CISCO SYSTEMS INC by linzhengnd

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									CISCO SYSTEMS INC
10-K
09/18/2006

CISCO SYSTEMS, INC.




                 California                       77-0059951
      (State or other jurisdiction of           (IRS Employer
       incorporation or organization)        Identification No.)

           170 West Tasman Drive                 95134-1706
            San Jose, California
  (Address of principal executive offices)       (Zip Code)


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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




  PART I
Item 1.             Business                                          1
                    General                                           1
                    Products and Services                             1
                    Customers and Markets                             5
                    Sales Overview                                    6
                    Backlog                                           6
                    Acquisitions, Investments, and Alliances          7
                    Competition                                       7
                    Research and Development                          8
                    Manufacturing                                     9
                    Patents, Intellectual Property, and Licensing     9
                    Employees                                        10
Item 1A.            Risk Factors                                     11
                    Executive Officers of the Registrant             25
Item   1B.          Unresolved Staff Comments                        28
Item   2.           Properties                                       28
Item   3.           Legal Proceedings                                28
Item   4.           Submission of Matters to a Vote of Security      29
                    Holders

 PART II

Item 5.             Market for Registrant s Common Equity,           30
                    Related Stockholder Matters, and Issuer
                    Purchases of Equity Securities
Item 6.             Selected Financial Data                          30
Item 7.             Management s Discussion and Analysis of          30
                    Financial Condition and Results of Operations
Item 7A.            Quantitative and Qualitative Disclosures         30
                    About Market Risk
Item 8.             Financial Statements and Supplementary           30
                    Data
Item 9.             Changes in and Disagreements With Accountants    30
                    on Accounting and Financial Disclosure
Item 9A.            Controls and Procedures                          31
Item 9B.            Other Information                                31

PART III

Item 10.            Directors and Executive Officers of the          32
                    Registrant
Item 11.            Executive Compensation                           32
Item 12.            Security Ownership of Certain Beneficial         32
                    Owners and Management and Related Stockholder
                    Matters
Item 13.            Certain Relationships and Related Transactions   32
Item 14.            Principal Accountant Fees and Services           32

 PART IV

Item 15.            Exhibits and Financial Statement Schedules       33
                    Signatures                                       37


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CISCO SYSTEMS INC
10-K
09/18/2006

OUR STOCK PRICE MAY BE VOLATILE




Name                       Age                           Position

Susan L. Bostrom               45   Senior Vice President, Chief Marketing
                                    Officer and Worldwide Government Affairs


                                    Ms. Bostrom joined Cisco in October 1997
                                    as Vice President of Cisco s Applications
                                    and Services Marketing group. In August
                                    1998, she was appointed Vice President
                                    of the Internet Business Solutions Group
                                    and was promoted to Senior Vice President
                                    in February 2000. In October 2002, she also
                                    assumed responsibility for Worldwide
                                    Government Affairs. In January 2006, she
                                    was appointed to her current position.
                                    Before joining Cisco, Ms. Bostrom had served
                                    as Senior Vice President of Global Marketing
                                    and Strategic Planning at FTP Software.
                                    Ms. Bostrom also currently serves on the
                                    board of directors of Varian Medical Systems,
                                    Inc.


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10-K
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Name                Age                         Position

Larry R. Carter      63   Senior Vice President, Office of the President,
                          and Director

                          Mr. Carter has been a member of the Board
                          of Directors since July 2000. He joined
                          Cisco in January 1995 as Vice President
                          of Finance and Administration, Chief Financial
                          Officer, and Secretary. In July 1997, he
                          was promoted to Senior Vice President of
                          Finance and Administration, Chief Financial
                          Officer, and Secretary. In May 2003, upon
                          his retirement as Chief Financial Officer
                          and Secretary, he was appointed to his current
                          position. Before joining Cisco, he was
                          employed by Advanced Micro Devices, Inc.
                          as Vice President and Corporate Controller.
                          Mr. Carter also currently serves on the
                          board of directors of QLogic Corporation.

John T. Chambers     57   President, Chief Executive Officer, and
                          Director

                          Mr. Chambers has been a member of the Board
                          of Directors since November 1993. He joined
                          Cisco as Senior Vice President in January
                          1991 and was promoted to Executive Vice
                          President in June 1994. Mr. Chambers was
                          promoted to his current position as of January
                          31, 1995. Before joining Cisco, he was employed
                          by Wang Laboratories, Inc. for eight years,
                          where, in his last role, he was the Senior
                          Vice President of U.S. Operations.

Mark Chandler        50   Senior Vice President, Legal Services,
                          General Counsel and Secretary

                          Mr. Chandler joined Cisco in July 1996,
                          upon Cisco s acquisition of StrataCom,
                          Inc., where he served as General Counsel.
                          He served as Cisco s Managing Attorney for
                          Europe, the Middle East, and Africa from
                          December 1996 until June 1999; as Director,
                          Worldwide Legal Operations from June 1999
                          until February 2001; and was promoted to
                          Vice President, Worldwide Legal Services
                          in February 2001. In October 2001, he was
                          promoted to Vice President, Legal Services
                          and General Counsel and in May 2003, he was
                          also appointed Secretary. In February
                          2006, he was promoted to Senior Vice President.
                          Before joining StrataCom, he had served
                          as Vice President, Corporate Development
                          and General Counsel of Maxtor Corporation.
Charles H. Giancarlo           48   Senior Vice President, Chief Development
                                    Officer

                                    Mr. Giancarlo joined Cisco in December
                                    1994 as Director of Business Development.
                                    He was promoted to Vice President in September
                                    1995. He was Vice President of Global Alliances
                                    from April 1997 to April 1999 and promoted
                                    to Senior Vice President in April 1998.
                                    In April 1999, he was promoted to Senior
                                    Vice President, Commercial Line of Business.
                                    In August 2001, he was promoted to Senior
                                    Vice President and General Manager of the
                                    Access, Aggregation, Ethernet Switching,
                                    and Wireless Groups. In May 2002, he was
                                    promoted to Senior Vice President of the
                                    Switching, Voice and Storage Groups. In
                                    June 2003, he also became the President
                                    of Cisco-Linksys LLC. In August 2004, he
                                    was promoted to Chief Technology Officer.
                                    At the end of July 2005, he was promoted to
                                    his current position, and he currently
                                    serves as President of Cisco-Linksys LLC.
                                    Before joining Cisco, he served as Vice
                                    President of Marketing with Kalpana Corporation
                                    from July 1993 until Kalpana was acquired
                                    by Cisco in December 1994.


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10-K
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Name                 Age                           Position

Richard J. Justice    56   Senior Vice President, Worldwide Field
                           Operations

                           Mr. Justice joined Cisco in December 1996
                           as Senior Vice President of the Americas.
                           In February 2000, he was promoted to his
                           current position. Before joining Cisco,
                           Mr. Justice spent 22 years at Hewlett-Packard
                           Company where, in his last role, he was responsible
                           for Worldwide Enterprise Sales and Marketing.

Randy Pond            52   Senior Vice President, Operations, Processes,
                           and Systems

                           Mr. Pond joined Cisco in September 1993.
                           In 1994, Mr. Pond assumed leadership of
                           Cisco s Supply/Demand group. In 1994, he
                           was appointed Director of Manufacturing
                           Operations. He was promoted to Vice President
                           of Manufacturing in 1995. In January 2000,
                           Mr. Pond was promoted to Senior Vice President
                           of West Coast and Asia operations. He was
                           promoted to Senior Vice President, Worldwide
                           Manufacturing Operations and Logistics
                           in June 2001. In August 2003, he was promoted
                           to his current position. Before joining
                           Cisco, Mr. Pond held the position of Vice
                           President Finance, Chief Financial Officer,
                           and Vice President of Operations at Crescendo
                           Communications.

Dennis D. Powell      58   Senior Vice President and Chief Financial
                           Officer

                           Mr. Powell joined Cisco in January 1997
                           as Vice President, Corporate Controller.
                           In June 2002, he was promoted to Senior Vice
                           President, Corporate Finance. Mr. Powell
                           was promoted to Senior Vice President and
                           Chief Financial Officer in May 2003. Before
                           joining Cisco, Mr. Powell was employed
                           by Coopers & Lybrand LLP for 26 years, most
                           recently as a senior partner. Mr. Powell
                           currently serves on the board of directors
                           of Intuit Inc.

Betsy Rafael          45   Vice President, Corporate Controller
                           and Principal Accounting Officer

                           Ms. Rafael joined Cisco in April 2002 as
                           Vice President, Corporate Controller.
                           In July 2003 she was also named to the role
                           of Principal Accounting Officer. Before
                           joining Cisco, from December 2000 until
                                    March 2002, Ms. Rafael was employed by Aspect
                                    Communications Corporation, most recently
                                    as Executive Vice President, Finance,
                                    Chief Financial Officer and Chief Administrative
                                    Officer. From May 2000 until November 2000,
                                    she was employed by Escalate Corporation
                                    as Senior Vice President and Chief Financial
                                    Officer. From November 1994 until May 2000,
                                    she was employed by Silicon Graphics, Inc.,
                                    most recently as Senior Vice President
                                    and Chief Financial Officer. Ms. Rafael
                                    currently serves on the board of directors
                                    of Echelon Corporation. Ms. Rafael will
                                    cease to be an executive officer of Cisco
                                    effective September 20, 2006, when she
                                    will assume the role of Vice President,
                                    Corporate Finance & Planning.

James Richardson               49   Senior Vice President, Commercial Business


                                    Mr. Richardson joined Cisco in May 1990,
                                    founded Cisco s Canadian operations, and
                                    was promoted to Vice President of Intercontinental
                                    Operations in June 1992. Mr. Richardson
                                    was promoted to Vice President of North
                                    American Operations in June 1994. He was
                                    promoted to President of EMEA and Senior
                                    Vice President in August 1996. In September
                                    1999, he was promoted to Senior Vice President,
                                    Office of the President. In January 2000,
                                    he was promoted to Senior Vice President
                                    of the Enterprise Line of Business and Internet
                                    Communications Software Group. In August
                                    2001, Mr. Richardson was promoted to Senior
                                    Vice President, Chief Marketing Officer.
                                    In January 2006, Mr. Richardson was appointed
                                    to his current position.


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CISCO SYSTEMS INC
10-K
09/18/2006

ITEM 1B. Unresolved Staff Comments




Name                           Age                         Position

Jonathan Chadwick               40   Vice President, Corporate Finance & Planning


                                     Mr. Chadwick, 40, currently serves as Vice
                                     President, Corporate Finance & Planning
                                     of Cisco. Mr. Chadwick joined Cisco in September
                                     1997 as Director, Finance & Accounting.
                                     In May 1999, he was promoted to Senior Director,
                                     Corporate Finance & Accounting, and in
                                     February 2001, he was promoted to his current
                                     position. Before joining Cisco, Mr. Chadwick
                                     was employed by Coopers & Lybrand LLP. Mr.
                                     Chadwick will become an executive officer
                                     of Cisco effective September 20, 2006,
                                     in connection with his appointment as Vice
                                     President, Corporate Controller and Principal
                                     Accounting Officer.


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CISCO SYSTEMS INC
10-K
09/18/2006

PART II




Period                             Total      Average             Total Number
                                 Number of   Price Paid            of Shares
                                   Shares    per Share             Purchased
                                 Purchased                         as Part of
                                                                    Publicly
                                                                   Announced
                                                                    Plans or
                                                                  Programs(1)

April 30, 2006 to May 27, 2006          97       $        20.61             97
May 28, 2006 to June 24, 2006           27       $        19.97             27
June 25, 2006 to July 29, 2006          15       $        19.23             15

Total                                  139       $        20.35            139




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Approximate
Dollar Value
 of Shares
That May Yet
Be Purchased
 Under the
  Plans or
Programs(1)

     $     363
     $   4,830
     $   4,552
CISCO SYSTEMS INC
10-K
09/18/2006

INDEX TO FINANCIAL STATEMENTS




                                                  Page

                                                Form 10-K     2006 Annual
                                                               Report to
                                                              Shareholders
Management s Report on Internal Control                            16
Over Financial Reporting
Report of Independent Registered Public                            17
Accounting Firm

Consolidated Statements of Operations                              43
for each of the three years in the period
ended July 29, 2006

Consolidated Balance Sheets at July 29,                            44
2006 and July 30, 2005

Consolidated Statements of Cash Flows                              45
for each of the three years in the period
ended July 29, 2006

Consolidated Statements of Shareholders                            46
Equity for each of the three years in the
period ended July 29, 2006

Notes to Consolidated Financial Statements                       47-78

Supplementary Financial Data (Unaudited)                           79
and Stock Market Information Fiscal 2006
and 2005 by Quarter

Financial Statement Schedule:

Schedule II Valuation and Qualifying Accounts            35

Report of Independent Registered Public                  36
Accounting Firm on Financial Statement
Schedule
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CISCO SYSTEMS INC
10-K
09/18/2006

QUALIFYING ACCOUNTS




                                        Allowance for
                                           Doubtful
                                           Accounts

Year ended July 31, 2004:
Balance at beginning of fiscal year          $     183
Charged to expenses or other accounts               19
Deductions                                        (23)

Balance at end of fiscal year                $     179

Year ended July 30, 2005:
Balance at beginning of fiscal year          $     179
Charged to expenses or other accounts
Deductions                                        (17)

Balance at end of fiscal year                $     162

Year ended July 29, 2006:
Balance at beginning of fiscal year          $     162
Charged to expenses or other accounts               24
Deductions                                        (11)

Balance at end of fiscal year                $     175



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CISCO SYSTEMS INC
10-K
09/18/2006

INDEX TO EXHIBITS




Exhibit                                Exhibit Description                Incorporated by Reference
 Number

                                              Form                                File No.

