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DEI Document (USD  $)
In Millions, except Share data in Thousands
12 Months Ended
Sep. 25, 2011
Oct. 31, 2011
Mar. 27, 2011
Document Information [Line Items]
Entity Registrant Name QUALCOMM INC/DE
Entity Central Index Key 0000804328
Current Fiscal Year End Date --09-25
Entity Filer Category Large Accelerated Filer
Document Type 10-K
Document Period End Date Sep 25, 2011
Document Fiscal Year Focus 2011
Document Fiscal Period Focus FY
Amendment Flag false
Entity Common Stock, Shares Outstanding 1,680,984,426
Entity Well-known Seasoned Issuer Yes
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Public Float  $ 86,665,135,824
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Consolidated Balance Sheets (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Current assets:
Cash and cash equivalents  $ 5,462  $ 3,547
Marketable securities 6,190 6,732
Accounts receivable, net 993 730
Inventories 765 528
Deferred tax assets 537 321
Other current assets 346 275
Total current assets 14,293 12,133
Marketable securities 9,261 8,123
Deferred tax assets 1,703 1,922
Assets held for sale 746 0
Property, plant and equipment, net 2,414 2,373
Goodwill 3,432 1,488
Other intangible assets, net 3,099 3,022
Other assets 1,474 1,511
Total assets 36,422 30,572
Current liabilities:
Trade accounts payable 969 764
Payroll and other benefits related liabilities 644 467
Unearned revenues 610 623
Loans payable 994 1,086
Income taxes payable 18 1,443
Other current liabilities 2,054 1,085
Total current liabilities 5,289 5,468
Unearned revenues 3,541 3,485
Other liabilities 620 761
Total liabilities 9,450 9,714
Commitments and contingencies (Note 9)    
Stockholders' equity:
Preferred stock,  $0.0001 par value; issuable in series; 8 shares authorized; none outstanding at September 25, 2011 and September 26, 2010 0 0
Common stock,  $0.0001 par value; 6,000 shares authorized; 1,681 and 1,612 shares issued and outstanding at September 25, 2011 and September 26, 2010, respectively 0 0
Paid-in capital 10,394 6,856
Retained earnings 16,204 13,305
Accumulated other comprehensive income 353 697
Total Qualcomm stockholders' equity 26,951 20,858
Noncontrolling interests (Note 7) 21 0
Total stockholders’ equity 26,972 20,858
Total liabilities and stockholders' equity  $ 36,422  $ 30,572
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Parentheticals (USD  $)
Sep. 25, 2011
Sep. 26, 2010
Preferred stock, par value  $ 0.0001  $ 0.0001
Preferred stock, shares authorized 8,000,000 8,000,000
Preferred stock, shares outstanding 0 0
Common stock, par value  $ 0.0001  $ 0.0001
Common stock, shares authorized 6,000,000,000 6,000,000,000
Common stock, shares issued 1,681,000,000 1,612,000,000
Common stock, shares outstanding 1,681,000,000 1,612,000,000
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Consolidated Statements of Operations (USD  $)
In Millions, except Per Share data
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Revenues:
Equipment and services  $ 9,223  $ 6,971  $ 6,437
Licensing 5,734 4,011 3,950
Total revenues 14,957 10,982 10,387
Operating expenses:
Cost of equipment and services revenues 4,877 3,301 3,025
Research and development 2,995 2,451 2,345
Selling, general and administrative 1,945 1,503 1,462
Other (Notes 4 and 9) 114 0 1,013
Total operating expenses 9,931 7,255 7,845
Operating income 5,026 3,727 2,542
Investment income (loss), net (Note 5) 661 766 (139)
Income from continuing operations before income taxes 5,687 4,493 2,403
Income tax expense (1,132) (973) (611)
Income from continuing operations 4,555 3,520 1,792
Discontinued operations, net of income taxes (Note 11) (313) (273) (200)
Net income 4,242 3,247 1,592
Net loss attributable to noncontrolling interests (Note 7) 18 0 0
Net income attributable to Qualcomm  $ 4,260  $ 3,247  $ 1,592
Basic earnings (loss) per share attributable to Qualcomm:
Continuing operations  $ 2.76  $ 2.15  $ 1.08
Discontinued operations  $ (0.19)  $ (0.17)  $ (0.12)
Net income  $ 2.57  $ 1.98  $ 0.96
Diluted earnings (loss) per share attributable to Qualcomm:
Continuing operations  $ 2.7  $ 2.12  $ 1.07
Discontinued operations  $ (0.18)  $ (0.16)  $ (0.12)
Net income  $ 2.52  $ 1.96  $ 0.95
Shares used in per share calculations:
Basic 1,658 1,643 1,656
Diluted 1,691 1,658 1,673
Dividends per share announced  $ 0.81  $ 0.72  $ 0.66
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Consolidated Statements of Cash Flows (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Operating Activities:
Net income  $ 4,242  $ 3,247  $ 1,592
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,061 666 635
Goodwill impairment 114 0 0
Revenues related to non-monetary exchanges (123) (130) (114)
Income tax provision (less than) in excess of income tax payments (1,204) 116 (33)
Non-cash portion of share-based compensation expense 824 612 584
Incremental tax benefit from stock options exercised (183) (45) (79)
Net realized gains on marketable securities and other investments (337) (405) (137)
Net impairment losses on marketable securities and other investments 52 125 763
Other items, net 12 (64) (32)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net (140) (18) 3,083
Inventories (62) (80) 69
Other assets (70) (60) (58)
Trade accounts payable (26) 148 57
Payroll, benefits and other liabilities 572 (229) 984
Unearned revenues 168 193 (142)
Net cash provided by operating activities 4,900 4,076 7,172
Investing Activities:
Capital expenditures (593) (426) (761)
Advance payment on spectrum (Note 9) 0 (1,064) 0
Purchases of available-for-sale securities (10,948) (8,973) (10,443)
Proceeds from sale of available-for-sale securities 10,661 10,440 5,274
Purchases of other marketable securities 0 (850) 0
Cash received for partial settlement of investment receivables 18 34 349
Atheros acquisition, net of cash acquired (Note 12) (3,130) 0 0
Other investments and acquisitions, net of cash acquired (494) (94) (54)
Change in collateral held under securities lending 0 0 173
Other items, net (3) 94 5
Net cash used by investing activities (4,489) (839) (5,457)
Financing Activities:
Borrowing under loans payable 1,555 1,064 0
Repayment of loans payable (1,555) 0 0
Proceeds from issuance of common stock 2,647 689 642
Proceeds from put option premiums 75 0 0
Proceeds from issuance of subsidiary shares to noncontrolling interests (Note 7) 62 0 0
Incremental tax benefit from stock options exercised 183 45 79
Repurchase and retirement of common stock (142) (3,016) (285)
Dividends paid (1,346) (1,177) (1,093)
Change in obligation under securities lending 46 0 (173)
Other items, net (7) (10) (3)
Net cash provided (used) by financing activities 1,518 (2,405) (833)
Effect of exchange rate changes on cash (14) (2) (5)
Net increase in cash and cash equivalents 1,915 830 877
Cash and cash equivalents at beginning of year 3,547 2,717 1,840
Cash and cash equivalents at end of year  $ 5,462  $ 3,547  $ 2,717
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Consolidated Statements of Stockholders' Equity (USD  $)
In Millions, except Share data
Total
Common stock shares
Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total Qualcomm Stockholders' Equity [Member]
Noncontrolling Interest [Member]
Beginning Balance, attributable to noncontrolling interests at Sep. 28, 2008  $ 0
Beginning balance, including portion attributable to noncontrolling interest at Sep. 28, 2008 17,944
Beginning Balance at Sep. 28, 2008 7,511 10,717 (284) 17,944
Beginning Balance (in shares) at Sep. 28, 2008 1,656,000,000
Components of comprehensive income, net of tax:
Net income 1,592 0 0 1,592 0 1,592
Net Income (Loss) attributable to noncontrolling interest 0 0
Net Income (loss), including portion attributable to noncontrolling interest 1,592
Other comprehensive income (loss) (Note 1) 891 0 0 0 891 891 0
Total comprehensive income 2,483
Common stock issued under employee benefit plans and the related tax benefits 682 682 0 0 682 0
Common stock issued under employee benefit plans (in shares) net of shares withheld for tax 22,000,000
Repurchase and retirement of common stock (285) (285) 0 0 (285) 0
Repurchase and retirement of common stock (in shares) 8,920,000 (9,000,000)
Share-based compensation 585 0 585 0 0 585 0
Dividends (1,093) 0 0 (1,093) 0 (1,093) 0
Other 0 0 0 19 (19) 0 0
Ending Balance, attributable to noncontrolling interests at Sep. 27, 2009 0
Ending balance, including portion attributable to noncontrolling interest at Sep. 27, 2009 20,316
Ending Balance at Sep. 27, 2009 8,493 11,235 588 20,316
Ending Balance (in shares) at Sep. 27, 2009 1,669,000,000
Components of comprehensive income, net of tax:
Net income 3,247 0 0 3,247 0 3,247
Net Income (Loss) attributable to noncontrolling interest 0 0
Net Income (loss), including portion attributable to noncontrolling interest 3,247
Other comprehensive income (loss) (Note 1) 109 0 0 0 109 109 0
Total comprehensive income 3,356
Common stock issued under employee benefit plans and the related tax benefits 770 770 0 0 770 0
Common stock issued under employee benefit plans (in shares) net of shares withheld for tax 23,000,000
Repurchase and retirement of common stock (3,016) (3,016) 0 0 (3,016) 0
Repurchase and retirement of common stock (in shares) 79,789,000 (80,000,000)
Share-based compensation 604 0 604 0 0 604 0
Dividends (1,177) 0 0 (1,177) 0 (1,177) 0
Other 5 0 5 0 0 5 0
Ending Balance, attributable to noncontrolling interests at Sep. 26, 2010 0 0
Ending balance, including portion attributable to noncontrolling interest at Sep. 26, 2010 20,858
Ending Balance at Sep. 26, 2010 20,858 6,856 13,305 697 20,858
Ending Balance (in shares) at Sep. 26, 2010 1,612,000,000
Components of comprehensive income, net of tax:
Net income 4,260 0 0 4,260 0 4,260
Net Income (Loss) attributable to noncontrolling interest (18) (18)
Net Income (loss), including portion attributable to noncontrolling interest 4,242
Other comprehensive income (loss) (Note 1) (347) 0 0 0 (344) (344) (3)
Total comprehensive income 3,895
Common stock issued under employee benefit plans and the related tax benefits 2,720 2,720 0 0 2,720 0
Common stock issued under employee benefit plans (in shares) net of shares withheld for tax 72,000,000
Repurchase and retirement of common stock (142) (142) 0 0 (142) 0
Repurchase and retirement of common stock (in shares) 2,878,000 (3,000,000)
Issuance of subsidiary shares to noncontrolling interests (Note 7) 56 0 14 0 0 14 42
Share-based compensation 848 0 848 0 0 848 0
Dividends (1,361) 0 0 (1,361) 0 (1,361) 0
Business Acquisition, Cost of Acquired Entity, Equity Interests Issued and Issuable 106 0 106 0 0 106 0
Other (8) 0 (8) 0 0 (8) 0
Ending Balance, attributable to noncontrolling interests at Sep. 25, 2011 21 21
Ending balance, including portion attributable to noncontrolling interest at Sep. 25, 2011 26,972
Ending Balance at Sep. 25, 2011  $ 26,951  $ 10,394  $ 16,204  $ 353  $ 26,951
Ending Balance (in shares) at Sep. 25, 2011 1,681,000,000
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The Company and Its Significant Accounting Policies
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 1 - The Company and Its Significant Accounting Policies
Note 1. The Company and Its Significant Accounting Policies
     The Company. QUALCOMM Incorporated, a Delaware corporation, and its subsidiaries (collectively the Company or Qualcomm), develop, design, manufacture and market digital telecommunications products and services. The Company is a leading developer and supplier of integrated circuits and system software based on Code Division Multiple Access (CDMA), Orthogonal Frequency Division Multiple Access (OFDMA) and other technologies for use in voice and data communications, networking, application processing, multimedia functions and global positioning system products to device and infrastructure manufacturers. The Company grants licenses to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products, and receives fixed license fees (payable in one or more installments) as well as ongoing royalties based on sales by licensees of wireless telecommunications equipment products incorporating its patented technologies. The Company sells equipment, software and services to transportation and other companies to wirelessly connect their assets and workforce. The Company provides software products and services for content enablement across a wide variety of platforms and devices for the wireless industry. The Company also makes strategic investments to support the global adoption of its technologies and services.     
Principles of Consolidation. The Company’s consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. In addition, the Company consolidates its investments in certain immaterial less than majority-owned variable interest entities as the Company is the primary beneficiary. The ownership of the other interest holders of consolidated subsidiaries and the variable interest entity is presented separately in the consolidated balance sheets and statements of operations. All significant intercompany accounts and transactions have been eliminated. Certain of the Company’s consolidated subsidiaries are included in the consolidated financial statements one month in arrears to facilitate the timely inclusion of such entities in the Company’s consolidated financial statements.
     Financial Statement Preparation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Certain prior year amounts have been adjusted to reflect the presentation of the FLO TV business as discontinued operations (Note 11).
     Fiscal Year. The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. The fiscal years ended September 25, 2011, September 26, 2010 and September 27, 2009 included 52 weeks.
     Cash Equivalents. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are comprised of money market funds, certificates of deposit, commercial paper and government agencies’ securities. The carrying amounts approximate fair value due to the short maturities of these instruments.
Marketable Securities. The appropriate classification of marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Marketable securities include available-for-sale securities, securities for which the Company has elected the fair value option and certain time deposits. The Company classifies marketable securities as current or noncurrent based on the nature of the securities and their availability for use in current operations. Marketable securities are stated at fair value. The net unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income (loss), net of income tax. The unrealized gains or losses on securities for which the Company has elected the fair value option are recognized in net investment income (loss). The realized gains and losses on marketable securities are determined using the specific identification method.
At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is other than temporary. The Company considers factors including: the significance of the decline in value compared to the cost basis; underlying factors contributing to a decline in the prices of securities in a single asset class; how long the market value of the security has been less than its cost basis; the security’s relative performance versus its peers, sector or asset class; expected market volatility, the market and economy in general; analyst recommendations and price targets; views of external investment managers; news or financial information that has been released specific to the investee; and the outlook for the overall industry in which the investee operates.
Starting in the third quarter of fiscal 2009, if the debt security’s market value is below amortized cost and the Company either intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to investment income (loss) for the entire amount of the impairment. For the remaining debt securities, if an other-than-temporary impairment exists, the Company separates the other-than-temporary impairment into the portion of the loss related to credit factors, or the credit loss portion, and the portion of the loss that is not related to credit factors, or the noncredit loss portion. The credit loss portion is the difference between the amortized cost of the security and the Company’s best estimate of the present value of the cash flows expected to be collected from the debt security. The noncredit loss portion is the residual amount of the other-than-temporary impairment. The credit loss portion is recorded as a charge to investment income (loss), and the noncredit loss portion is recorded as a separate component of other comprehensive income (loss). Prior to the third quarter of fiscal 2009, the entire other-than-temporary impairment loss was recognized in earnings for all debt securities.
When calculating the present value of expected cash flows to determine the credit loss portion of the other-than-temporary impairment, the Company estimates the amount and timing of projected cash flows, the probability of default and the timing and amount of recoveries on a security-by-security basis. These calculations use inputs primarily based on observable market data, such as credit default swap spreads, historical default and recovery statistics, rating agency data, credit ratings and other data relevant to analyzing the collectibility of the security. The amortized cost basis of a debt security is adjusted for any credit loss portion of the impairment recorded to earnings. The difference between the new cost basis and cash flows expected to be collected is accreted to investment income (loss) over the remaining expected life of the security.
Securities that are accounted for as equity securities include investments in common stock, equity mutual and exchange-traded funds and debt mutual funds. For equity securities, the Company considers the loss relative to the expected volatility and the likelihood of recovery over a reasonable period of time. If events and circumstances indicate that a decline in the value of an equity security has occurred and is other than temporary, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date. Additionally, if the Company has either the intent to sell the security or does not have both the intent and the ability to hold the equity security until its anticipated recovery, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date.
Securities Lending. The Company may engage in transactions in which certain fixed-income and equity securities are loaned to selected broker-dealers. At September 25, 2011, the loaned securities of  $44 million were included in marketable securities on the balance sheet. There were no securities loaned at September 26, 2010 under the Company’s securities lending program. Cash collateral is held and invested by one or more securities lending agents on behalf of the Company. The Company monitors the fair value of securities loaned and the collateral received and obtains additional collateral as necessary. Collateral of  $46 million at September 25, 2011 was recorded in cash equivalents with a corresponding amount in other current liabilities.
Allowances for Doubtful Accounts. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company considers the following factors when determining if collection of a fee is reasonably assured: customer credit-worthiness, past transaction history with the customer, current economic industry trends, changes in customer payment terms, and bank credit-worthiness for letters of credit. If the Company has no previous experience with the customer, the Company typically obtains reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. If the financial condition of the Company’s customers was to deteriorate, adversely affecting their ability to make payments, additional allowances would be required.
Inventories. Inventories are valued at the lower of cost or market (replacement cost, not to exceed net realizable value) using the first-in, first-out method. Recoverability of inventories is assessed based on review of committed purchase orders from customers, as well as purchase commitment projections provided by customers, among other things.
     Derivatives. The Company may enter into foreign currency forward and option contracts to manage foreign exchange risk for certain foreign currency transactions and probable anticipated foreign currency revenue transactions. Gains and losses arising from changes in the fair values of such contracts that are not designated as hedging instruments are recorded in investment income (expense) as gains (losses) on derivative instruments. Gains (losses) arising from the effective portion of foreign currency forward and option contracts that are designated as cash-flow hedging instruments are recorded in accumulated other comprehensive income (loss) as gains (losses) on derivative instruments, net of tax. The amounts are subsequently reclassified into revenues in the same period in which the underlying transactions affect the Company’s earnings. The fair value of the Company’s foreign currency option contracts used to hedge foreign currency revenue transactions recorded in other current assets was  $17 million and  $4 million at September 25, 2011 and September 26, 2010, respectively, and the value recorded in other current liabilities was  $42 million and  $19 million at September 25, 2011 and September 26, 2010, respectively, all of which were designated as cash-flow hedging instruments at September 25, 2011 and substantially all of which were designated as cash-flow hedging instruments at September 26, 2010. At September 25, 2011, the Company had a foreign currency forward contract, with a fair value of  $7 million in other current assets, that was designated as a net investment hedge of the Company’s investment in a wholly-owned subsidiary in Australia. Gains (losses) arising from changes in fair value of the net investment hedge are recorded in selling, general and administrative expenses.
In connection with its stock repurchase program, the Company may sell put options that require the Company to repurchase shares of its common stock at fixed prices. The premiums received from put options are recorded as other current liabilities. Changes in the fair value of put options are recorded in net investment income (loss) as gains (losses) on derivative instruments. The value of the put options recorded in other current liabilities was  $80 million at September 25, 2011. There were no put options outstanding at September 26, 2010.
Property, Plant and Equipment. Property, plant and equipment are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives. Upon the retirement or disposition of property, plant and equipment, the related cost and accumulated depreciation or amortization are removed, and a gain or loss is recorded. Buildings and building improvements on owned land are depreciated over 30 years and 15 years, respectively. Leasehold improvements and buildings on leased land are amortized over the shorter of their estimated useful lives or the remaining term of the related lease, not to exceed 15 and 20 years, respectively. Other property, plant and equipment have useful lives ranging from 2 to 25 years. Direct external and internal costs of developing software for internal use are capitalized subsequent to the preliminary stage of development. Leased property meeting certain capital lease criteria is capitalized, and the net present value of the related lease payments is recorded as a liability. Amortization of assets under capital lease is recorded using the straight-line method over the shorter of the estimated useful lives or the lease terms. Maintenance, repairs, and minor renewals and betterments are charged to expense as incurred.
Goodwill and Other Intangible Assets. Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. For intangible assets purchased in a business combination or received in a non-monetary exchange, the estimated fair values of the assets received (or, for non-monetary exchanges, the estimated fair values of the assets transferred if more clearly evident) are used to establish the cost bases (except for non-monetary exchanges in which neither of the values of the assets received or the assets transferred in non-monetary exchanges are determinable within reasonable limits). Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value.
Weighted-average amortization periods for finite-lived intangible assets, by class, were as follows (in years):
 
