Cisco 2002 Annual Report Download - page 2

This report is dedicated to the memory of Suzanne Calley,
a member of Cisco’s team who was on American Airlines Flight 77
on September 11, 2001.
This Annual Report contains forward-looking statements regarding future events and the future results of Cisco that are based on current expectations, estimates, forecasts, and projections about the industries in
which Cisco operates, and the beliefs and assumptions of the management of Cisco. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to
risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statement. Readers are referred to the
documents filed by Cisco with the Securities and Exchange Commission, specifically the most recent reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time, which identify impor-
tant risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including: economic and market conditions; overall information technology spending;
fluctuations in customer demand for products and services; the timing and size of orders and manufacturing lead times; difficulty in predicting our revenues; maintaining appropriate levels of inventory and
purchase commitments; variations in the mix of products and services sold; ability to achieve targeted costs reductions; increased competition in the networking and communications industries; ability to introduce
and achieve market acceptance of new technologies, products and standards; rapid changes in technology and the markets; disruption of or changes in the product distribution model or customer base; product
defects and returns; availability of components and manufacturing capacity; entrance into new or developing markets; ability to integrate and operate acquired businesses and technologies; increasing customer
credit risk; rate of growth of the Internet and Internet-based systems; factors arising from international operations, including currency fluctuations; timing and amount of employer payroll tax to be paid
on employees’ gains on stock options exercised; changes in accounting rules; protection and validity of patents and other intellectual property rights; litigation involving securities, intellectual property and other
matters; and ability to retain and recruit key personnel, among others. Cisco undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Table of Contents
Financial Highlights 1
Letter to Shareholders 2
People, Productivity, and the Network 6
Management’s Statement of Financial Responsibility 12
Selected Financial Data 13
Management’s Discussion and Analysis of 14
Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures 23
about Market Risk
Consolidated Statements of Operations 25
Consolidated Balance Sheets 26
Consolidated Statements of Cash Flows 27
Consolidated Statements of Shareholders’ Equity 28
Notes to Consolidated Financial Statements 29
Report of Independent Accountants 48
Supplementary Financial Data and 49
Stock Market Information
Shareholder Information 50