   2.10             Agreement and Plan of Merger by and among                        8-K
                    Cisco Systems, Inc., Columbus Acquisition
                    Corp. and Scientific-Atlanta, Inc.

   3.10             Restated Articles of Incorporation of                            S-3
                    Cisco Systems, Inc., as currently in effect

   3.20             Amended and Restated Bylaws of Cisco Systems,                   10-Q
                    Inc., as currently in effect

   4.10             Indenture, dated February 22, 2006, between                      8-K
                    Cisco Systems, Inc. and Deutsche Bank Trust
                    Company Americas, as trustee

   4.20             Forms of Global Note for the registrant s                        8-K
                    Floating Rate Notes due 2009, 5.25% Senior
                    Notes due 2011 and 5.50% Senior Notes due
                    2016 (contained in Exhibit No. 4.1)

10.1*               Cisco Systems, Inc. Amended and Restated
                    1996 Stock Incentive Plan (including related
                    form agreements)

10.2*               1997 Supplemental Stock Incentive Plan
                    (including related form agreements)

10.3*               Cisco Systems, Inc. 2005 Stock Incentive
                    Plan (including related form agreements)

10.4*               Cisco Systems, Inc. SA Acquisition Long-Term
                    Incentive Plan (amends and restates the
                    2003 Long-Term Incentive Plan of Scientific-Atlanta
                    including related form agreements)

10.5*               Cisco Systems, Inc. Employee Stock Purchase                     10-Q
                    Plan (including Sub-plan, the International
                    Employee Stock Purchase Plan)

10.6*               Notice of Grant of Stock Option and Stock                       10-K
                    Option Agreement between John T. Chambers
                    and Cisco Systems, Inc.

10.7*               Professional and Leadership Incentive
                    Plan FY 2006

10.8*               Professional and Leadership Incentive                            8-K
                    Plan FY 2007

10.9*               Form of Officer Indemnification Agreement                       10-K

10.10*              Form of Director Indemnification Agreement                      10-K
  13.10          Pages 16 to 79 of the Registrant s 2006 Annual
                 Report to Shareholders

  21.10          Subsidiaries of the Registrant

  23.10          Consent of Independent Registered Public
                 Accounting Firm

  24.10          Power of Attorney (included on page 37 of
                 this Annual Report on Form 10-K)

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 Exhibit    Filing Date

001-05517          2.10   11/21/2005



333-56004          4.10   2/21/2001


000-18225          3.20   11/17/2003


000-18225          4.10   02/22/2006



000-18225          4.10   02/22/2006




                                       X



                                       X


                                       X


                                       X




000-18225         10.40   11/17/2003



000-18225         10.60   9/20/2004



                                       X


000-18225         10.10   7/31/2006


000-18225         10.70   9/20/2004

000-18225         10.80   9/20/2004
X


X

X


X
CISCO SYSTEMS INC
10-K
09/18/2006

ExhibitNumber




Exhibit                         Exhibit Description           Incorporated by Reference
 Number

                                       Form                           File No.            Exhibit


  31.10             Rule 13a 14(a)/15d 14(a) Certification
                    of Principal Executive Officer

  31.20             Rule 13a 14(a)/15d 14(a) Certification
                    of Principal Financial Officer

  32.10             Section 1350 Certification of Principal
                    Executive Officer

  32.20             Section 1350 Certification of Principal
                    Financial Officer

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              X


              X


              X


              X
CISCO SYSTEMS INC
10-K
09/18/2006

TO VESTING IN THOSE SHARES. THE TERMS AND CONDITIONS OF




CISCO SYSTEMS, INC.

By:
Title:



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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




OPTIONEE

Address:




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CISCO SYSTEMS INC
10-K
09/18/2006

RIGHT SHALL BE SPECIFIED IN A STOCK PURCHASE AGREEMENT,




CISCO SYSTEMS, INC.

By:
Title:



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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




OPTIONEE

Address:




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CISCO SYSTEMS INC
10-K
09/18/2006

EXHIBIT I




                               Optionee



                               Address:




Print name in exact manner
it is to appear on the
stock certificate:

Address to which certificate
is to be sent, if different
from address above:



Social Security Number:



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CISCO SYSTEMS INC
10-K
09/18/2006

TO VESTING IN THOSE SHARES. THE TERMS AND CONDITIONS OF




CISCO SYSTEMS, INC.

By:

Title:




OPTIONEE

Address:




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CISCO SYSTEMS INC
10-K
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AND SUBSTANCE SATISFACTORY TO THE CORPORATION, EXECUTED




CISCO SYSTEMS, INC.

By:
Title:




OPTIONEE

Address:




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CISCO SYSTEMS INC
10-K
09/18/2006

EXHIBIT I




                               Optionee



                               Address:



Print name in exact manner
it is to appear on the
stock certificate:

Address to which certificate
is to be sent, if different
from address above:


Social Security Number:



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CISCO SYSTEMS INC
10-K
09/18/2006

IN WITNESS WHEREOF, the parties have entered into this




Corporation:          CISCO SYSTEMS, INC.

                      By:

Consultant:


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10-K
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TABLE OF CONTENTS




                                                             Page

SECTION 1.                INTRODUCTION                          1

SECTION 2.                DEFINITIONS                           1

                    (a)   Affiliate                             1

                    (b)   Award                                 1

                    (c)   Board                                 1

                    (d)   Cashless Exercise                     1

                    (e)   Cause                                 1

                    (f)   Change In Control                     2

                    (g)   Code                                  2

                    (h)   Committee                             2

                    (i)   Common Stock                          2

                    (j)   Company                               2

                    (k)   Consultant                            2

                    (l)   Corporate Transaction                 2

                    (m)   Covered Employees                     3

                    (n)   Director                              3

                    (o)   Disability                            3

                    (p)   Employee                              3

                    (q)   Exchange Act                          3

                    (r)   Exercise Price                        3

                    (s)   Fair Market Value                     3

                    (t)   Fiscal Year                           4

                    (u)   Grant                                 4

                    (v)   Incentive Stock Option or ISO         4

                    (w)   Key Employee                          4

                    (x)   Non-Employee Director                 4

                    (y)   Nonstatutory Stock Option or NSO      4
                    (z)        Option     4

                    (aa)       Optionee   4

                    (bb)       Parent     4


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                                                             Page


                    (cc)   Participant                          4

                    (dd)   Performance Goals                    4

                    (ee)   Performance Period                   5

                    (ff)   Plan                                 5

                    (gg)   Re-Price                             5

                    (hh)   SAR Agreement                        5

                    (ii)   SEC                                  5

                    (jj)   Section 16 Persons                   5

                    (kk)   Securities Act                       5

                    (ll)   Service                              5

                    (mm)   Share                                6

                    (nn)   Stock Appreciation Right or SAR      6

                    (oo)   Stock Grant                          6

                    (pp)   Stock Grant Agreement                6

                    (qq)   Stock Option Agreement               6

                    (rr)   Stock Unit                           6

                    (ss)   Stock Unit Agreement                 6

                    (tt)   Subsidiary                           6

                    (uu)   10-Percent Shareholder               6

SECTION 3.                 ADMINISTRATION                       6

                    (a)    Committee Composition                6

                    (b)    Authority of the Committee           7

                    (c)    Indemnification                      7

SECTION 4.                 GENERAL                              8

                    (a)    General Eligibility                  8

                    (b)    Incentive Stock Options              8

                    (c)    Restrictions on Shares               8
                    (d)        Beneficiaries                8

                    (e)        Performance Conditions       8

                    (f)        No Rights as a Shareholder   9

                    (g)        Termination of Service       9


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                                                                       Page

                    (h)   Director Fees                                   9

SECTION 5.                SHARES SUBJECT TO PLAN AND SHARE LIMITS        10

                    (a)   Basic Limitation                               10

                    (b)   Additional Shares                              10

                    (c)   Dividend Equivalents                           10

                    (d)   Share Limits                                   10

SECTION 6.                TERMS AND CONDITIONS OF OPTIONS                10

                    (a)   Stock Option Agreement                         10

                    (b)   Number of Shares                               11

                    (c)   Exercise Price                                 11

                    (d)   Exercisability and Term                        11

                    (e)   Modifications or Assumption of Options         11

                    (f)   Assignment or Transfer of Options              11

SECTION 7.                PAYMENT FOR OPTION SHARES                      12

SECTION 8.                TERMS AND CONDITIONS OF STOCK APPRECIATION     12
                          RIGHTS

                    (a)   SAR Agreement                                  12

                    (b)   Number of Shares                               12

                    (c)   Exercise Price                                 13

                    (d)   Exercisability and Term                        13

                    (e)   Exercise of SARs                               13

                    (f)   Modification or Assumption of SARs             13

                    (g)   Assignment or Transfer of SARs                 13

SECTION 9.                TERMS AND CONDITIONS FOR STOCK GRANTS          14

                    (a)   Amount and Form of Awards                      14

                    (b)   Stock Grant Agreement                          14

                    (c)   Payment for Stock Grants                       14

                    (d)   Vesting Conditions                             14
                    (e)        Assignment or Transfer of Stock Grants       14

                    (f)        Voting and Dividend Rights                   15

                    (g)        Modification or Assumption of Stock Grants   15


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                                                                       Page

SECTION 10.               TERMS AND CONDITIONS OF STOCK UNITS            15

                    (a)   Stock Unit Agreement                           15

                    (b)   Number of Shares                               15

                    (c)   Payment for Stock Units                        15

                    (d)   Vesting Conditions                             15

                    (e)   Voting and Dividend Rights                     16

                    (f)   Form and Time of Settlement of Stock Units     16

                    (g)   Creditors Rights                               16

                    (h)   Modification or Assumption of Stock Units      16

                    (i)   Assignment or Transfer of Stock Units          16

SECTION 11.               PROTECTION AGAINST DILUTION                    17

                    (a)   Adjustments                                    17

                    (b)   Participant Rights                             17

                    (c)   Fractional Shares                              17

SECTION 12.               EFFECT OF A CORPORATE TRANSACTION              17

                    (a)   Corporate Transaction                          17

                    (b)   Acceleration                                   18

                    (c)   Dissolution                                    18

SECTION 13.               LIMITATIONS ON RIGHTS                          18

                    (a)   No Entitlements                                18

                    (b)   Shareholders Rights                            19

                    (c)   Regulatory Requirements                        19

SECTION 14.               WITHHOLDING TAXES                              19

                    (a)   General                                        19

                    (b)   Share Withholding                              19

SECTION 15.               DURATION AND AMENDMENTS                        19

                    (a)   Term of the Plan                               19
                     (b)       Right to Amend or Terminate the Plan   20

SECTION 16.                    EXECUTION                              20


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10-K
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STOCK GRANT AGREEMENT




Employee ID:

Grant Date:

Grant Number:

Restricted Shares:


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CISCO SYSTEMS INC
10-K
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Definitions.




CISCO SYSTEMS, INC.

By:
Title:


OPTIONEE


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CISCO SYSTEMS INC
10-K
09/18/2006

Definitions.




CISCO SYSTEMS, INC.

By:
Title:


OPTIONEE


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CISCO SYSTEMS INC
10-K
09/18/2006

STOCK GRANT AGREEMENT




Grantee:

Grant Date:

Grant Number:

Restricted Shares:

Vest Date:                     The completion of one (1) year of Board service
                               measured from the Grant Date.


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

No Entitlement or Claims for Compensation




CISCO SYSTEMS, INC.