September 25, 2011
 
September 26, 2010
Spectrum licenses
5

 
5

Marketing-related
9

 
18

Technology-based
11

 
14

Customer-related
3

 
5

Total finite-lived intangible assets
11

 
14


     Impairment of Goodwill and Other Long-Lived Assets. Goodwill and other indefinite-lived intangible assets are tested annually for impairment in the fourth fiscal quarter and in interim periods if certain events occur indicating that the carrying amounts may be impaired. Goodwill is assessed for impairment using a two-step approach. First, the Company compares the estimated fair value of the reporting unit in which the goodwill resides to its carrying value. The second step, if necessary, measures the amount of such impairment by comparing the implied fair value of goodwill to its carrying value. Other indefinite-lived intangible assets are assessed for impairment by comparing their estimated fair values to their carrying values. If the carrying values exceed the fair values, the difference is recorded as an impairment.
Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Assets to be disposed of are reported at the lower of the carrying amount or the estimated fair value less costs to sell and are not depreciated.
Revenue Recognition. The Company derives revenues principally from sales of integrated circuit products, licensing of its intellectual property and software, and sales of messaging, software hosting, software development software and other services and related hardware. The timing of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific terms of each arrangement and the nature of the Company’s deliverables and obligations.
For transactions entered into prior to the first quarter of fiscal 2010, the Company allocated revenue for transactions that included multiple elements to each unit of accounting based on its relative fair value using vendor-specific objective evidence (VSOE). The price charged when the element was sold separately generally determined fair value. When the Company had objective evidence of the fair values of undelivered elements but not delivered elements, the Company allocated revenue first to the fair value of the undelivered elements, and the residual revenue was then allocated to the delivered elements. If the fair value of any undelivered element included in a multiple element arrangement could not be objectively determined, revenue was deferred until all elements were delivered or services were performed, or until fair value could be objectively determined for any remaining undelivered elements. Beginning in the first quarter of fiscal 2010, the Company adopted amended accounting guidance for revenue recognition that eliminated the use of the residual method and requires entities to allocate revenue using the relative selling price method. For substantially all arrangements with multiple deliverables, the Company continues to use VSOE to allocate the selling price to each deliverable. The Company determines VSOE based on its normal pricing and discounting practices for the specific product or service when sold separately. In certain limited instances when VSOE cannot be established, the Company first attempts to establish the selling price based on third-party evidence (TPE). If TPE is not available, the Company estimates the selling price of the product or service as if it were sold on a standalone basis. The adoption of the new guidance did not have a material impact on the timing or pattern of revenue recognition.
Revenues from sales of the Company’s products are recognized at the time of shipment, or when title and risk of loss pass to the customer and other criteria for revenue recognition are met, if later. Revenues from providing services, including software hosting services, are recognized when earned. Revenues from providing services were less than 10% of total revenues for all fiscal years presented.
The Company licenses or otherwise provides rights to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Licensees typically pay a fixed license fee in one or more installments and royalties based on their sales of products incorporating or using the Company’s licensed intellectual property. License fees are recognized over the estimated period of benefit of the license to the licensee, typically 5 to 15 years. The Company earns royalties on such licensed products sold worldwide by its licensees at the time that the licensees’ sales occur. The Company’s licensees, however, do not report and pay royalties owed for sales in any given quarter until after the conclusion of that quarter. The Company recognizes royalty revenues based on royalties reported by licensees during the quarter and when other revenue recognition criteria are met.
Revenues from long-term contracts are recognized using the percentage-of-completion method of accounting, based on costs incurred compared with total estimated costs. The percentage-of-completion method relies on estimates of total contract revenue and costs. Revenues and profits are subject to revisions as the contract progresses to completion. Revisions in profit estimates are charged or credited to income in the period in which the facts that give rise to the revision become known. If actual contract costs are greater than expected, reduction of contract profit would be required. Estimated contract losses are recognized when determined.
The Company provides both perpetual and renewable time-based software licenses. Revenues from software license fees are recognized when revenue recognition criteria are met and, if applicable, when vendor-specific objective evidence exists to allocate the total license fee to elements of multiple-element software arrangements, including post-contract customer support. Post-contract support is recognized ratably over the term of the related contract. When contracts contain multiple elements wherein the only undelivered element is post-contract customer support and vendor-specific objective evidence of the fair value of post-contract customer support does not exist, revenue from the entire arrangement is recognized ratably over the support period. The amount or timing of the Company’s software licensing revenues may differ as a result of changes in these judgments or estimates.
The Company records reductions to revenues for customer incentive arrangements, including volume-related and other pricing rebates and cost reimbursements for marketing and other activities involving certain of the Company’s products. The Company recognizes the maximum potential liability at the later of the date at which the Company records the related revenues or the date at which the Company offers the incentive or, if payment is contingent, when the contingency is resolved. In certain arrangements, the liabilities are based on customer forecasts. The Company reverses accruals for unclaimed incentive amounts to revenues when the unclaimed amounts are no longer subject to payment.
Unearned revenues consist primarily of license fees for intellectual property and software products, hardware product sales with continuing performance obligations and billings on uncompleted contracts in excess of incurred cost and accrued profit.
     Concentrations. A significant portion of the Company’s revenues is concentrated with a limited number of customers. Revenues from two customers of the Company’s QCT and QTL segments each comprised 13% of total consolidated revenues in fiscal 2011, compared to 15% and 10% of total consolidated revenues in fiscal 2010 and 18% and 13% of total consolidated revenues in fiscal 2009, respectively. Aggregated accounts receivable from two customers comprised 34% of gross accounts receivable at September 25, 2011. Aggregated accounts receivable from three customers comprised 42% of gross accounts receivable at September 26, 2010.
    Shipping and Handling Costs. Costs incurred for shipping and handling are included in cost of equipment and services revenues at the time the related revenue is recognized. Amounts billed to a customer for shipping and handling are reported as revenue.
     Share-Based Compensation. Share-based compensation expense for equity-classified awards, principally related to stock options and restricted stock units (RSUs), is measured at the grant date, or at the acquisition date for assumed awards, based on the estimated fair value of the award and is recognized over the employee’s requisite service period.
The fair values of employee stock options granted are estimated using the lattice binomial option-pricing model, and the fair values of employee stock options assumed are estimated using the Black-Scholes option-pricing model. The weighted-average estimated fair values of employee stock options granted during fiscal 2011, 2010 and 2009 were  $13.17,  $12.40 and  $14.27 per share, respectively. The following table presents the weighted-average assumptions (annualized percentages) used to estimate the fair values of employee stock options granted or assumed in the periods presented:
 
2011
 
2010
 
2009
Volatility
30.8
%
 
33.8
%
 
42.7
%
Risk-free interest rate
2.1
%
 
2.5
%
 
2.6
%
Dividend yield
1.5
%
 
1.5
%
 
1.5
%
Post-vest forfeiture rate
9.8
%
 
9.8
%
 
9.2
%
Suboptimal exercise factor
1.8

 
1.8

 
1.9


The Company uses the implied volatility of market-traded options in the Company’s stock to determine the expected volatility. The term structure of volatility is used up to approximately two years, and the Company uses the implied volatility of the option with the longest time to maturity for periods beyond two years. The risk-free interest rate is based upon observed interest rates appropriate for the terms of the Company’s employee stock options. The Company does not target a specific dividend yield for its dividend payments but is required to assume a dividend yield as an input to the binomial model. The dividend yield is based on the Company’s history and expectation of future dividend payouts and may be subject to substantial change in the future. The post-vest forfeiture rate and suboptimal exercise factor are based on the Company’s historical option cancellation and employee exercise information, respectively.
The expected life of employee stock options is a derived output of the lattice binomial model and is impacted by all of the underlying assumptions used by the Company. The weighted-average expected life of employee stock options granted, as derived from the binomial model, was 5.6 years, 5.5 years and 5.6 years during fiscal 2011, 2010 and 2009, respectively.
The fair values of RSUs are estimated based on the fair market values of the underlying stock on the dates of grant or dates the RSUs are assumed. If RSUs do not have the right to participate in dividends, the fair value is discounted by the dividend yield. The weighted-average estimated fair values of employee RSUs granted during fiscal 2011 and 2010 were  $50.14 and  $35.61 per share, respectively. No RSUs were granted in fiscal 2009. For the majority of RSUs, shares are issued on the vesting dates net of the amount of shares needed to satisfy statutory tax withholding requirements to be paid by the Company on behalf of the employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding.
Share-based compensation expense is adjusted to exclude amounts related to share-based awards that are expected to be forfeited. The annual pre-vest forfeiture rate for stock options and RSUs granted in fiscal 2011 and 2010 was estimated to be approximately 3% based on historical experience. The effect of pre-vest forfeitures on the Company’s recorded expense in fiscal 2011, 2010 and 2009 for awards granted prior to fiscal 2010 was negligible due to the predominantly monthly vesting of stock options that were granted in those periods.
Total estimated share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Cost of equipment and services revenues
 $
67

 
 $
41

 
 $
40

Research and development
397

 
293

 
272

Selling, general and administrative
349

 
263

 
252

Continuing operations
813

 
597

 
564

Related income tax benefit
(194
)
 
(166
)
 
(121
)
Continuing operations, net of income taxes
619

 
431

 
443

Discontinued operations
8

 
17

 
20

Related income tax benefit
(3
)
 
(6
)
 
(8
)
Discontinued operations, net of income taxes
5

 
11

 
12

 
 $
624

 
 $
442

 
 $
455

*As adjusted for discontinued operations (Note 11)
The Company recorded  $165 million,  $119 million and  $106 million in share-based compensation expense during fiscal 2011, 2010 and 2009, respectively, related to share-based awards granted during those periods. The remaining share-based compensation expense primarily related to stock awards granted in earlier periods and stock awards assumed. In addition, for fiscal 2011, 2010 and 2009,  $183 million,  $45 million and  $79 million, respectively, were reclassified to reduce net cash provided by operating activities with an offsetting increase in net cash used by financing activities in the consolidated statements of cash flows to reflect the incremental tax benefits from stock options exercised and restricted stock units vested in those periods. The amount of compensation cost capitalized related to share-based payment awards was negligible for all periods presented.
     Litigation. The Company is currently involved in certain legal proceedings. The Company records its best estimate of a loss related to pending litigation when the loss is considered probable and the amount can be reasonably estimated. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending litigation and revises its estimates. The Company’s legal costs associated with defending itself are recorded to expense as incurred.
      Foreign Currency. Foreign subsidiaries operating in a local currency environment use the local currency as the functional currency. Resulting translation gains or losses are recognized as a component of other comprehensive income (loss). Where the United States dollar is the functional currency, resulting translation gains or losses are recognized in the consolidated statements of operations. Transaction gains or losses related to balances denominated in a different currency than the functional currency are recognized in the consolidated statements of operations. Net foreign currency transaction losses included in the Company’s consolidated statements of operations were  $8 million and  $6 million for fiscal 2011 and 2010, respectively, and negligible in fiscal 2009.
Income Taxes. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. The Company includes interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes.
The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.
The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. A windfall tax benefit occurs when the actual tax benefit realized by the Company upon an employee’s disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that the Company had recorded. When assessing whether a tax benefit relating to share-based compensation has been realized, the Company follows the tax law ordering method, under which current year share-based compensation deductions are assumed to be utilized before net operating loss carryforwards and other tax attributes.
      Earnings Per Common Share. Basic earnings per common share is computed by dividing net income attributable to Qualcomm by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to Qualcomm by the combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and shares subject to written put options, and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the estimated tax benefits that would be recorded in paid-in capital, if any, when an award is settled are assumed to be used to repurchase shares in the current period. The incremental dilutive common share equivalents, calculated using the treasury stock method, for fiscal 2011, 2010 and 2009 were 32,908,000, 15,652,000 and 16,900,000, respectively.
Employee stock options to purchase 20,224,000, 149,007,000 and 136,309,000 shares of common stock during fiscal 2011, 2010 and 2009, respectively, were outstanding but not included in the computation of diluted earnings per common share because the effect would be anti-dilutive. Put options outstanding during fiscal 2011 to purchase 11,800,000 shares of common stock were not included in the earnings per common share computation because the put options’ exercise prices were less than the average market price of the common stock while they were outstanding, and therefore, the effect on diluted earnings per common share would be anti-dilutive (Note 7). In addition, 1,963,000 and 235,000 shares of other common stock equivalents outstanding in fiscal 2011 and 2010, respectively, were not included in the computation of diluted earnings per common share because the effect would be anti-dilutive. There were no common stock equivalents outstanding in fiscal 2009 whose effect would be anti-dilutive.
Comprehensive Income. Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments and unrealized gains and losses on marketable securities. The Company presents comprehensive income in its consolidated statements of stockholders’ equity. The reclassification adjustment for net realized gains results from the recognition of the net realized gains in the statements of operations when marketable securities are sold or derivative instruments are settled. The reclassification adjustment for other-than-temporary losses on marketable securities included in net income results from the recognition of the unrealized losses in the statements of operations when they are no longer viewed as temporary. The portion of other-than-temporary impairment losses related to noncredit factors and subsequent changes in fair value included in comprehensive income is shown separately from other unrealized gains or losses on marketable securities.
Components of accumulated other comprehensive income in Qualcomm stockholders’ equity consisted of the following (in millions):
 
September 25, 2011
 
September 26, 2010
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes
 $
27

 
 $
62

Net unrealized gains on marketable securities, net of income taxes
427

 
723

Net unrealized losses on derivative instruments, net of income taxes
(15
)
 
(8
)
Foreign currency translation
(86
)
 
(80
)
 
 $
353

 
 $
697


At September 25, 2011, accumulated other comprehensive income included  $13 million of other-than-temporary losses on marketable debt securities related to factors other than credit, net of income taxes.
Total comprehensive income attributable to Qualcomm consisted of the following (in millions):
 
2011
 
2010
 
2009
Net income
 $
4,242

 
 $
3,247

 
 $
1,592

Other comprehensive income:
 
 
 
 
 
Foreign currency translation
(9
)
 
(40
)
 
(25
)
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes of  $10, ( $5) and  $12, respectively
(19
)
 
21

 
135

Net unrealized (losses) gains on other marketable securities and derivative instruments, net of income taxes of  $80,  $74 and ( $5), respectively
(145
)
 
392

 
261

Reclassification of net realized gains on marketable securities and derivative instruments included in net income, net of income taxes of  $112, ( $12) and  $75, respectively
(199
)
 
(380
)
 
(93
)
Reclassification of other-than-temporary losses on marketable securities included in net income, net of income taxes of  $14, ( $5) and  $130, respectively
25

 
116

 
613

Total other comprehensive (loss) income
(347
)
 
109

 
891

Total comprehensive income
3,895

 
3,356

 
2,483

Comprehensive loss attributable to noncontrolling interests
21

 

 

Comprehensive income attributable to Qualcomm
 $
3,916

 
 $
3,356

 
 $
2,483

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Fair Value Measurements
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 2 - Fair Value Measurements
Note 2. Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:
Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets.
Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument.
Level 3 includes financial instruments for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company’s own assumptions.
Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.
The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 25, 2011 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
 $
2,495

 
 $
2,129

 
 $

 
 $
4,624

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
14

 
508

 

 
522

Corporate bonds and notes

 
6,018

 

 
6,018

Mortgage- and asset-backed securities

 
667

 
11

 
678

Auction rate securities

 

 
124

 
124

Non-investment-grade debt securities

 
3,656

 
16

 
3,672

Common and preferred stock
1,061

 
728

 

 
1,789

Equity mutual and exchange-traded funds
845

 

 

 
845

Debt mutual funds
1,327

 
476

 

 
1,803

Total marketable securities
3,247

 
12,053

 
151

 
15,451

Derivative instruments

 
24

 

 
24

Other investments (1)
152

 

 

 
152

Total assets measured at fair value
 $
5,894

 
 $
14,206

 
 $
151

 
 $
20,251

Liabilities
 
 
 
 
 
 
 
Derivative instruments
 $

 
 $
122

 
 $

 
 $
122

Other liabilities (1)
152

 

 
7

 
159

Total liabilities measured at fair value
 $
152

 
 $
122

 
 $
7

 
 $
281


(1)
Level 1 measurements are comprised of the Company’s deferred compensation plan liability and related assets, which are invested in mutual funds.
     Marketable Securities. With the exception of auction rate securities, the Company obtains pricing information from quoted market prices, pricing vendors or quotes from brokers/dealers. The Company conducts reviews of its primary pricing vendors to determine whether the inputs used in the vendor’s pricing processes are deemed to be observable.
The fair value of U.S. Treasury securities and government-related securities, corporate bonds and notes and common and preferred stock are generally determined using standard observable inputs, including reported trades, quoted market prices, matrix pricing, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets and/or benchmark securities.
The fair value of debt and equity mutual funds is reported as published net asset values. The Company assesses the daily frequency and size of transactions at published net asset values and/or the fund’s underlying holdings to determine whether fair value is based on observable or unobservable inputs.
The fair value of highly rated mortgage- and asset-backed securities is derived from the use of matrix pricing (prices for similar securities) or, in some cases cash flow pricing models with observable inputs, such as contractual terms, maturity, credit rating and/or securitization structure, to determine the timing and amount of future cash flows. Certain mortgage- and asset-backed securities, principally those that are rated below AAA, may require use of significant unobservable inputs to estimate fair value, such as default likelihood, recovery rates and prepayment speed.
The fair value of auction rate securities is estimated by the Company using a discounted cash flow model that incorporates transaction details such as contractual terms, maturity and timing and amount of future cash flows, as well as assumptions related to liquidity, default likelihood and recovery, the future state of the auction rate market and credit valuation adjustments of market participants. Though certain of the securities held by the Company are pools of student loans guaranteed by the U.S. government, prepayment speeds and illiquidity discounts are considered significant unobservable inputs. These additional inputs are generally unobservable, and therefore, auction rate securities are included in Level 3.
     Derivative Instruments. Derivative instruments include foreign currency option and forward contracts to manage foreign exchange risk for certain foreign currency transactions and certain balances denominated in a foreign currency, and written put options to repurchase shares of the Company’s common stock at fixed prices. Derivative instruments are valued using standard calculations/models that are primarily based on observable inputs, such as foreign currency exchange rates, the Company’s stock price, volatilities and interest rates. Therefore, derivative instruments are included in Level 2.
     Other Liabilities. Other liabilities included in Level 3 are comprised of put rights held by third parties representing interests in certain of the Company’s subsidiaries (Note 7). These put rights are valued with a standard option pricing model using significant unobservable inputs.
     Activity between Levels of the Fair Value Hierarchy. There were no significant transfers between Level 1 and Level 2 during fiscal 2011 or 2010. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. The following table includes the activity for marketable securities and other liabilities classified within Level 3 of the valuation hierarchy (in millions):
 
2011
 
2010
 
Auction Rate
Securities
 
Other Marketable
Securities
 
Other Liabilities
 
Auction Rate
Securities
 
Other Marketable
Securities
Beginning balance of Level 3
 $
126

 
 $
18

 
 $

 
 $
174

 
 $
31

Total realized and unrealized gains (losses):
 
 
 
 
 
 
 
 
 
