CISCO SYSTEMS, INC. | 2013 | FY | 3


Shareholders’ Equity
(a)
Cash Dividends on Shares of Common Stock
During fiscal 2013, the Company declared and paid cash dividends of $0.62 per common share, or $3.3 billion, on the Company’s outstanding common stock. During fiscal 2012, the Company declared and paid cash dividends of $0.28 per common share, or $1.5 billion, on the Company’s outstanding common stock.
On September 3, 2013, the Company’s Board of Directors declared a quarterly dividend of $0.17 per common share to be paid on October 23, 2013 to all shareholders of record as of the close of business on October 3, 2013. Any future dividends will be subject to the approval of the Company’s Board of Directors.
(b)
Stock Repurchase Program
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of July 27, 2013, the Company’s Board of Directors had authorized an aggregate repurchase of up to $82 billion of common stock under this program, and the remaining authorized repurchase amount was $3.1 billion with no termination date. A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts):
 
Shares
Repurchased
 
Weighted-
Average Price
per Share
 
Amount
Repurchased
Cumulative balance at July 30, 2011
3,478

 
$
20.64

 
$
71,773

Repurchase of common stock under the stock repurchase program
262

 
16.64

 
4,360

Cumulative balance at July 28, 2012
3,740

 
$
20.36

 
$
76,133

Repurchase of common stock under the stock repurchase program
128

 
21.63

 
2,773

Cumulative balance at July 27, 2013
3,868

 
$
20.40

 
$
78,906


The purchase price for the shares of the Company’s stock repurchased is reflected as a reduction to shareholders’ equity. The Company is required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings and (ii) a reduction of common stock and additional paid-in capital. Issuance of common stock and the tax benefit related to employee stock incentive plans are recorded as an increase to common stock and additional paid-in capital.
(c)
Other Repurchases of Common Stock
For the years ended July 27, 2013 and July 28, 2012, the Company repurchased approximately 16 million and 12 million shares, or $330 million and $200 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units.
(d)
Preferred Stock
Under the terms of the Company’s Articles of Incorporation, the Board of Directors may determine the rights, preferences, and terms of the Company’s authorized but unissued shares of preferred stock.
(e)
Accumulated Other Comprehensive Income
The components of AOCI, net of tax, and other comprehensive income (loss), excluding noncontrolling interest, are summarized as follows (in millions):
 
Net Unrealized Gains on Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Other
 
Accumulated Other Comprehensive Income
BALANCE AT JULY 31, 2010
$
333

 
$
27

 
$
263

 
$
623

Other comprehensive income (loss) attributable to Cisco Systems, Inc.
154

 
(21
)
 
538

 
671

BALANCE AT JULY 30, 2011
487

 
6

 
801

 
1,294

Other comprehensive income (loss) attributable to Cisco Systems, Inc.
(78
)
 
(59
)
 
(496
)
 
(633
)
BALANCE AT JULY 28, 2012
409

 
(53
)
 
305

 
661

Other comprehensive income (loss) attributable to Cisco Systems, Inc.
(30
)
 
61

 
(84
)
 
(53
)
BALANCE AT JULY 27, 2013
$
379

 
$
8

 
$
221

 
$
608


us-gaap:StockholdersEquityNoteDisclosureTextBlock