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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 71.08

0.0%

Nov 7 3:59 PM EST

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To: Kirk © who wrote (66601)	11/26/2004 3:34:32 PM
From: Dave	Read Replies (2) of 77397

they go into treasury stock which is listed under Shareholder Equity. First, click on this link: sec.gov this link: Cisco, however, does not "break out" Treasury stock in the various accounts within Shareholder Equity. However, if you look at "Common stock and additional paid-in capital" on the most recently filed 10Q, you can see that this declined. (source: CONSOLIDATED BALANCE SHEETS) From the statement of cash flows, you can see that the company repurchased 3.001 Billion dollars worth of stock. (source: CONSOLIDATED STATEMENTS OF CASH FLOWS ) The repurchase debited Common stock by about 520m and Retained Earnings by 2481m. (source: CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY) Therefore, Shareholder Equity declined by about 1.3 Billion which jives with the buy back of 3.001 Billion (which is a debit) and Net Income flowing into Retained Earnings (credit) of 1.4B That is the primary cause of the decline in Shareholder Equity and, hence, the decline in BVPS Pretty much whenever a company buys back their shares on the open market, book value per share tends to decline. There is one maybe two exceptions to this rule.

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