Included in investment income, net

 
2

 
(1
)
 

 
5

Included in other comprehensive income
2

 
(1
)
 

 
7

 
(1
)
Purchases
4

 
6

 

 

 

Issuances

 

 
8

 

 

Settlements
(8
)
 
(6
)
 

 
(55
)
 
(21
)
Transfers into Level 3

 
8

 

 

 
4

Ending balance of Level 3
 $
124

 
 $
27

 
 $
7

 
 $
126

 
 $
18

 
 
 
 
 
 
 
 
 
 

The Company recognizes transfers into and out of levels within the fair value hierarchy at the end of the fiscal month in which the actual event or change in circumstances that caused the transfer occurs. Transfers into Level 3 in fiscal 2011 and 2010 primarily consisted of debt securities with significant inputs that became unobservable as a result of an increased likelihood of a shortfall in contractual cash flows or a significant downgrade in credit ratings.
     Nonrecurring Fair Value Measurements. The Company measures certain assets at fair value on a nonrecurring basis. These assets include cost and equity method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. During fiscal 2011, goodwill with a carrying amount of  $154 million was written down to its implied fair value of  $40 million, resulting in an impairment charge of  $114 million (Note 4). The implied fair value was based on significant unobservable inputs, and as a result, the fair value measurement was classified as Level 3. During fiscal 2011, 2010 and 2009, the Company did not have any other significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.
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Marketable Securities
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 3 - Marketable Securities
Note 3. Marketable Securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
September 25, 2011
 
September 26, 2010
 
September 25, 2011
 
September 26, 2010
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
 $
516

 
 $
650

 
 $
6

 
 $
4

Corporate bonds and notes
3,665

 
3,504

 
2,353

 
1,495

Mortgage- and asset-backed securities
587

 
629

 
91

 
38

Auction rate securities

 

 
124

 
126

Non-investment-grade debt securities
19

 
21

 
3,653

 
3,344

Common and preferred stock
76

 
52

 
1,713

 
1,670

Equity mutual and exchange-traded funds

 

 
845

 
979

Debt mutual funds
1,327

 
1,476

 

 

Total available-for-sale
6,190

 
6,332

 
8,785

 
7,656

Fair value option:
 
 
 
 
 
 
 
Debt mutual fund

 

 
476

 
467

Time deposits

 
400

 

 

Total marketable securities
 $
6,190

 
 $
6,732

 
 $
9,261

 
 $
8,123


The Company holds an investment in a debt mutual fund for which the Company elected the fair value option. The investment would have otherwise been recorded using the equity method. The debt mutual fund has no single maturity date. At September 25, 2011, the Company had an effective ownership interest in the debt mutual fund of 21%. Increases in fair value associated with this investment of  $9 million and  $17 million were recognized in net investment income in fiscal 2011 and 2010, respectively. The Company believes that recording the investment at fair value and reporting the investment as a marketable security is preferable to applying the equity method because the Company is able to redeem its shares at net asset value, which is determined daily. At September 26, 2010, marketable securities also included  $400 million of time deposits that matured in December 2010.
At September 25, 2011, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
No Single
 
 
Less Than
 
One to
 
Five to
 
Greater Than
 
Maturity
 
 
One Year
 
Five Years
 
Ten Years
 
Ten Years
 
Date
 
Total
 $
1,084

 
 $
4,600

 
 $
2,450

 
 $
952

 
 $
3,255

 
 $
12,341

Securities with no single maturity date included debt mutual funds, non-investment-grade debt securities, mortgage- and asset-backed securities and auction rate securities.
The Company recorded realized gains and losses on sales of available-for-sale marketable securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
Fiscal Year
 
 
 
 
 
2011
 $
356

 
 $
(30
)
 
 $
326

2010
415

 
(31
)
 
384

2009
215

 
(79
)
 
136

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
September 25, 2011
 
 
 
 
 
 
 
Equity securities
 $
2,426

 
 $
278

 
 $
(70
)
 
 $
2,634

Debt securities
12,179

 
294

 
(132
)
 
12,341

 
 $
14,605

 
 $
572

 
 $
(202
)
 
 $
14,975

September 26, 2010
 
 
 
 
 
 
 
Equity securities
 $
2,309

 
 $
403

 
 $
(11
)
 
 $
2,701

Debt securities
10,795

 
512

 
(20
)
 
11,287

 
 $
13,104

 
 $
915

 
 $
(31
)
 
 $
13,988


The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category (in millions):
 
September 25, 2011
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate bonds and notes
 $
1,862

 
 $
(41
)
 
 $
41

 
 $

Auction rate securities
3

 

 
121

 
(2
)
Non-investment-grade debt securities
1,867

 
(86
)
 
19

 
(3
)
Common and preferred stock
750

 
(70
)
 
4

 

 
 $
4,482

 
 $
(197
)
 
 $
185

 
 $
(5
)
 
September 26, 2010
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate bonds and notes
 $
425

 
 $
(1
)
 
 $
23

 
 $

Auction rate securities

 

 
126

 
(4
)
Non-investment-grade debt securities
296

 
(7
)
 
90

 
(8
)
Common and preferred stock
133

 
(10
)
 
3

 

Equity mutual and exchange-traded funds
277

 
(1
)
 

 

 
 $
1,131

 
 $
(19
)
 
 $
242

 
 $
(12
)

At September 25, 2011, the Company concluded that the unrealized losses were temporary. Further, for common and preferred stock with unrealized losses, the Company has the ability and the intent to hold such securities until they recover, which is expected to be within a reasonable period of time. For debt securities with unrealized losses, the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, such securities before recovery or maturity.
The following table shows the activity for the credit loss portion of other-than-temporary impairments on debt securities held by the Company (in millions):
 
2011
 
2010
 
2009
Beginning balance of credit losses
 $
109

 
 $
170

 
 $

Credit losses remaining in retained earnings upon adoption

 

 
186

Reductions in credit losses related to securities the Company intends to sell
(40
)
 

 
(14
)
Credit losses recognized on securities previously not impaired
2

 
1

 
17

Additional credit losses recognized on securities previously impaired

 
1

 
2

Reductions in credit losses related to securities sold
(20
)
 
(39
)
 
(21
)
Accretion of credit losses due to an increase in cash flows expected to be collected
(5
)
 
(24
)
 

Ending balance of credit losses
 $
46

 
 $
109

 
 $
170

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Composition of Certain Financial Statement Captions
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 4 - Composition of Certain Financial Statement Items
Note 4. Composition of Certain Financial Statement Items
     Accounts Receivable.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Trade, net of allowances for doubtful accounts of  $2 and  $3, respectively
 $
951

 
 $
697

Long-term contracts
32

 
25

Other
10

 
8

 
 $
993

 
 $
730


     Inventories.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Raw materials
 $
15

 
 $
15

Work-in-process
384

 
284

Finished goods
366

 
229

 
 $
765

 
 $
528


     Property, Plant and Equipment.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Land
 $
203

 
 $
201

Buildings and improvements
1,427

 
1,424

Computer equipment and software
1,267

 
1,144

Machinery and equipment
1,798

 
1,684

Furniture and office equipment
75

 
70

Leasehold improvements
263

 
242

Construction in progress
394

 
75

 
5,427

 
4,840

Less accumulated depreciation and amortization
(3,013
)
 
(2,467
)
 
 $
2,414

 
 $
2,373


Depreciation and amortization expense related to property, plant and equipment for fiscal 2011, 2010 and 2009 was  $704 million,  $437 million and  $428 million, respectively. The gross book values of property under capital leases included in buildings and improvements were  $175 million and  $227 million at September 25, 2011 and September 26, 2010, respectively. These capital leases principally related to base station towers and buildings. Amortization of assets recorded under capital leases is included in depreciation expense. Capital lease additions during fiscal 2011, 2010 and 2009 were  $1 million,  $40 million and  $50 million, respectively.
At September 25, 2011 and September 26, 2010, buildings and improvements and leasehold improvements with aggregate net book value of  $19 million and  $38 million, respectively, including accumulated depreciation and amortization of  $8 million and  $8 million, respectively, were leased to third parties or held for lease to third parties. Future minimum rental income on facilities leased to others in fiscal 2012 to 2015 is expected to be  $5 million,  $3 million,  $2 million and  $1 million, respectively, and zero thereafter.
     Goodwill and Other Intangible Assets. The Company’s reportable segment assets do not include goodwill. The Company allocates goodwill to its reporting units for annual impairment testing purposes. Goodwill was allocable to reporting units included in the Company’s reportable segments and to its QMT division, a nonreportable segment, as described in Note 10 as follows (in millions):
 
September 25, 2011
 
September 26, 2010
QCT
 $
2,456

 
 $
443

QTL
681

 
676

QWI
158

 
241

QMT
136

 
128

QSI
1

 

 
 $
3,432

 
 $
1,488


During fiscal 2011, the Firethorn division in the QWI segment introduced a new product application trademarked as SWAGG. The initial consumer adoption rate of SWAGG had fallen significantly short of the Company’s expectations, and as a result, the Company revised its internal forecasts to reflect lower than expected demand and reduced the Firethorn cost structure. Based on these adverse changes, the Company performed a goodwill impairment test for the Firethorn division, which was determined to be a reporting unit for purposes of the goodwill impairment test. The goodwill impairment test is a two-step process. First, the Company estimated the fair value of the Firethorn reporting unit by considering both discounted future projected cash flows and prices of comparable businesses. The results of this analysis indicated that the carrying value of the reporting unit exceeded its fair value. Therefore, the Company measured the amount of impairment charge by determining the implied fair value of the goodwill as if the Firethorn reporting unit were being acquired in a business combination. The Company determined the fair value of the assets and the liabilities, primarily using a cost approach. Based on the results of the goodwill impairment test, the Company recorded a pre-tax goodwill impairment charge of  $114 million in other operating expenses in fiscal 2011. Subsequent to the impairment,  $40 million of goodwill remained for the Firethorn reporting unit.
The components of other intangible assets were as follows (in millions):
 
September 25, 2011
 
September 26, 2010
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Gross Carrying
Amount
 
Accumulated
Amortization
Spectrum licenses
 $
20

 
 $
(2
)
 
 $
766

 
 $
(2
)
Marketing-related
72

 
(18
)
 
21

 
(13
)
Technology-based
3,767

 
(802
)
 
2,785

 
(537
)
Customer-related
132

 
(70
)
 
12

 
(10
)
 
 $
3,991

 
 $
(892
)
 
 $
3,584

 
 $
(562
)

Certain spectrum licenses with a carrying value of  $746 million that the Company has agreed to sell were classified as held for sale at September 25, 2011 (Note 11). All of the Company’s intangible assets, other than goodwill, certain spectrum licenses in the amount of  $16 million and acquired in-process research and development, are subject to amortization. Amortization expense related to these intangible assets for fiscal 2011, 2010 and 2009 was  $357 million,  $227 million and  $207 million, respectively, and amortization expense is expected to be  $457 million,  $438 million,  $426 million,  $385 million and  $277 million for fiscal 2012 to 2016, respectively, and  $1.1 billion thereafter.
     Other Current Liabilities.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Customer incentives and other customer-related liabilities
 $
1,180

 
 $
574

Current portion of payable to Broadcom (Note 9)
170

 
170

Payable for unsettled securities trades
298

 
80

Other
406

 
261

 
 $
2,054

 
 $
1,085

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Investment Income (Loss)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 5 - Investment Income (Loss)
Note 5. Investment Income (Loss)
Investment income (loss), net was comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Interest and dividend income
 $
500

 
 $
530

 
 $
516

Interest expense
(114
)
 
(43
)
 
(13
)
Net realized gains on marketable securities
335

 
401

 
136

Net realized gains on other investments
2

 
4

 
1

Impairment losses on marketable securities
(39
)
 
(111
)
 
(743
)
Impairment losses on other investments
(13
)
 
(14
)
 
(20
)
(Losses) gains on derivative instruments
(3
)
 
3

 
1

Equity in losses of investees
(7
)
 
(4
)
 
(17
)
 
 $
661

 
 $
766

 
 $
(139
)

*As adjusted for discontinued operations (Note 11)
Impairment losses on marketable securities for fiscal 2011 and 2010 did not contain any amount related to the noncredit portion of losses on debt securities recognized in other comprehensive income. Impairment losses on marketable securities for fiscal 2009 were comprised of total other-than-temporary impairment losses of  $747 million less  $4 million related to the noncredit portion of losses on debt securities recognized in other comprehensive income. The other-than-temporary losses on marketable securities in fiscal 2009 were generally caused by a prolonged disruption in U.S. and foreign credit and financial markets that depressed securities values.
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Income Taxes
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 6 - Income Taxes
Note 6. Income Taxes
The components of the income tax provision were as follows (in millions):
 
2011
 
2010
 
2009
Current provision:
 
 
 
 
 
Federal
 $
179

 
 $
1,514

 
 $
268

State
57

 
242

 
71

Foreign
670

 
389

 
291

 
906

 
2,145

 
630

Deferred provision:
 
 
 
 
 
Federal
170

 
(1,139
)
 
(72
)
State
62

 
(26
)
 
72

Foreign
(6
)
 
(7
)
 
(19
)
 
226

 
(1,172
)
 
(19
)
 
 $
1,132

 
 $
973

 
 $
611


The foreign component of the income tax provision consists primarily of foreign withholding taxes on royalty income included in United States earnings.
The components of income from continuing operations before income taxes by United States and foreign jurisdictions were as follows (in millions):
 
2011
 
2010
 
2009
United States
 $
2,984

 
 $
2,195

 
 $
1,368

Foreign
2,703

 
2,298

 
1,035

 
 $
5,687

 
 $
4,493

 
 $
2,403


The following is a reconciliation of the expected statutory federal income tax provision to the Company’s actual income tax provision for continuing operations (in millions):
 
2011
 
2010
 
2009
Expected income tax provision at federal statutory tax rate
 $
1,991

 
 $
1,573

 
 $
841

State income tax provision, net of federal benefit
283

 
226

 
113

Foreign income taxed at other than U.S. rates
(1,074
)
 
(897
)
 
(407
)
Tax audit impacts, net
1

 
3

 
(155
)
Tax credits
(151
)
 
(55
)
 
(112
)
Valuation allowance
42

 
(40
)
 
227

Revaluation of deferred taxes
69

 
152

 
74

Other
(29
)
 
11

 
30

 
 $
1,132

 
 $
973

 
 $
611


The revaluation of deferred taxes represents the impact of paying current taxes at a higher state effective tax rate than the effective tax rate that will be in effect when the resulting deferred tax asset or liability is scheduled to reverse. The Company has not recorded a deferred tax liability of approximately  $4.7 billion related to the United States federal and state income taxes and foreign withholding taxes on approximately  $13.5 billion of undistributed earnings of certain non-United States subsidiaries indefinitely invested outside the United States. Should the Company decide to repatriate the foreign earnings, the Company would have to adjust the income tax provision in the period management determined that the earnings will no longer be indefinitely invested outside the United States.
The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. Tax audit impacts, net reflects adjustments to the Company’s prior year estimates of uncertain tax positions as a result of various federal, state and foreign tax audits. The Company is currently a participant in the Internal Revenue Service (IRS) Compliance Assurance Process, whereby the IRS and the Company endeavor to agree on the treatment of all tax issues prior to the tax return being filed. The IRS completed its examination of the Company’s tax return for fiscal 2008 and issued a full acceptance letter for fiscal 2009 during the third quarter of fiscal 2010, resulting in an increase to the tax provision of  $20 million. The Company is no longer subject to United States federal income tax examinations for years prior to fiscal 2010. The Company is subject to examination by the California Franchise Tax Board for fiscal years after 2004 and is currently under examination for fiscal 2005 through 2008. The Company is also subject to income taxes in other taxing jurisdictions in the United States and around the world, many of which are open to tax examinations for periods after fiscal 2000.
The Company had deferred tax assets and deferred tax liabilities as follows (in millions):
 
September 25, 2011
 
September 26, 2010
Accrued liabilities, reserves and other
 $
205

 
 $
287

Share-based compensation
592

 
615

Capitalized start-up and organizational costs
91

 
102

Unearned revenues
1,269

 
1,311

Unrealized losses on marketable securities
309

 
341

Unrealized losses on other investments
28

 
27

Capital loss carryover
40

 
37

Tax credits
145

 
54

Unused net operating losses
97

 
64

Other basis differences
30

 
10

Total gross deferred assets
2,806

 
2,848

Valuation allowance
(98
)
 
(39
)
Total net deferred assets
2,708

 
2,809

Purchased intangible assets
(174
)
 
(108
)
Deferred contract costs
(7
)
 
(6
)
Unrealized gains on marketable securities
(206
)
 
(352
)
Property, plant and equipment
(85
)
 
(100
)
Total deferred liabilities
(472
)
 
(566
)
Net deferred assets
 $
2,236

 
 $
2,243

Reported as:
 
 
 
Current deferred tax assets
 $
537

 
 $
321

Non-current deferred tax assets
1,703

 
1,922

Current deferred tax liabilities (1)
(2
)
 

Non-current deferred tax liabilities(1)
(2
)
 

 
 $
2,236

 
 $
2,243

(1) Current deferred tax liabilities and non-current deferred tax liabilities are included in other current liabilities and other liabilities, respectively, in the consolidated balance sheets.
At September 25, 2011, the Company had unused federal net operating loss carryforwards of  $167 million expiring from 2021 through 2029, unused state net operating loss carryforwards of  $352 million expiring from 2012 through 2031, and unused foreign net operating loss carryforwards of  $76 million, which expire from 2012 through 2020. At September 25, 2011, the Company had unused tax credits of  $20 million in foreign jurisdictions, which expire in 2013. The Company does not expect its federal net operating loss carryforwards and its state income tax credits to expire unused.
The Company believes, more likely than not, that it will have sufficient taxable income after stock option related deductions to utilize the majority of its deferred tax assets. At September 25, 2011, the Company has provided a valuation allowance on certain foreign deferred tax assets, state net operating losses and net capital losses of  $76 million,  $10 million and  $12 million, respectively. The valuation allowances reflect the uncertainties surrounding the Company’s ability to generate sufficient future taxable income in certain foreign and state tax jurisdictions to utilize its net operating losses and the Company’s ability to generate sufficient capital gains to utilize all capital losses.
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2011, 2010 and 2009 follows (in millions):
 
2011
 
2010
 
2009
Beginning balance of unrecognized tax benefits
 $
353

 
 $
84

 
 $
244

Additions based on prior year tax positions
64

 
223

 
39

Reductions for prior year tax positions
(10
)
 
(58
)
 
(202
)
Additions for current year tax positions
12

 
165

 
3

Settlements with taxing authorities
(323
)
 
(61
)
 

