1、Reimagining the future of connectivity2022Annual ReportAbout CiscoCisco(Nasdaq:CSCO)is the worldwide leader in technology that powers the internet.Discover more at and follow us on Twitter at Cisco.Our strategyHelp customers connect,secure and automate to accelerate their digital agility in a cloud-

2、first world.Customer Priorities Reimagine Applications Power Hybrid Work Transform Infrastructure Secure the EnterpriseTo execute on our strategy and address our customer priorities,we are focusing on six strategic pillars:Secure,Agile Networks;Hybrid Work;Optimized Application Experiences;End-to-En

3、d Security;Internet for the Future;and Capabilities at the Edge.Technology Megatrends Adoption of a Cloud Experience Applications are now the Lifeline of Every Business Shift to Hybrid Work Security is Moving to the Cloud Transition to 5G&Wi-Fi 6 Apps&Workloads are Moving Closer to Users&DevicesOur

4、Innovation Promise Customer&User Experience Simplicity&Cloud-First Flexible Consumption Visibility&Automation Security Built-In Interoperability&QualityOur purposeTo Power an Inclusive Futurefor AllWe are committed to leading the way,to inspiring change,to seeing the world through the eyes of others

5、,and to stepping up to the challenges of inequity to create new possibilities fortomorrow.Our commitmentTo drive the most trusted customer experience in the industry with our extraordinary people and great technologiesOur employees bring talent and ingenuity to everything we do,from designing produc

6、ts and solutions and helping to protect sensitive data to helping us Power an Inclusive FutureforAll.Table of contents2Letter to stockholders4Financial highlights for fiscal 20226Cisco strategy7Leadership8Corporate governance12Our purposeIntroduction to summary reportThis summary provides an overvie

7、w of Cisco.It does not contain all of the information you should consider.Please review our latest Annual Report on Form 10-K on our website.Please also review our Proxy Statement for our 2022 Annual Meeting of Stockholders,and our reports related to corporate responsibility(our Purpose),which inclu

8、des our ESG initiatives,also available on .FORWARD-LOOKING STATEMENTSThis Summary Report and our Annual Report on Form 10-K(“Annual Report”)contain projections and other forward-looking statements regarding future events or the future financial performance of Cisco,including future operating results

9、.These projections,goals,and statements are only predictions.Actual events or results may differ materially from those in the projections,goals,or other forward-looking statements.See Ciscos filings with the Securities and Exchange Commission,including its most recent Annual Report for a discussion

10、of important risk factors that could cause actual events or results to differ materially from those in the projections,goals,or other forward-looking statements.1Cisco 2022 Annual ReportLetter to stockholdersTo our stockholders,Fiscal 2022 was a complex year,and I am incredibly proud of how our team

11、s navigated through the many challenges that we saw throughout the year.Thanks to their determination,perseverance,and unwavering commitment to our customers,partners,and to each other,we ended the year strong.We set several new records for the company including product orders,ending backlog,net inc

12、ome,EPS,Annualized Recurring Revenue(ARR),and Remaining Performance Obligations(RPO).These were strong results,particularly considering the incredibly dynamic environment in which we continue to operate.This tells me that our investments in accelerated innovation,continued strong customer demand,and

13、 our ability to execute with excellence,put us in a position of strength for the year ahead,andbeyond.We were delighted to engage with our customers in person once again at Cisco Live and other events throughout the year,and we continue to hear that their technology priorities have become even more

14、urgent.In this massively distributed world of hybrid work and hybrid cloud,the Internet of Things is exploding,more and more devices are being connected via the network,and the cyber threat landscape is shifting and expanding.Our customers need to reimagine their applications,power hybrid work,secur

15、e their enterprise,and transform their infrastructure.We are committed to being a trusted partner on their digital transformation journeys and doing all we can to help them succeed.Navigating through turbulenttimesCisco has been in business for almost 40 years,so we are no stranger to challenging ti

16、mes.The extraordinary events of this past yearincluding the ongoing COVID-19 pandemic,significant supply constraints,Russias invasion of Ukraine,and rising inflationhave only reinforced our focus on what matters most:helping our customers and partners,our people,and the communities in which weoperat

17、e.It has become clear to me that dealing with increasing complexity is the new reality for all of us.What is also clear is that technology is an essential driver of productivity and economic growth.We have the opportunityand the responsibilityto leverage the power of technology in this new reality,t

18、o continue to drive transformation and to solve some of the worlds biggestproblems.I am confident the decisions we made and the multiple actions we took over the past two years are helping to offset cost inflation and improve our resiliency.These include adding new and leveraging alternative supplie

19、rs,redesigning hundreds of products to use available components with similar capabilities,targeted price increases,and several other creative solutions,all of which position us well for the future.The combination of these actions with the tremendous efforts of our world-class supply chain and engine

20、ering teams,and the investments we have made in building capacity to meet growth,has the potential to drive continued momentum into fiscal 2023.Investing in innovationEnterprises everywhere need secure,agile networks that can accommodate distributed users,devices,data,and applications.Our latest clo

21、ud-delivered innovations across our networking,security,collaboration,and optimized applications portfolios are designed to help organizations drive productivity and resiliency.They include cloud management for the Catalyst switching portfolio from the Meraki dashboard;a Nexus Cloud SaaS(Software-as

22、-a-Service)offer powered by Intersight to help our customers deploy and manage their Nexus data center networks from the cloud;and the Cisco Security Cloud,designed to be the most open security platform available,enabling customers to connect their end-to-end securityarchitecture.In fiscal 2022,we u

23、nveiled our vision for Cisco Predictive Networks,an industry first predictive analytics engine for network management which will gather and integrate data from many sources,learn patterns to predict user experience issues,and provide problem-solving options.In June,we introduced ThousandEyes WAN Ins

24、ights,which we will make available to our SD-WAN customers as the first step towards delivering on this vision.Customers are rearchitecting their applications and they need modern tools to help them do this.We launched Panoptica and Calisti,two new cloud-native,API-first tools for faster andbetter a

25、pplication development,as well as AppDynamics Cloud,a cloud-native observability“Technology is an essential driver of productivity and economic growth.We have the opportunityand the responsibilityto leverage the power of technology in this new reality,to continue to drive transformation and to solve

26、 some of the worlds biggestproblems.”Chuck Robbins Chair and Chief Executive Officer2Cisco 2022 Annual Reportplatform for modern applications which helps remediate application performance issues with business context andinsights.And,for customers operating mass-scale networks,we introduced an enhanc

27、ed routed optical networking platform which can help drive savings of up to 45%in power and up to 70%in real estate required for equipment.Our Silicon One based Cisco 8000 routers,the fastest growing product family in Ciscos history,combined with optics from Acacia,create a durable foundation for th

28、e development of the Internet for the Future,400G andbeyond.These innovations,together with many others across our portfolio,are intended to drive simplicity and provide the best unified experience for our customers.Offering our customers choice is an important factor in that experience,and we conti

29、nue to find ways to do so through flexible consumption models,disaggregating and virtualizing certain technologies,and delivering as much as we can as-a-Service.Cisco+Secure Connect,which allows customers to quickly deploy Secure Access Service Edge(SASE)and eases day-to-day operations through a clo

30、ud-managed platform,is a great example and the latest of several as-a-service offers,and we have more in the pipeline.Successfully transforming ourbusinessWe continue to make solid progress in our business transformation which we believe is strengthening our position in the market by helping us to d

31、eliver innovation and choice for our customers in new ways,all while giving us greater visibility,resiliency,and predictability.In fiscal 2022,we generated over$15 billion of software revenue,81%of which was subscription-based.Total subscription revenue,including services sold as subscriptions,was o

32、ver$22 billion,and represented 43%of Ciscos total revenue.Our subscription revenue drives ARR and RPO which are the best indicators of our progress in our business transformation.The combination of our ARR,RPO and our record backlog gives us excellent visibility and a high degree of confidence in ou

33、r futurerevenues.Living our purposeSince the beginning,Cisco has focused on innovation,integrity and doing whats right.By operating a successful business,we are empowered to step up to the many societal and environmental challenges we see around the world.We redefined our purposeto power an inclusiv

34、e future for allin 2020,and we couldnt have imagined how relevant it would be in todays world.To help fulfill our purpose,we leverage our technology and catalyze our networks,partners,and people to make a positive impact in communities worldwide and on the planet.Our purpose guides us to focus our e

35、fforts where we know we can make most impact.This past year,we committed to reaching net-zero greenhouse gas emissions across our value chain by 2040.We recently refined our goals and near-term targets and were one of the first technology and hardware equipment companies to have its net-zero goals v

36、alidated under the Science Based Targets initiative(SBTi)Net-Zero Standard,the worlds first framework for corporate net-zero target setting in line with climate science.The use of our sold products is the greatest contributor to our overall carbon footprint,so improving the energy efficiency of our

37、hardware and solutionsby integrating Silicon One across our portfolio,for exampleis a high priority,as it also helps our customers meet their own emissions reduction goals.We also remain committed to doing all we can to provide inclusive access to training and education in the key digital skills tha

38、t are in such high demand across all industries.In the 25 years since we launched the Cisco Networking Academy in 1997,we have reached more than 17 million students,95%of whom say the program helped them obtain a job or educational opportunity.This past year,to accommodate even more students,we crea

39、ted SkillsForA,providing free online technology courses backed by Ciscos expertise and connected to real career paths in the digital economy.Im incredibly proud of how our teams around the world have rallied around our purpose.During this past year,more than 80%of employees have given back to their

40、communities.I have no doubt that our purpose-driven culture is a primary reason why Cisco has been named the number one Great Place to Work in 14 countries around the world.While we continue to make good progress on our priorities and work in service of our purpose,we recognize there is always much

