Cisco Systems (CSCO) 10-K risk factor changes: FY2024 vs FY2023

Any of the foregoing factors, or any other factors discussed elsewhere herein, could [removed: have a material adverse effect on] [added: materially harm] our business, results of operations, and financial [removed: condition that could adversely affect our stock price.][added: condition.]

Our operating results may be [removed: adversely affected] [added: negatively impacted] by unfavorable economic and market conditions and the uncertain geopolitical environment.

Challenging economic 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 [removed: providers,] [added: provider] and [added: cloud as well as enterprise and] other customer [removed: markets as well;] [added: markets;] 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.

The global macroeconomic environment [removed: continues to] [added: can] be challenging and inconsistent.

[removed: 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 (including as a result of the on-going Russia and Ukraine war, [added: the Israel-Hamas 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.

If global economic and market conditions, or economic conditions in key markets, [removed: remain uncertain or deteriorate further,] [added: were to deteriorate,] we may experience material [removed: impacts on] [added: harm to] our business, operating results, and financial condition.

Impairment of that trust, or foreign regulatory actions taken in response to reports of certain intelligence gathering methods of the U.S. government, could affect the demand for our products from customers outside of the United States and could have [removed: an adverse effect] [added: a negative impact] on our operating results.

As a result of a variety of factors discussed in this report, our revenue for a particular quarter is difficult to predict, [removed: especially in light of a] [added: which can be exacerbated during periods when the global macroenvironment is] challenging and inconsistent [removed: global macroeconomic environment (including as a result of the on-going Russia] and [removed: Ukraine war), and related] [added: can result in] market uncertainty.

Our revenue may grow at a slower rate than in past periods, or decline as it did in [added: fiscal 2024 and] certain prior [removed: periods.][added: periods on a year-over-year basis.]

Our ability to meet financial expectations could also be [removed: adversely affected] [added: negatively impacted] if the nonlinear sales pattern seen in some of our past quarters recurs in future periods.

We have [added: also] experienced periods of time during which shipments have exceeded net bookings or manufacturing issues have delayed shipments, leading to nonlinearity in shipping patterns.

In addition, to the extent that manufacturing issues and any related component shortages result in delayed shipments in the future, and particularly in periods in which our contract manufacturers are operating at higher levels of capacity, it is possible that revenue for a quarter could be [removed: adversely affected] [added: negatively impacted] if such matters occur and are not remediated within the same quarter.

The timing of large orders can also have a significant [removed: effect] [added: impact] on our business and operating results from quarter to quarter.

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

These increases in our inventory and purchase commitments to shorten lead times could also lead to [added: potential] material excess and obsolete inventory charges or other negative impacts to our product gross margin in future periods if product demand significantly [removed: weakens] [added: decreases] for a sustained [removed: duration.][added: duration, we are unable to generate demand for certain products planned for development, or we are unable to continue to mitigate the remaining supply chain exposures.]

Any of the above factors could [removed: have a material adverse impact on] [added: materially harm] our operations and financial results.

For additional information and a further discussion of impacts and risks related to our [removed: supply constraints,] inventory commitments and our purchase commitments with contract manufacturers and suppliers, see [removed: Results] [added: “Results] of Operations—Product Gross Margin—Supply [removed: Constraints] [added: Chain] Impacts and [removed: Risks, Liquidity] [added: Risks”, “Liquidity] and Capital Resources—Inventory Supply [removed: Chain] [added: Chain” under Item 7] and Note 14 to the Consolidated Financial [removed: Statements.][added: Statements of this report.]

Supply chain issues, including financial problems of contract manufacturers or component suppliers, or a shortage of adequate component supply or manufacturing capacity that increase our costs or cause a delay in our ability to fulfill orders, could have an adverse impact on our business and operating results, and our failure to estimate customer demand properly may result in excess or obsolete component supply, which could [removed: adversely affect] [added: negatively impact] our gross margins.

A reduction or interruption in supply, including disruptions on our global supply chain, caused in part by public health emergencies, geopolitical tensions (including as a result of 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 components (including as a 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 [removed: adversely affect] [added: harm] our business, operating results, and financial condition and could materially damage customer relationships.

Although we have generally secured additional supply or taken other mitigation actions when significant disruptions have occurred, if similar situations occur in the future, they could [removed: have a material adverse effect on] [added: materially harm] our business, results of operations, and financial condition.

Although in many cases we use standard parts and components for our products, certain components are presently available only from a single source or limited sources, and a global economic downturn and related market uncertainty could negatively impact the availability of components from one or more of these sources, especially during times [removed: such as we have recently seen] when there are supplier constraints based on labor and other actions taken during economic downturns.

During the normal course of business, in order to improve manufacturing lead-time performance and to help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to [added: procure inventory based upon criteria as defined by us or that establish the parameters defining our requirements.]

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

These increases in our inventory and purchase commitments to shorten lead times could also lead to [added: potential] material excess and obsolete inventory charges or other negative impacts to our product gross margin in future periods if we fail to anticipate customer demand properly and product demand significantly [removed: weakens] [added: decreases] for a sustained [removed: duration.][added: duration, we are unable to generate demand for certain products planned for development, or we are unable to continue to mitigate the remaining supply chain exposures.]

Although our product gross margin increased in fiscal [removed: 2023,] [added: 2024,] our level of product gross margins [removed: declined in fiscal 2022 and] have declined in certain prior [removed: periods on a year-over-year basis,] [added: periods,] and could decline in future periods due to adverse impacts from various factors, including:

- Changes in customer, geographic, or product mix, including [added: the] mix of [removed: configurations within each product group][added: hardware and software]

- Introduction of new products, including products with price-performance advantages, and new business models [removed: including] [added: (including continuing to increase] the [removed: transformation] [added: use] of [removed: our] business [removed: to deliver more software and subscription offerings][added: models where revenue is recognized over multiple periods)]

Changes in service gross margin may result from various factors such as changes in the mix between technical support services and advanced services, as well as the timing of technical support service contract initiations and [removed: renewals and] [added: renewals,] the addition of personnel and other [added: related costs, and other] resources to support higher levels of service business in future periods.

Sales to the service provider [added: and cloud] market are especially volatile, and weakness in orders from this industry may harm our operating results and financial condition.

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

Service provider [added: and cloud] product orders significantly decreased during fiscal [removed: 2023] [added: 2024] and we have experienced similar [removed: weakness] [added: declines] in certain prior periods.

Product orders from the service provider [added: and cloud] market could continue to decline and, as has been the case in the past, such weakness could persist over extended periods of time given fluctuating market conditions.

[removed: depends upon the stage of completion of expanding network infrastructures; the availability of] funding; and the extent to which service [removed: providers] [added: provider and cloud customers] are affected by regulatory, economic, and business conditions in the country of operations.

Weakness in orders from this industry, including as a result of any slowdown in capital expenditures by service providers (which may be more prevalent during a global economic downturn, or periods of economic, political or regulatory uncertainty), could [removed: have a material adverse effect on] [added: materially harm] our business, operating results, and financial condition.

For example, in the past, many of our service provider [added: and cloud] customers have been [removed: materially and adversely affected] [added: negatively impacted] by slowdowns in the general economy, by overcapacity, by changes in the service provider [added: and cloud] market, by regulatory developments, and by constraints on capital availability, resulting in business failures and substantial reductions in spending and expansion plans.

These conditions have [removed: materially harmed] [added: negatively impacted] our business and operating results in the past, and could [removed: affect] [added: materially harm] our business and operating results in any future period.

Finally, service provider [added: and cloud] customers typically have longer implementation cycles; require a broader range of services, including design services; demand that vendors take on a larger share of risks; often require acceptance provisions, which can lead to a delay in revenue recognition; and expect financing from vendors.

If we fail to manage distribution of our products and services properly, or if our distributors’ financial condition or operations weaken, our revenue and gross margins could be [removed: adversely affected.][added: negatively impacted.]

To the extent that they fail to do so, that could [removed: have a material adverse effect on] [added: materially harm] our business, operating results, and financial condition.

The markets in which we compete are intensely competitive, which could [removed: adversely affect] [added: negatively impact] our achievement of revenue growth.

Our operations can be difficult to predict because our operating results may fluctuate in future periods.

Additionally, instability in the global credit markets, the impact of uncertainty regarding global central bank monetary

During the first nine months of fiscal 2024, we experienced a decline in product demand resulting in a decrease of revenue as customers continued to scrutinize spend as they needed additional time to implement elevated levels of product shipments received in prior quarters.

Product demand conditions for future periods can be difficult to predict or may persist longer than anticipated.

commitments.

Product demand conditions for future periods can be difficult to predict or may persist longer than anticipated.

For additional information and a further discussion of impacts and risks related to our inventory commitments and our purchase commitments with contract manufacturers and suppliers, see “Results of Operations—Product Gross Margin—Supply Chain Impacts and Risks” and, “Liquidity and Capital Resources—Inventory Supply Chain” under Item 7 and Note 14 to the Consolidated Financial Statements of this report.

Products in the service provider and cloud market could also face a high degree of customer concentration, with bespoke product designs and features that would be difficult to sell to alternate customers should the primary customer reduce its product orders with Cisco.

Sales activity in this industry depends upon the stage of completion of expanding network infrastructures; the availability of

Our financial performance may be negatively impacted by demand for, and costs to deliver, our software subscription offerings; and interruptions or performance problems associated with these offerings, including interruptions or performance problems caused by third-party providers on which we rely, may negatively impact our business and financial results.

In recent years, we have shifted our business model to deliver more recurring software and subscription offerings.

This shift in our business model was accelerated by recent acquisitions, including our acquisition of Splunk in the third quarter of fiscal 2024.

Market acceptance of our software subscription offerings, which includes our as-a-service solutions, can be affected by a variety of factors, including: security, reliability, performance, terms of service, support terms, customer preference, community engagement, concerns regarding data privacy or data protection, and the enactment of laws or regulations in jurisdictions in which we operate.

To generate sales growth for our software subscription offerings, we need to convince potential customers to purchase new licenses or subscriptions and generate timely renewals and additional purchases from existing customers.

Any failure to do so could result in decreased revenue, reduced sales, increased churn or otherwise negatively impact our results of

operations and financial condition.

Further, growth of our software subscription offerings depends, in part, on the ability of customers to use and access these solutions.

We have experienced, and may in the future experience, interruptions in service, storage failures, and other performance-related problems due to a variety of factors, such as infrastructure and software changes, human or software errors, capacity constraints, unauthorized access, denial of service or other cyber attacks.

In some instances, we may not be able to timely identify the cause or causes of these performance problems and, even if timely identified, we may be unable to timely remediate the underlying cause.

It may become increasingly difficult to maintain and improve our performance for our software subscription offerings, especially during peak usage times and as our solutions become more complex and our user traffic increases.

Performance-related issues of our software subscription offerings may result in increased operational costs, delays in new feature rollouts, customer loss, reputational damage, and legal or regulatory liability, including liability under customer contracts or for losses suffered by our customers.

To deliver our software subscription offerings, we have incurred and will continue to incur substantial costs to implement and maintain this business.

We make significant investments to increase or maintain capacity and to develop and implement new technologies in our infrastructure and operations, including those provided by third-party providers on which we rely.

We may not be successful in developing or implementing these technologies.

To the extent that we do not effectively scale our operations to meet the needs of our customers and to maintain performance as our customers expand their use of our solutions, we may not be able to grow this business as quickly as we anticipate, our customers may reduce or cancel use of our solutions, and we may be unable to compete as effectively and our business and results of operations may be harmed.

Additionally, if our costs associated with our software subscription offerings were to significantly increase, our business, results of operations and financial condition may be negatively impacted.

We are also subject to the risk of performance-related problems or interruption of the services provided by third-party providers on which we rely, which could cause revenues for software subscription offerings to decline, damage to our reputation, legal liability exposure, and/or increased expenses, all of which could negatively impact our business, results of operations, and financial condition.

services.

From time to time we initiate restructuring plans.

Software typically contains bugs or other quality or reliability problems that can unexpectedly interfere with its intended operations or the intended operation of the systems in which our software is installed.

Our future results could be negatively impacted 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 materially harm our operating results and financial condition, including the following: impacts from

Leveraging AI capabilities to potentially improve our internal functions and operations also presents further risks, costs, and challenges.

The AI-related legal and regulatory landscape remains uncertain and may be inconsistent from jurisdiction to jurisdiction.

Our obligations to comply with the evolving legal and regulatory landscape could entail significant costs or limit our ability to incorporate certain AI capabilities into our offerings.

commitments, our income in certain countries was subject to reduced tax rates.

We experience cyber attacks and other attempts to gain unauthorized access on a regular basis to (i) our products and services (together, our “solutions”) and (ii) the servers, data centers, networks, systems, and cloud-based services operated or enabled by us, or by third parties upon which we rely, on or through which our and third-party data are stored, processed, or can be accessed (collectively, our “IT environment”).

