Cisco 2015 Annual Report Download - page 74

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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 2015 and 2014 was $0.4 billion and $1.5 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 25, 2015 and July 26, 2014, 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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