41、more to be done to ensure that people and ecosystems can thrive together on a liveableplanet.Confidence in the futureAs we enter fiscal 2023,we see tremendous opportunity ahead.While we expect supply chain challenges to persist,we are encouraged by the early signs of supply easing that we saw at the

42、 end of fiscal 2022,and we expect to see gradual improvements throughout the year that will enable us to get our products into our customers handsfaster.We will continue to focus on simplification as we develop our platform strategy and offerings,while helping to drive sustainability in our products

43、.There is a greater sense of urgency from our customers and partners to leverage leading-edge technologies to deliver on their strategic objectives and our innovation is helping them navigate an increasing amount of complexity.While no company is immune to macro trends,we are fortunate that there ar

44、e currently more technology transitions occurring concurrently than Ive seen in 20 years.Given the strength of our portfolio,our continued investment in accelerated innovation,and the commitment of our teams,we believe the multi-year megatrends of hybrid cloud,hybrid work,security,IoT,400G and beyon

45、d,5G and Wi-Fi 6,as well as the move towards application observability,will provide tailwinds to our long-term growth.We also believe that the focus on sustainability and the climate crisis will continue to be positive for our business.We feel that Cisco is well positioned for whatever the future ma

46、y hold.Thank you for your continued support.Chuck Robbins Chair and Chief Executive Officer October 13,20223Cisco 2022 Annual ReportFinancial highlights for fiscal 2022All amounts on an annual basis.Revenue trend*FY22 RevenueBy geographical segment*($B)Operating cash flowMargins(%)($B)$13.22022$15.5

47、2021$15.42020$51.6$13.5$38.02022$49.8$13.8$36.02021$49.3$13.3$36.02020Product revenueServices revenue4Cisco 2022 Annual Report58%Americas27%EMEA16%APJCBy product category and services*Amounts may not sum and percentages may not recalculate due to rounding46%10%9%Secure,Agile Networks Internet for th

48、eFutureCollaboration7%1%26%End-to-End SecurityOptimized Application ExperiencesServices20202021202264.3%27.6%64.0%25.8%62.5%27.1%Gross margin Operating marginFinancial highlights for fiscal 2022Primary uses of cash in FY22Capital allocationDividends paid per share($)Share repurchases and diluted sha

49、re count(Millions)$1.42$1.46$1.50594,2544,236642020Dividends paid per shareCapital allocationShare repurchases and diluted share count$B$M$1.42$1.46$1.50594,2544,2366420204,192Absolute number ofshares repurchasedDiluted share count“We had a solid fiscal year in a highly complex

50、 environment.The demand for our products and services is strong as we drive innovation through continued investment and the shift to more recurring revenue,delivering growth and driving shareholder value.”R.Scott HerrenEVP and Chief Financial OfficerTotal stockholder return$272$183$202020

51、1920182017Cisco Systems,Inc.S&P 500S&P Information TechnologyTotal stockholder returnComparison of 5-year cumulative total return*among Cisco Systems,Inc.,the S&P 500 Index,and the S&P Information Technology Index45%Sharerepurchases14%Repaymentof debt36%Dividends3%Capitalexpenditures2%Acquisitions,n

52、etThis graph shows a 5-year comparison of the cumulative total stockholder return on Cisco common stock with the cumulative total returns of the S&P 500 Index and the S&P Information Technology Index.The graph tracks the performance of a$100 investment in Ciscos common stock and in each of the index

53、es(with the reinvestment of all dividends).Stockholder returns over the indicated period are based on historical data and should not be considered indicative of future stockholder returns.*$100 invested on 7/29/17 in stock or index,including reinvestment of dividends.Fiscal year ending July 30,2022.

54、5Cisco 2022 Annual ReportFinancial highlights for fiscal 20226Cisco 2022 Annual ReportCisco strategyAs our customers add billions of new connections to their enterprises,and as more applications move to a multicloud environment,the network becomes even more critical.Our customers are navigating chan

55、ge at an unprecedented pace.In this dynamic environment,we believe their priorities are to reimagine applications,power hybrid work,transform infrastructure,and secure the enterprise.Our strategy is to help our customers connect,secure,and automate to accelerate their digital agility in a cloud-firs

56、t world.We are committed to driving a trusted customer experience,through our innovation,choice,and people.We are also accelerating our efforts to enable the delivery of network functionality as a service as our customers increasingly want to consume our technologies in flexible ways.We made the ini

57、tial step with our as-a-service portfolio,Cisco Plus,and our first offer,Cisco Plus hybrid cloud,which combines our data center compute,networking,and storage portfolio.Cisco Plus includes our plans to deliver networking-as-a-service,which is designed to unify networking,security and observability a

58、cross access,wide area network(WAN),and cloud domains.As part of the transformation of our business,we continue to make strides to develop and sell more software and subscription-based offerings.We are also focused on the entire customer lifecycle to drive expansion and renewals.We will continue to

59、invest in network-as-a-service offerings to provide our customers with flexibility in how they want to consume our technologies.To execute on our strategy and address our customer priorities,we arefocusing on the following six strategic pillars:Secure,Agile Networks;Optimized Application Experiences

60、;Hybrid Work;Internet forthe Future;End-to-End Security;and Capabilities at the Edge.Secure,Agile NetworksBuild networking solutions with built-in simplicity,security,agility and automation that can be consumed as-a-serviceOptimized Application ExperiencesEnable greater speed,agility and scale of cl

61、oud-native applicationsHybrid WorkDeliver highly secure access,a safer workplace and collaboration experiences for the hybrid workforceInternet for the FutureTransform connectivity by efficiently meeting the ever-growing demand for low-latency and higher speedsEnd-to-End SecurityBuild simple,integra

62、ted,and high efficacy end-to-end security solutions,delivered on-premise or in the cloudCapabilities at the EdgeDevelop new capabilities for a distributed world while enhancing the developer experience and extending enterprise and carriernetworksDiverse leadershipAt Cisco,diversity,inclusion,and col

63、laboration are fundamental to who we are,how we create the best teams,and how we drive success.A diverse workplace creates a vibrant culture where everyone is welcomed,respected,valued,and heard.Cisco has signed the CEO Action for Diversity and Inclusion Pledge.We are delivering on this pledge by ac

64、celerating full-spectrum diversityincluding gender identity,age,race,ethnicity,sexual orientation,disability status,nationality,religion,military status,background,culture,experience,strengths and perspectives.It starts at the top in that 42%of our executive leadership team(ELT)are women and 50%are

65、diverse in terms of gender or ethnicity,making Cisco an industry leader in ELT diversity.LeadershipCisco Learn more about Ciscos executive leadership team at https:/ 2022 Annual ReportLeadershipCiscos executive leadership teamChuck RobbinsChair and Chief Executive Officer50%diversebased ongender ore

66、thnicityLiz CentoniEVP,Chief Strategy Officer and General Manager,ApplicationsEyal DaganEVP,Common Hardware GroupJonathan DavidsonEVP and General Manager,Enterprise Networking&Cloud and Mass-Scale Infrastructure GroupR.Scott HerrenEVP and Chief Financial OfficerFrancine KatsoudasEVP and Chief People

67、,Policy&Purpose OfficerMaria MartinezEVP and Chief Operating OfficerJeetu PatelEVP and General Manager,Security&CollaborationMark PattersonSVP,Chief of Staff to the Chair and CEOMaria PoveromoSVP and Chief Communications OfficerJeff SharrittsEVP and Chief Customer and Partner OfficerDev StahlkopfEVP

68、,Chief Legal Officer and Chief Compliance Officer8Cisco 2022 Annual ReportCorporate governanceCisco is committed to stockholder-friendly corporate governance,and the Board of Directors has adopted clear corporate policies that promote excellence in corporate governance.Stockholder engagementAt Cisco

69、,we recognize the importance of regular and transparent communication with our stockholders.Each year,we continually engage with a significant portion of stockholders that include our top institutional investors.In fiscal 2022,our Chair of the Board and Chief Executive Officer,and Investor Relations

70、 team held meetings,conference calls and/or corresponded with investors representing approximately 36%of our outstanding shares,including 78%of our 30 largest stockholders.We engaged with these stockholders on a variety of topics,including our business and long-term strategy,corporate governance and

71、 risk management practices,board leadership and refreshment,diversity,corporate responsibility initiatives(including environmental,social,and governance topics),executive compensation program,and other matters of stockholder interest.Risk management approachWe believe that risk is inherent in innova

72、tion and the pursuit of long-term growth opportunities.Ciscos management is responsible for day-to-day risk management activities.The Board of Directors,acting directly and through its committees,is responsible for the oversight of Ciscos risk management.With the oversight of the Board of Directors,

73、Cisco has implemented practices,processes,and programs designed to help manage the risks to which we are exposed in our business and to align risk-taking with our efforts to increase stockholder value.Policies and practicesWe have adopted these corporate governance policies and practices consistent

74、with our commitment to transparency and best-in-class practices,as well as to ensure compliance with the rules and regulations of the SEC,the listing requirements of Nasdaq,and applicable corporate governance requirements.Stockholder proxy access Annual election of all directors (since IPO)Majority

75、voting(since 2007)Robust Lead Independent Director role Stockholder right to call a special meeting(since IPO)No poison pill Recoupment/clawback policy Stock ownership guidelines for directors and executive officers Stockholder recommendations for director candidate to the Board Stockholder right to

76、 act by written consent(since IPO)Board of DirectorsThe Board of Directors regularly discusses many core subjects with executive management,including strategy,operations,information systems,finance,and legal and public policy matters,in which risk oversight is an inherent element.Audit CommitteeThe

77、Audit Committee,which oversees financial and risk management policies,including data protection(comprising both privacy and security),receives regular reports on enterprise risk management(ERM)from the chair of the ERM operating committee and receives regular reports on cybersecurity from senior man

