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1999 Annual Report
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Cover Page
Corporate Profile
Financial Highlights
Letter to Shareholders
Capture the Momentum
Increase Agility for Your Business
Create Agility with New World Services
Foster Agility for the Future
Financial Review
Selected Financial Data
Management's Discussion and Analysis
Consolidated Statement of Operations
Consolidated Balance Sheets
Consolidated Statements of Cash Flows
Consolidated Statements of Shareholders' Equity
Notes to Consolidated Financial Statements
Report of Independent Accountants
Supplementary Financial Data
Stock Market Information
Directors, Officers, and Vice Presidents
List of Graphs
1999 Proxy Statement
Supplement Proxy
Printable Report
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Cisco Systems

Net income includes purchased research and development expenses of $471 million, $594 million, and $508 million in 1999, 1998, and 1997,respectively, as well as realized gains on the sale of a minority stock investment of $5 million in 1998 and $152 million in 1997. On a pro forma basis, return on average equity, excluding these nonrecurring items net of tax, would have been 24.1%, 29.3% and 37.1% for 1999, 1998 and 1997, respectively.

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