Despite our active implementation of security and other measures, our solutions and IT environment have been, and continue to be, vulnerable to cyber attacks, incidents, data breaches, malware, inadvertent error, disruptions, failures, physical security breaches, tampering or other theft or misuse, including by employees, contingent workers, and malicious actors.

Additionally, nation-state actors or their agents have in the past successfully attacked our IT environment and have also exploited vulnerabilities in our solutions to carry out attacks, and we anticipate that these attacks and the exploitation of vulnerabilities in our solutions will continue and may intensify during periods of diplomatic or armed conflict.

Even when we prioritize a vulnerability or security defect, in certain instances it has taken, and in the future could take, time for us to develop a remedy and the remedy may ultimately be insufficient to fully fix the issue.

In addition, workarounds or other mitigation efforts in certain instances have not been, and in the future may not be, available or sufficient to protect customers prior to a security update being made available.

Our operating results may fluctuate in future periods, which may adversely affect our stock price.

- The transformation of our business to deliver more software and subscription offerings where revenue is recognized over time

In prior periods, we increased our inventory and purchase commitments in light of the significant supply constraints seen industry-wide due to component shortages.

While supply constraints remain, we saw an overall improvement of such constraints in fiscal 2023.

Our operating results would also be adversely affected if, anticipating greater demand than actually develops, we commit to the purchase of more components than we need, which is more likely to occur during periods of demand uncertainties such as we have experienced in recent periods and expect to continue to experience over the short- and medium-term.

procure inventory based upon criteria as defined by us or that establish the parameters defining our requirements.

Sales activity in this industry

The principal competitive factors in the markets in which we presently compete and may compete in the future include the ability to sell successful business outcomes; the ability to provide a broad range of networking and communications products and services; product performance; price; the ability to introduce new products, including providing continuous new customer value and products with price-performance advantages; the ability to reduce production costs; the ability to provide value-added features such as security, reliability, and investment protection; conformance to standards; market presence; the ability to provide financing; and disruptive technology shifts and new business models.

Our operating results depend on

We initiated a restructuring plan in the second quarter of fiscal 2023, for which we expect such plan to be substantially completed by the end of the first quarter of fiscal 2024.

Software typically contains bugs that can unexpectedly interfere with expected operations.

existing data protection, privacy, intellectual property, and other laws; (ii) damage our reputation; or (iii) otherwise materially harm our business.

Additionally, in connection with the Russia and Ukraine war and our decision to stop business operations and orderly wind down our business in Russia, there are existing claims and lawsuits in Russia, and the potential for future claims and lawsuits in Russia and/or Belarus, related to such decision 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 2023.

transportation, or telecommunications could have similar negative impacts.

infringement of their proprietary rights with respect to our existing or future products or components of those products.

Despite our implementation of security measures, (i) our products and services, and (ii) the servers, data centers, and cloud-based solutions on which our and third-party data is stored or processed (including servers, data centers and cloud-based solutions operated by third parties on which we rely) (collectively, our “IT environment”), are vulnerable to cyber attacks, data breaches, malware, inadvertent error, disruptions, tampering or other theft or misuse, including by employees, contingent workers, malicious actors, or nation-states or their agents (which cyber attack or related activity may intensify during periods of diplomatic or armed conflict).

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.

Additionally, volatility, lack of positive

Cisco designs and sells a broad range of technologies that [removed: power] [added: help to power, secure, and draw insights from] the Internet.

| | | | July [removed: 29, 2023] [added: 27, 2024] | | | | | | July [removed: 30, 2022 | | | | | | Variance | | | | | | July] 29, [removed: 2023] [added: 2023] | | | | | | July 30, 2022 | | | | | | Variance [removed: | | |] [added: in Dollars] | | |

| Revenue | | | $ | [removed: 15,203] [added: 13,642] | | | | | $ | [removed: 13,102] [added: 15,203] | | | | | [removed: 16] [added: (10)] | | % | | | | $ | [removed: 56,998] [added: 53,803] | | | | | $ | [removed: 51,557] [added: 56,998] | | | | | [removed: 11] [added: (6)] | | % | | | |

| Gross margin percentage | | | [removed: 64.1] [added: 64.4] | | % | | | | [removed: 61.3] [added: 64.1] | | % | | | | [removed: 2.8] [added: 0.3] | | | pts | | | [removed: 62.7] [added: 64.7] | | % | | | | [removed: 62.5] [added: 62.7] | | % | | | | [removed: 0.2] [added: 2.0] | | | pts | | |

| Research and development | | | $ | [removed: 1,953] [added: 2,179] | | | | | $ | [removed: 1,682] [added: 1,953] | | | | | [removed: 16] [added: 12] | | % | | | | $ | [removed: 7,551] [added: 7,983] | | | | | $ | [removed: 6,774] [added: 7,551] | | | | | [removed: 11] [added: 6] | | % | | | |

| Sales and marketing | | | $ | [removed: 2,579] [added: 2,841] | | | | | $ | [removed: 2,349] [added: 2,579] | | | | | 10 | | % | | | | $ | [removed: 9,880] [added: 10,364] | | | | | $ | [removed: 9,085] [added: 9,880] | | | | | [removed: 9] [added: 5] | | % | | | |

| General and administrative | | | $ | [removed: 690] [added: 763] | | | | | $ | [removed: 489] [added: 690] | | | | | [removed: 41] [added: 11] | | % | | | | $ | [removed: 2,478] [added: 2,813] | | | | | $ | [removed: 2,101] [added: 2,478] | | | | | [removed: 18] [added: 14] | | % | | | |

| Total R&D, sales and marketing, general and administrative | | | $ | [removed: 5,222] [added: 5,783] | | | | | $ | [removed: 4,520] [added: 5,222] | | | | | [removed: 16] [added: 11] | | % | | | | $ | [removed: 19,909] [added: 21,160] | | | | | $ | [removed: 17,960] [added: 19,909] | | | | | [removed: 11] [added: 6] | | % | | | |

| Total as a percentage of revenue | | | [removed: 34.3] [added: 42.4] | | % | | | | [removed: 34.5] [added: 34.3] | | % | | | | [removed: (0.2)] [added: 8.1] | | | pts | | | [removed: 34.9] [added: 39.3] | | % | | | | [removed: 34.8] [added: 34.9] | | % | | | | [removed: 0.1] [added: 4.4] | | | pts | | |

| Restructuring and other charges included in operating expenses | | | $ | [removed: 203] [added: 112] | | | | | $ | [removed: (2)] [added: 203] | | | | | [removed: NM] [added: (45)] | | [added: %] | | | | $ | [removed: 531] [added: 789] | | | | | $ | [removed: 6] [added: 531] | | | | | [removed: NM] [added: 49] | | [added: %] | | | |

| Operating income as a percentage of revenue | | | [removed: 28.0] | | [removed: %] | [removed: | | | 26.2 | | % | | | | 1.8 | | | pts | | | 26.4] [added: 22.6] | | % | | | | [removed: 27.1] [added: 26.4] | | % | | | | [removed: (0.7) | | | pts] [added: 27.1] | | [added: %] |

| Interest and other income (loss), net | | | $ | [removed: 218] [added: (222)] | | | | | $ | [removed: (18)] [added: 218] | | | | | NM | | | | | | $ | [removed: 287] [added: 53] | | | | | $ | [removed: 508] [added: 287] | | | | | [removed: (44)] [added: (82)] | | % | | | |

| Income tax percentage | | | [removed: 11.5] [added: 9.8] | | % | | | | [removed: 17.6] [added: 11.5] | | % | | | | [removed: (6.1)] [added: (1.7)] | | | pts | | | [removed: 17.7] [added: 15.6] | | % | | | | [removed: 18.4] [added: 17.7] | | % | | | | [removed: (0.7)] [added: (2.1)] | | | pts | | |

| Net income | | | $ | [removed: 3,958] [added: 2,162] | | | | | $ | [removed: 2,815] [added: 3,958] | | | | | [removed: 41] [added: (45)] | | % | | | | $ | [removed: 12,613] [added: 10,320] | | | | | $ | [removed: 11,812] [added: 12,613] | | | | | [removed: 7] [added: (18)] | | % | | | |

| Net income as a percentage of revenue | | | [removed: 26.0] [added: 15.8] | | % | | | | [removed: 21.5] [added: 26.0] | | % | | | | [removed: 4.5] [added: (10.2)] | | | pts | | | [removed: 22.1] [added: 19.2] | | % | | | | [removed: 22.9] [added: 22.1] | | % | | | | [removed: (0.8)] [added: (2.9)] | | | pts | | |

| Earnings per share—diluted | | | $ | [removed: 0.97] [added: 0.54] | | | | | $ | [removed: 0.68] [added: 0.97] | | | | | [removed: 43] [added: (44)] | | % | | | | $ | [removed: 3.07] [added: 2.54] | | | | | $ | [removed: 2.82] [added: 3.07] | | | | | [removed: 9] [added: (17)] | | % | | | |

[removed: Fiscal] [added: *Fiscal] 2023 Compared with Fiscal [removed: 2022][added: 2022*]

We remain focused on delivering innovation across our technologies to assist our customers in executing on their digital [removed: transformations.][added: transformations and on accelerating innovation across our portfolio.]

While [added: we continue to operate in a highly competitive environment and] the overall [added: macroeconomic] environment remains [added: challenging and] uncertain, we [added: plan to] continue to [removed: aggressively] invest in [added: key] priority areas with the objective of driving profitable growth over the long term.

Total [added: deferred] revenue increased [removed: by] 11% [removed: compared with] [added: in] fiscal [removed: 2022.][added: 2024.]

Within total revenue, product revenue [removed: increased] [added: decreased] by [removed: 13%] [added: 9%] and [removed: service] [added: services] revenue increased by [removed: 2%.][added: 5%.]

In fiscal [removed: 2023,] [added: 2024,] total software revenue was [removed: $17.0] [added: $18.4] billion across all product areas and [removed: service,] [added: services,] an increase of [removed: 12%.][added: 9%, driven by the contribution of Splunk.]

Total gross margin increased by [removed: 0.2] [added: 2.0] percentage points.

Product gross margin increased by [removed: 0.5] [added: 2.0] percentage points, largely driven by favorable [removed: pricing and favorable] product [removed: mix] [added: mix, productivity benefits and benefits from Splunk,] partially offset by negative impacts from [removed: productivity.][added: pricing.]

As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, increased by [removed: 0.1] [added: 4.4] percentage points.

Operating income as a percentage of revenue decreased by [removed: 0.7] [added: 3.8] percentage points driven primarily by [added: incremental operating expenses from Splunk, higher] restructuring and other charges [added: and higher amortization] of [removed: $531 million] [added: purchased intangible assets] in fiscal [removed: 2023.][added: 2024.]

Diluted earnings per share [removed: increased] [added: decreased] by [removed: 9%,] [added: 17%,] driven by [removed: an increase] [added: a decrease] of [removed: 7%] [added: 18%] in net income [removed: and] [added: partially offset by] a decrease in diluted share count of [removed: 87] [added: 43] million shares.

In terms of our geographic segments, revenue from the Americas [removed: increased] [added: decreased] by [removed: $3.6] [added: $1.5] billion, EMEA revenue [removed: increased] [added: decreased] by [removed: $1.4] [added: $1.0] billion and revenue in our APJC segment [removed: increased] [added: decreased] by [removed: $0.4] [added: $0.7] billion.

[removed: We experienced product] [added: Product] revenue [removed: growth] [added: in the APJC segment decreased by 13%, driven by declines] across each of our customer markets.

For the fourth quarter of fiscal [removed: 2023,] [added: 2024,] as compared with the fourth quarter of fiscal [removed: 2022,] [added: 2023,] total revenue [removed: increased] [added: decreased] by [removed: 16%.][added: 10%.]

Within total revenue, product revenue [removed: increased] [added: decreased] by [removed: 20%] [added: 15%] and [removed: service] [added: services] revenue increased by [removed: 4%.][added: 6%.]

With regard to our geographic segment performance, on a year-over-year basis, revenue in Americas [removed: increased] [added: decreased] by [removed: 21%,] [added: 11%,] EMEA [removed: increased] [added: decreased] by [removed: 10%] [added: 11%] and APJC [added: decreased] by [removed: 7%.][added: 6%.]

From a product category perspective, we experienced [added: a] product revenue [removed: growth] [added: decline] in [removed: Secure, Agile Networks; Internet for the Future and Optimized Application Experiences;] [added: Networking,] partially offset by [removed: a decline] [added: growth] in [removed: Collaboration.][added: Security and Observability, driven in large part by the contribution of Splunk.]

Product revenue in [removed: End-to-End Security] [added: Collaboration] was flat.

[removed: Total] [added: Product] gross margin increased by [removed: 2.8] [added: 2.0] percentage [removed: points,] [added: points primarily] driven by favorable [removed: pricing, favorable] product [removed: mix and] [added: mix,] productivity [removed: benefits] [added: benefits, largely] driven by lower freight and [removed: logistics] [added: other] costs, [removed: component] and [removed: other costs.][added: benefits from Splunk.]

As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, [removed: decreased] [added: increased] by [removed: 0.2] [added: 8.1] percentage points.

