Cisco - Balance Sheeet Vertical Analysis

8/13/2019 Cisco - Balance Sheeet Vertical Analysis

1/8

Cisco Systems, Inc.

Historical Financials

Balance Sheet

(In millions)

Q1 FY2011 Q2 FY2011 Q3 FY2011 Q4 FY2011

10/29/2006 1/28/2007 4/29/2007 7/29/2007

ASSETSCurrent assets: Cash and cash equivalents 3,796$ 4,924$ 6,635$ 7,662$

Investments 35,129 35,305 36,732 36,923Accounts receivable, net 4,471 4,620 4,413 4,698Inventories 1,523 1,602 1,442 1,486Financing receivables, net 2,392 2,630 2,840 3,111

Deferred tax assets 1,992 2,054 2,120 2,410Other current assets 1,103 931 1,022 941

Total current assets 50,406 52,066 55,204 57,231

Property and equipment, net 3,984 4,031 4,023 3,916Financing receivables, net 2,653 3,118 3,304 3,488Goodwill 16,742 16,746 16,880 16,818Purchased intangible assets, net 3,176 2,799 2,702 2,541Other assets 3,054 3,221 3,237 3,101

Total Assets 80,015$ 81,981$ 85,350$ 87,095$

LIABILITIES AND EQUITYCurrent liabilities: Short-term debt 3,064$ 3,089$ 581$ 588$

Accounts payable 945 796 799 876Income taxes payable 126 163 78 120

Accrued compensation 2,497 2,607 2,964 3,163

Deferred revenue 7,420 7,878 7,771 8,025

Other current liabilities 4,068 3,972 3,917 4,734Total current liabilities 18,120 18,505 16,110 17,506

Long-term debt 12,214 12,152 16,168 16,234Income taxes payable 940 968 1,166 1,191Deferred revenue 3,316 3,929 3,928 4,182Other long-term liabilities 730 741 772 723

Total liabilities 35,320 36,295 38,144 39,836

Total equity 44,695 45,686 47,206 47,259

Total Liabilities and Equity 80,015$ 81,981$ 85,350$ 87,095$


2/8

Cisco Systems, Inc.


Balance Sheet

(In millions)

Q1 FY2010 Q2 FY2010 Q3 FY2010

10/23/2005 1/22/2006 4/30/2006

ASSETSCurrent assets: Cash and cash equivalents 4,774$ 4,710$ 3,961$

Investments 30,591 34,928 35,145Accounts receivable, net 3,159 4,237 4,078Inventories 1,089 1,215 1,250Deferred tax assets 2,205 2,233 2,277Other current assets 2,879 2,816 3,047

Total current assets 44,697 50,139 49,758

Property and equipment, net 3,976 3,958 3,994Goodwill 12,942 14,423 16,668Purchased intangible assets, net 1,552 2,661 3,448Other assets 5,513 5,222 5,424

Total Assets 68,680$ 76,403$ 79,292$

LIABILITIES AND EQUITYCurrent liabilities: Short-term debt -$ -$ 3,127$

Accounts payable 729 750 902

Income taxes payable 97 103 167

Accrued compensation 2,263 2,207 2,709

Deferred revenue 6,397 6,751 7,154

Other current liabilities 3,676 4,594 4,380Total current liabilities 13,162 14,405 18,439

Long-term debt 10,273 15,194 12,119Income taxes payable 1,755 1,941 1,054Deferred revenue 2,874 2,906 3,149

Other long-term liabilities 590 425 679

Total liabilities 28,654 34,871 35,440

Total equity 40,026 41,532 43,852

Total Liabilities and Equity 68,680$ 76,403$ 79,292$


3/8

Cisco Systems, Inc.


