
|
—
|
|
2,400
|
|
|
0.87%
|
||
3.15%
|
March 14, 2017
|
(1)
|
—
|
|
|
—
|
|
750
|
|
|
1.22%
|
||
1.40%
|
February 28, 2018
|
|
1,250
|
|
|
1.47%
|
|
1,250
|
|
|
1.47%
|
||
1.65%
|
June 15, 2018
|
|
1,600
|
|
|
1.72%
|
|
1,600
|
|
|
1.72%
|
||
4.95%
|
February 15, 2019
|
|
2,000
|
|
|
4.96%
|
|
2,000
|
|
|
4.76%
|
||
1.60%
|
February 28, 2019
|
|
1,000
|
|
|
1.67%
|
|
1,000
|
|
|
1.67%
|
||
2.125%
|
March 1, 2019
|
|
1,750
|
|
|
1.84%
|
|
1,750
|
|
|
1.08%
|
||
1.40%
|
September 20, 2019
|
(2)
|
1,500
|
|
|
1.48%
|
|
—
|
|
|
—
|
||
4.45%
|
January 15, 2020
|
|
2,500
|
|
|
3.84%
|
|
2,500
|
|
|
3.25%
|
||
2.45%
|
June 15, 2020
|
|
1,500
|
|
|
2.54%
|
|
1,500
|
|
|
2.54%
|
||
2.20%
|
February 28, 2021
|
|
2,500
|
|
|
2.30%
|
|
2,500
|
|
|
2.30%
|
||
2.90%
|
March 4, 2021
|
|
500
|
|
|
2.00%
|
|
500
|
|
|
1.24%
|
||
1.85%
|
September 20, 2021
|
(2)
|
2,000
|
|
|
1.90%
|
|
—
|
|
|
—
|
||
3.00%
|
June 15, 2022
|
|
500
|
|
|
2.26%
|
|
500
|
|
|
1.51%
|
||
2.60%
|
February 28, 2023
|
|
500
|
|
|
2.68%
|
|
500
|
|
|
2.68%
|
||
2.20%
|
September 20, 2023
|
(2)
|
750
|
|
|
2.27%
|
|
—
|
|
|
—
|
||
3.625%
|
March 4, 2024
|
|
1,000
|
|
|
2.12%
|
|
1,000
|
|
|
1.36%
|
||
3.50%
|
June 15, 2025
|
|
500
|
|
|
2.43%
|
|
500
|
|
|
1.67%
|
||
2.95%
|
February 28, 2026
|
|
750
|
|
|
3.01%
|
|
750
|
|
|
3.01%
|
||
2.50%
|
September 20, 2026
|
(2)
|
1,500
|
|
|
2.55%
|
|
—
|
|
|
—
|
||
5.90%
|
February 15, 2039
|
|
2,000
|
|
|
6.11%
|
|
2,000
|
|
|
6.11%
|
||
5.50%
|
January 15, 2040
|
|
2,000
|
|
|
5.67%
|
|
2,000
|
|
|
5.67%
|
||
Total
|
|
|
30,500
|
|
|
|
|
28,400
|
|
|
|
||
Unaccreted discount/issuance costs
|
|
|
(136
|
)
|
|
|
|
(137
|
)
|
|
|
||
Hedge accounting fair value adjustments
|
|
|
108
|
|
|
|
|
379
|
|
|
|
||
Total
|
|
|
$
|
30,472
|
|
|
|
|
$
|
28,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reported as:
|
|
|
|
|
|
|
|
|
|
||||
Current portion of long-term debt
|
|
|
$
|
4,747
|
|
|
|
|
$
|
4,159
|
|
|
|
Long-term debt
|
|
|
25,725
|
|
|
|
|
24,483
|
|
|
|
||
Total
|
|
|
$
|
30,472
|
|
|
|
|
$
|
28,642
|
|
|
|
Fiscal Year
|
Amount
|
||
2018
|
$
|
4,750
|
|
2019
|
5,250
|
|
|
2020
|
6,000
|
|
|
2021
|
3,000
|
|
|
2022
|
2,500
|
|
|
Thereafter
|
9,000
|
|
|
Total
|
$
|
30,500
|
|
(c)
|
Credit Facilities
|
11.
|
Derivative Instruments
|
(a)
|
Summary of Derivative Instruments
|
|
DERIVATIVE ASSETS
|
|
DERIVATIVE LIABILITIES
|
||||||||||||||||
|
Balance Sheet Line Item
|
|
July 29, 2017
|
|
July 30, 2016
|
|
Balance Sheet Line Item
|
|
July 29, 2017
|
|
July 30, 2016
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
Other current assets
|
|
$
|
46
|
|
|
$
|
7
|
|
|
Other current liabilities
|
|
$
|
1
|
|
|
$
|
53
|
|
Interest rate derivatives
|
Other current assets
|
|
—
|
|
|
11
|
|
|
Other current liabilities
|
|
—
|
|
|
—
|
|
||||
Interest rate derivatives
|
Other assets
|
|
102
|
|
|
366
|
|
|
Other long-term liabilities
|
|
—
|
|
|
—
|
|
||||
Total
|
|
|
148
|
|
|
384
|
|
|
|
|
1
|
|
|
53
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
Other current assets
|
|
1
|
|
|
—
|
|
|
Other current liabilities
|
|
3
|
|
|
1
|
|
||||
Equity derivatives/warrants
|
Other assets
|
|
—
|
|
|
1
|
|
|
Other long-term liabilities
|
|
—
|
|
|
—
|
|
||||
Total
|
|
|
1
|
|
|
1
|
|
|
|
|
3
|
|
|
1
|
|
||||
Total
|
|
|
$
|
149
|
|
|
$
|
385
|
|
|
|
|
$
|
4
|
|
|
$
|
54
|
|
GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR
THE YEARS ENDED (EFFECTIVE PORTION)
|
|
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR
THE YEARS ENDED (EFFECTIVE PORTION)
|
||||||||||||||||||||||||
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
Line Item in Statements of Operations
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||||||||
Derivatives designated as cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency derivatives
|
|
$
|
22
|
|
|
$
|
(66
|
)
|
|
$
|
(159
|
)
|
|
Operating expenses
|
|
$
|
(59
|
)
|
|
$
|
(15
|
)
|
|
$
|
(121
|
)
|
|
|
|
|
|
|
|
|
Cost of sales
—
service
|
|
(20
|
)
|
|
(5
|
)
|
|
(33
|
)
|
|||||||||
Total
|
|
$
|
22
|
|
|
$
|
(66
|
)
|
|
$
|
(159
|
)
|
|
Total
|
|
$
|
(79
|
)
|
|
$
|
(20
|
)
|
|
$
|
(154
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives designated as net investment hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency derivatives
|
|
$
|
(15
|
)
|
|
$
|
16
|
|
|
$
|
42
|
|
|
Other income (loss), net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
GAINS (LOSSES) ON
DERIVATIVE INSTRUMENTS FOR THE YEARS ENDED
|
|
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE YEARS ENDED
|
||||||||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments
|
|
Line Item in Statements of Operations
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||||||||
Equity derivatives
|
|
Other income (loss), net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(56
|
)
|
Interest rate derivatives
|
|
Interest expense
|
|
(275
|
)
|
|
175
|
|
|
54
|
|
|
271
|
|
|
(169
|
)
|
|
(57
|
)
|
||||||
Total
|
|
|
|
$
|
(275
|
)
|
|
$
|
175
|
|
|
$
|
110
|
|
|
$
|
271
|
|
|
$
|
(169
|
)
|
|
$
|
(113
|
)
|
|
|
|
|
GAINS (LOSSES) FOR
THE YEARS ENDED
|
||||||||||
Derivatives Not Designated as Hedging Instruments
|
|
Line Item in Statements of Operations
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Foreign currency derivatives
|
|
Other income (loss), net
|
|
$
|
13
|
|
|
$
|
(19
|
)
|
|
$
|
(173
|
)
|
Total return swaps—deferred compensation
|
|
Operating expenses
|
|
58
|
|
|
7
|
|
|
19
|
|
|||
Equity derivatives
|
|
Other income (loss), net
|
|
11
|
|
|
13
|
|
|
27
|
|
|||
Total
|
|
|
|
$
|
82
|
|
|
$
|
1
|
|
|
$
|
(127
|
)
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Foreign currency derivatives—cash flow hedges
|
$
|
1,696
|
|
|
$
|
2,683
|
|
Interest rate derivatives
|
6,750
|
|
|
9,900
|
|
||
Net investment hedging instruments
|
351
|
|
|
298
|
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign currency derivatives
|
2,258
|
|
|
2,057
|
|
||
Total return swaps—deferred compensation
|
535
|
|
|
476
|
|
||
Total
|
$
|
11,590
|
|
|
$
|
15,414
|
|
(b)
|
Offsetting of Derivative Instruments
|
|
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET
|
|
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEET
BUT WITH LEGAL RIGHTS TO OFFSET
|
||||||||||||||||||||
July 29, 2017
|
Gross Amounts Recognized
|
|
Gross Amounts Offset
|
|
Net Amounts Presented
|
|
Gross Derivative Amounts
|
|
Cash Collateral
|
|
Net Amount
|
||||||||||||
Derivatives assets
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
149
|
|
|
$
|
(4
|
)
|
|
$
|
(81
|
)
|
|
$
|
64
|
|
Derivatives liabilities
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET
|
|
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEET
BUT WITH LEGAL RIGHTS TO OFFSET
|
||||||||||||||||||||
July 30, 2016
|
Gross Amounts Recognized
|
|
Gross Amounts Offset
|
|
Net Amounts Presented
|
|
Gross Derivative Amounts
|
|
Cash Collateral
|
|
Net Amount
|
||||||||||||
Derivatives assets
|
$
|
385
|
|
|
$
|
—
|
|
|
$
|
385
|
|
|
$
|
(23
|
)
|
|
$
|
(305
|
)
|
|
$
|
57
|
|
Derivatives liabilities
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
|
$
|
31
|
|
(c)
|
Foreign Currency Exchange Risk
|
(d)
|
Interest Rate Risk
|
(e)
|
Equity Price Risk
|
(f)
|
Hedge Effectiveness
|
12.
|
Commitments and Contingencies
|
(a)
|
Operating Leases
|
Fiscal Year
|
Amount
|
||
2018
|
$
|
417
|
|
2019
|
277
|
|
|
2020
|
190
|
|
|
2021
|
115
|
|
|
2022
|
95
|
|
|
Thereafter
|
143
|
|
|
Total
|
$
|
1,237
|
|
(b)
|
Purchase Commitments with Contract Manufacturers and Suppliers
|
(c)
|
Other Commitments
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Compensation expense related to acquisitions
|
$
|
212
|
|
|
$
|
282
|
|
|
$
|
334
|
|
(d)
|
Product Warranties
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Balance at beginning of fiscal year
|
$
|
414
|
|
|
$
|
449
|
|
|
$
|
446
|
|
Provisions for warranty issued
|
691
|
|
|
715
|
|
|
686
|
|
|||
Adjustments for pre-existing warranties
|
(21
|
)
|
|
(8
|
)
|
|
10
|
|
|||
Settlements
|
(677
|
)
|
|
(714
|
)
|
|
(693
|
)
|
|||
Divestiture
|
—
|
|
|
(28
|
)
|
|
—
|
|
|||
Balance at end of fiscal year
|
$
|
407
|
|
|
$
|
414
|
|
|
$
|
449
|
|
(e)
|
Financing and Other Guarantees
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
Maximum potential future payments relating to financing guarantees:
|
|
|
|
||||
Channel partner
|
$
|
240
|
|
|
$
|
281
|
|
End user
|
74
|
|
|
96
|
|
||
Total
|
$
|
314
|
|
|
$
|
377
|
|
Deferred revenue associated with financing guarantees:
|
|
|
|
||||
Channel partner
|
$
|
(82
|
)
|
|
$
|
(85
|
)
|
End user
|
(52
|
)
|
|
(76
|
)
|
||
Total
|
$
|
(134
|
)
|
|
$
|
(161
|
)
|
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
|
$
|
180
|
|
|
$
|
216
|
|
(f)
|
Supplier Component Remediation Liability
|
(g)
|
Indemnifications
|
(h)
|
Legal Proceedings
|
13.