Ending balance of unrecognized tax benefits
 $
96

 
 $
353

 
 $
84


At September 25, 2011, the Company does not expect any unrecognized tax benefits to result in cash payment in fiscal 2012. Unrecognized tax benefits at September 25, 2011 include  $88 million for tax positions that, if recognized, would impact the effective tax rate. The unrecognized tax benefits differ from the amount that would affect the Company’s effective tax rate primarily because the unrecognized tax benefits are included on a gross basis and do not reflect secondary impacts such as the federal deduction for state taxes, adjustments to deferred tax assets and the valuation allowance that might be required if the Company’s tax positions are sustained. The decrease in unrecognized tax benefits in fiscal 2011 was primarily due to an agreement reached on a component of the Company’s fiscal 2006 through fiscal 2010 state tax returns related to the method used by the Company to apportion income to states for such periods, which is partially offset by an increase resulting from the acquisition of Atheros (Note 12). The Company does not believe that it is reasonably possible that the total amounts of unrecognized tax benefits at September 25, 2011 will significantly increase or decrease in fiscal 2012. Interest expense related to uncertain tax positions was negligible in fiscal 2011, 2010 and 2009. The amount of accrued interest and penalties was negligible at September 25, 2011 and September 26, 2010.
Cash amounts paid for income taxes, net of refunds received, were  $2.1 billion,  $671 million and  $516 million for fiscal 2011, 2010 and 2009, respectively.
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Capital Stock
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 7 - Capital Stock
Note 7. Capital Stock
     Preferred Stock. The Company has 8,000,000 shares of preferred stock authorized for issuance in one or more series, at a par value of  $0.0001 per share. In conjunction with the distribution of preferred share purchase rights, 4,000,000 shares of preferred stock are designated as Series A Junior Participating Preferred Stock, and such shares are reserved for issuance upon exercise of the preferred share purchase rights. At September 25, 2011 and September 26, 2010, no shares of preferred stock were outstanding.
     Preferred Share Purchase Rights Agreement. The Company has a Preferred Share Purchase Rights Agreement (Rights Agreement) to protect stockholders’ interests in the event of a proposed takeover of the Company. Under the original Rights Agreement, adopted on September 26, 1995, the Company declared a dividend of one preferred share purchase right (a Right) for each share of the Company’s common stock outstanding. Pursuant to the Rights Agreement, as amended and restated on December 7, 2006, each Right entitles the registered holder to purchase from the Company a one one-thousandth share of Series A Junior Participating Preferred Stock,  $0.0001 par value per share, subject to adjustment for subsequent stock splits, at a purchase price of  $180. The Rights are exercisable only if a person or group (an Acquiring Person) acquires beneficial ownership of 20% or more of the Company’s outstanding shares of common stock without approval of the Board of Directors. Upon exercise, holders, other than an Acquiring Person, will have the right, subject to termination, to receive the Company’s common stock or other securities, cash or other assets having a market value, as defined, equal to twice such purchase price. The Rights, which expire on September 25, 2015, are redeemable in whole, but not in part, at the Company’s option prior to the time such Rights are triggered for a price of  $0.001 per Right. 
     Stock Repurchase Program. On March 1, 2010, the Company announced that it had been authorized to repurchase up to  $3.0 billion of the Company’s common stock. The stock repurchase program has no expiration date. Any shares repurchased are retired, and the amount paid in excess of par value is recorded to paid-in capital. During fiscal 2011, 2010 and 2009, the Company repurchased and retired 2,878,000, 79,789,000 and 8,920,000 shares of common stock, respectively, for  $142 million,  $3.0 billion and  $284 million, respectively, before commissions. At September 25, 2011, approximately  $1.0 billion remained authorized for repurchase under the Company’s stock repurchase program, net of put options outstanding. Since September 25, 2011, the Company repurchased 2,046,000 shares of the Company’s common stock for  $99 million.
In connection with the Company’s stock repurchase program, the Company sold three put options on its own stock during fiscal 2011. At September 25, 2011, the Company had three outstanding put options enabling holders to sell 11,800,000 shares of the Company’s common stock to the Company for approximately  $511 million (net of the  $75 million in put option premiums received). The recorded value of the put option liability of  $80 million at September 25, 2011 was recorded in other current liabilities. During fiscal 2011, the Company recognized losses of  $5 million in net investment income (loss) due to an increase in the fair value of the put options. No put options were outstanding during fiscal 2010 or 2009.
     Dividends. The Company announced increases in its quarterly dividend per share of common stock from  $0.16 to  $0.17 on March 3, 2009, from  $0.17 to  $0.19 on March 1, 2010, and from  $0.190 to  $0.215 on March 8, 2011. Dividends charged to retained earnings in fiscal 2011, 2010 and 2009 were as follows (in millions, except per share data):
 
2011
 
2010
 
2009
 
Per Share
 
Total
 
Per Share
 
Total
 
Per Share
 
Total
First quarter
 $
0.190

 
 $
314

 
 $
0.170

 
 $
284

 
 $
0.160

 
 $
264

Second quarter
0.190

 
319

 
0.170

 
279

 
0.160

 
264

Third quarter
0.215

 
360

 
0.190

 
309

 
0.170

 
282

Fourth quarter
0.215

 
368

 
0.190

 
305

 
0.170

 
283

 
 $
0.810

 
 $
1,361

 
 $
0.720

 
 $
1,177

 
 $
0.660

 
 $
1,093


On October 11, 2011, the Company announced a cash dividend of  $0.215 per share on the Company’s common stock, payable on December 21, 2011 to stockholders of record as of November 23, 2011, which will be reflected in the consolidated financial statements in the first quarter of fiscal 2012.
    Noncontrolling Interests. In June 2010, the Company won a 20 MHz slot of Broadband Wireless Access (BWA) spectrum in four telecom circles in India as a result of the completion of the BWA spectrum auction. Assignment of licenses to operate wireless networks on this spectrum, with an initial license period of 20 years, is pending approval by the Indian government. In September 2011, the Company received a letter from the Government of India’s Department of Telecommunications notifying the Company that its applications to obtain licenses to utilize the spectrum had been rejected. In response, the Company filed a petition with the Telecom Disputes Settlement and Appellate Tribunal seeking to overturn this letter (Note 9). If assigned, the Company will amortize the spectrum licenses over the remaining license period commencing upon the commercial launch of wireless services in India, which is expected to occur within five years of the assignment date. The Company’s goal is to attract one or more operator partners into a venture (or ventures) for construction of an LTE network in compliance with the Indian government's rollout requirement for the BWA spectrum and then to exit the venture(s). The manner and timing of such exit will be dependent upon a number of factors, such as market conditions and regulatory considerations, among others.
During the second quarter of fiscal 2011, in connection with the India BWA spectrum acquisition, certain of the Company’s subsidiaries in India issued noncontrolling interests to two third-party Indian investors for  $62 million, such that the Company now holds a 74% interest in each of those subsidiaries, the maximum interest permitted under applicable Indian Foreign Direct Investment regulations. In addition, the third parties representing the noncontrolling interests in the subsidiaries hold put rights that provide them with options to sell their ownership interests in the subsidiaries to QUALCOMM Incorporated or its nominee (subject to applicable regulatory approvals) after July 29, 2014, or earlier if certain events occur, at a price equal to their original capital contribution. The aggregate fair value of these put rights, which are accounted for as freestanding financial instruments classified in other liabilities, was  $7 million at September 25, 2011.
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Employee Benefit Plans
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 8 - Employee Benefit Plans
Note 8. Employee Benefit Plans
     Employee Savings and Retirement Plan. The Company has a 401(k) plan that allows eligible employees to contribute up to 100% of their eligible compensation, subject to annual limits. The Company matches a portion of the employee contributions and may, at its discretion, make additional contributions based upon earnings. The Company’s contribution expense was  $52 million in fiscal 2011 and  $46 million in both fiscal 2010 and 2009.
     Equity Compensation Plans. The 2006 Long-Term Incentive Plan (the 2006 Plan) was adopted during the second quarter of fiscal 2006 and replaced the 2001 Stock Option Plan and the 2001 Non-Employee Directors’ Stock Option Plan and their predecessor plans (the Prior Plans). The 2006 Plan provides for the grant of incentive and non-qualified stock options, restricted stock units, stock appreciation rights, restricted stock, performance units and shares and other share-based awards and is the source of shares issued under the Executive Retirement Matching Contribution Plan (ERMCP). The shares authorized under the 2006 Plan were approximately 483,284,000 at September 25, 2011, including 65,000,000 shares that were approved by the Company’s stockholders in March 2011. The share reserve remaining under the 2006 Plan was approximately 276,131,000 at September 25, 2011. Shares subject to any outstanding option under a Prior Plan that is terminated or cancelled (but not an option under a Prior Plan that expires) following the date that the 2006 Plan was approved by stockholders, and shares that are subject to an award under the ERMCP and are returned to the Company because they fail to vest, will again become available for grant under the 2006 Plan. The Board of Directors of the Company may amend or terminate the 2006 Plan at any time. Certain amendments, including an increase in the share reserve, require stockholder approval.
During fiscal 2011, the Company assumed a total of 9,564,000 outstanding stock awards under various stock-based incentive plans (the Assumed Plans) as a result of the acquisition of Atheros (Note 12). The Assumed Plans provided for the grant of incentive stock options, non-qualified stock options, restricted stock units and other stock-based awards. The Company can continue to grant stock awards under one of the Assumed Plans, the Atheros Communications, Inc. 2004 Stock Incentive Plan, as amended, (the Atheros Plan) to certain employees. The share reserve under the Atheros Plan was 9,733,000 at September 25, 2011. All other remaining shares available under Assumed Plans were terminated on the date of the acquisition, and no additional shares may be granted under those plans.
Net share-based awards, after forfeitures and cancellations, granted during fiscal 2011, 2010 and 2009 represented 0.7%, 1.2% and 2.2% of outstanding shares as of the beginning of each fiscal year, respectively. Total share-based awards granted during fiscal 2011, 2010 and 2009 represented 0.9%, 1.9% and 2.5%, respectively, of outstanding shares as of the end of each fiscal year.
     Stock Options: The Board of Directors may grant options to selected employees, directors and consultants to the Company to purchase shares of the Company’s common stock at a price not less than the fair market value of the stock at the date of grant. Generally, options vest over periods not exceeding five years and are exercisable for up to ten years from the grant date. A summary of stock option transactions for all equity compensation plans follows:
 
Number of Shares
(In thousands)
 
Weighted- Average
Exercise
Price
 
Average Remaining
Contractual Term
(Years)
 
Aggregate Intrinsic
Value
(In billions)
Options outstanding at September 26, 2010
214,958

 
 $
38.51

 
 
 
 
Options granted
1,220

 
48.37

 
 
 
 
Options assumed(1)
4,603

 
29.63

 
 
 
 
Options cancelled/forfeited/expired
(4,250
)
 
40.99

 
 
 
 
Options exercised
(67,279
)
 
36.60

 
 
 
 
Options outstanding at September 25, 2011
149,252

 
 $
39.10

 
5.65

 
 $
1.7

Exercisable at September 25, 2011
101,472

 
 $
38.39

 
4.89

 
 $
1.2



(1) Represents activity related to options that were assumed as a result of an acquisition (Note 12).
At September 25, 2011, total unrecognized estimated compensation expense related to non-vested stock options granted prior to that date was  $636 million, which is expected to be recognized over a weighted-average period of 2.0 years. The total intrinsic value of stock options exercised during fiscal 2011, 2010 and 2009 was  $1.1 billion,  $208 million and  $272 million, respectively. The Company recorded cash received from the exercise of stock options of  $2.5 billion,  $565 million and  $534 million and related tax benefits of  $421 million,  $80 million and  $106 million during fiscal 2011, 2010 and 2009, respectively. Upon option exercise, the Company issues new shares of stock.
     Restricted Stock Units: RSUs are share awards that entitle the holder to receive shares of the Company’s common stock upon vesting. The RSUs generally include dividend-equivalent rights and generally vest three years from the date of grant. A summary of RSU transactions for all equity compensation plans follows:
 
Number of Shares
(In thousands)
 
Weighted-Average
Grant Date Fair
Value
 
Aggregate Intrinsic
Value
(In billions)
RSUs outstanding at September 26, 2010
5,555

 
 $
35.72

 
 
RSUs granted
13,687

 
52.84

 
 
RSUs assumed(1)
4,961

 
50.94

 
 
RSUs cancelled/forfeited
(654
)
 
43.67

 
 
RSUs vested
(797
)
 
49.51

 
 
RSUs outstanding at September 25, 2011
22,752

 
 $
48.69

 
 $
1.1



(1) Represents activity related to RSUs that were assumed as a result of an acquisition (Note 12).
At September 25, 2011, total unrecognized estimated compensation cost related to non-vested RSUs granted prior to that date was  $803 million, which is expected to be recognized over a weighted-average period of 2.3 years. The total vest-date fair value of RSUs that vested during fiscal 2011 and 2010 was  $43 million and  $1 million, respectively. No RSUs vested in fiscal 2009. For the majority of RSUs, shares are issued on the vesting dates net of the amount of shares needed to satisfy statutory tax withholding requirements to be paid by the Company on behalf of the employees. The total shares withheld were approximately 243,000 in fiscal 2011 and were based on the value of the RSUs on their vesting dates as determined by the Company’s closing stock price. Total payments for the employees’ tax obligations to the taxing authorities were  $14 million in fiscal 2011.
     Employee Stock Purchase Plan. The Company has an employee stock purchase plan for eligible employees to purchase shares of common stock at 85% of the lower of the fair market value on the first or the last day of each offering period, which is generally six months. Employees may authorize the Company to withhold up to 15% of their compensation during any offering period, subject to certain limitations. The employee stock purchase plan includes a non-423(b) plan. The shares authorized under the employee stock purchase plan were approximately 46,709,000 at September 25, 2011. The shares reserved for future issuance were approximately 18,411,000 at September 25, 2011. During fiscal 2011, 2010 and 2009, approximately 3,778,000, 3,782,000 and 3,654,000 shares, respectively, were issued under the plan at an average price of  $36.82,  $32.81 and  $29.72 per share, respectively.
At September 25, 2011, total unrecognized estimated compensation cost related to non-vested purchase rights granted prior to that date was  $17 million. The Company recorded cash received from the exercise of purchase rights of  $139 million,  $124 million and  $109 million during fiscal 2011, 2010 and 2009, respectively.
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Commitments and Contingencies
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 9 - Commitments and Contingencies
Note 9. Commitments and Contingencies
     Legal Proceedings. Tessera, Inc. v. QUALCOMM Incorporated: On April 17, 2007, Tessera filed a patent infringement lawsuit in the United States District Court for the Eastern District of Texas and a complaint with the United States International Trade Commission (ITC) pursuant to Section 337 of the Tariff Act of 1930 against the Company and other companies, alleging infringement of two patents. The district court action is stayed pending resolution of the ITC proceeding, including all appeals. On May 20, 2009, the ITC issued a limited exclusion order and a cease and desist order, both of which were terminated when the patents expired on September 24, 2010. During the period of the exclusion order, the Company shifted supply of accused chips for customers who manufacture products that may be imported to the United States to a licensed supplier of Tessera, and the Company continued to supply those customers without interruption. On December 21, 2010, the United States Court of Appeals for the Federal Circuit issued a decision affirming the ITC’s orders, and on March 29, 2011, it declined to reconsider that decision. The Company has appealed to the United States Supreme Court, which may or may not accept this case for appeal. Once the stay is lifted, Tessera may continue to seek back damages in the district court, but it may not seek injunctive relief due to the expiration of the patents.
MicroUnity Systems Engineering, Inc. v. QUALCOMM Incorporated et al.: MicroUnity filed a total of three patent infringement complaints, on March 16, 2010, June 3, 2010 and January 27, 2011, against the Company and a number of other technology companies, including Texas Instruments, Samsung, Apple, Nokia, Google and HTC, in the United States District Court for the Eastern District of Texas. The complaints against the Company allege infringement of a total of 15 patents and appear to accuse the Company’s Snapdragon products. The district court consolidated the actions in May 2011. The claim construction hearing is set for August 12, 2012, and trial is scheduled for June 3, 2013. On September 30, 2011, the court denied the Company’s motion to sever the claims against it from the other defendants and to transfer the case to the United States District Court for the Northern District of California.
    Broadcom Corporation et al. v. Commonwealth Scientific and Industrial Research Organisation (CSIRO): On November 10, 2009, Broadcom and Atheros (Note 12), which was acquired by the Company in May 2011, filed a complaint for declaratory judgment against (CSIRO) in the United States District Court for the Eastern District of Texas, requesting the court to declare, among other things, that United States patent number 5,487,069 (the ’069 Patent) assigned to CSIRO is invalid, unenforceable and that Atheros does not infringe any valid claims of the ’069 Patent. On October 14, 2010, CSIRO filed a complaint against Atheros and Broadcom (amended and consolidated with complaints against other third parties on April 6, 2011) alleging infringement of the ’069 Patent. A claim construction hearing was held on October 4, 2011, and trial is scheduled for April 9, 2012.
MOSAID Technologies Incorporated v. Dell, Inc. et al.: On March 16, 2011, MOSAID filed a complaint against Atheros and 32 other entities in the United States District Court for the Eastern District of Texas. In its infringement contentions, MOSAID alleges that certain of Atheros’ products infringe United States patent numbers 5,131,006, 5,151,920, 5,422,887, 5,706,428, 5,563,786 and 6,992,972. MOSAID seeks unspecified damages and other relief. Discovery has not yet begun. A claim construction hearing is scheduled for February 18, 2014, and trial is scheduled for August 4, 2014.
     India BWA Spectrum: In connection with the BWA spectrum won in India in June 2010, the Company recorded a payment in noncurrent other assets, which was  $994 million and  $1.1 billion at September 25, 2011 and September 26, 2010, respectively. In addition, the Company created four wholly-owned subsidiaries. On August 9, 2010, each subsidiary filed an application to obtain a license to operate a wireless network on this spectrum for one of the respective regions. Thereafter, two Indian companies each acquired 13% of each subsidiary. On September 21, 2011, the Company received a letter dated September 7, 2011 from the Government of India’s Department of Telecommunications (DoT) (the DoT Letter) notifying the Company that its applications had been rejected based on its conclusion that the applications were filed after the deadline and that the Company was restricted to filing one application rather than four. On September 27, 2011, the Company filed a petition with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) seeking to overturn the DoT Letter. On September 28, 2011, the TDSAT issued an order granting the Company interim relief, pending a final determination of the case, directing the DoT to (i) not issue the spectrum that has been earmarked to the Company to anyone else and (ii) not forfeit or appropriate the payment that the Company made for the spectrum. On October 10, 2011, one of the Company’s subsidiaries received a letter from the DoT offering to issue it a license that would cover all of India, including the four regions for which the Company won spectrum at the June 2010 auction, assuming that the subsidiary met certain requirements by November 9, 2011. On October 18, 2011, the subsidiary submitted to the DoT a letter accepting the DoT’s offer, requesting issuance of a license as soon as possible after the requirements were met, and stating that upon issuance of the license, the Company’s three other subsidiaries would merge into the subsidiary that had been granted a license. On October 19, 2011, the DoT filed a reply to the Company’s September 27, 2011 petition with the TDSAT. In its reply, the DoT stated that upon issuance of a license, the Company’s subsidiary could apply for assignment of the spectrum, and at that time, the DoT would decide whether to grant the requested assignment and whether the Company’s applications for licenses were timely filed in accordance with its rules. On October 20, 2011, the TDSAT conducted a second hearing on the Company’s case. At the conclusion of the hearing, the TDSAT ordered the DoT to clarify the aforementioned statements in its October 19, 2011 reply in light of its October 10, 2011 offer. The TDSAT scheduled another hearing for November 8, 2011. If the Company does not ultimately prevail, the Company’s subsidiary may not receive a license or an assignment of the spectrum that the Company won in the auction; and in either of those events, the Company’s payment for the spectrum may not be returned.
Icera Complaint to the European Commission: On June 7, 2010, the European Commission (the Commission) notified and provided the Company with a redacted copy of a complaint filed with the Commission by Icera, Inc. alleging that the Company has engaged in anticompetitive activity. The Company has been asked by the Commission to submit a preliminary response to the portions of the complaint disclosed to it, and the Company submitted its response in July 2010. On October 19, 2011, the Commission notified the Company that it should provide to the Commission additional documents and information. The Company continues to cooperate fully with the Commission’s preliminary investigation.
Korea Fair Trade Commission (KFTC) Complaint: On January 4, 2010, the KFTC issued a written decision, finding that the Company had violated South Korean law by offering certain discounts and rebates for purchases of its CDMA chips and for including in certain agreements language requiring the continued payment of royalties after all licensed patents have expired. The KFTC levied a fine, which the Company paid in the second quarter of fiscal 2010. The Company is appealing that decision in the Korean courts. The Company recorded a charge of  $230 million in other operating expenses related to this fine in fiscal 2009.
     Japan Fair Trade Commission (JFTC) Complaint: The JFTC received unspecified complaints alleging that the Company’s business practices are, in some way, a violation of Japanese law. On September 29, 2009, the JFTC issued a cease and desist order concluding that the Company’s Japanese licensees were forced to cross-license patents to the Company on a royalty-free basis and were forced to accept a provision under which they agreed not to assert their essential patents against the Company’s other licensees who made a similar commitment in their license agreements with the Company. The cease and desist order seeks to require the Company to modify its existing license agreements with Japanese companies to eliminate these provisions while preserving the license of the Company’s patents to those companies. The Company disagrees with the conclusions that it forced its Japanese licensees to agree to any provision in the parties’ agreements and that those provisions violate the Japanese Antimonopoly Act. The Company has invoked its right under Japanese law to an administrative hearing before the JFTC. In February 2010, the Tokyo High Court granted the Company’s motion and issued a stay of the cease and desist order pending the administrative hearing before the JFTC. The JFTC has had ten hearing days to date, with an additional hearing day scheduled on December 15, 2011 and additional hearing days yet to be scheduled.
     Formal Order of Private Investigation: On September 8, 2010, the Company was notified by the Securities and Exchange Commission’s (SEC) Los Angeles Regional office of a formal order of private investigation. The Company understands that the investigation arose from a “whistleblower’s” allegations made in December 2009 to the audit committee of the Company’s Board of Directors and to the SEC. The audit committee completed an internal review with the assistance of independent counsel and independent forensic accountants. This internal review into the allegations and related accounting practices did not identify any errors in the Company’s financial statements. The Company continues to cooperate with the SEC’s ongoing investigation.
     Other: The Company has been named, along with many other manufacturers of wireless phones, wireless operators and industry-related organizations, as a defendant in purported class action lawsuits, and individually filed actions pending in federal court in Pennsylvania and Washington D.C. superior court, seeking monetary damages arising out of its sale of cellular phones. The federal class action has been dismissed, leaving only the individually filed actions in Washington D.C. active.
While there can be no assurance of favorable outcomes, the Company believes the claims made by other parties in the foregoing matters are without merit and will vigorously defend the actions. The Company has not recorded any accrual at September 25, 2011 for contingent liabilities or recognized any asset impairment charges during fiscal 2011 associated with the legal proceedings described above based on the Company’s belief that liabilities, while possible, are not probable. Further, any possible range of loss cannot be reasonably estimated at this time. The Company is engaged in numerous other legal actions not described above arising in the ordinary course of its business and, while there can be no assurance, believes that the ultimate outcome of these actions will not have a material adverse effect on its operating results, liquidity or financial position.
     Litigation Settlement, Patent License and Other Related Items. On April 26, 2009, the Company entered into a Settlement and Patent License and Non-Assert Agreement with Broadcom. The Company agreed to pay Broadcom  $891 million, of which  $589 million was paid through September 25, 2011, and the remainder will be paid ratably through April 2013. The Company recorded a pre-tax charge of  $783 million in other operating expenses related to this agreement in fiscal 2009. At September 25, 2011, the carrying value of the liability was  $294 million, which also approximated the fair value of the contractual liability net of imputed interest.
   Loans Payable Related to India BWA Spectrum. In connection with the India BWA spectrum won in India in June 2010, certain of the Company’s subsidiaries in India entered into loan agreements with multiple lenders that are denominated in Indian rupees. The loans bear interest at an annual rate based on the highest rate among the bank lenders, which is reset quarterly, plus 0.25% (10% at September 25, 2011) with interest payments due monthly. The loans are due and payable in full in December 2012. As of September 25, 2011, all but one of the lenders had the right to demand prepayment of its portion of the loans outstanding on December 15, 2011 subject to sufficient prior written notice. As a result, the loans were classified as a component of current liabilities. The date by which those lenders were required to have given notice has now passed, and those lenders can no longer demand prepayment. One remaining lender can demand prepayment of its portion of the loans outstanding on February 28, 2012 ( $152 million at September 25, 2011) if notice is given by December 15, 2011. The loan agreements also define certain events as events of default, including, among other things, if certain government authorizations are revoked, terminated, withdrawn, suspended, modified or withheld. If the DoT’s rejection of the Company's license applications were to be considered an event of default, the bank lenders could declare the loans due and payable immediately. The Company has received waivers from each of the bank lenders related to this matter until at least April 1, 2012, conditioned upon the Company continuing to pursue its legal rights in this matter, and agreeing that any default will be deemed cured under certain circumstances, including if one of the relevant subsidiaries is granted the license and the other three are pursuing a merger into the subsidiary that has been offered a license. The loans can be prepaid without penalty on certain dates and are guaranteed by QUALCOMM Incorporated and one of its subsidiaries. The loan agreements contain standard covenants, which, among other things, limit actions by the subsidiaries that are party to the loan agreements, including the incurrence of loans and equity investments, disposition of assets, mergers and consolidations and other matters customarily restricted in such agreements. At September 25, 2011, the aggregate carrying value of the loans was  $994 million, which approximated fair value. Cash amounts paid for interest on the loans were  $94 million and  $15 million for fiscal 2011 and 2010, respectively.
     Indemnifications. With the exception of the practices of Atheros, which the Company acquired in May 2011 (Note 12), the Company generally does not indemnify its customers and licensees for losses sustained from infringement of third-party intellectual property rights. However, the Company is contingently liable under certain product sales, services, license and other agreements to indemnify certain customers against certain types of liability and/or damages arising from qualifying claims of patent infringement by products or services sold or provided by the Company. The Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by the Company. Under Atheros’ indemnification agreements, software license agreements and product sale agreements, including its standard software license agreements and standard terms and conditions of semiconductor sales, Atheros agrees, subject to restrictions and after certain conditions are met, to indemnify and defend its licensees and customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and to pay any judgments entered on such claims against the licensees or customers. Through September 25, 2011, Atheros has received a number of claims from its direct and indirect customers and other third parties for indemnification under such agreements with respect to alleged infringement of third-party intellectual property rights by Atheros’ products.
These indemnification arrangements are not initially measured and recognized at fair value because they are deemed to be similar to product warranties in that they relate to claims and/or other actions that could impair the ability of the Company’s direct or indirect customers to use the Company’s products or services. Accordingly, the Company records liabilities resulting from the arrangements when they are probable and can be reasonably estimated. Reimbursements under indemnification arrangements have not been material to the Company’s consolidated financial statements. The Company has not recorded any accrual for contingent liabilities at September 25, 2011 associated with these indemnification arrangements, other than negligible amounts for reimbursement of legal costs, based on the Company’s belief that additional liabilities, while possible, are not probable. Further, any possible range of loss cannot be estimated at this time.
     Purchase Obligations. The Company has agreements with suppliers and other parties to purchase inventory, other goods and services and long-lived assets. Noncancelable obligations under these agreements at September 25, 2011 for each of the subsequent five years from fiscal 2012 through 2016 were approximately  $1.9 billion,  $62 million,  $40 million,  $37 million and  $27 million, respectively, and  $9 million thereafter. Of these amounts, for fiscal 2012 and 2013, commitments to purchase integrated circuit product inventories comprised  $1.4 billion and  $2 million, respectively.
    Leases. The future minimum lease payments for all capital leases and operating leases at September 25, 2011 were as follows (in millions):
 