By:
Title:


GRANTEE


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

TABLE OF CONTENTS




                                                          Page
SECTION 1.                INTRODUCTION                       1

SECTION 2.                DEFINITIONS                        1

                    (a)   Affiliate                          1

                    (b)   Assumed Option                     1

                    (c)   Award                              1

                    (d)   Award Letter                       2

                    (e)   Board                              2

                    (f)   Cashless Exercise                  2

                    (g)   Cause                              2

                    (h)   Change In Control                  2

                    (i)   Code                               3

                    (j)   Committee                          3

                    (k)   Common Stock                       3

                    (l)   Company                            3

                    (m)   Consultant                         3

                    (n)   Corporate Transaction              3

                    (o)   Covered Employees                  3

                    (p)   Director                           3

                    (q)   Disability                         3

                    (r)   Effective Time                     3

                    (s)   Employee                           4

                    (t)   Exchange Act                       4

                    (u)   Exercise Price                     4

                    (v)   Fair Market Value                  4

                    (w)   Fiscal Year                        4

                    (x)   Grant                              4

                    (y)   Incentive Stock Option or ISO      4

                    (z)   Key Employee                       5
                    (aa)       Merger Agreement                   5

                    (bb)       Nonstatutory Stock Option or NSO   5


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

TABLE OF CONTENTS




                                                              Page
                    (cc)    Option                               5

                    (dd)    Option Exchange Ratio                5

                    (ee)    Optionee                             5

                    (ff)    Parent                               5

                    (gg)    Participant                          5

                    (hh)    Performance Goals                    5

                    (ii)    Performance Period                   6

                    (jj)    Plan                                 6

                    (kk)    Re-Price                             6

                    (ll)    SA                                   6

                    (mm)    SA 2003 LTIP                         6

                    (nn)    SAR Agreement                        6

                    (oo)    SEC                                  6

                    (pp)    Section 16 Persons                   6

                    (qq)    Securities Act                       6

                    (rr)    Service                              6

                    (ss)    Share                                6

                    (tt)    Stock Appreciation Right or SAR      7

                    (uu)    Stock Grant                          7

                    (vv)    Stock Grant Agreement                7

                    (ww)    Stock Option Agreement               7

                    (xx)    Stock Unit                           7

                    (yy)    Stock Unit Agreement                 7

                    (zz)    Subsidiary                           7

                    (aaa)   10-Percent Shareholder               7

SECTION 3.                  ADMINISTRATION                       7

                    (a)     Committee Composition                7

                    (b)     Authority of the Committee           8
                    (c)        Indemnification       8

SECTION 4.                     GENERAL               9

                    (a)        General Eligibility   9


____________________________
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CISCO SYSTEMS INC
10-K
09/18/2006

TABLE OF CONTENTS




                                                                         Page
                    (b)   Incentive Stock Options                           9

                    (c)   Restrictions on Shares                            9

                    (d)   Beneficiaries                                     9

                    (e)   Performance Conditions                            9

                    (f)   No Rights as a Shareholder                        9

                    (g)   Termination of Service                            9

SECTION 5.                SHARES SUBJECT TO PLAN AND SHARE LIMITS          10

                    (a)   Basic Limitation                                 10

                    (b)   Additional Shares                                10

                    (c)   Dividend Equivalents                             10

                    (d)   Share Limits                                     10

                          (i) Limits on SARs and Options                   10

                          (ii) Limits on Stock Grants and Stock Units      10

SECTION 6.                TERMS AND CONDITIONS OF OPTIONS                  11

                    (a)   Stock Option Agreement                           11

                    (b)   Number of Shares                                 11

                    (c)   Exercise Price                                   11

                    (d)   Exercisability and Term                          11

                    (e)   Modifications or Assumption of Options           11
                          and Assumed Options

                    (f)   Assignment or Transfer of Options or Assumed     12
                          Options

                    (g)   Assumed Options                                  12

SECTION 7.                PAYMENT FOR OPTION AND ASSUMED OPTION SHARES     12

                    (a)   Surrender of Stock                               12

                    (b)   Cashless Exercise                                12

                    (c)   Other Forms of Payment                           12

SECTION 8.                TERMS AND CONDITIONS OF STOCK APPRECIATION       13
                          RIGHTS
                    (a)        SAR Agreement             13

                    (b)        Number of Shares          13

                    (c)        Exercise Price            13

                    (d)        Exercisability and Term   13


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CISCO SYSTEMS INC
10-K
09/18/2006

TABLE OF CONTENTS




                                                                       Page
                    (e)   Exercise of SARs                               13

                    (f)   Modification or Assumption of SARs             14

                    (g)   Assignment or Transfer of SARs                 14

SECTION 9.                TERMS AND CONDITIONS FOR STOCK GRANTS.         14

                    (a)   Amount and Form of Awards                      14

                    (b)   Stock Grant Agreement                          14

                    (c)   Payment for Stock Grants                       15

                    (d)   Vesting Conditions                             15

                    (e)   Assignment or Transfer of Stock Grants         15

                    (f)   Voting and Dividend Rights                     15

                    (g)   Modification or Assumption of Stock Grants     15

SECTION 10.               TERMS AND CONDITIONS OF STOCK UNITS            15

                    (a)   Stock Unit Agreement                           15

                    (b)   Number of Shares                               16

                    (c)   Payment for Stock Units                        16

                    (d)   Vesting Conditions                             16

                    (e)   Voting and Dividend Rights                     16

                    (f)   Form and Time of Settlement of Stock Units     16

                    (g)   Creditors Rights                               17

                    (h)   Modification or Assumption of Stock Units      17

                    (i)   Assignment or Transfer of Stock Units          17

SECTION 11.               PROTECTION AGAINST DILUTION                    17

                    (a)   Adjustments                                    17

                    (b)   Participant Rights                             17

                    (c)   Fractional Shares                              18

SECTION 12.               EFFECT OF A CORPORATE TRANSACTION              18

                    (a)   Corporate Transaction                          18

                    (b)   Acceleration                                   18
                     (c)       Dissolution             18

SECTION 13.                    LIMITATIONS ON RIGHTS   19

                     (a)       No Entitlements         19


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

TABLE OF CONTENTS




                                                                      Page
                     (b)       Shareholders Rights                      19

                     (c)       Regulatory Requirements                  19

SECTION 14.                    WITHHOLDING TAXES                        19

                     (a)       General                                  19

                     (b)       Share Withholding                        20

SECTION 15.                    DURATION AND AMENDMENTS                  20

                     (a)       Term of the Plan                         20

                     (b)       Right to Amend or Terminate the Plan     20

APPENDIX A                                                            A-1


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CISCO SYSTEMS INC
10-K
09/18/2006

SA ACQUISITION LONG-TERM INCENTIVE PLAN




Optionee:
Grant Date:
Type of Option:                           Incentive Stock Option
                                          Nonstatutory Stock Option
Grant Number:
Number of Option Shares: shares
Exercise Price: $ per share
Vesting Commencement Date:
Expiration Date:


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

SA ACQUISITION LONG-TERM INCENTIVE PLAN




Employee ID:

Grant Date:

Grant Number:

Restricted Shares:

First Vest Date: , 20             (the first annual anniversary
of the vesting commencement date)


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

SA ACQUISITION LONG-TERM INCENTIVE PLAN




Employee ID:

Grant Date:

Grant Number:

Restricted Stock Units:


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                 Company     X
                               Performance
                                  Factor
____________________________
Created by 10-K Wizard.
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  Customer     X    Individual
Satisfaction       Performance
   Factor             Factor
X    Teamwork and
    Collaboration
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Grade/Level                         Incentive Target
                                    Percentage
1-4                                 4%
5-7                                 5%
8 and 9                             9%
10 and 11                           12%
                               12   25%
013, 014, 083, 084, and 090         35%
200 and 888                         50%
                              150   60%


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                 Company
                               Performance
                                  Factor
                                   1.00      X


____________________________
Created by 10-K Wizard.
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  Customer          Individual
Satisfaction       Performance
   Factor             Factor
    1.05       X       1.00
     Teamwork and
    Collaboration

X       1.00
CISCO SYSTEMS INC
10-K
09/18/2006

EXHIBIT 13.1




/ S   / J OHN T. C HAMBERS

John T. Chambers
President and Chief Executive Officer


September 15, 2006


____________________________
Created by 10-K Wizard.
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/ S   / D ENNIS D. P OWELL

Dennis D. Powell
Senior Vice President and Chief Financial Officer


September 15, 2006
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                               July 29, 2006   July 30, 2005
Net sales                                         $ 28,484        $24,801
Net income                                      $ 5,580 (1)       $ 5,741
Net income per share basic                         $ 0.91          $ 0.88
Net income per share diluted                       $ 0.89          $ 0.87
Shares used in per-share calculation basic         6,158           6,487
Shares used in per-share calculation diluted       6,272           6,612
Cash and cash equivalents and investments         $ 17,814        $16,055
Total assets                                      $ 43,315        $33,883
Long-term debt                                    $ 6,332            $


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 31, 2004   July 26, 2003   July 27, 2002
   $22,045         $18,878         $18,915
 $ 4,401 (2)       $ 3,578         $ 1,893
    $ 0.64          $ 0.50          $ 0.26
    $ 0.62          $ 0.50          $ 0.25
    6,840           7,124           7,301
    7,057           7,223           7,447
   $19,267         $20,652         $21,456
   $35,594         $37,107         $37,795
      $               $               $
CISCO SYSTEMS INC
10-K
09/18/2006

Critical Accounting Estimates




Years Ended
Net income as reported for fiscal 2005 (1)
Stock-based compensation expense related
to employee stock options and employee
stock purchases
Tax benefit
Stock-based compensation expense related to employee stock options and employee stock
purchases, net of tax (2)
Net income, including the effect of stock-based compensation expense (3)
Diluted net income per share as reported for fiscal 2005 (1)
Diluted net income per share, including the effect of stock-based compensation expense (3)


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 29, 2006   July 30, 2005
     N/A           $ 5,741
  $ (1,050)        (1,628)


   $ 294            594
  $ (756)         (1,034)

  $ 5,580         $ 4,707
    N/A            $ 0.87
   $ 0.89          $ 0.71
CISCO SYSTEMS INC
10-K
09/18/2006

Warranty Costs




                                Weighted-
                                 Average
                               Assumptions
Expected volatility               23.7%
Risk-free interest rate            4.3%
Expected dividend                  0.0%
Kurtosis                           4.30
Skewness                          (0.62)


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

Loss Contingencies




Years Ended                    July 29, 2006   July 30, 2005

Net sales:
Product                           $23,917         $20,853
Percentage of net sales            84.0%           84.1%
Service                            4,567           3,948
Percentage of net sales            16.0%           15.9%
Total                             $28,484         $24,801


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Variance     Variance    July 30, 2005   July 31, 2004
in Dollars   in Percent

 $3,064        14.7%         $20,853         $18,550
                              84.1%           84.1%
   619         15.7%          3,948           3,495
                              15.9%           15.9%
 $3,683        14.9%         $24,801         $22,045
 Variance     Variance
in Dollars   in Percent

 $2,303        12.4%

   453         13.0%

 $2,756        12.5%
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended                    July 29, 2006   July 30, 2005

Net sales:
United States and   Canada        $15,785         $13,298
Percentage of net   sales          55.4%           53.6%
European Markets                   6,079           5,692
Percentage of net   sales          21.4%           23.0%
Emerging Markets                   2,476           1,805
Percentage of net   sales           8.7%            7.3%
Asia Pacific                       2,853           2,486
Percentage of net   sales          10.0%           10.0%
Japan                              1,291           1,520
Percentage of net   sales           4.5%            6.1%
Total                             $28,484         $24,801


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Variance     Variance    July 30, 2005   July 31, 2004
in Dollars   in Percent

 $2,487        18.7%         $13,298         $11,631
                              53.6%           52.8%
   387         6.8%           5,692           5,278
                              23.0%           23.9%
   671         37.2%          1,805           1,450
                               7.3%            6.6%
   367         14.8%          2,486           2,230
                              10.0%           10.1%
  (229)       (15.1)%         1,520           1,456
                               6.1%            6.6%
 $3,683        14.9%         $24,801         $22,045
 Variance     Variance
in Dollars   in Percent

 $1,667        14.3%

   414          7.8%

   355         24.5%

   256         11.5%

   64           4.4%

 $2,756        12.5%
CISCO SYSTEMS INC
10-K
09/18/2006

Balance Sheet




Years Ended                         July 29, 2006   July 30, 2005

Net product sales:
United States and Canada               $12,601         $10,511
Percentage of net product   sales       52.7%           50.4%
European Markets                        5,339           5,050
Percentage of net product   sales       22.3%           24.2%
Emerging Markets                        2,296           1,665
Percentage of net product   sales        9.6%            8.0%
Asia Pacific                            2,550           2,243
Percentage of net product   sales       10.7%           10.8%
Japan                                   1,131           1,384
Percentage of net product   sales        4.7%            6.6%
Total                                  $23,917         $20,853


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Variance     Variance    July 30, 2005
in Dollars   in Percent

 $2,090        19.9%         $10,511
                              50.4%
   289          5.7%          5,050
                              24.2%
   631         37.9%          1,665
                               8.0%
   307         13.7%          2,243
                              10.8%
  (253)       (18.3)%         1,384
                               6.6%
 $3,064        14.7%         $20,853
July 31, 2004    Variance     Variance
                in Dollars   in Percent

  $ 9,116         $1,395       15.3%
   49.1%
   4,703           347          7.4%
   25.4%
   1,347           318         23.6%
    7.3%
   2,039           204         10.0%
   11.0%
   1,345           39           2.9%
    7.2%
  $18,550         $2,303       12.4%
CISCO SYSTEMS INC
10-K
09/18/2006

Net Product Sales by Theater




Years Ended                         July 29, 2006   July 30, 2005

Net product sales:
Routers                                 $6,005        $ 5,498
Percentage of net product   sales       25.1%          26.4%
Switches                                10,833         9,950
Percentage of net product   sales       45.3%          47.7%
Advanced technologies                   6,228          4,634
Percentage of net product   sales       26.0%          22.2%
Other                                    851            771
Percentage of net product   sales        3.6%           3.7%
Total                                  $23,917        $ 20,853


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Variance     Variance    July 30, 2005
in Dollars   in Percent

  $ 507         9.2%          $5,498
                              26.4%
   883          8.9%          9,950
                              47.7%
  1,594        34.4%          4,634
                              22.2%
   80          10.4%           771
                               3.7%
 $3,064        14.7%         $20,853
July 31, 2004    Variance     Variance
                in Dollars   in Percent

  $ 5,406         $ 92          1.7%
   29.1%
   8,838          1,112        12.6%
   47.7%
   3,530          1,104        31.3%
   19.0%
    776            (5)         (0.6)%
    4.2%
  $ 18,550       $ 2,303       12.4%
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                   AMOUNT
Years Ended                    July 29, 2006   July 30, 2005
Gross margin:
Product                           $15,803         $14,095
Service                            2,944           2,576
Total                             $18,747         $16,671


____________________________
Created by 10-K Wizard.
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                  PERCENTAGE
July 31, 2004   July 29, 2006   July 30, 2005

  $12,784           66.1%           67.6%
   2,342            64.5%           65.2%
  $15,126           65.8%           67.2%
July 31, 2004