78、agement on a quarterly basis and a detailed presentation from our Chief Security and Trust Officer two or more times per year.Other committeesOther board committees oversee certain categories of risk associated with their respective areas of responsibility.ManagementCiscos management has implemented

79、 an ERM program,managed by Ciscos internal audit function,that is designed to work across the business to identify,evaluate,govern,and manage risks and Ciscos response to those risks.Ciscos internal audit function manages the enterprise ERM program and performs an annual risk assessment that is used

80、 by the ERM program.The structure of the ERM program includes both an ERM operating committee that focuses on risk management-related topics and an ERM executive committee consisting of members of management.The ERM operating committee conducts global risk reviews and provides regular updates to the

81、 ERM executive committee.Our pay practices align with our pay-for-performance philosophy and underscore our commitment to sound compensation and governance practices.Given the importance of ESG matters to Ciscos strategy,for fiscal 2022,we incorporated an ESG factor into our variable cash incentive

82、program,the Executive Incentive Plan(EIP),which was scored based on the executive leadership teams joint execution of our ESG strategy,including specific goals on sustainability,and inclusion and collaboration.These charts summarize the major elements of target total direct compensation for our CEO

83、and our other named executive officers(NEOs)as a group for fiscal 2022 and demonstrate our continued pay-for-performance philosophy.1 As defined in our Proxy Statement for our 2022 Annual Meeting of Stockholders9Cisco 2022 Annual ReportCorporate governanceExecutive compensation CEONEOs otherthan CEO

84、49%Performance-based equity incentive awards44%Performance-based equity incentive awards33%Time-based equity incentive awards40%Time-based equity incentive awards13%Variable cash incentive awards(performance-based)10%Variable cash incentive awards(performance-based)5%Base salary6%Base salaryOur exec

85、utive compensation program rewards performanceWe apply leading executive compensation practices Compensation philosophy is designed to attract and retain,motivate performance,and reward achievement Performance measures are aligned with stockholder interests Majority of annual total direct compensati

86、on is performance-based No dividends are paid or settled on unvested awards Independent compensation committee Independent compensation consultant Comprehensive annual compensation program risk assessment Caps on incentive compensation Promotion of ESG initiatives considered in the variable cash inc

87、entive program for executive officers No employment,severance,or change in control agreements for our executive officers Stock ownership guidelines Recoupment/clawback policy Limited perquisites No single-trigger vesting of equity award grants No stock option repricing or cash-out of underwater equi

88、ty awards No supplemental executive retirement plan or executive-defined benefit pension plan No golden parachute tax gross-ups Broad anti-pledging and anti-hedging policies10Cisco 2022 Annual ReportCorporate governanceBoard of DirectorsCiscos Board of Directors is committed to strong corporate gove

89、rnance structures and practices that help Cisco build long-term stockholder value.The Board believes strongly in the value of an independent board of directors and has established a Lead Independent Director role with broad authority and responsibility.Independent board members have consistently com

90、prised over 75%of the members of Ciscos Board of Directors.Additionally,all members of the key board committeesthe Audit Committee,the Compensation and Management Development Committee,and the Nomination and Governance Committeeare independent.M.Michele Burns,64Independent DirectorFormer Chair and C

91、EO,Mercer LLCWesley G.Bush,61Independent DirectorFormer Chair and CEO,Northrop Grumman CorporationJohn D.Harris II,61Independent DirectorFormer Vice President of Business Development,Raytheon CompanyCharles H.Robbins,56Chair and Chief Executive OfficerMichael D.Capellas,68Lead Independent DirectorFo

92、under and CEO,Capellas Strategic PartnersDr.Kristina M.Johnson,65Independent DirectorPresident,The Ohio State UniversityBrenton L.Saunders,52Independent DirectorExecutive Chair,The Beauty Health CompanyMark Garrett,64Independent DirectorFormer CFO,Adobe Systems IncorporatedRoderick C.McGeary,72Indep

93、endent DirectorFormer Vice Chair,Consulting,KPMG LLPDr.Lisa T.Su,52Independent DirectorChair and CEO,Advanced Micro Devices,Inc.Marianna Tessel,54Independent DirectorExecutive Vice President and Chief Technology Officer,Intuit Inc.Director SinceAUAcquisition CommitteeNomination and Governance Commit

94、teeCAQFinance CommitteeFAudit CommitteeAUFCompensation and Management Development CommitteeCAQNGNGCommitteesBoard skills and attributesLeadershipSales and MarketingAcademiaTechnologyFinancial expertisePublic company board experienceGlobal business202220032002021Chair

95、MemberKey to CommitteesSarah Rae Murphy,39Independent Director Former Chief Procurement Officer and Senior Vice President of Global Sourcing,United Airlines11Cisco 2022 Annual ReportCorporate governanceThe role of the Board of Directors in strategyOne of the Boards key responsibilities is overseeing

96、 managements formulation and execution of Ciscos strategy.Throughout the year,our CEO,the executive leadership team,and other leaders from across the company provide detailed business and strategy updates to the Board.During these reviews,the Board engages with the executive leadership team and othe

97、r business leaders regarding various topics,including business strategy and initiatives,capital allocation,portfolio updates,the competitive landscape,talent and culture including inclusion and diversity,ESG matters including human rights implications of Cisco product development and sales,our envir

98、onmental impact and regulatory developments.Additionally,on an annual basis,the Board reviews and approves Ciscos financial plan.The Lead Independent Director also chairs regularly scheduled executive sessions of the independent directors,without Cisco management present,during which Ciscos strategy

99、 is reviewed and other topics are discussed.Board Skills and AttributesLeadership 12Financial expertise 11Global business11Academia 1Technology 9Sales and marketing 7Public company board experience 10Gender/ethnic/racial/sexual orientation diversity 6Board snapshotGender diversityRace/ethnicitydiver

100、sity Sexualorientationdiversity 42%Women 58%Men 83%White 8%African American or Black and Native American 8%Asian 17%LGBTQ+Boardgovernancestructure Directortenure 11 Independent 1 Non-Independent 7 Directors 0-5 years 1 Director 6-8 years 4 Directors 9+years*Percentages may not total 100%due to round

101、ing.12Cisco 2022 Annual ReportOur purposeFor decades,Cisco has been evolving and expanding the way it positively impacts people and the planet.At the core of all our efforts is our Purpose:to Power an Inclusive Future for All.Technology has the potential to create opportunitiesor deepen inequalities

102、.Cisco believes that technology,when thoughtfully and strategically applied,can help address inequities;bring positive,lasting change to peoples lives and communities;and benefit the planet.To help fulfill our Purpose,we leverage our technology and catalyze our networks,partners,and people to make a

103、 positive impact in communities worldwide and for the planet.We know we can achieve so much more when we work in partnership with those aligned with our values and Purpose.The upcoming fiscal 2022 Purpose Report,which is expected to be published in December 2022,will describe our latest impact,ongoi

104、ng goals and commitments,and progress towards our goals and commitments on our Purpose journey.Purpose governance and management Ciscos People,Policy,and Purpose organization leads our social investment programs and champions our commitment to ESG performance and transparency.Within this organizatio

105、n is a core reporting team which engages with stakeholders,leads ESG materiality assessments1,and stewards reporting activities.Our reporting is aligned with standards set by the Global Reporting Initiative,Sustainability Accounting Standards Board,the Task Force on Climate-related Financial Disclos

106、ures,and the UN Sustainable Development Goals.The Nomination and Governance Committee of the Board reviews Ciscos policies and programs concerning our Purpose.This structure is designed to ensure that we prioritize the right ESG topics as a company,and that we stay on track with our commitments.*The

107、se are the topics identified in our FY21 ESG materiality assessment and validated in our FY22 interim ESG materiality assessment1 ESG materiality,as used in this report,and our ESG materiality assessment process is different than when used in the context of Securities and Exchange Commission(SEC)dis

108、closure obligations.Issues deemed material for purposes of this report and for purposes of determining our ESG strategy may not be considered material for SEC reporting purposes,nor does inclusion of information in this report indicate that the topic or information is material to Ciscos financial co

109、ndition or results of operations.Acquisition Audit Finance Compensation and Management DevelopmentESG Topics*Climate change and GHGs Inclusion and diversity Corporate governance Human rights and working conditions in the supply chain Business ethics Data security and privacy Innovation and responsib

110、le technology Employee health safety and labor rights Circular design and lifecycle management Operational waste Environmental Protection Water Talent Employee wellbeing Community impact Digital Inclusion Critical human needs and disaster relief Economic empowermentBoard of DirectorsNomination and G

111、overnance CommitteeReviews Ciscos policies and programs concerning our Purpose,including environmental,social,and governance mattersOther Board CommitteesBusiness Functions and Cross-Functional Groups People,Policy,and Purpose OrganizationGovernance,Risk,and ControlsChampion Ciscos company-wide comm

112、itment to ESG performance and transparencyConduct due diligence and implement policies and programs for specific ESG focus areasChampion Enterprise Risk Management(ERM)efforts across the business to identify,assess,and manage risks 13Cisco 2022 Annual ReportOur purposePowering an inclusive future fo

113、r allCiscos efforts to fulfill our Purpose to Power an Inclusive Future for All are organized into three ESG pillars.From the technology that helps securely power the worlds connectivity(Power),to driving fairness,inclusion,and equitable opportunity(Inclusive),and helping to ensure a sustainable and

114、 regenerative planet(Future).PowerFor almost four decades Cisco has helped power the worlds connectivity.Our software and solutions protect the data of millions of users within public sector organizations and businesses of all sizes,including 98%of the Fortune 500.At Cisco,we cultivate trust and hol

115、d ourselves to the highest standards of business conduct.This requires applying leading security and privacy practices and global principles of human rights to the design,sourcing,manufacturing,and sale of our solutions,and working to integrate a human rights perspective across Ciscos global busines