Capital
Leases
 
Operating
Leases
 
Total
2012
 $
12

 
 $
115

 
 $
127

2013
12

 
60

 
72

2014
13

 
50

 
63

2015
13

 
33

 
46

2016
14

 
25

 
39

Thereafter
331

 
181

 
512

Total minimum lease payments
395

 
 $
464

 
 $
859

Deduct: Amounts representing interest
224

 
 
 
 
Present value of minimum lease payments
171

 
 
 
 
Deduct: Current portion of capital lease obligations
1

 
 
 
 
Long-term portion of capital lease obligations
 $
170

 
 
 
 

The Company leases certain of its land, facilities and equipment under noncancelable operating leases, with terms ranging from less than one year to 35 years and with provisions in certain leases for cost-of-living increases. Rental expense for fiscal 2011, 2010 and 2009 was  $87 million,  $85 million and  $80 million, respectively. The Company leases certain property under capital lease agreements associated with its discontinued operations (Note 11), primarily related to site leases that have an initial term of five to seven years with renewal options of up to five additional renewal periods. In determining the capital lease classification for the site leases upon commencement of each lease, the Company included all renewal options. As a result of its restructuring plan, the Company does not intend to renew its existing site capital leases. At September 25, 2011, the Company had  $149 million of site capital lease assets (which are included in buildings and improvements in property, plant and equipment) and  $170 million of capital lease obligations (which are included in other liabilities) that pertain to lease optional renewal periods. The Company expects to write off these amounts at the end of the current contractual lease terms. Any early terminations may impact the amounts that are written off.
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Segment Information
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 10 - Segment Information
Note 10. Segment Information
The Company is organized on the basis of products and services. The Company aggregates four of its divisions into the Qualcomm Wireless & Internet segment and three of its divisions into the Qualcomm Strategic Initiatives (QSI) segment. Reportable segments are as follows:
Qualcomm CDMA Technologies (QCT) — develops and supplies integrated circuits and system software based on CDMA, OFDMA and other technologies for use in voice and data communications, networking, application processing, multimedia and global positioning system products;
Qualcomm Technology Licensing (QTL) — grants licenses or otherwise provides rights to use portions of the Company’s intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products, including, without limitation, products implementing cdmaOne, CDMA2000, WCDMA, CDMA TDD (including TD-SCDMA), GSM/GPRS/EDGE and/or OFDMA standards, and collects fixed license fees and royalties in partial consideration for such licenses;
Qualcomm Wireless & Internet (QWI) — comprised of:
Qualcomm Internet Services (QIS) — provides content enablement services for the wireless industry and push-to-talk and other products and services for wireless network operators;
Qualcomm Government Technologies (QGOV) — provides development, hardware, analytical expertise and services to United States government agencies involving wireless communications technologies;
Qualcomm Enterprise Services (QES) — provides satellite- and terrestrial-based two-way wireless information and position reporting services to transportation and logistics companies and other enterprise companies with fleet vehicles; and
Firethorn — builds and manages software applications that enable certain mobile commerce services.
Qualcomm Strategic Initiatives (QSI) — comprised of the Company’s Qualcomm Ventures, Structured Finance & Strategic Investments and FLO TV divisions. QSI makes strategic investments that the Company believes will open new opportunities for its technologies, support the design and introduction of new products or services for voice and data communications or possess unique capabilities or technology. Many of these strategic investments are in early-stage companies. QSI also holds spectrum licenses. The results of QSI’s FLO TV business is presented as discontinued operations (Note 11).
The Company evaluates the performance of its segments based on earnings (loss) before income taxes (EBT) from continuing operations. Segment EBT includes the allocation of certain corporate expenses to the segments, including depreciation and amortization expense related to unallocated corporate assets. Certain income and charges are not allocated to segments in the Company’s management reports because they are not considered in evaluating the segments’ operating performance. Unallocated income and charges include certain investment income (loss); certain share-based compensation; and certain research and development expenses and other selling and marketing expenses that were deemed to be not directly related to the businesses of the segments. Additionally, starting with acquisitions in the third quarter of fiscal 2011, unallocated charges include recognition of the step-up of inventories to fair value and amortization of certain intangible assets. Such charges related to acquisitions that were completed prior to the third quarter of fiscal 2011 are allocated to the respective segments. The table below presents revenues, EBT and total assets for reportable segments (in millions):
 
QCT
 
QTL
 
QWI
 
QSI*
 
Reconciling
Items*
 
Total*
2011
 
 
 
 
 
 
 
 
 
 
 
Revenues
 $
8,859

 
 $
5,422

 
 $
656

 
 $

 
 $
20

 
 $
14,957

EBT
2,056

 
4,753

 
(152
)
 
(132
)
 
(838
)
 
5,687

Total assets
1,569

 
36

 
136

 
2,386

 
32,295

 
36,422

2010
 
 
 
 
 
 
 
 
 
 
 
Revenues
 $
6,695

 
 $
3,659

 
 $
628

 
 $

 
 $

 
 $
10,982

EBT
1,693

 
3,020

 
12

 
7

 
(239
)
 
4,493

Total assets
1,085

 
28

 
129

 
2,745

 
26,585

 
30,572

2009
 
 
 
 
 
 
 
 
 
 
 
Revenues
 $
6,135

 
 $
3,605

 
 $
641

 
 $

 
 $
6

 
 $
10,387

EBT
1,441

 
3,068

 
20

 
(54
)
 
(2,072
)
 
2,403

Total assets
892

 
89

 
142

 
1,614

 
24,708

 
27,445


*Revenues and EBT for fiscal 2010 and 2009 were adjusted to present discontinued operations (Note 11). Share-based payments that had been included in reconciling items and QSI revenues and EBT have been adjusted to conform for all periods presented.
Segment assets are comprised of accounts receivable and inventories for all reportable segments other than QSI. QSI segment assets include certain marketable securities, notes receivable, spectrum licenses, other investments and all assets of QSI’s consolidated subsidiaries. QSI segment assets related to the discontinued FLO TV business totaled  $913 million at September 25, 2011 and  $1.3 billion at both September 26, 2010 and September 27, 2009. QSI assets at September 25, 2011, September 26, 2010 and September 27, 2009 also included  $20 million,  $20 million and  $10 million, respectively, related to investments in equity method investees. Reconciling items for total assets included  $806 million,  $384 million and  $389 million at September 25, 2011, September 26, 2010 and September 27, 2009, respectively, of goodwill and other assets related to the Company’s QMT division, a nonreportable segment developing display technology for mobile devices and other applications. Total segment assets also differ from total assets on a consolidated basis as a result of unallocated corporate assets primarily comprised of certain cash, cash equivalents, marketable securities, property, plant and equipment, deferred tax assets, goodwill, other intangible assets and assets of nonreportable segments. The net book values of long-lived assets located outside of the United States were  $629 million,  $221 million and  $256 million at September 25, 2011, September 26, 2010 and September 27, 2009, respectively. The net book values of long-lived assets located in the United States were  $1.8 billion,  $2.2 billion and  $2.1 billion at September 25, 2011, September 26, 2010 and September 27, 2009, respectively.
Revenues from each of the Company’s divisions aggregated into the QWI reportable segment were as follows (in millions):
 
2011
 
2010
 
2009
QES
 $
395

 
 $
376

 
 $
344

QIS
150

 
173

 
229

QGOV
100

 
74

 
66

Firethorn
11

 
7

 
3

Eliminations

 
(2
)
 
(1
)
 
 $
656

 
 $
628

 
 $
641


Other reconciling items were comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Revenues
 
 
 
 
 
Elimination of intersegment revenues
 $
(3
)
 
 $
(10
)
 
 $
(15
)
Other nonreportable segments
23

 
10

 
21

 
 $
20

 
 $

 
 $
6

EBT
 
 
 
 
 
Unallocated cost of equipment and services revenues
 $
(210
)
 
 $
(42
)
 
 $
(40
)
Unallocated research and development expenses
(553
)
 
(401
)
 
(372
)
Unallocated selling, general and administrative expenses
(506
)
 
(336
)
 
(293
)
Unallocated other operating expenses

 

 
(1,013
)
Unallocated investment income (loss), net
756

 
767

 
(141
)
Other nonreportable segments
(324
)
 
(224
)
 
(206
)
Intersegment eliminations
(1
)
 
(3
)
 
(7
)
 
 $
(838
)
 
 $
(239
)
 
 $
(2,072
)

*As adjusted for discontinued operations (Note 11)
Reconciling items for fiscal 2011 included  $143 million,  $59 million and  $6 million of unallocated cost of equipment and services revenue, unallocated selling, general and administrative expenses and unallocated research and development expenses, respectively, related to the step-up of inventories to fair value and amortization of intangible assets resulting from acquisitions. Other nonreportable segments’ losses before taxes during fiscal 2011, 2010 and 2009 were primarily attributable to the Company’s QMT division.
Specified items included in segment EBT were as follows (in millions):
 
QCT
 
QTL
 
QWI
 
QSI*
2011
 
 
 
 
 
 
 
Revenues from external customers
 $
8,856

 
 $
5,422

 
 $
656

 
 $

Intersegment revenues
3

 

 

 

Interest income
1

 
1

 

 
20

Interest expense
1

 

 

 
99

2010
 
 
 
 
 
 
 
Revenues from external customers
 $
6,686

 
 $
3,659

 
 $
628

 
 $

Intersegment revenues
9

 

 

 

Interest income
1

 
2

 
2

 
8

Interest expense
1

 

 
(4
)
 
27

2009
 
 
 
 
 
 
 
Revenues from external customers
 $
6,125

 
 $
3,603

 
 $
638

 
 $

Intersegment revenues
10

 
2

 
3

 

Interest income
4

 
12

 
1

 
3

Interest expense

 
1

 
1

 


*As adjusted for discontinued operations (Note 11)
Intersegment revenues are based on prevailing market rates for substantially similar products and services or an approximation thereof, but the purchasing segment may record the cost of revenues at the selling segment’s original cost. In that event, the elimination of the selling segment’s gross margin is included with other intersegment eliminations in reconciling items. Effectively all equity in earnings (losses) of investees was recorded in QSI in fiscal 2011, 2010 and 2009.
The Company distinguishes revenues from external customers by geographic areas based on the location to which its products, software or services are delivered and, for QTL licensing revenues, the invoiced addresses of its licensees. Sales information by geographic area was as follows (in millions):
 
2011
 
2010*
 
2009*
China
 $
4,744

 
 $
3,194

 
 $
2,378

South Korea
2,887

 
2,913

 
3,655

Taiwan
2,550

 
1,360

 
831

Japan
1,165

 
1,018

 
1,098

United States
897

 
555

 
603

Other foreign
2,714

 
1,942

 
1,822

 
 $
14,957

 
 $
10,982

 
 $
10,387


*As adjusted for discontinued operations (Note 11)
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Discontinued Operations
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 11 - Discontinued Operations
Note 11. Discontinued Operations
On December 20, 2010, the Company agreed to sell substantially all of its 700 MHz spectrum for  $1.9 billion, subject to the satisfaction of customary closing conditions, including approval by the U.S. Federal Communications Commission (FCC). The agreement terminates on January 13, 2013; however, either party can extend the agreement for another 90 days thereafter if the FCC approval has not been received by then. The agreement followed the Company’s previously announced plan to restructure and evaluate strategic options related to the FLO TV business and network. The FLO TV business and network were shut down on March 27, 2011. Since then, the Company has been working to sell the remaining assets and exit contracts. The 700 MHz spectrum with a carrying value of  $746 million that the Company has agreed to sell was classified as held for sale, and all other assets were considered disposed of at September 25, 2011. Accordingly, the results of operations of the FLO TV business were presented as discontinued operations at September 25, 2011. Loss from discontinued operations includes share-based payments and excludes certain general corporate expenses allocated to the FLO TV business during the periods presented. The Company’s consolidated statements of operations for all prior periods presented have been adjusted to conform.
Summarized results from discontinued operations were as follows (in millions):
 
Year Ended
 
September 25, 2011
 
September 26, 2010
 
September 27, 2009
Revenues
 $
5

 
 $
9

 
 $
29

Loss from discontinued operations
(507
)
 
(459
)
 
(327
)
Income tax benefit
194

 
186

 
127

Discontinued operations, net of income taxes
 $
(313
)
 
 $
(273
)
 
 $
(200
)
The carrying amounts of the major classes of assets and liabilities of discontinued operations in the consolidated balance sheet were as follows (in millions):
 