   68.9%
   67.0%
   68.6%
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                   AMOUNT
Years Ended                    July 29, 2006   July 30, 2005
Gross margin:
United States and Canada          $10,234        $ 8,784
European Markets                   4,057          3,916
Emerging Markets                   1,682          1,267
Asia Pacific                       1,861          1,671
Japan                               913           1,033
Total                             $18,747        $ 16,671


____________________________
Created by 10-K Wizard.
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                  PERCENTAGE
July 31, 2004   July 29, 2006   July 30, 2005

  $ 7,838           64.8%           66.1%
   3,661            66.7%           68.8%
   1,019            67.9%           70.2%
   1,532            65.2%           67.2%
   1,076            70.7%           68.0%
  $ 15,126          65.8%           67.2%
July 31, 2004

   67.4%
   69.4%
   70.3%
   68.7%
   73.9%
   68.6%
CISCO SYSTEMS INC
10-K
09/18/2006

Balance Sheet




Years Ended                    July 29, 2006   July 30, 2005

Research and development          $ 4,067         $3,322
Percentage of net sales            14.3%          13.4%
Sales and marketing                6,031          4,721
Percentage of net sales            21.2%          19.0%
General and administrative         1,169           959
Percentage of net sales             4.1%           3.9%
Total                             $11,267         $9,002
Percentage of net sales            39.6%          36.3%


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Variance     Variance    July 30, 2005
in Dollars   in Percent
  $ 745        22.4%         $3,322
                             13.4%
  1,310        27.7%         4,721
                             19.0%
   210         21.9%          959
                              3.9%
 $2,265        25.2%         $9,002
                             36.3%
July 31, 2004    Variance     Variance
                in Dollars   in Percent
   $3,192          $130         4.1%
   14.5%
   4,530           191          4.2%
   20.6%
    867            92          10.6%
    3.9%
   $8,589         $413          4.8%
   39.0%
CISCO SYSTEMS INC
10-K
09/18/2006

Research and Development, Sales and Marketing, and General




Years Ended                                      July 29, 2006   July 30, 2005

Interest income, net                                 $ 607           $552
Other income, net                                      30             68
Total                                                $ 637           $620


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Variance    July 30, 2005   July 31, 2004    Variance
in Dollars                                   in Dollars
   $ 55          $ 552           $512           $ 40
   (38)            68            188           (120)
   $ 17          $ 620           $700          $ (80)
CISCO SYSTEMS INC
10-K
09/18/2006

Research and Development, Sales and Marketing, and General




Cost of sales product
Cost of sales service
Stock-based compensation expense included in cost of sales

Research and development
Sales and marketing
General and administrative
Stock-based compensation expense included in operating expenses

Total stock-based compensation expense related to employee stock options and employee stock purchases
Tax benefit
Stock-based compensation expense related to employee stock options and employee stock purchases, net of tax


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
Amount
 $ 50
 112
 162

 346
 427
 115
 888

1,050
(294)
$ 756
CISCO SYSTEMS INC
10-K
09/18/2006

Amortization of Purchased Intangible Assets




                                     In-Process     Estimated Cost to
                                    R&D Expense    Complete Technology
                                                  at Time of Acquisition
KiSS Technology A/S                     $ 2                $ 1
Scientific-Atlanta, Inc.                 88                 93
Other                                    1                  1
Total                                   $ 91               $ 95


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
  Risk-Adjusted
Discount Rate for
  In-Process R&D
      22.0%
      17.0%
      22.0%
CISCO SYSTEMS INC
10-K
09/18/2006

Interest Income, Net




Years Ended                    July 29, 2006   July 30, 2005
Interest income                    $ 755            $552
Interest expense                   (148)
Total                              $ 607           $552


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended
Net gains on investments in fixed income and publicly traded equity securities
Impairment charges on publicly traded equity securities
Net gains on investments in privately held companies
Impairment charges on investments in privately held companies
Net gains and impairment charges on investments
Other
Total


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 29, 2006   July 30, 2005
     $ 53            $ 88
                     (5)
     86               51
    (15)             (39)
    124               95
    (94)             (27)
    $ 30             $ 68
CISCO SYSTEMS INC
10-K
09/18/2006

Product Gross Margin




                                 In-Process     Estimated Cost to
                                R&D Expense    Complete Technology
                                              at Time of Acquisition
FISCAL 2005
Actona Technologies, Inc.           $ 4                $ 1
Airespace, Inc.                      3                  1
P Cube Inc.                          6                  2
Topspin Communications, Inc.         4                  2
Other                                9                  5
Total                               $26                $11
FISCAL 2004
Latitude Communications, Inc.       $ 1                $ 1
Other                                2                  1
Total                               $ 3                $ 2


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
  Risk-Adjusted
Discount Rate for
  In-Process R&D

     24.0%
     22.0%
     24.0%
     21.0%
  20.0% 23.0%


      16.5%
      23.0%
CISCO SYSTEMS INC
10-K
09/18/2006

Interest Income, Net




Years Ended
Net gains on investments in fixed income and publicly traded equity securities
Impairment charges on publicly traded equity securities
Net gains on investments in privately held companies
Impairment charges on investments in privately held companies
Net gains and impairment charges on investments
Other
Total


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 30, 2005   July 31, 2004
     $ 88           $ 206
     (5)
      51             61
     (39)          (112)
      95            155
     (27)            33
     $ 68          $ 188
CISCO SYSTEMS INC
10-K
09/18/2006

Income Statement




                                                                   Amount
Cumulative effect of accounting change, net of tax benefit of $5   $ 567
Variable stock-based compensation                                    58
Deferred stock-based compensation                                    90
Net assets                                                           7
Total                                                              $ 722


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                    July 29, 2006   July 30, 2005

Cash and cash equivalents              $ 3,297         $ 4,742
Fixed income securities                 13,805          10,372
Publicly traded equity securities        712             941
Total                                  $17,814         $16,055


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Increase
(Decrease)
 $(1,445)
  3,433
  (229)
 $ 1,759
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                                   July 29, 2006   July 30, 2005

Raw materials                                          $ 131           $ 82
Work in process                                         377            431
Finished goods:
Distributor inventory and deferred cost of sales       423             385
Manufacturing finished goods                           236             184
Total finished goods                                   659             569
Service-related spares                                 170             180
Demonstration systems                                   34              35
Total                                                 $1,371          $1,297


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Increase
(Decrease)
   $ 49
   (54)

   38
   52
   90
  (10)
  (1)
  $ 74
CISCO SYSTEMS INC
10-K
09/18/2006

Deferred Revenue




                       July 29, 2006   July 30, 2005    Increase
                                                       (Decrease)
Service                    $4,088         $3,618          $470
Product                    1,561          1,424           137
Total                      $5,649         $5,042          $607
Reported as:
Current                    $4,408         $3,854          $554
Noncurrent                 1,241          1,188            53
Total                      $5,649         $5,042          $607


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                               Amount    Effective Rate (1)
Senior notes:
2009 Notes                      $ 500          5.27%
2011 Notes                      3,000          5.39%
2016 Notes                      3,000          5.62%
Total senior notes              6,500
Other notes                       5
Unamortized discount             (18)
Fair value adjustment           (155)
Total                          $ 6,332


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

Balance Sheet




                                  PAYMENTS DUE BY PERIOD
July 29, 2006                             Total            Less than 1     1 3
                                                               Year       Years
Operating leases                          $ 1,215             $ 233       $ 280
                                           1,979
Purchase commitments with contract manufacturers              1,979
and suppliers
Purchase obligations                       1,418               994         314
Long-term debt                             6,505                           502
Other long-term liabilities                 161                 10          80
Total                                     $ 11,278           $ 3,216      $1,176

                                  PAYMENTS DUE BY PERIOD
July 30, 2005                             Total             Less than 1    1 3
                                                                Year      Years
Operating leases                          $ 1,260              $ 215      $ 281
                                            954
Purchase commitments with contract manufacturers and suppliers 954
Purchase obligations                       1,398               1,014       338
Total                                     $ 3,612             $ 2,183     $ 619


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
3 5 Years   More than
             5 Years
  $ 196       $ 506


   66          44
 3,003       3,000
   28          43
 $3,293      $3,593


3 5 Years   More than
             5 Years
  $ 184       $ 580

    46
  $ 230       $ 580
CISCO SYSTEMS INC
10-K
09/18/2006

Balance Sheet




                                           VALUATION OF SECURITIES
                                            GIVEN AN INTEREST RATE
                                          DECREASE OF X BASIS POINTS


                                                  (150 BPS)            (100 BPS)   (50 BPS)
U.S. government notes and bonds                    $ 5,289              $ 5,238    $ 5,186
Corporate and municipal notes and bonds             8,772                8,738      8,705

and asset-backed securities
Total                                              $14,061              $13,976    $13,891


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
FAIR VALUE
  AS OF
 JULY 29,     VALUATION OF SECURITIES
 2006.00       GIVEN AN INTEREST RATE
             INCREASE OF X BASIS POINTS
                       50 BPS           100 BPS   150 BPS
 $ 5,135              $ 5,084           $ 5,032   $ 4,981
  8,670                8,636             8,603     8,568


 $13,805              $13,720          $13,635    $13,549
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                           VALUATION OF SECURITIES
                                            GIVEN AN INTEREST RATE
                                          DECREASE OF X BASIS POINTS


                                                  (150 BPS)            (100 BPS)   (50 BPS)
U.S. government notes and bonds                    $ 3,540              $ 3,503    $ 3,467
Corporate and municipal notes and bonds             7,101                7,048      6,995

and asset-backed securities
Total                                              $10,641              $10,551    $10,462


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
FAIR VALUE
  AS OF
 JULY 30,     VALUATION OF SECURITIES
 2005.00       GIVEN AN INTEREST RATE
             INCREASE OF X BASIS POINTS
                       50 BPS           100 BPS   150 BPS
 $ 3,430              $ 3,393           $ 3,357   $ 3,320
  6,942                6,890             6,837     6,784


 $10,372              $10,283          $10,194    $10,104
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                    VALUATION OF SECURITIES
                                      GIVEN AN X% DECREASE
                                     IN EACH STOCK S PRICE


                                             (35%)            (25%)   (15%)
Publicly traded equity securities            $ 421            $ 486   $ 551


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
FAIR VALUE
  AS OF
 JULY 29, VALUATION OF SECURITIES
 2006.00    GIVEN AN X% INCREASE
           IN EACH STOCK S PRICE
                    15%            25%     35%
  $ 648            $ 745          $ 810   $ 875
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                    VALUATION OF SECURITIES
                                      GIVEN AN X% DECREASE
                                     IN EACH STOCK S PRICE


                                             (35%)            (25%)   (15%)
Publicly traded equity securities            $ 498            $ 575   $ 651


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
FAIR VALUE
  AS OF
 JULY 30, VALUATION OF SECURITIES
 2005.00    GIVEN AN X% INCREASE
           IN EACH STOCK S PRICE
                    15%            25%      35%
  $ 766            $ 881          $ 958   $ 1,034
CISCO SYSTEMS INC
10-K
09/18/2006

Interest Rate Derivatives




July 29, 2006                  Notional Amount   Fair Value
Forward contracts:
Purchased                          $1,376           $(2)
Sold                               $ 554            $(3)
Option contracts:
Purchased                           $ 591           $20
Sold                                $ 573           $(2)

July 30, 2005                  Notional Amount   Fair Value
Forward contracts:
Purchased                          $ 1,011         $ (5)
Sold                                $ 450           $ 9
Option contracts:
Purchased                          $ 1,028          $ 10
Sold                               $ 1,002         $ (7)


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
Estimated Growth Rate                                                               0.15
Estimated Tax Rate                                                           0.26896371
Depreciation Rate                                                                    0.1
Net PPE Growth                                                                       3%
Cost of Capital                                                                    18%
Terminal Growth Rate                                                                 5%
Terminal Cost of Capital                                                             8%


CISCO SYSTEMS INC
10-K
09/18/2006

Income Statement




Years Ended                                                              July 31, 2004
NET SALES:
Product                                                                     $18,550
Service                                                                      3,495
Total net sales                                                              22,045
COST OF SALES:
Product                                                                     5,766
Service                                                                     1,153
Total cost of sales                                                         6,919
GROSS MARGIN                                                                15,126

OPERATING EXPENSES:
Research and development                                                     3,192
Sales and marketing                                                          4,530
General and administrative                                                    867
Amortization of purchased intangible assets                                   242
In-process research and development                                            3
Total operating expenses                                                     8,834
OPERATING INCOME                                                             6,292
Interest income, net                                                          512
Other income, net                                                             188
Interest and other income, net                                                700
INCOME BEFORE PROVISION FOR INCOME TAXES                                     6,992
AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE
Provision for income taxes                                                   2,024
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING                                4,968
CHANGE
Cumulative effect of accounting change, net of tax                           (567)
NET INCOME                                                                  $ 4,401
Income per share before cumulative effect of accounting change basic         $ 0.73
Income per share before cumulative effect of accounting change diluted       $ 0.70
Net income per share basic                                                   $ 0.64
Net income per share diluted                                                 $ 0.62
Shares used in per-share calculation basic                                   6,840
Shares used in per-share calculation diluted                                 7,057


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 30, 2005   July 29, 2006       2007        2008        2009        2010        2011

  $20,853         $ 23,917       27504.55   31630.233   36374.767   41830.982    48105.63
   3,948           4,567          5252.05   6039.8575   6945.8361   7987.7115   9185.8683
   24,801          28,484         32756.6    37670.09   43320.604   49818.694   57291.498