Operating income [added: decreased by 19%, and] as a percentage of revenue [removed: increased] [added: operating income decreased] by [removed: 1.8] [added: 3.8] percentage points.

Diluted earnings per share [removed: increased] [added: decreased] by [removed: 43%,] [added: 44%,] driven by [removed: an increase] [added: a decrease] in net income of [removed: 41% and] [added: 45%, partially offset by] a decrease in diluted share count of [removed: 44] [added: 58] million shares.

The following is a summary of our other key financial measures for fiscal [removed: 2023] [added: 2024] compared with fiscal [removed: 2022] [added: 2023] (in millions):

[removed: | | | | | | | Fiscal 2023 | | | | | |] [added: *Fiscal 2023 Compared with] Fiscal [removed: 2022 | | |][added: 2022*]

We are integrating artificial intelligence (AI) into our product portfolios across networking, security, collaboration and observability to simplify how our technology is delivered, managed and optimized and to help customers maximize the business value of their technology investments and accelerate their digital transformation.

| Operating income as a percentage of revenue | | | 19.2 | | % | | | | 28.0 | | % | | | | (8.8) | | | pts | | | 22.6 | | % | | | | 26.4 | | % | | | | (3.8) | | | pts | | |

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Fiscal 2024 Compared with Fiscal 2023

In March 2024, we completed the acquisition of Splunk Inc. (“Splunk”), which contributed approximately $1.4 billion in total revenue for fiscal 2024.

Total subscription revenue increased 11%, partially driven by the contribution of Splunk.

During the first nine months of fiscal 2024, we experienced a decline in product demand as customers continued to scrutinize spend as they needed additional time to implement elevated levels of product shipments received in prior quarters.

In the fourth quarter of fiscal 2024 we saw improvement in product demand across all geographic segments and customer markets as customers largely completed the installation of their product shipments.

We experienced a product revenue decline in the enterprise and service provider and cloud markets.

From a product category perspective, total product revenue decreased 9% year over year, driven by a decline in revenue in Networking of 15%, partially offset by growth in Security of 32% and Observability of 27%, each driven in large part by the contribution of Splunk.

Product revenue grew in Collaboration by 2%.

We believe that we are making progress on our strategic priorities.

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Total gross margin increased by 0.3 percentage points, driven by favorable product mix and the contribution from Splunk, partially offset by negative impacts from pricing.

Operating income as a percentage of revenue decreased by 8.8 percentage points primarily driven by incremental operating expenses from Splunk and higher amortization of purchased intangible assets.

Across the globe, businesses and organizations of every size are leveraging Cisco technology to transform and drive better outcomes and experiences.

We also help customers navigate emerging technological shifts.

Our strategy is to securely connect everything to make those desired outcomes and experiences possible for our customers.

| | | | | | | Fiscal 2024 | | | | | | Fiscal 2023 | | |

| Total debt | | | | | | $30,962 | | | | | | $8,391 | | |

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

*Goodwill*

*Purchased Intangible Assets*

The accounting for acquisitions requires significant estimates and judgments in the valuation of purchased intangible assets.

Critical estimates used in the valuation of purchased intangible assets include, but are not limited to, the amount and timing of expected future cash flows, useful lives and discount rates.

While our estimates of fair value are based on assumptions that are

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

believed to be reasonable, these assumptions are inherently uncertain and unpredictable and would not reflect unanticipated events and circumstances that may occur.

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

| Services | | | | | | 14,550 | | | | | | 13,856 | | | | | | 13,539 | | | | | | 694 | | | | | | 5 | | % |

Total revenue for fiscal 2024 includes approximately $1.4 billion relating to the acquisition of Splunk, which consisted of approximately $1.1 billion in product revenue and approximately $240 million in services revenue.

| Total | | | | | | $ | 53,803 | | | | | $ | 56,998 | | | | | $ | 51,557 | | | | | $ | (3,195) | | | | | (6) | | % |

Total revenue in fiscal 2024 decreased by 6% compared with fiscal 2023.

We are integrating our product portfolios across networking, security, collaboration, applications and the cloud to create highly secure, intelligent platforms for our customers’ digital businesses.

These platforms are designed to help our customers manage more users, devices and things connecting to their networks.

This will enable us to provide customers with a highly secure, intelligent platform for their digital business.

In fiscal 2023, we delivered strong results with growth in revenue and profitability.

In past periods, we took multiple actions in order to mitigate component shortages and address supply constraints seen industry-wide.

During fiscal 2023, we saw an overall improvement of supply constraints and, as a result, we were able to increase the delivery of products to our customers, which positively impacted product revenue.

Further, we continued to make progress in the transition of our business model delivering increased software and subscriptions.

We remain focused on accelerating innovation across our portfolio, and we believe that we have made continued progress on our strategic priorities.

We continue to operate in a challenging macroeconomic and highly competitive environment.

Within total software revenue, subscription revenue increased 16%.

Although product revenue increased, we saw a decline in product demand in fiscal 2023.

We believe this was due to customers absorbing recently shipped products, adjusting to significant reductions in product lead times, and macroeconomic conditions.

From a product category perspective, total product revenue increased 13% year over year, driven by growth in revenue in Secure, Agile Networks of 22%; Internet for the Future of 1%; End-to-End Security of 4% and Optimized Application Experiences of 11%; partially offset by a product revenue decline in Collaboration of 9%.

As our customers add billions of new connections to their enterprises, and as more applications move to a multicloud environment, the network becomes even more critical.

Our customers are navigating change at an unprecedented pace.

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

Our strategy is to securely connect everything.

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

The fair value of acquired technology and patents, as well as acquired technology under development, is determined at acquisition date primarily using the income approach, which discounts expected future cash flows to present value.

The discount rates used in the present value calculations are typically derived from a weighted-average cost of capital analysis and then adjusted to reflect risks inherent in the development lifecycle as appropriate.

We consider the pricing model for products related to these acquisitions to be standard within the high-technology communications industry, and the applicable discount rates represent the rates that market participants would use for valuation of such intangible assets.

by comparing the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate.

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

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

| Service | | | | | | 13,856 | | | | | | 13,539 | | | | | | 13,804 | | | | | | 317 | | | | | | 2 | | % |

Product revenue in the APJC segment increased by 7%, driven by growth in the commercial and public sector markets, partially offset by a decline in the service provider market.

From a country perspective, product revenue increased by 62% in India, 13% in Australia and 8% in China, partially offset by a decline of 6% in Japan.

| Secure, Agile Networks | | | | | | $ | 29,105 | | | | | $ | 23,831 | | | | | $ | 22,725 | | | | | $ | 5,274 | | | | | 22 | | % |

| Internet for the Future | | | | | | 5,306 | | | | | | 5,276 | | | | | | 4,511 | | | | | | 30 | | | | | | 1 | | % |

| Optimized Application Experiences | | | | | | 811 | | | | | | 729 | | | | | | 654 | | | | | | 82 | | | | | | 11 | | % |

| Other Products | | | | | | 9 | | | | | | 11 | | | | | | 15 | | | | | | (2) | | | | | | (15) | | % |

Amounts for prior fiscal years have been reclassified to conform to the current fiscal year’s presentation.

Secure, Agile Networks

Secure, Agile Networks revenue increased by 22%, or $5.3 billion, with growth across the portfolio except servers.

Internet for the Future

The Internet for the Future product category includes our routed optical networking, 5G, silicon and optics solutions.

Revenue in our Internet for the Future product category increased by 1%, or $30 million, primarily driven by growth in our Core routing portfolio, including our Cisco 8000 series offerings.

We also saw double-digit growth in the webscale provider market.

Optimized Application Experiences

| Service revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

[removed: We had no outstanding hedging instruments for our] [added: Our] available-for-sale debt investments [added: are not leveraged] as of July [removed: 29, 2023.][added: 27, 2024.]

The hypothetical fair values as of July [removed: 29, 2023] [added: 27, 2024] and July [removed: 30, 2022] [added: 29, 2023] 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 29, [removed: 2023] [added: 2023] | | | | | | VALUATION OF SECURITIES GIVEN AN INTEREST RATE INCREASE OF X BASIS POINTS | | | | | | | | | | | | | | |

| Available-for-sale debt investments | | | $15,901 | | | | | | $15,798 | | | | | | $15,695 | | | | | | [removed: $15,592] [added: $15,592] | | | | | | $15,489 | | | | | | $15,386 | | | | | | $15,284 | | |

| | | | VALUATION OF SECURITIES GIVEN AN INTEREST RATE DECREASE OF X BASIS POINTS | | | | | | | | | | | | | | | | | | [removed: FAIR] [added: FAIR] VALUE AS OF JULY [removed: 30, 2022] [added: 27, 2024] | | | | | | VALUATION OF SECURITIES GIVEN AN INTEREST RATE INCREASE OF X BASIS POINTS | | | | | | | | | | | | | | |

Financing Receivables As of July [removed: 29, 2023,] [added: 27, 2024,] our financing receivables had a carrying value of [removed: $6.8] [added: $6.7] billion, compared with [removed: $7.9] [added: $6.8] billion as of July [removed: 30, 2022.][added: 29, 2023.]

As of July [removed: 29, 2023,] [added: 27, 2024,] 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: 29, 2023,] [added: 27, 2024,] we had [removed: $8.5] [added: $20.3] billion in principal amount of senior fixed-rate notes outstanding.

The carrying amount of the senior notes was [removed: $8.4] [added: $20.1] billion, and the related fair value based on market prices was [removed: $8.7] [added: $20.4] billion.

As of July [removed: 29, 2023,] [added: 27, 2024,] a hypothetical 50 BPS increase or decrease in market interest rates would change the fair value of the fixed-rate debt, excluding the [removed: $1.5] [added: $0.5] billion of hedged debt, by a decrease or increase of approximately [removed: $0.3] [added: $0.7] billion, respectively.

The total fair value of our marketable equity securities was [removed: $431] [added: $481] million and [removed: $241] [added: $431] million as of July [removed: 29, 2023] [added: 27, 2024] and July [removed: 30, 2022,] [added: 29, 2023,] respectively.

As of July [removed: 29, 2023,] [added: 27, 2024,] the total carrying amount of our investments in privately held investments [removed: was] [added: were each] $1.8 [removed: billion, compared with $1.9] billion at July [removed: 30, 2022.][added: 27, 2024 and July 29, 2023.]

| | | | July [removed: 29, 2023] [added: 27, 2024] | | | | | | | | | | | | July [removed: 30, 2022] [added: 29, 2023] | | | | | | | | |

| Purchased | | | $ | [removed: 3,014] [added: 3,586] | | | | | $ | [removed: (33)] [added: (59)] | | | | | $ | [removed: 2,578] [added: 3,014] | | | | | $ | [removed: (50)] [added: (33)] | |

| Sold | | | $ | [removed: 2,406] [added: 3,848] | | | | | $ | [removed: 31] [added: 60] | | | | | $ | [removed: 1,943] [added: 2,406] | | | | | $ | [removed: 50] [added: 31] | |

Approximately [removed: 75%] [added: 70%] of our operating expenses are U.S.-dollar denominated.

In fiscal [removed: 2023,] [added: 2024,] foreign currency fluctuations, net of hedging, [removed: decreased] [added: increased] our combined R&D, sales and marketing, and G&A expenses by approximately [removed: $364] [added: $30] million, or [removed: 2.0%,] [added: 0.2%,] as compared with fiscal [removed: 2022.][added: 2023.]

| Available-for-sale debt investments | | | $10,057 | | | | | | $9,993 | | | | | | $9,929 | | | | | | $9,865 | | | | | | $9,800 | | | | | | $9,736 | | | | | | $9,672 | | |

At any time, a sharp rise in market interest rates could cause us to incur additional interest expense to the extent we issue additional commercial paper or other debt.

We may utilize derivative instruments designated as hedging instruments to achieve our investment objectives.

Our available-for-sale debt investments are not leveraged as of July 29, 2023.

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

Cisco designs and sells a broad range of technologies that [removed: power] [added: help to power, secure, and draw insights from] the Internet.

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

In addition to our product offerings, we provide a broad range of [removed: service] [added: services] offerings, including technical support services and advanced [added: services, also known as lifecycle] services.

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 [removed: infrastructure in an automated way in order] [added: infrastructure, including through automation] to manage and monitor each connection in real time.

For the data center, our strategy is to deliver multicloud architectures that bring policy and operational consistency, regardless of where applications or data [removed: reside, by extending our Application Centric Infrastructure (ACI) and our hyperconverged offerings.][added: reside.]

We continue to make significant investments in the development of software, silicon and [removed: optics —] [added: optics,] which we believe are the building blocks for the [removed: Internet] [added: internet] for the [removed: Future.][added: future.]

[removed: We have also expanded our] Cisco Silicon One [removed: platform] [added: is our single, unified, and scalable networking silicon architecture which we have expanded] from a [removed: routing focused] [added: routing-focused] solution to one which addresses the webscale switching [removed: market.][added: market through the combination of its high-performance, feature-rich, and low-power characteristics.]

