-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Jxm3+cAFvFFPIxDzajQ4svp+81pieB/sWlX5Rx7WBnQIfIKLzlHrKw9132K/f5Ly 0QBOe4+UGqOiM2n/SS5qVQ== 0001095811-00-005368.txt : 20001220 0001095811-00-005368.hdr.sgml : 20001220 ACCESSION NUMBER: 0001095811-00-005368 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001218 ITEM INFORMATION: FILED AS OF DATE: 20001219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CISCO SYSTEMS INC CENTRAL INDEX KEY: 0000858877 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER COMMUNICATIONS EQUIPMENT [3576] IRS NUMBER: 770059951 STATE OF INCORPORATION: CA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-18225 FILM NUMBER: 791462 BUSINESS ADDRESS: STREET 1: 170 W TASMAN DR CITY: SAN JOSE STATE: CA ZIP: 95134-1706 BUSINESS PHONE: 4085264000 MAIL ADDRESS: STREET 1: 225 WEST TASMAN DR CITY: SAN JOSE STATE: CA ZIP: 95134-1706 8-K 1 f68089e8-k.txt FORM 8-K 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): DECEMBER 18, 2000 CISCO SYSTEMS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) CALIFORNIA 0-18225 77-0059951 (STATE OR OTHER JURISDICTION OF (COMMISSION (I.R.S. EMPLOYER IDENTIFICATION NO.) INCORPORATION) FILE NUMBER)
170 WEST TASMAN DRIVE, SAN JOSE, CALIFORNIA 95134-1706 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)
Registrant's telephone number, including area code: (408) 526-4000 ================================================================================ 2 ITEM 5. OTHER EVENTS CISCO SYSTEMS PROVIDES DETAIL ON PROVISION FOR LOSSES IN FORM 10-Q QUARTERLY REPORT FOR FIRST QUARTER OF FISCAL 2001 Cisco Systems is providing certain detail regarding its provision for losses included in the cash flow statement in its Quarterly Report on Form 10-Q for its first quarter of fiscal 2001 ended October 28, 2000 (the "Form 10-Q"), filed with the Securities and Exchange Commission ("SEC") on December 12, 2000. The provision for losses in the Form 10-Q reflects three separate accounting reserves: (i) a provision for doubtful accounts, (ii) a provision for inventory reserves, and (iii) a provision for losses on minority investments. The following table provides further detail regarding these provisions (in millions):
Three Months Ended ------------------------ October 28, October 30, 2000 1999 ----------- ----------- Provision for doubtful accounts $ 14 $ 5 Provision for inventory reserves 143 70 Provision for losses on minority investments 118 -- ----------- ----------- Total $ 275 $ 75 =========== ===========
The provision for doubtful accounts reflects the additional amount reserved during the first quarter for future or anticipated losses relating to trade accounts receivable. During the first quarter of fiscal 2001, the additional amount reserved was approximately $14 million. The accumulated allowance for doubtful accounts reserve was approximately $57 million, or 1.9 percent of trade accounts receivable, at the end of the first quarter of fiscal 2001, as compared to approximately $43 million, or 1.8 percent at the end of the fourth quarter of fiscal 2000. As discussed during Cisco's earnings call for the first quarter of fiscal 2001 and its Form 10-Q, we have continued to increase our inventory levels to reduce lead times and reduce risks associated with current component shortages in our supply chain. The increase in the provision for inventory reserves directly correlates to the increase in our inventory balance. The increase in the provision for losses on minority investments reflects an increase in our reserve for potential losses related to our minority equity investment portfolio. We continue to make minority equity investments in start-up technology companies to gain access to innovative technologies. These investments are inherently risky as the market for the technologies or products these start-up companies have under development are typically in the early stages and may never materialize. We routinely review our investment portfolio for possible impairment of individual investments. At the end of the first quarter of fiscal 2001, we had an unrealized gain of approximately $3.8 billion on our total investment portfolio. 2 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CISCO SYSTEMS, INC. Dated: December 18, 2000 By /s/ LARRY R. CARTER -------------------------------- Larry R. Carter, Senior Vice President, Finance and Administration, Chief Financial Officer and Secretary 3 -----END PRIVACY-ENHANCED MESSAGE-----