116、s.Cisco instills trust by operating with transparency,fairness,accountability,and integrity in every aspect of our business from the integrity of our solutions and networks,to our cyber resilience strategies which we share with organizations around the world,to our financial transparency and high st

117、andards of ethical conduct.Cisco works to ensure that our products are made responsibly,consistent with Ciscos values.We expect our manufacturing partners and suppliers to uphold Ciscos standards for labor,health and safety,environment,and ethics.We are a founding member of the Responsible Business

118、Alliance(RBA)and have long adopted the RBA Code of Conduct as our Supplier Code of Conduct.We assess our suppliers conformance to our policies through risk assessments,audits,and targeted engagements.If suppliers do not meet our standards,we work with them to improve and hold them accountable to ach

119、ieve that improvement.We also work across the Information and Communications Technology(ICT)industry to build supplier capacity to ensure a baseline of human rights and environmental standards.This work in our supply chain is a core element of our commitment to our Purpose.InclusiveWe promote inclus

120、ivity through our Conscious Culture and social impact initiatives.Our Conscious Culture is a set of expectations,principles,and measures that we believe define Ciscos values,beliefs,and ethos.Our values and expectations are laid out in our Code of Business Conduct.Every employee must certify complia

121、nce with the code each year to help ensure integrity in the workplace and the ethical use of data and resources,and to help prevent conflicts of interest.Living a Conscious Culture requires us to act with dignity,respect,fairness,and equity in each of our interactions with one another,allowing us to

122、 become a catalyst for social change.When people are respected for who they are and encouraged to seek balance between work and personal life,we believe they are more productive and successful in their jobs and able to give their best to their families and communities.In fiscal 2017,we set a goal to

123、 achieve 80%employee participation in community impact by 2020.We achieved that goal and have sustained 80%employee participation since then.14Cisco 2022 Annual ReportOur purposeSince we announced our Social Justice Beliefs in 2020,we have launched 12 initial actions to address longstanding challeng

124、es and drive lasting,generational change within our African American/Black communities,including increasing representation at all levels of the company.In fiscal 2021 we exceeded our goal to increase African American/Black representation by 75%at Director through VP+level.Our Social Justice Beliefs

125、provide a blueprint for how we respond to injustice and address inequity,not just now,but in the future,when we see injustice and systemic inequality in any community across the full spectrum of diversity.Ciscos Inclusive Future Action Office leads the strategy and execution of our Social Justice Ac

126、tions bringing together people across every function and region to lend their unique perspectives,expertise,and skills to fulfill our commitments.Cisco strives to compensate our employees fairly and equitably.We are a founding signer of the White House Equal Pay Pledge and the Parity.org pledge,and

127、we are leading the charge to make fair pay a reality for all employees through the Employers for Pay Equity Consortium.In fiscal 2022,we expanded our approach to fair pay beyond base salary to include additional forms of compensation such as promotions,stock,and bonuses.At Cisco,we believe that tech

128、nology can be used to help solve the greatest social and environmental challenges,such as critical human needs and crisis response,economic inequality,digital inclusion,education,and climate.Cisco set a goal in 2016 to positively impact one billion people by 2025 through our social impact grants and

129、 signature programs2.We engage with nonprofit partners to invest in early-stage solutions and form long-term partnerships that allow organizations to put technology to its highest and best use.We are preparing millions of learners with digital skills through Cisco Networking Academy,one of the world

130、s longest running learning and digital skills programs.In fiscal 2022,over three million people participated in our courses in 190 countries,bringing the total to 17.5 million students since inception.72%Men 28%WomenGlobalemployeesbased onFY2021 data Some of our social impact grantees receive fundin

131、g from other organizations.In January 2022 Cisco completed an external limited assurance review of our progress toward this goal.For more information see the criteria document and assurance report available at our ESG Reporting Hub at https:/ highlights At Cisco,42%of our ELT are women and 50%are di

132、verse in terms of gender or ethnicity On our Board of Directors,42%are women,58%are men,8%are Asian,8%are African American or Black,and Native American,83%are White,and 17%are diverse in terms of sexual orientation In fiscal 2021,our global employee base was comprised of 28%women and 72%men,and our

133、U.S.employee base was comprised of the following ethnicities:51.5%White/Caucasian,35.2%Asian,6.2%Hispanic/Latinx,4.8%African American/Black,1.8%two or more races(not Hispanic or Latinx),and 0.5%additional groups(including American Indian,Alaska Native,and Native Hawaiian or other Pacific Islander)Se

134、lected company goals25%1 billion increase in African American/Black representation from entry-level through manager level by fiscal 2023people positively impacted through our social impact grants and signature programs by fiscal 2025 For more information see our ESG Reporting Hub at https:/ Purpose

135、includes helping to ensure the sustainability of our planet.We focus on areas where we believe we can make the most significant impact:addressing climate change,driving a circular economy,and being responsible stewards of the planets limited resources.We also help to enable customers to reduce their

136、 own environmental footprints using our technology,and support innovators developing solutions to respond to the consequences of a changing climate.Addressing climate change In early fiscal 2022,we set a goal to reach net zero for greenhouse gas(GHG)emissions across our value chain by 2040.In July 2

137、022,our goal was approved by the Science Based Targets initiative(SBTi)and is consistent with reductions required to keep global warming to 1.5C above pre-industrial levels.In addition,Cisco joined SBTis Business Ambition for 1.5C campaign,which drives the adoption of robust emissions reduction targ

138、ets at the pace and scale required by climate science.Our net zero goal includes two interim goals:to reduce absolute Scope 1 and Scope 2 emissions by 90%by 2025 compared to our 2019 fiscal year to reduce absolute Scope 3 emissions from purchased goods and services,upstream transportation and distri

139、bution,and use of sold products by 30%by 2030 compared to our 2019 fiscal year.There are several components of our strategy to help achieve our net zero goal,which include:Accelerate the use of renewable energy Continued improvements to our product energy efficiencies Further embed circular economy

140、principles across our business Embrace hybrid work Invest in innovative carbon removal solutionsMeasuring and managing environmental performance also extends to Ciscos global supply chain operations.Active engagement with suppliers is helping us make progress toward our goals to have suppliers set t

141、heir own absolute GHG emissions reduction targets and reduce Ciscos supply chain-related Scope 3 GHG emissions.We will report our fiscal 2022 progress towards our environmental sustainability goals in our 2022 Purpose Report and ESG Hub.Cisco is also helping innovators and communities around the wor

142、ld explore solutions and respond to the consequences of a changing climate.In fiscal 2021,the Cisco Foundation announced a 10-year,$100 million commitment to fund nonprofit grants and impact investing in climate solutions.At the end of fiscal 2022,the Cisco Foundation had disbursed approximately$11

143、million dollars to early-stage solutions that are in diverse stages of development,from conceptual ideas to solutions that are ready for commercial deployment and widespread impact.15Cisco 2022 Annual ReportOur purposeOur near-and long-term science-based net zero GHG emissions goals20252030204090%re

144、duction in absolute Scope 1 and 2 GHG emissions by 2025 Compared to fiscal 2019.We will neutralize any remaining emissions by removing an equal amount from the atmosphere.30%reduction in absolute Scope3 emissions from purchased goods and services,upstream transportation and distribution,and use of s

145、old products by2030Compared to fiscal 2019.We will reach net zero emissions across our value chain by 2040By reducing our absolute Scope 1,2,and 3 emissions by 90%compared to fiscal 2019 and neutralizing any remaining emissions by removing an equal amount from the atmosphere.Circular economy For dec

146、ades,the global economy has been based on a“take-make-dispose”model,where products are manufactured from virgin materials,purchased,and then discarded.This linear model is not sustainable.It depletes scarce natural resources,creates unnecessary waste,and produces carbon emissions that contribute to

147、climate change.Cisco continues to work to integrate circular economy principles across our business.In addition to making our products more energy efficient,we are designing them to reduce the environmental impacts of their manufacturing and to better facilitate repair and remanufacturingwith the go

148、al to reduce resource consumption and maximize reuse of products and materials.In fiscal 2022 we further embedded circularity into key design tools and the standard product development process as we work towards our goal of 100%of new Cisco products and packaging incorporating our Circular Design Pr

149、inciples by fiscal 2025.Ciscos technology and solutions also enable customers to derive value from a circular model and achieve their own environmental sustainability goals.Cisco is supported by a vast partner ecosystem,so in fiscal 2022,we focused on empowering this community to advance sustainabil

150、ity conversations with our customers.We launched the Environmental Sustainability Specialization which recognizes partners for supporting Ciscos sustainability initiatives and equips them to educate customers,promote product takeback,and assist in customers move to circular business models.We also i

151、ntroduced theTakeback Incentivean incremental discount of up to 7%on new products with a commitment to return the used hardware to Cisco,building on our longstanding product takeback programs.We continue to improve the customer experience to drive increased product returns at end of use and provide

152、as-a-service models to facilitate return and reuse.Collaborating with our customers,partners and other stakeholders is essential to achieving a circular economy.Word count:257Selected circular economy goalsof new Cisco products and packaging will incorporate circular design principles by FY2575%redu

153、ction in use of foam in Cisco product packaging by weight by FY25(FY19 base year)70%of Cisco component and manufacturing suppliers by spend will achieve a zero-waste diversion rate at one or more sites by FY25100%16Cisco 2022 Annual ReportOur purposeUNITED STATES SECURITIES AND EXCHANGE COMMISSIONWA

154、SHINGTON,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 30,2022or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _ to _ Commission f

155、ile number 001-39940CISCO SYSTEMS,INC.(Exact name of registrant as specified in its charter)Delaware(State or other jurisdiction of incorporation or organization)170 West Tasman Drive San Jose,California (Address of principal executive offices)77-0059951(IRS Employer Identification No.)95134-1706(Zi

