Cisco 2015 Annual Report Download - page 64
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Effect of Foreign Currency
In fiscal 2015, foreign currency fluctuations, net of hedging, decreased the combined R&D, sales and marketing, and G&A
expenses by approximately $278 million, or 1.6%, compared with fiscal 2014. In fiscal 2014, foreign currency fluctuations, net of
hedging, decreased the combined R&D, sales and marketing, and G&A expenses by approximately $153 million, or 0.9%,
compared with fiscal 2013.
Headcount
Fiscal 2015 Compared with Fiscal 2014
The decrease in headcount of approximately 2,200 employees in fiscal 2015 was due to headcount reductions from attrition and
from our restructuring plan announced in August 2014. These headcount reductions were partially offset by headcount additions
from targeted hiring in engineering and services, and also by headcount additions from our recent acquisitions.
Fiscal 2014 Compared with Fiscal 2013
Our headcount decreased by approximately 1,000 employees in fiscal 2014. The decrease was due to headcount reductions from
attrition and from our workforce reduction plan announced in August 2013. These headcount reductions were partially offset by
the increase in headcount from targeted hiring in engineering, services, sales, and also by increased headcount from our recent
acquisitions.
Share-Based Compensation Expense
The following table presents share-based compensation expense (in millions):
Years Ended July 25, 2015 July 26, 2014 July 27, 2013
Cost of sales—product ......................................................... $50$45$40
Cost of sales—service .......................................................... 157 150 138
Share-based compensation expense in cost of sales .............................. 207 195 178
Research and development ..................................................... 448 411 286
Sales and marketing ............................................................ 559 549 484
General and administrative ..................................................... 228 198 175
Restructuring and other charges ................................................. (2) (5) (3)
Share-based compensation expense in operating expenses ....................... 1,233 1,153 942
Total share-based compensation expense ....................................... $ 1,440 $ 1,348 $ 1,120
The increase in share-based compensation expense for fiscal 2015, as compared with fiscal 2014, was due primarily to higher
expense associated with performance-based restricted stock units and charges associated with severance arrangements with
certain executives, partially offset by lower expense related to equity awards assumed with respect to our recent acquisitions.
The increase in share-based compensation expense for fiscal 2014, as compared with fiscal 2013, was due primarily to
share-based compensation expense attributable to equity awards assumed with respect to our recent acquisitions and higher
forfeiture credits in fiscal 2013.
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