   6,758           8,114           9331.1   10730.765    12340.38   14191.437   16320.152
   1,372           1,623          1866.45   2146.4175   2468.3801   2838.6371   3264.4327
   8,130           9,737         11197.55   12877.183    14808.76   17030.074   19584.585
   16,671          18,747        21559.05   24792.908   28511.844    32788.62   37706.913


   3,322           4,067          4677.05   5378.6075   6185.3986   7113.2084   8180.1897
   4,721           6,031          6935.65   7975.9975   9172.3971   10548.257   12130.495
    959            1,169          1344.35   1546.0025   1777.9029   2044.5883   2351.2766
    227             393            451.95    519.7425   597.70388   687.35946   790.46337
     26              91                91          91          91          91          91
   9,255           11,751           13500    15511.35   17824.403   20484.413   23543.425
   7,416           6,996          8059.05   9281.5575   10687.441   12304.207   14163.488
    552             607               607         607         607         607         607
     68              30                30          30          30          30          30
    620             637               637         637         637         637         637
   8,036           7,633            8,726       9,949      11,354      12,971      14,830

   2,295           2,053        2346.9908   2675.8009   3053.9326    3488.784   3988.8632
   5,741           5,580            6,379       7,273       8,301       9,482      10,842


  $ 5,741          $ 5,580
   $ 0.88           $ 0.91
   $ 0.87           $ 0.89
   $ 0.88           $ 0.91
   $ 0.87           $ 0.89
   6,487            6,158
   6,612            6,272
CISCO SYSTEMS INC
10-K
09/18/2006

Balance Sheet


Sales


ASSETS
Current assets:
Cash and cash equivalents                                                         0.115749193
Investments                                                                       0.509654543
Accounts receivable, net of allowance                                             0.115959837
for doubtful accounts of $175 at July 29,
2006 and $162 at July 30, 2005
Inventories                                                                       0.048132285
Deferred tax assets                                                               0.056312316
Prepaid expenses and other current assets                                         0.055610167
Total current assets
Property and equipment, net
Goodwill
Purchased intangible assets, net
Other assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Accounts payable                                                                  0.030894537
Income taxes payable                                                              0.061227356
Accrued compensation                                                              0.053222862
Deferred revenue                                                                  0.154753546
Other accrued liabilities                                                          0.09707204
Total current liabilities

Long-term debt
Deferred revenue
Other long-term liabilities
Total liabilities
Commitments and contingencies (Note 8)

Minority interest

Shareholders equity:
Preferred stock, no par value: 5 shares authorized; none issued and outstanding
Common stock and additional paid-in capital,
$0.001 par value: 20,000 shares authorized;
6,059 and 6,331 shares issued and outstanding
at July 29, 2006 and July 30, 2005, respectively
Retained earnings (Accumulated deficit)
Accumulated other comprehensive income
Total shareholders equity
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/




Free Cash Flow Estimate
Net Income
Less WC
+Depreciation and Amortization
Capital Expenditures

Estimated Free Cash Flows


New Estimated Gross Property and Equipment (Beginning of Year)
New Estimated Net Property and Equipment (Beginning of Year)



Present Value of Year 5 Cash Flows                                        Flow
                                                                 2007         4,087
                                                                 2008         4,676
                                                                 2009         5,329
                                                                 2010         6,080
                                                                 2011         6,944

Total Value of Super Growth Period


Terminal Value

5th Year Flow                                                           3035.196288
Growth Rate                                                                   105%
                                                                        3186.956102

Denominator                                                                     3%
Terminal Value at Year 5                                                106231.8701
Discount Factor                                                         0.437109216
Present Value of Terminal Period

Total Value

Value Per Share
   24,801           28,484          32756.6     37670.09    43320.604    49818.694    57291.498

July 30, 2005 July 29, 2006            2007         2008         2009         2010         2011


   $ 4,742          $ 3,297         3791.55    4360.2825    5014.3249    5766.4736    6631.4446
    11,313           14,517        16694.55    19198.733    22078.542    25390.324    29198.872
    2,216            3,303          3798.45    4368.2175    5023.4501    5776.9676    6643.5128


    1,297            1,371          1576.65    1813.1475    2085.1196    2397.8876    2757.5707
    1,475            1,604           1844.6      2121.29    2439.4835     2805.406    3226.2169
     967             1,584           1821.6      2094.84     2409.066    2770.4259    3185.9898
    22,010           25,676         29527.4     33956.51    39049.987    44907.484    51643.607
    3,320            3,440           3543.2     3649.496    3758.9809    3871.7503    3987.9028
    5,295            9,227            9,227        9,227        9,227        9,227        9,227
     549             2,161            2,161        2,161        2,161        2,161        2,161
    2,709            2,811            2,811        2,811        2,811        2,811        2,811
   $33,883          $43,315          47,270       51,805       57,008       62,978       69,831


    $ 735           $ 880              1012       1163.8      1338.37    1539.1255    1769.9943
    1,511           1,744            2005.6      2306.44     2652.406    3050.2669    3507.8069
    1,317           1,516            1743.4      2004.91    2305.6465    2651.4935    3049.2175
    3,854           4,408            5069.2      5829.58     6704.017    7709.6196    8866.0625
    2,094           2,765           3179.75    3656.7125    4205.2194    4836.0023    5561.4026
    9,511           11,313         13009.95    14961.443    17205.659    19786.508    22754.484

                    6,332             6,332        6,332        6,332        6,332        6,332
    1,188           1,241             1,241        1,241        1,241        1,241        1,241
                     511                511          511          511          511          511
   10,699           19,397           21,094       23,045       25,290       27,871       30,838


     10                6                  6



   22,394           24,257           24,257



     506             (617)             (617)
     274              272                272
    23,174           23,912
   $33,883          $43,315




             2005          2006        2007         2008         2009         2010         2011

                                  6379.0592    7272.7566    8300.5085    9482.4233    10841.625
                                     (2,154)      (2,478)      (2,849)      (3,277)      (3,768)
                           1293        540.2      608.02       680.69    760.98304    849.67211
                    5111    678.2     726.7    802.9304   886.89065   979.35695

                            4,087     4,676       5,329       6,080       6,944


                    5,402   6,080     6,807       7,610       8,497       9,476
                     3818    3956   4074.68   4196.9204    4322.828   4452.5129



Factor            PV
0.847457627    3463.22815
 0.71818443   3358.560086
0.608630873   3243.398782
0.515788875   3135.927502
0.437109216   3035.196288

              16236.31081




              46434.92947

              62671.24028
                     6158
              10.17720693
CISCO SYSTEMS INC
10-K
09/18/2006

Cash Flows




Years Ended
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of accounting change, net of tax
Depreciation and amortization
Stock-based compensation expense related
to employee stock options and employee
stock purchases
Stock-based compensation expense related to acquisitions and investments
Provision for doubtful accounts
Provision for inventory
Deferred income taxes
Tax benefits from employee stock option plans
Excess tax benefits from stock-based compensation
In-process research and development
Net gains and impairment charges on investments
Other
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable
Inventories
Prepaid expenses and other current assets
Lease receivables, net
Accounts payable
Income taxes payable
Accrued compensation
Deferred revenue
Other liabilities
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of investments
Proceeds from sales and maturities of investments
Acquisition of property and equipment
Acquisition of businesses, net of cash and cash equivalents acquired
Change in investments in privately held companies
Purchase of minority interest of Cisco Systems, K.K. (Japan)
Other
Net cash (used in) provided by investing activities
Cash flows from financing activities:
Issuance of common stock
Repurchase of common stock
Issuance of debt
Excess tax benefits from stock-based compensation
Other
Net cash provided by (used in) financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents, beginning of fiscal year
Cash and cash equivalents, end of fiscal year


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 31, 2004   July 30, 2005   July 29, 2006

  $ 4,401         $ 5,741          $ 5,580

    567
   1,199           1,020           1,293
                                   1,050


    244             154              87
     19                              24
    205             221             162
    552              55            (343)
    537              35
                                   (432)
     3               26              91
   (155)            (95)           (124)
                                     31

   (488)           (373)           (913)
   (538)           (305)            (41)
    (42)            (58)           (300)
   (159)           (163)           (171)
     54              62             (43)
    260             947             743
    (7)            (154)            150
    688             541             575
   (378)            (86)            480
   6,962           7,568           7,899

  (33,054)        (20,314)        (21,732)
   34,327          24,630          18,480
   (613)           (692)           (772)
   (104)           (911)          (5,399)
    (13)           (171)           (186)
    (71)            (34)            (25)
    153             106             (10)
    625            2,614          (9,644)

   1,257           1,087            1,682
  (9,080)         (10,235)         (8,295)
                                    6,481
                                     432
     33             (14)
  (7,790)         (9,162)            300
   (203)           1,020           (1,445)
   3,925           3,722            4,742
  $ 3,722         $ 4,742          $ 3,297
CISCO SYSTEMS INC
10-K
09/18/2006

Supplemental Information




                                                                   Shares of
                                                                     Common
                                                                     Stock

BALANCE AT JULY 26, 2003                                             6,998
Net income
Change in unrealized gains and losses on investments, net of tax
Other

Comprehensive income

Issuance of common stock                                              122
Repurchase of common stock                                           (408)
Tax benefits from employee stock option plans
Purchase acquisitions
Stock-based compensation expense related
to acquisitions and
investments
Cumulative effect of accounting change, net of tax
Acquisition of Andiamo Systems, Inc.                                   23
BALANCE AT JULY 31, 2004                                             6,735
Net income
Change in unrealized gains and losses on investments, net of tax
Other

Comprehensive income

Issuance of common stock                                              112
Repurchase of common stock                                           (540)
Tax benefits from employee stock option plans
Purchase acquisitions                                                 24
Stock-based compensation expense related
to acquisitions and investments
BALANCE AT JULY 30, 2005                                             6,331
Net income
Change in unrealized gains and losses on
investments, net of tax
Other

Comprehensive income

Issuance of common stock                                              162
Repurchase of common stock                                           (435)
Tax benefits from employee stock option
plans
Purchase acquisitions                                                  1
Stock-based compensation expense related
to employee stock options and employee
stock purchases
Stock-based compensation expense related
to acquisitions and investments
BALANCE AT JULY 29, 2006                                             6,059


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
  Common Stock      Retained      Accumulated       Total
      and           Earnings         Other       Shareholders
   Additional     (Accumulated   Comprehensive      Equity
Paid-In Capital     Deficit)         Income
    $21,116          $6,559           $354         $28,029
                     4,401                          4,401
                                     (161)          (161)
                                       19             19

                                                    4,259

    1,257                                           1,257
   (1,284)          (7,796)                        (9,080)
     537                                             537
      6                                               6
     244                                             244


     567                                             567
      7                                               7
   $22,450          $3,164           $212          $25,826
                    5,741                           5,741
                                      52              52
                                      10              10

                                                    5,803

    1,087                                           1,087
   (1,836)          (8,399)                        (10,235)
      35                                              35
     504                                             504
     154                                             154

   $22,394           $ 506           $274          $23,174
                     5,580                          5,580
                                     (63)            (63)

                                      61              61

                                                    5,578

    1,682                                           1,682
   (1,592)          (6,703)                        (8,295)
     454                                             454

     188                                             188
    1,044                                           1,044


      87                                              87

   $24,257          $ (617)          $272          $23,912
CISCO SYSTEMS INC
10-K
09/18/2006

Supplemental Information




                               Shares of     Common Stock      Retained
                                 Common          and           Earnings
                                 Stock        Additional     (Accumulated
                                           Paid-In Capital     Deficit)
Repurchases of common stock      1,931          $6,294         $29,154


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Accumulated       Total
    Other       Shareholders
Comprehensive      Equity
    Income
      $           $35,448
CISCO SYSTEMS INC
10-K
09/18/2006

FACE="Times New Roman" SIZE="2" COLOR="#005568"><B>3. Business




                                                             Amount
Cash                                                         $6,907
Fair value of fully-vested Scientific-Atlanta,                163
Inc. stock options assumed
Acquisition-related costs                                      17
Total                                                        $7,087


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                      Amount
Cash and cash equivalents             $1,747
Investments                            137
Accounts receivable                    195
Inventories                            191
Property and equipment, net            254
Goodwill                              3,762
Purchased intangible assets           1,949
Other current and noncurrent assets    106
Accounts payable                      (187)
Deferred revenue                       (32)
Other liabilities                     (478)
Deferred tax liabilities, net         (645)
In-process research and development     88
Total                                 $7,087


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                Weighted-    Amount
                                 Average
                               Useful Life
                                (in Years)
Customer relationships             7.00      $1,346
Technology                         3.50       546
Other                              2.00        57
Total                                        $1,949


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

Unaudited Pro Forma Financial Information




Years Ended                                 July 29, 2006   July 30, 2005
Net sales                                      $29,632         $26,712
Net income                                     $ 5,366         $ 5,406
Net income per share basic                      $ 0.87          $ 0.83
Net income per share diluted                    $ 0.86          $ 0.82


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                               Shares Issued      Purchase     Liabilities
                                               Consideration     Assumed

KiSS Technology A/S                  1             $ 51           $ 18
Metreos Corporation                                 27             1
Sheer Networks, Inc.                                96             7
SyPixx Networks, Inc.                               37             3
Other                                               59             2
    Total                            1             $270           $ 31


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
In-Process   Purchased    Goodwill
   R&D       Intangible
 Expense       Assets
   $ 2          $ 19        $ 39
                 2           25
                 29          56
                 12          29
    1            41          24
   $ 3         $ 103       $ 173
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Fiscal 2005                    Shares      Purchase     Liabilities
                               Issued   Consideration     Assumed

