Exhibit 12.1
Cisco Systems, Inc.
Ratio of earnings to fixed charges
(in millions except for ratio of earnings to fixed charges)
| Years Ended | ||||||||||||||||||||
| July 30, | July 25, | July 26, | July 27, | July 28, | ||||||||||||||||
| 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Earnings(a) | ||||||||||||||||||||
Income before provision for income taxes | $ | 12,920 | $ | 11,201 | $ | 9,715 | $ | 11,227 | $ | 10,159 | ||||||||||
Losses attributable to VCE | — | 47 | 223 | 183 | 160 | |||||||||||||||
Gain on VCE reorganization | — | (126 | ) | — | — | — | ||||||||||||||
Fixed charges(b) | 792 | 684 | 688 | 708 | 717 | |||||||||||||||
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Total earnings | $ | 13,712 | $ | 11,806 | $ | 10,626 | $ | 12,118 | $ | 11,036 | ||||||||||
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Fixed charges(b) | $ | 792 | $ | 684 | $ | 688 | $ | 708 | $ | 717 | ||||||||||
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RATIO OF EARNINGS TO FIXED CHARGES | 17x | 17x | 15x | 17x | 15x | |||||||||||||||
| (a) | “Earnings” represent our income before provision for income taxes, plus (i) our share of losses attributable to our equity method investment in VCE Company, LLC (“VCE”) through October 2014, at which time we ceased to account for the VCE investment under the equity method, and a gain in connection with the VCE reorganization which was completed in the second quarter of fiscal 2015 and (ii) our fixed charges. |
| (b) | “Fixed charges” represent interest expense plus an estimate of the interest within rental expense. Interest expense within the provision for income taxes is not included in interest expense. The estimate of the interest within rental expense was calculated by using 30 percent of the rental expense, which Cisco Systems, Inc. believes is a reasonable approximation of the interest component of rental expense. |
