cisco-annual-report-2021

Property and Equipment, Net
July 31, 2021 July 25, 2020
Gross property and equipment:
Land, buildings, and building and leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,304 $ 4,252
Computer equipment and related software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858 875
Production, engineering, and other equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,106 5,163
Operating lease assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 337
Furniture, fixtures and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 387
Total gross property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,918 11,014
Less: accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,580) (8,561)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,338 $ 2,453
Remaining Performance Obligations
July 31, 2021 July 25, 2020
Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,270 $ 11,261
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,623 17,093
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,893 $ 28,354
Remaining Performance Obligations (RPO) are comprised of deferred revenue plus unbilled contract revenue. As of July 31, 2021,
the aggregate amount of RPO was comprised of $22.2 billion of deferred revenue and $8.7 billion of unbilled contract revenue.
We expect approximately 53% of this amount to be recognized as revenue over the next 12 months. As of July 25, 2020, the
aggregate amount of RPO was comprised of $20.4 billion of deferred revenue and $7.9 billion of unbilled contract revenue.
Unbilled contract revenue represents noncancelable contracts for which we have not invoiced, have an obligation to perform, and
revenue has not yet been recognized in the financial statements.
Deferred Revenue
July 31, 2021 July 25, 2020
Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,416 $ 7,895
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,748 12,551
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,164 $ 20,446
Reported as:
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,148 $ 11,406
Noncurrent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,016 9,040
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,164 $ 20,446
8. Leases
(a) Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line Item July 31, 2021 July 25, 2020
Operating lease right-of-use assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other assets $ 1,095 $ 921
Operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other current liabilities $ 337 $ 341
Operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other long-term liabilities 831 661
Total operating lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,168 $ 1,002
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