Actona Technologies, Inc.               $ 90            $ 4
Airespace, Inc.                  23               447            11
NetSolve, Incorporated                            146             6
P Cube Inc.                                       213            17
Procket Networks, Inc.                             92            10
Topspin Communications, Inc.                      253            23
Other                                             350            41
    Total                        23     $1,591          $112


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 In-Process    Purchased     Goodwill
R&D Expense    Intangible
                 Assets
   $ 4        $ 21           $ 66
    3                   95            337
                        31             78
    6                   56            150
                        26             76
    4                   67            164
    9                  155            196
   $26        $451           $1,067
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Fiscal 2004                     Shares      Purchase     Liabilities
                                Issued   Consideration     Assumed

Latitude Communications, Inc.            $ 86            $ 29
Other                                               41             7
Total                                    $ 127           $ 36


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 In-Process    Purchased     Goodwill
R&D Expense    Intangible
                 Assets
$ 1           $ 16           $ 60
          2              8          30
$ 3           $ 24           $ 90
CISCO SYSTEMS INC
10-K
09/18/2006

In-Process Research and Development




                                       TECHNOLOGY            CUSTOMER RELATIONSHIPS
                                       Weighted-    Amount         Weighted-
                                        Average                     Average
                                      Useful Life                 Useful Life
                                       (in Years)                  (in Years)

FISCAL 2006
KiSS Technology A/S                      4.50        $ 11             5.50
Metreos Corporation                      4.50         1
Scientific-Atlanta, Inc.                 3.50        546              7.00
Sheer Networks, Inc.                     4.50         16              6.00
SyPixx Networks, Inc.                    5.00         7               5.00
Other                                    5.00         35              6.50
Total                                                $616

FISCAL 2005
Actona Technologies, Inc.                4.50        $ 21
Airespace, Inc.                          4.50         78              3.50
NetSolve, Incorporated                   3.50         24              5.50
P Cube Inc.                              4.50         39              2.50
Procket Networks, Inc.                   7.50         22              2.50
Topspin Communications, Inc.             4.50         39              6.00
Other                                    5.50        125              3.00
Total                                                $348


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
            OTHER
Amount    Weighted-    Amount   Total
           Average
         Useful Life
          (in Years)


 $ 6        5.00        $ 2      $ 19
            2.00         1        2
1,346       2.00         57     1,949
  11        4.50         2        29
  5                               12
  6                               41
$1,374                  $62     $2,052


  $                      $       $ 21
  17                              95
  7                               31
  17                              56
  3         1.00         1        26
  28                              67
  28        2.00         2       155
$ 100                   $ 3     $ 451
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                        Accumulated
                                        Amortization
July 29, 2006                  Gross                    Net
Technology                     $1,052      $(302)      $ 750
Customer relationships         1,535       (175)       1,360
Other                           164        (113)         51
Total                          $2,751      $(590)      $2,161

July 30, 2005                  Gross    Accumulated     Net
                                        Amortization
Technology                     $ 880       $(501)      $ 379
Customer relationships          188         (53)        135
Other                           130         (95)         35
Total                          $1,198      $(649)      $ 549


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

Income Statement




Years Ended                    July 29, 2006   July 30, 2005   July 31, 2004
Reported as:
    Cost of sales                  $ 60             $              $ 13
    Operating expenses             393             227             242
        Total                      $453            $227            $255


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Fiscal Year             Amount
        2007.00         $ 525
        2008.00          466
        2009.00          382
        2010.00          274
        2011.00          209
Thereafter               305
        Total           $2,161


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Fiscal 2006                      Balance at    Scientific-Atlanta
                               July 30, 2005      Acquisition
United States and Canada           $3,304            $3,396
European Markets                    744               338
Emerging Markets                    253                28
Asia Pacific                        266
Japan                               728
        Total                      $5,295            $3,762

Fiscal 2005                      Balance at
                               July 31, 2004
United States and Canada           $2,702
European Markets                    515
Emerging Markets                    177
Asia Pacific                        171
Japan                               633
        Total                      $4,198


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
   Other       Other     Balance at
Acquisitions           July 29, 2006
   $ 120       $(42)       $6,778
     28          17        1,127
     11                     292
     11                     277
     25                     753
   $ 195       $(25)       $9,227

   Other       Other     Balance at
Acquisitions           July 30, 2005
   $ 602         $         $3,304
    229                     744
     76                     253
     95                     266
     95                     728
   $1,097        $         $5,295
CISCO SYSTEMS INC
10-K
09/18/2006

Income Statement




                                                                   Amount
Cumulative effect of accounting change, net of tax benefit of $5     $      567
Variable stock-based compensation                                            58
Deferred stock-based compensation                                            90
Net assets                                                                    7
Total                                                                $      722


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

Compensation Expense Related to Acquisitions and Investments




Years Ended
Stock-based compensation expense related to acquisitions and investments
Cash compensation expense related to acquisitions and investments
Total


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 29, 2006   July 30, 2005   July 31, 2004
     $ 87           $ 154           $ 244
      36              11
     $123           $ 165           $ 244
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                      July 30, 2005   July 31, 2004
Balance at beginning of fiscal year       $ 153           $ 262
Purchase acquisitions                      128              94
Amortization                              (140)           (186)
Canceled unvested options                  (4)             (17)
Balance at end of fiscal year             $ 137           $ 153


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

Balance Sheet




                                                                           July 29, 2006

Inventories:
Raw materials                                                                   $     131
Work in process                                                                       377
Finished goods:
Distributor inventory and deferred cost of sales                                      423
Manufacturing finished goods                                                          236
Total finished goods                                                                  659
Service-related spares                                                                170
Demonstration systems                                                                  34
Total                                                                           $   1,371
Property and equipment, net:
Land, buildings, and leasehold improvements                                     $   3,647
Computer equipment and related software                                             1,352
Production, engineering, and other equipment                                        3,678
Operating lease assets                                                                153
Furniture and fixtures                                                                363
                                                                                    9,193
Less accumulated depreciation and amortization                                    (5,753)
Total                                                                           $   3,440
Other assets:
Deferred tax assets                                                             $     983
Investments in privately held companies                                               574
Income tax receivable                                                                 279
Lease receivables, net                                                                464
Other                                                                                 511
Total                                                                           $   2,811
Deferred revenue:
Service                                                                         $   4,088
Product
Unrecognized revenue on product shipments and other deferred revenue                1,156
Cash receipts related to unrecognized revenue from two-tier distributors              405
Total product deferred revenue                                                      1,561
Total                                                                           $   5,649
Reported as:
Current                                                                         $   4,408
Noncurrent                                                                          1,241
Total                                                                           $   5,649


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 30, 2005


     $             82
                  431

                  385
                  184
                  569
                  180
                   35
     $          1,297

     $        3,492
              1,244
              3,095
                136
                355
              8,322
            (5,002)
     $        3,320

     $          1,308
                  421
                  277
                  353
                  350
     $          2,709

     $          3,618

                1,201
                  223
                1,424
     $          5,042

     $          3,854
                1,188
     $          5,042
CISCO SYSTEMS INC
10-K
09/18/2006

Balance Sheet




                                       July 29, 2006   July 30, 2005

Gross lease receivables                    $ 960           $ 731
Unearned income and other allowances       (188)           (130)
Total                                      $ 772           $ 601
Reported as:
Current                                    $ 308           $ 248
Noncurrent                                  464             353
Total                                      $ 772           $ 601


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

defaults. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-botto




                                       Amortized              Gross            Gross
                                          Cost              Unrealized       Unrealized
                                                              Gains            Losses
  July 29, 2006

Fixed income securities:
U.S. government notes and bonds            $       5,179        $        3       $    (47)
Corporate notes, bonds, and asset-backed           7,950                 2            (88)
securities
Municipal notes and bonds                             809                              (3)
Total fixed income securities                      13,938             5              (138)
Publicly traded equity securities                     467           252                (7)
Total                                      $       14,405       $   257          $   (145)


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 Fair
Value




 $       5,135
         7,864

           806
        13,805
           712
 $      14,517
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




July 30, 2005                                         Amortized              Gross
                                                         Cost              Unrealized
                                                                             Gains

Fixed income securities:
U.S. government notes and bonds                          $         3,453       $        2
Corporate notes, bonds, and asset-backed securities                6,299                3
Municipal notes and bonds                                            705
Total fixed income securities                                     10,457             5
Publicly traded equity securities                                    514           433
Total                                                    $        10,971       $   438


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
  Gross              Fair
Unrealized          Value
  Losses


    $        (25)    $       3,430
             (63)            6,239
              (2)              703
             (90)           10,372
              (6)              941
    $        (96)    $      11,313
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended                    July 29, 2006   July 30, 2005   July 31, 2004
Gross realized gains                $141            $144            $208
Gross realized losses               (88)            (61)            (2)
Total                               $ 53            $ 83            $206


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                      UNREALIZED LOSSES
                                     LESS THAN 12 MONTHS
July 29, 2006                             Fair Value         Gross
                                                           Unrealized
                                                             Losses
U.S. government notes and bonds            $3,263            $(33)
Corporate notes, bonds, and asset-backed   2,420              (18)
securities
Municipal notes and bonds                   146               (1)
Publicly traded equity securities            41               (6)
Total                                      $5,870            $(58)

                                      UNREALIZED LOSSES
                                     LESS THAN 12 MONTHS
July 30, 2005                             Fair Value         Gross
                                                           Unrealized
                                                             Losses
U.S. government notes and bonds             $2,947           $(21)
                                            4,388
Corporate notes, bonds, and asset-backed securities           (52)
Municipal notes and bonds                    260              (2)
Publicly traded equity securities             34              (5)
Total                                       $7,629           $(80)


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
 UNREALIZED LOSSES                          TOTAL
12 MONTHS OR GREATER
     Fair Value        Gross Unrealized   Fair Value     Gross
                            Losses                     Unrealized
                                                         Losses
       $ 644                $(14)           $3,907       $ (47)
       1,968                 (70)           4,388         (88)

       103                   (2)             249          (3)
        2                    (1)              43          (7)
      $2,717                $(87)           $8,587       $(145)

 UNREALIZED LOSSES                          TOTAL
12 MONTHS OR GREATER
     Fair Value        Gross Unrealized   Fair Value     Gross
                            Losses                     Unrealized
                                                         Losses
       $ 220                $ (4)           $3,167       $ (25)
        531                  (11)           4,919         (63)
                                             260          (2)
         4                   (1)              38          (6)
       $ 755                $(16)           $8,384       $ (96)
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                               Amortized     Fair
                                  Cost      Value
Less than 1   year              $ 3,412    $ 3,398
Due in 1 to   2 years            3,752      3,723
Due in 2 to   5 years            5,555      5,470
Due after 5   years              1,219      1,214
Total                           $13,938    $13,805


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> </P>




                                 Amount           Effective Rate (1)
Senior notes:
2009 Notes                       $ 500                  5.27%
2011 Notes                       3,000                  5.39%
2016 Notes                       3,000                  5.62%
Total senior notes               6,500
Other notes                        5
Unamortized discount              (18)
Fair value adjustment            (155)
Total                            $6,332


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

Operations. Cash paid for interest during fiscal 2006 was




Fiscal Year             Amount
        2007.00         $ 233
        2008.00          159
        2009.00          121
        2010.00          105
        2011.00           91
Thereafter               506
        Total           $1,215


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

Purchase Commitments with Contract Manufacturers and Suppliers




                                                                    July 29, 2006

Balance at beginning of fiscal year                                     $ 259
Provision for warranties issued                                          395
Fair value of warranty liability acquired from Scientific-Atlanta         44
Payments                                                                (389)
Balance at end of fiscal year                                           $ 309


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 30, 2005

   $ 239
    411

   (391)
   $ 259
CISCO SYSTEMS INC
10-K
09/18/2006

Income Statement




July 29, 2006                  Notional Amount   Fair Value

Forward contracts:
    Purchased                      $1,376          $ (2)
    Sold                           $ 554           $ (3)
Option contracts:
    Purchased                       $ 591           $ 20
    Sold                            $ 573          $ (2)

July 30, 2005                  Notional Amount   Fair Value

Forward contracts:
    Purchased                      $1,011          $ (5)
    Sold                           $ 450            $ 9
Option contracts:
    Purchased                      $1,028           $ 10
    Sold                           $1,002          $ (7)


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

Comprehensive Income




Years Ended                                           July 29, 2006

Net income                                            $5,580
Other comprehensive income:
Change in unrealized gains and losses on                       (64)
investments, net of tax benefit (expense)
of $57, $(61), and $42 in fiscal 2006, 2005,
and 2004, respectively
    Other                                                         61
Other comprehensive income before minority interest            5,577
Change in minority interest                                        1
        Total                                         $5,578


____________________________
Created by 10-K Wizard.
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July 30, 2005    July 31, 2004

$5,741           $4,401

         (25)              (77)



            10               19
         5,726            4,343
            77             (84)
$5,803           $4,259
CISCO SYSTEMS INC
10-K
09/18/2006

Distribution and Dilutive Effect of Stock Options




Years Ended                                     July 29, 2006   July 30, 2005

Shares of common stock outstanding                  6,059           6,331
Granted and assumed                                  230             244
Canceled/forfeited/expired                           (84)            (65)
Net stock options granted                            146             179
Grant dilution (1)                                   2.4%            2.8%
Exercised                                            136              93
Exercise dilution (2)                                2.2%            1.5%


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended

Stock options granted to   the Named Executive Officers
Stock options granted to   the Named Executive Officers as a percentage of net stock options granted
Stock options granted to   the Named Executive Officers as a percentage of outstanding shares
Cumulative stock options   held by Named Executive Officers as a percentage of total stock options
outstanding

