cisco-annual-report-2021

Other Income (Loss), Net The components of other income (loss), net, are summarized as follows (in millions):
Years Ended 2021 vs. 2020
July 31, 2021 July 25, 2020 July 27, 2019
Variance
in Dollars
Gains (losses) on investments, net:
Available-for-sale debt investments. ................ $ 53 $ 42 $ (13) $ 11
Marketable equity investments . . . . . . . . . . . . . . . . . . . . 6 (5) (3) 11
Privately held investments ........................ 266 95 6 171
Net gains (losses) on investments ............... 325 132 (10) 193
Other gains (losses), net. ............................ (80) (117) (87) 37
Other income (loss), net . . . . . . . . . . . . . . . . . . . . $ 245 $ 15 $ (97) $ 230
The change in net gains (losses) on available-for-sale debt investments was primarily attributable to higher realized gains as a
result of market conditions, and the timing of sales of these investments. The change in net gains (losses) on marketable equity
investments was attributable to market value fluctuations and the timing of recognition of gains and losses. The change in net
gains (losses) on privately held investments was primarily due to higher net unrealized gains and lower impairment charges,
partially offset by lower realized gains. The change in other gains (losses), net was primarily driven by lower donation expense
and favorable impacts from our equity derivatives, partially offset by unfavorable impacts from foreign exchange.
Provision for Income Taxes
The provision for income taxes resulted in an effective tax rate of 20.1% for fiscal 2021, compared with 19.7% for fiscal 2020.
The net 0.4 percentage points increase in the effective tax rate was primarily due to a decrease in the tax benefit from foreign
income taxed at other than U.S. rates, offset by an increase in foreign-derived intangible income deduction and a decrease in
state taxes.
For a full reconciliation of our effective tax rate to the U.S. federal statutory rate of 21% and for further explanation of our
provision for income taxes, see Note 18 to the Consolidated Financial Statements.
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