2023 Q3 Form 10-K Financial Statement

#000085887723000023 Filed on September 07, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023
Revenue $15.20B $57.00B
YoY Change 16.04% 10.55%
Cost Of Revenue $5.455B $21.25B
YoY Change 7.45% 10.03%
Gross Profit $9.748B $35.75B
YoY Change 21.47% 10.87%
Gross Profit Margin 64.12% 62.73%
Selling, General & Admin $3.269B $12.36B
YoY Change 15.19% 10.48%
% of Gross Profit 33.54% 34.56%
Research & Development $1.953B $7.551B
YoY Change 16.11% 11.47%
% of Gross Profit 20.03% 21.12%
Depreciation & Amortization $422.0M $1.726B
YoY Change -1.86% -11.8%
% of Gross Profit 4.33% 4.83%
Operating Expenses $5.292B $20.19B
YoY Change 15.22% 10.5%
Operating Profit $4.456B $15.56B
YoY Change 29.84% 11.36%
Interest Expense $201.0M $535.0M
YoY Change 458.33% 361.21%
% of Operating Profit 4.51% 3.44%
Other Income/Expense, Net $17.00M -$248.0M
YoY Change -131.48% -163.27%
Pretax Income $4.471B $15.32B
YoY Change 30.88% 5.81%
Income Tax $513.0M $2.705B
% Of Pretax Income 11.47% 17.66%
Net Earnings $3.958B $12.61B
YoY Change 40.6% 6.78%
Net Earnings / Revenue 26.03% 22.13%
Basic Earnings Per Share $3.08
Diluted Earnings Per Share $0.97 $3.07
COMMON SHARES
Basic Shares Outstanding 4.055B shares 4.093B shares
Diluted Shares Outstanding 4.105B shares

Balance Sheet

Concept 2023 Q3 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $26.15B $26.15B
YoY Change 35.7% 35.7%
Cash & Equivalents $10.12B $10.12B
Short-Term Investments $16.02B $16.02B
Other Short-Term Assets $4.352B $4.352B
YoY Change -0.07% -0.07%
Inventory $3.644B $3.644B
Prepaid Expenses
Receivables $5.854B $5.854B
Other Receivables $3.352B $3.352B
Total Short-Term Assets $43.35B $43.35B
YoY Change 18.06% 18.06%
LONG-TERM ASSETS
Property, Plant & Equipment $2.085B $2.085B
YoY Change 4.41% 4.41%
Goodwill $38.54B
YoY Change 0.6%
Intangibles $1.818B
YoY Change -29.23%
Long-Term Investments
YoY Change
Other Assets $12.58B $12.58B
YoY Change 20.92% 20.92%
Total Long-Term Assets $58.50B $58.50B
YoY Change 2.13% 2.13%
TOTAL ASSETS
Total Short-Term Assets $43.35B $43.35B
Total Long-Term Assets $58.50B $58.50B
Total Assets $101.9B $101.9B
YoY Change 8.35% 8.35%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.313B $2.313B
YoY Change 1.4% 1.4%
Accrued Expenses $3.984B $3.984B
YoY Change 20.14% 20.14%
Deferred Revenue $13.91B
YoY Change 8.79%
Short-Term Debt $0.00 $0.00
YoY Change -100.0% -100.0%
Long-Term Debt Due $1.733B $1.733B
YoY Change 57.69% 57.69%
Total Short-Term Liabilities $31.31B $31.31B
YoY Change 22.11% 22.11%
LONG-TERM LIABILITIES
Long-Term Debt $6.658B $6.658B
YoY Change -20.89% -20.89%
Other Long-Term Liabilities $19.53B $19.53B
YoY Change -3.18% -3.18%
Total Long-Term Liabilities $26.19B $26.19B
YoY Change -8.39% -8.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $31.31B $31.31B
Total Long-Term Liabilities $26.19B $26.19B
Total Liabilities $57.50B $57.50B
YoY Change 6.03% 6.03%
SHAREHOLDERS EQUITY
Retained Earnings $1.639B
YoY Change -224.26%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $44.35B $44.35B
YoY Change
Total Liabilities & Shareholders Equity $101.9B $101.9B
YoY Change 8.35% 8.35%