We [removed: are investing significant] [added: continue to invest in] resources across our security portfolio focused on cloud-based offerings, [removed: artificial intelligence-driven] [added: AI-enhanced] threat detection and end-to-end security architectures.

For a discussion of the risks associated with our [removed: strategy,] [added: Strategy and Priorities,] see “Item 1A.

[removed: Secure, Agile Networks] [added: Networking] consists of our core networking technologies of switching, [removed: enterprise] routing, wireless, and [removed: compute products.][added: servers.]

These technologies consist of both hardware and software offerings, including software licenses and [removed: SaaS,] [added: software-as-a-service (SaaS),] that help our customers build networks, automate, [removed: orchestrate, integrate,] [added: modernize] and [removed: digitize data.][added: transform their infrastructure.]

We believe it is critical for us to [removed: continue to] deliver continuous value to our customers.

Our objective is to [removed: continue converging] [added: converge] our on-premise solutions with our cloud managed solutions across our [removed: enterprise] networking portfolio.

Our campus switching offerings provide the foundation for converged data, voice, video, and [removed: IoT] [added: Internet of Things (IoT)] services.

Within campus switching are our Catalyst 9000 series of [added: switches that include hardware with embedded software, along with a software subscription referred to as Cisco DNA.]

Our 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 for our large to small enterprise and commercial customers.][added: networks.]

Our routing solutions are designed to meet the scale, reliability, and security needs of our [added: large to small] customers.

These products include wireless access points and controllers that are on-premise and cloud managed, and [added: which,] combined with our Switching portfolio, delivers a converged access solution that is powerful, yet simple.

[removed: Our] Internet [removed: for the Future product category] [added: Infrastructure primarily] consists of our routed optical [removed: networking, 5G, silicon and optics] [added: networking] solutions.

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

Our Cisco 8000 series [removed: routers] [added: routers, which are based on our Silicon One,] provide broad capacity in high-density designs, allowing our customers to reduce operational footprints, lower carbon emissions, and [removed: evolve] [added: transition] to more efficient network architectures.

[removed: Our] Collaboration [removed: product category] consists of our [removed: Meetings,] [added: Webex Suite,] Collaboration Devices, [removed: Calling,] Contact Center and Communication Platform as a Service (CPaaS) offerings.

Our Collaboration strategy is to [removed: power hybrid work by reimagining] [added: reimagine] employee and customer experiences to be more inclusive and engaging by providing technology that enables distributed teams to collaborate effortlessly.

[removed: Artificial intelligence] [added: AI] and machine learning capabilities are embedded across the Webex [removed: portfolio, providing collaboration experiences that integrate people insights, relationship and audio intelligence] [added: portfolio] to help improve productivity.

[removed: 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.

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

Security [removed: continues to be] [added: is] a leading priority for our customers, regardless of size or industry.

Our [removed: full stack observability] [added: Observability] offerings are designed to bring together and provide end-to-end visibility of our customer’s environments across applications, networks, multi-cloud infrastructures and the Internet, to help deliver full stack observability for modern environments and drive relevant real-time insights.

[removed: It enables] [added: These offerings enable] organizations to see, understand, and improve every digital experience and assure seamless connectivity for their modern digital environments.

Our customers primarily operate in the following markets: enterprise, [removed: commercial,] [added: public sector and] service [removed: provider,] [added: provider] and [removed: public sector.][added: cloud.]

Enterprise [added: includes] businesses [added: that] are large regional, national, or global organizations with multiple locations or branch [removed: offices.][added: offices, or mid-market and small businesses.]

Many enterprise businesses have unique IT, collaboration, and networking needs within a [removed: multivendor] [added: multi-vendor] environment.

[removed: These] [added: Our mid-market and small business] customers typically require the latest advanced [removed: technologies that our enterprise customers demand,] [added: technologies,] but with less complexity.

[removed: Service providers offer] [added: This customer market offers] data, voice, video, and mobile/wireless services to businesses, governments, utilities, and consumers worldwide.

[removed: The service provider market] [added: Service Provider and Cloud] includes regional, national, and international wireline [removed: carriers,] [added: carriers and] webscale [removed: operators] [added: operators,] as well as [removed: Internet,] [added: internet,] cable, and wireless providers.

We also include media, broadcast, and content providers within [removed: our service provider] [added: this customer] market, as the lines in the telecommunications industry continue to blur between traditional network-based, content-based and application-based services.

Service [removed: providers] [added: provider and cloud businesses] use a variety of our products and services for their own networks.

[removed: The public sector market] [added: Public Sector] includes federal, state and local governments, as well as educational institution customers.

We sell to public sector customers through a network of third-party application and technology [removed: vendors,] [added: vendors and] channel partners, as well as through direct sales.

As of the end of fiscal [removed: 2023,] [added: 2024,] our worldwide sales and marketing functions consisted of approximately [removed: 26,000] [added: 28,000] employees, including managers, sales representatives, and technical support personnel.

We are integrating artificial intelligence (AI) into our product portfolios across networking, security, collaboration and observability to simplify how our technology is delivered, managed and optimized and to help customers maximize the business value of their technology investments and accelerate their digital transformation.

Across the globe, businesses and organizations of every size are leveraging Cisco technology to transform and drive better outcomes and experiences.

We also help customers navigate emerging technological shifts.

Our strategy is to securely connect everything to make those desired outcomes and experiences possible for our customers.

In today’s dynamic environment, our customers have three key priorities: build modern and resilient infrastructure; protect against the cyber threats of today and tomorrow; and harness the power of AI and data.

These customer priorities are central to how we innovate and develop our technology.

First, we provide the underlying network connectivity for our customers, whether they are connecting traditional branch offices, data centers, smart grids, video devices, electric vehicles, or other devices.

Second, we help protect those network connections and the underlying technology architecture against cyber threats.

Third, through the visibility we have into data across the network, connected devices and applications, we provide context and insights to our customers about what is happening in their technology architecture, not only in their on-premise infrastructure and private data centers, but also their cloud infrastructure.

Our ongoing innovation is delivered, managed and optimized through a combination of hardware, software and subscriptions, in line with the flexible consumption models our customers request.

Cisco can help customers connect, protect and draw actionable insights from their technology.

We do this in service of delivering the digital resilience our customers need for today’s complex and unpredictable world.

*Modernize Infrastructure*

We continue to transform our enterprise networking portfolio by bringing together several technologies to form an integrated architecture.

Our vision is to build a unified management platform experience for on-premise and cloud operating models, that simplifies and helps secure networking for customers at scale.

Our Observability offerings collect and process daily measurements from customers’ owned and unowned networks, providing automated insights, proactive recommendations, and closed-loop operations tailored to customers to enable them to reduce mean time to resolution of issues and improve IT productivity and user experience.

As part of modernizing their infrastructure, customers of every size are also looking for solutions to help them communicate more effectively with their customers and to connect their employees more efficiently for productivity.

Our collaboration portfolio, which includes interoperable devices and our cloud contact center, provides those solutions, and serves as a key component of smart buildings, powered over ethernet, that we believe will define the workplaces of the future.

*Improve Cybersecurity*

With the rapid growth in modern applications, hyper-distributed architecture and increasingly sophisticated cyberattacks, customers see cybersecurity as a top priority.

Our differentiated security strategy is based on three pillars: moving from point solutions to a platform comprehensively integrated with the infrastructure; infusing security into the fabric of the network; and harnessing the depth and breadth of telemetry data from Cisco and with our acquisition of Splunk Inc. (“Splunk”) to prevent, detect, and respond to sophisticated attacks.

*Harness the Power of AI and Data*

AI represents a generational shift in technology and is driving an order of magnitude higher requirement for network connectivity.

We provide network infrastructure to power AI training and inference workloads for both webscalers and enterprises.

We help to scale our customers’ network infrastructure with high-density routers and switches, improved network management, and high-performance optics.

We are reinventing data center operations for our customers by simplifying the configuration, monitoring, and maintenance of fabrics, compute, networking and storage.

We can help give customers visibility across the network, security solutions, applications and their own business data.

With this breadth and scale of data, we can help deliver differentiated insights and context to customers, leading them to more informed proactive decisions and better business results.

Networking

Also, within campus switching we have a range of Meraki cloud-managed switches for customers who prefer ease of management in lean-IT environments.

Security consists of our Network Security, Identity and Access Management, Secure Access Service Edge (SASE) and Threat Intelligence, Detection, and Response offerings.

Our Threat Intelligence, Detection, and Response offerings incorporate the technologies of Splunk to prevent, detect and respond to sophisticated cyber attacks.

This product category includes the Splunk Platform and Splunk Security offerings after the acquisition of Splunk, although the Splunk Platform has use cases that can also be applicable for Observability offerings.

With our acquisition of Splunk in the third quarter of fiscal 2024, we have begun to integrate our solutions, starting with Cisco Extended Detection and Response (XDR) and Splunk Enterprise Security.

Our CPaaS is a cloud

Observability

Observability consists of our network assurance, monitoring and analytics and observability suite offerings.

Our Observability Suite offering, including Splunk Observability and AppDynamics, provides complete visibility across the full stack from infrastructure to applications as well as the digital customer experience.

We are also embedding AI assistants and automated functions into our services to drive productivity.

Service Provider and Cloud

We are integrating our product portfolios across networking, security, collaboration, applications and the cloud to create highly secure, intelligent platforms for our customers’ digital businesses.

These platforms are designed to help our customers manage more users, devices and things connecting to their networks.

This will enable us to provide customers with a highly secure, intelligent platform for their digital business.

Increasingly, we are delivering our technologies through software and services.

As our customers add billions of new connections to their enterprises, and as more applications move to a multicloud environment, the network becomes even more critical.

Our customers are navigating change at an unprecedented pace.

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

Our strategy is to securely connect everything.

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

*Transform Infrastructure*

Our strategy 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 architectures, and continued with the launch of our Catalyst 9000 series of switches.

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, no matter where they are.

We have introduced several innovations that extend our networking capabilities to wireless and enterprise routing products, including Software-Defined Wide Area Network (SD-WAN) and Internet of Things (IoT) edge platforms.

Our SD-WAN solutions are designed to provide direct branch to cloud connectivity, enabling the workforce to access their software-as-a-service (SaaS) applications and workloads in an optimized and highly secure manner.

We have continued to expand our SD-WAN offering, through our Cloud OnRamp integrations with several webscale providers to deliver predictable and highly secure application experiences.

To further our innovation in this area, we are applying the latest technologies, such as machine learning and advanced analytics, to operate and enhance network capabilities.

These network product offerings are designed to 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 also helping to maintain privacy.

Our customers are operating in multicloud environments with private, public and hybrid clouds.

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

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

Our technology strategy for the Internet for the Future is aimed at addressing the broad adoption of multicloud and application environments.

We introduced Cisco Silicon One, a single unified silicon architecture, as well as the Cisco 8000 carrier-class router family built on Cisco Silicon One and our operating system, Cisco IOS XR7.

By combining our routed optical networking solution integrating our routers with pluggable optics, we can further help deliver cost savings to our customers.

*Secure the Enterprise*

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.

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.

We 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.

This extends to our secure access service edge (SASE) framework and Zero Trust architecture, where we have developed a cloud-delivered stack.

We are also delivering unified detection and response capabilities with Cisco Extended Detection and Response (XDR), a cloud-based solution, and introduced new innovations across firewall, multicloud and application security capabilities.

To enable a more optimized hybrid work experience with simple access across any location, device, and application, we have brought to market a security service edge (SSE) solution.

Additionally, we have announced generative AI capabilities as part of our Security Cloud platform to simplify security operations and increase efficiency.

*Power Hybrid Work*

Over the last several years, 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 into the future.

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.