|
Shareholders’ Equity
|
(a)
|
Cash Dividends on Shares of Common Stock
|
(b)
|
Stock Repurchase Program
|
|
Shares
Repurchased
|
|
Weighted-
Average Price
per Share
|
|
Amount
Repurchased
|
|||||
Cumulative balance at July 25, 2015
|
4,443
|
|
|
$
|
20.86
|
|
|
$
|
92,679
|
|
Repurchase of common stock under the stock repurchase program
(1)
|
148
|
|
|
26.45
|
|
|
3,918
|
|
||
Cumulative balance at July 30, 2016
|
4,591
|
|
|
21.04
|
|
|
96,597
|
|
||
Repurchase of common stock under the stock repurchase program
(2)
|
118
|
|
|
31.38
|
|
|
3,706
|
|
||
Cumulative balance at July 29, 2017
|
4,709
|
|
|
$
|
21.30
|
|
|
$
|
100,303
|
|
(c)
|
Restricted Stock Unit Withholdings
|
(d)
|
Preferred Stock
|
14.
|
Employee Benefit Plans
|
(a)
|
Employee Stock Incentive Plans
|
(b)
|
Employee Stock Purchase Plan
|
(c)
|
Summary of Share-Based Compensation Expense
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Cost of sales—product
|
$
|
85
|
|
|
$
|
70
|
|
|
$
|
50
|
|
Cost of sales—service
|
134
|
|
|
142
|
|
|
157
|
|
|||
Share-based compensation expense in cost of sales
|
219
|
|
|
212
|
|
|
207
|
|
|||
Research and development
|
529
|
|
|
470
|
|
|
448
|
|
|||
Sales and marketing
|
542
|
|
|
545
|
|
|
559
|
|
|||
General and administrative
|
236
|
|
|
205
|
|
|
228
|
|
|||
Restructuring and other charges
|
3
|
|
|
26
|
|
|
(2
|
)
|
|||
Share-based compensation expense in operating expenses
|
1,310
|
|
|
1,246
|
|
|
1,233
|
|
|||
Total share-based compensation expense
|
$
|
1,529
|
|
|
$
|
1,458
|
|
|
$
|
1,440
|
|
Income tax benefit for share-based compensation
|
$
|
451
|
|
|
$
|
429
|
|
|
$
|
373
|
|
(d)
|
Share-Based Awards Available for Grant
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|||
Balance at beginning of fiscal year
|
242
|
|
|
276
|
|
|
310
|
|
Restricted stock, stock units, and other share-based awards granted
|
(76
|
)
|
|
(96
|
)
|
|
(101
|
)
|
Share-based awards canceled/forfeited/expired
|
78
|
|
|
30
|
|
|
40
|
|
Shares withheld for taxes and not issued
|
28
|
|
|
30
|
|
|
27
|
|
Other
|
—
|
|
|
2
|
|
|
—
|
|
Balance at end of fiscal year
|
272
|
|
|
242
|
|
|
276
|
|
(e)
|
Restricted Stock and Stock Unit Awards
|
|
Restricted Stock/
Stock Units
|
|
Weighted-Average
Grant Date Fair
Value per Share
|
|
Aggregate Fair Value
|
|||||
UNVESTED BALANCE AT JULY 26, 2014
|
149
|
|
|
$
|
19.54
|
|
|
|
||
Granted
|
66
|
|
|
25.23
|
|
|
|
|||
Assumed from acquisitions
|
1
|
|
|
24.85
|
|
|
|
|||
Vested
|
(57
|
)
|
|
19.82
|
|
|
$
|
1,517
|
|
|
Canceled/forfeited/other
|
(16
|
)
|
|
19.67
|
|
|
|
|||
UNVESTED BALANCE AT JULY 25, 2015
|
143
|
|
|
22.08
|
|
|
|
|||
Granted
|
62
|
|
|
25.90
|
|
|
|
|||
Assumed from acquisitions
|
6
|
|
|
24.58
|
|
|
|
|||
Vested
|
(54
|
)
|
|
20.68
|
|
|
$
|
1,428
|
|
|
Canceled/forfeited/other
|
(12
|
)
|
|
22.91
|
|
|
|
|||
UNVESTED BALANCE AT JULY 30, 2016
|
145
|
|
|
24.26
|
|
|
|
|||
Granted
|
50
|
|
|
27.89
|
|
|
|
|||
Assumed from acquisitions
|
15
|
|
|
32.21
|
|
|
|
|||
Vested
|
(54
|
)
|
|
23.14
|
|
|
$
|
1,701
|
|
|
Canceled/forfeited/other
|
(15
|
)
|
|
23.56
|
|
|
|
|||
UNVESTED BALANCE AT JULY 29, 2017
|
141
|
|
|
$
|
26.94
|
|
|
|
(f)
|
Stock Option Awards
|
|
STOCK OPTIONS OUTSTANDING
|
|||||
|
Number
Outstanding
|
|
Weighted-Average
Exercise Price per Share
|
|||
BALANCE AT JULY 26, 2014
|
187
|
|
|
$
|
26.03
|
|
Assumed from acquisitions
|
1
|
|
|
2.60
|
|
|
Exercised
|
(71
|
)
|
|
21.15
|
|
|
Canceled/forfeited/expired
|
(14
|
)
|
|
29.68
|
|
|
BALANCE AT JULY 25, 2015
|
103
|
|
|
28.68
|
|
|
Assumed from acquisitions
|
18
|
|
|
5.17
|
|
|
Exercised
|
(32
|
)
|
|
19.22
|
|
|
Canceled/forfeited/expired
|
(16
|
)
|
|
30.01
|
|
|
BALANCE AT JULY 30, 2016
|
73
|
|
|
26.78
|
|
|
Assumed from acquisitions
|
8
|
|
|
4.47
|
|
|
Exercised
|
(14
|
)
|
|
12.11
|
|
|
Canceled/forfeited/expired
|
(55
|
)
|
|
31.83
|
|
|
BALANCE AT JULY 29, 2017
|
12
|
|
|
$
|
6.15
|
|
|
|
STOCK OPTIONS OUTSTANDING
|
|
STOCK OPTIONS EXERCISABLE
|
||||||||||||||||||||
Range of Exercise Prices
|
|
Number
Outstanding
|
|
Weighted-
Average
Remaining
Contractual
Life
(in Years)
|
|
Weighted-
Average
Exercise
Price per
Share
|
|
Aggregate
Intrinsic
Value
|
|
Number
Exercisable
|
|
Weighted-
Average
Exercise
Price per
Share
|
|
Aggregate
Intrinsic
Value
|
||||||||||
$ 0.01 – 20.00
|
|
12
|
|
|
6.3
|
|
$
|
6.15
|
|
|
$
|
307
|
|
|
6
|
|
|
$
|
5.61
|
|
|
$
|
163
|
|
(g)
|
Valuation of Employee Share-Based Awards
|
|
RESTRICTED STOCK UNITS
|
||||||||||
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Number of shares granted (in millions)
|
43
|
|
|
57
|
|
|
55
|
|
|||
Grant date fair value per share
|
$
|
28.38
|
|
|
$
|
26.01
|
|
|
$
|
25.30
|
|
Weighted-average assumptions/inputs:
|
|
|
|
|
|
||||||
Expected dividend yield
|
3.5
|
%
|
|
3.2
|
%
|
|
2.9
|
%
|
|||
Range of risk-free interest rates
|
0.0%
–
1.5%
|
|
|
0.0% – 1.2%
|
|
|
0.0% – 1.8%
|
|
|
PERFORMANCE BASED RESTRICTED STOCK UNITS
|
||||||||||
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Number of shares granted (in millions)
|
7
|
|
|
5
|
|
|
11
|
|
|||
Grant date fair value per share
|
$
|
28.94
|
|
|
$
|
24.70
|
|
|
$
|
24.85
|
|
Weighted-average assumptions/inputs:
|
|
|
|
|
|
||||||
Expected dividend yield
|
3.4
|
%
|
|
3.1
|
%
|
|
3.0
|
%
|
|||
Range of risk-free interest rates
|
0.1%
–
1.5%
|
|
|
0.0% – 1.2%
|
|
|
0.0% – 1.8%
|
|
|||
Range of expected volatilities for index
|
16.7% – 46.8%
|
|
|
15.3% – 54.3%
|
|
|
14.3% – 70.0%
|
|
|
EMPLOYEE STOCK PURCHASE RIGHTS
|
||||||||||
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Weighted-average assumptions:
|
|
|
|
|
|
||||||
Expected volatility
|
24.6
|
%
|
|
23.9
|
%
|
|
26.0
|
%
|
|||
Risk-free interest rate
|
0.7
|
%
|
|
0.4
|
%
|
|
0.3
|
%
|
|||
Expected dividend
|
3.2
|
%
|
|
3.1
|
%
|
|
2.8
|
%
|
|||
Expected life (in years)
|
1.3
|
|
|
1.3
|
|
|
1.8
|
|
|||
Weighted-average estimated grant date fair value per share
|
$
|
6.52
|
|
|
$
|
5.73
|
|
|
$
|
6.54
|
|
(h)
|
Employee 401(k) Plans
|
(i)
|
Deferred Compensation Plans
|
15.
|
Comprehensive Income
|
|
Net Unrealized Gains (Losses) on Available-for-Sale Investments
|
|
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
|
|
Cumulative Translation Adjustment and Actuarial Gains and Losses
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
BALANCE AT JULY 26, 2014
|
$
|
424
|
|
|
$
|
(12
|
)
|
|
$
|
265
|
|
|
$
|
677
|
|
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
|
(28
|
)
|
|
(159
|
)
|
|
(563
|
)
|
|
(750
|
)
|
||||
(Gains) losses reclassified out of AOCI
|
(157
|
)
|
|
154
|
|
|
2
|
|
|
(1
|
)
|
||||
Tax benefit (expense)
|
71
|
|
|
1
|
|
|
63
|
|
|
135
|
|
||||
BALANCE AT JULY 25, 2015
|
310
|
|
|
(16
|
)
|
|
(233
|
)
|
|
61
|
|
||||
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
|
151
|
|
|
(66
|
)
|
|
(399
|
)
|
|
(314
|
)
|
||||
(Gains) losses reclassified out of AOCI
|
1
|
|
|
20
|
|
|
(6
|
)
|
|
15
|
|
||||
Tax benefit (expense)
|
(49
|
)
|
|
3
|
|
|
(42
|
)
|
|
(88
|
)
|
||||
BALANCE AT JULY 30, 2016
|
413
|
|
|
(59
|
)
|
|
(680
|
)
|
|
(326
|
)
|
||||
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
|
(164
|
)
|
|
22
|
|
|
318
|
|
|
176
|
|
||||
(Gains) losses reclassified out of AOCI
|
87
|
|
|
79
|
|
|
16
|
|
|
182
|
|
||||
Tax benefit (expense)
|
37
|
|
|
(10
|
)
|
|
(13
|
)
|
|
14
|
|
||||
BALANCE AT JULY 29, 2017
|
$
|
373
|
|
|
$
|
32
|
|
|
$
|
(359
|
)
|
|
$
|
46
|
|
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|
|
||||||
Comprehensive Income Components
|
|
Income Before Taxes
|
|
Line Item in Statements of Operations
|
||||||||||
Net unrealized gains and losses on available-for-sale investments
|
|
$
|
(87
|
)
|
|
$
|
(1
|
)
|
|
$
|
157
|
|
|
Other income (loss), net
|
|
|
|
|
|
|
|
|
|
||||||
Net unrealized gains and losses on cash flow hedging instruments
|
|
|
|
|
|
|
|
|
||||||
Foreign currency derivatives
|
|
(59
|
)
|
|
(15
|
)
|
|
(121
|
)
|
|
Operating expenses
|
|||
Foreign currency derivatives
|
|
(20
|
)
|
|
(5
|
)
|
|
(33
|
)
|
|
Cost of sales—service
|
|||
|
|
(79
|
)
|
|
(20
|
)
|
|
(154
|
)
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Cumulative translation adjustment and actuarial gains and losses
|
|
(16
|
)
|
|
6
|
|
|
(2
|
)
|
|
Operating expenses
|
|||
|
|
|
|
|
|
|
|
|
||||||
Total amounts reclassified out of AOCI
|
|
$
|
(182
|
)
|
|
$
|
(15
|
)
|
|
$
|
1
|
|
|
|
16.
