Cisco Systems (CSCO) 10-K risk factor changes: FY2022 vs FY2021

[removed: In] [added: Beginning in] the second half of fiscal 2020, the COVID-19 pandemic [removed: had an impact on] [added: impacted] our financial results and business [removed: operations, with a significant impact in the third quarter of fiscal 2020 on our supply chain where we saw manufacturing challenges and component constraints.][added: operations.]

Shelter-in-place [added: and/or lockdown] orders [removed: and other measures, including work-from-home] [added: globally] and other [removed: policies implemented to protect workers, has] [added: measures have] and could in the future impact our supply chain.

The extent of the impact of the COVID-19 pandemic on our operational and financial performance is currently uncertain and will depend on many factors outside our control, including, without limitation, the timing, extent, trajectory and duration of the pandemic, the [removed: development and availability] [added: efficacy] of [removed: effective treatments and] [added: available] vaccines, the imposition of protective public safety measures, and the impact of the pandemic on the global economy.

Challenging economic [removed: conditions] [added: conditions, including rising inflation, or other changes,] worldwide have from time to time contributed, and may continue to contribute, to slowdowns in the communications and networking industries at large, as well as in specific segments and markets in which we operate, resulting in: reduced demand for our products as a result of continued constraints on IT-related capital spending by our customers, particularly service providers, and other customer markets as well; increased price competition for our products, not only from our competitors but also as a consequence of customers disposing of unutilized products; risk of excess and obsolete inventories; risk of supply constraints; risk of excess facilities and manufacturing capacity; and higher overhead costs as a percentage of revenue and higher interest expense.

Additionally, instability in the global credit markets, the impact of uncertainty regarding global central bank monetary policy, the instability in the geopolitical environment in many parts of the world [removed: including] [added: (including] as a result of the [removed: United Kingdom “Brexit” withdrawal from the European Union,] [added: on-going Russia and Ukraine war, and China-Taiwan relations),] the current economic challenges in China, including global economic ramifications of Chinese economic difficulties, and other disruptions may continue to put pressure on global economic conditions.

As a result of a variety of factors discussed in this report, our revenue for a particular quarter is difficult to predict, especially in light of a challenging and inconsistent global macroeconomic [removed: environment,] [added: environment (including as a result of] the [added: Russia and Ukraine war), the] significant impacts of the COVID-19 pandemic, and related market uncertainty.

Our revenue may grow at a slower rate than in past [removed: periods] [added: periods, as it did in the third quarter of fiscal 2022 on a year-over-year basis,] or decline as it did in the [removed: first] [added: fourth] quarter of fiscal [removed: 2021 and fiscal 2020,] [added: 2022] and [removed: in] certain prior [removed: periods on a year-over-year basis.][added: periods.]

[removed: In addition to making it difficult to predict revenue for a particular period, nonlinearity in shipping can] increase costs, because irregular shipment patterns result in periods of underutilized capacity and periods in which overtime expenses may be incurred, as well as in potential additional inventory management-related costs.

[added: In addition, when facing] component supply-related challenges we have increased our efforts in procuring components in order to meet customer expectations, which in turn contribute to an increase in inventory and purchase commitments.

[removed: For example, in fiscal 2021,] [added: In recent periods,] we increased our inventory and purchase commitments in light of the [added: significant] supply [removed: chain challenges] [added: constraints] seen [removed: industrywide] [added: industry-wide] due to component shortages, caused in part by the COVID-19 pandemic.

These increases in our inventory and purchase commitments to shorten lead times could also lead to [removed: significant] [added: material] excess and obsolete inventory charges [added: in future periods] if the demand for our products is less than our expectations.

A reduction or interruption in supply, including disruptions on our global supply [removed: chain] [added: chain, caused in part by public health emergencies (including the COVID-19 pandemic), geopolitical tensions (including] as a result of [removed: the COVID-19 pandemic] [added: China-Taiwan relations)] or a significant natural disaster (including as a result of climate change); a significant increase in the price of one or more [removed: components;] [added: components (including as] a [added: result of inflation); a] failure to adequately authorize procurement of inventory by our contract manufacturers; a failure to appropriately cancel, reschedule, or adjust our requirements based on our business needs; or a decrease in demand for our products could materially adversely affect our business, operating results, and financial condition and could materially damage customer relationships.

There is currently a market shortage of semiconductor and other component supply which has affected, and could further affect, lead times, the cost [removed: of that supply, and our ability to meet customer demand for our products if we cannot secure sufficient supply in a timely manner.]

[added: We may not be able to diversify] sources in a timely manner, which could harm our ability to deliver products to customers and seriously impact present and future sales.

For additional information [removed: regarding] [added: and a further discussion of current impacts and risks related to] our [added: significant supply constraints, inventory commitments and our] purchase commitments with contract manufacturers and suppliers, see [added: Results of Operations—Product Gross Margin—Supply Constraints Impacts and Risks, Liquidity and Capital Resources—Inventory Supply Chain and] Note 14 to the Consolidated Financial Statements.

Our level of product gross margins declined in fiscal [removed: 2021] [added: 2022] and have declined in certain prior periods on a year-over-year basis, and could decline in future periods due to adverse impacts from various factors, including:

- Increases in material, labor or other manufacturing-related costs (i.e. component costs, broker fees, expedited freight and overtime) or higher supply chain logistics costs, any of which could be significant, especially during periods of supply constraints for certain costs, such as those [added: currently] impacting the market for components, including semiconductors and [removed: memory][added: memory, and which costs have in the past and may continue to be exacerbated by inflation]

- Increased [removed: cost] [added: costs] (including those caused by [removed: tariffs),] [added: tariffs or economic conditions, including inflation),] loss of cost savings or dilution of savings due to changes in component pricing or charges incurred due to inventory holding periods if parts ordering does not correctly anticipate product demand or if the financial health of either contract manufacturers or suppliers deteriorates

Sales to the service provider market have been characterized by large and sporadic purchases, especially relating to our router sales and sales of certain other [removed: Infrastructure Platforms] [added: Secure, Agile Networks] and [removed: Applications] [added: Collaboration] products, in addition to longer sales cycles.

Service provider product orders decreased during the [removed: first] [added: fourth] quarter of fiscal [removed: 2021] [added: 2022] and in certain prior periods, and at various times in the past, including in recent quarters, we have experienced significant weakness in product orders from service providers.

Systems integrators and service providers typically sell directly to end users and often provide system installation, technical support, professional services, and other support services in addition to network [removed: equipment sales.]

In addition, the growth in demand for technology [added: delivered as a service enables new competitors to enter the market.]

We have several strategic alliances with large and complex organizations and other companies with which we work to offer complementary products and [removed: services and, in the past, have established a joint venture to market services associated with our Cisco Unified Computing System products.][added: services.]

There can be no assurance we will realize the expected benefits from these strategic alliances or from [removed: the] joint [removed: venture.][added: ventures.]

[added: When facing component supply-related] challenges, we have increased our efforts in procuring components in order to meet customer expectations.

[removed: We have also been transforming our business to move from selling individual] products and services to selling products and services integrated into architectures and solutions, and we are seeking to meet the evolving needs of customers which include offering our products and solutions in the manner in which customers wish to consume them.

Our estimates with respect to the useful life or ultimate recoverability of our carrying basis of assets, including purchased intangible assets, could change as a result of such [added: assessments and decisions.]

We initiated a restructuring plan in the first quarter of fiscal 2021, which included a voluntary early retirement program, [removed: and] which [removed: has now been substantially completed.][added: was completed in fiscal 2022.]

While we intend to focus on managing our costs and expenses, over the long term, we also intend to invest in personnel and other resources related to our engineering, sales, service and marketing functions as we realign and dedicate resources on key priority and growth areas, such as [added: End-to-End] Security and [removed: Applications,] [added: Internet for the Future,] and we also intend to focus on maintaining leadership in [removed: Infrastructure Platforms] [added: Secure, Agile Networks] and in Services.

Our business in emerging countries in the aggregate experienced a decline in orders in [removed: the first half of fiscal 2021 and in] certain prior periods.

Our future results could be materially adversely affected by a variety of political, economic or other factors relating to our operations inside and outside the United States, any or all of which could have a material adverse effect on our operating results and financial condition, including the following: impacts from global central bank monetary policy; issues related to the political relationship between the United States and other countries that can affect regulatory matters, affect the willingness of customers in those countries to purchase products from companies headquartered in the United States or affect our ability to [added: procure components if a government body were to deny us access to those components; government-related disruptions or shutdowns; the challenging and inconsistent global macroeconomic environment; foreign currency exchange rates; geopolitical tensions (including China-Taiwan relations); political or social unrest; economic instability or weakness or natural disasters in a specific country or region, including economic challenges in China and global economic ramifications of Chinese economic difficulties; environmental protection regulations (including new laws and regulations related to climate change); trade protection measures such as tariffs, and other legal and regulatory requirements, some of which may affect our ability to import our products to, export our products from, or sell our products in various countries or affect our ability to procure components; political considerations that affect service provider and government spending patterns; health or similar issues, including pandemics or epidemics, such as the COVID-19 pandemic, which could continue to affect customer purchasing decisions; difficulties in staffing and managing international operations; and adverse tax consequences, including imposition of withholding or other taxes on our global operations.]

Most of our sales are on an open credit basis, with typical payment terms of 30 days in the United [removed: States] [added: States,] and, because of local customs or conditions, longer in some markets outside the United States.

In the past, there have been significant bankruptcies among customers both on open credit and with loan or lease financing [removed: arrangements, particularly among Internet businesses and service providers, causing us to incur economic or financial losses.]

Competition for [removed: these] [added: such] personnel is intense, especially in the Silicon Valley area of Northern California.

The loss of services of any of our key personnel; the inability to retain and attract qualified personnel in the future; or delays in hiring required personnel, particularly engineering and sales personnel, [added: could make it difficult to meet key objectives, such as timely and effective product introductions.]

Litigation can be [removed: expensive,] [added: costly,] lengthy, and disruptive to normal business operations.

[removed: While counterfeiters often aim their sales at customers who might not have] otherwise purchased our products due to lack of verifiability of origin and service, such counterfeit sales, to the extent they replace otherwise legitimate sales, could adversely affect our operating results.

In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue Service [added: (IRS)] and other tax authorities.

Also certain of our [added: customers,] suppliers and logistics centers are located in regions that have been or may be affected by earthquake, tsunami and flooding [added: or other weather-related] activity which in the past has disrupted, and in the future could disrupt, the flow of components and delivery of products.

[removed: A significant natural disaster, such as an earthquake, a hurricane, volcano, flood or] [added: We have not to date experienced] a [removed: wildfire,] [added: material event to these matters; however, the occurrence of any such event in the future] could have a material adverse impact on our business, operating results, and financial condition.

We continue to manage through significant supply constraints seen industry-wide due to component shortages which have resulted in extended lead times and higher supply chain costs.

In certain prior periods, we have seen a broad-based weakening in the global macroeconomic environment which has impacted and could impact in the future certain of our markets.

In addition to making it difficult to predict revenue for a particular period, nonlinearity in shipping can

of that supply, and our ability to meet customer demand for our products if we cannot secure sufficient supply in a timely manner.

We continue to manage through significant supply constraints seen industry-wide due to component shortages, including significant constraints with certain critical components which prevents us from completing manufacturing of certain of our products.

For example, we saw an additional unanticipated supply challenge with COVID-19 related lockdowns in certain parts of China in the second half of fiscal 2022 that resulted in a severe shortage of certain critical components.

While we did see some easing of the industry-wide supply constraints towards the end of the fourth quarter of fiscal 2022, we expect such constraints to continue and the duration of which is uncertain.

In recent periods, we increased our inventory and purchase commitments in light of the significant supply constraints seen industry-wide due to component shortages, caused in part by the COVID-19 pandemic.

These increases in our inventory and purchase commitments to shorten lead times could also lead to material excess and obsolete inventory charges in future periods if the demand for our products is less than our expectations.

For additional information and a further discussion of current impacts and risks related to our significant supply constraints, inventory commitments and our purchase commitments with contract manufacturers and suppliers, see Results of Operations—Product Gross Margin—Supply Constraints Impacts and Risks, Liquidity and Capital Resources—Inventory Supply Chain and Note 14 to the Consolidated Financial Statements.

equipment sales.

We have also been transforming our business to move from selling individual

arrangements, particularly among Internet businesses and service providers, causing us to incur economic or financial losses.

Additionally, there are existing claims and lawsuits in Russia, and the potential for future claims and lawsuits in Russia and/or Belarus, related to the Russia and Ukraine war and related trade restrictions and sanctions.

In the event of an unfavorable resolution of any of these lawsuits, the potential outcome could include the seizure of our assets in Russia and/or Belarus, which, collectively, represents less than 0.1% of our total assets at the end of fiscal 2022.

