Cisco Systems Case Study
Essay Preview: Cisco Systems Case Study
Report this essay
Referencing AssignmentLIHUA GAOCalifornia State University, Northridge In 2014, Cisco Systems, Inc. 2013 annual report showed that Cisco invested  $ 135 million in Insieme Networks, Inc. in 2012. According to the Cisco’s Consolidated Financial Statements in 2013, Cisco acquired approximately 84% of Insieme’s shares. Therefore, Cisco had a right to purchase the rest of noncontrolling interest. If so, the milestone payments will occurrence in the first half of fiscal 2014. In addition, Cisco System report (2014) also expressed “The milestone payments will then be recorded as compensation expense by us based on an estimate of the fair value of the amounts probable of being earned, pursuant to a vesting schedule”. In connection with this estimate, the maximum amount of compensation expense might be $863 million and would be paid in fiscal 2016 and fiscal 2017. Made an investment in Insieme is the initial purpose of Cisco; however, the intention and performance was changed when the company owned considerable shares of Insieme. ReferenceCisco Systems, Inc. (2013). Cisco Systems, Inc. 2013 Annual Report. Retrieved from:
Taken from Cisco Systems, Inc. 2013 Annual Report, pages 66-67, downloaded Jan. 14, 2014 from