|
Income Taxes
|
(a)
|
Provision for Income Taxes
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Federal:
|
|
|
|
|
|
||||||
Current
|
$
|
1,300
|
|
|
$
|
865
|
|
|
$
|
1,583
|
|
Deferred
|
(42
|
)
|
|
(93
|
)
|
|
43
|
|
|||
|
1,258
|
|
|
772
|
|
|
1,626
|
|
|||
State:
|
|
|
|
|
|
||||||
Current
|
86
|
|
|
78
|
|
|
130
|
|
|||
Deferred
|
56
|
|
|
13
|
|
|
(20
|
)
|
|||
|
142
|
|
|
91
|
|
|
110
|
|
|||
Foreign:
|
|
|
|
|
|
||||||
Current
|
1,416
|
|
|
1,432
|
|
|
530
|
|
|||
Deferred
|
(138
|
)
|
|
(114
|
)
|
|
(46
|
)
|
|||
|
1,278
|
|
|
1,318
|
|
|
484
|
|
|||
Total
|
$
|
2,678
|
|
|
$
|
2,181
|
|
|
$
|
2,220
|
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
United States
|
$
|
2,393
|
|
|
$
|
2,907
|
|
|
$
|
3,570
|
|
International
|
9,894
|
|
|
10,013
|
|
|
7,631
|
|
|||
Total
|
$
|
12,287
|
|
|
$
|
12,920
|
|
|
$
|
11,201
|
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
|||
Federal statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Effect of:
|
|
|
|
|
|
|||
State taxes, net of federal tax benefit
|
1.1
|
|
|
0.5
|
|
|
0.8
|
|
Foreign income at other than U.S. rates
|
(13.4
|
)
|
|
(14.5
|
)
|
|
(15.2
|
)
|
Tax credits
|
(1.2
|
)
|
|
(1.7
|
)
|
|
(1.2
|
)
|
Domestic manufacturing deduction
|
(0.4
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
Nondeductible compensation
|
1.4
|
|
|
1.4
|
|
|
2.0
|
|
Tax audit settlement
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
Other, net
|
(0.7
|
)
|
|
(0.4
|
)
|
|
(0.9
|
)
|
Total
|
21.8
|
%
|
|
16.9
|
%
|
|
19.8
|
%
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Beginning balance
|
$
|
1,627
|
|
|
$
|
2,029
|
|
|
$
|
1,938
|
|
Additions based on tax positions related to the current year
|
336
|
|
|
255
|
|
|
276
|
|
|||
Additions for tax positions of prior years
|
180
|
|
|
116
|
|
|
137
|
|
|||
Reductions for tax positions of prior years
|
(78
|
)
|
|
(457
|
)
|
|
(30
|
)
|
|||
Settlements
|
(43
|
)
|
|
(241
|
)
|
|
(165
|
)
|
|||
Lapse of statute of limitations
|
(49
|
)
|
|
(75
|
)
|
|
(127
|
)
|
|||
Ending balance
|
$
|
1,973
|
|
|
$
|
1,627
|
|
|
$
|
2,029
|
|
(b)
|
Deferred Tax Assets and Liabilities
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
Deferred tax assets
|
$
|
4,239
|
|
|
$
|
4,299
|
|
Deferred tax liabilities
|
(271
|
)
|
|
(278
|
)
|
||
Total net deferred tax assets
|
$
|
3,968
|
|
|
$
|
4,021
|
|
|
July 29, 2017
|
|
July 30, 2016
|
||||
ASSETS
|
|
|
|
||||
Allowance for doubtful accounts and returns
|
$
|
443
|
|
|
$
|
524
|
|
Sales-type and direct-financing leases
|
277
|
|
|
289
|
|
||
Inventory write-downs and capitalization
|
446
|
|
|
417
|
|
||
Investment provisions
|
171
|
|
|
126
|
|
||
IPR&D, goodwill, and purchased intangible assets
|
125
|
|
|
139
|
|
||
Deferred revenue
|
2,057
|
|
|
1,858
|
|
||
Credits and net operating loss carryforwards
|
976
|
|
|
863
|
|
||
Share-based compensation expense
|
273
|
|
|
438
|
|
||
Accrued compensation
|
504
|
|
|
572
|
|
||
Other
|
559
|
|
|
516
|
|
||
Gross deferred tax assets
|
5,831
|
|
|
5,742
|
|
||
Valuation allowance
|
(244
|
)
|
|
(134
|
)
|
||
Total deferred tax assets
|
5,587
|
|
|
5,608
|
|
||
LIABILITIES
|
|
|
|
||||
Purchased intangible assets
|
(1,037
|
)
|
|
(995
|
)
|
||
Depreciation
|
(340
|
)
|
|
(289
|
)
|
||
Unrealized gains on investments
|
(203
|
)
|
|
(225
|
)
|
||
Other
|
(39
|
)
|
|
(78
|
)
|
||
Total deferred tax liabilities
|
(1,619
|
)
|
|
(1,587
|
)
|
||
Total net deferred tax assets
|
$
|
3,968
|
|
|
$
|
4,021
|
|
17.
|
Segment Information and Major Customers
|
(a)
|
Revenue and Gross Margin by Segment
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Americas
|
$
|
28,351
|
|
|
$
|
29,392
|
|
|
$
|
29,626
|
|
EMEA
|
12,004
|
|
|
12,302
|
|
|
12,348
|
|
|||
APJC
|
7,650
|
|
|
7,553
|
|
|
7,187
|
|
|||
Total
|
$
|
48,005
|
|
|
$
|
49,247
|
|
|
$
|
49,161
|
|
Gross margin:
|
|
|
|
|
|
||||||
Americas
|
$
|
18,284
|
|
|
$
|
18,986
|
|
|
$
|
18,638
|
|
EMEA
|
7,855
|
|
|
7,998
|
|
|
7,731
|
|
|||
APJC
|
4,741
|
|
|
4,620
|
|
|
4,313
|
|
|||
Segment total
|
30,880
|
|
|
31,604
|
|
|
30,682
|
|
|||
Unallocated corporate items
|
(656
|
)
|
|
(644
|
)
|
|
(1,001
|
)
|
|||
Total
|
$
|
30,224
|
|
|
$
|
30,960
|
|
|
$
|
29,681
|
|
(b)
|
Revenue for Groups of Similar Products and Services
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Switching
|
$
|
13,949
|
|
|
$
|
14,700
|
|
|
$
|
14,712
|
|
NGN Routing
|
7,831
|
|
|
8,133
|
|
|
8,343
|
|
|||
Collaboration
|
4,278
|
|
|
4,352
|
|
|
4,004
|
|
|||
Data Center
|
3,228
|
|
|
3,365
|
|
|
3,219
|
|
|||
Wireless
|
2,766
|
|
|
2,640
|
|
|
2,551
|
|
|||
Security
|
2,153
|
|
|
1,969
|
|
|
1,747
|
|
|||
Service Provider Video
(1)
|
946
|
|
|
1,734
|
|
|
2,941
|
|
|||
Other
|
554
|
|
|
361
|
|
|
233
|
|
|||
Product
|
35,705
|
|
|
37,254
|
|
|
37,750
|
|
|||
Service
|
12,300
|
|
|
11,993
|
|
|
11,411
|
|
|||
Total
|
$
|
48,005
|
|
|
$
|
49,247
|
|
|
$
|
49,161
|
|
(c)
|
Additional Segment Information
|
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Property and equipment, net:
|
|
|
|
|
|
||||||
United States
|
$
|
2,711
|
|
|
$
|
2,822
|
|
|
$
|
2,733
|
|
International
|
611
|
|
|
684
|
|
|
599
|
|
|||
Total
|
$
|
3,322
|
|
|
$
|
3,506
|
|
|
$
|
3,332
|
|
18.
|
Net Income per Share
|
Years Ended
|
July 29, 2017
|
|
July 30, 2016
|
|
July 25, 2015
|
||||||
Net income
|
$
|
9,609
|
|
|
$
|
10,739
|
|
|
$
|
8,981
|
|
Weighted-average shares—basic
|
5,010
|
|
|
5,053
|
|
|
5,104
|
|
|||
Effect of dilutive potential common shares
|
39
|
|
|
35
|
|
|
42
|
|
|||
Weighted-average shares—diluted
|
5,049
|
|
|
5,088
|
|
|
5,146
|
|
|||
Net income per share—basic
|
$
|
1.92
|
|
|
$
|
2.13
|
|
|
$
|
1.76
|
|
Net income per share—diluted
|
$
|
1.90
|
|
|
$
|
2.11
|
|
|
$
|
1.75
|
|
Antidilutive employee share-based awards, excluded
|
136
|
|
|
148
|
|
|
183
|
|
Quarters Ended
|
July 29, 2017
|
|
April 29, 2017
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||||
Revenue
|
$
|
12,133
|
|
|
$
|
11,940
|
|
|
$
|
11,580
|
|
|
$
|
12,352
|
|
Gross margin
|
$
|
7,546
|
|
|
$
|
7,518
|
|
|
$
|
7,276
|
|
|
$
|
7,884
|
|
Operating income
|
$
|
3,034
|
|
|
$
|
3,169
|
|
|
$
|
2,893
|
|
|
$
|
2,877
|
|
Net income
|
$
|
2,424
|
|
|
$
|
2,515
|
|
|
$
|
2,348
|
|
|
$
|
2,322
|
|
Net income per share - basic
|
$
|
0.49
|
|
|
$
|
0.50
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
Net income per share - diluted
|
$
|
0.48
|
|
|
$
|
0.50
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
Cash dividends declared per common share
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.26
|
|
|
$
|
0.26
|
|
Cash and cash equivalents and investments
|
$
|
70,492
|
|
|
$
|
67,974
|
|
|
$
|
71,845
|
|
|
$
|
70,968
|
|
Quarters Ended
|
July 30, 2016
|
|
April 30, 2016
|
|
January 23, 2016
|
|
October 24, 2015
|
||||||||
Revenue
|
$
|
12,638
|
|
|
$
|
12,000
|
|
|
$
|
11,927
|
|
|
$
|
12,682
|
|
Gross margin
|
$
|
7,975
|
|
|
$
|
7,721
|
|
|
$
|
7,432
|
|
|
$
|
7,832
|
|
Operating income
|
$
|
3,303
|
|
|
$
|
2,984
|
|
|
$
|
3,294
|
|
|
$
|
3,079
|
|
Net income
|
$
|
2,813
|
|
|
$
|
2,349
|
|
|
$
|
3,147
|
|
|
$
|
2,430
|
|
Net income per share - basic
|
$
|
0.56
|
|
|
$
|
0.47
|
|
|
$
|
0.62
|
|
|
$
|
0.48
|
|
Net income per share - diluted
|
$
|
0.56
|
|
|
$
|
0.46
|
|
|
$
|
0.62
|
|
|
$
|
0.48
|
|
Cash dividends declared per common share
|
$
|
0.26
|
|
|
$
|
0.26
|
|
|
$
|
0.21
|
|
|
$
|
0.21
|
|
Cash and cash equivalents and investments
|
$
|
65,756
|
|
|
$
|
63,512
|
|
|
$
|
60,375
|
|
|
$
|
59,107
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
(a)
|
1. Financial Statements
|
2.
|
Financial Statement Schedule
|
3.
|
Exhibits
|
|
Allowances For
|
||||||
|
Financing
Receivables
|
|
Accounts
Receivable
|
||||
Year ended July 25, 2015
|
|
|
|
||||
Balance at beginning of fiscal year
|
$
|
349
|
|
|
$
|
265
|
|
Provisions
|
57
|
|
|
77
|
|
||
Recoveries (write-offs), net
|
(7
|
)
|
|
(40
|
)
|
||
Foreign exchange and other
|
(17
|
)
|
|
—
|
|
||
Balance at end of fiscal year
|
$
|
382
|
|
|
$
|
302
|
|
Year ended July 30, 2016
|
|
|
|
||||
Balance at beginning of fiscal year
|
$
|
382
|
|
|
$
|
302
|
|
Provisions
|
17
|
|
|
(26
|
)
|
||
Recoveries (write-offs), net
|
(15
|
)
|
|
(28
|
)
|
||
Foreign exchange and other
|
(9
|
)
|
|
1
|
|
||
Balance at end of fiscal year
|
$
|
375
|
|
|
$
|
249
|
|
Year ended July 29, 2017
|
|
|
|
||||
Balance at beginning of fiscal year
|
$
|
375
|
|
|
$
|
249
|
|
Provisions
|
(35
|
)
|
|
27
|
|
||
Recoveries (write-offs), net
|
(49
|
)
|
|
(61
|
)
|
||
Foreign exchange and other
|
4
|
|
|
(4
|
)
|
||
Balance at end of fiscal year
|
$
|
295
|
|
|
$
|
211
|
|
September 7, 2017
|
|
|
|
CISCO SYSTEMS, INC.
|
|
|
|
|
|
|
|
|
|
/S/
C
HARLES
H.