156、p Code)Registrants telephone number,including area code:(408)526-4000 Securities registered pursuant to Section 12(b)of the Act:Title of each class:Trading Symbol(s)Name of each exchange on which registeredCommon Stock,par value$0.001 per shareCSCOThe Nasdaq Stock Market LLCSecurities registered pur

157、suant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes NoIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes NoIndicate b

158、y check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing require

159、ments for the past 90 days.Yes NoIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registran

160、t was required to submit such files).Yes NoIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller re

161、porting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended

162、transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control

163、over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes NoAggregate market value

164、of registrants common stock held by non-affiliates of the registrant,based upon the closing price of a share of the registrants common stock on January 28,2022 as reported by the Nasdaq Global Select Market on that date:$230.8 billionNumber of shares of the registrants common stock outstanding as of

165、 September 2,2022:4,108,844,167DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrants definitive Proxy Statement relating to the 2022 Annual Meeting of Stockholders,to be held on December 8,2022,are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.PA

166、RT IItem 1.Business .1Item 1A.Risk Factors.14Item 1B.Unresolved Staff Comments.29Item 2.Properties.29Item 3.Legal Proceedings .29Item 4.Mine Safety Disclosures.29PART IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters,and Issuer Purchases of Equity Securities.30Item 6.Reserved

167、.31Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.32Item 7A.Quantitative and Qualitative Disclosures About Market Risk.53Item 8.Financial Statements and Supplementary Data.55Item 9.Changes in and Disagreements with Accountants on Accounting and Financial

168、Disclosures.103Item 9A.Controls and Procedures.103Item 9B.Other Information.103Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections .103PART IIIItem 10.Directors,Executive Officers and Corporate Governance.104Item 11.Executive Compensation.104Item 12.Security Ownership of Cert

169、ain Beneficial Owners and Management and Related Stockholder Matters.104Item 13.Certain Relationships and Related Transactions,and Director Independence.104Item 14.Principal Accountant Fees and Services.104PART IVItem 15.Exhibits and Financial Statement Schedules.104Item 16.Form 10-K Summary.106Sign

170、atures.1071This Annual Report on Form 10-K,including the“Managements Discussion and Analysis of Financial Condition and Results of Operations,”contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1

171、933,as amended(the“Securities Act”),and the Securities Exchange Act of 1934,as amended(the“Exchange Act”).All statements other than statements of historical facts are statements that could be deemed forward-looking statements.These statements are based on current expectations,estimates,forecasts,and

172、 projections about the industries in which we operate and the beliefs and assumptions of our management.Words such as“expects,”“anticipates,”“targets,”“goals,”“projects,”“intends,”“plans,”“believes,”“momentum,”“seeks,”“estimates,”“continues,”“endeavors,”“strives,”“may,”variations of such words,and s

173、imilar expressions are intended to identify such forward-looking statements.In addition,any statements that refer to projections of our future financial performance,our anticipated growth and trends in our businesses,future responses to and effects of the COVID-19 pandemic,and other characterization

174、s of future events or circumstances are forward-looking statements.Readers are cautioned that these forward-looking statements are only predictions and are subject to risks,uncertainties,and assumptions that are difficult to predict,including those identified below,under“Item 1A.Risk Factors,”and el

175、sewhere herein.Therefore,actual results may differ materially and adversely from those expressed in any forward-looking statements.We undertake no obligation to revise or update any forward-looking statements for any reason.PART IItem 1.BusinessGeneralCisco designs and sells a broad range of technol

176、ogies that power the Internet.We are integrating our platforms across networking,security,collaboration,applications and the cloud.These platforms are designed to help our customers manage more users,devices and things connecting to their networks.This will enable us to provide customers with a high

177、ly secure,intelligent platform for their digital business.We conduct our business globally and manage our business by geography.Our business is organized into the following three geographic segments:Americas;Europe,Middle East,and Africa(EMEA);and Asia Pacific,Japan,and China(APJC).Our products and

178、technologies are grouped into the following categories:Secure,Agile Networks;Internet for the Future;Collaboration;End-to-End Security;Optimized Application Experiences;and Other Products.In addition to our product offerings,we provide a broad range of service offerings,including technical support s

179、ervices and advanced services.Increasingly,we are delivering our technologies through software and services.Our customers include businesses of all sizes,public institutions,governments,and service providers,including large webscale providers.These customers often look to us as a strategic partner t

180、o help them use information technology(IT)to differentiate themselves and drive positive business outcomes.We were incorporated in California in 1984 and reincorporated in Delaware in 2021.Our headquarters are in San Jose,California.The mailing address of our headquarters is 170 West Tasman Drive,Sa

181、n Jose,California 95134-1706,and our telephone number at that location is(408)526-4000.Our website is .Through a link on the Investor Relations section of our website,we make available the following filings as soon as reasonably practicable after they are electronically filed with or furnished to th

182、e Securities and Exchange Commission(SEC)at sec.gov:our Annual Report on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K,and any amendments to those reports or other information filed or furnished pursuant to Section 13(a)or 15(d)of the Exchange Act.All such filings are availabl

183、e free of charge.The information published on our website,or any other website referenced herein,is not incorporated into this report.Strategy and PrioritiesAs our customers add billions of new connections to their enterprises,and as more applications move to a multicloud environment,the network bec

184、omes even more critical.Our customers are navigating change at an unprecedented pace.In this dynamic environment,we believe their priorities are to reimagine applications,power hybrid work,transform infrastructure,and secure the enterprise.Our strategy is to help our customers connect,secure,and aut

185、omate to accelerate their digital agility in a cloud-first world.We are committed to driving a trusted customer experience,through our innovation,choice,and people.2Customer PrioritiesReimagine ApplicationsIn our view,over the next several years,customers will be increasingly writing modern software

186、 applications that can run on any hybrid cloud,and will be adding billions of connections to their environments.In a multicloud environment,customers have to reimagine how they design,develop and deploy their applications.They need to be able to build applications quickly,deploy them nearly anywhere

187、,monitor experiences,and act in real time.We believe we are uniquely positioned to enable successful business outcomes for customers in hybrid and multicloud environments.In our view,networks are increasingly critical to business success and we believe our customers will benefit from the insights an

188、d intelligence that we are making accessible through our highly differentiated platforms.We are continuing our commitment to deliver full stack observability from the application to the infrastructure to give our customers greater insights that enable faster,better decision making.We are doing this

189、through adding key elements to our portfolio,such as:infrastructure optimization with Intersight,network monitoring with technology from ThousandEyes,application performance monitoring with AppDynamics,as well as our security innovations.Power Hybrid WorkSince the COVID-19 pandemic began,the world h

190、as shifted to a hybrid work environment,and we believe that our customers are looking to support a blend of onsite and offsite workers.To enable a hybrid workforce,customers require secure access,collaboration,and technologies to empower their teams to connect seamlessly and to work from anywhere.Cu

191、stomers are looking to us to help improve how their people communicate,collaborate and to increase productivity.At Cisco,we are focused on providing and delivering highly secure collaboration experiences to help our customers create a secure hybrid work environment.We believe our collaboration portf

192、olio,which includes our subscription-based Webex conferencing platform,with meetings,devices,calling and messaging,is at the center of our customers strategy for enabling their teams to be more productive and secure.To help our customers transform their workplaces,we continue to invest to expand our

193、 capabilities by introducing new Webex Calling innovations in the Webex Suite to improve work flexibility,reliability,and quality.Additionally,we also launched new devices for hybrid work the Webex Room Bar and a Cisco Video Phone.Transform InfrastructureIn an increasingly digital and connected worl

194、d,where each new connection to the Internet puts more demand on the network,our customers are looking to modernize and transform their infrastructure in an automated way in order to manage and monitor each connection in real time.Our strategy to help our customers transform their infrastructure with

195、 the network at the core began with Software-Defined Access(SD-Access)technology,one of our leading enterprise architectures,and continued with the launch of our Catalyst 9000 series of switches.We have continued to transform our enterprise access portfolio by bringing together several technologies

196、to form the only integrated architecture with built-in simplicity,automation and security at the foundation.This architecture is designed to enable our customers to securely connect their users and devices to applications and data over any network,no matter where they are.We have introduced several

197、innovations that extend our networking capabilities to wireless and enterprise routing products,including Software-Defined Wide Area Network(SD-WAN)and Internet of Things(IoT)edge platforms.Our SD-WAN solutions are designed to provide direct branch to cloud connectivity,enabling the workforce to acc

198、ess their software-as-a-service(SaaS)applications and workloads in an optimized and highly secure manner.We have continued to expand our SD-WAN offering,through our Cloud OnRamp integrations with several webscale providers to deliver predictable and highly secure application experiences.To further o

199、ur innovation in this area,we are applying the latest technologies,such as machine learning and advanced analytics,to operate and enhance network capabilities.These network product offerings are designed to help enable customers to detect cybersecurity threats,even in encrypted traffic.As such,we ha

200、ve created,in our view,the only network that is designed for security while also helping to maintain privacy.Our customers are operating in multicloud environments with private,public and hybrid clouds.For the data center,our strategy is to deliver multicloud architectures that bring policy and oper

201、ational consistency,regardless of where applications or data reside,by extending our Application Centric Infrastructure(ACI)and our hyperconverged offerings.We continue to invest in our data center portfolio to help meet the growing demand for cloud-delivered technologies.Our recently launched Nexus

202、 Cloud platform is designed to help our customers deploy,manage,and operate their data center networks from the cloud.3Our technology strategy for the Internet for the Future is aimed at addressing the broad adoption of multicloud and application environments.We continue to make significant investme

203、nts in the development of software,silicon and optics which we believe are the building blocks for the Internet for the Future.We introduced Cisco Silicon One,a single unified silicon architecture,as well as the Cisco 8000 carrier-class router family built on Cisco Silicon One and our operating syst