Cashflow Statement

Concept 2023 Q3 2023
OPERATING ACTIVITIES
Net Income $3.958B $12.61B
YoY Change 40.6% 6.78%
Depreciation, Depletion And Amortization $422.0M $1.726B
YoY Change -1.86% -11.8%
Cash From Operating Activities $5.966B $19.89B
YoY Change 62.25% 50.36%
INVESTING ACTIVITIES
Capital Expenditures $233.0M $849.0M
YoY Change -267.63% -277.99%
Acquisitions $301.0M
YoY Change -19.3%
Other Investing Activities -$987.0M -$4.258B
YoY Change -197.92% -309.75%
Cash From Investing Activities -$1.220B -$5.107B
YoY Change -240.39% -428.85%
FINANCING ACTIVITIES
Cash Dividend Paid $6.302B
YoY Change 1.65%
Common Stock Issuance & Retirement, Net -$1.033B -$4.190B
YoY Change -51.59% -45.73%
Debt Paid & Issued, Net $500.0M
YoY Change -85.92%
Cash From Financing Activities -2.650B -11.63B
YoY Change -27.91% -27.98%
NET CHANGE
Cash From Operating Activities 5.966B 19.89B
Cash From Investing Activities -1.220B -5.107B
Cash From Financing Activities -2.650B -11.63B
Net Change In Cash 2.096B 3.153B
YoY Change 140.92% -331.33%
FREE CASH FLOW
Cash From Operating Activities $5.966B $19.89B
Capital Expenditures $233.0M $849.0M
Free Cash Flow $5.733B $19.04B
YoY Change 50.24% 38.93%