R
OBBINS
|
|
|
|
|
Charles H. Robbins
|
|
|
|
|
Chief Executive Officer
|
Signature
|
Title
|
Date
|
|
|
|
/S/
C
HARLES
H.
R
OBBINS
|
Chief Executive Officer and Director
|
September 7, 2017
|
Charles H. Robbins
|
(Principal Executive Officer)
|
|
|
|
|
/S/
K
ELLY
A.
K
RAMER
|
Executive Vice President and Chief Financial Officer
|
September 7, 2017
|
Kelly A. Kramer
|
(Principal Financial Officer)
|
|
|
|
|
/S/
P
RAT
S.
B
HATT
|
Senior Vice President, Corporate Controller and
|
September 7, 2017
|
Prat S. Bhatt
|
Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
Signature
|
Title
|
Date
|
|
|
|
/S/
J
OHN
T.
C
HAMBERS
|
Executive Chairman
|
September 7, 2017
|
John T. Chambers
|
|
|
|
|
|
/S/
C
AROL
A.
B
ARTZ
|
Lead Independent Director
|
September 7, 2017
|
Carol A. Bartz
|
|
|
|
|
|
/S/
M.
M
ICHELE
B
URNS
|
Director
|
September 7, 2017
|
M. Michele Burns
|
|
|
|
|
|
/S/
M
ICHAEL
D.
C
APELLAS
|
Director
|
September 7, 2017
|
Michael D. Capellas
|
|
|
|
|
|
/S/
A
MY
L
.
C
HANG
|
Director
|
September 7, 2017
|
Amy L. Chang
|
|
|
|
|
|
/S/
J
OHN
L.
H
ENNESSY
|
Director
|
September 7, 2017
|
Dr. John L. Hennessy
|
|
|
|
|
|
/S/
K
RISTINA
M.
J
OHNSON
|
Director
|
September 7, 2017
|
Dr. Kristina M. Johnson
|
|
|
|
|
|
/S/
R
ODERICK
C.
M
C
G
EARY
|
Director
|
September 7, 2017
|
Roderick C. McGeary
|
|
|
|
|
|
/S/
A
RUN
S
ARIN
|
Director
|
September 7, 2017
|
Arun Sarin
|
|
|
|
|
|
/S/
B
RENTON
L
.
S
AUNDERS
|
Director
|
September 7, 2017
|
Brenton L. Saunders
|
|
|
|
|
|
/S/
S
TEVEN
M.
W
EST
|
Director
|
September 7, 2017
|
Steven M. West
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
|
|
|
|
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|
3.1
|
|
|
S-3
|
|
333-56004
|
|
4.1
|
|
2/21/2001
|
|
|
|
3.2
|
|
|
8-K
|
|
000-18225
|
|
3.1
|
|
7/29/2016
|
|
|
|
4.1
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
2/17/2009
|
|
|
|
4.2
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
11/17/2009
|
|
|
|
4.3
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
3/16/2011
|
|
|
|
4.4
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
3/3/2014
|
|
|
|
4.5
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
2/17/2009
|
|
|
|
4.6
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
11/17/2009
|
|
|
|
4.7
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
3/16/2011
|
|
|
|
4.8
|
|
|
8-K
|
|
000-18225
|
|
4.2
|
|
3/3/2014
|
|
|
|
4.9
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
6/18/2015
|
|
|
|
4.10
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
2/29/2016
|
|
|
|
4.11
|
|
|
8-K
|
|
000-18225
|
|
4.1
|
|
9/20/2016
|
|
|
|
10.1*
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.2*
|
|
|
8-K
|
|
000-18225
|
|
10.1
|
|
11/24/2014
|
|
|
|
10.3*
|
|
|
10-Q
|
|
000-18225
|
|
10.5
|
|
2/18/2015
|
|
|
|
10.4*
|
|
|
8-K
|
|
000-18225
|
|
10.1
|
|
11/16/2012
|
|
|
|
10.5*
|
|
|
10-K
|
|
000-18225
|
|
10.7
|
|
9/20/2004
|
|
|
|
10.6*
|
|
|
10-K
|
|
000-18225
|
|
10.8
|
|
9/20/2004
|
|
|
|
10.7*
|
|
|
10-Q
|
|
000-18225
|
|
10.2
|
|
11/22/2013
|
|
|
|
10.8*
|
|
|
8-K
|
|
000-18225
|
|
10.1
|
|
6/1/2015
|
|
|
|
10.9*
|
|
|
8-K
|
|
000-18225
|
|
10.2
|
|
6/1/2015
|
|
|
|
10.10*
|
|
|
8-K
|
|
000-18225
|
|
10.1
|
|
11/3/2016
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
|
|
|
|
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|
10.11*
|
|
|
10-Q
|
|
000-18225
|
|
10.2
|
|
11/22/2016
|
|
|
|
10.12
|
|
|
10-Q
|
|
000-18225
|
|
10.1
|
|
5/20/2015
|
|
|
|
10.13
|
|
|
8-K
|
|
000-18225
|
|
10.1
|
|
3/31/2017
|
|
|
|
10.14
|
|
|
10-Q
|
|
000-18225
|
|
10.1
|
|
2/23/2011
|
|
|
|
10.15
|
|
|
10-Q
|
|
000-18225
|
|
10.2
|
|
2/23/2011
|
|
|
|
21.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
24.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
*
|
Indicates a management contract or compensatory plan or arrangement.
|
|
|
|
|
SECTION 1.
|
|
INTRODUCTION
|
1
|
|
|
|
|
SECTION 2.
|
|
DEFINITIONS
|
1
|
|
|
|
|
|
(a)
|
“Affiliate”
|
1
|
|
|
|
|
|
(b)
|
“Award”
|
1
|
|
|
|
|
|
(c)
|
“Board”
|
1
|
|
|
|
|
|
(d)
|
“Cashless Exercise”
|
1
|
|
|
|
|
|
(e)
|
“Cause”
|
1
|
|
|
|
|
|
(f)
|
“Change In Control”
|
1
|
|
|
|
|
|
(g)
|
“Code”
|
1
|
|
|
|
|
|
(h)
|
“Committee”
|
1
|
|
|
|
|
|
(i)
|
“Common Stock”
|
1
|
|
|
|
|
|
(j)
|
“Company”
|
1
|
|
|
|
|
|
(k)
|
“Consultant”
|
1
|
|
|
|
|
|
(l)
|
“Corporate Transaction”
|
2
|
|
|
|
|
|
(m)
|
“Covered Employees”
|
2
|
|
|
|
|
|
(n)
|
“Director”
|
2
|
|
|
|
|
|
(o)
|
“Disability”
|
2
|
|
|
|
|
|
(p)
|
“Employee”
|
2
|
|
|
|
|
|
(q)
|
“Exchange Act”
|
2
|
|
|
|
|
|
(r)
|
“Exercise Price”
|
2
|
|
|
|
|
|
(s)
|
“Fair Market Value”
|
2
|
|
|
|
|
|
(t)
|
“Fiscal Year”
|
2
|
|
|
|
|
|
(u)
|
“Grant”
|
2
|
|
|
|
|
|
(v)
|
“Incentive Stock Option” or “ISO”
|
2
|
|
|
|
|
|
(w)
|
“Key Employee”
|
2
|
|
|
|
|
|
(x)
|
“Non-Employee Director”
|
2
|
|
|
|
|
|
(y)
|
“Nonstatutory Stock Option” or “NSO”
|
2
|
|
|
|
|
|
(z)
|
“Option”
|
2
|
|
|
|
|
|
(aa)
|
“Optionee”
|
2
|
|
|
|
|
|
(bb)
|
“Parent”
|
2
|
|
|
|
|
|
(cc)
|
“Participant”
|
2
|
|
|
|
|
|
(dd)
|
“Performance Goal”
|
3
|
|
|
|
|
|
(ee)
|
“Performance Period”
|
3
|
|
|
|
|
|
(ff)
|
“Plan”
|
3
|
|
|
|
|
|
(gg)
|
“Previous Plan Award”
|
3
|
|
|
|
|
|
(hh)
|
“Re-Price”
|
3
|
|
|
|
|
|
(ii)
|
“SAR Agreement”
|
3
|
|
|
|
|
|
(jj)
|
“SEC”
|
3
|
|
|
|
|
|
(kk)
|
“Section 16 Persons”
|
3
|
|
|
|
|
|
(ll)
|
“Securities Act”
|
3
|
|
|
|
|
|
(mm)
|
“Service”
|
3
|
|
|
|
|
|
(nn)
|
“Share”
|
3
|
|
|
|
|
|
(oo)
|
“Stock Appreciation Right” or “SAR”
|
3
|
|
|
|
|
|
(pp)
|
“Stock Grant”
|
3
|
|
|
|
|
|
(qq)
|
“Stock Grant Agreement”
|
3
|
|
|
|
|
|
(rr)
|
“Stock Option Agreement”
|
3
|
|
|
|
|
|
(ss)
|
“Stock Unit”
|
3
|
|
|
|
|
|
(tt)
|
“Stock Unit Agreement”
|
3
|
|
|
|
|
|
(uu)
|
“Subsidiary”
|
3
|
|
|
|
|
|
(vv)
|
“10-Percent Shareholder”
|
3
|
|
|
|
|
SECTION 3.
|
|
ADMINISTRATION
|
3
|
|
|
|
|
|
(a)
|
Committee Composition
|
4
|
|
|
|
|
|
(b)
|
Authority of the Committee
|
4
|
|
|
|
|
|
(c)
|
Indemnification
|
4
|
|
|
|
|
SECTION 4.
|
|
GENERAL
|
4
|
|
|
|
|
|
(a)
|
General Eligibility
|
4
|
|
|
|
|
|
(b)
|
Incentive Stock Options
|
4
|
|
|
|
|
|
(c)
|
Restrictions on Shares
|
4
|
|
|
|
|
|
(d)
|
Beneficiaries
|
4
|
|
|
|
|
|
(e)
|
Performance Conditions
|
4
|
|
|
|
|
|
(f)
|
No Rights as a Shareholder
|
5
|
|
|
|
|
|
(g)
|
Termination of Service
|
5
|
|
|
|
|
|
(h)
|
Director Fees
|
5
|
|
|
|
|
SECTION 5.
|
|
SHARES SUBJECT TO PLAN AND SHARE LIMITS
|
5
|
|
|
|
|
|
(a)
|
Basic Limitations
|
5
|
|
|
|
|
|
(b)
|
Additional Shares
|
5
|
|
|
|
|
|
(c)
|
Dividend Equivalents
|
5
|
|
|
|
|
|
(d)
|
Share Limits
|
5
|
|
|
|
|
SECTION 6.
