Shareholders' Equity

12 Months Ended

Jul. 28, 2012

Shareholders' Equity

13. Shareholders’ Equity

(a) Stock Repurchase Program

In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of July 28, 2012, the Company’s Board of Directors had authorized an aggregate repurchase of up to $82 billion of common stock under this program, and the remaining authorized repurchase amount was $5.9 billion with no termination date. A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts):

	Shares Repurchased		Weighted- Average Price per Share		Amount Repurchased
Cumulative balance at July 31, 2010		3,127	$	20.78	$	64,982
Repurchase of common stock under the stock repurchase program		351		19.36		6,791
Cumulative balance at July 30, 2011		3,478	$	20.64	$	71,773
Repurchase of common stock under the stock repurchase program		262		16.64		4,360
Cumulative balance at July 28, 2012		3,740	$	20.36	$	76,133

The purchase price for the shares of the Company’s stock repurchased is reflected as a reduction to shareholders’ equity. The Company is required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings and (ii) a reduction of common stock and additional paid-in capital. Issuance of common stock and the tax benefit related to employee stock incentive plans are recorded as an increase to common stock and additional paid-in capital.

(b) Cash Dividends on Shares of Common Stock

During fiscal 2012, the Company paid cash dividends of $0.28 per common share, or $1.5 billion, on the Company’s outstanding common stock. During fiscal 2011, the Company paid cash dividends of $0.12 per common share, or $658 million, on the Company’s outstanding common stock.

On August 14, 2012, the Company’s Board of Directors declared a quarterly dividend of $0.14 per common share to be paid on October 24, 2012 to all shareholders of record as of the close of business on October 4, 2012.

Any future dividends will be subject to the approval of the Company’s Board of Directors.

(c) Other Repurchases of Common Stock

For the years ended July 28, 2012 and July 30, 2011, the Company repurchased approximately 12 million and 10 million shares, or $200 million and $183 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units.

(d) Preferred Stock

Under the terms of the Company’s Articles of Incorporation, the Board of Directors may determine the rights, preferences, and terms of the Company’s authorized but unissued shares of preferred stock.

(e) Comprehensive Income

The components of comprehensive income, net of tax, are as follows (in millions):

Years Ended	July 28, 2012			July 30, 2011			July 31, 2010
Net income	$	8,041		$	6,490		$	7,767
Net change in unrealized gains/losses on available-for-sale investments:
Change in net unrealized (losses) gains, net of tax benefit (expense) of $6, $(151), and $(199) for fiscal 2012, 2011, and 2010, respectively		(31	)		281			334
Net (gains) losses reclassified into earnings, net of tax effects of $36, $68, and $17 for fiscal 2012, 2011, and 2010, respectively		(65	)		(112	)		(151	)
		(96	)		169			183
Net change in unrealized gains/losses on derivative instruments:
Change in derivative instruments, net of tax benefit (expense) of $0, $0 and $(9) for fiscal 2012, 2011, and 2010, respectively		(131	)		87			46
Net losses (gains) reclassified into earnings		72			(108	)		2
		(59	)		(21	)		48
Net change in cumulative translation adjustment and other, net of tax benefit (expense) of $36, $(34), and $(9) for fiscal 2012, 2011, and 2010, respectively		(496	)		538			(55	)
Comprehensive income		7,390			7,176			7,943
Comprehensive loss (income) attributable to noncontrolling interests		18			(15	)		12
Comprehensive income attributable to Cisco Systems, Inc.	$	7,408		$	7,161		$	7,955

The components of AOCI, net of tax, are summarized as follows (in millions):

	July 28, 2012			July 30, 2011		July 31, 2010
Net unrealized gains on investments	$	409		$	487	$	333
Net unrealized (losses) gains on derivative instruments		(53	)		6		27
Cumulative translation adjustment and other		305			801		263
Total	$	661		$	1,294	$	623