This excerpt taken from the CSCO 10-K filed Sep 11, 2009.
(b) Enhanced Early Retirement Program and Limited Workforce Reduction Actions
During the second half of fiscal 2009, the Company implemented an enhanced early retirement program, a voluntary program that was offered to eligible employees. In connection with the enhanced early retirement program, the Company incurred a charge of $138 million ($28 million in cost of sales and $110 million in operating expenses) during fiscal 2009. In addition, during the second half of fiscal 2009, the Company incurred approximately $125 million of severance charges ($25 million in cost of sales and $100 million in operating expenses) in connection with limited workforce reduction actions that impacted just over 2,000 employees. As of July 25, 2009, the remaining liability for the enhanced early retirement program and the limited workforce reduction actions was $186 million and was recorded in accrued compensation. The remaining liability is expected to be paid primarily in the first quarter of fiscal 2010.
52 Cisco Systems, Inc.
Notes to Consolidated Financial Statements