|
|
TERMS AND CONDITIONS OF OPTIONS
|
6
|
|
|
|
|
|
(a)
|
Stock Option Agreement
|
6
|
|
|
|
|
|
(b)
|
Number of Shares
|
6
|
|
|
|
|
|
(c)
|
Exercise Price
|
6
|
|
|
|
|
|
(d)
|
Exercisability and Term
|
6
|
|
|
|
|
|
(e)
|
Modifications or Assumption of Options
|
6
|
|
|
|
|
|
(f)
|
Assignment or Transfer of Options
|
6
|
|
|
|
|
SECTION 7.
|
|
PAYMENT FOR OPTION SHARES
|
6
|
|
|
|
|
SECTION 8.
|
|
TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
|
7
|
|
|
|
|
|
(a)
|
SAR Agreement
|
7
|
|
|
|
|
|
(b)
|
Number of Shares
|
7
|
|
|
|
|
|
(c)
|
Exercise Price
|
7
|
|
|
|
|
|
(d)
|
Exercisability and Term
|
7
|
|
|
|
|
|
(e)
|
Exercise of SARs
|
7
|
|
|
|
|
|
(f)
|
Modification or Assumption of SARs
|
7
|
|
|
|
|
|
(g)
|
Assignment or Transfer of SARs
|
7
|
|
|
|
|
SECTION 9.
|
|
TERMS AND CONDITIONS FOR STOCK GRANTS
|
7
|
|
|
|
|
|
(a)
|
Amount and Form of Awards
|
7
|
|
|
|
|
|
(b)
|
Stock Grant Agreement
|
7
|
|
|
|
|
|
(c)
|
Payment for Stock Grants
|
8
|
|
|
|
|
|
(d)
|
Vesting Conditions
|
8
|
|
|
|
|
|
(e)
|
Assignment or Transfer of Stock Grants
|
8
|
|
|
|
|
|
(f)
|
Voting and Dividend Rights
|
8
|
|
|
|
|
|
(g)
|
Modification or Assumption of Stock Grants
|
8
|
|
|
|
|
SECTION 10.
|
|
TERMS AND CONDITIONS OF STOCK UNITS
|
8
|
|
|
|
|
|
(a)
|
Stock Unit Agreement
|
8
|
|
|
|
|
|
(b)
|
Number of Shares
|
8
|
|
|
|
|
|
(c)
|
Payment for Stock Units
|
8
|
|
|
|
|
|
(d)
|
Vesting Conditions
|
8
|
|
|
|
|
|
(e)
|
Voting and Dividend Rights
|
8
|
|
|
|
|
|
(f)
|
Form and Time of Settlement of Stock Units
|
8
|
|
|
|
|
|
(g)
|
Creditors’ Rights
|
9
|
|
|
|
|
|
(h)
|
Modification or Assumption of Stock Units
|
9
|
|
|
|
|
|
(i)
|
Assignment or Transfer of Stock Units
|
9
|
SECTION 11.
|
|
PROTECTION AGAINST DILUTION
|
9
|
|
|
|
|
|
(a)
|
Adjustments
|
9
|
|
|
|
|
|
(b)
|
Participant Rights
|
9
|
|
|
|
|
|
(c)
|
Fractional Shares
|
9
|
|
|
|
|
SECTION 12.
|
|
EFFECT OF A CORPORATE TRANSACTION
|
9
|
|
|
|
|
|
(a)
|
Corporate Transaction
|
9
|
|
|
|
|
|
(b)
|
Acceleration
|
9
|
|
|
|
|
|
(c)
|
Dissolution
|
9
|
|
|
|
|
SECTION 13.
|
|
LIMITATIONS ON RIGHTS
|
10
|
|
|
|
|
|
(a)
|
No Entitlements
|
10
|
|
|
|
|
|
(b)
|
Shareholders’ Rights
|
10
|
|
|
|
|
|
(c)
|
Regulatory Requirements
|
10
|
|
|
|
|
SECTION 14.
|
|
WITHHOLDING TAXES
|
10
|
|
|
|
|
|
(a)
|
General
|
10
|
|
|
|
|
|
(b)
|
Share Withholding
|
10
|
|
|
|
|
SECTION 15.
|
|
DURATION AND AMENDMENTS
|
10
|
|
|
|
|
|
(a)
|
Term of the Plan
|
10
|
|
|
|
|
|
(b)
|
Right to Amend or Terminate the Plan
|
10
|
|
|
|
|
Optionee:
|
|
|
|
|
Grant Date:
|
|
|
|
|
Type of Option:
|
|
Nonstatutory Stock Option
|
|
|
Grant Number:
|
|
|
|
|
Number of Option Shares:
|
|
|
|
shares
|
Exercise Price:
|
$
|
|
|
per share
|
First Vest Date:
|
|
|
|
|
Expiration Date:
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
|
|
Restricted Shares:
|
|
|
|
|
|
|
|
|
|
First Vest Date:
|
|
|
,20
________________
|
|
Employee ID:
|
|
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
|
|
Restricted Shares:
|
|
|
|
|
|
|
|
|
|
First Vest Date:
|
|
|
,20
________________
|
|
Employee ID:
|
|
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
|
|
Restricted Shares:
|
|
|
|
|
|
|
|
|
|
First Vest Date:
|
|
________________
,20
______
(the first annual anniversary of the vesting commencement date)
|
Employee ID:
|
|
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
|
|
Restricted Shares:
|
|
|
|
|
|
|
|
|
|
First Vest Date:
|
|
________________
,20
______
(the first annual anniversary of the vesting commencement date)
|
Employee ID:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Target Amount of Performance-Based Stock Units:
|
|
|
|
|
|
|
|
Vest Date:
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Target Amount of Performance-Based Stock Units:
|
|
|
|
|
|
|
|
Vest Date:
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Target Amount of Performance-Based Stock Units:
|
|
|
|
|
|
|
|
Vest Date:
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Target Amount of Performance-Based Stock Units:
|
|
|
|
|
|
|
|
Vest Date:
|
|
|
|
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
||
Grant Date:
|
|
|
|
|
|
|
|
||
Grant Number:
|
|
|
|
|
|
|
|
||
Restricted Stock Units:
|
|
|
|
|
|
|
|
||
First Vest Date:
|
|
|
|
|
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
||
Grant Date:
|
|
|
|
|
|
|
|
||
Grant Number:
|
|
|
|
|
|
|
|
||
Restricted Stock Units:
|
|
|
|
|
|
|
|
||
First Vest Date:
|
|
|
|
|
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
||
Grant Date:
|
|
|
|
|
|
|
|
||
Grant Number:
|
|
|
|
|
|
|
|
||
Restricted Stock Units:
|
|
|
|
|
|
|
|
||
First Vest Date:
|
|
|
|
|
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
||
Grant Date:
|
|
|
|
|
|
|
|
||
Grant Number:
|
|
|
|
|
|
|
|
||
Restricted Stock Units:
|
|
|
|
|
|
|
|
||
First Vest Date:
|
|
|
|
|
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
||
Grant Date:
|
|
|
|
|
|
|
|
||
Grant Number:
|
|
|
|
|
|
|
|
||
Restricted Stock Units:
|
|
|
|
|
|
|
|
||
First Vest Date:
|
|
|
|
|
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
||
Grant Date:
|
|
|
|
|
|
|
|
||
Grant Number:
|
|
|
|
|
|
|
|
||
Restricted Stock Units:
|
|
|
|
|
|
|
|
||
First Vest Date:
|
|
|
|
|
|
|
|
|
|
Employee ID:
|
|
|
|
|
|
|
|
||
Grant Date:
|
|
|
|
|
|
|
|
||
Grant Number:
|
|
|
|
|
|
|
|
||
Restricted Stock Units:
|
|
|
|
|
|
|
|
||
First Vest Date:
|
|
|
|
|
|
[concluding text]
|
|
Sincerely,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferral Election for
Annual Equity Award
2005 Stock Incentive Plan
|
|
|
|
||||
|
|
|||||
Name (Last, First, Middle Initial)
|
|
Employee Number
|
|
•
|
|
Indicate the percentage of your annual restricted stock unit grant under the 2005 Stock Incentive Plan that you wish to defer. Your elected percentage will apply to each vesting installment of such grant.
|
|
•
|
|
Designate the settlement timing of the deferred portion of your vested annual restricted stock unit grant.
|
|
|
|
|
|
D
EFERRAL
E
LECTION
|
|
Please select if you wish to defer restricted stock units; fill in the appropriate blanks.
|
||
|
|
|
||
å
|
|
Restricted Stock
Unit Grant |
|
I elect to defer
% (you may only insert 25%, 50%, 75%, or 100%) of my annual restricted stock unit award anticipated to be granted under the 2005 Stock Incentive Plan (the “Plan”) on
, 201
(subject to my continued employment with the Company or the Employer). I understand that this elected percentage will apply to each vesting installment of this grant.
|
|
|
|
|
|
S
ETTLEMENT
D
ATE
*
|
|
Please complete this section to indicate settlement timing for the deferred portion of your vested annual restricted stock unit grant. You may only choose one alternative.
|
||
|
|
|
||
å
OR
|
|
Separation of Service
|
|
I elect to defer the settlement of the deferred portion of my vested annual restricted stock unit grant to my Separation from Service (as defined in Section 409A of the Internal Revenue Code).
|
|
|
|
||
å
|
|
Date Specific (subject
to earlier settlement upon separation from service) |
|
I elect to defer the settlement of the deferred portion of my vested annual restricted stock unit grant to the earlier of (i) my Separation from Service; or (ii) the first business day of 20
(insert a year no earlier than [ ] and no later than [ ].
|
*
|
Any vested portion of the deferred portion of my restricted stock unit grant will be settled in shares of the Company’s common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferral Election for
Annual Equity Award
2005 Stock Incentive Plan
|
|
•
|
|
To the extent I do not elect to defer the settlement of my restricted stock unit grant, such portion of the restricted stock unit grant will be automatically settled in shares of the Company’s common stock upon the vesting of the restricted stock unit grant (subject to acceleration in certain cases), as more fully set forth in the Stock Unit Agreement.
|
|
•
|
|
Any vested portion of the deferred restricted stock unit grant will be settled in shares of the Company’s common stock as elected by me above.
|
|
•
|
|
If my Separation from Service occurs before my restricted stock unit grant vests, any unvested restricted stock units will be forfeited as of the date my Separation from Service occurs.
|
|
•
|
|
“Separation from Service” is defined in Treasury Regulation Section 1.409A-1(h). While separation from service generally means termination of employment, a Separation from Service can also occur in the case of certain leaves of absence or upon a significant reduction in my work schedule. These events can trigger a “Separation from Service” resulting in the forfeiture of my unvested restricted stock units.
|
|
•
|
|
Certain leaves of absence can result in the suspension of vesting of my unvested restricted stock units. If I take a leave of absence that suspends the vesting of my restricted stock units such that they are unvested as of the applicable distribution event (whether that is Separation from Service or a date specific I elected), my restricted stock units that are unvested at the time of such distribution event shall be forfeited.
|
|
•
|
|
Any employment taxes that are due upon the vesting of my restricted stock unit grant (including the deferred portion of my grant) shall be deducted at the time of vesting by one or a combination of the following:
|
|
(1)
|
withholding from my wages or other cash compensation payable to me by the Company or the Employer;
|
|
(2)
|
withholding from proceeds of the sale of shares acquired upon settlement of the restricted stock units either through a voluntary sale or through a mandatory sale arranged by the Company (on my behalf pursuant to this authorization);
|
|
(3)
|
withholding of shares that would otherwise be issued upon settlement of the restricted stock units; or
|
|
(4)
|
requiring me to satisfy the liability for any employment taxes by means of any other arrangement approved by the Company.
|
|
•
|
|
The receipt of shares of the Company’s common stock pursuant to any restricted stock unit grant will be taxed as ordinary income to me based on the value of the shares on the date the stock unit grant is settled and I receive shares of the Company’s common stock. This is true whether or not I elect to defer settlement of my restricted stock units.
|
|
•
|
|
The settlement of the deferred portion of my annual restricted stock unit grant upon my Separation from Service will be delayed for six
months.
