EX-12.1 2 d253252dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Cisco Systems, Inc.

Ratio of earnings to fixed charges

(in millions except for ratio of earnings to fixed charges)

 

     Years Ended  
     July 30,      July 25,     July 26,      July 27,      July 28,  
     2016      2015     2014      2013      2012  

Earnings(a)

              

Income before provision for income taxes

    $ 12,920       $ 11,201      $ 9,715       $ 11,227       $ 10,159   

Losses attributable to VCE

      —           47        223         183         160   

Gain on VCE reorganization

      —           (126 )      —           —           —     

Fixed charges(b)

      792         684        688         708         717   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total earnings

    $ 13,712       $ 11,806      $ 10,626       $ 12,118       $ 11,036   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Fixed charges(b)

    $ 792       $ 684      $ 688       $ 708       $ 717   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

RATIO OF EARNINGS TO FIXED CHARGES

      17x         17x        15x         17x         15x   

 

(a) “Earnings” represent our income before provision for income taxes, plus (i) our share of losses attributable to our equity method investment in VCE Company, LLC (“VCE”) through October 2014, at which time we ceased to account for the VCE investment under the equity method, and a gain in connection with the VCE reorganization which was completed in the second quarter of fiscal 2015 and (ii) our fixed charges.

 

(b) “Fixed charges” represent interest expense plus an estimate of the interest within rental expense. Interest expense within the provision for income taxes is not included in interest expense. The estimate of the interest within rental expense was calculated by using 30 percent of the rental expense, which Cisco Systems, Inc. believes is a reasonable approximation of the interest component of rental expense.