September 25, 2011
Assets
 
Current assets
 $
10

Property, plant and equipment, net
156

Assets held for sale
746

Other assets
1

 
 $
913

Liabilities
 
Trade accounts payable
 $
2

Payroll and other benefits related liabilities
2

Other current liabilities
75

Other noncurrent liabilities
183

 
 $
262


The Company has a significant number of site leases, and the Company has corresponding capital lease assets, capital lease liabilities and asset retirement obligations (Note 9). The capital lease assets, included in property, plant and equipment, net, were considered disposed of at March 27, 2011 when the Company shut down the FLO TV business.
Restructuring and restructuring-related activities under the Company’s plan related to discontinued operations were initiated in the fourth quarter of fiscal 2010 and are expected to be substantially complete by the end of fiscal 2012 as the Company continues to negotiate the exit of certain contracts and removes certain of its equipment from the network sites. During fiscal 2011, the Company recorded  $300 million in restructuring-related charges, primarily consisting of asset impairments and accelerated depreciation, and net restructuring charges of  $58 million, including  $48 million in contract termination costs. Restructuring charges also include certain severance and lease costs. There were no significant restructuring and restructuring-related expenses recognized in fiscal 2010. The Company estimates that it will incur future restructuring and restructuring-related charges of up to  $25 million, primarily related to lease exit costs. The Company may also realize certain gains, primarily due to the potential release of liabilities associated with ongoing efforts to exit certain contracts, the amount of which cannot be reasonably estimated at this time. Future cash expenditures are expected to be in the range of  $75 million to  $115 million.
Changes in the restructuring accrual for fiscal 2011, which is reported as a component of other liabilities, were as follows (in millions):
 
Contract Termination Costs
 
Other Costs
 
Total
Beginning balance of restructuring accrual
 $

 
 $

 
 $

Initial costs
63

 
16

 
79

Adjustments to costs
(2
)
 
(6
)
 
(8
)
Cash payments
(22
)
 
(6
)
 
(28
)
Ending balance of restructuring accrual
 $
39

 
 $
4

 
 $
43

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Acquisitions
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 12 - Acquisition
Note 12. Acquisitions
On May 24, 2011, the Company acquired Atheros Communications, Inc., which was renamed Qualcomm Atheros, Inc. (Atheros), for total cash consideration of  $3.1 billion (net of  $233 million of cash acquired) and the exchange of vested and earned unvested share-based payment awards with an estimated fair value of  $106 million. Atheros sells communication chipsets to manufacturers of networking, computing and consumer electronics products. The primary objective of the acquisition is to help accelerate the expansion of the Company's technologies and platforms to new businesses beyond cellular, including home, enterprise and carrier networking. Atheros was integrated into the QCT segment.
The allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
 
 
Current assets
 $
925

Amortizable intangible assets:
 
Technology-based intangible assets
692

Marketing-related intangible assets
50

Customer-related intangible assets
114

In-process research and development (IPR&D)
150

Goodwill
1,777

Other assets
77

Total assets
3,785

Liabilities
(316
)
 
 $
3,469


Goodwill recognized in this transaction is not deductible for tax purposes and was allocated to the QCT segment for annual impairment testing purposes. Goodwill largely consists of expected revenue synergies resulting from the combination of product portfolios, cost synergies related to reduction in headcount growth and lower manufacturing costs, assembled workforce and access to additional sales and distribution channels. The intangible assets acquired will be amortized on a straight-line basis over weighted-average useful lives of four years, six years and three years for technology-based, marketing-related and customer-related intangible assets, respectively. The estimated fair values of the intangible assets acquired were primarily determined using the income approach based on significant inputs that were not observable. On the acquisition date, IPR&D consisted of 26 projects, primarily related to wireless local-area network and powerline communications technologies. The projects are expected to be completed over the next three years. The estimated remaining costs to complete the IPR&D projects were  $36 million as of the acquisition date. The acquired IPR&D will not be amortized until completion of the related products as it was determined that the underlying projects had not reached technological feasibility at the date of acquisition. Upon completion, each IPR&D project will be amortized over its useful life; useful lives for IPR&D are expected to range between two to six years. Acquisition costs related to the merger of  $23 million were recognized as selling, general and administrative expenses as incurred in fiscal 2011. The Company’s results of operations for fiscal 2011 included the operating results of Atheros since the date of acquisition, the amounts of which were not material.
The following table presents the unaudited pro forma results for fiscal 2011 and 2010. The unaudited pro forma financial information combines the results of operations of Qualcomm and Atheros as though the companies had been combined as of the beginning of fiscal 2010, and the pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at such times. The unaudited pro forma results presented include amortization charges for acquired intangible assets, eliminations of intercompany transactions, adjustments for increased fair value of acquired inventory, adjustments for incremental stock-based compensation expense related to the unearned portion of Atheros stock options and restricted stock units assumed, adjustments for depreciation expense for property, plant and equipment and related tax effects.
 
2011
 
2010
 
(In millions)
Revenues
 $
15,583

 
 $
11,867

Net income attributable to Qualcomm
4,304

 
3,013



During fiscal 2011, the Company acquired nine other businesses for total cash consideration of  $466 million. Technology-based intangible assets recognized in the amount of  $150 million are being amortized on a straight-line basis over a weighted-average useful life of five years. Goodwill recognized in these transactions, of which  $234 million is expected to be deductible for tax purposes, was assigned to the Company’s reportable segments as follows (in millions):
               
QCT
 $
227

QWI
35

QTL
5

QSI
1

Nonreportable segments
8

 
 $
276


 
During fiscal 2010, the Company acquired six businesses for total cash consideration of  $50 million. Technology-based intangible assets recognized in the amount of  $32 million are being amortized on a straight-line basis over a weighted-average useful life of 11 years. During fiscal 2009, the Company acquired one business for total cash consideration of  $17 million.
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Summarized Quarterly Data (Unaudited)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Note 12 - Summarized Quarterly Data (Unaudited)
Note 13. Summarized Quarterly Data (Unaudited)
The following financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of the results of the interim periods.
The table below presents quarterly data for fiscal 2011 and 2010 (in millions, except per share data):
 
1st Quarter*
 
2nd Quarter*
 
3rd Quarter
 
4th Quarter
2011
 
 
 
 
 
 
 
Revenues (1)
 $
3,348

 
 $
3,870

 
 $
3,623

 
 $
4,117

Operating income (1)
1,247

 
1,430

 
1,113

 
1,238

Income from continuing operations (1)
1,252

 
1,264

 
985

 
1,055

Discontinued operations, net of tax (1)
(82
)
 
(269
)
 
44

 
(6
)
Net income attributable to Qualcomm (1)
1,170

 
999

 
1,035

 
1,056

 
 
 
 
 
 
 
 
Basic earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.77

 
 $
0.76

 
 $
0.59

 
 $
0.63

Discontinued Operations
 $
(0.05
)
 
 $
(0.16
)
 
 $
0.03

 
 $
0.00

Net income
 $
0.72

 
 $
0.60

 
 $
0.62

 
 $
0.63

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.76

 
 $
0.75

 
 $
0.58

 
 $
0.62

Discontinued Operations
 $
(0.05
)
 
 $
(0.16
)
 
 $
0.03

 
 $
0.00

Net income
 $
0.71

 
 $
0.59

 
 $
0.61

 
 $
0.62

 
 
 
 
 
 
 
 
2010*
 
 
 
 
 
 
 
Revenues (1)
 $
2,668

 
 $
2,661

 
 $
2,700

 
 $
2,952

Operating income (1)
980

 
896

 
893

 
958

Income from continuing operations (1)
898

 
852

 
832

 
938

Discontinued operations, net of tax (1)
(57
)
 
(78
)
 
(65
)
 
(73
)
Net income attributable to Qualcomm (1)
841

 
774

 
767

 
865

 
 
 
 
 
 
 
 
Basic earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.53

 
 $
0.52

 
 $
0.51

 
 $
0.59

Discontinued operations
 $
(0.03
)
 
 $
(0.05
)
 
 $
(0.04
)
 
 $
(0.05
)
Net income
 $
0.50

 
 $
0.47

 
 $
0.47

 
 $
0.54

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.53

 
 $
0.51

 
 $
0.51

 
 $
0.58

Discontinued operations
 $
(0.03
)
 
 $
(0.05
)
 
 $
(0.04
)
 
 $
(0.05
)
Net income
 $
0.50

 
 $
0.46

 
 $
0.47

 
 $
0.53

*As adjusted for discontinued operations (Note 11)

(1) Revenues, operating income, income from continuing operations, discontinued operations, net of tax, and net income attributable to
Qualcomm are rounded to millions each quarter. Therefore, the sum of the quarterly amounts may not equal the annual amounts reported.
(2) Earnings per share attributable to Qualcomm are computed independently for each quarter and the full year based upon respective average
shares outstanding. Therefore, the sum of the quarterly earnings per share amounts may not equal the annual amounts reported.
              
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Valuation and Qualifying Accounts
12 Months Ended
Sep. 25, 2011
Schedule to Financial Statements [Abstract]
Schedule II: Valuation and qualifying accounts
SCHEDULE II
QUALCOMM INCORPORATED
VALUATION AND QUALIFYING ACCOUNTS
(In millions)
 
Balance at
Beginning of
Period
 
(Charged)
Credited to
Costs and
Expenses
 
Deductions
 
Other
 
Balance at
End of
Period
Year ended September 25, 2011
 
 
 
 
 
 
 
 
 
Allowances:
 
 
 
 
 
 
 
 
 
— trade receivables
 $
(3
)
 
 $

 
 $
1

 
 $

 
 $
(2
)
— notes receivables
(3
)
 

 

 

 
(3
)
— investment receivables (1)
(9
)
 
6

 
3

 

 

Valuation allowance on deferred tax assets
(39
)
 
(42
)
 

 
(17
)
(2) 
(98
)
 
 $
(54
)
 
 $
(36
)
 
 $
4

 
 $
(17
)
 
 $
(103
)
Year ended September 26, 2010
 
 
 
 
 
 
 
 
 
Allowances:
 
 
 
 
 
 
 
 
 
— trade receivables
 $
(4
)
 
 $
(1
)
 
 $
2

 
 $

 
 $
(3
)
— notes receivable
(1
)
 
(2
)
 

 

 
(3
)
— investment receivables (1)
(10
)
 

 
1

 

 
(9
)
Valuation allowance on deferred tax assets
(72
)
 
36

 

 
(3
)
(3) 
(39
)
 
 $
(87
)
 
 $
33

 
 $
3

 
 $
(3
)
 
 $
(54
)
Year ended September 27, 2009
 
 
 
 
 
 
 
 
 
Allowances:
 
 
 
 
 
 
 
 
 
— trade receivables
 $
(38
)
 
 $
(4
)
 
 $
38

 
 $

 
 $
(4
)
— notes receivable
(3
)
 
(4
)
 
6

 

 
(1
)
— investment receivables (1)

 
(10
)
 

 

 
(10
)
Valuation allowance on deferred tax assets
(149
)
 
(201
)
 

 
278

(3) 
(72
)
 
 $
(190
)
 
 $
(219
)
 
 $
44

 
 $
278

 
 $
(87
)
(1) This amount represents the allowance for investment receivables due for redemptions of money market investments.
(2) This amount represents  $12 million recorded as a result of an acquisition and  $5 million charged to other comprehensive income (loss).
(3) This amount was charged to other comprehensive income (loss).
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The Company and Its Significant Accounting Policies (Policies)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Principles of Consolidation
Principles of Consolidation. The Company’s consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. In addition, the Company consolidates its investments in certain immaterial less than majority-owned variable interest entities as the Company is the primary beneficiary. The ownership of the other interest holders of consolidated subsidiaries and the variable interest entity is presented separately in the consolidated balance sheets and statements of operations. All significant intercompany accounts and transactions have been eliminated. Certain of the Company’s consolidated subsidiaries are included in the consolidated financial statements one month in arrears to facilitate the timely inclusion of such entities in the Company’s consolidated financial statements.
Cash Equivalents
Cash Equivalents. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are comprised of money market funds, certificates of deposit, commercial paper and government agencies’ securities. The carrying amounts approximate fair value due to the short maturities of these instruments.
Marketable Securities
Marketable Securities. The appropriate classification of marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Marketable securities include available-for-sale securities, securities for which the Company has elected the fair value option and certain time deposits. The Company classifies marketable securities as current or noncurrent based on the nature of the securities and their availability for use in current operations. Marketable securities are stated at fair value. The net unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income (loss), net of income tax. The unrealized gains or losses on securities for which the Company has elected the fair value option are recognized in net investment income (loss). The realized gains and losses on marketable securities are determined using the specific identification method.
At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is other than temporary. The Company considers factors including: the significance of the decline in value compared to the cost basis; underlying factors contributing to a decline in the prices of securities in a single asset class; how long the market value of the security has been less than its cost basis; the security’s relative performance versus its peers, sector or asset class; expected market volatility, the market and economy in general; analyst recommendations and price targets; views of external investment managers; news or financial information that has been released specific to the investee; and the outlook for the overall industry in which the investee operates.
Starting in the third quarter of fiscal 2009, if the debt security’s market value is below amortized cost and the Company either intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to investment income (loss) for the entire amount of the impairment. For the remaining debt securities, if an other-than-temporary impairment exists, the Company separates the other-than-temporary impairment into the portion of the loss related to credit factors, or the credit loss portion, and the portion of the loss that is not related to credit factors, or the noncredit loss portion. The credit loss portion is the difference between the amortized cost of the security and the Company’s best estimate of the present value of the cash flows expected to be collected from the debt security. The noncredit loss portion is the residual amount of the other-than-temporary impairment. The credit loss portion is recorded as a charge to investment income (loss), and the noncredit loss portion is recorded as a separate component of other comprehensive income (loss). Prior to the third quarter of fiscal 2009, the entire other-than-temporary impairment loss was recognized in earnings for all debt securities.
When calculating the present value of expected cash flows to determine the credit loss portion of the other-than-temporary impairment, the Company estimates the amount and timing of projected cash flows, the probability of default and the timing and amount of recoveries on a security-by-security basis. These calculations use inputs primarily based on observable market data, such as credit default swap spreads, historical default and recovery statistics, rating agency data, credit ratings and other data relevant to analyzing the collectibility of the security. The amortized cost basis of a debt security is adjusted for any credit loss portion of the impairment recorded to earnings. The difference between the new cost basis and cash flows expected to be collected is accreted to investment income (loss) over the remaining expected life of the security.
Securities that are accounted for as equity securities include investments in common stock, equity mutual and exchange-traded funds and debt mutual funds. For equity securities, the Company considers the loss relative to the expected volatility and the likelihood of recovery over a reasonable period of time. If events and circumstances indicate that a decline in the value of an equity security has occurred and is other than temporary, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date. Additionally, if the Company has either the intent to sell the security or does not have both the intent and the ability to hold the equity security until its anticipated recovery, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date.
Securities Lending
Securities Lending. The Company may engage in transactions in which certain fixed-income and equity securities are loaned to selected broker-dealers. At September 25, 2011, the loaned securities of  $44 million were included in marketable securities on the balance sheet. There were no securities loaned at September 26, 2010 under the Company’s securities lending program. Cash collateral is held and invested by one or more securities lending agents on behalf of the Company. The Company monitors the fair value of securities loaned and the collateral received and obtains additional collateral as necessary. Collateral of  $46 million at September 25, 2011 was recorded in cash equivalents with a corresponding amount in other current liabilities.
Allowances for Doubtful Accounts
Allowances for Doubtful Accounts. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company considers the following factors when determining if collection of a fee is reasonably assured: customer credit-worthiness, past transaction history with the customer, current economic industry trends, changes in customer payment terms, and bank credit-worthiness for letters of credit. If the Company has no previous experience with the customer, the Company typically obtains reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. If the financial condition of the Company’s customers was to deteriorate, adversely affecting their ability to make payments, additional allowances would be required.
Inventories
Inventories. Inventories are valued at the lower of cost or market (replacement cost, not to exceed net realizable value) using the first-in, first-out method. Recoverability of inventories is assessed based on review of committed purchase orders from customers, as well as purchase commitment projections provided by customers, among other things.
Derivatives
Derivatives. The Company may enter into foreign currency forward and option contracts to manage foreign exchange risk for certain foreign currency transactions and probable anticipated foreign currency revenue transactions. Gains and losses arising from changes in the fair values of such contracts that are not designated as hedging instruments are recorded in investment income (expense) as gains (losses) on derivative instruments. Gains (losses) arising from the effective portion of foreign currency forward and option contracts that are designated as cash-flow hedging instruments are recorded in accumulated other comprehensive income (loss) as gains (losses) on derivative instruments, net of tax. The amounts are subsequently reclassified into revenues in the same period in which the underlying transactions affect the Company’s earnings. The fair value of the Company’s foreign currency option contracts used to hedge foreign currency revenue transactions recorded in other current assets was  $17 million and  $4 million at September 25, 2011 and September 26, 2010, respectively, and the value recorded in other current liabilities was  $42 million and  $19 million at September 25, 2011 and September 26, 2010, respectively, all of which were designated as cash-flow hedging instruments at September 25, 2011 and substantially all of which were designated as cash-flow hedging instruments at September 26, 2010. At September 25, 2011, the Company had a foreign currency forward contract, with a fair value of  $7 million in other current assets, that was designated as a net investment hedge of the Company’s investment in a wholly-owned subsidiary in Australia. Gains (losses) arising from changes in fair value of the net investment hedge are recorded in selling, general and administrative expenses.
In connection with its stock repurchase program, the Company may sell put options that require the Company to repurchase shares of its common stock at fixed prices. The premiums received from put options are recorded as other current liabilities. Changes in the fair value of put options are recorded in net investment income (loss) as gains (losses) on derivative instruments. The value of the put options recorded in other current liabilities was  $80 million at September 25, 2011. There were no put options outstanding at September 26, 2010.
Property, Plant and Equipment
Property, Plant and Equipment. Property, plant and equipment are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives. Upon the retirement or disposition of property, plant and equipment, the related cost and accumulated depreciation or amortization are removed, and a gain or loss is recorded. Buildings and building improvements on owned land are depreciated over 30 years and 15 years, respectively. Leasehold improvements and buildings on leased land are amortized over the shorter of their estimated useful lives or the remaining term of the related lease, not to exceed 15 and 20 years, respectively. Other property, plant and equipment have useful lives ranging from 2 to 25 years. Direct external and internal costs of developing software for internal use are capitalized subsequent to the preliminary stage of development. Leased property meeting certain capital lease criteria is capitalized, and the net present value of the related lease payments is recorded as a liability. Amortization of assets under capital lease is recorded using the straight-line method over the shorter of the estimated useful lives or the lease terms. Maintenance, repairs, and minor renewals and betterments are charged to expense as incurred.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets. Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. For intangible assets purchased in a business combination or received in a non-monetary exchange, the estimated fair values of the assets received (or, for non-monetary exchanges, the estimated fair values of the assets transferred if more clearly evident) are used to establish the cost bases (except for non-monetary exchanges in which neither of the values of the assets received or the assets transferred in non-monetary exchanges are determinable within reasonable limits). Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value.
Weighted-average amortization periods for finite-lived intangible assets, by class, were as follows (in years):
 