For the fiscal year ended July [removed: 29, 2023][added: 27, 2024]

[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: 27, 2023] [added: 26, 2024] as reported by the Nasdaq Global Select Market on that date: [removed: $198.6] [added: $211.1] billion

Number of shares of the registrant’s common stock outstanding as of [removed: September 1, 2023: 4,054,857,783][added: August 30, 2024: 3,990,734,794]

Portions of the registrant’s definitive Proxy Statement relating to the [removed: 2023] [added: 2024] Annual Meeting of Stockholders, to be held on December [removed: 6, 2023,] [added: 9, 2024,] are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.

| Item 1. | | | | | | [removed: [Business](#i571cdcfda50247c69152a12c0790d2e9_16)] [added: [Business](#ibc9acfa3cec047e9a0295718c0842bcf_16)] | | | | | | [removed: [1](#i571cdcfda50247c69152a12c0790d2e9_16)] [added: [1](#ibc9acfa3cec047e9a0295718c0842bcf_16)] | | |

| Item 1A. | | | | | | [Risk [removed: Factors](#i571cdcfda50247c69152a12c0790d2e9_19)] [added: Factors](#ibc9acfa3cec047e9a0295718c0842bcf_19)] | | | | | | [removed: [14](#i571cdcfda50247c69152a12c0790d2e9_19)] [added: [12](#ibc9acfa3cec047e9a0295718c0842bcf_19)] | | |

| Item 1B. | | | | | | [Unresolved Staff [removed: Comments](#i571cdcfda50247c69152a12c0790d2e9_22)] [added: Comments](#ibc9acfa3cec047e9a0295718c0842bcf_22)] | | | | | | [removed: [29](#i571cdcfda50247c69152a12c0790d2e9_22)] [added: [26](#ibc9acfa3cec047e9a0295718c0842bcf_22)] | | |

| Item 2. | | | | | | [removed: [Properties](#i571cdcfda50247c69152a12c0790d2e9_25)] [added: [Properties](#ibc9acfa3cec047e9a0295718c0842bcf_25)] | | | | | | [removed: [29](#i571cdcfda50247c69152a12c0790d2e9_25)] [added: [28](#ibc9acfa3cec047e9a0295718c0842bcf_25)] | | |

| Item 3. | | | | | | [Legal [removed: Proceedings](#i571cdcfda50247c69152a12c0790d2e9_28)] [added: Proceedings](#ibc9acfa3cec047e9a0295718c0842bcf_28)] | | | | | | [removed: [29](#i571cdcfda50247c69152a12c0790d2e9_28)] [added: [28](#ibc9acfa3cec047e9a0295718c0842bcf_28)] | | |

| Item 4. | | | | | | [Mine Safety [removed: Disclosures](#i571cdcfda50247c69152a12c0790d2e9_31)] [added: Disclosures](#ibc9acfa3cec047e9a0295718c0842bcf_31)] | | | | | | [removed: [29](#i571cdcfda50247c69152a12c0790d2e9_31)] [added: [28](#ibc9acfa3cec047e9a0295718c0842bcf_31)] | | |

| Item 5. | | | | | | [Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity [removed: Securities](#i571cdcfda50247c69152a12c0790d2e9_37)] [added: Securities](#ibc9acfa3cec047e9a0295718c0842bcf_37)] | | | | | | [removed: [30](#i571cdcfda50247c69152a12c0790d2e9_37)] [added: [29](#ibc9acfa3cec047e9a0295718c0842bcf_37)] | | |

| Item 6. | | | | | | [removed: [\[Reserved\]](#i571cdcfda50247c69152a12c0790d2e9_43)] [added: [\[Reserved\]](#ibc9acfa3cec047e9a0295718c0842bcf_43)] | | | | | | [removed: [31](#i571cdcfda50247c69152a12c0790d2e9_43)] [added: [30](#ibc9acfa3cec047e9a0295718c0842bcf_43)] | | |

| Item 7. | | | | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i571cdcfda50247c69152a12c0790d2e9_46)] [added: Operations](#ibc9acfa3cec047e9a0295718c0842bcf_46)] | | | | | | [removed: [32](#i571cdcfda50247c69152a12c0790d2e9_46)] [added: [31](#ibc9acfa3cec047e9a0295718c0842bcf_46)] | | |

| Item 7A. | | | | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#i571cdcfda50247c69152a12c0790d2e9_79)] [added: Risk](#ibc9acfa3cec047e9a0295718c0842bcf_79)] | | | | | | [removed: [52](#i571cdcfda50247c69152a12c0790d2e9_79)] [added: [51](#ibc9acfa3cec047e9a0295718c0842bcf_79)] | | |

| Item 8. | | | | | | [Financial Statements and Supplementary [removed: Data](#i571cdcfda50247c69152a12c0790d2e9_82)] [added: Data](#ibc9acfa3cec047e9a0295718c0842bcf_82)] | | | | | | [removed: [54](#i571cdcfda50247c69152a12c0790d2e9_82)] [added: [53](#ibc9acfa3cec047e9a0295718c0842bcf_82)] | | |

| Item 9. | | | | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#i571cdcfda50247c69152a12c0790d2e9_175)] [added: Disclosure](#ibc9acfa3cec047e9a0295718c0842bcf_175)] | | | | | | [removed: [100](#i571cdcfda50247c69152a12c0790d2e9_175)] [added: [104](#ibc9acfa3cec047e9a0295718c0842bcf_175)] | | |

| Item 9A. | | | | | | [Controls and [removed: Procedures](#i571cdcfda50247c69152a12c0790d2e9_178)] [added: Procedures](#ibc9acfa3cec047e9a0295718c0842bcf_178)] | | | | | | [removed: [100](#i571cdcfda50247c69152a12c0790d2e9_178)] [added: [104](#ibc9acfa3cec047e9a0295718c0842bcf_178)] | | |

| Item 9B. | | | | | | [Other [removed: Information](#i571cdcfda50247c69152a12c0790d2e9_181)] [added: Information](#ibc9acfa3cec047e9a0295718c0842bcf_181)] | | | | | | [removed: [100](#i571cdcfda50247c69152a12c0790d2e9_181)] [added: [104](#ibc9acfa3cec047e9a0295718c0842bcf_181)] | | |

| Item 9C. | | | | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#i571cdcfda50247c69152a12c0790d2e9_184)] [added: Inspections](#ibc9acfa3cec047e9a0295718c0842bcf_187)] | | | | | | [removed: [100](#i571cdcfda50247c69152a12c0790d2e9_184)] [added: [104](#ibc9acfa3cec047e9a0295718c0842bcf_187)] | | |

| Item 10. | | | | | | [Directors, Executive Officers and Corporate [removed: Governance](#i571cdcfda50247c69152a12c0790d2e9_190)] [added: Governance](#ibc9acfa3cec047e9a0295718c0842bcf_193)] | | | | | | [removed: [101](#i571cdcfda50247c69152a12c0790d2e9_190)] [added: [105](#ibc9acfa3cec047e9a0295718c0842bcf_193)] | | |

| Item 11. | | | | | | [Executive [removed: Compensation](#i571cdcfda50247c69152a12c0790d2e9_193)] [added: Compensation](#ibc9acfa3cec047e9a0295718c0842bcf_196)] | | | | | | [removed: [101](#i571cdcfda50247c69152a12c0790d2e9_193)] [added: [105](#ibc9acfa3cec047e9a0295718c0842bcf_196)] | | |

| Item 12. | | | | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i571cdcfda50247c69152a12c0790d2e9_196)] [added: Matters](#ibc9acfa3cec047e9a0295718c0842bcf_199)] | | | | | | [removed: [101](#i571cdcfda50247c69152a12c0790d2e9_196)] [added: [105](#ibc9acfa3cec047e9a0295718c0842bcf_199)] | | |

| Item 13. | | | | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i571cdcfda50247c69152a12c0790d2e9_199)] [added: Independence](#ibc9acfa3cec047e9a0295718c0842bcf_202)] | | | | | | [removed: [101](#i571cdcfda50247c69152a12c0790d2e9_199)] [added: [105](#ibc9acfa3cec047e9a0295718c0842bcf_202)] | | |

| Item 14. | | | | | | [Principal Accountant Fees and [removed: Services](#i571cdcfda50247c69152a12c0790d2e9_202)] [added: Services](#ibc9acfa3cec047e9a0295718c0842bcf_205)] | | | | | | [removed: [101](#i571cdcfda50247c69152a12c0790d2e9_202)] [added: [105](#ibc9acfa3cec047e9a0295718c0842bcf_205)] | | |

| Item 15. | | | | | | [Exhibits and Financial Statement [removed: Schedules](#i571cdcfda50247c69152a12c0790d2e9_208)] [added: Schedules](#ibc9acfa3cec047e9a0295718c0842bcf_211)] | | | | | | [removed: [101](#i571cdcfda50247c69152a12c0790d2e9_208)] [added: [105](#ibc9acfa3cec047e9a0295718c0842bcf_211)] | | |

| Item 16. | | | | | | [Form 10-K [removed: Summary](#i571cdcfda50247c69152a12c0790d2e9_214)] [added: Summary](#ibc9acfa3cec047e9a0295718c0842bcf_217)] | | | | | | [removed: [103](#i571cdcfda50247c69152a12c0790d2e9_214)] [added: [107](#ibc9acfa3cec047e9a0295718c0842bcf_217)] | | |

| Item 1C. | | | | | | [Cybersecurity](#ibc9acfa3cec047e9a0295718c0842bcf_1884) | | | | | | [27](#ibc9acfa3cec047e9a0295718c0842bcf_1884) | | |

| | | | | | | [Signatures](#ibc9acfa3cec047e9a0295718c0842bcf_220) | | | | | | [108](#ibc9acfa3cec047e9a0295718c0842bcf_220) | | |

| | | | | | | [Signatures](#i571cdcfda50247c69152a12c0790d2e9_217) | | | | | | [104](#i571cdcfda50247c69152a12c0790d2e9_217) | | |

We recognize the critical importance of maintaining the trust and confidence of our customers, employees, and other stakeholders.

To help mitigate the cybersecurity risks that we face, we maintain processes for identifying, assessing, and managing such risks.

Our incident response functions, which include our Security and Trust Organization (“S&TO”) under the leadership of our Chief Security and Trust Officer, have established internal policies, processes, and procedures to monitor, detect, investigate, respond to, and escalate management of internal and external cybersecurity threats and incidents.

We maintain policies and procedures for the escalation of cybersecurity incidents, assessed as potentially being or becoming material, to designated members of our senior management for further assessment.

We also, as necessary, inform our independent registered public accounting firm of significant cybersecurity matters and any relevant developments.

To help identify, assess, and mitigate cybersecurity threats that we face to our business, S&TO, in addition to its own capabilities, partners with Cisco’s Talos Threat Intelligence Group and third parties, including governments and peer companies, to share and receive threat intelligence and other information.

S&TO actively monitors for and evaluates cybersecurity vulnerabilities, threats, and incidents observable on the internet and the dark web.

In addition to monitoring risks from threats to our own business, we operate third-party risk management programs to help identify and manage risks from cybersecurity threats arising from third-party suppliers and service providers on which we rely.

These programs leverage on-going security-focused risk assessments based on industry practices, audits, and contractual requirements.

We strive to embed security into our products and services through the Cisco Secure Development Lifecycle (CSDL).

The CSDL introduces security and privacy considerations throughout the lifecycle of our products and services.

In addition, S&TO advises business units and functional areas on addressing cybersecurity risks and monitors initiatives to mitigate and manage such risks over time.

Our business units or functional areas are responsible for managing risks and ensuring that security policies and standards are implemented within the respective business unit or function.

S&TO also conducts mandatory cybersecurity training for our employees and provides employees with tools to report suspected incidents.

S&TO engages third parties in connection with our cybersecurity risk management processes, including cybersecurity consultants and auditors, to conduct evaluations of our IT security controls and provide certifications for industry-standard security frameworks.

In addition, we maintain a global privacy program to assess and manage privacy risks related to how we are collecting, using, sharing, and storing personal data, which is subject to assessment by an independent, third-party privacy assessor.

Our Chief Security and Trust Officer, who reports to our Executive Vice President, Operations, works collaboratively across our business to implement policies and procedures designed to protect our IT environment and our products and services from cybersecurity threats, and to promptly respond to cybersecurity incidents in accordance with our incident response policies and procedures.

Our Chief Security and Trust Officer has extensive cybersecurity experience and has served in various roles in information technology and information security for over 25 years.

The Chief Security and Trust Officer provides regular reports on the status of cybersecurity risks, priorities, and focus areas to our executive leadership team.

In addition, information on cybersecurity risks is further integrated into our broader enterprise risk management program through our internal audit function, which incorporates such information in regular audits of our cybersecurity and data protection controls and processes.

Our Board of Directors oversees risks related to cybersecurity threats to our business directly and through its Audit Committee.

The Audit Committee receives regular reports on cybersecurity risks, priorities, and focus areas from our Chief Security and Trust Officer at least four times a year and receives a live presentation at least twice a year.

Our Board of Directors also regularly receives updates from the Audit Committee on its oversight activities and, on occasion, receives updates directly from our Chief Security and Trust Officer.

Additionally, the Chief Security and Trust Officer provides more frequent updates to the Board of Directors and Audit Committee if necessary due to a cybersecurity threat, incident, or other development.

As of the date of this Annual Report on Form 10-K, we do not believe our business, operating results, or financial condition have been materially affected by cybersecurity risks, including as a result of previously identified cybersecurity incidents.

For more information on our cybersecurity related risks, see “Item 1A.

Risk Factors” of this Annual Report on Form 10-K.

| | | | | | |

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

Other significant sites (in addition to the two non-U.S. headquarters locations) are located in Australia, Belgium, Canada, China, Germany, India, Israel, [removed: Japan,] [added: Norway,] Poland, and the United Kingdom.

We also own land for expansion in some of these locations.

There were [removed: 33,809] [added: 32,405] registered stockholders as of [removed: September 1, 2023.][added: August 30, 2024.]

As of July [removed: 29, 2023,] [added: 27, 2024,] the remaining authorized amount for stock repurchases under this program is approximately [removed: $10.9] [added: $5.2] billion with no termination date.

