Cisco 2006 Annual Report Download - page 43

46 Cisco Systems, Inc.
Shares of
Common
Stock
Common Stock
and
Additional
Paid-In Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income
Total
Shareholders’
Equity
BALANCE AT JULY 26, 2003 6,998 $ 21,116 $ 6,559 $ 354 $ 28,029
Net income — — 4,401 — 4,401
Change in unrealized gains and losses on investments, net of tax — — — (161) (161)
Other — — — 19 19
Comprehensive income 4,259
Issuance of common stock 122 1,257 — — 1,257
Repurchase of common stock (408) (1,284) (7,796) — (9,080)
Tax benefits from employee stock option plans — 537 — — 537
Purchase acquisitions — 6 — — 6
Stock-based compensation expense related to acquisitions and investments — 244 — — 244
Cumulative effect of accounting change, net of tax — 567 — — 567
Acquisition of Andiamo Systems, Inc. 23 7 — — 7
BALANCE AT JULY 31, 2004 6,735 $ 22,450 $ 3,164 $ 212 $ 25,826
Net income — — 5,741 — 5,741
Change in unrealized gains and losses on investments, net of tax — — — 52 52
Other — — — 10 10
Comprehensive income 5,803
Issuance of common stock 112 1,087 — — 1,087
Repurchase of common stock (540) (1,836) (8,399) — (10,235)
Tax benefits from employee stock option plans — 35 — — 35
Purchase acquisitions 24 504 — — 504
Stock-based compensation expense related to acquisitions and investments — 154 — — 154
BALANCE AT JULY 30, 2005 6,331 $ 22,394 $ 506 $ 274 $ 23,174
Net income — — 5,580 — 5,580
Change in unrealized gains and losses on investments, net of tax — — — (63) (63)
Other — — — 61 61
Comprehensive income 5,578
Issuance of common stock 162 1,682 — — 1,682
Repurchase of common stock (435) (1,592) (6,703) — (8,295)
Tax benefits from employee stock option plans — 454 — — 454
Purchase acquisitions 1 188 — — 188
Stock-based compensation expense related to employee stock
options and employee stock purchases — 1,044 — — 1,044
Stock-based compensation expense related to acquisitions
and investments — 87 — — 87
BALANCE AT JULY 29, 2006 6,059 $ 24,257 $ (617) $ 272 $ 23,912
Supplemental Information
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of July 29, 2006, the Company’s Board of Directors has authorized an
aggregate repurchase of up to $40 billion of common stock under this program. For additional information regarding stock repurchases, see Note 9 to the Consolidated
Financial Statements. The purchase price of shares of common stock repurchased was reected as (i) a reduction to retained earnings until retained earnings are zero
and then as an increase to accumulated decit and (ii) a reduction of common stock and additional paid-in capital. Issuance of common stock and the tax benet related
to employee stock option plans are recorded in shareholders’ equity as an increase to common stock and additional paid-in capital. The stock repurchases since the
inception of this program are summarized in the table below (in millions):
Shares of
Common
Stock
Common Stock
and
Additional
Paid-In Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income
Total
Shareholders’
Equity
Repurchases of common stock 1,931 $ 6,294 $ 29,154 $ — $ 35,448
See Notes to Consolidated Financial Statements.
Consolidated Statements of Shareholders’ Equity
(in millions)