Acquisitions

3 Months Ended

Oct. 26, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

A summary of the allocation of the total purchase consideration of our completed acquisitions during the first quarter of fiscal 2025 is presented as follows (in millions):


	Purchase Consideration		Net Tangible Assets Acquired (Liabilities Assumed)		Purchased Intangible Assets		Goodwill
Total acquisitions	$	225	$	(14)	$	105	$	134

The total purchase consideration related to our acquisitions completed during the first quarter of fiscal 2025 consisted primarily of cash consideration. The total cash and cash equivalents acquired from these acquisitions was approximately $13 million. Total transaction costs related to acquisition activities were $9 million and $31 million for the first quarter of fiscal 2025 and 2024, respectively. These transaction costs were expensed as incurred in general and administrative expenses (“G&A”) in the Consolidated Statements of Operations.

The purchase price allocation for acquisitions completed during recent periods is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information that existed as of the acquisition date but is currently unknown to us may become known during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date.

The goodwill generated from these acquisitions completed during the first quarter of fiscal 2025 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes.

The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition. Pro forma results of operations and the revenue and net income subsequent to the acquisition date for the acquisitions completed during the first quarter of fiscal 2025 have not been presented because the effects of the acquisitions were not material to our financial results.

Compensation Expense Related to Acquisitions

In connection with our acquisitions, we have agreed to pay certain additional amounts contingent upon the continued employment with Cisco of certain employees of the acquired entities.

The following table summarizes the compensation expense related to acquisitions (in millions):


	Three Months Ended
	October 26, 2024		October 28, 2023
Compensation expense related to acquisitions	$	297	$	49

As of October 26, 2024, we estimated that future cash compensation expense of up to $1.3 billion may be required to be recognized pursuant to applicable acquisition agreements.