[removed: ][added: ]

| | | | July [removed: 2018] [added: 2019] | | | | | | July [removed: 2019] [added: 2020] | | | | | | July [removed: 2020] [added: 2021] | | | | | | July [removed: 2021] [added: 2022] | | | | | | July [removed: 2022] [added: 2023] | | | | | | July [removed: 2023] [added: 2024] | | |

| April 28, 2024 to May 25, 2024 | | | 12 | | | | | | $ | 47.44 | | | | | 12 | | | | | | $ | 6,585 | |

| May 26, 2024 to June 22, 2024 | | | 18 | | | | | | $ | 46.08 | | | | | 18 | | | | | | $ | 5,770 | |

| June 23, 2024 to July 27, 2024 | | | 13 | | | | | | $ | 47.19 | | | | | 13 | | | | | | $ | 5,170 | |

| Total | | | 43 | | | | | | $ | 46.80 | | | | | 43 | | | | | | | | |

| Cisco Systems, Inc. | | | $ | 100.00 | | | | | $ | 84.70 | | | | | $ | 104.30 | | | | | $ | 87.95 | | | | | $ | 104.27 | | | | | $ | 98.92 | |

| S&P 500 | | | $ | 100.00 | | | | | $ | 108.39 | | | | | $ | 150.48 | | | | | $ | 143.50 | | | | | $ | 161.94 | | | | | $ | 195.82 | |

| S&P Information Technology | | | $ | 100.00 | | | | | $ | 129.40 | | | | | $ | 190.26 | | | | | $ | 179.77 | | | | | $ | 227.74 | | | | | $ | 304.23 | |

| April 30, 2023 to May 27, 2023 | | | 5 | | | | | | $ | 47.88 | | | | | 5 | | | | | | $ | 11,946 | |

| May 28, 2023 to June 24, 2023 | | | 9 | | | | | | $ | 50.45 | | | | | 9 | | | | | | $ | 11,513 | |

| June 25, 2023 to July 29, 2023 | | | 11 | | | | | | $ | 51.69 | | | | | 11 | | | | | | $ | 10,934 | |

| Total | | | 25 | | | | | | $ | 50.49 | | | | | 25 | | | | | | | | |

| Cisco Systems, Inc. | | | $ | 100.00 | | | | | $ | 136.47 | | | | | $ | 115.60 | | | | | $ | 142.33 | | | | | $ | 120.02 | | | | | $ | 142.29 | |

| S&P 500 | | | $ | 100.00 | | | | | $ | 109.53 | | | | | $ | 118.72 | | | | | $ | 164.83 | | | | | $ | 157.18 | | | | | $ | 177.38 | |

| S&P Information Technology | | | $ | 100.00 | | | | | $ | 116.56 | | | | | $ | 150.84 | | | | | $ | 221.77 | | | | | $ | 209.55 | | | | | $ | 265.46 | |

[Index to Consolidated Financial [removed: Statements](#i571cdcfda50247c69152a12c0790d2e9_85)][added: Statements](#ibc9acfa3cec047e9a0295718c0842bcf_85)]

| [Report of Independent Registered Public Accounting [removed: Firm](#i571cdcfda50247c69152a12c0790d2e9_88)] [added: Firm](#ibc9acfa3cec047e9a0295718c0842bcf_88)] (PCAOB ID 238) | | | [removed: [55](#i571cdcfda50247c69152a12c0790d2e9_88)] [added: [54](#ibc9acfa3cec047e9a0295718c0842bcf_88)] | | |

| [Reports of [removed: Management](#i571cdcfda50247c69152a12c0790d2e9_91)] [added: Management](#ibc9acfa3cec047e9a0295718c0842bcf_91)] | | | [removed: [57](#i571cdcfda50247c69152a12c0790d2e9_91)] [added: [57](#ibc9acfa3cec047e9a0295718c0842bcf_91)] | | |

| [Consolidated Balance [removed: Sheets](#i571cdcfda50247c69152a12c0790d2e9_94)] [added: Sheets](#ibc9acfa3cec047e9a0295718c0842bcf_94)] | | | [removed: [58](#i571cdcfda50247c69152a12c0790d2e9_94)] [added: [58](#ibc9acfa3cec047e9a0295718c0842bcf_94)] | | |

| [Consolidated Statements of [removed: Operations](#i571cdcfda50247c69152a12c0790d2e9_97)] [added: Operations](#ibc9acfa3cec047e9a0295718c0842bcf_97)] | | | [removed: [59](#i571cdcfda50247c69152a12c0790d2e9_97)] [added: [59](#ibc9acfa3cec047e9a0295718c0842bcf_97)] | | |

| [Consolidated Statements of Comprehensive [removed: Income](#i571cdcfda50247c69152a12c0790d2e9_100)] [added: Income](#ibc9acfa3cec047e9a0295718c0842bcf_100)] | | | [removed: [60](#i571cdcfda50247c69152a12c0790d2e9_100)] [added: [60](#ibc9acfa3cec047e9a0295718c0842bcf_100)] | | |

| [Consolidated Statements of Cash [removed: Flows](#i571cdcfda50247c69152a12c0790d2e9_103)] [added: Flows](#ibc9acfa3cec047e9a0295718c0842bcf_103)] | | | [removed: [61](#i571cdcfda50247c69152a12c0790d2e9_103)] [added: [61](#ibc9acfa3cec047e9a0295718c0842bcf_103)] | | |

| [Consolidated Statements of [removed: Equity](#i571cdcfda50247c69152a12c0790d2e9_106)] [added: Equity](#ibc9acfa3cec047e9a0295718c0842bcf_106)] | | | [removed: [62](#i571cdcfda50247c69152a12c0790d2e9_106)] [added: [62](#ibc9acfa3cec047e9a0295718c0842bcf_106)] | | |

| [Notes to Consolidated Financial [removed: Statements](#i571cdcfda50247c69152a12c0790d2e9_109)] [added: Statements](#ibc9acfa3cec047e9a0295718c0842bcf_109)] | | | [removed: [63](#i571cdcfda50247c69152a12c0790d2e9_109)] [added: [63](#ibc9acfa3cec047e9a0295718c0842bcf_109)] | | |

| [Note 1: Basis of [removed: Presentation](#i571cdcfda50247c69152a12c0790d2e9_112)] [added: Presentation](#ibc9acfa3cec047e9a0295718c0842bcf_112)] | | | [removed: [63](#i571cdcfda50247c69152a12c0790d2e9_112)] [added: [63](#ibc9acfa3cec047e9a0295718c0842bcf_112)] | | |

| [Note 2: Summary of Significant Accounting [removed: Policies](#i571cdcfda50247c69152a12c0790d2e9_115)] [added: Policies](#ibc9acfa3cec047e9a0295718c0842bcf_115)] | | | [removed: [63](#i571cdcfda50247c69152a12c0790d2e9_115)] [added: [63](#ibc9acfa3cec047e9a0295718c0842bcf_115)] | | |

| [Note 3: [removed: Revenue](#i571cdcfda50247c69152a12c0790d2e9_118)] [added: Revenue](#ibc9acfa3cec047e9a0295718c0842bcf_118)] | | | [removed: [69](#i571cdcfda50247c69152a12c0790d2e9_118)] [added: [69](#ibc9acfa3cec047e9a0295718c0842bcf_118)] | | |

| [Note 4: [removed: Acquisitions and Divestitures](#i571cdcfda50247c69152a12c0790d2e9_121)] [added: Acquisitions](#ibc9acfa3cec047e9a0295718c0842bcf_121)] | | | [removed: [71](#i571cdcfda50247c69152a12c0790d2e9_121)] [added: [71](#ibc9acfa3cec047e9a0295718c0842bcf_121)] | | |

| [Note 5: Goodwill and Purchased Intangible [removed: Assets](#i571cdcfda50247c69152a12c0790d2e9_124)] [added: Assets](#ibc9acfa3cec047e9a0295718c0842bcf_124)] | | | [removed: [72](#i571cdcfda50247c69152a12c0790d2e9_124)] [added: [74](#ibc9acfa3cec047e9a0295718c0842bcf_124)] | | |

| [Note 6: Restructuring and Other [removed: Charges](#i571cdcfda50247c69152a12c0790d2e9_127)] [added: Charges](#ibc9acfa3cec047e9a0295718c0842bcf_127)] | | | [removed: [73](#i571cdcfda50247c69152a12c0790d2e9_127)] [added: [76](#ibc9acfa3cec047e9a0295718c0842bcf_127)] | | |

| [Note 7: Balance Sheet and Other [removed: Details](#i571cdcfda50247c69152a12c0790d2e9_130)] [added: Details](#ibc9acfa3cec047e9a0295718c0842bcf_130)] | | | [removed: [74](#i571cdcfda50247c69152a12c0790d2e9_130)] [added: [77](#ibc9acfa3cec047e9a0295718c0842bcf_130)] | | |

| [Note 8: [removed: Leases](#i571cdcfda50247c69152a12c0790d2e9_136)] [added: Leases](#ibc9acfa3cec047e9a0295718c0842bcf_136)] | | | [removed: [75](#i571cdcfda50247c69152a12c0790d2e9_136)] [added: [78](#ibc9acfa3cec047e9a0295718c0842bcf_136)] | | |

| [Note 9: Financing [removed: Receivables](#i571cdcfda50247c69152a12c0790d2e9_139)] [added: Receivables](#ibc9acfa3cec047e9a0295718c0842bcf_139)] | | | [removed: [77](#i571cdcfda50247c69152a12c0790d2e9_139)] [added: [80](#ibc9acfa3cec047e9a0295718c0842bcf_139)] | | |

| [Note 10: [removed: Investments](#i571cdcfda50247c69152a12c0790d2e9_142)] [added: Investments](#ibc9acfa3cec047e9a0295718c0842bcf_142)] | | | [removed: [79](#i571cdcfda50247c69152a12c0790d2e9_142)] [added: [83](#ibc9acfa3cec047e9a0295718c0842bcf_142)] | | |

| [Note 11: Fair [removed: Value](#i571cdcfda50247c69152a12c0790d2e9_145)] [added: Value](#ibc9acfa3cec047e9a0295718c0842bcf_145)] | | | [removed: [82](#i571cdcfda50247c69152a12c0790d2e9_145)] [added: [85](#ibc9acfa3cec047e9a0295718c0842bcf_145)] | | |

| [Note 12: [removed: Borrowings](#i571cdcfda50247c69152a12c0790d2e9_148)] [added: Borrowings](#ibc9acfa3cec047e9a0295718c0842bcf_148)] | | | [removed: [83](#i571cdcfda50247c69152a12c0790d2e9_148)] [added: [86](#ibc9acfa3cec047e9a0295718c0842bcf_148)] | | |

| [Note 13: Derivative [removed: Instruments](#i571cdcfda50247c69152a12c0790d2e9_151)] [added: Instruments](#ibc9acfa3cec047e9a0295718c0842bcf_151)] | | | [removed: [84](#i571cdcfda50247c69152a12c0790d2e9_151)] [added: [88](#ibc9acfa3cec047e9a0295718c0842bcf_151)] | | |

| [Note 14: Commitments and [removed: Contingencies](#i571cdcfda50247c69152a12c0790d2e9_154)] [added: Contingencies](#ibc9acfa3cec047e9a0295718c0842bcf_154)] | | | [removed: [87](#i571cdcfda50247c69152a12c0790d2e9_154)] [added: [91](#ibc9acfa3cec047e9a0295718c0842bcf_154)] | | |

| [Note 15: Stockholders’ [removed: Equity](#i571cdcfda50247c69152a12c0790d2e9_157)] [added: Equity](#ibc9acfa3cec047e9a0295718c0842bcf_157)] | | | [removed: [90](#i571cdcfda50247c69152a12c0790d2e9_157)] [added: [93](#ibc9acfa3cec047e9a0295718c0842bcf_157)] | | |

| [Note 16: Employee Benefit [removed: Plans](#i571cdcfda50247c69152a12c0790d2e9_160)] [added: Plans](#ibc9acfa3cec047e9a0295718c0842bcf_160)] | | | [removed: [91](#i571cdcfda50247c69152a12c0790d2e9_160)] [added: [94](#ibc9acfa3cec047e9a0295718c0842bcf_160)] | | |

| [Note 17: [added: Accumulated Other] Comprehensive Income [removed: (Loss)](#i571cdcfda50247c69152a12c0790d2e9_163)] [added: (Loss)](#ibc9acfa3cec047e9a0295718c0842bcf_163)] | | | [removed: [94](#i571cdcfda50247c69152a12c0790d2e9_163)] [added: [98](#ibc9acfa3cec047e9a0295718c0842bcf_163)] | | |

| [Note 18: Income [removed: Taxes](#i571cdcfda50247c69152a12c0790d2e9_166)] [added: Taxes](#ibc9acfa3cec047e9a0295718c0842bcf_166)] | | | [removed: [95](#i571cdcfda50247c69152a12c0790d2e9_166)] [added: [99](#ibc9acfa3cec047e9a0295718c0842bcf_166)] | | |

| [Note 19: Segment Information and Major [removed: Customers](#i571cdcfda50247c69152a12c0790d2e9_169)] [added: Customers](#ibc9acfa3cec047e9a0295718c0842bcf_169)] | | | [removed: [98](#i571cdcfda50247c69152a12c0790d2e9_169)] [added: [102](#ibc9acfa3cec047e9a0295718c0842bcf_169)] | | |

| [Note 20: Net Income per [removed: Share](#i571cdcfda50247c69152a12c0790d2e9_172)] [added: Share](#ibc9acfa3cec047e9a0295718c0842bcf_172)] | | | [removed: [99](#i571cdcfda50247c69152a12c0790d2e9_172)] [added: [103](#ibc9acfa3cec047e9a0295718c0842bcf_172)] | | |

We have audited the accompanying consolidated balance sheets of Cisco Systems, Inc. and its subsidiaries (the “Company”) as of July [removed: 29, 2023] [added: 27, 2024] and July [removed: 30, 2022,] [added: 29, 2023,] and the related consolidated statements of operations, of comprehensive income, of equity and of cash flows for each of the three years in the period ended July [removed: 29, 2023,] [added: 27, 2024,] including the related notes (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of July [removed: 29, 2023,] [added: 27, 2024,] 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: 29, 2023] [added: 27, 2024] and July [removed: 30, 2022,] [added: 29, 2023,] and the results of its operations and its cash flows for each of the three years in the period ended July [removed: 29, 2023] [added: 27, 2024] 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: 29, 2023,] [added: 27, 2024,] based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

The critical audit [removed: matter] [added: matters] communicated below [removed: is a matter] [added: are matters] arising from the current period audit of the consolidated financial statements that [removed: was] [added: were] communicated or required to be communicated to the audit committee and that (i) [removed: relates] [added: relate] to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit [removed: matter] [added: matters] below, providing [removed: a] separate [removed: opinion] [added: opinions] on the critical audit [removed: matter] [added: matters] or on the accounts or disclosures to which [removed: it relates.][added: they relate.]

