Cisco 2014 Annual Report Download - page 130

Supplementary Financial Data (Unaudited)
(in millions, except per-share amounts)
Quarters Ended July 26, 2014 April 26, 2014 January 25, 2014 (1) October 26, 2013
Revenue ........................................... $12,357 $11,545 $11,155 $12,085
Gross margin ...................................... $ 7,405 $ 7,006 $ 5,951 $ 7,407
Operating income ................................... $ 2,681 $ 2,542 $ 1,667 $ 2,455
Net income ........................................ $ 2,247 $ 2,181 $ 1,429 $ 1,996
Net income per share—basic .......................... $ 0.44 $ 0.42 $ 0.27 $ 0.37
Net income per share—diluted ........................ $ 0.43 $ 0.42 $ 0.27 $ 0.37
Cash dividends declared per common share ............. $ 0.19 $ 0.19 $ 0.17 $ 0.17
Cash and cash equivalents and investments ............. $52,074 $50,469 $47,065 $48,201
Quarters Ended July 27, 2013 April 27, 2013 January 26, 2013 (2) October 27, 2012
Revenue ............................................. $12,417 $12,216 $12,098 $11,876
Gross margin ......................................... $ 7,347 $ 7,511 $ 7,343 $ 7,239
Operating income ..................................... $ 2,814 $ 2,942 $ 2,789 $ 2,651
Net income .......................................... $ 2,270 $ 2,478 $ 3,143 $ 2,092
Net income per share—basic ............................. $ 0.42 $ 0.47 $ 0.59 $ 0.39
Net income per share—diluted ........................... $ 0.42 $ 0.46 $ 0.59 $ 0.39
Cash dividends declared per common share ................. $ 0.17 $ 0.17 $ 0.14 $ 0.14
Cash and cash equivalents and investments ................. $50,610 $47,388 $46,376 $45,000
(1) In the second quarter of fiscal 2014, the Company recorded a pre-tax charge of $655 million to product cost of sales, which corresponds to $526 million,
net of tax, for the expected remediation cost for certain products sold in prior fiscal years containing memory components manufactured by a single
supplier between 2005 and 2010. See Note 12(f) to the Consolidated Financial Statements.
(2) In the second quarter of fiscal 2013, the IRS and the Company settled all outstanding items related to the Company’s federal income tax returns for the
fiscal years ended July 27, 2002 through July 28, 2007. As a result of the settlement, the Company recorded a net tax benefit of $794 million. Also during
the three months ended January 26, 2013, the American Taxpayer Relief Act of 2012 reinstated the U.S. federal R&D tax credit, retroactive to January 1,
2012. As a result of the credit, the Company recognized tax benefits of $184 million in fiscal 2013, of which $72 million related to fiscal 2012 R&D
expenses.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Based on our management’s evaluation (with the participation of our principal executive officer and principal financial
officer), as of the end of the period covered by this report, our principal executive officer and principal financial officer have
concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934, as amended, (the “Exchange Act”)) are effective to ensure that information required to be disclosed by
us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time
periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to our
management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions
regarding required disclosure.
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