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Cisco Systems, Inc. 2002 Annual Report 37
6. Lease Receivables, Net
Lease receivables represent sales-type and direct-financing leases resulting from the sale of the Company’s and complementary
third-party products and services. These lease arrangements typically have terms from two to three years and are usually collateral-
ized by a security interest in the underlying assets. The net lease receivables are summarized as follows (in millions):
July 27, 2002 July 28, 2001
Gross lease receivables $ 1,214 $ 1,554
Unearned income and other reserves (936) (896)
Total 278 658
Less, current portion (239) (405)
Non-current lease receivables, net $39 $ 253
Contractual maturities of the gross lease receivables at July 27, 2002 were $613 million in fiscal 2003, $348 million in fiscal 2004,
$234 million in fiscal 2005, and $19 million in fiscal 2006. Actual cash collections may differ from the contractual maturities
due to early customer buyouts or refinancings.
7. Investments
The following tables summarize the Company’s investments (in millions):
Gross Gross
Amortized Unrealized Unrealized Fair
July 27, 2002 Cost Gains Losses Value
U.S. government notes and bonds $ 4,346 $122 $ (1) $ 4,467
Corporate notes and bonds 6,819 127 (8) 6,938
Corporate equity securities 851 71 (355) 567
Total $12,016 $320 $ (364) $11,972
Reported as:
Short-term investments $ 3,172
Investments 8,800
Total $ 11,972
Gross Gross
Amortized Unrealized Unrealized Fair
July 28, 2001 Cost Gains Losses Value
U.S. government notes and bonds $ 4,426 $ 92 $ (1) $ 4,517
State, municipal, and county
government notes and bonds 54 – – 54
Corporate notes and bonds 7,430 118 (4) 7,544
Corporate equity securities 1,993 320 (784) 1,529
Total $13,903 $530 $ (789) $ 13,644
Reported as:
Short-term investments $ 2,034
Investments 10,346
Restricted investments 1,264
Total $ 13,644