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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