____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
July 29, 2006   July 30, 2005

   3 million       4 million
2.3%            2.2%
0.05%           0.06%
3.4%            4.1%
CISCO SYSTEMS INC
10-K
09/18/2006

General Share-Based Award Information




                                                      STOCK OPTIONS OUTSTANDING
                                        Share-Based             Number              Weighted-
                                           Awards            Outstanding             Average
                                         Available                                Exercise Price
                                         for Grant                                  Per Share
BALANCE AT JULY 26, 2003                    526                 1,303                 $25.29
Granted and assumed                        (195)                 195                  20.00
Exercised                                                        (96)                 10.03
Canceled/forfeited/expired                   52                  (52)                 32.33
Additional shares reserved                   7
BALANCE AT JULY 31, 2004                    390                 1,350                 25.34
Granted and assumed                        (244)                 244                  18.70
Exercised                                                        (93)                  8.44
Canceled/forfeited/expired                   63                  (65)                 31.63
Additional shares reserved                   14
BALANCE AT JULY 30, 2005                    223                 1,436                 25.02
Granted and assumed                        (230)                 230                  18.21
Exercised                                                       (136)                 10.08
Canceled/forfeited/expired                   79                  (84)                 29.53
Restricted stock granted                    (6)
Additional shares reserved                  398
BALANCE AT JULY 29, 2006                    464                 1,446                 $25.08


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

BALANCE AT JULY 29, 2006




                    STOCK OPTIONS OUTSTANDING
    Range of                  Number             Weighted-    Weighted-
Exercise Prices            Outstanding            Average      Average
                                                 Remaining     Exercise
                                                Contractual   Price Per
                                                    Life        Share
                                                 (in Years)
$ 0.01 13.04                    198                 3.90       $10.92
   13.05 17.70                  182                 4.73       15.90
   17.71 18.57                  222                 6.98       18.05
   18.58 19.31                  181                 7.08       19.14
   19.32 20.53                  204                 5.77       19.86
   20.54 38.06                  187                 3.67       26.08
   38.07 72.56                  272                 2.89       54.39
Total                          1,446                4.92       $25.08


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
            STOCK OPTIONS EXERCISABLE
Aggregate             Number            Weighted-
Intrinsic          Exercisable           Average
  Value                                  Exercise
                                        Price Per
                                          Share

 $1,420                152               $10.89
  397                  146               15.80
   36                   62               18.48
                        64               19.13
                       124               19.98
                       149               27.13
                       272               54.40
 $1,853                969               $28.53
Aggregate
Intrinsic
  Value



 $1,072
  334
   2




 $1,408
CISCO SYSTEMS INC
10-K
09/18/2006

Valuation and Expense Information Under SFAS 123(R)




                                       Number          Value
                                     of Shares        Realized
                                    Acquired on
                                      Exercise

Named Executive Officers                 7              $88


____________________________
Created by 10-K Wizard.
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  NUMBER OF SECURITIES                        INTRINSIC VALUE OF
 UNDERLYING UNEXERCISED                    UNEXERCISED IN-THE-MONEY
OPTIONS AT JULY 29, 2006                   OPTIONS AT JULY 29, 2006
      Exercisable          Unexercisable         Exercisable          Unexercisable




          39                    10                   $52                   $8
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Cost of sales product
Cost of sales service
Stock-based compensation expense included in cost of sales

Research and development
Sales and marketing
General and administrative
Stock-based compensation expense included in operating expenses

Total stock-based compensation expense related to employee stock options and employee stock purchases
Tax benefit
Stock-based compensation expense related to employee stock options and employee stock purchases, net of tax
Effect of SFAS 123(R) on basic earnings per share
Effect of SFAS 123(R) on diluted earnings per share


____________________________
Created by 10-K Wizard.
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Amount
  $       50
         112
         162

         346
         427
         115
         888

      1,050
      (294)
  $     756
  $    0.12
  $    0.12
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended                                          July 29, 2006
Net income as reported for prior fiscal years (1)   N/A
Stock-based compensation expense related            $(1,050)
to employee stock options and employee
stock purchases
Tax benefit                                         $294
Stock-based compensation expense related            $ (756)
to employee stock options and employee
stock purchases, net of tax (2)
Net income, including the effect of stock-based     $ 5,580
compensation expense (3)
Diluted net income per share as reported            N/A
for prior fiscal years (1)
Diluted net income per share, including             $ 0.89
the effect of stock-based compensation
expense (3)
____________________________
Created by 10-K Wizard.
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 July 30, 2005       July 31, 2004
$ 5,741             $ 4,401
        (1,628)             (2,025)


              594                 810
          (1,034)             (1,215)


$ 4,707             $ 3,186

$ 0.87              $ 0.62

$ 0.71              $ 0.45
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                               Employee Stock   Employee Stock
                                Option Plans    Purchase Plan

Expected volatility            23.7%            27.5%
Risk-free interest rate        4.3%             3.4%
Expected dividend              0.0%             0.0%
Kurtosis                                 4.30   N/A
Skewness                               (0.62)   N/A


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

Income Statement




Years Ended                                     July 30, 2005     July 31, 2004
Net income as reported                         $ 5,741           $ 4,401
Stock-based compensation expense                       (1,628)           (2,025)
Tax benefit                                                594               810
Stock-based compensation expense, net of tax           (1,034)           (1,215)
Net income pro forma                           $ 4,707           $ 3,186
Basic net income per share as reported         $ 0.88            $ 0.64
Diluted net income per share as reported       $ 0.87            $ 0.62
Basic net income per share pro forma           $ 0.73            $ 0.47
Diluted net income per share pro forma         $ 0.71            $ 0.45


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                               EMPLOYEE STOCK
                                 OPTION PLANS
                                July 30, 2005     July 31, 2004
Expected volatility            39.6%             40.0%
Risk-free interest rate        3.6%              3.9%
Expected dividend              0.0%              0.0%
Expected life (in years)                  3.30              5.60


____________________________
Created by 10-K Wizard.
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EMPLOYEE STOCK
 PURCHASE PLAN
 July 30, 2005     July 31, 2004
33.2%             43.2%
2.0%              2.8%
0.0%              0.0%
           0.60              1.90
CISCO SYSTEMS INC
10-K
09/18/2006

Accuracy of Fair Value Estimates




                                   Pension Plans   Restoration   SERPs
                                                       Plan
Projected benefit obligations          $ 146           $ 9       $ 59
Fair value of plan assets               (95)
Accrued benefit liability               $ 51           $ 9       $ 59


____________________________
Created by 10-K Wizard.
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Total

$ 214
 (95)
$ 119
CISCO SYSTEMS INC
10-K
09/18/2006

11. Income Taxes




                                Pension Plans   Restoration   SERPs
                                                    Plan
Discount rate                       5.9%            5.9%      6.4%
Rate of compensation increase       5.0%            5.0%      5.0%


____________________________
Created by 10-K Wizard.
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Retiree Medical
 and Life Plans
      6.2%
      N/A
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended           July 29, 2006   July 30, 2005   July 31, 2004
Federal:
Current                   $1,877         $1,340           $ 968
Deferred                  (292)           497              469
                          1,585          1,837            1,437
State:
Current                    215             496            230
Deferred                   (20)           (292)           (19)
                           195             204            211
Foreign:
Current                    304            404             274
Deferred                   (31)          (150)            102
                           273            254             376
Total                     $2,053         $2,295          $2,024


____________________________
Created by 10-K Wizard.
http://www.10kwizard.com/
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended             July 29, 2006   July 30, 2005   July 31, 2004
United States               $2,685          $7,028          $2,743
International               4,948           1,008           4,249
Total                       $7,633          $8,036          $6,992


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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended                               July 29, 2006   July 30, 2005
Federal statutory rate                        35.0%           35.0%
Effect of:
State taxes, net of federal tax benefit       1.80            1.80
Foreign income at other than U.S. rates      (8.70)          (6.70)
Tax audit settlement                         (1.60)          (1.40)
Other, net                                    0.40           (0.10)
Total                                        26.9%           28.6%


____________________________
Created by 10-K Wizard.
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July 31, 2004
    35.0%

    1.80
   (8.30)

    0.40
   28.9%
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                     July 29, 2006   July 30, 2005
Current                 $ 1,604         $ 1,475
Noncurrent                915            1,308
Total                   $ 2,519         $ 2,783


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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                                            July 29, 2006
ASSETS
Allowance for doubtful accounts and returns                     $ 290
Sales-type and direct-financing leases                           104
Inventory allowances and capitalization                          224
Investment provisions                                            273
In-process R&D, goodwill, and purchased intangible assets        473
Deferred revenue                                                 825
Credits and net operating loss carryforwards                     526
SFAS 123(R) stock-based compensation expense                     326
Other                                                            652
Gross deferred tax assets                                       3,693
Valuation allowance                                              (45)
Total deferred tax assets                                       3,648
LIABILITIES
Purchased intangible assets                                     (695)
Unremitted earnings of foreign subsidiaries                     (100)
Unrealized gains on investments                                 (104)
Depreciation                                                    (185)
Other                                                            (45)
Total deferred tax liabilities                                 (1,129)
Total net deferred tax assets                                   $2,519


____________________________
Created by 10-K Wizard.
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July 30, 2005

   $ 264
    104
    239
    313
    501
    770
    571

    620
   3,382
    (85)
   3,297

   (189)

   (161)
   (153)
    (11)
   (514)
   $2,783
CISCO SYSTEMS INC
10-K
09/18/2006

12. Segment Information and Major Customers




Years Ended                          July 29, 2006   July 30, 2005   July 31, 2004
Net sales:
United States and Canada                $15,785        $ 13,298        $ 11,631
European Markets                         6,079          5,692           5,278
Emerging Markets                         2,476          1,805           1,450
Asia Pacific                             2,853          2,486           2,230
Japan                                    1,291          1,520           1,456
Total                                   $28,484        $ 24,801        $ 22,045
Gross margin:
United States and Canada                $10,234        $ 8,784         $ 7,838
European Markets                         4,057          3,916           3,661
Emerging Markets                         1,682          1,267           1,019
Asia Pacific                             1,861          1,671           1,532
Japan                                     913           1,033           1,076
Total                                   $18,747        $ 16,671        $ 15,126


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Years Ended                    July 29, 2006   July 30, 2005   July 31, 2004
Net sales:
Routers                           $ 6,005         $ 5,498         $ 5,406
Switches                           10,833          9,950           8,838
Advanced technologies              6,228           4,634           3,530
Other                               851             771             776
Product                            23,917          20,853          18,550
Service                            4,567           3,948           3,495
Total                             $28,484         $24,801         $22,045


____________________________
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                                                                  July 29, 2006
Property and equipment, net:
United States                                                         $3,082
International                                                          358
Total                                                                 $3,440

13. Net Income per Share
The following table presents the calculation
of basic and diluted net income per share
(in millions, except per-share amounts):


Years Ended                                                       July 29, 2006
Income before cumulative effect of accounting change                  $5,580
Cumulative effect of accounting change, net of tax
Net income                                                            $5,580
Weighted-average shares basic                                         6,158
Effect of dilutive potential common shares                             114
Weighted-average shares diluted                                       6,272
Income per share before cumulative effect of accounting change:
Basic                                                                 $ 0.91
Diluted                                                               $ 0.89
Per-share amount of cumulative effect of accounting change:
Basic                                                                   $
Diluted                                                                 $
Net income per share:
Basic                                                                 $ 0.91
Diluted                                                               $ 0.89


____________________________
Created by 10-K Wizard.
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July 30, 2005   July 31, 2004

   $2,959          $2,919
    361             371
   $3,320          $3,290




July 30, 2005   July 31, 2004
    $5,741          $4,968
                    (567)
   $5,741           $4,401
   6,487            6,840
    125              217
   6,612            7,057

   $ 0.88          $ 0.73
   $ 0.87          $ 0.70

     $             $ 0.09
     $             $ 0.08

   $ 0.88          $ 0.64
   $ 0.87          $ 0.62
CISCO SYSTEMS INC
10-K
09/18/2006

Stock Market Information




Quarters Ended                              July 29, 2006   Apr. 29, 2006
Net sales                                      $ 7,984         $ 7,322
Gross margin                                   $ 5,145         $ 4,726
Net income (1)                                 $ 1,544         $ 1,400
Net income per share basic                      $ 0.25          $ 0.23
Net income per share diluted                    $ 0.25          $ 0.22
Cash and cash equivalents and investments      $ 17,814        $ 18,183


____________________________
Created by 10-K Wizard.
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Jan. 28, 2006   Oct. 29, 2005   July 30, 2005   Apr. 30, 2005
   $ 6,628         $ 6,550         $ 6,581         $ 6,187
   $ 4,466         $ 4,410         $ 4,468         $ 4,135
   $ 1,375         $ 1,261         $ 1,540         $ 1,405
    $ 0.22          $ 0.20          $ 0.24          $ 0.22
    $ 0.22          $ 0.20          $ 0.24          $ 0.21
   $ 14,989        $ 13,490        $16,055         $16,149
Jan. 29, 2005   Oct. 30, 2004
   $ 6,062         $ 5,971
   $ 4,053         $ 4,015
   $ 1,400         $ 1,396
    $ 0.21          $ 0.21
    $ 0.21          $ 0.21
   $16,525         $17,727
CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