While counterfeiters often aim their sales at customers who might not have

See “Part II, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Russia and Ukraine War” for a discussion of the impact on Cisco’s business of the on-going Russia and Ukraine war.

In addition, changes by any rating agency to our credit rating can negatively impact the value and liquidity of both

Our reputation and/or business could be negatively impacted by ESG matters and/or our reporting of such matters.

There is an increasing focus from regulators, certain investors, and other stakeholders concerning environmental, social, and governance (“ESG”) matters, both in the United States and internationally.

We communicate certain ESG-related initiatives, goals, and/or commitments regarding environmental matters, diversity, responsible sourcing and social investments, and other matters, in our annual Purpose Report, on our website, in our filings with the SEC, and elsewhere.

These initiatives, goals, or commitments could be difficult to achieve and costly to implement.

For example, in September 2021, we announced our commitment to achieve net zero across all scopes of greenhouse gas emissions by 2040, the achievement of which relies, in large part, on the accuracy of our estimates and assumptions around the enhanced power efficiency of our products, the adoption of renewable energy at customer sites, and the adoption of certain of our products and services by our customers.

We could fail to achieve, or be perceived to fail to achieve, our 2040 net zero commitment or other ESG-related initiatives, goals, or commitments.

In addition, we could be criticized for the timing, scope or nature of these initiatives, goals, or commitments, or for any revisions to them.

To the extent that our required and voluntary disclosures about ESG matters increase, we could be criticized for the accuracy, adequacy, or completeness of such disclosures.

Our actual or perceived failure to achieve our ESG-related initiatives, goals, or commitments could negatively impact our reputation or otherwise materially harm our business.

For example, in December 2021, multiple vulnerabilities were reported for the widely used Java logging library, Apache Log4j.

We reviewed the use of this library within our products and services, its use in our enterprise IT environment, and its use by our third-party providers, and have taken steps to mitigate these vulnerabilities, including by providing security updates for affected products to our customers.

Vulnerabilities and security defects, prioritization errors in remedying vulnerabilities or security defects, failure of third-party providers to remedy vulnerabilities or security defects, or

Our actual or perceived failure to adequately protect personal data could result in claims of liability against us, damage our reputation or otherwise materially harm of business.

Global privacy and data protection-related laws and regulations are evolving, extensive, and complex.

Compliance with these laws and regulations is difficult and costly.

The interpretation and application of these laws in some instances is uncertain, and our legal and regulatory obligations are subject to frequent changes.

For example, the European Union’s (“EU”) General Data Protection Regulation (“GDPR”) applies to our activities conducted from an establishment in the EU or related to products and services offered in the EU and imposes a range of compliance obligations regarding the handling of personal data.

Additionally, we are subject to California’s Consumer Privacy Act and other laws, regulations and obligations that relate to the handling of personal data.

Our actual or perceived failure to comply with applicable laws and regulations or other obligations relating to personal data, or to protect personal data from unauthorized access, use, or other processing, could subject us to liability to our customers, data subjects, suppliers, business partners, employees, and others, give rise to legal and/or regulatory action, could damage our reputation or could otherwise materially harm our business, any of which could have a material adverse effect on our business, operating results, and financial condition.

In particular, economic sanctions and changes to export control requirements, have impacted and may continue to impact our ability to sell and support our products and services in certain jurisdictions.

We continue to address these supply chain challenges and cost impacts, which we expect will continue at least through the first half of fiscal 2022 and potentially into the second half of fiscal 2022.

These disruptions include the unprecedented actions taken to try to contain the pandemic such as travel bans and restrictions, business closures, and social distancing measures, such as quarantines and shelter-in-place orders.

Such disruptions may continue, or worsen, in the future.

The COVID-19 pandemic may also result in long-term changes in customer needs for our products and services in various sectors, along with IT-related capital spending reductions, or shifts in spending focus, that could materially adversely affect us if we are unable to adjust our product and service offerings to match customer needs.

The recent shift to a remote working environment also creates challenges.

For example, governmental lockdowns, restrictions or new regulations has and could in the future impact the ability of our employees and vendors to work with the same speed and productivity in certain areas, even as other areas do not see negative impact.

The extent and/or duration of ongoing workforce

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

restrictions and limitations could impact our ability to enhance, develop and support existing products and services, and hold product sales and marketing events to the extent we were able to previously.

In addition, malefactors are seeking to use the COVID-19 pandemic to launch new cyber-attacks.

We are continuing to monitor the pandemic and take appropriate actions in accordance with the recommendations and requirements of relevant authorities.

During fiscal 2020 and the first quarter of fiscal 2021, we continued to see a broad-based weakening in the global macroeconomic environment which impacted our commercial and enterprise markets.

We also experienced continuing weakness in emerging countries, and we expect ongoing uncertainty in this market.

In addition, when facing

We expect these supply chain challenges and cost impacts to continue through at least the first half of fiscal 2022 and potentially into the second half of fiscal 2022.

We may not be able to diversify

delivered as a service enables new competitors to enter the market.

When facing component supply-related

assessments and decisions.

procure components if a government body were to deny us access to those components; government-related disruptions or shutdowns; the challenging and inconsistent global macroeconomic environment; foreign currency exchange rates; political or social unrest; economic instability or weakness or natural disasters in a specific country or region, including economic challenges in China and global economic ramifications of Chinese economic difficulties; instability as a result of Brexit; environmental protection regulations (including new laws and regulations related to climate change), trade protection measures such as tariffs, and other legal and regulatory requirements, some of which may affect our ability to import our products to, export our products from, or sell our products in various countries or affect our ability to procure components; political considerations that affect service provider and government spending patterns; health or similar issues, including pandemics or epidemics such as the COVID-19 pandemic which could continue to affect customer purchasing decisions; difficulties in staffing and managing international operations; and adverse tax consequences, including imposition of withholding or other taxes on our global operations.

could make it difficult to meet key objectives, such as timely and effective product introductions.

Likewise, events such as loss

product certification, and national security controls applicable to our supply chain.

This Annual Report on Form 10-K, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended (the “Securities [removed: Act”)] [added: Act”),] and the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

| | | | July [removed: 31, 2021] [added: 30, 2022] | | | | | | July [removed: 25, 2020 | | | | | | Variance | | | | | | July] 31, [removed: 2021] [added: 2021] | | | | | | July 25, 2020 | | | | | | Variance [removed: | | |] [added: in Dollars] | | |

| Revenue | | | $ | [removed: 13,126] [added: 13,102] | | | | | $ | [removed: 12,154] [added: 13,126] | | | | | [removed: 8] [added: —] | | % | | | | $ | [removed: 49,818] [added: 51,557] | | | | | $ | [removed: 49,301] [added: 49,818] | | | | | [removed: 1] [added: 3] | | % | | | |

| Gross margin percentage | | | [removed: 63.6] [added: 61.3] | | % | | | | [removed: 63.2] [added: 63.6] | | % | | | | [removed: 0.4] [added: (2.3)] | | | pts | | | [removed: 64.0] [added: 62.5] | | % | | | | [removed: 64.3] [added: 64.0] | | % | | | | [removed: (0.3)] [added: (1.5)] | | | pts | | |

| Research and development | | | $ | [removed: 1,713] [added: 1,682] | | | | | $ | [removed: 1,565] [added: 1,713] | | | | | [removed: 9] [added: (2)] | | % | | | | $ | [removed: 6,549] [added: 6,774] | | | | | $ | [removed: 6,347] [added: 6,549] | | | | | 3 | | % | | | |

| Sales and marketing | | | $ | [removed: 2,448] [added: 2,349] | | | | | $ | [removed: 2,218] [added: 2,448] | | | | | [removed: 10] [added: (4)] | | % | | | | $ | [removed: 9,259] [added: 9,085] | | | | | $ | [removed: 9,169] [added: 9,259] | | | | | [removed: 1] [added: (2)] | | % | | | |

| General and administrative | | | [removed: $] | [removed: 521] | | [removed: | | | $] [added: 2,101] | [removed: 494] | | | | | [removed: 5] [added: 2,152] | | [removed: %] | | | | [removed: $] [added: 1,925] | [removed: 2,152] | | | | | [removed: $] [added: (51)] | [removed: 1,925] | | | | | [removed: 12] [added: (2)] | | % | [removed: | | |]

| Total R&D, sales and marketing, general and administrative | | | $ | [removed: 4,682] [added: 4,520] | | | | | $ | [removed: 4,277] [added: 4,682] | | | | | [removed: 9] [added: (3)] | | % | | | | $ | 17,960 | | | | | $ | [removed: 17,441] [added: 17,960] | | | | | [removed: 3] [added: —] | | % | | | |

| Total as a percentage of revenue | | | [removed: 35.7] [added: 34.5] | | % | | | | [removed: 35.2] [added: 35.7] | | % | | | | [removed: 0.5] [added: (1.2)] | | | pts | | | [removed: 36.1] [added: 34.8] | | % | | | | [removed: 35.4] [added: 36.1] | | % | | | | [removed: 0.7] [added: (1.3)] | | | pts | | |

| Amortization of purchased intangible assets included in operating expenses | | | $ | [removed: 79] [added: 73] | | | | | $ | [removed: 33] [added: 79] | | | | | [removed: 139] [added: (8)] | | % | | | | $ | [removed: 215] [added: 313] | | | | | $ | [removed: 141] [added: 215] | | | | | [removed: 52] [added: 46] | | % | | | |

| Restructuring and other charges included in operating expenses | | | [removed: $] | [removed: 8] | | [removed: | | | $ | 127 | | | | | (94) | | % | | | |] $ | [removed: 886] [added: 6] | | | | | $ | [removed: 481 | | |] [added: 886] | | [removed: 84] | | [removed: %] | [added: $] | [added: 481] | |

| Operating income as a percentage of revenue | | | [removed: 27.2] | | [removed: %] | [removed: | | | 26.7 | | % | | | | 0.5 | | | pts | | | 25.8] [added: 27.1] | | % | | | | [removed: 27.6] [added: 25.8] | | % | | | | [removed: (1.8) | | | pts] [added: 27.6] | | [added: %] |

| Interest and other income (loss), net | | | $ | [removed: 160] [added: (18)] | | | | | $ | [removed: 59] [added: 160] | | | | | [removed: 171] [added: (111)] | | % | | | | $ | [removed: 429] [added: 508] | | | | | $ | [removed: 350] [added: 429] | | | | | [removed: 23] [added: 18] | | % | | | |

| Income tax percentage | | | [removed: 19.4] [added: 17.6] | | % | | | | [removed: 20.3] [added: 19.4] | | % | | | | [removed: (0.9)] [added: (1.8)] | | | pts | | | [removed: 20.1] [added: 18.4] | | % | | | | [removed: 19.7] [added: 20.1] | | % | | | | [removed: 0.4] [added: (1.7)] | | | pts | | |

| Net income | | | $ | [removed: 3,009] [added: 2,815] | | | | | $ | [removed: 2,636] [added: 3,009] | | | | | [removed: 14] [added: (6)] | | % | | | | $ | [removed: 10,591] [added: 11,812] | | | | | $ | [removed: 11,214] [added: 10,591] | | | | | [removed: (6)] [added: 12] | | % | | | |

| Net income as a percentage of revenue | | | [removed: 22.9] [added: 21.5] | | % | | | | [removed: 21.7] [added: 22.9] | | % | | | | [removed: 1.2] [added: (1.4)] | | | pts | | | [removed: 21.3] [added: 22.9] | | % | | | | [removed: 22.7] [added: 21.3] | | % | | | | [removed: (1.4)] [added: 1.6] | | | pts | | |

| Earnings per share—diluted | | | $ | [removed: 0.71] [added: 0.68] | | | | | $ | [removed: 0.62] [added: 0.71] | | | | | [removed: 15] [added: (4)] | | % | | | | $ | [removed: 2.50] [added: 2.82] | | | | | $ | [removed: 2.64] [added: 2.50] | | | | | [removed: (5)] [added: 13] | | % | | | |

[removed: Fiscal] [added: *Fiscal] 2021 Compared with Fiscal [removed: 2020][added: 2020*]

Total revenue increased by [removed: 1%] [added: 3%] compared with fiscal [removed: 2020.][added: 2021.]

Within total revenue, product revenue [removed: was flat] [added: increased by 6%] and service revenue [removed: increased] [added: decreased] by [removed: 4%.][added: 2%.]

Fiscal [removed: 2021] [added: 2022] had [removed: 53] [added: 52] weeks, compared with [removed: 52] [added: 53] weeks in fiscal [removed: 2020,] [added: 2021,] thus our results for fiscal [removed: 2021] [added: 2022] reflect [removed: an extra] [added: one less] week compared with fiscal [removed: 2020.][added: 2021.]