September 25, 2011
 
September 26, 2010
Spectrum licenses
5

 
5

Marketing-related
9

 
18

Technology-based
11

 
14

Customer-related
3

 
5

Total finite-lived intangible assets
11

 
14

Impairment of Goodwill
Impairment of Goodwill and Other Long-Lived Assets. Goodwill and other indefinite-lived intangible assets are tested annually for impairment in the fourth fiscal quarter and in interim periods if certain events occur indicating that the carrying amounts may be impaired. Goodwill is assessed for impairment using a two-step approach. First, the Company compares the estimated fair value of the reporting unit in which the goodwill resides to its carrying value. The second step, if necessary, measures the amount of such impairment by comparing the implied fair value of goodwill to its carrying value. Other indefinite-lived intangible assets are assessed for impairment by comparing their estimated fair values to their carrying values. If the carrying values exceed the fair values, the difference is recorded as an impairment.
Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Assets to be disposed of are reported at the lower of the carrying amount or the estimated fair value less costs to sell and are not depreciated.
Impairment of Other Long-Lived Assets
Impairment of Goodwill and Other Long-Lived Assets. Goodwill and other indefinite-lived intangible assets are tested annually for impairment in the fourth fiscal quarter and in interim periods if certain events occur indicating that the carrying amounts may be impaired. Goodwill is assessed for impairment using a two-step approach. First, the Company compares the estimated fair value of the reporting unit in which the goodwill resides to its carrying value. The second step, if necessary, measures the amount of such impairment by comparing the implied fair value of goodwill to its carrying value. Other indefinite-lived intangible assets are assessed for impairment by comparing their estimated fair values to their carrying values. If the carrying values exceed the fair values, the difference is recorded as an impairment.
Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Assets to be disposed of are reported at the lower of the carrying amount or the estimated fair value less costs to sell and are not depreciated.
Revenue Recognition
Revenue Recognition. The Company derives revenues principally from sales of integrated circuit products, licensing of its intellectual property and software, and sales of messaging, software hosting, software development software and other services and related hardware. The timing of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific terms of each arrangement and the nature of the Company’s deliverables and obligations.
For transactions entered into prior to the first quarter of fiscal 2010, the Company allocated revenue for transactions that included multiple elements to each unit of accounting based on its relative fair value using vendor-specific objective evidence (VSOE). The price charged when the element was sold separately generally determined fair value. When the Company had objective evidence of the fair values of undelivered elements but not delivered elements, the Company allocated revenue first to the fair value of the undelivered elements, and the residual revenue was then allocated to the delivered elements. If the fair value of any undelivered element included in a multiple element arrangement could not be objectively determined, revenue was deferred until all elements were delivered or services were performed, or until fair value could be objectively determined for any remaining undelivered elements. Beginning in the first quarter of fiscal 2010, the Company adopted amended accounting guidance for revenue recognition that eliminated the use of the residual method and requires entities to allocate revenue using the relative selling price method. For substantially all arrangements with multiple deliverables, the Company continues to use VSOE to allocate the selling price to each deliverable. The Company determines VSOE based on its normal pricing and discounting practices for the specific product or service when sold separately. In certain limited instances when VSOE cannot be established, the Company first attempts to establish the selling price based on third-party evidence (TPE). If TPE is not available, the Company estimates the selling price of the product or service as if it were sold on a standalone basis. The adoption of the new guidance did not have a material impact on the timing or pattern of revenue recognition.
Revenues from sales of the Company’s products are recognized at the time of shipment, or when title and risk of loss pass to the customer and other criteria for revenue recognition are met, if later. Revenues from providing services, including software hosting services, are recognized when earned. Revenues from providing services were less than 10% of total revenues for all fiscal years presented.
The Company licenses or otherwise provides rights to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Licensees typically pay a fixed license fee in one or more installments and royalties based on their sales of products incorporating or using the Company’s licensed intellectual property. License fees are recognized over the estimated period of benefit of the license to the licensee, typically 5 to 15 years. The Company earns royalties on such licensed products sold worldwide by its licensees at the time that the licensees’ sales occur. The Company’s licensees, however, do not report and pay royalties owed for sales in any given quarter until after the conclusion of that quarter. The Company recognizes royalty revenues based on royalties reported by licensees during the quarter and when other revenue recognition criteria are met.
Revenues from long-term contracts are recognized using the percentage-of-completion method of accounting, based on costs incurred compared with total estimated costs. The percentage-of-completion method relies on estimates of total contract revenue and costs. Revenues and profits are subject to revisions as the contract progresses to completion. Revisions in profit estimates are charged or credited to income in the period in which the facts that give rise to the revision become known. If actual contract costs are greater than expected, reduction of contract profit would be required. Estimated contract losses are recognized when determined.
The Company provides both perpetual and renewable time-based software licenses. Revenues from software license fees are recognized when revenue recognition criteria are met and, if applicable, when vendor-specific objective evidence exists to allocate the total license fee to elements of multiple-element software arrangements, including post-contract customer support. Post-contract support is recognized ratably over the term of the related contract. When contracts contain multiple elements wherein the only undelivered element is post-contract customer support and vendor-specific objective evidence of the fair value of post-contract customer support does not exist, revenue from the entire arrangement is recognized ratably over the support period. The amount or timing of the Company’s software licensing revenues may differ as a result of changes in these judgments or estimates.
The Company records reductions to revenues for customer incentive arrangements, including volume-related and other pricing rebates and cost reimbursements for marketing and other activities involving certain of the Company’s products. The Company recognizes the maximum potential liability at the later of the date at which the Company records the related revenues or the date at which the Company offers the incentive or, if payment is contingent, when the contingency is resolved. In certain arrangements, the liabilities are based on customer forecasts. The Company reverses accruals for unclaimed incentive amounts to revenues when the unclaimed amounts are no longer subject to payment.
Unearned revenues consist primarily of license fees for intellectual property and software products, hardware product sales with continuing performance obligations and billings on uncompleted contracts in excess of incurred cost and accrued profit.
Shipping and Handling Costs
Shipping and Handling Costs. Costs incurred for shipping and handling are included in cost of equipment and services revenues at the time the related revenue is recognized. Amounts billed to a customer for shipping and handling are reported as revenue.
Share-Based Compensation
Share-Based Compensation. Share-based compensation expense for equity-classified awards, principally related to stock options and restricted stock units (RSUs), is measured at the grant date, or at the acquisition date for assumed awards, based on the estimated fair value of the award and is recognized over the employee’s requisite service period.
The fair values of employee stock options granted are estimated using the lattice binomial option-pricing model, and the fair values of employee stock options assumed are estimated using the Black-Scholes option-pricing model. The weighted-average estimated fair values of employee stock options granted during fiscal 2011, 2010 and 2009 were  $13.17,  $12.40 and  $14.27 per share, respectively. The following table presents the weighted-average assumptions (annualized percentages) used to estimate the fair values of employee stock options granted or assumed in the periods presented:
 
2011
 
2010
 
2009
Volatility
30.8
%
 
33.8
%
 
42.7
%
Risk-free interest rate
2.1
%
 
2.5
%
 
2.6
%
Dividend yield
1.5
%
 
1.5
%
 
1.5
%
Post-vest forfeiture rate
9.8
%
 
9.8
%
 
9.2
%
Suboptimal exercise factor
1.8

 
1.8

 
1.9


The Company uses the implied volatility of market-traded options in the Company’s stock to determine the expected volatility. The term structure of volatility is used up to approximately two years, and the Company uses the implied volatility of the option with the longest time to maturity for periods beyond two years. The risk-free interest rate is based upon observed interest rates appropriate for the terms of the Company’s employee stock options. The Company does not target a specific dividend yield for its dividend payments but is required to assume a dividend yield as an input to the binomial model. The dividend yield is based on the Company’s history and expectation of future dividend payouts and may be subject to substantial change in the future. The post-vest forfeiture rate and suboptimal exercise factor are based on the Company’s historical option cancellation and employee exercise information, respectively.
The expected life of employee stock options is a derived output of the lattice binomial model and is impacted by all of the underlying assumptions used by the Company. The weighted-average expected life of employee stock options granted, as derived from the binomial model, was 5.6 years, 5.5 years and 5.6 years during fiscal 2011, 2010 and 2009, respectively.
The fair values of RSUs are estimated based on the fair market values of the underlying stock on the dates of grant or dates the RSUs are assumed. If RSUs do not have the right to participate in dividends, the fair value is discounted by the dividend yield. The weighted-average estimated fair values of employee RSUs granted during fiscal 2011 and 2010 were  $50.14 and  $35.61 per share, respectively. No RSUs were granted in fiscal 2009. For the majority of RSUs, shares are issued on the vesting dates net of the amount of shares needed to satisfy statutory tax withholding requirements to be paid by the Company on behalf of the employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding.
Share-based compensation expense is adjusted to exclude amounts related to share-based awards that are expected to be forfeited. The annual pre-vest forfeiture rate for stock options and RSUs granted in fiscal 2011 and 2010 was estimated to be approximately 3% based on historical experience. The effect of pre-vest forfeitures on the Company’s recorded expense in fiscal 2011, 2010 and 2009 for awards granted prior to fiscal 2010 was negligible due to the predominantly monthly vesting of stock options that were granted in those periods.
Total estimated share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Cost of equipment and services revenues
 $
67

 
 $
41

 
 $
40

Research and development
397

 
293

 
272

Selling, general and administrative
349

 
263

 
252

Continuing operations
813

 
597

 
564

Related income tax benefit
(194
)
 
(166
)
 
(121
)
Continuing operations, net of income taxes
619

 
431

 
443

Discontinued operations
8

 
17

 
20

Related income tax benefit
(3
)
 
(6
)
 
(8
)
Discontinued operations, net of income taxes
5

 
11

 
12

 
 $
624

 
 $
442

 
 $
455

*As adjusted for discontinued operations (Note 11)
The Company recorded  $165 million,  $119 million and  $106 million in share-based compensation expense during fiscal 2011, 2010 and 2009, respectively, related to share-based awards granted during those periods. The remaining share-based compensation expense primarily related to stock awards granted in earlier periods and stock awards assumed. In addition, for fiscal 2011, 2010 and 2009,  $183 million,  $45 million and  $79 million, respectively, were reclassified to reduce net cash provided by operating activities with an offsetting increase in net cash used by financing activities in the consolidated statements of cash flows to reflect the incremental tax benefits from stock options exercised and restricted stock units vested in those periods. The amount of compensation cost capitalized related to share-based payment awards was negligible for all periods presented.
Litigation
Litigation. The Company is currently involved in certain legal proceedings. The Company records its best estimate of a loss related to pending litigation when the loss is considered probable and the amount can be reasonably estimated. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending litigation and revises its estimates. The Company’s legal costs associated with defending itself are recorded to expense as incurred.
Foreign Currency
Foreign Currency. Foreign subsidiaries operating in a local currency environment use the local currency as the functional currency. Resulting translation gains or losses are recognized as a component of other comprehensive income (loss). Where the United States dollar is the functional currency, resulting translation gains or losses are recognized in the consolidated statements of operations. Transaction gains or losses related to balances denominated in a different currency than the functional currency are recognized in the consolidated statements of operations. Net foreign currency transaction losses included in the Company’s consolidated statements of operations were  $8 million and  $6 million for fiscal 2011 and 2010, respectively, and negligible in fiscal 2009.
Income Taxes
Income Taxes. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. The Company includes interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes.
The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.
The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. A windfall tax benefit occurs when the actual tax benefit realized by the Company upon an employee’s disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that the Company had recorded. When assessing whether a tax benefit relating to share-based compensation has been realized, the Company follows the tax law ordering method, under which current year share-based compensation deductions are assumed to be utilized before net operating loss carryforwards and other tax attributes.
Earnings Per Common Share
Earnings Per Common Share. Basic earnings per common share is computed by dividing net income attributable to Qualcomm by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to Qualcomm by the combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and shares subject to written put options, and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the estimated tax benefits that would be recorded in paid-in capital, if any, when an award is settled are assumed to be used to repurchase shares in the current period. The incremental dilutive common share equivalents, calculated using the treasury stock method, for fiscal 2011, 2010 and 2009 were 32,908,000, 15,652,000 and 16,900,000, respectively.
Employee stock options to purchase 20,224,000, 149,007,000 and 136,309,000 shares of common stock during fiscal 2011, 2010 and 2009, respectively, were outstanding but not included in the computation of diluted earnings per common share because the effect would be anti-dilutive. Put options outstanding during fiscal 2011 to purchase 11,800,000 shares of common stock were not included in the earnings per common share computation because the put options’ exercise prices were less than the average market price of the common stock while they were outstanding, and therefore, the effect on diluted earnings per common share would be anti-dilutive (Note 7). In addition, 1,963,000 and 235,000 shares of other common stock equivalents outstanding in fiscal 2011 and 2010, respectively, were not included in the computation of diluted earnings per common share because the effect would be anti-dilutive. There were no common stock equivalents outstanding in fiscal 2009 whose effect would be anti-dilutive.
Comprehensive Income
Comprehensive Income. Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments and unrealized gains and losses on marketable securities. The Company presents comprehensive income in its consolidated statements of stockholders’ equity. The reclassification adjustment for net realized gains results from the recognition of the net realized gains in the statements of operations when marketable securities are sold or derivative instruments are settled. The reclassification adjustment for other-than-temporary losses on marketable securities included in net income results from the recognition of the unrealized losses in the statements of operations when they are no longer viewed as temporary. The portion of other-than-temporary impairment losses related to noncredit factors and subsequent changes in fair value included in comprehensive income is shown separately from other unrealized gains or losses on marketable securities.
Components of accumulated other comprehensive income in Qualcomm stockholders’ equity consisted of the following (in millions):
 
September 25, 2011
 
September 26, 2010
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes
 $
27

 
 $
62

Net unrealized gains on marketable securities, net of income taxes
427

 
723

Net unrealized losses on derivative instruments, net of income taxes
(15
)
 
(8
)
Foreign currency translation
(86
)
 
(80
)
 
 $
353

 
 $
697


At September 25, 2011, accumulated other comprehensive income included  $13 million of other-than-temporary losses on marketable debt securities related to factors other than credit, net of income taxes.
Total comprehensive income attributable to Qualcomm consisted of the following (in millions):
 
2011
 
2010
 
2009
Net income
 $
4,242

 
 $
3,247

 
 $
1,592

Other comprehensive income:
 
 
 
 
 
Foreign currency translation
(9
)
 
(40
)
 
(25
)
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes of  $10, ( $5) and  $12, respectively
(19
)
 
21

 
135

Net unrealized (losses) gains on other marketable securities and derivative instruments, net of income taxes of  $80,  $74 and ( $5), respectively
(145
)
 
392

 
261

Reclassification of net realized gains on marketable securities and derivative instruments included in net income, net of income taxes of  $112, ( $12) and  $75, respectively
(199
)
 
(380
)
 
(93
)
Reclassification of other-than-temporary losses on marketable securities included in net income, net of income taxes of  $14, ( $5) and  $130, respectively
25

 
116

 
613

Total other comprehensive (loss) income
(347
)
 
109

 
891

Total comprehensive income
3,895

 
3,356

 
2,483

Comprehensive loss attributable to noncontrolling interests
21

 

 

Comprehensive income attributable to Qualcomm
 $
3,916

 
 $
3,356

 
 $
2,483

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The Company and Its Significant Accounting Policies (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Weighted-average amortization periods for finite-lived intangible assets, by class
Weighted-average amortization periods for finite-lived intangible assets, by class, were as follows (in years):
 
September 25, 2011
 
September 26, 2010
Spectrum licenses
5

 
5

Marketing-related
9

 
18

Technology-based
11

 
14

Customer-related
3

 
5

Total finite-lived intangible assets
11

 
14

Share-based compensation disclosure, weighted-average assumptions
The following table presents the weighted-average assumptions (annualized percentages) used to estimate the fair values of employee stock options granted or assumed in the periods presented:
 
2011
 
2010
 
2009
Volatility
30.8
%
 
33.8
%
 
42.7
%
Risk-free interest rate
2.1
%
 
2.5
%
 
2.6
%
Dividend yield
1.5
%
 
1.5
%
 
1.5
%
Post-vest forfeiture rate
9.8
%
 
9.8
%
 
9.2
%
Suboptimal exercise factor
1.8

 
1.8

 
1.9

Share-based compensation expense, related to all share-based awards
Total estimated share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Cost of equipment and services revenues
 $
67

 
 $
41

 
 $
40

Research and development
397

 
293

 
272

Selling, general and administrative
349

 
263

 
252

Continuing operations
813

 
597

 
564

Related income tax benefit
(194
)
 
(166
)
 
(121
)
Continuing operations, net of income taxes
619

 
431

 
443

Discontinued operations
8

 
17

 
20

Related income tax benefit
(3
)
 
(6
)
 
(8
)
Discontinued operations, net of income taxes
5

 
11

 
12

 
 $
624

 
 $
442

 
 $
455

*As adjusted for discontinued operations (Note 11)
Components of accumulated other comprehensive income
Components of accumulated other comprehensive income in Qualcomm stockholders’ equity consisted of the following (in millions):
 
September 25, 2011
 
September 26, 2010
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes
 $
27

 
 $
62

Net unrealized gains on marketable securities, net of income taxes
427

 
723

Net unrealized losses on derivative instruments, net of income taxes
(15
)
 
(8
)
Foreign currency translation
(86
)
 
(80
)
 
 $
353

 
 $
697

Total comprehensive income [Table Text Block]
Total comprehensive income attributable to Qualcomm consisted of the following (in millions):
 
2011
 
2010
 
2009
Net income
 $
4,242

 
 $
3,247

 
 $
1,592

Other comprehensive income:
 
 
 
 
 
Foreign currency translation
(9
)
 
(40
)
 
(25
)
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes of  $10, ( $5) and  $12, respectively
(19
)
 
21

 
135

Net unrealized (losses) gains on other marketable securities and derivative instruments, net of income taxes of  $80,  $74 and ( $5), respectively
(145
)
 
392

 
261

Reclassification of net realized gains on marketable securities and derivative instruments included in net income, net of income taxes of  $112, ( $12) and  $75, respectively
(199
)
 
(380
)
 
(93
)
Reclassification of other-than-temporary losses on marketable securities included in net income, net of income taxes of  $14, ( $5) and  $130, respectively
25

 
116

 
613

Total other comprehensive (loss) income
(347
)
 
109

 
891

Total comprehensive income
3,895

 
3,356

 
2,483

Comprehensive loss attributable to noncontrolling interests
21

 

 

Comprehensive income attributable to Qualcomm
 $
3,916

 
 $
3,356

 
 $
2,483

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Fair Value Measurements (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Fair value hierarchy for assets and liabilities measured at fair value on a recurring basis
The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 25, 2011 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
 $
2,495

 
 $
2,129

 
 $

 
 $
4,624

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
14

 
508

 

 
522

Corporate bonds and notes

 
6,018

 

 
6,018

Mortgage- and asset-backed securities

 
667

 
11

 
678

Auction rate securities

 

 
124

 
124

Non-investment-grade debt securities

 
3,656

 
16

 
3,672

Common and preferred stock
1,061

 
728

 

 
1,789

Equity mutual and exchange-traded funds
845

 

 

 
845

Debt mutual funds
1,327

 
476

 

 
1,803

Total marketable securities
3,247

 
12,053

 
151

 
15,451

Derivative instruments

 
24

 

 
24

Other investments (1)
152

 

 

 
152

Total assets measured at fair value
 $
5,894

 
 $
14,206

 
 $
151

 
 $
20,251

Liabilities
 
 
 
 
 
 
 
Derivative instruments
 $

 
 $
122

 
 $

 
 $
122

Other liabilities (1)
152

 

 
7

 
159

Total liabilities measured at fair value
 $
152

 
 $
122

 
 $
7

 
 $
281


(1)
Level 1 measurements are comprised of the Company’s deferred compensation plan liability and related assets, which are invested in mutual funds.
Activity for marketable securities classified within Level 3 of the valuation hierarchy
The following table includes the activity for marketable securities and other liabilities classified within Level 3 of the valuation hierarchy (in millions):
 
2011
 
2010
 
Auction Rate
Securities
 
Other Marketable
Securities
 
Other Liabilities
 
Auction Rate
Securities
 
Other Marketable
Securities
Beginning balance of Level 3
 $
126

 
 $
18

 
 $

 
 $
174

 
 $
31

Total realized and unrealized gains (losses):
 
 
 
 
 
 
 
 
 
Included in investment income, net

 
2

 
(1
)
 

 
5

Included in other comprehensive income
2

 
(1
)
 

 
7

 
(1
)
Purchases
4

 
6

 

 

 

Issuances

 

 
8

 

 