204、em,Cisco IOS XR7.We have also expanded our Cisco Silicon One platform from a routing focused solution to one which addresses the webscale switching market.By combining our routed optical networking solution integrating our routers with pluggable optics,we are able to further help deliver cost saving

205、s to our customers.Secure the EnterpriseWith the rapid growth in modern applications,and with more distributed work environments,securing the enterprise has become more complex and difficult for our customers to manage.We believe every organization requires new or enhanced security architectures to

206、defend against increasing cyber attacks.Our security strategy is focused on delivering a simple and effective cyber-security architecture combining network,cloud and endpoint-based solutions that recognizes the critical importance of data privacy.We are investing significant resources across our sec

207、urity portfolio focused on cloud-based offerings,artificial intelligence-driven threat detection and end-to-end security architectures.We recently unveiled our strategic plan for a global,cloud-delivered,integrated platform that secures and connects organizations of any shape and size.Cisco Security

208、 Cloud is designed to be the most open,end-to-end,security platform across hybrid multi-cloud environments,while also minimizing the attack surface and automating security policies across an organizations environment.This extends to our secure access service edge(SASE)framework and Zero Trust archit

209、ecture,where we have developed a cloud-delivered stack.We are also delivering unified detection and response capabilities with Cisco SecureX,our cloud-native platform,which is a built-in platform that connects our Cisco Secure portfolio and our customers infrastructure.Additionally,we recently annou

210、nced new offerings aimed at securing our customers operations with Talos On-Demand,allowing for custom research on the threat environment,and Secure Cloud Analytics,which leverages the network as a sensor to detect threats across network infrastructure,both on-premises and in private and public clou

211、ds.Strategic PillarsTo execute on our strategy and address our customer priorities,we are focusing on the following six strategic pillars:Secure,Agile Networks Build networking solutions with built-in simplicity,security,agility and automation that can be consumed as-a-service.Optimized Application

212、Experiences Enable greater speed,agility and scale of cloud-native applications.Hybrid Work Deliver highly secure access,a safer workplace and collaboration experiences for the hybrid workforce.Internet for the Future Transform connectivity by efficiently meeting the ever-growing demand for low-late

213、ncy and higher speeds.End-to-End Security Build simple,integrated,and high efficacy end-to-end security solutions,delivered on-premise or in the cloud.Capabilities at the Edge Develop new capabilities for a distributed world while enhancing the developer experience and extending enterprise and carri

214、er networks.We are also accelerating our efforts to enable the delivery of network functionality as a service as our customers increasingly want to consume technologies in flexible ways.We made the initial step with our as-a-service portfolio,Cisco Plus,and our first offer,Cisco Plus hybrid cloud,wh

215、ich combines our data center compute,networking and storage portfolio.Cisco Plus includes our plans to deliver networking-as-a-service,which is designed to unify networking,security and observability across access,wide area network(WAN),and cloud domains.Transforming our Business ModelWe are transfo

216、rming our offerings to meet the evolving needs of our customers.Historically,our various networking technology products have aligned with their respective product categories.However,increasingly our offerings are crossing multiple product categories.As our core networking offerings evolve,we expect

217、we will add more common software features across our core networking platforms.We are increasing the amount of software offerings that we provide and the proportion of subscription software offerings.We have various software offerings that fall into the broad categories of subscription arrangements

218、and perpetual licenses.Our subscription arrangements include term software licenses and associated service arrangements,as well as SaaS.4As part of the transformation of our business,we continued to make strides to develop and sell more software and subscription-based offerings.We are also focused o

219、n the entire customer lifecycle to drive expansion and renewals.We will continue to invest in network-as-a-service offerings to provide our customers with flexibility in how they want to consume our technologies.For a discussion of the risks associated with our strategy,see“Item 1A.Risk Factors,”inc

220、luding the risk factor entitled“We depend upon the development of new products and services,and enhancements to existing products and services,and if we fail to predict and respond to emerging technological trends and customers changing needs,our operating results and market share may suffer.”For in

221、formation regarding sales of our major products and services,see Note 19 to the Consolidated Financial Statements.Products and ServicesOur products and services are grouped into the following categories:Secure,Agile NetworksSecure,Agile Networks consists of our core networking technologies of switch

222、ing,enterprise routing,wireless,and compute products.These technologies consist of both hardware and software offerings,including software licenses and SaaS,that help our customers build networks,automate,orchestrate,integrate,and digitize data.We believe it is critical for us to continue to deliver

223、 continuous value to our customers.We continued to make progress in shifting more of our business to software and subscriptions across our core networking portfolio,and in expanding our software offerings.Our objective is to continue moving to cloud-managed solutions across our enterprise networking

224、 portfolio.Our Switching portfolio encompasses campus switching as well as data center switching offerings.Our campus switching offerings provide the foundation for converged data,voice,video,and IoT services.These switches offer enhanced security and reliability and are designed to scale efficientl

225、y as our customers grow.Within campus switching are our Catalyst 9000 series of switches that include hardware with embedded software,along with a software subscription referred to as Cisco DNA.Cisco DNA provides automation,analytics and security features and can be centrally monitored,managed,and c

226、onfigured.With the expansion of WiFi-6,we have expanded our portfolio to include multigigabit technology in our switches in order to manage higher bandwidth and manage network speed.Our data center switching offerings provide the foundation for mission critical data centers with high availability,sc

227、alability,and security across traditional data centers and private and public cloud data centers.We continue to add greater visibility and analytics across our networks and applications,enabling us to deliver better experiences for our customers.Our Enterprise Routing portfolio interconnects public

228、and private wireline and mobile networks,delivering highly secure and reliable connectivity to campus,data center and branch networks for our large to small enterprise and commercial customers.Our routing solutions are designed to meet the scale,reliability,and security needs of our customers.Our Wi

229、reless portfolio provides indoor and outdoor wireless coverage designed for seamless roaming use of voice,video,and data applications.These products include wireless access points that are standalone,controller appliance-based,switch-converged,and Meraki cloud-managed offerings.Our Compute portfolio

230、 incorporates various technologies and solutions including the Cisco Unified Computing System,HyperFlex,our hyperconverged offering,and software management capabilities,which combine computing,networking,and storage infrastructure management and virtualization to deliver agility,simplicity,and scale

231、.Internet for the FutureOur Internet for the Future product category consists of our routed optical networking,5G,silicon and optics solutions.We are focusing on transforming connectivity to the Internet and the cloud environment by efficiently meeting the growing demand for low-latency and higher s

232、peeds.Our routed optical networking systems,based on our Silicon One and pluggable optic solutions,allow us to transform the economics of building and operating networks for our service provider customers,including our webscale customers.We believe silicon and optics are foundational technologies fo

233、r the continued buildout of the Internet.As connection speeds increase,optics become increasingly important in our view.CollaborationOur Collaboration product category consists of our Meetings,Collaboration Devices,Calling,Contact Center and Communication Platform as a Service(CPaaS)offerings.Our of

234、ferings within the Collaboration portfolio consist of software offerings,including perpetual licenses and subscription arrangements,as well as hardware.Our Collaboration strategy is to power hybrid work by reimagining employee and customer experiences to be more inclusive and engaging by providing t

235、echnology that enables distributed teams to collaborate effortlessly.We offer end-to-end collaboration solutions that can be delivered from the cloud,on-premise or within hybrid cloud environments allowing customers to transition their collaboration5solutions from on-premise to the cloud.Artificial

236、intelligence(AI)and machine learning capabilities are embedded across the Webex portfolio,providing collaboration experiences that integrate people insights,relationship and audio intelligence to help improve productivity.Our CPaaS is a cloud communications platform that integrates communication cha

237、nnels and existing back-end business systems together to help enable the orchestration and automation of all customer and employee interactions.End-to-End SecurityThe End-to-End Security product category consists of our Network Security,Cloud Security,Security Endpoints,Unified Threat Management and

238、 Zero Trust offerings.Security continues to be a leading priority for our customers,regardless of size or industry.We continue to invest in resources across our security portfolio focused on cloud-based offerings,AI-driven threat detection and end-to-end security architectures.Our SecureX solution p

239、rovides unified visibility and detection across our entire portfolio to help our customers connect our integrated security portfolio and existing security infrastructure to provide simplicity,visibility,and efficiency.Secure Access by Duo is our core solution for identity verification and secure rem

240、ote access.Our technology,Cisco+Secure Connect solution,combines network and security functionality in a single,cloud-native service to help secure access wherever users and applications reside.Additionally,we continue to invest in expanding our SASE architecture by delivering combined network and s

241、ecurity functionality in a single cloud-native service.Optimized Application ExperiencesThe Optimized Application Experiences product category consist of our full stack observability and cloud-native platform offerings.Our full stack observability offerings are designed to bring together and provide

242、 end-to-end visibility of our customers environments across applications,networks,multi-cloud infrastructures and the Internet,to help deliver full stack observability for modern environments and drive relevant real-time insights.Our Intersight platform offers a foundational container platform and i

243、nfrastructure as code capabilities to simplify deployment and provisioning for our customers.Our monitoring and analytics offering,AppDynamics,monitors performance across different application-related domains.Our network services offering,ThousandEyes,provides a 360-degree view of hybrid digital eco

244、systemsacross cloud,SaaS and the Internetby combining Internet and WAN visibility,testing of web-based user experiences,end-user monitoring and Internet Insights.ServicesIn addition to our product offerings,we provide a broad range of service and support options for our customers.Our overall service

245、 and support offerings are combined into one organization,Customer Experience,that is responsible for the end-to-end customer experience.Our support and maintenance services help our customers ensure their products operate efficiently,remain available,and benefit from the most up-to-date system and

246、application software.These services help customers protect their network investments,manage risk,and minimize downtime for systems running mission-critical applications.A key example is Cisco Smart Services,which leverages the intelligence from the installed base of our products and customer connect

