This excerpt taken from the CSCO 10-K filed Sep 11, 2009.
The fair value of certain of the Companys financial instruments that are not measured at fair value, including accounts receivable, accounts payable, accrued compensation, and other current liabilities, approximates the carrying amount because of their short maturities. In addition, the fair value of the Companys loan receivables and financed service contracts also approximate the carrying amount. The fair value of the Companys long-term debt is disclosed in Note 9 and was determined using quoted market prices for those securities.
In the fourth quarter of fiscal 2009, the Company adopted FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP 157-4). FSP 157-4 provides additional guidelines for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. This FSP also includes guidance on identifying circumstances that indicate a transaction is not orderly. The adoption of FSP 157-4 in the fourth quarter of fiscal 2009 did not have a material impact on the Companys financial statements.
Effective July 27, 2008, the Company also adopted SFAS No. 159, The Fair Value Option for Financial Assets and Financial LiabilitiesIncluding an amendment of FASB Statement No. 115 (SFAS 159), but has not elected the fair value option for any eligible financial instruments as of July 25, 2009.