In fiscal [removed: 2021,] [added: 2022,] total software revenue was [removed: $15.0] [added: flat at $15.1] billion across all product areas and [removed: service, an increase of 7%.][added: service.]

Within total software revenue, subscription revenue increased [removed: 15%.][added: 3%.]

Total gross margin decreased by [removed: 0.3] [added: 1.5] percentage points.

We have partnered with several of our key suppliers utilizing our volume purchasing and extending supply coverage, including revising supplier [removed: arrangements, to address supply chain challenges.][added: arrangements.]

As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, [removed: increased] [added: decreased] by [removed: 0.7] [added: 1.3] percentage points.

Operating income as a percentage of revenue decreased by [removed: 1.8] [added: 1.0] percentage points.

In terms of our geographic segments, revenue from the Americas [removed: decreased] [added: increased] by [removed: $0.1] [added: $0.7] billion, EMEA revenue increased by [removed: $0.3] [added: $0.8] billion and revenue in our APJC segment increased by [removed: $0.4] [added: $0.3] billion.

From a customer market standpoint, we experienced product revenue growth in the [removed: public sector] [added: commercial, enterprise] and service provider markets partially offset by [removed: declines] [added: a decline] in the [removed: enterprise and commercial markets.][added: public sector market.]

For the fourth quarter of fiscal [removed: 2021,] [added: 2022, total revenue, product revenue and service revenue were each flat] as compared with the fourth quarter of fiscal [removed: 2020, total revenue increased by 8%.][added: 2021.]

[removed: Within total revenue, product] [added: Product] revenue increased by [removed: 10%] [added: 6%] and service revenue [removed: increased] [added: decreased] by [removed: 3%.][added: 2%.]

With regard to our geographic segment performance, on a year-over-year basis, revenue in [removed: the Americas,] EMEA [added: increased by 8% offset by declines in Americas] and APJC [removed: increased] by [removed: 8%, 6%] [added: 3%] and [removed: 13%,] [added: 2%,] respectively.

From a product category perspective, we experienced product revenue growth in [removed: Infrastructure Platforms] [added: Collaboration; End-to-End Security] and [removed: Security,] [added: Optimized Application Experiences; partially] offset by declines in [removed: Applications.][added: Secure, Agile Networks and Internet for the Future.]

[removed: Total] [added: Product] gross margin [removed: increased] [added: decreased] by [removed: 0.4] [added: 2.1] percentage points, [added: largely] driven by [removed: productivity benefits,] [added: increased costs related to supply constraints] and to a lesser extent, [removed: favorable] product mix, partially offset by [removed: pricing erosion.][added: favorable pricing.]

As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses collectively [removed: increased] [added: decreased] by [removed: 0.5] [added: 1.2] percentage points.

Operating income as a percentage of revenue increased by [removed: 0.5] [added: 1.3] percentage points.

[removed: Net income increased by 14% and diluted] [added: Diluted] earnings per share increased [added: 13%, driven] by [removed: 15%.][added: an increase of 12% in net income and a decrease in diluted share count of 44 million shares.]

Our strategy is to help our customers connect, secure, and automate [removed: in order] to accelerate their digital agility in a cloud-first world.

The following is a summary of our other key financial measures for fiscal [removed: 2021] [added: 2022] compared with fiscal [removed: 2020] [added: 2021] (in millions):

[removed: | | | | | | | Fiscal 2021 | | | | | |] [added: *Fiscal 2021 Compared with] Fiscal [removed: 2020 | | |][added: 2020*]

| | | | July 30, 2022 | | | | | | July 31, 2021 | | | | | | Variance | | | | | | July 30, 2022 | | | | | | July 31, 2021 | | | | | | Variance | | | | | |

| Operating income as a percentage of revenue | | | 26.2 | | % | | | | 27.2 | | % | | | | (1.0) | | | pts | | | 27.1 | | % | | | | 25.8 | | % | | | | 1.3 | | | pts | | |

Percentages may not recalculate due to rounding.

Fiscal 2022 Compared with Fiscal 2021

In fiscal 2022, we delivered growth in total revenue and strong profitability in a challenging environment impacted by significant supply constraints, rising component and related costs, and the Russia and Ukraine war.

We remain focused on delivering innovation across our technologies to assist our customers in executing on their digital transformations.

We continue to be negatively impacted by supply constraints seen industry-wide due to component shortages.

While we did see some easing of the supply constraints towards the end of the fourth quarter of fiscal 2022, we expect the constraints to continue and the duration is uncertain.

We have, and continue to take, multiple steps in order to mitigate the component shortages and deliver products to our customers.

From a product category perspective, total product revenue increased 6% year over year, driven by growth in revenue in Secure, Agile Networks of 5%; Internet for the Future of 17%; End-to-End Security of 9% and Optimized Application Experiences of 11%; partially offset by a product revenue decline in Collaboration of 5%.

*Russia and Ukraine War*

In March 2022, in connection with the Russian invasion of Ukraine, Cisco announced its intention to stop business operations in Russia and Belarus for the foreseeable future.

Those operations in Russia and Belarus included sales, services and related support functions.

Further, on June 23, 2022, we announced that we will begin an orderly wind-down and exit of our business in Russia and Belarus.

Our business operations in Russia, Belarus and Ukraine, collectively, comprised approximately 1% of our total revenue for the year ended July 31, 2021.

Russia and Belarus, collectively, represented less than 0.1% of our total assets at the end of fiscal 2022.

As a result of the war and the resulting events, we have not recognized revenue in these countries effective March 2022.

The negative impact to total revenue was approximately $200 million for fiscal 2022, which includes committed revenue we would have otherwise recognized, charges for uncollectible receivables, and other items.

Further, we also assessed the risk to the recoverability of our assets and other potential financial exposures in these countries.

We have reserved for the non-recoverability of substantially all of our assets in Russia and Belarus.

As a result, we have recognized certain non-recurring charges of $91 million in cost of sales and operating expenses in fiscal 2022 related to non-recoverability of certain assets, special personnel-related charges in order to support impacted employees, and severance and other exit related costs.

The ongoing effect of the Russia and Ukraine war are difficult to predict due to the other uncertainties identified in Part I, Item 1A.

Risk Factors herein.

Total gross margin decreased by 2.3 percentage points, driven by higher component and commodity costs, in addition to higher freight and logistics costs related to supply constraints, partially offset by favorable pricing and product mix.

Diluted earnings per share decreased by 4%, driven by a decrease in net income of 6% and a decrease in diluted share count of 101 million shares.

Our customers are navigating change at an unprecedented pace.

In this dynamic environment, we believe their priorities are to reimagine applications, power hybrid work, transform infrastructure, and secure the enterprise.

We are committed to driving a trusted customer experience, through our innovation, choice, and people.

| | | | | | | Fiscal 2022 | | | | | | Fiscal 2021 | | |

| Remaining performance obligations | | | | | | $31,539 | | | | | | $30,893 | | |

Inventory is written down based on excess and obsolete inventories, determined primarily by future demand forecasts.

Inventory write-downs are measured as the difference between the cost of the inventory and net realizable value, based upon assumptions about future demand, and are charged to the provision for inventory, which is a component of our cost of sales.

At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

We record a liability for firm, noncancelable, and unconditional purchase commitments with contract manufacturers and suppliers for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory.

Our provision for inventory was $102 million, $116 million, and $74 million in fiscal 2022, 2021, and 2020, respectively.

The provision for the liability related to purchase commitments with contract manufacturers and suppliers was $227 million, $76 million, and $139 million in fiscal 2022, 2021, and 2020, respectively.

If there were to be a sudden and significant decrease in demand for our products, or if there were a higher incidence of inventory obsolescence because of rapidly changing technology and customer requirements, or if supply constraints were to continue, we could be required to increase our inventory write-downs, and our liability for purchase commitments with contract manufacturers and suppliers, and accordingly our profitability, could be adversely affected.

We regularly evaluate our exposure for inventory write-downs, and the adequacy of our liability for purchase commitments.

For further discussion around the Supply Constraints Impacts and Risks, see “—Results of Operations—Gross Margin—Supply Constraints Impacts and Risks” and “—Liquidity and Capital Resources—Inventory Supply Chain.”

then adjusted to reflect risks inherent in the development lifecycle as appropriate.

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

In fiscal 2021, we delivered growth in revenue in a very challenging environment.

As customers have accelerated their digitization and cloud investments stemming from the COVID-19 pandemic, we focused on executing and innovating to support and assist that transition.

In the second half of fiscal 2021, we began to see customers prepare for office re-openings and hybrid work by increasing investments in their technologies.

Our product revenue reflected growth in Security, partially offset by declines in Applications.

Infrastructure Platforms was flat.

We estimate that a majority of our revenue increase was attributable to the extra week.

Product gross margin decreased by 0.2 percentage points, due to lower productivity benefits largely driven by ongoing costs related to supply chain constraints.

The effect of pricing erosion was moderate.

The total impact associated with the extra week on our cost of sales and operating expenses was approximately $150 million (excluding the impact of share-based compensation expense).

We incurred restructuring and other charges of $886 million, which resulted in a decrease of 6% in net income and a decrease of 5% in diluted earnings per share.

The “BRICM” countries experienced a product revenue decline of 6% in the aggregate, driven by a decrease in product revenue across each of the BRICM countries with the exception of India.

As fiscal 2021 progressed, we saw improvement in business momentum in our customer markets, which we believe was related to an improving global macroeconomic environment.

From a product category perspective, total product revenue was flat year over year, driven by growth in revenue in Security of 7%, offset by a product revenue decline in Applications of 1%.

COVID-19 Pandemic Response Summary

During this extraordinary time, our priority has been supporting our employees, customers, partners and communities, while positioning Cisco for the future.

The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster speed and greater scale than ever before.

We remain focused on providing the technology and solutions our customers need to accelerate their digital organizations.

The actions we have taken and are taking include:

Employees

- Most of our global workforce is working from home.

- Seamless transition to work from home with a long-standing flexible work policy, and we build the technologies that allow organizations to stay connected, secure and productive.

- For the remainder who must be in the office to perform their roles, we are focused on their health and safety, and are taking all of the necessary precautions.

Customer and Partners

- Provided a variety of free offers and trials for our Webex and security technologies as they dramatically shifted entire workforces to be remote.

Communities

- Committed significant funds to support both global and local pandemic response efforts.

- Provided technology and financial support for non-profits, first responders, and governments.

- Donated personal protective equipment to hospital workers including N95 masks and face shields 3D-printed by Cisco volunteers around the world.

We are moving towards a hybrid work model, giving our employees the flexibility to work offsite or at onsite Cisco locations.

Our customers are navigating change at an unprecedented pace and our mission is to shape the future of the Internet by inspiring new possibilities for them by helping transform their infrastructure, expand applications and analytics, address their security needs, and empower their teams.

We believe that our customers are looking for outcomes that are data-driven and provide meaningful business value through automation, security, and analytics across private, hybrid, and multicloud environments.

| Deferred revenue | | | | | | $22,164 | | | | | | $20,446 | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

Product revenue was flat and service revenue increased by 4%.

Americas was flat.

Product revenue for the emerging countries of BRICM, in the aggregate, experienced a 6% product revenue decline, with decreases in each of these countries with the exception of India.

Product revenue from emerging countries within EMEA decreased by 7%, and product revenue for the remainder of the EMEA segment, which primarily consists of countries in Western Europe, increased by 4%.

We report our product revenue in the following categories: Infrastructure Platforms, Applications, Security, and Other Products.

Conversely, declines in interest [removed: rates as has also happened recently,] [added: rates,] including the impact from lower credit spreads, could have a material adverse impact on interest income for our investment portfolio.

We had no outstanding hedging instruments for our available-for-sale debt investments as of July [removed: 31, 2021.][added: 30, 2022.]

Our available-for-sale debt investments are not leveraged as of July [removed: 31, 2021.][added: 30, 2022.]

The hypothetical fair values as of July [removed: 31, 2021] [added: 30, 2022] and July [removed: 25, 2020] [added: 31, 2021] are as follows (in millions):

| | | | VALUATION OF SECURITIES GIVEN AN INTEREST RATE DECREASE OF X BASIS POINTS | | | | | | | | | | | | | | | | | | [removed: FAIR] [added: FAIR] VALUE AS OF JULY 31, [removed: 2021] [added: 2021] | | | | | | VALUATION OF SECURITIES GIVEN AN INTEREST RATE INCREASE OF X BASIS POINTS | | | | | | | | | | | | | | |

| Available-for-sale debt investments | | | $15,537 | | | | | | $15,427 | | | | | | $15,317 | | | | | | [removed: $15,206] [added: $15,206] | | | | | | $15,096 | | | | | | $14,986 | | | | | | $14,875 | | |

| | | | VALUATION OF SECURITIES GIVEN AN INTEREST RATE DECREASE OF X BASIS POINTS | | | | | | | | | | | | | | | | | | [removed: FAIR] [added: FAIR] VALUE AS OF JULY [removed: 25, 2020] [added: 30, 2022] | | | | | | VALUATION OF SECURITIES GIVEN AN INTEREST RATE INCREASE OF X BASIS POINTS | | | | | | | | | | | | | | |

Financing Receivables As of July [removed: 31, 2021,] [added: 30, 2022,] our financing receivables had a carrying value of [removed: $9.3] [added: $7.9] billion, compared with [removed: $10.8] [added: $9.3] billion as of July [removed: 25, 2020.][added: 31, 2021.]

