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Cisco to Record Tax-Related Charge - 5/30/2009 12:36:22 PM

A ruling from the U.S. Court of Appeals for the Ninth Circuit concerning a case involving Xilinx Inc (NASDAQ:XLNX) has changed the taxing of stock options-related expenses recorded by Cisco Systems (NASDAQ:CSCO) prior to 2005. In an SEC filing, Cisco said it will report a charge of $130 million for the current fourth quarter. The company also said the decision reduces its paid-in capital by $310 million to $320 million. Cisco was not a named party of the Xilinx case, which overturned a 2005 U.S. Tax court ruling that said Xilinx did not have to share the costs of stock option related to research and development and cost-sharing.


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