247、ions to protect and optimize network investments for our customers and partners.We have expanded these offerings from traditional hardware support to include software,solutions,and premium support.We also provide comprehensive advisory services that are focused on responsive,preventive,and consultat

248、ive support of our technologies for specific networking needs.We are investing in and expanding advisory services in the areas of software,cloud,security,and analytics,which reflects our strategy of selling customer outcomes.We are focused on three priorities:utilizing technology advisory services t

249、o drive higher product and services;assessment and migration services providing the tools,expertise and methodologies to enable our customers to migrate to new technology platforms;and providing optimization services aligned with customers business expectations.6Customers and MarketsMany factors inf

250、luence the IT,collaboration,and networking requirements of our customers.These include the size of the organization,number and types of technology systems,geographic location,and business applications deployed throughout the customers network.Our customer base is not limited to any specific industry

251、,geography,or market segment.Our customers primarily operate in the following markets:enterprise,commercial,service provider,and public sector.EnterpriseEnterprise businesses are large regional,national,or global organizations with multiple locations or branch offices.Many enterprise businesses have

252、 unique IT,collaboration,and networking needs within a multivendor environment.We offer service and support packages,financing,and managed network services,primarily through our service provider partners.We sell these products through a network of third-party application and technology vendors and c

253、hannel partners,as well as selling directly to these customers.CommercialThe commercial market represents larger,or midmarket and small businesses.We sell to our midmarket customers through a combination of our direct sales force and channel partners.These customers typically require the latest adva

254、nced technologies that our enterprise customers demand,but with less complexity.Small businesses require information technologies and communications products that are easy to configure,install,and maintain.We sell to these smaller organizations within the commercial market primarily through channel

255、partners.Service ProvidersService providers offer data,voice,video,and mobile/wireless services to businesses,governments,utilities,and consumers worldwide.The service provider market includes regional,national,and international wireline carriers,webscale operators as well as Internet,cable,and wire

256、less providers.We also include media,broadcast,and content providers within our service provider market,as the lines in the telecommunications industry continue to blur between traditional network-based,content-based and application-based services.Service providers use a variety of our products and

257、services for their own networks.In addition,many service providers use Cisco data center,virtualization,and collaboration technologies to offer managed or Internet-based services to their business customers.Compared with other customers,service providers are more likely to require network design,dep

258、loyment,and support services because of the greater scale and higher complexity of their networks,whose requirements are addressed,we believe,by our architectural approach.Public SectorThe public sector market includes federal,state and local governments,as well as educational institution customers.

259、Many public sector customers have unique IT,collaboration,and networking needs within a multi-vendor environment.We sell to public sector customers through a network of third-party application and technology vendors,channel partners,as well as through direct sales.Sales OverviewAs of the end of fisc

260、al 2022,our worldwide sales and marketing functions consisted of approximately 26,000 employees,including managers,sales representatives,and technical support personnel.We sell our products and services both directly and through a variety of channels with support from our salesforce.A substantial po

261、rtion of our products and services is sold through channel partners,and the remainder is sold through direct sales.Channel partners include systems integrators,service providers,other resellers,and distributors.Systems integrators and service providers typically sell directly to end users and often

262、provide system installation,technical support,professional services,and other support services in addition to network equipment sales.Systems integrators also typically integrate our products into an overall solution.Some service providers are also systems integrators.Distributors may hold inventory

263、 and sell to systems integrators,service providers,and other resellers.We refer to sales through distributors as our two-tier system of sales to the end customer.Revenue from two-tier distributors is recognized based on a sell-in method.These distributors may be given business terms that allow them

264、to return a limited portion of inventory,receive credits for changes in selling prices,receive certain rebates,and participate in various cooperative marketing programs.For information regarding risks related to our sales channels,see“Item 1A.Risk Factors,”including the risk factors entitled“Disrupt

265、ion of or changes in our distribution model could harm our sales and margins”and“Inventory management relating to our sales to our two-tier distribution channel is complex,and excess inventory may harm our gross margins.”For information regarding risks relating to our international operations,see“It

266、em 1A.Risk Factors,”including the risk factors entitled“Our operating results may be adversely affected by unfavorable economic and market conditions and the uncertain 7geopolitical environment;”“Entrance into new or developing markets exposes us to additional competition and will likely increase de

267、mands on our service and support operations;”“Due to the global nature of our operations,political or economic changes or other factors in a specific country or region could harm our operating results and financial condition;”“We are exposed to fluctuations in currency exchange rates that could nega

268、tively impact our financial results and cash flows;”and“Cyber attacks,data breaches or malware may disrupt our operations,harm our operating results and financial condition,and damage our reputation or otherwise materially harm our business;and cyber attacks or data breaches on our customers or thir

269、d-party providers networks,or in cloud-based services provided to,by,or enabled by us,could result in claims of liability against us,give rise to legal and/or regulatory action,damage our reputation or otherwise materially harm our business,”among others.Our service offerings complement our products

270、 through a range of consulting,technical,project,quality,and software maintenance services,including 24-hour online and telephone support through technical assistance centers.Financing ArrangementsWe provide financing arrangements for certain qualified customers to build,maintain,and upgrade their n

271、etworks.We believe customer financing is a competitive advantage in obtaining business,particularly for those customers involved in significant infrastructure projects.Our financing arrangements include the following:Leases:Sales-type Direct financing OperatingLoans Financed service contractsChannel

272、s financing arrangements Acquisitions,Investments,and AlliancesThe markets in which we compete require a wide variety of technologies,products,and capabilities.Our growth strategy is based on the components of innovation,which we sometimes refer to as“build,buy,partner,invest,and co-develop.”This fi

273、ve-prong approach to how we innovate can be summarized as follows:BuildWorking within Cisco,with the developer community,or with customersBuyAcquiring or divesting,depending on goalsPartnerStrategically partnering to further build out the businessInvestMaking investments in areas where technology is

274、 in its infancy or where there is no dominant technologyCo-developDeveloping new solutions with multi-party teams that may include customers,channel partners,startups,independent software vendors,and academicsAcquisitionsWe have acquired many companies,and we expect to make future acquisitions.Merge

275、rs and acquisitions of high-technology companies are inherently risky,especially if the acquired company has yet to generate revenue.No assurance can be given that our previous or future acquisitions will be successful or will not materially adversely affect our financial condition or operating resu

276、lts.The risks associated with acquisitions are more fully discussed in“Item 1A.Risk Factors,”including the risk factor entitled“We have made and expect to continue to make acquisitions that could disrupt our operations and harm our operating results.”Investments in Privately Held CompaniesWe make in

277、vestments in privately held companies that develop technology or provide services that are complementary to our products or that provide strategic value.The risks associated with these investments are more fully discussed in“Item 1A.Risk Factors,”including the risk factor entitled“We are exposed to

278、fluctuations in the market values of our portfolio investments and in interest rates;impairment of our investments could harm our earnings.”Strategic AlliancesWe pursue strategic alliances with other companies in areas where collaboration can produce industry advancement and accelerate new markets.T

279、he objectives and goals of a strategic alliance can include one or more of the following:technology exchange,product development,joint sales and marketing,or new market creation.Companies with which we have added or expanded strategic alliances during fiscal 2022 and in recent years include Apple In

280、c.,Equinix Inc.,Google LLC,International8Business Machines Corporation,Microsoft Corporation,Samsung Electronics Co.,Ltd.,and Amazon Web Services LLC,among others.Companies with which we have strategic alliances in some areas may be competitors in other areas,and in our view this trend may increase.

281、The risks associated with our strategic alliances are more fully discussed in“Item 1A.Risk Factors,”including the risk factor entitled“If we do not successfully manage our strategic alliances,we may not realize the expected benefits from such alliances and we may experience increased competition or

282、delays in product development.”CompetitionWe compete in the networking and communications equipment markets,providing products and services designed to transport,and help secure data,voice,and video traffic across cloud,private and public networks and the Internet.These market factors represent a co

283、mpetitive threat to us.We compete with numerous vendors in each product category.The overall number of our competitors providing niche product solutions may increase.Also,the identity and composition of competitors may change as we increase our activity in newer product areas,and in key priority and

284、 growth areas.As we continue to expand globally,we may see new competition in different geographic regions.In particular,we have experienced price-focused competition from competitors in Asia,especially from China,and we anticipate this will continue.Our competitors(in each case relative to only som

285、e of our products or services)include:Amazon Web Services LLC;Arista Networks,Inc.;Broadcom Inc.;Check Point Software Technologies Ltd.;Ciena Corporation;CrowdStrike Holdings,Inc.;Datadog Inc.;Dell Technologies Inc.;Dynatrace Inc.;Fortinet,Inc.;Hewlett-Packard Enterprise Company;Huawei Technologies

286、Co.,Ltd.;Juniper Networks,Inc.;Microsoft Corporation;New Relic,Inc.;Nokia Corporation;Palo Alto Networks,Inc.;RingCentral,Inc.;Ubiquiti Inc.;VMware,Inc.;Zoom Video Communications,Inc.;and Zscaler,Inc.;among others.Some of our competitors compete across many of our product lines,while others are prim

287、arily focused in a specific product area.Barriers to entry are relatively low,and new ventures to create products that do or could compete with our products are regularly formed.In addition,some of our competitors may have greater resources,including technical and engineering resources,than we do.As

288、 we expand into new markets,we will face competition not only from our existing competitors but also from other competitors,including existing companies with strong technological,marketing,and sales positions in those markets.We also sometimes face competition from resellers and distributors of our

289、products.Companies with which we have strategic alliances in some areas may be competitors in other areas,and this trend may increase.For example,the enterprise data center is undergoing a fundamental transformation arising from the convergence of technologies,including computing,networking,storage,