As of July [removed: 31, 2021,] [added: 30, 2022,] a hypothetical 50 BPS increase or decrease in market interest rates would change the fair value of our financing receivables by a decrease or increase of approximately $0.1 billion, respectively.

Debt As of July [removed: 31, 2021,] [added: 30, 2022,] we had [removed: $11.5] [added: $9.0] billion in principal amount of senior fixed-rate notes outstanding.

The carrying amount of the senior notes was [removed: $11.5] [added: $8.9] billion, and the related fair value based on market prices was [removed: $13.7] [added: $9.7] billion.

As of July [removed: 31, 2021,] [added: 30, 2022,] a hypothetical 50 BPS increase or decrease in market interest rates would change the fair value of the fixed-rate debt, excluding the [removed: $2.0] [added: $1.5] billion of hedged debt, by a decrease or increase of approximately [removed: $0.4] [added: $0.3] billion, respectively.

[removed: As of July 31, 2021, the] [added: The] total fair value of our [removed: investments in] marketable equity securities was [added: $241 million and] $137 [removed: million.][added: million as of July 30, 2022 and July 31, 2021, respectively.]

As of July [removed: 31, 2021,] [added: 30, 2022,] the total carrying amount of our investments in privately held investments was [removed: $1.5] [added: $1.9] billion, compared with [removed: $1.3] [added: $1.5] billion at July [removed: 25, 2020.][added: 31, 2021.]

| | | | July [removed: 31, 2021] [added: 30, 2022] | | | | | | | | | | | | July [removed: 25, 2020] [added: 31, 2021] | | | | | | | | |

| Purchased | | | $ | [removed: 2,441] [added: 2,578] | | | | | $ | [removed: (14)] [added: (50)] | | | | | $ | 2,441 | | | | | $ | [removed: 1] [added: (14)] | |

| Sold | | | $ | [removed: 1,698] [added: 1,943] | | | | | $ | [removed: 12] [added: 50] | | | | | $ | [removed: 1,874] [added: 1,698] | | | | | $ | [removed: 4] [added: 12] | |

In fiscal [removed: 2021,] [added: 2022,] foreign currency fluctuations, net of hedging, [removed: increased] [added: decreased] our combined R&D, sales and marketing, and G&A expenses by approximately [removed: $214] [added: $154] million, or [removed: 1.2%,] [added: 0.9%,] as compared with fiscal [removed: 2020.][added: 2021.]

| Available-for-sale debt investments | | | $12,263 | | | | | | $12,158 | | | | | | $12,052 | | | | | | $11,947 | | | | | | $11,841 | | | | | | $11,735 | | | | | | $11,630 | | |

We have seen an increase in these risks and related uncertainties with increased volatility in the financial markets in the current environment with the COVID-19 pandemic.

| Available-for-sale debt investments | | | $17,877 | | | | | | $17,788 | | | | | | $17,699 | | | | | | $17,610 | | | | | | $17,522 | | | | | | $17,433 | | | | | | $17,344 | | |

We had no outstanding marketable equity securities as of July 25, 2020.

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

At July 31, 2021 and July 25, 2020, we had no option contracts outstanding.

Our products and technologies are grouped into the following categories: [removed: Infrastructure Platforms; Applications; Security] [added: Secure, Agile Networks; Internet for the Future; Collaboration; End-to-End Security; Optimized Application Experiences;] and Other Products.

[removed: We] [added: In this dynamic environment, we believe their priorities] are [removed: focusing on four customer priorities: Reimagine Applications, Power of Hybrid Work, Transforming Infrastructure] [added: to reimagine applications, power hybrid work, transform infrastructure,] and [removed: Secure] [added: secure] the [removed: Enterprise.][added: enterprise.]

[added: They need to be able to build] applications quickly, deploy them nearly anywhere, monitor experiences, and act in real time.

We are doing this through adding key elements to our portfolio, such as: infrastructure optimization with Intersight, network monitoring with technology from [removed: our acquisition of] ThousandEyes, application performance monitoring with AppDynamics, as well as our security innovations.

*Power [removed: of] Hybrid Work*

[removed: As an example, we] [added: We] believe our collaboration portfolio, which includes our subscription-based Webex conferencing platform, [added: with meetings, devices, calling and messaging,] is at the center of our customers’ strategy for enabling their teams to be more productive and secure.

Our strategy [added: to help our customers transform their infrastructure with the network at the core] began with Software-Defined Access (SD-Access) technology, one of our leading enterprise [removed: architectures] [added: architectures,] and continued with the launch of our Catalyst 9000 series of switches.

[removed: Since the initial launch, we] [added: We] have continued to transform our enterprise access portfolio by bringing together several technologies to form the only integrated architecture with built-in simplicity, automation and security at the foundation.

This architecture is designed to enable our customers to securely connect their users and devices to applications and data over any network, [removed: to applications and data,] no matter where they are.

These network product offerings are designed to [added: help] enable customers to detect cybersecurity threats, even in encrypted traffic.

As such, we have created, in our view, the only network that is designed for security while [removed: maintaining] [added: also helping to maintain] privacy.

[removed: In fiscal 2020, we announced details of our] [added: Our] technology strategy for the Internet for the Future [added: is] aimed at addressing the broad adoption of multicloud and application environments.

[removed: We also launched a new] [added: By combining our] routed optical networking solution integrating our routers [removed: and] [added: with] pluggable [removed: optics from our recent acquisition of Acacia, which further helps] [added: optics, we are able] to [added: further help] deliver cost savings to our customers.

[added: Our security strategy is focused on delivering a simple and] effective cyber-security architecture combining network, cloud and endpoint-based solutions that recognizes the critical importance of data privacy.

This extends to our secure access service edge (SASE) framework and Zero Trust architecture, where we have developed a cloud-delivered [removed: stack across Umbrella, a secure Internet gateway, Meraki, SD-WAN, and Viptela.][added: stack.]

We are also delivering unified detection and response capabilities [removed: built on] [added: with] Cisco SecureX, our [removed: new] cloud-native platform, which is a built-in platform that connects our Cisco Secure portfolio and our customers’ infrastructure.

Our strategy is to help our customers connect, secure, and automate [removed: in order] to accelerate their digital agility in a cloud-first world.

- *Optimized Application Experiences* — [removed: Enabling] [added: Enable] greater speed, agility and scale of cloud-native applications.

We are also accelerating our efforts to enable the delivery of network functionality as a service as our customers increasingly want to consume [removed: our] technologies in flexible ways.

We [removed: have] made the initial step with our [removed: new] as-a-service portfolio, Cisco Plus, and our first offer, Cisco Plus hybrid cloud, which combines our data center compute, networking and storage portfolio.

We have various software offerings that fall into the broad categories of subscription [removed: arrangements, including SaaS and term licenses,] [added: arrangements] and perpetual licenses.

As part of the transformation of our business, we continued to make strides [removed: during fiscal 2021] to develop and sell more software and subscription-based offerings.

We will continue to invest in network-as-a-service offerings to provide our customers with flexibility in how they want to [removed: utilize] [added: consume] our technologies.

These technologies consist of both hardware and software [removed: offerings] [added: offerings, including software licenses and SaaS,] that help our customers build networks, automate, orchestrate, integrate, and digitize data.

We continued to make progress in shifting more of our business to software and subscriptions across our core networking portfolio, and in expanding our software [added: offerings.]

We continue to add [removed: deeper and broader] [added: greater] visibility and analytics across our networks and applications, enabling us to deliver better experiences for our customers.

Our [added: Enterprise] Routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure and reliable connectivity to campus, data center and branch [removed: networks.][added: networks for our large to small enterprise and commercial customers.]

Our [removed: Data Center] [added: Compute] portfolio incorporates various technologies and solutions including the Cisco Unified Computing System, HyperFlex, our hyperconverged offering, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization to deliver agility, simplicity, and scale.

We offer end-to-end collaboration solutions that can be delivered from the cloud, on-premise or within hybrid cloud environments allowing customers to transition their collaboration [removed: solutions from on-premise to the cloud.]

[removed: Security][added: End-to-End Security]

The [added: End-to-End] Security product category [removed: primarily includes] [added: consists of] our [removed: network security, cloud and email security, identity and access management, advanced threat protection,] [added: Network Security, Cloud Security, Security Endpoints, Unified Threat Management] and [removed: unified threat management products.][added: Zero Trust offerings.]

[removed: We have built] [added: Our] SecureX [removed: into] [added: solution provides unified visibility and detection across] our [removed: Security products] [added: entire portfolio] to help our customers connect our integrated security portfolio and existing security infrastructure to provide simplicity, visibility, and efficiency.

[removed: We enhanced our offerings in SASE by expanding our SASE architecture while simplifying the offering for customers, combining] [added: Our technology, Cisco+ Secure Connect solution, combines] network and security functionality in a single, cloud-native service to help secure access wherever users and applications reside.

Enterprise businesses are large regional, national, or global organizations with multiple locations or branch [removed: offices and typically employ 1,000 or more employees.][added: offices.]

We sell to [removed: the larger, or midmarket,] [added: our midmarket] customers [removed: within the commercial market] through a combination of our direct sales force and channel partners.

Small [removed: businesses, or organizations with fewer than 100 employees,] [added: businesses] require information technologies and communications products that are easy to configure, install, and maintain.

As of the end of fiscal [removed: 2021,] [added: 2022,] our worldwide sales and marketing functions consisted of approximately [removed: 25,000] [added: 26,000] employees, including managers, sales representatives, and technical support personnel.

We [removed: have field sales offices in approximately 90 countries, and we] sell our products and services both directly and through a variety of channels with support from our salesforce.

[removed: Risk Factors,” including the risk factors entitled “Our operating results may be adversely affected by unfavorable economic and market conditions and the uncertain] geopolitical environment;” “Entrance into new or developing markets exposes us to additional competition and will likely increase demands on our service and support operations;” “Due to the global nature of our operations, political or economic changes or other factors in a specific country or region could harm our operating results and financial condition;” “We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows;” and [removed: “Cyber-attacks,] [added: “Cyber attacks,] data breaches or malware may disrupt our operations, harm our operating results and financial condition, and damage our reputation or otherwise materially harm our business; and [removed: cyber-attacks] [added: cyber attacks] or data breaches on our customers’ [added: or third-party providers’] networks, or in cloud-based services provided [removed: by] [added: to, by,] or enabled by us, could result in claims of liability against us, [added: give rise to legal and/or regulatory action,] damage our reputation or otherwise materially harm our business,” among others.

Companies with which we have added or expanded strategic alliances during fiscal [removed: 2021] [added: 2022] and in recent years include Apple Inc., Equinix Inc., Google LLC, International [removed: Business Machines Corporation, Microsoft Corporation, Samsung Electronics Co., Ltd., and Amazon Web Services LLC, among others.]

We were incorporated in California in 1984 and reincorporated in Delaware in 2021.

Our customers are navigating change at an unprecedented pace.

We are committed to driving a trusted customer experience, through our innovation, choice, and people.

Customer Priorities

In a multicloud environment, customers have to reimagine how they design, develop and deploy their applications.

Since the COVID-19 pandemic began, the world has shifted to a hybrid work environment, and we believe that our customers are looking to support a blend of onsite and offsite workers.

To enable a hybrid workforce, customers require secure access, collaboration, and technologies to empower their teams to connect seamlessly and to work from anywhere.

Customers are looking to us to help improve how their people communicate, collaborate and to increase productivity.

At Cisco, we are focused on providing and delivering highly secure collaboration experiences to help our customers create a secure hybrid work environment.

To help our customers transform their workplaces, we continue to invest to expand our capabilities by introducing new Webex Calling innovations in the Webex Suite to improve work flexibility, reliability, and quality.

Additionally, we also launched new devices for hybrid work — the Webex Room Bar and a Cisco Video Phone.

*Transform Infrastructure*

In an increasingly digital and connected world, where each new connection to the Internet puts more demand on the network, our customers are looking to modernize and transform their infrastructure in an automated way in order to manage and monitor each connection in real time.