                         2006.00               2005.00
Fiscal                     High        Low       High        Low
First quarter            $ 19.74   $   16.83   $ 21.24   $   17.53
Second quarter           $ 19.43   $   16.87   $ 20.35   $   17.41
Third quarter            $ 22.00   $   17.82   $ 18.80   $   17.01
Fourth quarter           $ 22.00   $   17.45   $ 20.25   $   17.16


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Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

SUBSIDIARIES OF THE REGISTRANT




Subsidiaries                                      State Or Other
                                                 Jurisdiction of
                                                 Incorporation or
                                                   Organization
3010081 Nova Scotia Company                           Canada
3045848 Nova Scotia Company                           Canada
3048504 Nova Scotia Company                           Canada
3120578 Nova Scotia Company                           Canada
3801110 Canada Inc.                                   Canada
Actona Technologies Ltd.                              Israel
Actona Technologies, Inc.                            Delaware
Airespace EMEA Limited                            United Kingdom
Airespace K.K.                                        Japan
Airespace Wireless Networks Private Limited           India
Airespace, Inc.                                      Delaware
Aironet Canada Inc.                                   Canada
Aironet Canada Limited                                Canada
Asset Acquisition Corporation                        Delaware
Audium Corporation                                   Delaware
AYR Networks (UK) Limited                         United Kingdom
BarcoNet Pty. Ltd.                                  Australia
Capital Acquisition Corporation                      Delaware
Cisco Cable Products and Solutions A/S               Denmark
Cisco Do Brasil LTDA.                                 Brazil
Cisco Linksys Kiss ApS                               Denmark
Cisco Managed Solutions, Inc.                        Delaware
Cisco Photonics Italy S.r.l.                          Italy
Cisco Ravenscourt LLC                                Delaware
Cisco SBAIF III, Inc.                                Delaware
Cisco Systems (Argentina) S.A.                      Argentina
Cisco Systems (Bermuda) Ltd.                         Bermuda
Cisco Systems (Bermuda) Holdings Ltd.                Bermuda
Cisco Systems (Bermuda) International                Bermuda
IP Management Ltd.
Cisco Systems (China) Information Technology          China
Services Limited
Cisco Systems (China) Networking Technology           China
Co., Ltd.
Cisco Systems (China) Research and Development        China
Co., Ltd.
Cisco Systems (Colombia) Limitada                    Colombia
Cisco Systems (Czech Republic) S.R.O.             Czech Republic
Cisco Systems (Ethiopia) PLC                         Ethiopia
Cisco Systems (HK) Limited                          Hong Kong
Cisco Systems (India) Ltd.                           Delaware
Cisco Systems (India) Private Limited                 India
Cisco Systems (Italy) S.r.l.                          Italy
Cisco Systems (Jordan)                                Jordan


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Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Subsidiaries                                         State Or Other
                                                    Jurisdiction of
                                                    Incorporation or
                                                      Organization
Cisco Systems (Korea) Limited                            Korea
Cisco Systems (Malaysia) Sdn Bhd                        Malaysia
Cisco Systems (Nigeria) Limited                         Nigeria
Cisco Systems (Puerto Rico) Corp.                       Delaware
Cisco Systems (Scotland) Limited                        Scotland
Cisco Systems (Senegal) SUARL                           Senegal
Cisco Systems (South Africa) (Proprietary)            South Africa
Limited
Cisco Systems (Spain) S.L.                               Spain
Cisco Systems (Sweden) AB                                Sweden
Cisco Systems (Switzerland) GmbH                      Switzerland
Cisco Systems (Switzerland) Investments                 Bermuda
Ltd.
Cisco Systems (Thailand) Limited                        Thailand
Cisco Systems (USA) Pte. Ltd.                          Singapore
Cisco Systems Algeria EURL                              Algeria
Cisco Systems Australia Pty Limited                    Australia
Cisco Systems Austria GmbH                              Austria
Cisco Systems Belgium S.P.R.L.                          Belgium
Cisco Systems Bulgaria EOOD                             Bulgaria
Cisco Systems Canada Co./Les Systemes                    Canada
Cisco Canada Cie
Cisco Systems Capital (Australia) Pty                  Australia
Limited
Cisco Systems Capital (India) Private                    India
Limited
Cisco Systems Capital (Korea) Limited                    Korea
Cisco Systems Capital Asia Pte. Ltd.                   Singapore
Cisco Systems Capital Canada Co./Les Systemes            Canada
Cisco Capital Canada Cie
Cisco Systems Capital China Corporation                  China
Cisco Systems Capital Corp.                              Nevada
Cisco Systems Capital France SAS                         France
Cisco Systems Capital Funding, LLC                      Delaware
Cisco Systems Capital GmbH                              Germany
Cisco Systems Capital Italy S.r.l.                       Italy
Cisco Systems Capital K.K.                               Japan
Cisco Systems Capital Netherlands B.V.                Netherlands
Cisco Systems Capital Sdn. Bhd.                         Malaysia
Cisco Systems Capital South Africa (Proprietary)      South Africa
Limited
Cisco Systems Capital Spain, S.L.                        Spain
Cisco Systems Capital Thailand Limited                  Thailand
Cisco Systems Chile S.A.                                 Chile
Cisco Systems Co.                                        Canada
Cisco Systems Costa Rica, Sociedad Anonima             Costa Rica
Cisco Systems Croatia Ltd. For Trade                    Croatia
Cisco Systems Cyprus Ltd.                                Cyprus
Cisco Systems Danmark ApS                               Denmark
Cisco Systems de Mexico, S.A. de C.V.                    Mexico
Cisco Systems Dominicana, S.A.                     Dominican Republic
____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Subsidiaries                                    State Or Other
                                               Jurisdiction of
                                               Incorporation or
                                                 Organization
Cisco Systems Ecuador S.A.                         Ecuador
Cisco Systems Egypt Ltd.                            Egypt
Cisco Systems El Salvador, Ltda. de C.V.         El Salvador
Cisco Systems Estonia OU                           Estonia
Cisco Systems Finance International                Ireland
Cisco Systems Finance International Holdings       Ireland
I Limited
Cisco Systems Finance International Holdings       Ireland
II Limited
Cisco Systems Finance International Holdings       Ireland
III Limited
Cisco Systems Finance International Holdings       Ireland
IV Limited
Cisco Systems Finance International Holdings       Ireland
V Limited
Cisco Systems Finance International Holdings       Ireland
VI Limited
Cisco Systems Finance, Inc.                       California
Cisco Systems Finland OY                           Finland
Cisco Systems France Sarl                           France
Cisco Systems GmbH                                 Germany
Cisco Systems Holding GmbH & Co. KG                Germany
Cisco Systems Holdings I, Inc.                    California
Cisco Systems Hungary Ltd. / Cisco Systems         Hungary
Hungary
Cisco Systems Insurance Services Ltd.              Bermuda
Cisco Systems International B.V.                 Netherlands
Cisco Systems International Holdings               Bermuda
Ltd.
Cisco Systems International Sarl                 Switzerland
Cisco Systems Internetworking (Ireland)            Ireland
Limited
Cisco Systems Internetworking Hellas                Greece
S.A.
Cisco Systems Internetworking Iletisim              Turkey
Hizmetleri Limited Sirketi
Cisco Systems Island Ehf.                          Iceland
Cisco Systems Israel Ltd.                           Israel
Cisco Systems K.K.                                  Japan
Cisco Systems Limited                           United Kingdom
Cisco Systems Limited                               Nevada
Cisco Systems Luxembourg International            Luxembourg
S.a.r.l.
Cisco Systems Luxembourg S.a.r.l.                 Luxembourg
Cisco Systems Macedonia Dooel Skopje              Macedonia
Cisco Systems Management B.V.                    Netherlands
Cisco Systems Management GmbH                      Germany
Cisco Systems Management LLC                       Delaware
Cisco Systems Management Ltd.                      Bermuda
Cisco Systems Netherlands Holdings B.V.          Netherlands
Cisco Systems New Zealand Limited                New Zealand
Cisco Systems Norway AS                             Norway
Cisco   Systems   O.I.A. (1998) Ltd.            Israel
Cisco   Systems   Pakistan (Private) Limited   Pakistan
Cisco   Systems   Panama S. De R.L.             Panama
Cisco   Systems   Peru S.A.                      Peru


____________________________
Created by 10-K Wizard.
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CISCO SYSTEMS INC
10-K
09/18/2006

NO TITLE




Subsidiaries                                     State Or Other
                                                Jurisdiction of
                                                Incorporation or
                                                  Organization
Cisco Systems Poland Sp. Z O.O.                      Poland
Cisco Systems Portugal Sistemas Informaticos,       Portugal
Sociedade Unipessoal, Limitada
Cisco Systems Romania S.R.L.                        Romania
Cisco Systems Sales & Service Y.K.                   Japan
Cisco Systems Services B.V.                       Netherlands
Cisco Systems Slovakia, SPOL. S R.O.                Slovakia
Cisco Systems Taiwan Ltd.                            Taiwan
Cisco Systems Venezuela, C.A.                      Venezuela
Cisco Systems Vietnam Limited                       Vietnam
Cisco Systems Wireless Networking (Australia)      Australia
Pty Limited
Cisco Systems-Linksys (Asia) Pte. Ltd.             Singapore
Cisco Technology, Inc.                             California
Cisco-Latitude (UK) Limited                      United Kingdom
Cisco-Linksys (Chengdu) Networking Technology        China
Co., Ltd.
Cisco-Linksys (HK) Limited                         Hong Kong
Cisco-Linksys K.K.                                   Japan
Cisco-Linksys LLC                                  California
CSI BD (Mauritius)                                 Mauritius
CSI Mauritius Inc.                                 Mauritius
dynamicsoft Inc.                                    Delaware
Fibrecore Limited                                United Kingdom
Fineground Networks, Inc.                           Delaware
Infogear Technology (Israel) Ltd.                    Israel
Latitude Communications Pte. Ltd.                  Singapore
M.I. Secure Corporation                             Delaware
Metaplex, Inc.                                   North Carolina
Metreos Corporation                                 Delaware
Nemo Systems. Inc.                                  Delaware
Netsolve LLC                                        Delaware
Parc Technologies Limited                        United Kingdom
P-Cube Inc.                                         Delaware
P-Cube Ltd.                                          Israel
Protego Networks LLC                                Delaware
PT Cisco Systems Indonesia                         Indonesia
Radiata, Inc.                                       Delaware
Riverhead Networks (Israel) Ltd.                     Israel
SA Japan K.K.                                        Japan
SA Limited Enterprises LLC                          Delaware
SA Management Enterprises LLC                       Delaware
Sameco, S.A. De C.V.                                 Mexico
Sammex, L.P.                                         Texas
Scientific-Atlanta (HK) Limited                    Hong Kong
Scientific-Atlanta (Shanghai) Company                China
Limited
Scientific-Atlanta (Singapore) Pte.                Singapore
Ltd.

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CISCO SYSTEMS INC
10-K
09/18/2006

Subsidiaries




Subsidiaries                                 State Or Other
                                            Jurisdiction of
                                            Incorporation or
                                              Organization
Scientific-Atlanta Argentina S.A.              Argentina
Scientific-Atlanta Belgium NV                   Belgium
Scientific-Atlanta Canada Inc.                   Canada
Scientific-Atlanta Central Europe GmbH          Germany
Scientific-Atlanta China, Inc.                 California
Scientific-Atlanta De Mexico, S. De R.L.         Mexico
De C.V.
Scientific-Atlanta Denmark A/S                  Denmark
Scientific-Atlanta Do Brasil Ltda.               Brazil
Scientific-Atlanta Eastern Europe Sp.            Poland
Z O.O.
Scientific-Atlanta Europe NV                    Belgium
Scientific-Atlanta Europe, Inc.                 Georgia
Scientific-Atlanta European Finance             Belgium
Scientific-Atlanta Export Corporation           Barbados
Scientific-Atlanta Financial Enterprises,       Georgia
LLC
Scientific-Atlanta Foundation, Inc.             Georgia
Scientific-Atlanta France S.A.                   France
Scientific-Atlanta Iberia, S.L.                  Spain
Scientific-Atlanta India Sales & Service         India
Private Limited
Scientific-Atlanta India Technology              India
Private Limited
Scientific-Atlanta International, Inc.          Georgia
Scientific-Atlanta Italy S.R.L.                  Italy
Scientific-Atlanta Korea Co., Ltd.               Korea
Scientific-Atlanta Latin America, Inc.          Georgia
Scientific-Atlanta Malaysia Sdn. Bhd.           Malaysia
Scientific-Atlanta Netherlands B.V.           Netherlands
Scientific-Atlanta Pan Asia, Inc.               Georgia
Scientific-Atlanta Pty. Limited                Australia
Scientific-Atlanta Strategic Investments,       Delaware
LLC
Scientific-Atlanta UB Video, Inc.               Georgia
Scientific-Atlanta Ventas Y Servicios,           Mexico
S.A. de C.V.
Scientific-Atlanta Western Europe Limited    United Kingdom
Scientific-Atlanta, Inc.                        Georgia
Sheer Networks Asia Pacific Pte. Ltd.          Singapore
Sheer Networks Latin America, S. de R.L.         Mexico
de C.V.
Sheer Networks Ltd.                              Israel
Sheer Networks Mexico, S.A. de C.V.              Mexico
Sheer Networks, Inc.                            Delaware
Simac Product Market Research B.V.            Netherlands
Sypixx Networks, Inc.                            Nevada
Telebit Corporation                            California
Topspin Communication Technologies India         India
Private Limited
Topspin Communications LLC                      Delaware
UB Video Inc.                                    Canada
UB Video Tunisia Ltd.          Tunisia


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