SiliconBeat

Cisco Systems said it would be booking a one-time tax charge of about $130 million to $150 million in its current fiscal 2009 fourth quarter after a ruling Wednesday by the U.S. Court of Appeals for the Ninth Circuit in a case between Xilinx and the Internal Revenue Service related to stock-based compensation expense.

Although not named in the case decided, the San Jose networking giant said in a filing late Friday with the SEC that the court’s decision “impacts a tax position of Cisco for certain years prior to fiscal 2005.”

The case in question related a cost sharing agreement Xilinx had over stock-based compensation with its own subsidiary, Xilinx Ireland. In August 2005, the U.S. Tax Court issued an opinion agreeing with Xilinx that no amount for stock options was to be included in its cost sharing agreement with its Irish division. The IRS appealed the decision and the Ninth District appeals court ruled in favor of the IRS in a 2-1 decision, according to a filing Xilinx made Thursday.