We continue to invest in our data center portfolio to help meet the growing demand for cloud-delivered technologies.

Our recently launched Nexus Cloud platform is designed to help our customers deploy, manage, and operate their data center networks from the cloud.

With the rapid growth in modern applications, and with more distributed work environments, securing the enterprise has become more complex and difficult for our customers to manage.

We believe every organization requires new or enhanced security architectures to defend against increasing cyber attacks.

We are investing significant resources across our security portfolio focused on cloud-based offerings, artificial intelligence-driven threat detection and end-to-end security architectures.

We recently unveiled our strategic plan for a global, cloud-delivered, integrated platform that secures and connects organizations of any shape and size.

Cisco Security Cloud is designed to be the most open, end-to-end, security platform across hybrid multi-cloud environments, while also minimizing the attack surface and automating security policies across an organization’s environment.

Additionally, we recently announced new offerings aimed at securing our customers’ operations with Talos On-Demand, allowing for custom research on the threat environment, and Secure Cloud Analytics, which leverages the network as a sensor to detect threats across network infrastructure, both on-premises and in private and public clouds.

Strategic Pillars

Our subscription arrangements include term software licenses and associated service arrangements, as well as SaaS.

Secure, Agile Networks

Secure, Agile Networks consists of our core networking technologies of switching, enterprise routing, wireless, and compute products.

Internet for the Future

Our Internet for the Future product category consists of our routed optical networking, 5G, silicon and optics solutions.

We are focusing on transforming connectivity to the Internet and the cloud environment by efficiently meeting the growing demand for low-latency and higher speeds.

Our routed optical networking systems, based on our Silicon One and pluggable optic solutions, allow us to transform the economics of building and operating networks for our service provider customers, including our webscale customers.

We believe silicon and optics are foundational technologies for the continued buildout of the Internet.

As connection speeds increase, optics become increasingly important in our view.

Collaboration

Our Collaboration product category consists of our Meetings, Collaboration Devices, Calling, Contact Center and Communication Platform as a Service (CPaaS) offerings.

Our offerings within the Collaboration portfolio consist of software offerings, including perpetual licenses and subscription arrangements, as well as hardware.

solutions from on-premise to the cloud.

Our CPaaS is a cloud communications platform that integrates communication channels and existing back-end business systems together to help enable the orchestration and automation of all customer and employee interactions.

We continue to invest in resources across our security portfolio focused on cloud-based offerings, AI-driven threat detection and end-to-end security architectures.

Secure Access by Duo is our core solution for identity verification and secure remote access.

Additionally, we continue to invest in expanding our SASE architecture by delivering combined network and security functionality in a single cloud-native service.

Optimized Application Experiences

At our annual meeting of shareholders held on December 10, 2020, shareholders voted to approve changing our state of incorporation from California to Delaware.

The reincorporation became effective on January 25, 2021.

Our customers are navigating change at an unprecedented pace and our mission is to shape the future of the Internet by inspiring new possibilities for them by helping transform their infrastructure, expand applications and analytics, address their security needs, and empower their teams.

We believe that our customers are looking for outcomes that are data-driven and provide meaningful business value through automation, security, and analytics across private, hybrid, and multicloud environments.

Customers will need to be able to build

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

Our customers’ communications continue to evolve as we move to a digital, cloud-based world.

As our customers’ people are an important competitive advantage to them, their teams need effective and simple ways to work better together and to interact with their customers to build better relationships and increase collaboration.

With the future of work being hybrid, we are focused on delivering highly secure collaboration experiences regardless of whether workers are physically at home or in the office.

During fiscal 2021, we have added a significant number of new features, including digital signage, touchless calls, room capacity alerts, and environmental sensors to help enable a safer return to the office.

We also extended our Webex suite of devices through our new desk camera and desk hub solutions.

*Transforming Infrastructure*

In an increasingly digital and connected world, our customers are looking to modernize and transform their infrastructure.

With the rapid growth in modern applications, more distributed work environments, and increasing cyber-attacks, we believe every organization requires new or enhanced security architectures.

Our security strategy is focused on delivering a simple and

Our comprehensive security portfolio offers simplified protection for any workload on any cloud while minimizing the attack surface and automating security policies across an organization’s hybrid cloud footprint.

Infrastructure Platforms

Infrastructure Platforms consist of our core networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities and transport and/or store data.

offerings.

We started with our Nexus 9000 series of switches for the data center, which along with ACI, provide enhancements in security, programmability and performance while lowering operating costs.

Our Cisco Catalyst 9000 series of switches were developed for security, mobility, IoT, and the cloud.

These switches formed the foundation for our leading enterprise architectures, built on the principles of Cisco DNA.

We continued to expand on this technology by extending SD-Access and Cisco DNA Center across our enterprise networking portfolio and by extending ACI to the public and private cloud.

In addition, we now have a unified operating system and policy management platform for our enterprise networking portfolio to drive simplicity and consistency across our customers’ networks.

We are also expanding our Nexus 9000 portfolio with 400G speed capability in order to support growing bandwidth demands for our customers.

We introduced the principles of Cisco DNA into our routing portfolio by integrating SD-WAN into our offerings.

We recently launched the Cisco 8000 portfolio, a family of high density, low power next generation routing platforms focused on our customers’ evolution to support 100G and 400G connectivity speeds.

Our Cisco DNA and Cisco DNA Spaces location-based services provide network assurance and automation for our customers’ wireless networks.

Our Catalyst and Meraki WiFi-6 based access points are designed for high-density public or private environments to improve speed, performance, and capacity for wireless networking in both homes and enterprises.

These products are designed to extend the power and simplicity of unified computing for data-intensive workloads, applications at the edge of the network, and the next generation of distributed application architectures.

Applications

The Applications product category consists primarily of software-related offerings that utilize the core networking and data center platforms to provide their functions.

Our Applications portfolio includes our collaboration products as well as our Applications Monitoring and IoT software offerings.

Our offerings within the Applications portfolio are primarily delivered as software-as-a-service, but also includes perpetual software licenses as well as hardware offerings.

These Webex solutions can be purchased on a stand-alone basis or as part of the Webex Suite that integrates voice, video, messaging, calling, polling, and event solutions enabled across a wide range of devices and endpoints such as mobile phones, tablets, desktop and laptop computers, video units, and collaboration appliances.

Our Webex Cloud Contact Center solution, combined with the products from our recent IMImobile acquisition, creates a customer experience as-a-service offering (CXaaS), which leverages technology, including AI, experience management, collaboration tools, omnichannel capabilities, and programmability, for customization.

Our Webex devices portfolio has also been expanded to include comprehensive remote work devices with purpose-built software that embeds AI to help provide smart hybrid workplace experiences, that are both touch free and personalized, assisting with safer returns to the office.

Our analytics solutions seek to help businesses deliver consistently high-quality digital experiences by connecting end-user experience and application performance to business outcomes.

Our analytics applications monitor, correlate, analyze, and act on application performance and business performance data in real time.

This automated, cross-stack intelligence helps to enable developers, IT operations, and business owners to make mission critical and strategic improvements.

For the fiscal year ended July [removed: 31, 2021][added: 30, 2022]

[removed: ][added: ]

Aggregate market value of registrant’s common stock held by non-affiliates of the registrant, based upon the closing price of a share of the registrant’s common stock on January [removed: 22, 2021] [added: 28, 2022] as reported by the Nasdaq Global Select Market on that date: [removed: $189.0] [added: $230.8] billion

Number of shares of the registrant’s common stock outstanding as of September [removed: 3, 2021: 4,217,735,917][added: 2, 2022: 4,108,844,167]

Portions of the registrant’s definitive Proxy Statement relating to the [removed: 2021] [added: 2022] Annual Meeting of Stockholders, to be held on December [removed: 13, 2021,] [added: 8, 2022,] are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.

| Item 1. | | | | | | [removed: [Business](#id9635782a2d344aaabc654401a5ad580_16)] [added: [Business](#i049852cab38845aabd2a79d07dacda86_16)] | | | | | | [removed: [1](#id9635782a2d344aaabc654401a5ad580_16)] [added: [1](#i049852cab38845aabd2a79d07dacda86_16)] | | |

| Item 1A. | | | | | | [Risk [removed: Factors](#id9635782a2d344aaabc654401a5ad580_19)] [added: Factors](#i049852cab38845aabd2a79d07dacda86_19)] | | | | | | [removed: [13](#id9635782a2d344aaabc654401a5ad580_19)] [added: [14](#i049852cab38845aabd2a79d07dacda86_19)] | | |

| Item 1B. | | | | | | [Unresolved Staff [removed: Comments](#id9635782a2d344aaabc654401a5ad580_22)] [added: Comments](#i049852cab38845aabd2a79d07dacda86_22)] | | | | | | [removed: [27](#id9635782a2d344aaabc654401a5ad580_22)] [added: [29](#i049852cab38845aabd2a79d07dacda86_22)] | | |

| Item 2. | | | | | | [removed: [Properties](#id9635782a2d344aaabc654401a5ad580_25)] [added: [Properties](#i049852cab38845aabd2a79d07dacda86_25)] | | | | | | [removed: [27](#id9635782a2d344aaabc654401a5ad580_25)] [added: [29](#i049852cab38845aabd2a79d07dacda86_25)] | | |

| Item 3. | | | | | | [Legal [removed: Proceedings](#id9635782a2d344aaabc654401a5ad580_28)] [added: Proceedings](#i049852cab38845aabd2a79d07dacda86_28)] | | | | | | [removed: [27](#id9635782a2d344aaabc654401a5ad580_28)] [added: [29](#i049852cab38845aabd2a79d07dacda86_28)] | | |

| Item 4. | | | | | | [Mine Safety [removed: Disclosures](#id9635782a2d344aaabc654401a5ad580_31)] [added: Disclosures](#i049852cab38845aabd2a79d07dacda86_31)] | | | | | | [removed: [27](#id9635782a2d344aaabc654401a5ad580_31)] [added: [29](#i049852cab38845aabd2a79d07dacda86_31)] | | |

| Item 5. | | | | | | [Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity [removed: Securities](#id9635782a2d344aaabc654401a5ad580_37)] [added: Securities](#i049852cab38845aabd2a79d07dacda86_37)] | | | | | | [removed: [28](#id9635782a2d344aaabc654401a5ad580_37)] [added: [30](#i049852cab38845aabd2a79d07dacda86_37)] | | |

| Item 6. | | | | | | [removed: [\[Reserved\]](#id9635782a2d344aaabc654401a5ad580_43)] [added: [\[Reserved\]](#i049852cab38845aabd2a79d07dacda86_43)] | | | | | | [removed: [29](#id9635782a2d344aaabc654401a5ad580_43)] [added: [31](#i049852cab38845aabd2a79d07dacda86_43)] | | |

| Item 7. | | | | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#id9635782a2d344aaabc654401a5ad580_46)] [added: Operations](#i049852cab38845aabd2a79d07dacda86_46)] | | | | | | [removed: [30](#id9635782a2d344aaabc654401a5ad580_46)] [added: [32](#i049852cab38845aabd2a79d07dacda86_46)] | | |

| Item 7A. | | | | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#id9635782a2d344aaabc654401a5ad580_79)] [added: Risk](#i049852cab38845aabd2a79d07dacda86_79)] | | | | | | [removed: [50](#id9635782a2d344aaabc654401a5ad580_79)] [added: [53](#i049852cab38845aabd2a79d07dacda86_79)] | | |

| Item 8. | | | | | | [Financial Statements and Supplementary [removed: Data](#id9635782a2d344aaabc654401a5ad580_82)] [added: Data](#i049852cab38845aabd2a79d07dacda86_82)] | | | | | | [removed: [52](#id9635782a2d344aaabc654401a5ad580_82)] [added: [55](#i049852cab38845aabd2a79d07dacda86_82)] | | |

| Item 9. | | | | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#id9635782a2d344aaabc654401a5ad580_217)] [added: Disclosure](#i049852cab38845aabd2a79d07dacda86_172)] | | | | | | [removed: [100](#id9635782a2d344aaabc654401a5ad580_217)] [added: [103](#i049852cab38845aabd2a79d07dacda86_172)] | | |

| Item 9A. | | | | | | [Controls and [removed: Procedures](#id9635782a2d344aaabc654401a5ad580_220)] [added: Procedures](#i049852cab38845aabd2a79d07dacda86_175)] | | | | | | [removed: [100](#id9635782a2d344aaabc654401a5ad580_220)] [added: [103](#i049852cab38845aabd2a79d07dacda86_175)] | | |

