Shareholders’ Equity
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(a) | Cash Dividends on Shares of Common Stock |
During fiscal 2013, the Company declared and paid cash dividends of $0.62 per common share, or $3.3 billion, on the Company’s outstanding common stock. During fiscal 2012, the Company declared and paid cash dividends of $0.28 per common share, or $1.5 billion, on the Company’s outstanding common stock.
On September 3, 2013, the Company’s Board of Directors declared a quarterly dividend of $0.17 per common share to be paid on October 23, 2013 to all shareholders of record as of the close of business on October 3, 2013. Any future dividends will be subject to the approval of the Company’s Board of Directors.
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(b) | Stock Repurchase Program |
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of July 27, 2013, the Company’s Board of Directors had authorized an aggregate repurchase of up to $82 billion of common stock under this program, and the remaining authorized repurchase amount was $3.1 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):
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| | | | | | | | | | |
| Shares Repurchased | | Weighted- Average Price per Share | | Amount Repurchased |
Cumulative balance at July 30, 2011 | 3,478 |
| | $ | 20.64 |
| | $ | 71,773 |
|
Repurchase of common stock under the stock repurchase program | 262 |
| | 16.64 |
| | 4,360 |
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Cumulative balance at July 28, 2012 | 3,740 |
| | $ | 20.36 |
| | $ | 76,133 |
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Repurchase of common stock under the stock repurchase program | 128 |
| | 21.63 |
| | 2,773 |
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Cumulative balance at July 27, 2013 | 3,868 |
| | $ | 20.40 |
| | $ | 78,906 |
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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.
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(c) | Other Repurchases of Common Stock |
For the years ended July 27, 2013 and July 28, 2012, the Company repurchased approximately 16 million and 12 million shares, or $330 million and $200 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units.
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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(e) | Accumulated Other Comprehensive Income |
The components of AOCI, net of tax, and other comprehensive income (loss), excluding noncontrolling interest, are summarized as follows (in millions):
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| | | | | | | | | | | | | | | |
| Net Unrealized Gains on Investments | | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | | Cumulative Translation Adjustment and Other | | Accumulated Other Comprehensive Income |
BALANCE AT JULY 31, 2010 | $ | 333 |
| | $ | 27 |
| | $ | 263 |
| | $ | 623 |
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Other comprehensive income (loss) attributable to Cisco Systems, Inc. | 154 |
| | (21 | ) | | 538 |
| | 671 |
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BALANCE AT JULY 30, 2011 | 487 |
| | 6 |
| | 801 |
| | 1,294 |
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Other comprehensive income (loss) attributable to Cisco Systems, Inc. | (78 | ) | | (59 | ) | | (496 | ) | | (633 | ) |
BALANCE AT JULY 28, 2012 | 409 |
| | (53 | ) | | 305 |
| | 661 |
|
Other comprehensive income (loss) attributable to Cisco Systems, Inc. | (30 | ) | | 61 |
| | (84 | ) | | (53 | ) |
BALANCE AT JULY 27, 2013 | $ | 379 |
| | $ | 8 |
| | $ | 221 |
| | $ | 608 |
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