Cisco 2014 Annual Report Download - page 74

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We provide financing guarantees, which are generally for various third-party financing arrangements extended to our channel
partners and end-user customers. We could be called upon to make payments under these guarantees in the event of
nonpayment by the channel partners or end-user customers. See the previous discussion of these financing guarantees under
“Financing Receivables and Guarantees.”
Securities Lending
We periodically engage in securities lending activities with certain of our available-for-sale investments. These transactions
are accounted for as a secured lending of the securities, and the securities are typically loaned only on an overnight basis. The
average daily balance of securities lending for fiscal 2014 and 2013 was $1.5 billion and $0.7 billion, respectively. We require
collateral equal to at least 102% of the fair market value of the loaned security and that the collateral be in the form of cash or
liquid, high-quality assets. We engage in these secured lending transactions only with highly creditworthy counterparties, and
the associated portfolio custodian has agreed to indemnify us against collateral losses. As of July 26, 2014 and July 27, 2013,
we had no outstanding securities lending transactions. We believe these arrangements do not present a material risk or impact
to our liquidity requirements.
Liquidity and Capital Resource Requirements
Based on past performance and current expectations, we believe our cash and cash equivalents, investments, cash generated
from operations, and ability to access capital markets and committed credit lines will satisfy, through at least the next 12
months, our liquidity requirements, both in total and domestically, including the following: working capital needs, capital
expenditures, investment requirements, stock repurchases, cash dividends, contractual obligations, commitments, principal and
interest payments on debt, future customer financings, and other liquidity requirements associated with our operations. There
are no other transactions, arrangements, or relationships with unconsolidated entities or other persons that are reasonably likely
to materially affect the liquidity and the availability of, as well as our requirements for, capital resources.
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