| Item 9B. | | | | | | [Other [removed: Information](#id9635782a2d344aaabc654401a5ad580_223)] [added: Information](#i049852cab38845aabd2a79d07dacda86_178)] | | | | | | [removed: [101](#id9635782a2d344aaabc654401a5ad580_223)] [added: [103](#i049852cab38845aabd2a79d07dacda86_178)] | | |

| Item 10. | | | | | | [Directors, Executive Officers and Corporate [removed: Governance](#id9635782a2d344aaabc654401a5ad580_229)] [added: Governance](#i049852cab38845aabd2a79d07dacda86_184)] | | | | | | [removed: [101](#id9635782a2d344aaabc654401a5ad580_229)] [added: [104](#i049852cab38845aabd2a79d07dacda86_184)] | | |

| Item 11. | | | | | | [Executive [removed: Compensation](#id9635782a2d344aaabc654401a5ad580_232)] [added: Compensation](#i049852cab38845aabd2a79d07dacda86_187)] | | | | | | [removed: [101](#id9635782a2d344aaabc654401a5ad580_232)] [added: [104](#i049852cab38845aabd2a79d07dacda86_187)] | | |

| Item 12. | | | | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#id9635782a2d344aaabc654401a5ad580_235)] [added: Matters](#i049852cab38845aabd2a79d07dacda86_190)] | | | | | | [removed: [101](#id9635782a2d344aaabc654401a5ad580_235)] [added: [104](#i049852cab38845aabd2a79d07dacda86_190)] | | |

| Item 13. | | | | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#id9635782a2d344aaabc654401a5ad580_238)] [added: Independence](#i049852cab38845aabd2a79d07dacda86_193)] | | | | | | [removed: [101](#id9635782a2d344aaabc654401a5ad580_238)] [added: [104](#i049852cab38845aabd2a79d07dacda86_193)] | | |

| Item 14. | | | | | | [Principal Accountant Fees and [removed: Services](#id9635782a2d344aaabc654401a5ad580_241)] [added: Services](#i049852cab38845aabd2a79d07dacda86_196)] | | | | | | [removed: [102](#id9635782a2d344aaabc654401a5ad580_241)] [added: [104](#i049852cab38845aabd2a79d07dacda86_196)] | | |

| Item 15. | | | | | | [Exhibits and Financial Statement [removed: Schedules](#id9635782a2d344aaabc654401a5ad580_247)] [added: Schedules](#i049852cab38845aabd2a79d07dacda86_202)] | | | | | | [removed: [102](#id9635782a2d344aaabc654401a5ad580_247)] [added: [104](#i049852cab38845aabd2a79d07dacda86_202)] | | |

| Item 16. | | | | | | [Form 10-K [removed: Summary](#id9635782a2d344aaabc654401a5ad580_256)] [added: Summary](#i049852cab38845aabd2a79d07dacda86_211)] | | | | | | [removed: [104](#id9635782a2d344aaabc654401a5ad580_256)] [added: [106](#i049852cab38845aabd2a79d07dacda86_211)] | | |

*This Annual Report on Form 10-K, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended (the “Securities [removed: Act”)] [added: Act”),] and the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

| Item 9C. | | | | | | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i049852cab38845aabd2a79d07dacda86_1796) | | | | | | [103](#i049852cab38845aabd2a79d07dacda86_1796) | | |

| | | | | | | [Signatures](#i049852cab38845aabd2a79d07dacda86_214) | | | | | | [107](#i049852cab38845aabd2a79d07dacda86_214) | | |

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

| | | | | | | [Signatures](#id9635782a2d344aaabc654401a5ad580_259) | | | | | | [105](#id9635782a2d344aaabc654401a5ad580_259) | | |

In addition to our headquarters site, we own additional sites in the United States, which include facilities in the surrounding areas of San Jose, California; Research Triangle Park, North Carolina; [removed: Richardson, Texas;] and [removed: Lawrenceville, Georgia.][added: Richardson, Texas.]

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

There were [removed: 36,408] [added: 31,502] registered stockholders as of September [removed: 3, 2021.][added: 2, 2022.]

As of July [removed: 31, 2021,] [added: 30, 2022,] the remaining authorized amount for stock repurchases under this program is approximately [removed: $7.9] [added: $15.2] billion with no termination date.

[removed: ][added: ]

| | | | July [removed: 2016] [added: 2017] | | | | | | July [removed: 2017] [added: 2018] | | | | | | July [removed: 2018] [added: 2019] | | | | | | July [removed: 2019] [added: 2020] | | | | | | July [removed: 2020] [added: 2021] | | | | | | July [removed: 2021] [added: 2022] | | |

| May 1, 2022 to May 28, 2022 | | | 21 | | | | | | $ | 44.36 | | | | | 21 | | | | | | $ | 16,671 | |

| May 29, 2022 to June 25, 2022 | | | 14 | | | | | | $ | 44.29 | | | | | 14 | | | | | | $ | 16,045 | |

| June 26, 2022 to July 30, 2022 | | | 19 | | | | | | $ | 43.44 | | | | | 19 | | | | | | $ | 15,205 | |

| Total | | | 54 | | | | | | $ | 44.02 | | | | | 54 | | | | | | | | |

| Cisco Systems, Inc. | | | $ | 100.00 | | | | | $ | 139.41 | | | | | $ | 190.26 | | | | | $ | 161.16 | | | | | $ | 198.43 | | | | | $ | 167.33 | |

| S&P 500 | | | $ | 100.00 | | | | | $ | 116.25 | | | | | $ | 127.33 | | | | | $ | 138.01 | | | | | $ | 191.61 | | | | | $ | 182.72 | |

| S&P Information Technology | | | $ | 100.00 | | | | | $ | 129.71 | | | | | $ | 151.19 | | | | | $ | 195.65 | | | | | $ | 287.65 | | | | | $ | 271.80 | |

| May 2, 2021 to May 29, 2021 | | | 5 | | | | | | $ | 52.50 | | | | | 5 | | | | | | $ | 8,477 | |

| May 30, 2021 to June 26, 2021 | | | 4 | | | | | | $ | 53.50 | | | | | 4 | | | | | | $ | 8,240 | |

| June 27, 2021 to July 31, 2021 | | | 6 | | | | | | $ | 53.82 | | | | | 6 | | | | | | $ | 7,940 | |

| Total | | | 15 | | | | | | $ | 53.30 | | | | | 15 | | | | | | | | |

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

| Cisco Systems, Inc. | | | $ | 100.00 | | | | | $ | 106.89 | | | | | $ | 149.02 | | | | | $ | 203.37 | | | | | $ | 172.26 | | | | | $ | 212.11 | |

| S&P 500 | | | $ | 100.00 | | | | | $ | 116.13 | | | | | $ | 134.99 | | | | | $ | 147.86 | | | | | $ | 160.26 | | | | | $ | 222.51 | |

| S&P Information Technology | | | $ | 100.00 | | | | | $ | 130.17 | | | | | $ | 168.84 | | | | | $ | 196.81 | | | | | $ | 254.67 | | | | | $ | 374.44 | |

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

[Index to Consolidated Financial [removed: Statements](#id9635782a2d344aaabc654401a5ad580_85)][added: Statements](#i049852cab38845aabd2a79d07dacda86_85)]

| [Report of Independent Registered Public Accounting [removed: Firm](#id9635782a2d344aaabc654401a5ad580_88)] [added: Firm](#i049852cab38845aabd2a79d07dacda86_88) (PCAOB ID 238)] | | | [removed: [53](#id9635782a2d344aaabc654401a5ad580_88)] [added: [56](#i049852cab38845aabd2a79d07dacda86_88)] | | |

| [Reports of [removed: Management](#id9635782a2d344aaabc654401a5ad580_91)] [added: Management](#i049852cab38845aabd2a79d07dacda86_91)] | | | [removed: [55](#id9635782a2d344aaabc654401a5ad580_91)] [added: [58](#i049852cab38845aabd2a79d07dacda86_91)] | | |

| [Consolidated Balance [removed: Sheets](#id9635782a2d344aaabc654401a5ad580_94)] [added: Sheets](#i049852cab38845aabd2a79d07dacda86_94)] | | | [removed: [56](#id9635782a2d344aaabc654401a5ad580_94)] [added: [59](#i049852cab38845aabd2a79d07dacda86_94)] | | |

| [Consolidated Statements of [removed: Operations](#id9635782a2d344aaabc654401a5ad580_100)] [added: Operations](#i049852cab38845aabd2a79d07dacda86_97)] | | | [removed: [57](#id9635782a2d344aaabc654401a5ad580_100)] [added: [60](#i049852cab38845aabd2a79d07dacda86_97)] | | |

| [Consolidated Statements of Comprehensive [removed: Income](#id9635782a2d344aaabc654401a5ad580_103)] [added: Income](#i049852cab38845aabd2a79d07dacda86_100)] | | | [removed: [58](#id9635782a2d344aaabc654401a5ad580_103)] [added: [61](#i049852cab38845aabd2a79d07dacda86_100)] | | |

| [Consolidated Statements of Cash [removed: Flows](#id9635782a2d344aaabc654401a5ad580_109)] [added: Flows](#i049852cab38845aabd2a79d07dacda86_103)] | | | [removed: [59](#id9635782a2d344aaabc654401a5ad580_109)] [added: [62](#i049852cab38845aabd2a79d07dacda86_103)] | | |

| [Consolidated Statements of [removed: Equity](#id9635782a2d344aaabc654401a5ad580_112)] [added: Equity](#i049852cab38845aabd2a79d07dacda86_106)] | | | [removed: [60](#id9635782a2d344aaabc654401a5ad580_112)] [added: [63](#i049852cab38845aabd2a79d07dacda86_106)] | | |

| [Notes to Consolidated Financial [removed: Statements](#id9635782a2d344aaabc654401a5ad580_118)] [added: Statements](#i049852cab38845aabd2a79d07dacda86_109)] | | | [removed: [61](#id9635782a2d344aaabc654401a5ad580_118)] [added: [64](#i049852cab38845aabd2a79d07dacda86_109)] | | |

| [Note 1: Basis of [removed: Presentation](#id9635782a2d344aaabc654401a5ad580_121)] [added: Presentation](#i049852cab38845aabd2a79d07dacda86_112)] | | | [removed: [61](#id9635782a2d344aaabc654401a5ad580_121)] [added: [64](#i049852cab38845aabd2a79d07dacda86_112)] | | |

| [Note 2: Summary of Significant Accounting [removed: Policies](#id9635782a2d344aaabc654401a5ad580_124)] [added: Policies](#i049852cab38845aabd2a79d07dacda86_115)] | | | [removed: [61](#id9635782a2d344aaabc654401a5ad580_124)] [added: [64](#i049852cab38845aabd2a79d07dacda86_115)] | | |

| [Note 4: Acquisitions and [removed: Divestitures](#id9635782a2d344aaabc654401a5ad580_136)] [added: Divestitures](#i049852cab38845aabd2a79d07dacda86_121)] | | | [removed: [69](#id9635782a2d344aaabc654401a5ad580_136)] [added: [72](#i049852cab38845aabd2a79d07dacda86_121)] | | |

| [Note 5: Goodwill and Purchased Intangible [removed: Assets](#id9635782a2d344aaabc654401a5ad580_142)] [added: Assets](#i049852cab38845aabd2a79d07dacda86_124)] | | | [removed: [70](#id9635782a2d344aaabc654401a5ad580_142)] [added: [73](#i049852cab38845aabd2a79d07dacda86_124)] | | |

| [removed: [Note 6:] Restructuring and [removed: Other Charges](#id9635782a2d344aaabc654401a5ad580_148)] [added: other charges] | | | [removed: [71](#id9635782a2d344aaabc654401a5ad580_148)] [added: 1] | | | [added: | | | 26 | | | | | | 25 | | |]

| [Note 7: Balance [removed: Sheet](#id9635782a2d344aaabc654401a5ad580_151) [and Other](#id9635782a2d344aaabc654401a5ad580_151) [Details](#id9635782a2d344aaabc654401a5ad580_151)] [added: Sheet and Other Details](#i049852cab38845aabd2a79d07dacda86_130)] | | | [removed: [72](#id9635782a2d344aaabc654401a5ad580_151)] [added: [75](#i049852cab38845aabd2a79d07dacda86_130)] | | |

| [Note 9: Financing [removed: Receivables](#id9635782a2d344aaabc654401a5ad580_163)] [added: Receivables](#i049852cab38845aabd2a79d07dacda86_136)] | | | [removed: [75](#id9635782a2d344aaabc654401a5ad580_163)] [added: [78](#i049852cab38845aabd2a79d07dacda86_136)] | | |

| [Note 10: Available-for-Sale Debt and Equity [removed: Investments](#id9635782a2d344aaabc654401a5ad580_169)] [added: Investments](#i049852cab38845aabd2a79d07dacda86_139)] | | | [removed: [78](#id9635782a2d344aaabc654401a5ad580_169)] [added: [81](#i049852cab38845aabd2a79d07dacda86_139)] | | |