290、and software,that previously were segregated.Due to several factors,including the availability of highly scalable and general purpose microprocessors,application-specific integrated circuits(ASICs)offering advanced services,standards-based protocols,cloud computing and virtualization,the convergence

291、 of technologies within the enterprise data center is spanning multiple,previously independent,technology segments.Also,some of our current and potential competitors for enterprise data center business have made acquisitions,or announced new strategic alliances,designed to position them to provide e

292、nd-to-end technology solutions for the enterprise data center.As a result of all of these developments,we face greater competition in the development and sale of enterprise data center technologies,including competition from entities that are among our long-term strategic alliance partners.Companies

293、 that are strategic alliance partners in some areas of our business may acquire or form alliances with our competitors,thereby reducing their business with us.The principal competitive factors in the markets in which we presently compete and may compete in the future include the ability to sell succ

294、essful business outcomes;the ability to provide a broad range of networking and communications products and services;product performance;price;the ability to introduce new products,including providing continuous new customer value and products with price-performance advantages;the ability to reduce

295、production costs;the ability to provide value-added features such as security,reliability,and investment protection;conformance to standards;market presence;the ability to provide financing;and disruptive technology shifts and new business models.We also face competition from customers to which we l

296、icense or supply technology and suppliers from which we transfer technology.The inherent nature of networking requires interoperability.As such,we must cooperate and,at the same time,compete with many companies.Any inability to effectively manage these complicated relationships with customers,suppli

297、ers,and strategic alliance partners could have a material adverse effect on our business,operating results,and financial condition and accordingly affect our chances of success.9Research and DevelopmentWe regularly introduce new products and features to address the requirements of our markets.We all

298、ocate our research and development budget among our product categories,which consist of Secure,Agile Networks;Internet for the Future;Collaboration;End-to-End Security;Optimized Application Experiences;and Other Product technologies.Our research and development expenditures are applied generally to

299、all product areas,with specific areas of focus being identified from time to time.Our expenditures for research and development costs were expensed as incurred.The industry in which we compete is subject to rapid technological developments,evolving standards,changes in customer requirements,and new

300、product introductions and enhancements.As a result,our success depends,in part,on our ability,on a cost-effective and timely basis,to continue to enhance our existing products and to develop and introduce new products that improve performance and reduce total cost of ownership.To achieve these objec

301、tives,our management and engineering personnel work with customers to identify and respond to customer needs,as well as with other innovators of Internet networking products,including universities,laboratories,and corporations.We also expect to continue to make acquisitions and strategic investments

302、,where appropriate,to provide us with access to new technologies.Nonetheless,there can be no assurance that we will be able to successfully develop products to address new customer requirements and technological changes or that those products will achieve market acceptance.ManufacturingWe rely on co

303、ntract manufacturers for our manufacturing needs.We presently use a variety of independent third-party companies to provide services related to printed-circuit board assembly,in-circuit test,product repair,and product assembly.Proprietary software in electronically programmable memory chips is used

304、to configure products that meet customer requirements and to maintain quality control and security.The manufacturing process enables us to configure the hardware and software in unique combinations to meet a wide variety of individual customer requirements.The manufacturing process also uses automat

305、ed testing equipment and burn-in procedures,as well as comprehensive inspection,testing,and statistical process controls,which are designed to help ensure the quality and reliability of our products.The manufacturing processes and procedures are generally certified to International Organization for

306、Standardization 9001 standards.Our arrangements with contract manufacturers generally provide for quality,cost,and delivery requirements,as well as manufacturing process terms,such as continuity of supply;inventory management;flexibility regarding capacity,quality,and cost management;oversight of ma

307、nufacturing;and conditions for use of our intellectual property.We have not entered into any significant long-term contracts with any manufacturing service provider.We generally have the option to renew arrangements on an as-needed basis.These arrangements generally do not commit us to purchase any

308、particular amount or any quantities beyond amounts covered by orders or forecasts that we submit covering discrete periods of time.Patents,Intellectual Property,and LicensingWe seek to establish and maintain our proprietary rights in our technology and products through the use of patents,copyrights,

309、trademarks,and trade secret laws.We have a program to file applications for and obtain patents,copyrights,and trademarks in the United States and in selected foreign countries where we believe filing for such protection is appropriate.We also seek to maintain our trade secrets and confidential infor

310、mation by nondisclosure policies and through the use of appropriate confidentiality agreements.We have obtained a substantial number of patents and trademarks in the United States and in other countries.There can be no assurance,however,that the rights obtained can be successfully enforced against i

311、nfringing products in every jurisdiction.Although we believe the protection afforded by our patents,copyrights,trademarks,and trade secrets has value,the rapidly changing technology in the networking industry and uncertainties in the legal process make our future success dependent primarily on the i

312、nnovative skills,technological expertise,and management abilities of our employees rather than on the protection afforded by patent,copyright,trademark,and trade secret laws.Many of our products are designed to include software or other intellectual property licensed from third parties.While it may

313、be necessary in the future to seek or renew licenses relating to various aspects of our products,we believe,based upon past experience and standard industry practice,that such licenses generally could be obtained on commercially reasonable terms.Nonetheless,there can be no assurance that the necessa

314、ry licenses would be available on acceptable terms,if at all.Our inability to obtain certain licenses or other rights or to obtain such licenses or rights on favorable terms,or the need to engage in litigation regarding these matters,could have a material adverse effect on our business,operating res

315、ults,and financial condition.Moreover,inclusion in our products of software or other intellectual property licensed from third parties on a nonexclusive basis can limit our ability to protect our proprietary rights in our products.10The industry in which we compete is characterized by rapidly changi

316、ng technology,a large number of patents,and frequent claims and related litigation regarding patent and other intellectual property rights.There can be no assurance that our patents and other proprietary rights will not be challenged,invalidated,or circumvented;that others will not assert intellectu

317、al property rights to technologies that are relevant to us;or that our rights will give us a competitive advantage.In addition,the laws of some foreign countries may not protect our proprietary rights to the same extent as the laws of the United States.The risks associated with patents and intellect

318、ual property are more fully discussed in“Item 1A.Risk Factors,”including the risk factors entitled“Our proprietary rights may prove difficult to enforce,”“We may be found to infringe on intellectual property rights of others,”and“We rely on the availability of third-party licenses.”Government Regula

319、tionWe are subject to numerous regulations and laws in the United States and abroad that involve matters central to our business.Many of these regulations and laws are evolving and their applicability and scope,as interpreted by courts and regulators,remain uncertain.These regulations and laws invol

320、ve a variety of matters including privacy,data protection and personal information,tax,trade,encryption technology,environmental sustainability(including climate change),human rights,product certification,and national security.A failure,or alleged failure,by us to comply with regulations or laws cou

321、ld have a material adverse effect on our business,operating results,or financial condition.For additional information about government regulation and laws applicable to our business,see“Item 1A.Risk Factors,”including the risk factor entitled“Our business,operating results and financial condition co

322、uld be materially harmed by evolving regulatory uncertainty or obligations applicable to our products and services”and Note 14 to the Consolidated Financial Statements,subsection(f)“Legal Proceedings.”Environmental SustainabilitySustainability and protecting the environment are both top priorities f

323、or Cisco.We have set long-term goals to address the environmental impacts from our products and business operations.We strive to reduce the impacts of our operations and supply chain,help our customers decrease greenhouse gas(GHG)emissions,and support our communities experiencing direct effects of a

324、 changing climate by,among others:Continuing to invest in renewable energy,including investments in solar and wind energy;Designing our products and packaging for reuse,repair,recycling,and resource efficiency and managing our equipment for multiple lifecycles;Enhancing our Webex and other remote co

325、llaboration tools;Investing in projects to improve the efficiency of our offices,labs,and data centers worldwide;Working with our component suppliers,manufacturing partners,and logistic providers to reduce emissions and set targets for absolute GHG emissions reductions;Helping our employees to engag

326、e with events and opportunities to raise awareness and create a sense of community around sustainability;and Providing critical connectivity in the aftermath of natural disasters.Talent and CultureAt Cisco,we value our people,our technology,with a focus on helping to change the world for the better

327、and our purpose to Power an Inclusive Future for All.Our goal is to attract,retain,and develop talent in order to help our customers connect,secure and automate to accelerate their digital agility.Our relationship with our employees is one of mutual benefit,our employees bring talent and ingenuity t

328、o everything we do.In turn,we provide employees meaningful careers and development opportunities.As a testament to this,Cisco has been named as the number one place to work on the“Worlds Best Workplaces List”by Fortune Magazine for 2019,2020 and 2021.Cisco was also named the number one place to work

329、 of the Fortune 500 in 2021 by Great Places to Work.In addition,Cisco has been named the number one place to work in 14 countries around the world by Great Places to Work.11As of July 30,2022,we had approximately 83,300 full-time employees and they are categorized as follows:Employees by GeographyEm

330、ployee by Line Items on Consolidated Statement of OperationsUnited States47.9%Rest of World52.1%Costofsales31.0%Salesandmarketing31.5%Researchanddevelopment28.1%Generalandadministrative9.5%We support our employees through times of change and enable them to be their best.We do this by fostering a Con

331、scious Culture.Conscious Culture means we act with dignity,respect,fairness,and equity in our interactions with one another,and we take steps to build a culture that allows us to become a catalyst for social change.By intentionally working to create and cultivate an inclusive work environment where

332、employees can thrive,we believe Cisco is helping to bring about a better world.In the same way that every employee at Cisco is responsible for our Conscious Culture,we also want every employee to feel responsible for and contribute to our purpose to Power an Inclusive Future for All.This is as much

333、a commitment from Cisco as it is from our employees.Our people often ask the toughest questions around how we are impacting society for the better,from addressing homelessness to combating climate change.And often the best ideas for how we can do even more come directly from them.Future employees expect it too.More and more talent want to work for a company where their work has meaning and where t