Income Statements

(In millions, except per-share amounts)

Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2)

GAAP NON-GAAP GAAP NON-GAAP

FY2011 FY2011 FY2011 FY2011

Qtr Ending Qtr Ending Qtr Ending Qtr Ending

10/30/2010 10/30/2010 1/29/2011 1/29/2011

NET SALES:

Product 8,700$ 8,700$ 8,236$ 8,23$

Service 2,050 2,050 2,171 2,17

Total net sales 10,750 10,750 10,407 10,40

COST OF SALES:

Product (a), (b) & (d) 3,249 3,133 3,382 3,20

Service (a) 746 703 764 71

Total cost of sales (a), (b) & (d) 3,995 3,836 4,146 3,91

GROSS MARGIN (a) & (b) 6,755 6,914 6,261 6,48

OPERATING EXPENSES:Research and development (a) & (c) 1,431 1,280 1,478 1,29

Sales and marketing (a) & (c) 2,402 2,232 2,444 2,26

General and administrative (a) & (c) 458 385 452 37

Amortization of purchased intangible assets (b) 113 - 203

Restructuring and other charges (d) - - -

Total operating expenses (a)-(d) 4,404 3,897 4,577 3,94

OPERATING INCOME (a) - (d) 2,351 3,017 1,684 2,54

Interest income 160 160 156 15

Interest expense (166) (166) (161) (16

Other income (loss), net 80 80 51 5

Interest and other income, net 74 74 46 4

INCOME BEFORE PROVISION FOR INCOME TAXES (a) - (d) 2,425 3,091 1,730 2,59

Provision for income taxes (e) & (f) 495 680 209 51

NET INCOME (a) - (f) 1,930$ 2,411$ 1,521$ 2,07$

Net income per share:

Basic (a) - (f) 0.34$ 0.43$ 0.27$ 0.3$

Diluted (a) - (f) 0.34$ 0.42$ 0.27$ 0.3$

Shares used in per-share calculation:

Basic 5,595 5,595 5,531 5,53

Diluted 5,675 5,675 5,587 5,58

Cash dividends declared per common share -$ -$

Cisco's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different froIn addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principle


4/8

Cisco Systems, Inc.

Historical Financials (As Reclassified)

Income Statements

(In millions, except per-share amounts)

Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2)

GAAP NON-GAAP GAAP NON-GAAP

FY2010 FY2010 FY2010 FY2010

Qtr Ending Qtr Ending Qtr Ending Qtr Ending

10/24/2009 10/24/2009 1/23/2010 1/23/2010

NET SALES:

Product 7,200$ 7,200$ 7,976$ 7,976$ $

Service 1,821 1,821 1,839 1,839

Total net sales 9,021 9,021 9,815 9,815

COST OF SALES:

Product (a) & (b) 2,486 2,430 2,815 2,746

Service (a) 647 614 668 627

Total cost of sales (a) & (b) 3,133 3,044 3,483 3,373

GROSS MARGIN (a) & (b) 5,888 5,977 6,332 6,442

OPERATING EXPENSES:

Research and development (a) & (c) 1,224 1,097 1,247 1,109

Sales and marketing (a) & (c) 2,010 1,879 2,126 1,977

General and administrative (a) & (c)-(d) 425 361 451 380

Amortization of purchased intangible assets (b) 105 - 138 -

Total operating expenses (a)-(d) 3,764 3,337 3,962 3,466

OPERATING INCOME (a) - (d) 2,124 2,640 2,370 2,976

Interest income 168 168 155 155

Interest expense (114) (114) (158) (158)

Other income (loss), net (c) 61 19 (12) 26

Interest and other income (loss), net (c) 115 73 (15) 23

INCOME BEFORE PROVISION FOR INCOME TAXES (a) - (d 2,239 2,713 2,355 2,999

Provision for income taxes (e)-(f) 452 597 502 660

NET INCOME (a) - (f) 1,787$ 2,116$ 1,853$ 2,339$ $

Net income per share:

Basic (a) - (f) 0.31$ 0.37$ 0.32$ 0.41$ $

Diluted (a) - (f) 0.30$ 0.36$ 0.32$ 0.40$ $

Shares used in per-share calculation:

Basic 5,767 5,767 5,741 5,741

Diluted * 5,871 5,880 5,862 5,862

Cisco's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different fromIn addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles* Effective from the second quarter of fiscal 2010, Cisco no longer uses non-GAAP shares in the calculation of non-GAAP net income per share.


