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Notes to Consolidated Financial Statements
Supplemental Plan The Supplemental Plan expired on December 31, 2007, and the Company can no longer make equity awards
under the Supplemental Plan. Officers and members of the Company’s Board of Directors were not eligible to participate in the
Supplemental Plan. Nine million shares were reserved for issuance under the Supplemental Plan.
Acquisition Plans In connection with the Company’s acquisitions of Scientific-Atlanta, Inc. (“Scientific-Atlanta”) and WebEx
Communications, Inc. (“WebEx”), the Company adopted the SA Acquisition Plan and the WebEx Acquisition Plan, respectively,
each effective upon completion of the applicable acquisition. These plans constitute assumptions, amendments, restatements, and
renamings of the 2003 Long-Term Incentive Plan of Scientific-Atlanta and the WebEx Communications, Inc. Amended and Restated
2000 Stock Incentive Plan, respectively. The plans permit the grant of stock options, stock, stock units, and stock appreciation
rights to certain employees of the Company and its subsidiaries and affiliates who had been employed by Scientific-Atlanta or its
subsidiaries or WebEx or its subsidiaries, as applicable. As a result of the shareholder approval of the amendment and extension of
the 2005 Plan, as of November 15, 2007, the Company will no longer make stock option grants or direct share issuances under
either the SA Acquisition Plan or the WebEx Acquisition Plan.
General Share-Based Award Information
Stock Option Awards A summary of the stock option activity is as follows (in millions, except per-share amounts):
STOCK OPTIONS OUTSTANDING
Number
Outstanding
Weighted-
Average
Exercise Price
per Share
BALANCE AT JULY 28, 2007 1,289 $ 26.60
Granted and assumed 159 31.12
Exercised(1) (146) 18.50
Canceled/forfeited/expired (103) 30.74
BALANCE AT JULY 26, 2008 1,199 27.83
Granted and assumed 14 19.01
Exercised(1) (33) 14.67
Canceled/forfeited/expired (176) 49.79
BALANCE AT JULY 25, 2009 1,004 24.29
Granted and assumed 15 13.23
Exercised(1) (158) 17.88
Canceled/forfeited/expired (129) 47.31
BALANCE AT JULY 31, 2010 732 $ 21.39
(1) The total pretax intrinsic value of stock options exercised during fiscal 2010, 2009, and 2008 was $1.0 billion, $158 million, and $1.6 billion, respectively.
The following table summarizes significant ranges of outstanding and exercisable stock options as of July 31, 2010 (in millions,
except years and share prices):
STOCK OPTIONS OUTSTANDING STOCK OPTIONS EXERCISABLE
Range of Exercise Prices
Number
Outstanding
Weighted-
Average
Remaining
Contractual
Life
(in Years)
Weighted-
Average
Exercise
Price per
Share
Aggregate
Intrinsic
Value
Number
Exercisable
Weighted-
Average
Exercise
Price per
Share
Aggregate
Intrinsic
Value
$ 0.01 – 15.00 71 2.50 $ 10.62 $ 884 65 $ 10.87 $ 782
15.01 – 18.00 137 3.18 17.36 782 129 17.34 741
18.01 – 20.00 177 2.90 19.29 669 173 19.29 654
20.01 – 25.00 188 4.26 22.48 125 146 22.40 109
25.01 – 35.00 158 6.02 30.63 — 92 30.56 —
35.01 – 70.00 1 0.61 54.22 — 1 54.22 —
Total 732 3.94 $ 21.39 $ 2,460 606 $ 20.51 $ 2,286
68 Cisco Systems, Inc.