|
|
|
|
|
Grantee:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Stock Units:
|
|
|
|
|
|
|
|
|
|
|
|
Grantee:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Restricted Stock Units:
|
|
|
|
|
|
|
|
Vest Date:
|
________________
(the date of the Annual Meeting of Shareholders following the initial election or appointment date)
|
|
|
|
|
Grantee:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Restricted Stock Units:
|
|
|
|
|
|
|
|
Vest Date:
|
|
The completion of one (1) year of Board service measured from the Grant Date.
|
|
|
|
|
Grantee:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Restricted Stock Units:
|
|
|
|
|
|
|
|
Vest Date:
|
|
The completion of one (1) year of Board service measured from the Grant Date.
|
|
|
|
|
Grantee:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Restricted Stock Units:
|
|
|
|
|
|
|
|
Grantee:
|
|
|
|
|
|
|
|
Grant Date:
|
|
|
|
|
|
|
|
Grant Number:
|
|
|
|
|
|
|
|
Restricted Stock Units:
|
|
|
|
|
|
|
DATED:
|
|
|
|
|
|
CISCO SYSTEMS, INC.
|
||
|
|
|
By:
|
|
|
Title:
|
|
|
|
||
|
||
GRANTEE
|
•
|
a non-deferred cash payment (default option),
|
•
|
a
deferred
cash payment under the Company’s Deferred Compensation Plan (the “DCP”),
|
•
|
a vested stock grant under the 2005 Stock Incentive Plan (the “Plan”), and/or
|
•
|
a vested
deferred
stock unit (“DSU”) grant under the Plan.
|
Alternative
|
Election Amount
(0% to 100%, in increments of 25%)
|
Election under the DCP
Separation from Service
|
Non-Deferred Cash
(default option)
|
%
(e.g. 0%, 25%, 50%, 75% or 100%)
|
N/A
|
Deferred
Cash under the Deferred Compensation Plan
|
%
|
I elect to receive my DCP account balance (choose
one
of the options below):
¨
as soon as practicable after my “Separation from Service,” but no later than 30 days after my Separation from Service.
¨
as soon as practicable in the calendar year following the calendar year of my “Separation from Service,” but no later than January 31.
|
Vested Stock Grant
|
%
|
N/A
|
Vested DSU Grant
|
%
|
N/A
|
TOTAL
|
100%
|
|
•
|
If I elect to receive
deferred cash
under the DCP:
|
o
|
I authorize the Company to share my personal information with the third-party DCP administrator so that the DCP administrator can begin the enrollment process in order for me to make investment and beneficiary elections pursuant to the terms of the DCP.
|
o
|
I will receive my DCP account balance in a cash lump sum, taxable as ordinary income, pursuant to my election above. If I make no election, I will receive my DCP account balance as soon as practicable after my “Separation from Service” within the meaning under Section 409A of the Internal Revenue Code, which generally will be the date my service as a member of the Board of Directors of the Company terminates; provided however, such payment date will be no later than 30 days after my Separation from Service.
|
•
|
If I elect to receive a
vested stock grant
, the shares will be granted on the date of my election or appointment as a non-employee member of the Board of Directors of the Company based on the closing value of the Company’s common stock on such date (the “Fair Market Value”), the shares will be taxed as ordinary income to me based on the Fair Market Value, and I will receive the shares as soon as practicable after that date.
|
•
|
If I elect to receive a
vested DSU grant
:
|
o
|
The DSU grant will be granted on the date of my election or appointment as a non-employee member of the Board of Directors of the Company based on the Fair Market Value.
|
o
|
The DSU grant will be settled in shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Dividend equivalents
will accrue
on the DSU grant and will be credited as additional DSUs to be settled in additional shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Receipt of shares of the Company’s common stock pursuant to the DSU grant will be taxed as ordinary income to me based on the value of the shares on the date the DSU grant is settled and I receive shares of the Company’s common stock.
|
•
|
If I do not elect to defer the issuance of my initial stock grant, the shares will be granted on the date of my election or appointment as a non-employee member of the Board of Directors of the Company based on the closing value of the Company’s common stock on such date (the “Fair Market Value”), the shares will be taxed as ordinary income to me based on the Fair Market Value, and I will receive the shares as soon as practicable after that date.
|
•
|
If I elect to defer the issuance of my initial stock grant:
|
o
|
The grant will not be issued in shares of the Company’s common stock as set forth above, but instead will be granted as a fully vested deferred stock unit (“DSU”) on the date of my election or appointment as a non-employee member of the Board of Directors of the Company based on the Fair Market Value.
|
o
|
The DSU grant will be settled in shares of the Company’s common stock on, or as soon as practicable after, my “Separation from Service” within the meaning under Section 409A of the Internal Revenue Code; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Dividend equivalents
will accrue
on the DSU grant and will be credited as additional DSUs to be settled in additional shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Receipt of shares of the Company’s common stock pursuant to the DSU grant will be taxed as ordinary income to me based on the value of the shares on the date the DSU grant is settled and I receive shares of the Company’s common stock.
|
|
|
|
|
|
Signature of Non-Employee Director
|
|
Date
|
|
|
•
|
If I do not elect to defer the settlement of my initial restricted stock unit grant, the grant will be automatically settled in shares of the Company’s common stock on, or as soon as practicable after, the vesting of the grant on the date of the Company’s Annual Meeting of Shareholders following the date of grant (subject to acceleration in certain cases), as more fully set forth in the Stock Unit Agreement.
|
•
|
If my “Separation from Service” within the meaning under Section 409A of the Internal Revenue Code (“Separation from Service”) occurs before my initial restricted stock unit grant vests, the grant will be forfeited.
|
•
|
If I elect to defer the settlement of my initial restricted stock unit grant:
|
o
|
The grant will not be settled in shares of the Company’s common stock upon the above-described vesting date, but instead will be deferred and settled in shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service.
|
o
|
Dividend equivalents
will accrue after the deferred stock unit grant vests
and will be credited as additional deferred stock units to be settled in additional shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service.
|
o
|
Receipt of shares of the Company’s common stock pursuant to any deferred stock unit grant will be taxed as ordinary income to me based on the value of the shares on the date the deferred stock unit grant is settled and I receive shares of the Company’s common stock.
|
|
|
|
|
|
Signature of Non-Employee Director
|
|
Date
|
|
|
•
|
a non-deferred cash payment (default option),
|
•
|
a
deferred
cash payment under the Company’s Deferred Compensation Plan (the “DCP”),
|
•
|
a vested stock grant under the 2005 Stock Incentive Plan (the “Plan”), and/or
|
•
|
a vested
deferred
stock unit (“DSU”) grant under the Plan.
|
Alternative
|
Election Amount
(0% to 100%, in increments of 25%)
|
Election under the DCP
Separation from Service
|
Non-Deferred Cash
(default option)
|
%
(e.g. 0%, 25%, 50%, 75% or 100%)
|
N/A
|
Deferred
Cash under the Deferred Compensation Plan
|
%
|
I elect to receive my DCP account balance (choose
one
of the options below):
as soon as practicable after my “Separation from Service,” but no later than 30 days after my Separation from Service.
as soon as practicable in the calendar year following the calendar year of my “Separation from Service,” but no later than January 31.
|
Vested Stock Grant
|
%
|
N/A
|
Vested DSU Grant
|
%
|
N/A
|
TOTAL
|
100%
|
|
•
|
If I elect to receive
deferred cash
under the DCP:
|
o
|
I authorize the Company to share my personal information with the third-party DCP administrator so that the DCP administrator can begin the enrollment process in order for me to make investment and beneficiary elections pursuant to the terms of the DCP.
|
o
|
I will receive my DCP account balance in a cash lump sum, taxable as ordinary income, pursuant to my election above. If I make no election, I will receive my DCP account balance as soon as practicable after my “Separation from Service” within the meaning under Section 409A of the Internal Revenue Code, which generally will be the date my service as a member of the Board of Directors of the Company terminates; provided however, such payment date will be no later than 30 days after my Separation from Service.
|
•
|
If I elect to receive a
vested stock grant
, the shares will be granted on the date of the Annual Meeting of Shareholders based on the closing value of the Company’s common stock on such date (the “Fair Market Value”), the shares will be taxed as ordinary income to me based on the Fair Market Value, and I will receive the shares as soon as practicable after that date.
|
•
|
If I elect to receive a
vested DSU grant
:
|
o
|
The DSU grant will be granted on the date of the Annual Meeting of Shareholders based on the Fair Market Value.
|
o
|
The DSU grant will be settled in shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Dividend equivalents
will accrue
on the DSU grant and will be credited as additional DSUs to be settled in additional shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Receipt of shares of the Company’s common stock pursuant to the DSU grant will be taxed as ordinary income to me based on the value of the shares on the date the DSU grant is settled and I receive shares of the Company’s common stock.
|
•
|
If I do not elect to defer the issuance of my annual stock grant, the shares will be granted on the date of the Annual Meeting of Shareholders based on the closing value of the Company’s common stock on such date (the “Fair Market Value”), the shares will be taxed as ordinary income to me based on the Fair Market Value, and I will receive the shares as soon as practicable after that date.
|
•
|
If I elect to defer the issuance of my annual stock grant:
|
o
|
The grant will not be issued in shares of the Company’s common stock as set forth above, but instead will be granted as a fully vested deferred stock unit (“DSU”) on the date of the Annual Meeting of Shareholders based on the Fair Market Value.
|
o
|
The DSU grant will be settled in shares of the Company’s common stock on, or as soon as practicable after, my “Separation from Service” within the meaning under Section 409A of the Internal Revenue Code; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Dividend equivalents
will accrue
on the DSU grant and will be credited as additional DSUs to be settled in additional shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service; provided however, such settlement shall occur no later than 30 days after my Separation from Service.
|
o
|
Receipt of shares of the Company’s common stock pursuant to the DSU grant will be taxed as ordinary income to me based on the value of the shares on the date the DSU grant is settled and I receive shares of the Company’s common stock.
|
|
|
|
|
|
Signature of Non-Employee Director
|
|
Date
|
|
|
•
|
a non-deferred cash payment (default option),
|
•
|
a
deferred
cash payment under the Company’s Deferred Compensation Plan (the “DCP”),
|
•
|
a vested stock grant under the 2005 Stock Incentive Plan (the “Plan”), and/or
|
•
|
a vested
deferred
stock unit grant under the Plan.
|
Alternative
|
Election Amount
(0% to 100%, in increments of 25%)
|
Election under the DCP
Separation from Service
|
Non-Deferred Cash
(default option)
|
%
(e.g. 0%, 25%, 50%, 75% or 100%)
|
N/A
|
Deferred
Cash under the Deferred Compensation Plan
|
%
|
I elect to receive my DCP account balance (choose
one
of the options below):
o
as soon as practicable after my “Separation from Service”
o
as soon as practicable in the calendar year following the calendar year of my “Separation from Service”
|
Vested Stock Grant
|
%
|
N/A
|
Vested Deferred
Stock Unit Grant
|
%
|
N/A
|
TOTAL
|
100%
|
|
•
|
If I elect to receive
deferred cash
under the DCP:
|
◦
|
I authorize the Company to share my personal information with the third-party DCP administrator so that the DCP administrator can begin the enrollment process in order for me to make investment and beneficiary elections pursuant to the terms of the DCP.
|
◦
|
I will receive my DCP account balance in a cash lump sum, taxable as ordinary income, pursuant to my election above. If I make no election, I will receive my DCP account balance as soon as practicable after my “Separation from Service” within the meaning under Section 409A of the Internal Revenue Code, which generally will be the date my service as a member of the Board of Directors of the Company terminates.
|
•
|
If I elect to receive a
vested stock grant
, the shares will be granted on the date of the Annual Meeting of Shareholders based on the closing value of the Company’s common stock on such date (the “Fair Market Value”), the shares will be taxed as ordinary income to me based on the Fair Market Value, and I will receive the shares as soon as practicable after that date.
|
•
|
If I elect to receive a
vested deferred stock unit grant
:
|
◦
|
The deferred stock unit grant will be granted on the date of the Annual Meeting of Shareholders based on the Fair Market Value.
|
◦
|
The deferred stock unit grant will be settled in shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service.
