Cisco 2012 Annual Report Download - page 43

transactions, or any difficulties associated with such transactions, by us or our current or potential competitors,
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. We had no commercial paper notes
outstanding under this program as of July 28, 2012. 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 corporate headquarters are located at an owned site in San Jose, California, in the United States of America.
The locations of our headquarters by geographic segment are as follows:
Americas EMEA APJC
San Jose, California, USA Amsterdam, Netherlands Singapore
In addition to our headquarters site, we own additional 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 many 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 (in addition to the headquarters locations) 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.
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