Cisco 2011 Annual Report Download - page 41

may materially adversely affect the market price of our common stock in the future. Additionally, volatility, lack
of positive performance in our stock price or changes to our overall compensation program, including our stock
incentive program, may adversely affect our ability to retain key employees, virtually all of whom are
compensated, in part, based on the performance of our stock price.
THERE CAN BE NO ASSURANCE THAT OUR OPERATING RESULTS AND FINANCIAL
CONDITION WILL NOT BE ADVERSELY AFFECTED BY OUR INCURRENCE OF DEBT
We have senior unsecured notes outstanding in an aggregate principal amount of $16.0 billion that mature at
specific dates in 2014, 2016, 2017, 2019, 2020, 2039 and 2040. We have also established a commercial paper
program under which we may issue short-term, unsecured commercial paper notes on a private placement basis
up to a maximum aggregate amount outstanding at any time of $3 billion, and had commercial paper notes
outstanding in an aggregate principal amount of $500 million as of July 30, 2011. The outstanding senior
unsecured notes bear fixed-rate interest payable semiannually, except $1.25 billion of the notes which bears
interest at a floating rate payable quarterly. The fair value of the long-term debt is subject to market interest rate
volatility. The instruments governing the senior unsecured notes contain certain covenants applicable to us and
our subsidiaries that may adversely affect our ability to incur certain liens or engage in certain types of sale and
leaseback transactions. In addition, we will be required to have available in the United States sufficient cash to
repay all of our notes on maturity. There can be no assurance that our incurrence of this debt or any future debt
will be a better means of providing liquidity to us than would our use of our existing cash resources, including
cash currently held offshore. Further, we cannot be assured that our maintenance of this indebtedness or
incurrence of future indebtedness will not adversely affect our operating results or financial condition. In
addition, changes by any rating agency to our credit rating can negatively impact the value and liquidity of both
our debt and equity securities, as well as the terms upon which we may borrow under our commercial paper
program.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
Our headquarters are located at an owned site in San Jose, California. In addition to this site, we own certain sites
in the United States, which include facilities in the surrounding areas of San Jose, California; Boston,
Massachusetts; Richardson, Texas; Lawrenceville, Georgia; and Research Triangle Park, North Carolina. We
also own land for expansion in some of these locations. In addition, we lease office space in several U.S.
locations.
Outside the United States our operations are conducted primarily in leased sites, such as our Globalisation Centre
East campus in Bangalore, India. Other significant sites are located in Australia, Belgium, China, Germany,
India, Israel, Italy, Japan, Norway, and the United Kingdom.
We believe that our existing facilities, including both owned and leased, are in good condition and suitable for
the conduct of our business.
For additional information regarding obligations under operating leases, see Note 12 to the Consolidated
Financial Statements. For additional information regarding properties by operating segment, see Note 16 to the
Consolidated Financial Statements.
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