|
◦
|
Dividend equivalents
will accrue
on the vested deferred stock unit grant and will be credited as additional deferred stock units to be settled in additional shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service.
|
◦
|
Receipt of shares of the Company’s common stock pursuant to the deferred stock unit grant will be taxed as ordinary income to me based on the value of the shares on the date the deferred stock unit grant is settled and I receive shares of the Company’s common stock.
|
•
|
If I do not elect to defer the settlement of my annual restricted stock unit grant, the grant will be automatically settled in shares of the Company’s common stock on, or as soon as practicable after, the vesting of the grant upon the completion of one year of Board service following the date of grant (subject to acceleration in certain cases), as more fully set forth in the Stock Unit Agreement.
|
•
|
If my Separation from Service occurs before my annual restricted stock unit grant vests, the grant will be forfeited.
|
•
|
If I elect to defer the settlement of my annual restricted stock unit grant:
|
◦
|
The grant will not be settled in shares of the Company’s common stock upon the above-described vesting date, but instead will be deferred and settled in shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service.
|
◦
|
Dividend equivalents
will accrue after the deferred stock unit grant vests
and will be credited as additional deferred stock units to be settled in additional shares of the Company’s common stock on, or as soon as practicable after, my Separation from Service.
|
◦
|
Receipt of shares of the Company’s common stock pursuant to any deferred stock unit grant will be taxed as ordinary income to me based on the value of the shares on the date the deferred stock unit grant is settled and I receive shares of the Company’s common stock.
|
|
|
|
|
|
Signature of Non-Employee Director
|
|
Date
|
|
|
|
•
|
|
the value of stock options and stock appreciation rights is based on the difference between the exercise price of the equity awards and the closing price of Cisco’s stock on the date of the employee’s death or terminal illness, as applicable, or if such day is not a trading day, the last trading day prior to the date of death or terminal illness, as applicable;
|
|
•
|
|
the value of stock grants, stock units, and unvested shares previously acquired pursuant to equity awards (such shares are referred to herein as “unvested equity award shares”) is based on the difference between the purchase price, if any, and the closing price of Cisco’s stock on the date of the employee’s death or terminal illness, as applicable, or if such day is not a trading day, the last trading day prior to the date of death or terminal illness, as applicable;
|
|
•
|
|
“unvested equity award shares” includes outstanding and unvested performance-based restricted stock or stock unit awards and the accelerated vesting of such awards will be deemed to occur at target levels, subject to the specified limits below; and
|
|
•
|
|
to the extent the vesting of any performance-based restricted stock or stock unit award is accelerated pursuant to this policy, the award will be settled upon the death or terminal illness of an employee, as the case may be, except that if the applicable award is subject to Section 409A of the Internal Revenue Code (“Code Section 409A”) and such terminal illness does not qualify as a “Disability” within the meaning of Code Section 409A, then the award will instead be settled on the fixed payment date following the end of the performance period on which the applicable award is normally paid out.
|
Subsidiaries
|
State Or Other
Jurisdiction of
Incorporation or
Organization
|
302 Direct Media LLC
|
Delaware
|
Acano (UK) Limited
|
United Kingdom
|
Acano AS
|
Norway
|
Acano Federal LLC
|
Delaware
|
Acano LLC
|
Delaware
|
Airespace Wireless Networks Private Limited
|
India
|
AppDynamics Aktiebolag
|
Sweden
|
AppDynamics ApS
|
Denmark
|
AppDynamics Asia Pacific Pte Ltd
|
Singapore
|
AppDynamics Australia Pty Ltd
|
Australia
|
AppDynamics GmbH
|
Germany
|
AppDynamics International Holdings Ltd.
|
Bermuda
|
AppDynamics International LLC
|
Delaware
|
AppDynamics International Ltd.
|
United Kingdom
|
AppDynamics Japan GK
|
Japan
|
AppDynamics LLC
|
Delaware
|
AppDynamics Netherlands B.V.
|
Netherlands
|
AppDynamics Proprietary Limited
|
South Africa
|
AppDynamics S. de R.L. de C.V.
|
Mexico
|
AppDynamics S.L.
|
Spain
|
AppDynamics S.r.l.
|
Italy
|
AppDynamics SA
|
Switzerland
|
AppDynamics SARL
|
France
|
AppDynamics Sdn. Bhd.
|
Malaysia
|
AppDynamics Technologies FZ-LLC
|
United Arab Emirates
|
AppDynamics Technologies India Private Limited
|
India
|
AppDynamics Technologies Intermediacao de Software Ltda
|
Brazil
|
AppDynamics Technologies Ltd.
|
Canada
|
AppDynamics UK Ltd.
|
United Kingdom
|
Beaumaris Networks LLC
|
Delaware
|
Beijing NDS Information Technology Co., Ltd.
|
China
|
BGPmon Network Solutions Inc.
|
Canada
|
BroadHop India Private Limited
|
India
|
BroadHop International B.V.
|
Netherlands
|
BroadHop LLC
|
Delaware
|
Callway LLC
|
Delaware
|
Castup Israel Ltd.
|
Israel
|
Center for Cisco Heritage, LLC
|
Delaware
|
Cisco (China) Innovation Technology Co., Ltd.
|
China
|
Cisco (China) Technology Services Co., Ltd.
|
China
|
Cisco (Saudi Arabia) Support Limited
|
Saudi Arabia
|
Cisco Albania SHPK
|
Albania
|
Cisco Bahrain (SPC)
|
Bahrain
|
Cisco Bilgisayar ve Internet Sistemleri Limited Sirketi
|
Turkey
|
Cisco Capital (Dubai) Limited
|
United Arab Emirates
|
Cisco Capital Mexico, S. de R.L. de C.V.
|
Mexico
|
Cisco China Company, Limited
|
China
|
Cisco China Holdings (HK) Limited
|
Hong Kong
|
Cisco Comercio e Servicos de Hardware e Software do Brasil Ltda
|
Brazil
|
Cisco Commerce India Private Limited
|
India
|
Subsidiaries
|
State Or Other
Jurisdiction of
Incorporation or
Organization
|
Cisco Development India Private Limited
|
India
|
Cisco do Brasil Ltda
|
Brazil
|
Cisco Holdings Cayman Ltd
|
Cayman Islands
|
Cisco Innovation International Sàrl
|
Switzerland
|
Cisco International Holdings B.V.
|
Netherlands
|
Cisco International Israel Limited
|
Israel
|
Cisco International Limited
|
United Kingdom
|
Cisco International Taiwan, Ltd.
|
Taiwan
|
Cisco Internetworking Limited Liability Company
|
Armenia
|
Cisco Internetworking Systems Hellas S.A.
|
Greece
|
Cisco Investments B.V.
|
Netherlands
|
Cisco Investments LLC
|
Delaware
|
Cisco Ironport Systems LLC
|
Delaware
|
Cisco ISH B.V.
|
Netherlands
|
Cisco ISH II B.V.
|
Netherlands
|
Cisco Malaysia Managed Services SDN. BHD.
|
Malaysia
|
Cisco Managed Services Nigeria Limited
|
Nigeria
|
Cisco Managed Solutions, Inc.
|
Delaware
|
Cisco MindMeld LLC
|
Delaware
|
Cisco Morocco
|
Morocco
|
Cisco Norway AS
|
Norway
|
Cisco Norway Holdings AS
|
Norway
|
Cisco OpenDNS LLC
|
Delaware
|
Cisco Optical GmbH
|
Germany
|
Cisco Photonics Italy S.r.l.
|
Italy
|
Cisco QSTP-LLC
|
Qatar
|
Cisco Ravenscourt LLC
|
Delaware
|
Cisco Renting Italy S.r.l.
|
Italy
|
Cisco RG Israel Ltd
|
Israel
|
Cisco Saudi Arabia Limited
|
Saudi Arabia
|
Cisco SCM (Thailand) Limited
|
Thailand
|
Cisco Serbia doo Beograd
|
Serbia
|
Cisco Services (Hong Kong) Limited
|
Hong Kong
|
Cisco Services Korea Limited
|
Korea, Republic of
|
Cisco Services Malaysia SDN BHD
|
Malaysia
|
Cisco Solutions GmbH
|
Germany
|
Cisco Solutions Guatemala, Limitada
|
Guatemala
|
Cisco Systems (Argentina) S.A.
|
Argentina
|
Cisco Systems (Bermuda) Holdings Ltd.
|
Bermuda
|
Cisco Systems (China) Information Technology Services Limited
|
China
|
Cisco Systems (China) Networking Technology Co., Ltd.
|
China
|
Cisco Systems (China) Research and Development Co., Ltd.
|
China
|
Cisco Systems (Colombia) Limitada
|
Colombia
|
Cisco Systems (Czech Republic) s.r.o.
|
Czech Republic
|
Cisco Systems (Ethiopia) PLC
|
Ethiopia
|
Cisco Systems (HK) Holdings Limited
|
Hong Kong
|
Cisco Systems (HK) Limited
|
Hong Kong
|
Cisco Systems (India) Private Limited
|
India
|
Cisco Systems (Italy) S.r.l.
|
Italy
|
Cisco Systems (Jordan)
|
Jordan
|
Cisco Systems (Korea) Limited
|
Korea, Republic of
|
Cisco Systems (Malaysia) SDN. BHD.
|
Malaysia
|
Subsidiaries
|
State Or Other
Jurisdiction of
Incorporation or
Organization
|
Cisco Systems (Myanmar) Company Limited
|
Myanmar
|
Cisco Systems (Nigeria) Limited
|
Nigeria
|
Cisco Systems (Puerto Rico) Corp.
|
Delaware
|
Cisco Systems (Scotland) Limited
|
Scotland
|
Cisco Systems (Senegal) SUARL
|
Senegal
|
Cisco Systems (Shanghai) Video Technology Co., Ltd.
|
China
|
Cisco Systems (South Africa) (Proprietary) Limited
|
South Africa
|
Cisco Systems (Spain), S.L.
|
Spain
|
Cisco Systems (Sweden) AB
|
Sweden
|
Cisco Systems (Switzerland) GmbH
|
Switzerland
|
Cisco Systems (Switzerland) Investments Ltd.
|
Bermuda
|
Cisco Systems (Thailand) Limited
|
Thailand
|
Cisco Systems (Trinidad & Tobago) Limited
|
Trinidad and Tobago
|
Cisco Systems (USA) Pte. Ltd.
|
Singapore
|
Cisco Systems Algeria EURL
|
Algeria
|
Cisco Systems Australia Pty Limited
|
Australia
|
Cisco Systems Austria GmbH
|
Austria
|
Cisco Systems Belgium SPRL
|
Belgium
|
Cisco Systems Bulgaria EOOD
|
Bulgaria
|
Cisco Systems Canada Co. / Les Systemes Cisco Canada CIE
|
Canada
|
Cisco Systems Capital (Australia) Pty Limited
|
Australia
|
Cisco Systems Capital (India) Private Limited
|
India
|
Cisco Systems Capital (Korea) Limited
|
Korea, Republic of
|
Cisco Systems Capital (Thailand) Limited
|
Thailand
|
Cisco Systems Capital Asia Pte. Ltd.
|
Singapore
|
Cisco Systems Capital Canada Co./Les Systemes Cisco Capital Canada CIE
|
Canada
|
Cisco Systems Capital China Corporation
|
China
|
Cisco Systems Capital Corporation
|
Nevada
|
Cisco Systems Capital France SAS
|
France
|
Cisco Systems Capital GmbH
|
Germany
|
Cisco Systems Capital Italy S.r.l.
|
Italy
|
Cisco Systems Capital K.K.
|
Japan
|
Cisco Systems Capital Netherlands B.V.
|
Netherlands
|
Cisco Systems Capital SDN. BHD.
|
Malaysia
|
Cisco Systems Capital South Africa (Proprietary) Limited
|
South Africa
|
Cisco Systems Capital Spain, S.L.
|
Spain
|
Cisco Systems Chile S.A.
|
Chile
|
Cisco Systems Costa Rica, Sociedad Anonima
|
Costa Rica
|
Cisco Systems Croatia Ltd. For Trade
|
Croatia
|
Cisco Systems Cyprus Ltd.
