Cisco 2002 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2002 Cisco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 54

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54

Notes to Consolidated Financial Statements
44 Cisco Systems, Inc. 2002 Annual Report
In addition, the Plan provides for discretionary profit sharing contributions as determined by the Board of Directors. Such
contributions to the Plan are allocated among eligible participants in the proportion of their salaries to the total salaries of all
participants. There were no discretionary profit sharing contributions made in fiscal 2002, 2001, or 2000. In fiscal 2002, the Plan
provided for a one-time discretionary matching contribution of $11 million based on $500 per eligible employee.
11. Income Taxes
The provision for income taxes consisted of the following (in millions):
Years Ended July 27, 2002 July 28, 2001 July 29, 2000
Federal:
Current $ 929 $ 581 $ 1,843
Deferred (480) (697) (652)
449 (116) 1,191
State:
Current 117 157 282
Deferred (68) (199) (118)
49 (42) 164
Foreign:
Current 344 326 332
Deferred (25) (28) (12)
319 298 320
Total $ 817 $ 140 $ 1,675
The Company paid income taxes of $909 million, $48 million, and $327 million in fiscal 2002, 2001, and 2000, respectively.
Income (loss) before provision for income taxes consisted of the following (in millions):
Years Ended July 27, 2002 July 28, 2001 July 29, 2000
United States $ 1,550 $(1,727) $ 2,544
International 1,160 853 1,799
Total $ 2,710 $ (874) $ 4,343
The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income
taxes consisted of the following:
Years Ended July 27, 2002 July 28, 2001 July 29, 2000
Federal statutory rate 35.0% (35.0)% 35.0%
Effect of:
State taxes, net of federal tax benefit 1.8 (2.4) 1.9
Foreign sales corporation (1.5) (1.8) (1.9)
Foreign income at other than U.S. rates (4.9) (1.7) (1.6)
Nondeductible in-process R&D 0.9 30.3 7.6
Nondeductible goodwill –20.9 0.5
Nondeductible deferred stock-based compensation 1.9 8.0 –
Tax-exempt interest –(1.0) (1.8)
Tax credits (3.4) (2.5) (1.6)
Other, net 0.3 1.2 0.5
Total 30.1% 16.0% 38.6%