5/8

Cisco Systems, Inc.

Balance Sheet (In millions)

ASSETS 2011

Current assets: %

Cash and cash equivalents 7,662$ 8.8 4,581$ 5.65%

Investments 36,923 42.4 35,280 43.49% Accounts receivable, net 4,698 5.4 4,929 6.08%

Inventories 1,486 1.7 1,327 1.64%

Financing receivables, net 3,111 3.5 0.00%

Deferred tax assets 2,410 2.8 2,126 2.62%

Other current assets 941 1.1 3,178 3.92%

Total current assets 57,231 65.7 51,421 63.38%

Property and equipment, net 3,916 4.5 3,941 4.86%

Financing receivables, net 3,488 4 0.00%

16,818 19.3 16,674 17.00%

Purchased intangible assets, net 2,541 2.9 3,274 4.04%

Other assets 3,101 3.5 5,820 7.17%

Total Assets 87,095$ 100 81,130$ 100.00%

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt 588$ 0.675125 3,096$ 3.82%

Accounts payable 876 1.005798 895 1.10%

Income taxes payable 120 0.137781 90 0.11%

Accrued compensation 3,163 3.631667 3,129 3.86% Deferred revenue 8,025 9.214077 7,664 9.45%

Other current liabilities 4,734 5.435444 4,359 5.37%

Total current liabilities 17,506 20.09989 19,233 23.71%

Long-term debt 16,234 18.63942 12,188 15.02%

Income taxes payable 1,191 1.367472 1,353 1.67%

Deferred revenue 4,182 4.801653 3,419 4.21%

Other long-term liabilities 723 0.830128 652 0.80%

Total liabilities 39,836 45.73856 36,845 45.41%

Total equity 47,259 54.26144 44,285 54.59%

Total Liabilities and Equity 87,095$ 100 81,130$ 100.00%

Q4 FY2011 Q4 FY2010


6/8

Cisco Systems, Inc.

Income Statements (In millions)

NET SALES:

Product 34,526$ 32,420$ 2,106$ 6.50%

Service 8,692 7,620 1,072$ 14.07% Total net sales 43,218 40,040 3,178$ 7.94%

COST OF SALES:

Product (a), (b) & (d) 13,647 11,620 2,027$ 17.44%

Service (a) 3,035 2,777 258$ 9.29%

Total cost of sales (a), (b) & (d) 16,682 14,397 2,285$ 15.87%

GROSS MARGIN (a) & (b) 26,536 25,643 893$ 3.48%

OPERATING EXPENSES:

Research and development (a) & (c) 5,823 5,273 550$ 10.43%

Sales and marketing (a) & (c) 9,812 8,782 1,030$ 11.73%

General and administrative (a) & (c) 1,908 1,933 (25)$ -1.29%

Amortization of purchased intangible assets (b) 520 491 29$ 5.91%

Restructuring and other charges (d) 799 799$ #DIV/0!

Total operating expenses (a)-(d) 18,862 16,479 2,383$ 14.46%

OPERATING INCOME (a) - (d) 7,674 9,164 (1,490)$ -16.26%

Interest income 641 635 6$ 0.94%

Interest expense (628) (623) (5)$ 0.80%Other income (loss), net 138 239 (101)$ -42.26%

Interest and other income, net 151 251 (100)$ -39.84%

INCOME BEFORE PROVISION FOR INCOME TAXES (a 7,825 9,415 (1,590)$ -16.89%

Provision for income taxes (e) & (f) 1,335 1,648 (313)$ -18.99%

NET INCOME (a) - (f) 6,490$ 7,767$ (1,277)$ -16.44%

Q4 FY2011 Q4 FY2010 Amount %


7/8

Cisco Systems, Inc.

