Cisco 2015 Annual Report Download - page 117

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13. Shareholders’ Equity
(a) Cash Dividends on Shares of Common Stock
During fiscal 2015, the Company declared and paid cash dividends of $0.80 per common share, or $4.1 billion, on the Company’s
outstanding common stock. During fiscal 2014, the Company declared and paid cash dividends of $0.72 per common share, or
$3.8 billion, on the Company’s outstanding common stock.
Any future dividends will be subject to the approval of the Company’s Board of Directors.
(b) Stock Repurchase Program
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of July 25, 2015, the
Company’s Board of Directors had authorized an aggregate repurchase of up to $97 billion of common stock under this program,
and the remaining authorized repurchase amount was $4.3 billion, with no termination date. A summary of the stock repurchase
activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-
share amounts):
Shares
Repurchased
Weighted-
Average Price
per Share
Amount
Repurchased
Cumulative balance at July 27, 2013 ............................................ 3,868 $ 20.40 $ 78,906
Repurchase of common stock under the stock repurchase program (1) ........... 420 22.71 9,539
Cumulative balance at July 26, 2014 .......................................... 4,288 20.63 88,445
Repurchase of common stock under the stock repurchase program (2) ....... 155 27.22 4,234
Cumulative balance at July 25, 2015 .......................................... 4,443 $ 20.86 $ 92,679
(1) Includes stock repurchases of $126 million, which were pending settlement as of July 26, 2014.
(2) Includes stock repurchases of $36 million, which were pending settlement as of July 25, 2015.
The purchase price for the shares of the Company’s stock repurchased is reflected as a reduction to shareholders’ equity. The
Company is required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings and (ii) a
reduction of common stock and additional paid-in capital. Issuance of common stock and the tax benefit related to employee
stock incentive plans are recorded as an increase to common stock and additional paid-in capital.
(c) Restricted Stock Unit Withholdings
For the years ended July 25, 2015 and July 26, 2014, the Company repurchased approximately 20 million and 18 million shares,
or $502 million and $430 million, of common stock, respectively, in settlement of employee tax withholding obligations due
upon the vesting of restricted stock or stock units.
(d) Preferred Stock
Under the terms of the Company’s Articles of Incorporation, the Board of Directors may determine the rights, preferences, and
terms of the Company’s authorized but unissued shares of preferred stock.
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