[removed: As described in Note 2 to the consolidated financial statements, management assesses relevant contractual terms in its customer arrangements to determine the transaction price and] [added: The Company] recognizes revenue upon transfer of control of [removed: the] promised goods or services in [added: a contract with a customer in] an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

In [removed: order to determine] [added: certain customer arrangements, management applies judgment in identifying contractual terms and determining] the transaction [removed: price,] [added: price and] management may be required to estimate variable consideration when determining the amount of revenue to recognize.

The principal considerations for our determination that performing procedures relating to [removed: the identification of contractual terms in] [added: revenue recognition for] certain [removed: customer arrangements] [added: product and services revenue] is a critical audit matter are the significant judgment by management in identifying contractual terms [removed: due to the volume] [added: in certain customer arrangements] and [removed: customized nature] [added: a high degree] of [removed: the Company’s customer arrangements.][added: auditor judgment and effort in performing procedures and evaluating audit evidence relating to revenue recognition for certain product and services revenue.]

These procedures included testing the effectiveness of controls relating to the revenue recognition process, including [removed: those related to the identification] [added: obtaining an understanding] of [removed: contractual] [added: management’s process for identifying and evaluating] terms [added: and conditions] in [added: certain] customer arrangements [removed: that impact the] [added: and evaluating management’s] determination of the [removed: transaction price] [added: impact of those terms] and [added: conditions on] revenue recognition.

These procedures also included, among others, [removed: (i) testing] [added: testing, on a sample basis, (a)] the completeness and accuracy of management’s identification [added: and evaluation] of [removed: the contractual] terms [added: and conditions] by examining customer [removed: arrangements on a test basis, and (ii) testing] [added: arrangements; (b)] management’s process for determining the appropriate amount and timing of revenue recognition based on the contractual terms identified in [removed: the] customer [removed: arrangements.][added: arrangements; (c) revenue transactions by obtaining and inspecting source documents, such as contracts, purchase orders, invoices, and proof of delivery; and (d) the timing of recognition of revenue transactions.]

As described in Management’s Report on Internal Control over Financial Reporting, management has excluded Splunk Inc. (“Splunk”) from its assessment of internal control over financial reporting as of July 27, 2024, because it was acquired by the Company in a purchase business combination during 2024.

We have also excluded Splunk from our audit of internal control over financial reporting.

Splunk is a wholly-owned subsidiary whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting represent approximately 3% and 3%, respectively, of the related consolidated financial statement amounts as of and for the year ended July 27, 2024.

*Revenue Recognition for Certain Product and Services Revenue*

As described in Note 2 to the consolidated financial statements, the Company derives revenue from contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations.

For the year ended July 27, 2024, the Company’s total revenue was $53.8 billion, of which the majority relates to certain product and services revenue.

*Acquisition of Splunk — Valuation of Customer Contracts and Related Relationships Asset and the Technology Asset Acquired*

As described in Note 4 to the consolidated financial statements, on March 18, 2024, the Company completed the acquisition of Splunk for total consideration of approximately $27 billion.

The Company acquired $10.6 billion of intangible assets in connection with the acquisition.

Of these acquired intangible assets, $6.1 billion of customer-related assets were recorded, of which the majority relates to customer contracts and related relationships, and $3.9 billion for a technology asset was recorded.

The customer contracts and related relationships asset was valued using the with-and-without method under the income approach.

The technology asset was valued using the multi-period excess earnings method under the income approach.

The present value of projected future cash flows included significant judgment and assumptions regarding projected future revenues, projected expenses, attrition rates, the revenue build up period, and the discount rate for the customer contracts and related relationships asset and projected future revenues, projected expenses, the technology obsolescence rate, and the discount rate for the technology asset.

The principal considerations for our determination that performing procedures relating to the valuation of the customer contracts and related relationships asset and the technology asset acquired in connection with the acquisition of Splunk is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the customer-related and technology assets acquired; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to projected future revenues, projected expenses, attrition rates, the revenue build up period, and the discount rate for the customer contracts and related relationships asset and projected future revenues, projected expenses, the technology obsolescence rate, and the discount rate for the technology asset; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the acquisition accounting, including controls over management’s valuation of the customer contracts and related relationships asset and the technology asset acquired.

These procedures also included, among others, (i) reading the purchase agreement; (ii) testing management’s process for developing the fair value estimate of the customer contracts and related relationships asset and the technology asset; (iii) evaluating the appropriateness of the income approach methods used by management; (iv) testing the completeness and accuracy of the underlying data used in the income approach methods; and (v) evaluating the reasonableness of significant assumptions used by management related to projected future revenues, projected expenses, attrition rates, the revenue build up period, and the discount rate for the customer contracts and related relationships asset and projected future revenues, projected expenses, the technology obsolescence rate, and the discount rate for the technology asset.

Evaluating management’s assumptions related to projected future revenues, projected expenses, attrition rates, the revenue build up period, and the technology obsolescence rate involved considering (i) the current and past performance of Splunk; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit.

Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the income approach methods and (ii) the reasonableness of the discount rate assumptions for the customer contracts and related relationships asset and the technology asset.

In accordance with guidance issued by the Securities and Exchange Commission staff, companies are permitted to exclude acquisitions from their assessment of internal control over financial reporting for a period not to exceed one year from the date of the acquisition.

Management’s assessment of the effectiveness of our internal control over financial reporting as of July 27, 2024 did not include the internal controls of Splunk Inc., which we acquired on March 18, 2024.

We have included the financial results of Splunk Inc. in our Consolidated Financial Statements since the date of acquisition.

Total assets and total revenues of Splunk Inc. represented approximately 3 percent of each of our total consolidated assets and total consolidated revenue as of and for the year ended July 27, 2024.

| September 5, 2024 | | | | | | September 5, 2024 | | |

| Services | | | 4,636 | | | | | | 4,655 | | | | | | 4,495 | | |

| | | | 199 | | | | | | (61) | | | | | | (561) | | |

| | | | 61 | | | | | | (26) | | | | | | 45 | | |

| Repayments of Splunk convertible debt, net of capped call proceeds | | | (3,140) | | | | | | — | | | | | | — | | |

| Net income | | | | | | | | | | | | | | | 10,320 | | | | | | | | | | | | 10,320 | | |

| Repurchase of common stock | | | (117) | | | | | | (1,292) | | | | | | (4,472) | | | | | | | | | | | | (5,764) | | |

| BALANCE AT JULY 27, 2024 | | | 4,007 | | | | | | $ | 45,800 | | | | | $ | 1,087 | | | | | $ | (1,430) | | | | | $ | 45,457 | |

[Table of Conten](#ibc9acfa3cec047e9a0295718c0842bcf_7)[ts](#ibc9acfa3cec047e9a0295718c0842bcf_7)

CISCO SYSTEMS, INC.

Notes to Consolidated Financial Statements (Continued)

Our

[Table of Conten](#ibc9acfa3cec047e9a0295718c0842bcf_7)[ts](#ibc9acfa3cec047e9a0295718c0842bcf_7)

CISCO SYSTEMS, INC.

Notes to Consolidated Financial Statements (Continued)

[Table of Conten](#ibc9acfa3cec047e9a0295718c0842bcf_7)[ts](#ibc9acfa3cec047e9a0295718c0842bcf_7)

CISCO SYSTEMS, INC.

*Revenue recognition — identification of contractual terms in certain customer arrangements*

Management applies judgment in determining the transaction price which is dependent on the contractual terms.

For the year ended July 29, 2023, the Company’s total revenue was $57.0 billion.

This in turn led to significant auditor judgment and effort in performing procedures to evaluate whether the contractual terms used in the determination of the transaction price and the timing of revenue recognition were appropriately identified and determined by management.

| September 7, 2023 | | | | | | September 7, 2023 | | |

| Service | | | 13,856 | | | | | | 13,539 | | | | | | 13,804 | | |

| Service | | | 4,655 | | | | | | 4,495 | | | | | | 4,624 | | |

| | | | (61) | | | | | | (561) | | | | | | (133) | | |

| | | | (26) | | | | | | 45 | | | | | | 5 | | |

| Proceeds from sales of property and equipment | | | 3 | | | | | | 91 | | | | | | 28 | | |

| BALANCE AT JULY 25, 2020 | | | 4,237 | | | | | | $ | 41,202 | | | | | $ | (2,763) | | | | | $ | (519) | | | | | $ | 37,920 | |

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

| Effect of adoption of accounting standard | | | | | | | | | | | | | | | (38) | | | | | | | | | | | | (38) | | |

combine lease and non-lease components.

Term software licenses

*Reference Rate Reform* In March 2020, the Financial Accounting Standards Board issued an accounting standard update and subsequent amendments that provide optional expedients and exceptions to the current guidance on contract modification and hedging relationships to ease the financial reporting burden of the expected market transition from the London InterBank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates.

This accounting standard update was effective upon issuance and may be applied prospectively through December 31, 2024.

We adopted this accounting standard update in fiscal 2023 and it did not have a material impact on our Consolidated Financial Statements upon adoption.

| Secure, Agile Networks | | | $ | 29,105 | | | | | $ | 23,831 | | | | | $ | 22,725 | |

| Internet for the Future | | | 5,306 | | | | | | 5,276 | | | | | | 4,511 | | |

| Optimized Application Experiences | | | 811 | | | | | | 729 | | | | | | 654 | | |

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

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

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

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

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

End-to-End Security consists of our Cloud and Application Security, Industrial Security, Network Security, and User and Device Security 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.

| 1 to 4 | | | $ | 672 | | | | | $ | 414 | |

| 5 to 6 | | | 954 | | | | | | 814 | | |

4.Acquisitions and Divestitures

(a)Acquisition Summary

We completed five acquisitions during fiscal 2023.

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

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

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

In fiscal 2021, we completed 13 acquisitions for total purchase consideration of $7.5 billion.

(b) Other Acquisition and Divestiture Information

The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition.

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 [removed: amended,] [added: amended] (the “Exchange [removed: Act”))] [added: 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 57 under the caption “Management’s Report on Internal Control Over Financial Reporting” and on page [removed: 55] [added: 54] of this report.

There was no change in our internal control over financial reporting during our fourth quarter of fiscal [removed: 2023] [added: 2024] that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

In accordance with guidance issued by the Securities and Exchange Commission staff, companies are permitted to exclude acquisitions from their assessment of internal control over financial reporting for a period not to exceed one year from the date of the acquisition.

Management’s assessment of the effectiveness of our internal control over financial reporting as of July 27, 2024 did not include the internal controls of Splunk, which we acquired on March 18, 2024.

We have included the financial results of Splunk in our Consolidated Financial Statements since the date of acquisition.

Total assets and total revenues of Splunk represented approximately 3 percent of each of our total consolidated assets and total consolidated revenue as of and for the year ended July 27, 2024.

During the fourth quarter of fiscal 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) informed us of the adoption or termination of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” each as defined in Item 408 of Regulation S-K.

On June 13, 2023, Jeff Sharritts, Cisco’s Executive Vice President and Chief Customer and Partner Officer, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.

Mr. Sharritts’ trading plan provides for the sale of 146,825 gross shares (with any shares underlying performance-based equity awards being calculated at target), plus any related dividend-equivalent shares earned with respect to such shares and excluding, as applicable, any shares withheld to satisfy tax withholding obligations in connection with the net settlement of the equity awards.