Balance Sheet (In millions)

ASSETS

Current assets:

Cash and cash equivalents 7,662$ 8.80% 4,581$ 5.65%

Investments 36,923 42.39% 35,280 43.49%

Accounts receivable, net 4,698 5.39% 4,929 6.08%

Inventories 1,486 1.71% 1,327 1.64%

Financing receivables, net 3,111 3.57% 0.00%

Deferred tax assets 2,410 2.77% 2,126 2.62%

Other current assets 941 1.08% 3,178 3.92%

Total current assets 57,231 65.71% 51,421 63.38%

Property and equipment, net 3,916 4.50% 3,941 4.86%

Financing receivables, net 3,488 4.00% 0.00%

Goodwill 16,818 19.31% 16,674 20.55%Purchased intangible assets, net 2,541 2.92% 3,274 4.04%

Other assets 3,101 3.56% 5,820 7.17%

Total Assets 87,095$ 100.00% 81,130$ 100.00%

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt 588$ 0.68% 3,096$ 3.82%

Accounts payable 876 1.01% 895 1.10%

Income taxes payable 120 0.14% 90 0.11%

Accrued compensation 3,163 3.63% 3,129 3.86%

Deferred revenue 8,025 9.21% 7,664 9.45%

Other current liabilities 4,734 5.44% 4,359 5.37%

Total current liabilities 17,506 20.10% 19,233 23.71%

Long-term debt 16,234 18.64% 12,188 15.02%

Income taxes payable 1,191 1.37% 1,353 1.67%

Deferred revenue 4,182 4.80% 3,419 4.21%

Other long-term liabilities 723 0.83% 652 0.80%

Total liabilities 39,836 45.74% 36,845 45.41%

Total equity 47,259 54.26% 44,285 54.59%

Total Liabilities and Equity 87,095$ 100.00% 81,130$ 100.00%

Q4 FY2011 Q4 FY2010 %%


8/8

Cisco Systems, Inc.

Income Statements (In millions)

NET SALES:

Product 34,526$ 79.89% 32,420$ 80.97%

Service 8,692 20.11% 7,620 19.03%

Total net sales 43,218 100.00% 40,040 100.00%

COST OF SALES:

Product (a), (b) & (d) 13,647 31.58% 11,620 29.02%

Service (a) 3,035 7.02% 2,777 6.94%

Total cost of sales (a), (b) & (d) 16,682 38.60% 14,397 35.96%

GROSS MARGIN (a) & (b) 26,536 61.40% 25,643 64.04%

OPERATING EXPENSES:

Research and development (a) & (c) 5,823 13.47% 5,273 13.17%

Sales and marketing (a) & (c) 9,812 22.70% 8,782 21.93%

General and administrative (a) & (c) 1,908 4.41% 1,933 4.83%

Amortization of purchased intangible assets (b) 520 1.20% 491 1.23%

Restructuring and other charges (d) 799 1.85% 0.00%

Total operating expenses (a)-(d) 18,862 43.64% 16,479 41.16%

OPERATING INCOME (a) - (d) 7,674 17.76% 9,164 22.89%

Interest income 641 1.48% 635 1.59%

Interest expense (628) -1.45% (623) -1.56%

Other income (loss), net 138 0.32% 239 0.60%

Interest and other income, net 151 0.35% 251 0.63%

INCOME BEFORE PROVISION FOR INCOME TAXES (a 7,825 18.11% 9,415 23.51%

Provision for income taxes (e) & (f) 1,335 3.09% 1,648 4.12%

NET INCOME (a) - (f) 6,490$ 15.02% 7,767$ 19.40%

Q4 FY2011 Q4 FY2010 %%

Documents

Cisco - Balance Sheeet Vertical Analysis