|
Cyprus
|
Cisco Systems Danmark ApS
|
Denmark
|
Cisco Systems de Mexico, S. de R.L. de C.V.
|
Mexico
|
Cisco Systems Dominicana, S.R.L.
|
Dominican Republic
|
Cisco Systems Ecuador S.A.
|
Ecuador
|
Cisco Systems Egypt Ltd.
|
Egypt
|
Cisco Systems El Salvador, Ltda. de C.V.
|
El Salvador
|
Cisco Systems Estonia OU
|
Estonia
|
Cisco Systems Finance International Unlimited Company
|
Ireland
|
Cisco Systems Finland OY
|
Finland
|
Cisco Systems France Sarl
|
France
|
Cisco Systems G.K.
|
Japan
|
Cisco Systems GmbH
|
Germany
|
Subsidiaries
|
State Or Other
Jurisdiction of
Incorporation or
Organization
|
Cisco Systems Holding GmbH
|
Germany
|
Cisco Systems Holdings UK Limited
|
United Kingdom
|
Cisco Systems Hungary Ltd. / Cisco Systems Hungary Servicing and Trading Limited Liability Company
|
Hungary
|
Cisco Systems International B.V.
|
Netherlands
|
Cisco Systems International FZ-LLC
|
United Arab Emirates
|
Cisco Systems International SARL
|
Switzerland
|
Cisco Systems Internetworking (Ireland) Limited
|
Ireland
|
Cisco Systems Internetworking d.o.o. Za Marketing, Tehnicke I Druge Usluge Sarajevo
|
Bosnia and Herzegovina
|
Cisco Systems Internetworking Iletisim Hizmetleri Limited Sirketi
|
Turkey
|
Cisco Systems Island Ehf.
|
Iceland
|
Cisco Systems Israel Ltd.
|
Israel
|
Cisco Systems Jamaica Limited
|
Jamaica
|
Cisco Systems Limited
|
United Kingdom
|
Cisco Systems LLC
|
Oman
|
Cisco Systems Luxembourg International s.à r.l.
|
Luxembourg
|
Cisco Systems Luxembourg s.à r.l.
|
Luxembourg
|
Cisco Systems Macedonia DOOEL Skopje
|
Macedonia, the former Yugoslav Republic of
|
Cisco Systems Management B.V.
|
Netherlands
|
Cisco Systems Management Ltd.
|
Bermuda
|
Cisco Systems Moçambique, Limitada
|
Mozambique
|
Cisco Systems Netherlands Holdings B.V.
|
Netherlands
|
Cisco Systems New Zealand Limited
|
New Zealand
|
Cisco Systems Norway AS
|
Norway
|
Cisco Systems Pakistan (Private) Limited
|
Pakistan
|
Cisco Systems Panama S. de R.L.
|
Panama
|
Cisco Systems Peru S.A.
|
Peru
|
Cisco Systems Poland Sp. z o. o.
|
Poland
|
Cisco Systems Portugal - Sistemas Informáticos, Sociedade Unipessoal, Limitada
|
Portugal
|
Cisco Systems Romania S.r.l.
|
Romania
|
Cisco Systems Services B.V.
|
Netherlands
|
Cisco Systems Slovakia, spol. s. r.o.
|
Slovakia
|
Cisco Systems Taiwan, Ltd.
|
Taiwan
|
Cisco Systems Uruguay S.R.L.
|
Uruguay
|
Cisco Systems Venezuela, C.A.
|
the Bolivarian Republic of Venezuela
|
Cisco Systems Vietnam Limited (Cong Ty Trach Nhiem Huu Han Cisco Systems Vietnam)
|
Vietnam
|
Cisco Technologies (Beijing) Co., Ltd
|
China
|
Cisco Technologies (Thailand) Limited
|
Thailand
|
Cisco Technologies New Zealand Limited
|
New Zealand
|
Cisco Technologies Philippines, Inc.
|
Philippines
|
Cisco Technology (China) Co., Ltd.
|
China
|
Cisco Technology and Services (South Africa) (Pty) Ltd.
|
South Africa
|
Cisco Technology Bangladesh Ltd.
|
Bangladesh
|
Cisco Technology Belgium BVBA
|
Belgium
|
Cisco Technology Denmark ApS
|
Denmark
|
Cisco Technology Services (Dalian) Co., Ltd.
|
China
|
Cisco Technology, Inc.
|
California
|
Cisco THV LLC
|
Delaware
|
Cisco Tunisia SARL
|
Tunisia
|
Cisco Video Technologies France SAS
|
France
|
Cisco Video Technologies India Private Limited
|
India
|
Subsidiaries
|
State Or Other
Jurisdiction of
Incorporation or
Organization
|
Cisco Video Technologies Israel Ltd.
|
Israel
|
Cisco WebEx LLC
|
Delaware
|
Cisco Worldwide Holdings Ltd.
|
Bermuda
|
Cisco-Navini Networks LLC
|
Delaware
|
CliQr Technologies India Pvt Ltd
|
India
|
CliQr Technologies LLC
|
California
|
CliQr Technologies U.K. Limited
|
United Kingdom
|
CloudLock LLC
|
Delaware
|
CloudLock UK Ltd
|
United Kingdom
|
Cloudlock, Ltd.
|
Israel
|
Cloupia LLC
|
California
|
Cloupia Software Solutions Private Limited
|
India
|
Cognitive Security s.r.o.
|
Czech Republic
|
Composite Software LLC
|
Delaware
|
CoreOptics LLC
|
Delaware
|
CSI BD (Mauritius)
|
Mauritius
|
CSI Mauritius Inc.
|
Mauritius
|
Cyber Security S.L.
|
Spain
|
Digi-Media Vision Limited
|
United Kingdom
|
DocumentReady ApS
|
Denmark
|
ExtendMedia LLC
|
Delaware
|
Greenfield Networks LLC
|
California
|
Greenfield Networks Technologies Private Limited
|
India
|
Heroik LLC
|
Delaware
|
Intucell Ltd.
|
Israel
|
Jasper International Services LLC
|
Delaware
|
Jasper Netherlands B.V.
|
Netherlands
|
Jasper Technologies Australia Pty Ltd
|
Australia
|
Jasper Technologies Canada Limited
|
Canada
|
Jasper Technologies Ireland Limited
|
Ireland
|
Jasper Technologies Limited
|
United Kingdom
|
Jasper Technologies LLC
|
Delaware
|
Jasper Technologies Singapore Pte Ltd.
|
Singapore
|
Jasper Tecnologia do Brasil Ltda.
|
Brazil
|
JouleX GK
|
Japan
|
JouleX GmbH
|
Germany
|
JouleX LLC
|
Delaware
|
Lancope LLC
|
Delaware
|
Leaba Semiconductor Ltd.
|
Israel
|
Limited Liability Company Cisco Capital CIS
|
Russian Federation
|
Limited Liability Company Cisco Innovation Center
|
Russian Federation
|
Limited Liability Company Cisco Solutions
|
Russian Federation
|
Limited Liability Company Cisco Systems
|
Russian Federation
|
MaintenanceNet LLC
|
Delaware
|
Memoir Systems India Pvt Ltd
|
India
|
Memoir Systems LLC
|
California
|
Meraki Japan G.K.
|
Japan
|
Meraki Limited
|
United Kingdom
|
Meraki LLC
|
Delaware
|
Meraki Networks Australia Pty Limited
|
Australia
|
Mnemonic Technologies LLC
|
California
|
Navini Networks Private Limited
|
India
|
Subsidiaries
|
State Or Other
Jurisdiction of
Incorporation or
Organization
|
NDS Americas LLC
|
Delaware
|
NDS Denmark ApS
|
Denmark
|
NDS Denmark Holdings A/S
|
Denmark
|
NDS Finance Limited
|
United Kingdom
|
NDS Group Holdings Limited
|
Bermuda
|
NDS Group Limited
|
United Kingdom
|
NDS Holdings B.V.
|
Netherlands
|
NDS Limited
|
United Kingdom
|
NDS Marketing Israel Limited
|
Israel
|
NDS Sweden AB
|
Sweden
|
Neohapsis EMEA Ltd.
|
United Kingdom
|
Neohapsis International LLC
|
Delaware
|
Neohapsis LLC
|
Delaware
|
Neohapsis Software Private Limited
|
India
|
Neohapsis, Inc.
|
Illinois
|
News Datacom Limited
|
United Kingdom
|
newScale LLC
|
California
|
newScale Software Private Limited
|
India
|
One Mainstream LLC
|
Delaware
|
OnPrime TV LLC
|
Delaware
|
OpenDNS UK Ltd.
|
United Kingdom
|
Pari Networks (India) Private Limited
|
India
|
Pari Networks LLC
|
California
|
ParStream GmbH
|
Germany
|
Pawaa Software Private Limited
|
India
|
Portcullis Computer Security, Ltd.
|
United Kingdom
|
PT Cisco Systems Indonesia
|
Indonesia
|
PT. Cisco Technologies Indonesia
|
Indonesia
|
Radiata, Inc.
|
Delaware
|
Scansafe Limited
|
United Kingdom
|
Scansafe LLC
|
Delaware
|
Scansafe Services LLC
|
Delaware
|
Scientific-Atlanta, LLC
|
Georgia
|
Securent India Private Limited
|
India
|
Securent LLC
|
Delaware
|
SIA "Cisco Latvia"
|
Latvia
|
Small Wells Services S.A.
|
Uruguay
|
SolveDirect Service Management GmbH
|
Austria
|
Sourcefire Brasil Comércio E Segurança de Rede Ltda.
|
Brazil
|
Sourcefire Limited
|
United Kingdom
|
Sourcefire LLC
|
Delaware
|
Starent International LLC
|
Delaware
|
Starent Networks (India) Private Limited
|
India
|
Starent Networks Beijing Co, Ltd
|
China
|
Starent Networks India Sales and Services Private Limited
|
India
|
Starent Networks LLC
|
Delaware
|
Tail-f Systems AB
|
Sweden
|
Tandberg Asia Pacific Pte. Ltd.
|
Singapore
|
Tandberg India Private Limited
|
India
|
Tandberg Products UK Limited
|
United Kingdom
|
Tandberg Technology (India) Private Limited
|
India
|
Tandberg Telecom UK Limited
|
United Kingdom
|
Subsidiaries
|
State Or Other
Jurisdiction of
Incorporation or
Organization
|
Topspin Communications LLC
|
Delaware
|
Topspin Communications Technologies India Private Limited
|
India
|
Tropo (Europe) Limited
|
United Kingdom
|
Tropo LLC
|
Delaware
|
UAB "Cisco LT"
|
Lithuania
|
Ubiquisys Limited
|
United Kingdom
|
Voxeo Labs (Beijing) Technology, Ltd.
|
China
|
WebEx (China) Software Co., Ltd.
|
China
|
WebEx Asia Limited
|
Hong Kong
|
WebEx Australia Pty Ltd.
|
Australia
|
WebEx Communications B.V.
|
Netherlands
|
WebEx Communications Deutschland GmbH
|
Germany
|
WebEx Communications France Sarl
|
France
|
WebEx Communications India Private Limited
|
India
|
WebEx Communications Japan, K.K.
|
Japan
|
WebEx Communications UK, Ltd.
|
United Kingdom
|
WebEx Worldwide B.V.
|
Netherlands
|
1.
|
I have reviewed this annual report on Form 10-K of Cisco Systems, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/
C
harles
H.
R
obbins
|
Charles H. Robbins
|
Chief Executive Officer
(Principal Executive Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of Cisco Systems, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/
K
elly
A
.
K
ramer
|
Kelly A. Kramer
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
•
|
The Annual Report on Form 10-K of the Company for the fiscal year ended
July 29, 2017
, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/
C
harles
H.
R
obbins
|
Charles H. Robbins
|
Chief Executive Officer
(Principal Executive Officer) |
•
|
The Annual Report on Form 10-K of the Company for the fiscal year ended
July 29, 2017
, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/
K
elly
A
.
K
ramer
|
Kelly A. Kramer
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|