| [Note 11: Fair [removed: Value](#id9635782a2d344aaabc654401a5ad580_172)] [added: Value](#i049852cab38845aabd2a79d07dacda86_142)] | | | [removed: [80](#id9635782a2d344aaabc654401a5ad580_172)] [added: [84](#i049852cab38845aabd2a79d07dacda86_142)] | | |

| [Note 13: Derivative [removed: Instruments](#id9635782a2d344aaabc654401a5ad580_181)] [added: Instruments](#i049852cab38845aabd2a79d07dacda86_148)] | | | [removed: [83](#id9635782a2d344aaabc654401a5ad580_181)] [added: [87](#i049852cab38845aabd2a79d07dacda86_148)] | | |

| [Note 14: Commitments and [removed: Contingencies](#id9635782a2d344aaabc654401a5ad580_187)] [added: Contingencies](#i049852cab38845aabd2a79d07dacda86_151)] | | | [removed: [85](#id9635782a2d344aaabc654401a5ad580_187)] [added: [89](#i049852cab38845aabd2a79d07dacda86_151)] | | |

| [Note 15: Stockholders’ [removed: Equity](#id9635782a2d344aaabc654401a5ad580_190)] [added: Equity](#i049852cab38845aabd2a79d07dacda86_154)] | | | [removed: [90](#id9635782a2d344aaabc654401a5ad580_190)] [added: [93](#i049852cab38845aabd2a79d07dacda86_154)] | | |

| [Note 16: Employee Benefit [removed: Plans](#id9635782a2d344aaabc654401a5ad580_196)] [added: Plans](#i049852cab38845aabd2a79d07dacda86_157)] | | | [removed: [90](#id9635782a2d344aaabc654401a5ad580_196)] [added: [94](#i049852cab38845aabd2a79d07dacda86_157)] | | |

| [Note 17: Comprehensive Income [removed: (Loss)](#id9635782a2d344aaabc654401a5ad580_202)] [added: (Loss)](#i049852cab38845aabd2a79d07dacda86_160)] | | | [removed: [94](#id9635782a2d344aaabc654401a5ad580_202)] [added: [97](#i049852cab38845aabd2a79d07dacda86_160)] | | |

| [Note 18: Income [removed: Taxes](#id9635782a2d344aaabc654401a5ad580_205)] [added: Taxes](#i049852cab38845aabd2a79d07dacda86_163)] | | | [removed: [95](#id9635782a2d344aaabc654401a5ad580_205)] [added: [98](#i049852cab38845aabd2a79d07dacda86_163)] | | |

| [Note 19: Segment Information and Major [removed: Customers](#id9635782a2d344aaabc654401a5ad580_208)] [added: Customers](#i049852cab38845aabd2a79d07dacda86_166)] | | | [removed: [97](#id9635782a2d344aaabc654401a5ad580_208)] [added: [101](#i049852cab38845aabd2a79d07dacda86_166)] | | |

| [Note 20: Net Income per [removed: Share](#id9635782a2d344aaabc654401a5ad580_211)] [added: Share](#i049852cab38845aabd2a79d07dacda86_169)] | | | [removed: [99](#id9635782a2d344aaabc654401a5ad580_211)] [added: [102](#i049852cab38845aabd2a79d07dacda86_169)] | | |

We have audited the accompanying consolidated balance sheets of Cisco Systems, Inc. and its subsidiaries (the “Company”) as of July [removed: 31, 2021] [added: 30, 2022] and July [removed: 25, 2020,] [added: 31, 2021,] and the related consolidated statements of operations, comprehensive income, equity and cash flows for each of the three years in the period ended July [removed: 31, 2021,] [added: 30, 2022,] including the related notes [removed: and schedule of valuation and qualifying accounts for each of the three years in the period ended July 31, 2021 appearing under Item 15] (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of July [removed: 31, 2021,] [added: 30, 2022,] based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of July [removed: 31, 2021] [added: 30, 2022] and July [removed: 25, 2020,] [added: 31, 2021,] and the results of its operations and its cash flows for each of the three years in the period ended July [removed: 31, 2021] [added: 30, 2022] in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of July [removed: 31, 2021,] [added: 30, 2022,] based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

For the year ended July [removed: 31, 2021,] [added: 30, 2022,] the Company’s total revenue was [removed: $49.8] [added: $51.6] billion.

[added: | 1.85% | | |] September [removed: 9,] [added: 20,] 2021 [added: | | | | | | $ | — | | | | | — | | | | | | $ | 2,000 | | | | | 1.90% | | |]

Based on this evaluation, management concluded that Cisco’s internal control over financial reporting was effective as of July [removed: 31, 2021.][added: 30, 2022.]

| | | | [added: | | |] July [added: 30, 2022 | | | | | | July] 31, [removed: 2021] [added: 2021] | | | | | | July 25, 2020 | | |

| Cash and cash equivalents | | | $ | [removed: 9,175] [added: 7,079] | | | | | $ | [removed: 11,809] [added: 9,175] | |

| Investments | | | [removed: 15,343] [added: 12,188] | | | | | | [removed: 17,610] [added: 15,343] | | |

| Accounts receivable, net of allowance of [removed: $109] [added: $83] at July [removed: 31, 2021] [added: 30, 2022] and [removed: $143] [added: $109] at July [removed: 25, 2020] [added: 31, 2021] | | | [removed: 5,766] [added: 6,622] | | | | | | [removed: 5,472] [added: 5,766] | | |

| Inventories | | | [removed: 1,559] [added: 2,568] | | | | | | [removed: 1,282] [added: 1,559] | | |

| Financing receivables, net | | | [removed: 4,380] [added: 3,905] | | | | | | [removed: 5,051] [added: 4,380] | | |

| Other current assets | | | [removed: 2,889] [added: 4,355] | | | | | | [removed: 2,349] [added: 2,889] | | |

| [Note 3: Revenue](#i049852cab38845aabd2a79d07dacda86_118) | | | [70](#i049852cab38845aabd2a79d07dacda86_118) | | |

| [Note 8: Leases](#i049852cab38845aabd2a79d07dacda86_133) | | | [77](#i049852cab38845aabd2a79d07dacda86_133) | | |

| [Note 12: Borrowings](#i049852cab38845aabd2a79d07dacda86_145) | | | [85](#i049852cab38845aabd2a79d07dacda86_145) | | |

| September 8, 2022 | | | | | | September 8, 2022 | | |

| | | | 45 | | | | | | 5 | | | | | | 8 | | |

| Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | | | (180) | | | | | | 58 | | | | | | (30) | | |

| Net income | | | | | | | | | | | | | | | 11,812 | | | | | | | | | | | | 11,812 | | |

| Repurchase of common stock | | | (146) | | | | | | (1,490) | | | | | | (6,244) | | | | | | | | | | | | (7,734) | | |

| BALANCE AT JULY 30, 2022 | | | 4,110 | | | | | | $ | 42,714 | | | | | $ | (1,319) | | | | | $ | (1,622) | | | | | $ | 39,773 | |

value of the expected dividend yield prior to vesting.

*Acquired Revenue Contracts with Customers in Business Combinations* In October 2021, the Financial Accounting Standards Board (FASB) issued an accounting standard update that requires companies to apply ASC 606 to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination.

Consolidated Financial Statements.

The ongoing impact of this standard will be fact dependent on the transactions within its scope.

Effective fiscal 2022, we began reporting our product and service revenue in the following categories: Secure, Agile Networks; Internet for the Future; Collaboration; End-to-End Security; Optimized Application Experiences; Other Products; and Services.

This change will better align our product categories with our strategic priorities.

| Secure, Agile Networks | | | $ | 23,829 | | | | | $ | 22,722 | | | | | $ | 23,265 | |

| Internet for the Future | | | 5,278 | | | | | | 4,514 | | | | | | 4,180 | | |

| Collaboration | | | 4,472 | | | | | | 4,727 | | | | | | 4,823 | | |

| Optimized Application Experiences | | | 729 | | | | | | 654 | | | | | | 524 | | |

Secure, Agile Networks consists of our core networking technologies of switching, enterprise routing, wireless, and compute products.

Internet for the Future consists of our routed optical networking, 5G, silicon, and optics solutions.

Collaboration consists of our Meetings, Collaboration Devices, Calling, Contact Center and CPaaS offerings.

Term software licenses are multiple performance obligations where the term license is recognized upfront upon transfer of control with the associated software maintenance revenue recognized ratably over the contract term.

SaaS arrangements in this

category have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term.

End-to-End Security product category consists of our Network Security, Cloud Security, Security Endpoints, Unified Threat Management and Zero Trust offerings.

Our hardware and perpetual software in this category are distinct performance obligations where revenue is recognized upfront upon transfer of control.

Optimized Application Experiences consists of our full stack observability and cloud-native platform offerings.

These products consist primarily of software offerings, including software licenses and SaaS.

Term software licenses are multiple performance obligations where the term license is recognized upfront upon transfer of control with the associated software maintenance revenue recognized ratably over the contract term.

SaaS arrangements in this category have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term.

*Accounts Receivable*

The allowances for credit loss for our accounts receivable are summarized as follows (in millions):

| Allowance for credit loss at beginning of fiscal year | | | | | | $ | 109 | | | | | $ | 143 | | | | | $ | 136 | |

| Allowance for credit loss at end of fiscal year | | | | | | $ | 83 | | | | | $ | 109 | | | | | $ | 143 | |

*Contract Assets and Liabilities*

| | | | July 30, 2022 | | | | | | July 31, 2021 | | |

| Total acquisitions (three in total) | | | $ | 364 | | | | | $ | 12 | | | | | $ | 20 | | | | | $ | 332 | |

| | | | Balance at July 31, 2021 | | | | | | Acquisitions & Divestitures | | | | | | Other | | | | | | Balance at July 30, 2022 | | |

| Americas | | | $ | 23,673 | | | | | $ | 222 | | | | | $ | (13) | | | | | $ | 23,882 | |

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| [Note 3: Revenue](#id9635782a2d344aaabc654401a5ad580_130) | | | [67](#id9635782a2d344aaabc654401a5ad580_130) | | |

| [Note 8: Leases](#id9635782a2d344aaabc654401a5ad580_157) | | | [73](#id9635782a2d344aaabc654401a5ad580_157) | | |

| [Note 12: Borrowings](#id9635782a2d344aaabc654401a5ad580_175) | | | [81](#id9635782a2d344aaabc654401a5ad580_175) | | |

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

*Changes in Accounting Principles*

As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it accounts for leases in 2020 and the manner in which it accounts for revenue from contracts with customers in 2019.

| September 9, 2021 | | | | | | September 9, 2021 | | |

| | | | 5 | | | | | | 8 | | | | | | (3) | | |

| BALANCE AT JULY 28, 2018 | | | 4,614 | | | | | | $ | 42,820 | | | | | $ | 1,233 | | | | | $ | (849) | | | | | $ | 43,204 | |

| Effect of adoption of accounting standards | | | | | | | | | | | | | | | 3,897 | | | | | | (168) | | | | | | 3,729 | | |

| Repurchase of common stock | | | (64) | | | | | | (625) | | | | | | (2,277) | | | | | | | | | | | | (2,902) | | |

At our annual meeting of shareholders held on December 10, 2020, shareholders voted to approve changing our state of incorporation from California to Delaware.

The reincorporation became effective January 25, 2021.

Our assets within each internal credit risk rating share similar risk characteristics and therefore are assessed as one portfolio segment for credit loss.

Financed service contracts typically have terms of one year to three years and primarily relate to technical support services.

We also provide financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years.

We adopted Accounting Standards Codification (ASC) 842 at the beginning of fiscal 2020 and applied it at the beginning of the period of adoption and did not restate prior periods.

based on the difference between the fair value of the asset and its carrying value.

The effect of foreign currency exchange rates on cash and cash equivalents was not material for any of the fiscal years presented.

We adopted ASC 606 at the beginning of fiscal 2019 using the modified retrospective method to those contracts that were not completed as of July 28, 2018.

For the additional information, see Note 3.

The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method.

*Credit Losses of Financial Instruments* In June 2016, the FASB issued an accounting standard update that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount.

The standard primarily impacts our financial assets measured at amortized cost and available-for-sale debt securities.

We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements.

| Infrastructure Platforms | | | $ | 27,109 | | | | | $ | 27,219 | | | | | $ | 30,184 | |

| Applications | | | 5,504 | | | | | | 5,568 | | | | | | 5,803 | | |

We have made certain reclassifications to the product revenue amounts for prior years to conform to the current year’s presentation.

(1) During the second quarter of fiscal 2019, we completed the divestiture of the Service Provider Video Software Solutions (SPVSS) business.