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<div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">(x) Use of Estimates</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">   The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for the following, among others:</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">▪</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Revenue recognition</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">▪</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Allowances for accounts receivable, sales returns, and financing receivables</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">▪</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Inventory valuation and liability for purchase commitments with contract manufacturers and suppliers</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">▪</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Loss contingencies and product warranties</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">▪</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Fair value measurements</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">▪</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Goodwill and purchased intangible asset impairments</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">▪</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Income taxes</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The actual results that we experience may differ materially from our estimates.</span></div>
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CY2023 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
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Foreign Currency Exchange Risk<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We conduct business globally in numerous currencies. Therefore, we are exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, we enter into foreign currency contracts. We do not enter into such contracts for speculative purposes.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We hedge forecasted foreign currency transactions related to certain revenues, operating expenses and service cost of sales with currency options and forward contracts. These currency options and forward contracts, designated as cash flow hedges, generally have maturities of less than 24 months. The derivative instrument’s gain or loss is initially reported as a component of accumulated other comprehensive income (AOCI) and subsequently reclassified into earnings when the hedged exposure affects earnings.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We enter into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, long-term customer financings and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances, other current assets, or liabilities denominated in currencies other than the functional currency of the reporting entity.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We hedge certain net investments in our foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on our net investment in those foreign subsidiaries. These derivative instruments generally have maturities of up to six months.</span></div><div style="margin-top:6pt;padding-left:18pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">(d)</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;padding-left:5.78pt">Interest Rate Risk</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We hold interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in fiscal 2024</span><span style="color:#ff0000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">through 2025. Under these interest rate swaps, we receive fixed-rate interest payments and make interest payments based on SOFR plus a fixed number of basis points. The effect of such swaps is to convert the fixed interest rates of the senior fixed-rate notes to floating interest rates based on SOFR. The gains and losses related to changes in the fair value of the interest rate swaps are included in interest expense and substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. </span></div><div style="margin-top:6pt;padding-left:18pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">(e)</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;padding-left:6.91pt">Equity Price Risk </span></div>We hold marketable equity securities in our portfolio that are subject to price risk. To diversify our overall portfolio, we also hold equity derivatives that are not designated as accounting hedges. The change in the fair value of each of these investment types are included in other income (loss), net.
CY2023 us-gaap Derivatives Methods Of Accounting Nonhedging Derivatives
DerivativesMethodsOfAccountingNonhedgingDerivatives
We are also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, we utilize derivatives such as total return swaps to economically hedge this exposure and offset the related compensation expense.
CY2023Q3 csco Estimated Future Cash Compensation Expense Maximum Amount
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ProductWarrantyAccrual
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CY2021Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
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CY2020Q3 us-gaap Product Warranty Accrual
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CY2023 us-gaap Product Warranty Accrual Warranties Issued
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CY2022 us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
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CY2021 us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
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CY2023 us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
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CY2022 us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
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CY2021 us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
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CY2023 us-gaap Product Warranty Accrual Payments
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CY2022 us-gaap Product Warranty Accrual Payments
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CY2021 us-gaap Product Warranty Accrual Payments
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CY2023Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
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CY2022Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
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CY2021Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
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CY2023 csco Channel Partner Financing Volume Gross Billings
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CY2022 csco Channel Partner Financing Volume Gross Billings
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CY2021 csco Channel Partner Financing Volume Gross Billings
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CY2023Q3 csco Channel Partner Financing Subject To Guarantees
ChannelPartnerFinancingSubjectToGuarantees
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CY2022Q3 csco Channel Partner Financing Subject To Guarantees
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CY2023 us-gaap Guarantees Indemnifications And Warranties Policies
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<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the normal course of business, we have indemnification obligations to other parties, including customers, lessors, and parties to other transactions with us, with respect to certain matters. We have agreed to indemnify against losses arising from a breach of representations or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time or circumstances within which an indemnification claim can be made and the amount of the claim.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">It is not possible to determine the maximum potential amount for claims made under the indemnification obligations due to uncertainties in the litigation process, coordination with and contributions by other parties and the defendants in these types of cases, and the unique facts and circumstances involved in each particular case and agreement. Historically, indemnity payments made by us have not had a material effect on our Consolidated Financial Statements.</span></div>
CY2023Q3 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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CY2023 us-gaap Stock Repurchased And Retired During Period Shares
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CY2023 csco Stock Repurchase Program Weighted Average Price Per Share Of Stock Repurchased In Period
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CY2023 us-gaap Stock Repurchased And Retired During Period Value
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CY2022 us-gaap Stock Repurchased And Retired During Period Shares
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CY2022 csco Stock Repurchase Program Weighted Average Price Per Share Of Stock Repurchased In Period
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CY2022 us-gaap Stock Repurchased And Retired During Period Value
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CY2021 us-gaap Stock Repurchased And Retired During Period Shares
StockRepurchasedAndRetiredDuringPeriodShares
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CY2021 csco Stock Repurchase Program Weighted Average Price Per Share Of Stock Repurchased In Period
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CY2021 us-gaap Stock Repurchased And Retired During Period Value
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CY2023Q3 csco Number Of Stock Incentive Plans
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CY2022 us-gaap Allocated Share Based Compensation Expense
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CY2021 us-gaap Allocated Share Based Compensation Expense
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CY2023 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2022 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2021 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2023Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
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CY2023 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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CY2021 us-gaap Oci Before Reclassifications Before Tax Attributable To Parent
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CY2021 us-gaap Reclassification From Aoci Current Period Before Tax Attributable To Parent
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CY2021 us-gaap Current Federal Tax Expense Benefit
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CY2021 us-gaap Deferred Federal Income Tax Expense Benefit
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CY2022 us-gaap Current State And Local Tax Expense Benefit
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CY2023 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2023 us-gaap Current Foreign Tax Expense Benefit
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CY2022 us-gaap Current Foreign Tax Expense Benefit
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CY2021 us-gaap Current Foreign Tax Expense Benefit
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CY2022 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2021 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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CY2023 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2021 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2023 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2022 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2021 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2023 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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CY2022 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential
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CY2021 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential
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CY2023 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
EffectiveIncomeTaxRateReconciliationTaxCredits
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CY2022 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
EffectiveIncomeTaxRateReconciliationTaxCredits
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CY2021 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
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CY2023 us-gaap Effective Income Tax Rate Reconciliation Fdii Percent
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CY2022 us-gaap Effective Income Tax Rate Reconciliation Fdii Percent
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CY2021 us-gaap Effective Income Tax Rate Reconciliation Fdii Percent
EffectiveIncomeTaxRateReconciliationFdiiPercent
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CY2023 us-gaap Effective Income Tax Rate Reconciliation Share Based Compensation Excess Tax Benefit Percent
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CY2022 us-gaap Effective Income Tax Rate Reconciliation Share Based Compensation Excess Tax Benefit Percent
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CY2021 us-gaap Effective Income Tax Rate Reconciliation Share Based Compensation Excess Tax Benefit Percent
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CY2023 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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CY2022 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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CY2021 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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CY2021 us-gaap Effective Income Tax Rate Continuing Operations
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CY2023Q3 us-gaap Undistributed Earnings Of Foreign Subsidiaries
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CY2023Q3 us-gaap Deferred Tax Liability Not Recognized Amount Of Unrecognized Deferred Tax Liability Undistributed Earnings Of Foreign Subsidiaries
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CY2023Q3 us-gaap Deferred Tax Assets Inventory
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CY2023Q3 csco Deferred Tax Assets Deferred Foreign Income
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