CSCO · 10-K · 2025A · Full report

Contractual Obligations

CISCO SYSTEMS, INC. · 2025-09-03 · Importance 56 · Surprise 24

Cisco reported total contractual obligations of $45,576 million by period as of July 26, 2025, with total including other long-term liabilities of $47,816 million. Major components include operating leases of $1,748 million, purchase commitments with contract manufacturers and suppliers of $7,599 million (with $7,202 million due in less than 1 year), other purchase obligations of $8,136 million, and long-term debt principal of $24,753 million (with $15,000 million due in more than 5 years). The company also reported a transition tax payable of $1,595 million (classified as less than 1 year) and noted noncurrent income taxes payable and deferred tax liabilities aggregated due to uncertainty in timing (approximately $2.2 billion and $75 million respectively). Management highlights that contractual obligations impact liquidity and should be analyzed alongside operating cash flows and budgeting processes.

Key facts

• Long-term debt principal amounts in the contractual obligations table total $24,753 million, with $1,751 million due in less than 1 year, $4,502 million due in 1 to 3 years, $3,500 million due in 3 to 5 years, and $15,000 million due in more than 5 years.
• Of the total carrying value of Cisco's investments in privately held companies as of July 26, 2025, $0.8 billion are considered to be in variable interest entities which are unconsolidated, and Cisco has total funding commitments of $0.3 billion related to privately held investments.
• The contractual obligations table as of July 26, 2025 shows total contractual obligations of $45,576 million due by period and $47,816 million including other long-term liabilities (uncertainty in timing of future payments).
• Contractual obligations due in less than 1 year as of July 26, 2025: $13,376 million.
• Purchase commitments with contract manufacturers and suppliers reported in the contractual obligations table as of July 26, 2025: $7,599 million, all of which is classified as less than 1 year ($7,202 million) in the payments-by-period table.
• Other purchase obligations as of July 26, 2025: $8,136 million, with $2,399 million due in less than 1 year, $3,247 million due in 1 to 3 years, and $2,383 million due in 3 to 5 years.
• Transition tax payable in the contractual obligations table as of July 26, 2025: $1,595 million, all due in less than 1 year.
• Operating leases total contractual obligation as of July 26, 2025: $1,748 million.

Impact estimates