Total revenue includes SPVSS business revenue of $168 million for fiscal 2019.

Infrastructure Platforms consist of our core networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities and transport and/or store data.

We are shifting and expanding more of our business to software and subscriptions across our core networking portfolio.

Applications consists of offerings that utilize the core networking and data center platforms to provide their functions.

Security primarily includes our network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products.

Other Products primarily includes our emerging technologies products.

| | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Total acquisitions (six in total) | | | $ | 359 | | | | | $ | (11) | | | | | $ | 172 | | | | | $ | 198 | |

Based on our management’s evaluation (with the participation of our principal executive officer and principal financial officer), as of the end of the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of [removed: 1934,] [added: 1934] as amended, (the “Exchange Act”)) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Management’s report on our internal control over financial reporting and the report of our independent registered public accounting firm on our internal control over financial reporting are set forth, respectively, on page [removed: 55] [added: 58] under the caption “Management’s Report on Internal Control Over Financial Reporting” and on page [removed: 53] [added: 56] of this report.

There was no change in our internal control over financial reporting during our fourth quarter of fiscal [removed: 2021] [added: 2022] that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

During the fiscal year ended July [removed: 31, 2021,] [added: 30, 2022,] a subsidiary of Cisco filed notifications with, or applied for import licenses and permits from, the FSB as required pursuant to Russian encryption product import controls for the purpose of enabling Cisco or our subsidiaries to import and distribute certain products in Russia.

In March 2022, in connection with the Russian invasion of Ukraine, Cisco announced its intention to stop business operations in Russia and Belarus for the foreseeable future.

Further, on June 23, 2022, Cisco announced that it will begin an orderly wind-down and exit of its business in Russia and Belarus.

As a result, Cisco and its subsidiaries do not expect to make any new notifications with, or applications for import licenses or permits from, the FSB.

Cisco expects that we or our subsidiaries will continue to file notifications with and apply for import licenses and permits from the FSB as required for importation and distribution of our products in Russia, if and as permitted by applicable law, including the OFAC General License.

PART III

Not applicable.

PART III

| | | | | | |

| --- | --- | --- | --- | --- | --- |

The [added: additional] information required by this item [removed: relating to our directors and nominees] is included [removed: under the caption “Proposal No. 1 — Election of Directors”] in our Proxy Statement related to the [removed: 2021] [added: 2022] Annual Meeting of Stockholders [added: to be filed with the SEC within 120 days after September 8, 2022] (the “Proxy Statement”) and is incorporated herein by reference.

The information required by this item relating to our executive officers is included under the caption “Information about our Executive Officers” in Part I, Item 1 of this report.

The information required by this item regarding our Audit Committee is included under the caption “Board Meetings and Committees” in our Proxy Statement and is incorporated herein by reference.

We will provide disclosure of delinquent Section 16(a) reports, if any, in our Proxy Statement, and such disclosure, if any, is incorporated herein by reference.

The information required by this item [removed: relating to director and executive compensation] is included [removed: under the captions “Director Compensation,” “Compensation Discussion and Analysis,” “Compensation Committee Report,” “Compensation Committee Interlocks and Insider Participation,” “Fiscal 2021 Compensation Tables,” and “CEO Pay Ratio”] in our Proxy Statement and is incorporated herein by reference.

The information required by this item [removed: relating to security ownership of certain beneficial owners and management] is included [removed: under the caption “Ownership of Securities”] in our Proxy [removed: Statement,] [added: Statement] and [removed: the information required by this item relating to securities authorized for issuance under equity compensation plans] is [removed: included under the caption “Equity Compensation Plan Information” in our Proxy Statement, and, in each case, is] incorporated herein by reference.

The information required by this item [removed: relating to review, approval or ratification of transactions with related persons] is included [removed: under the caption “Certain Relationships and Transactions with Related Persons”] in our Proxy [removed: Statement,] [added: Statement] and [removed: the][added: is incorporated herein by reference.]

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

information required by this item relating to director independence is included under the caption “Independent Directors” in our Proxy Statement, and, in each case, is incorporated herein by reference.

The information required by this item is included [removed: under the caption “Proposal No. 3 — Ratification of Independent Registered Public Accounting Firm”] in our Proxy Statement and is incorporated herein by reference.

See the “Index to Consolidated Financial Statements” on page [removed: 52] [added: 55] of this report.

See the “Index to Exhibits” beginning on page [removed: 103] [added: 105] of this report.

| [removed: 2.1] [added: 10.10*] | | | | | | [removed: [Agreement and Plan] [added: [Letter] of [removed: Merger,] [added: Engagement,] dated [removed: as of January 25, 2021 by and] [added: June 1, 2021,] between [removed: Cisco Systems, Inc., a California corporation,] [added: Whistler Strategies, LLC] and Cisco [removed: Systems (DE), Inc., a Delaware corporation](https://www.sec.gov/Archives/edgar/data/858877/000119312521016255/d104712dex21.htm)] [added: Systems, Inc.](https://www.sec.gov/Archives/edgar/data/858877/000085887721000018/exh101-letterofengagement.htm)] | | | | | | [removed: 8-K12B] [added: 10-Q] | | | | | | 001-39940 | | | | | | [removed: 2.1] [added: 10.1] | | | | | | [removed: 1/25/2021] [added: 11/23/2021] | | | | | | | | |

| 4.13 | | | | | | [Description of [removed: Registrant](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh413descriptionofsecurit.htm)[’](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh413descriptionofsecurit.htm)[s] [added: Registrant’s] Securities](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh413descriptionofsecurit.htm) | | | | | | [added: 10-K] | | | | | | [added: 001-39940] | | | | | | [added: 4.13] | | | | | | [added: 9/9/2021] | | | | | | [removed: X] | | |

| 10.1* | | | | | | [Cisco Systems, Inc. 2005 Stock Incentive Plan (including related form [removed: agreements)](https://www.sec.gov/Archives/edgar/data/858877/000085887721000004/exh105ciscosip2005q221.htm)] [added: agreements)](https://www.sec.gov/Archives/edgar/data/858877/000085887722000009/exh101ciscosip2005q322.htm)] | | | | | | 10-Q | | | | | | 001-39940 | | | | | | [removed: 10.5] [added: 10.1] | | | | | | [removed: 2/16/2021] [added: 5/25/2022] | | | | | | | | |

| 10.6 | | | | | | [Second [removed: Amend](https://www.sec.gov/Archives/edgar/data/858877/000119312521162081/d461773dex101.htm)[ed] [added: Amended] and Restated Credit Agreement, [removed: dat](https://www.sec.gov/Archives/edgar/data/858877/000119312521162081/d461773dex101.htm)[ed] [added: dated] as of May 13, 2021, by and among Cisco Systems, Inc., certain lenders party thereto, and Bank of America, N.A., as administration agent, swing line lender, L/C issuer and [removed: susta](https://www.sec.gov/Archives/edgar/data/858877/000119312521162081/d461773dex101.htm)[inability] [added: sustainability] coordinator](https://www.sec.gov/Archives/edgar/data/858877/000119312521162081/d461773dex101.htm) | | | | | | 8-K | | | | | | 001-39940 | | | | | | 10.1 | | | | | | 5/14/2021 | | | | | | | | |

| 21.1 | | | | | | [Subsidiaries of the [removed: Registrant](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh211subsidiariesofthereg.htm)] [added: Registrant](https://www.sec.gov/Archives/edgar/data/858877/000085887722000013/exh211subsidiariesofthereg.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 23.1 | | | | | | [Consent of Independent Registered Public Accounting [removed: Firm](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh231consentofindependent.htm)] [added: Firm](https://www.sec.gov/Archives/edgar/data/858877/000085887722000013/exh231consentofindependent.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 24.1 | | | | | | [Power of Attorney (included on page [removed: 105] [added: 107] of this Annual Report on Form [removed: 10-K)](#id9635782a2d344aaabc654401a5ad580_259)] [added: 10-K)](#i049852cab38845aabd2a79d07dacda86_214)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 31.1 | | | | | | [Rule 13a–14(a)/15d–14(a) Certification of Principal Executive [removed: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh311rule13a-14a15dx14ace.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887722000013/exh311rule13a-14a15dx14ace.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 31.2 | | | | | | [Rule 13a–14(a)/15d–14(a) Certification of Principal Financial [removed: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh312rule13a-14a15dx14ace.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887722000013/exh312rule13a-14a15dx14ace.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 32.1 | | | | | | [Section 1350 Certification of Principal Executive [removed: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh321section1350certifica.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887722000013/exh321section1350certifica.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 32.2 | | | | | | [Section 1350 Certification of Principal Financial [removed: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh322section1350certifica.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887722000013/exh322section1350certifica.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

All financial statement schedules have been omitted, since the required information is not applicable or is shown in the financial statements or notes herein.

See “Schedule II—Valuation and Qualifying Accounts” (below) within Item 15 of this report.

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

(in millions)

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | July 31, 2021 | | | | | | July 25, 2020 | | | | | | July 27, 2019 | | |

| Allowance for Accounts Receivable: | | | | | | | | | | | | | | | | | |

| Balance at beginning of fiscal year | | | $ | 143 | | | | | $ | 136 | | | | | $ | 129 | |

| Provisions (benefits) | | | 21 | | | | | | 55 | | | | | | 56 | | |

| Recoveries (write-offs), net | | | (29) | | | | | | (48) | | | | | | (50) | | |

| Foreign exchange and other | | | (26) | | | | | | — | | | | | | 1 | | |

| Balance at end of fiscal year | | | $ | 109 | | | | | $ | 143 | | | | | $ | 136 | |

| Allowance for Financing Receivables: | | | | | | | | | | | | | | | | | |

| Balance at beginning of fiscal year | | | $ | 138 | | | | | $ | 126 | | | | | $ | 205 | |

| Provisions (benefits) | | | (27) | | | | | | 38 | | | | | | (16) | | |

| Recoveries (write-offs), net | | | (2) | | | | | | (22) | | | | | | (42) | | |

| Foreign exchange and other | | | 18 | | | | | | (4) | | | | | | (21) | | |

| Balance at end of fiscal year | | | $ | 127 | | | | | $ | 138 | | | | | $ | 126 | |

| Deferred Tax Asset Valuation Allowance: | | | | | | | | | | | | | | | | | |

| Balance at beginning of fiscal year | | | $ | 700 | | | | | $ | 457 | | | | | $ | 374 | |

| Additions | | | 91 | | | | | | 279 | | | | | | 112 | | |

| Deductions | | | (5) | | | | | | (29) | | | | | | (20) | | |

| Write-offs | | | (16) | | | | | | (7) | | | | | | (8) | | |

| Foreign exchange and other | | | 1 | | | | | | — | | | | | | (1) | | |

| Balance at end of fiscal year | | | $ | 771 | | | | | $ | 700 | | | | | $ | 457 | |

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)

| 10.10* | | | | | | [Transition Agreement by and between Cisco Systems, Inc. and Kelly A. Kramer](https://www.sec.gov/Archives/edgar/data/858877/000119312520293020/d57787dex102.htm) | | | | | | 8-K | | | | | | 000-18225 | | | | | | 10.2 | | | | | | 11/13/2020 | | | | | | | | |

| 10.11* | | | | | | [Letter of Transfer — International Transfer by and between Cisco Systems, Inc. and Irving Tan](https://www.sec.gov/Archives/edgar/data/858877/000119312521056977/d116659dex101.htm) | | | | | | 8-K | | | | | | 001-39940 | | | | | | 10.1 | | | | | | 2/25/2021 | | | | | | | | |

| September [removed: 9, 2021] [added: 8, 2022] | | | | | | | | | | | | CISCO SYSTEMS, INC. | | |

| /S/ CHARLES H. ROBBINS | | | Chair and Chief Executive Officer | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ R. SCOTT HERREN | | | Executive Vice President and Chief Financial Officer | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ PRAT S. BHATT | | | Senior Vice President and Chief Accounting Officer | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ M. MICHELE BURNS | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ WESLEY G. BUSH | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ MICHAEL D. CAPELLAS | | | Lead Independent Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ MARK GARRETT | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ JOHN D. HARRIS II | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ KRISTINA M. JOHNSON | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ RODERICK C. MCGEARY | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ BRENTON L. SAUNDERS | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ LISA T. SU | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ MARIANNA TESSEL | | | Director | | | September [removed: 9, 2021] [added: 8, 2022] | | |

| /S/ SARAH RAE MURPHY | | | Director | | | September 8, 2022 | | |

| Sarah Rae Murphy | | | | | | | | |

| | | | | | | | | |

[Table of](#id9635782a2d344aaabc654401a5ad580_7) [Contents](#id9635782a2d344aaabc654401a5ad580_7)