Mr. Sharritts’ trading plan is scheduled to terminate on June 21, 2024, subject to early termination for certain specified events set forth therein.

The additional information required by this item is included in our Proxy Statement related to the [removed: 2023] [added: 2024] Annual Meeting of Stockholders to be filed with the SEC within 120 days after [removed: September 7, 2023] [added: July 27, 2024] (the “Proxy Statement”) and is incorporated herein by reference.

Insider Trading Arrangements and Policies

We are committed to promoting high standards of ethical business conduct and compliance with applicable laws, rules and regulations.

As part of this commitment, we have adopted an Insider Trading Policy governing transactions in our securities by our directors, employees, contractors, consultants and other personnel providing services to Cisco, as well as by Cisco itself, that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations and The Nasdaq Stock Market listing standards.

The foregoing summary of the Insider Trading Policy does not purport to be complete and is qualified in its entirety by reference to the full text of the Insider Trading Policy attached hereto as Exhibit 19.1.

See the “Index to Consolidated Financial Statements” on page [removed: 54] [added: 53] of this report.

See the “Index to Exhibits” beginning on page [removed: 102] [added: 106] of this report.

| [removed: 4.7] [added: 4.9] | | | | | | [Forms of Global Note for the registrant’s 5.90% Senior Notes due [removed: 2039](http://www.sec.gov/Archives/edgar/data/858877/000119312509030546/dex41.htm)] [added: 2039](https://www.sec.gov/Archives/edgar/data/858877/000119312509030546/dex41.htm)] | | | | | | 8-K | | | | | | 000-18225 | | | | | | 4.1 | | | | | | 2/17/2009 | | | | | | | | |

| [removed: 4.8] [added: 4.10] | | | | | | [Forms of Global Note for the registrant’s 4.45% Senior Notes due 2020 and 5.50% Senior Notes due [removed: 2040](http://www.sec.gov/Archives/edgar/data/858877/000119312509236335/dex41.htm)] [added: 2040](https://www.sec.gov/Archives/edgar/data/858877/000119312509236335/dex41.htm)] | | | | | | 8-K | | | | | | 000-18225 | | | | | | 4.1 | | | | | | 11/17/2009 | | | | | | | | |

| [removed: 4.9] [added: 4.11] | | | | | | [Form of Officer’s Certificate setting forth the terms of the Fixed and Floating [removed: Rate] Notes issued in [removed: March 2014](http://www.sec.gov/Archives/edgar/data/858877/000119312514079163/d683411dex42.htm)] [added: June 2015](https://www.sec.gov/Archives/edgar/data/858877/000119312515227387/d945296dex41.htm)] | | | | | | 8-K | | | | | | 000-18225 | | | | | | [removed: 4.2] [added: 4.1] | | | | | | [removed: 3/3/2014] [added: 6/18/2015] | | | | | | | | |

| [removed: 4.10] [added: 4.12] | | | | | | [Form of Officer’s Certificate setting forth the terms of the Fixed and Floating Notes issued in [removed: June 2015](http://www.sec.gov/Archives/edgar/data/858877/000119312515227387/d945296dex41.htm)] [added: February 2016](https://www.sec.gov/Archives/edgar/data/858877/000119312516483780/d150284dex41.htm)] | | | | | | 8-K | | | | | | 000-18225 | | | | | | 4.1 | | | | | | [removed: 6/18/2015] [added: 2/29/2016] | | | | | | | | |

| [removed: 4.11] [added: 4.13] | | | | | | [Form of Officer’s Certificate setting forth the terms of the Fixed and Floating Notes issued in [removed: February 2016](http://www.sec.gov/Archives/edgar/data/858877/000119312516483780/d150284dex41.htm)] [added: September 2016](https://www.sec.gov/Archives/edgar/data/858877/000119312516714189/d229817dex41.htm)] | | | | | | 8-K | | | | | | 000-18225 | | | | | | 4.1 | | | | | | [removed: 2/29/2016] [added: 9/20/2016] | | | | | | | | |

| [removed: 4.13] [added: 4.14] | | | | | | [Description of Registrant’s Securities](https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/exh413descriptionofsecurit.htm) | | | | | | 10-K | | | | | | 001-39940 | | | | | | 4.13 | | | | | | 9/9/2021 | | | | | | | | |

| 10.1* | | | | | | [Cisco Systems, Inc. 2005 Stock Incentive Plan (including related form [removed: agreements)](https://www.sec.gov/Archives/edgar/data/858877/000085887723000023/exh101ciscosip2005q423.htm)] [added: agreements)](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh101ciscosip2005q424.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 10.4* | | | | | | [Cisco Systems, Inc. Executive Incentive [removed: Plan](http://www.sec.gov/Archives/edgar/data/858877/000119312517367515/d468248dex102.htm)] [added: Plan](https://www.sec.gov/Archives/edgar/data/858877/000119312517367515/d468248dex102.htm)] | | | | | | 8-K | | | | | | 000-18225 | | | | | | 10.2 | | | | | | 12/12/2017 | | | | | | | | |

| [removed: 10.6] [added: 10.6†] | | | | | | [removed: [First Amendment to Second] [added: [Third] Amended and Restated Credit Agreement, dated as of [removed: April 18, 2023,] [added: February 2, 2024,] by and among Cisco Systems, Inc., certain lenders party thereto, and Bank of America, N.A., as [removed: administration] [added: administrative] agent, swing line [removed: lender,] [added: lender] and [removed: L/C issuer](https://www.sec.gov/Archives/edgar/data/858877/000085887723000013/exh101cscocreditagreement.htm)] [added: letter of credit issuer](https://www.sec.gov/Archives/edgar/data/858877/000119312524028353/d759983dex101.htm)] | | | | | | [removed: 10-Q] [added: 8-K] | | | | | | 001-39940 | | | | | | 10.1 | | | | | | [removed: 5/24/2023] [added: 2/8/2024] | | | | | | | | |

| [removed: 10.7] [added: 10.7*] | | | | | | [removed: [Commercial Paper Issuing and Paying Agent] [added: [Letter] Agreement, dated [removed: September 29, 2022, by and] [added: May 15, 2024,] between Cisco [removed: Systems, Inc.] and [removed: Citibank, N.A.](https://www.sec.gov/Archives/edgar/data/858877/000085887722000018/exh101-usipaagreement.htm)] [added: Gary Steele](https://www.sec.gov/Archives/edgar/data/858877/000119312524139371/d826117dex101.htm)] | | | | | | 8-K | | | | | | 001-39940 | | | | | | 10.1 | | | | | | [removed: 10/4/2022] [added: 5/15/2024] | | | | | | | | |

| 10.9* | | | | | | [removed: [Letter] [added: [Separation] Agreement [added: and General Release,] by and between Cisco Systems, Inc. and [removed: Dev Stahlkopf](https://www.sec.gov/Archives/edgar/data/858877/000085887722000025/exh104letteragreementstahl.htm)] [added: Jeff Sharritts](https://www.sec.gov/Archives/edgar/data/858877/000085887724000012/exhibit101.htm)] | | | | | | [removed: 10-Q] [added: 8-K] | | | | | | 001-39940 | | | | | | [removed: 10.4] [added: 10.1] | | | | | | [removed: 11/22/2022] [added: 7/19/2024] | | | | | | | | |

| 21.1 | | | | | | [Subsidiaries of the [removed: Registrant](https://www.sec.gov/Archives/edgar/data/858877/000085887723000023/exh211subsidiariesofthereg.htm)] [added: Registrant](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh211subsidiariesofthereg.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 23.1 | | | | | | [Consent of Independent Registered Public Accounting [removed: Firm](https://www.sec.gov/Archives/edgar/data/858877/000085887723000023/exh231consentofindependent.htm)] [added: Firm](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh231consentofindependent.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 24.1 | | | | | | [Power of Attorney (included on page [removed: 104] [added: 108] of this Annual Report on Form [removed: 10-K)](#i571cdcfda50247c69152a12c0790d2e9_217)] [added: 10-K)](#ibc9acfa3cec047e9a0295718c0842bcf_220)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 31.1 | | | | | | [Rule 13a–14(a)/15d–14(a) Certification of Principal Executive [removed: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887723000023/exh311rule13a-14a15dx14ace.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/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/858877/000085887723000023/exh312rule13a-14a15dx14ace.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh312rule13a-14a15dx14ace.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 32.1 | | | | | | [Section 1350 Certification of Principal Executive [removed: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887723000023/exh321section1350certifica.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh321section1350certifica.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 32.2 | | | | | | [Section 1350 Certification of Principal Financial [removed: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887723000023/exh322section1350certifica.htm)] [added: Officer](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh322section1350certifica.htm)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 2.1 | | | | | | [Agreement and Plan of Merger, dated as of September 20, 2023, by and among Cisco Systems, Inc., Spirit Merger Corp. and Splunk Inc.](https://www.sec.gov/Archives/edgar/data/858877/000119312523239165/d464532dex21.htm) | | | | | | 8-K | | | | | | 001-39940 | | | | | | 2.1 | | | | | | 9/21/2023 | | | | | | | | |

| 4.7 | | | | | | [Indenture, dated as of February 26, 2024, between Cisco Systems, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee](https://www.sec.gov/Archives/edgar/data/858877/000119312524046231/d751183dex41.htm) | | | | | | 8-K | | | | | | 001-39940 | | | | | | 4.1 | | | | | | 2/26/2024 | | | | | | | | |

| 4.8 | | | | | | [First Supplemental Indenture, dated as of February 26, 2024, between Cisco Systems, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, for 4.900% Senior Notes due 2026, 4.800% Senior Notes due 2027, 4.850% Senior Notes due 2029, 4.950% Senior Notes due 2031, 5.050% Senior Notes due 2034, 5.300% Senior Notes due 2054 and 5.350% Senior Notes due 2064](https://www.sec.gov/Archives/edgar/data/858877/000119312524046231/d751183dex42.htm) | | | | | | 8-K | | | | | | 001-39940 | | | | | | 4.2 | | | | | | 2/26/2024 | | | | | | | | |

| 10.8* | | | | | | [Separation Agreement and General Release, by and between Cisco Systems, Inc. and Maria Martinez](https://www.sec.gov/Archives/edgar/data/858877/000085887724000007/exh102mariamartinezseparat.htm) | | | | | | 10-Q | | | | | | 001-39940 | | | | | | 10.2 | | | | | | 5/21/2024 | | | | | | | | |

| 19.1 | | | | | | [Insider Trading Policy](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh191insidertradingpolicy.htm) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 97.1 | | | | | | [Compensation Recovery Policy](https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/exh971compensationrecovery.htm) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| † | | | Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). Cisco agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request. | | |

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

| 4.12 | | | | | | [Form of Officer’s Certificate setting forth the terms of the Fixed and Floating Notes issued in September 2016](http://www.sec.gov/Archives/edgar/data/858877/000119312516714189/d229817dex41.htm) | | | | | | 8-K | | | | | | 000-18225 | | | | | | 4.1 | | | | | | 9/20/2016 | | | | | | | | |

| 10.8 | | | | | | [Form of Amendment to Commercial Paper Dealer Agreement](https://www.sec.gov/Archives/edgar/data/858877/000085887722000018/exh102-formofdealeragreeme.htm) | | | | | | 8-K | | | | | | 001-39940 | | | | | | 10.2 | | | | | | 10/4/2022 | | | | | | | | |

| September [removed: 7, 2023] [added: 5, 2024] | | | | | | | | | | | | CISCO SYSTEMS, INC. | | |

| /S/ CHARLES H. ROBBINS | | | Chair and Chief Executive Officer | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ R. SCOTT HERREN | | | Executive Vice President and Chief Financial Officer | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ M. VICTORIA WONG | | | Senior Vice President and Chief Accounting Officer | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ WESLEY G. BUSH | | | Director | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ MICHAEL D. CAPELLAS | | | Lead Independent Director | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ MARK GARRETT | | | Director | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ JOHN D. HARRIS II | | | Director | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ KRISTINA M. JOHNSON | | | Director | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ SARAH RAE MURPHY | | | Director | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ MARIANNA TESSEL | | | Director | | | September [removed: 7, 2023] [added: 5, 2024] | | |

| /S/ DANIEL H. SCHULMAN | | | Director | | | September 5, 2024 | | |

| Daniel H. Schulman | | | | | | | | |

| /S/ EKTA SINGH-BUSHELL | | | Director | | | September 5, 2024 | | |

| Ekta Singh-Bushell | | | | | | | | |

| | | | | | | | | |

| /S/ M. MICHELE BURNS | | | Director | | | September 7, 2023 | | |

| M. Michele Burns | | | | | | | | |

| /S/ RODERICK C. MCGEARY | | | Director | | | September 7, 2023 | | |

| Roderick C. McGeary | | | | | | | | |

| /S/ LISA T. SU | | | Director | | | September 7, 2023 | | |

| Dr. Lisa T. Su | | | | | | | | |