Settlements
(8
)
 
(6
)
 

 
(55
)
 
(21
)
Transfers into Level 3

 
8

 

 

 
4

Ending balance of Level 3
 $
124

 
 $
27

 
 $
7

 
 $
126

 
 $
18

 
 
 
 
 
 
 
 
 
 
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Marketable Securities (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
September 25, 2011
 
September 26, 2010
 
September 25, 2011
 
September 26, 2010
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
 $
516

 
 $
650

 
 $
6

 
 $
4

Corporate bonds and notes
3,665

 
3,504

 
2,353

 
1,495

Mortgage- and asset-backed securities
587

 
629

 
91

 
38

Auction rate securities

 

 
124

 
126

Non-investment-grade debt securities
19

 
21

 
3,653

 
3,344

Common and preferred stock
76

 
52

 
1,713

 
1,670

Equity mutual and exchange-traded funds

 

 
845

 
979

Debt mutual funds
1,327

 
1,476

 

 

Total available-for-sale
6,190

 
6,332

 
8,785

 
7,656

Fair value option:
 
 
 
 
 
 
 
Debt mutual fund

 

 
476

 
467

Time deposits

 
400

 

 

Total marketable securities
 $
6,190

 
 $
6,732

 
 $
9,261

 
 $
8,123

Available-for-sale securities
At September 25, 2011, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
No Single
 
 
Less Than
 
One to
 
Five to
 
Greater Than
 
Maturity
 
 
One Year
 
Five Years
 
Ten Years
 
Ten Years
 
Date
 
Total
 $
1,084

 
 $
4,600

 
 $
2,450

 
 $
952

 
 $
3,255

 
 $
12,341

Securities with no single maturity date included debt mutual funds, non-investment-grade debt securities, mortgage- and asset-backed securities and auction rate securities.
The Company recorded realized gains and losses on sales of available-for-sale marketable securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
Fiscal Year
 
 
 
 
 
2011
 $
356

 
 $
(30
)
 
 $
326

2010
415

 
(31
)
 
384

2009
215

 
(79
)
 
136

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
September 25, 2011
 
 
 
 
 
 
 
Equity securities
 $
2,426

 
 $
278

 
 $
(70
)
 
 $
2,634

Debt securities
12,179

 
294

 
(132
)
 
12,341

 
 $
14,605

 
 $
572

 
 $
(202
)
 
 $
14,975

September 26, 2010
 
 
 
 
 
 
 
Equity securities
 $
2,309

 
 $
403

 
 $
(11
)
 
 $
2,701

Debt securities
10,795

 
512

 
(20
)
 
11,287

 
 $
13,104

 
 $
915

 
 $
(31
)
 
 $
13,988

Investments in a continuous unrealized loss position
The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category (in millions):
 
September 25, 2011
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate bonds and notes
 $
1,862

 
 $
(41
)
 
 $
41

 
 $

Auction rate securities
3

 

 
121

 
(2
)
Non-investment-grade debt securities
1,867

 
(86
)
 
19

 
(3
)
Common and preferred stock
750

 
(70
)
 
4

 

 
 $
4,482

 
 $
(197
)
 
 $
185

 
 $
(5
)
 
September 26, 2010
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate bonds and notes
 $
425

 
 $
(1
)
 
 $
23

 
 $

Auction rate securities

 

 
126

 
(4
)
Non-investment-grade debt securities
296

 
(7
)
 
90

 
(8
)
Common and preferred stock
133

 
(10
)
 
3

 

Equity mutual and exchange-traded funds
277

 
(1
)
 

 

 
 $
1,131

 
 $
(19
)
 
 $
242

 
 $
(12
)
Activity for credit loss portion of other-than-temporary impairments on debt securities
The following table shows the activity for the credit loss portion of other-than-temporary impairments on debt securities held by the Company (in millions):
 
2011
 
2010
 
2009
Beginning balance of credit losses
 $
109

 
 $
170

 
 $

Credit losses remaining in retained earnings upon adoption

 

 
186

Reductions in credit losses related to securities the Company intends to sell
(40
)
 

 
(14
)
Credit losses recognized on securities previously not impaired
2

 
1

 
17

Additional credit losses recognized on securities previously impaired

 
1

 
2

Reductions in credit losses related to securities sold
(20
)
 
(39
)
 
(21
)
Accretion of credit losses due to an increase in cash flows expected to be collected
(5
)
 
(24
)
 

Ending balance of credit losses
 $
46

 
 $
109

 
 $
170

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Composition of Certain Financial Statement Captions (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Accounts Receivable
Accounts Receivable.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Trade, net of allowances for doubtful accounts of  $2 and  $3, respectively
 $
951

 
 $
697

Long-term contracts
32

 
25

Other
10

 
8

 
 $
993

 
 $
730

Inventories
Inventories.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Raw materials
 $
15

 
 $
15

Work-in-process
384

 
284

Finished goods
366

 
229

 
 $
765

 
 $
528

Property, Plant and Equipment
Property, Plant and Equipment.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Land
 $
203

 
 $
201

Buildings and improvements
1,427

 
1,424

Computer equipment and software
1,267

 
1,144

Machinery and equipment
1,798

 
1,684

Furniture and office equipment
75

 
70

Leasehold improvements
263

 
242

Construction in progress
394

 
75

 
5,427

 
4,840

Less accumulated depreciation and amortization
(3,013
)
 
(2,467
)
 
 $
2,414

 
 $
2,373

Goodwill
Goodwill was allocable to reporting units included in the Company’s reportable segments and to its QMT division, a nonreportable segment, as described in Note 10 as follows (in millions):
 
September 25, 2011
 
September 26, 2010
QCT
 $
2,456

 
 $
443

QTL
681

 
676

QWI
158

 
241

QMT
136

 
128

QSI
1

 

 
 $
3,432

 
 $
1,488

Intangible assets
The components of other intangible assets were as follows (in millions):
 
September 25, 2011
 
September 26, 2010
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Gross Carrying
Amount
 
Accumulated
Amortization
Spectrum licenses
 $
20

 
 $
(2
)
 
 $
766

 
 $
(2
)
Marketing-related
72

 
(18
)
 
21

 
(13
)
Technology-based
3,767

 
(802
)
 
2,785

 
(537
)
Customer-related
132

 
(70
)
 
12

 
(10
)
 
 $
3,991

 
 $
(892
)
 
 $
3,584

 
 $
(562
)
Other Current Liabilities
 Other Current Liabilities.
 
September 25, 2011
 
September 26, 2010
 
(In millions)
Customer incentives and other customer-related liabilities
 $
1,180

 
 $
574

Current portion of payable to Broadcom (Note 9)
170

 
170

Payable for unsettled securities trades
298

 
80

Other
406

 
261

 
 $
2,054

 
 $
1,085

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Investment Income (Loss) (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Investment Income [Table Text Block]
Investment income (loss), net was comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Interest and dividend income
 $
500

 
 $
530

 
 $
516

Interest expense
(114
)
 
(43
)
 
(13
)
Net realized gains on marketable securities
335

 
401

 
136

Net realized gains on other investments
2

 
4

 
1

Impairment losses on marketable securities
(39
)
 
(111
)
 
(743
)
Impairment losses on other investments
(13
)
 
(14
)
 
(20
)
(Losses) gains on derivative instruments
(3
)
 
3

 
1

Equity in losses of investees
(7
)
 
(4
)
 
(17
)
 
 $
661

 
 $
766

 
 $
(139
)

*As adjusted for discontinued operations (Note 11)
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Income Taxes (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Components of income tax provision
The components of the income tax provision were as follows (in millions):
 
2011
 
2010
 
2009
Current provision:
 
 
 
 
 
Federal
 $
179

 
 $
1,514

 
 $
268

State
57

 
242

 
71

Foreign
670

 
389

 
291

 
906

 
2,145

 
630

Deferred provision:
 
 
 
 
 
Federal
170

 
(1,139
)
 
(72
)
State
62

 
(26
)
 
72

Foreign
(6
)
 
(7
)
 
(19
)
 
226

 
(1,172
)
 
(19
)
 
 $
1,132

 
 $
973

 
 $
611

Components of income before income taxes
The components of income from continuing operations before income taxes by United States and foreign jurisdictions were as follows (in millions):
 
2011
 
2010
 
2009
United States
 $
2,984

 
 $
2,195

 
 $
1,368

Foreign
2,703

 
2,298

 
1,035

 
 $
5,687

 
 $
4,493

 
 $
2,403

Reconciliation of the expected statutory federal income tax provision to actual income tax provision
The following is a reconciliation of the expected statutory federal income tax provision to the Company’s actual income tax provision for continuing operations (in millions):
 
2011
 
2010
 
2009
Expected income tax provision at federal statutory tax rate
 $
1,991

 
 $
1,573

 
 $
841

State income tax provision, net of federal benefit
283

 
226

 
113

Foreign income taxed at other than U.S. rates
(1,074
)
 
(897
)
 
(407
)
Tax audit impacts, net
1

 
3

 
(155
)
Tax credits
(151
)
 
(55
)
 
(112
)
Valuation allowance
42

 
(40
)
 
227

Revaluation of deferred taxes
69

 
152

 
74

Other
(29
)
 
11

 
30

 
 $
1,132

 
 $
973

 
 $
611

Deferred tax assets and deferred tax liabilities
The Company had deferred tax assets and deferred tax liabilities as follows (in millions):
 
September 25, 2011
 
September 26, 2010
Accrued liabilities, reserves and other
 $
205

 
 $
287

Share-based compensation
592

 
615

Capitalized start-up and organizational costs
91

 
102

Unearned revenues
1,269

 
1,311

Unrealized losses on marketable securities
309

 
341

Unrealized losses on other investments
28

 
27

Capital loss carryover
40

 
37

Tax credits
145

 
54

Unused net operating losses
97

 
64

Other basis differences
30

 
10

Total gross deferred assets
2,806

 
2,848

Valuation allowance
(98
)
 
(39
)
Total net deferred assets
2,708

 
2,809

Purchased intangible assets
(174
)
 
(108
)
Deferred contract costs
(7
)
 
(6
)
Unrealized gains on marketable securities
(206
)
 
(352
)
Property, plant and equipment
(85
)
 
(100
)
Total deferred liabilities
(472
)
 
(566
)
Net deferred assets
 $
2,236

 
 $
2,243

Reported as:
 
 
 
Current deferred tax assets
 $
537

 
 $
321

Non-current deferred tax assets
1,703

 
1,922

Current deferred tax liabilities (1)
(2
)
 

Non-current deferred tax liabilities(1)
(2
)
 

 
 $
2,236

 
 $
2,243

(1) Current deferred tax liabilities and non-current deferred tax liabilities are included in other current liabilities and other liabilities, respectively, in the consolidated balance sheets.
Changes in the amount of unrecognized tax benefits
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2011, 2010 and 2009 follows (in millions):
 
2011
 
2010
 
2009
Beginning balance of unrecognized tax benefits
 $
353

 
 $
84

 
 $
244

Additions based on prior year tax positions
64

 
223

 
39

Reductions for prior year tax positions
(10
)
 
(58
)
 
(202
)
Additions for current year tax positions
12

 
165

 
3

Settlements with taxing authorities
(323
)
 
(61
)
 

Ending balance of unrecognized tax benefits
 $
96

 
 $
353

 
 $
84

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Capital Stock (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Cash dividends
Dividends charged to retained earnings in fiscal 2011, 2010 and 2009 were as follows (in millions, except per share data):
 
2011
 
2010
 
2009
 
Per Share
 
Total
 
Per Share
 
Total
 
Per Share
 
Total
First quarter
 $
0.190

 
 $
314

 
 $
0.170

 
 $
284

 
 $
0.160

 
 $
264

Second quarter
0.190

 
319

 
0.170

 
279

 
0.160

 
264

Third quarter
0.215

 
360

 
0.190

 
309

 
0.170

 
282

Fourth quarter
0.215

 
368

 
0.190

 
305

 
0.170

 
283

 
 $
0.810

 
 $
1,361

 
 $
0.720

 
 $
1,177

 
 $
0.660

 
 $
1,093

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Employee Benefit Plans (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Summary of stock option and RSU transactions for all equity compensation plans
A summary of RSU transactions for all equity compensation plans follows:
 
Number of Shares
(In thousands)
 
Weighted-Average
Grant Date Fair
Value
 
Aggregate Intrinsic
Value
(In billions)
RSUs outstanding at September 26, 2010
5,555

 
 $
35.72

 
 
RSUs granted
13,687

 
52.84

 
 
RSUs assumed(1)
4,961

 
50.94

 
 
RSUs cancelled/forfeited
(654
)
 
43.67

 
 
RSUs vested
(797
)
 
49.51

 
 
RSUs outstanding at September 25, 2011
22,752

 
 $
48.69

 
 $
1.1



(1) Represents activity related to RSUs that were assumed as a result of an acquisition (Note 12).
A summary of stock option transactions for all equity compensation plans follows:
 
Number of Shares
(In thousands)
 
Weighted- Average
Exercise
Price
 
Average Remaining
Contractual Term
(Years)
 
Aggregate Intrinsic
Value
(In billions)
Options outstanding at September 26, 2010
214,958

 
 $
38.51

 
 
 
 
Options granted
1,220

 
48.37

 
 
 
 
Options assumed(1)
4,603

 
29.63

 
 
 
 
Options cancelled/forfeited/expired
(4,250
)
 
40.99

 
 
 
 
Options exercised
(67,279
)
 
36.60

 
 
 
 
Options outstanding at September 25, 2011
149,252

 
 $
39.10

 
5.65

 
 $
1.7

Exercisable at September 25, 2011
101,472

 
 $
38.39

 
4.89

 
 $
1.2



(1) Represents activity related to options that were assumed as a result of an acquisition (Note 12).
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Commitments and Contingencies (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Future minimum lease payments for all capital leases and operating leases
The future minimum lease payments for all capital leases and operating leases at September 25, 2011 were as follows (in millions):
 
Capital
Leases
 
Operating
Leases
 
Total
2012
 $
12

 
 $
115

 
 $
127

2013
12

 
60

 
72

2014
13

 
50

 
63

2015
13

 
33

 
46

2016
14

 
25

 
39

Thereafter
331

 
181

 
512

Total minimum lease payments
395

 
 $
464

 
 $
859

Deduct: Amounts representing interest
224

 
 
 
 
Present value of minimum lease payments
171

 
 
 
 
Deduct: Current portion of capital lease obligations
1

 
 
 
 
Long-term portion of capital lease obligations
 $
170

 
 
 
 
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Segment Information (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Revenues, EBT and total assets for reportable segments
The table below presents revenues, EBT and total assets for reportable segments (in millions):
 
QCT
 
QTL
 
QWI
 
QSI*
 
Reconciling
Items*
 
Total*
2011
 
 
 
 
 
 
 
 
 
 
 
Revenues
 $
8,859

 
 $
5,422

 
 $
656

 
 $

 
 $
20

 
 $
14,957

EBT
2,056

 
4,753

 
(152
)
 
(132
)
 
(838
)
 
5,687

Total assets
1,569

 
36

 
136

 
2,386

 
32,295

 
36,422

2010
 
 
 
 
 
 
 
 
 
 
 
Revenues
 $
6,695

 
 $
3,659

 
 $
628

 
 $

 
 $

 
 $
10,982

EBT
1,693

 
3,020

 
12

 
7

 
(239
)
 
4,493

Total assets
1,085

 
28

 
129

 
2,745

 
26,585

 
30,572

2009
 
 
 
 
 
 
 
 
 
 
 
Revenues
 $
6,135

 
 $
3,605

 
 $
641

 
 $

 
 $
6

 
 $
10,387

EBT
1,441

 
3,068

 
20

 
(54
)
 
(2,072
)
 
2,403

Total assets
892

 
89

 
142

 
1,614

 
24,708

 
27,445


*Revenues and EBT for fiscal 2010 and 2009 were adjusted to present discontinued operations (Note 11). Share-based payments that had been included in reconciling items and QSI revenues and EBT have been adjusted to conform for all periods presented.
Revenues aggregated into the QWI reportable segment
Revenues from each of the Company’s divisions aggregated into the QWI reportable segment were as follows (in millions):
 
2011
 
2010
 
2009
QES
 $
395

 
 $
376

 
 $
344

QIS
150

 
173

 
229

QGOV
100

 
74

 
66

Firethorn
11

 
7

 
3

Eliminations

 
(2
)
 
(1
)
 
 $
656

 
 $
628

 
 $
641

Reconciling items - revenue
Other reconciling items were comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Revenues
 
 
 
 
 
Elimination of intersegment revenues
 $
(3
)
 
 $
(10
)
 
 $
(15
)
Other nonreportable segments
23

 
10

 
21

 
 $
20

 
 $

 
 $
6

EBT
 
 
 
 
 
Unallocated cost of equipment and services revenues
 $
(210
)
 
 $
(42
)
 
 $
(40
)
Unallocated research and development expenses
(553
)
 
(401
)
 
(372
)
Unallocated selling, general and administrative expenses
(506
)
 
(336
)
 
(293
)
Unallocated other operating expenses

 

 
(1,013
)
Unallocated investment income (loss), net
756

 
767

 
(141
)
Other nonreportable segments
(324
)
 
(224
)
 
(206
)
Intersegment eliminations
(1
)
 
(3
)
 
(7
)
 
 $
(838
)
 
 $
(239
)
 
 $
(2,072
)

*As adjusted for discontinued operations (Note 11)
Reconciling items - EBT
Other reconciling items were comprised as follows (in millions):
 
2011
 
2010*
 
2009*
Revenues
 
 
 
 
 
Elimination of intersegment revenues
 $
(3
)
 
 $
(10
)
 
 $
(15
)
Other nonreportable segments
23

 
10

 
21

 
 $
20

 
 $

 
 $
6

EBT
 
 
 
 
 
Unallocated cost of equipment and services revenues
 $
(210
)
 
 $
(42
)
 
 $
(40
)
Unallocated research and development expenses
(553
)
 
(401
)
 
(372
)
Unallocated selling, general and administrative expenses
(506
)
 
(336
)
 
(293
)
Unallocated other operating expenses

 

 
(1,013
)
Unallocated investment income (loss), net
756

 
767

 
(141
)
Other nonreportable segments
(324
)
 
(224
)
 
(206
)
Intersegment eliminations
(1
)
 
(3
)
 
(7
)
 
 $
(838
)
 
 $
(239
)
 
 $
(2,072
)

*As adjusted for discontinued operations (Note 11)
Revenues from external customers and intersegment revenues
Specified items included in segment EBT were as follows (in millions):
 
QCT
 
QTL
 
QWI
 
QSI*
2011
 
 
 
 
 
 
 
Revenues from external customers
 $
8,856

 
 $
5,422

 
 $
656

 
 $

Intersegment revenues
3

 

 

 

Interest income
1

 
1

 

 
20

Interest expense
1

 

 

 
99

2010
 
 
 
 
 
 
 
Revenues from external customers
 $
6,686

 
 $
3,659

 
 $
628

 
 $

Intersegment revenues
9

 

 

 

Interest income
1

 
2

 
2

 
8

Interest expense
1

 

 
(4
)
 
27

2009
 
 
 
 
 
 
 
Revenues from external customers
 $
6,125

 
 $
3,603

 
 $
638

 
 $

Intersegment revenues
10

 
2

 
3

 

Interest income
4

 
12

 
1

 
3

Interest expense

 
1

 
1

 


*As adjusted for discontinued operations (Note 11)
Sales information by geographic area
Sales information by geographic area was as follows (in millions):
 
2011
 
2010*
 
2009*
China
 $
4,744

 
 $
3,194

 
 $
2,378

South Korea
2,887

 
2,913

 
3,655

Taiwan
2,550

 
1,360

 
831

Japan
1,165

 
1,018

 
1,098

United States
897

 
555

 
603

Other foreign
2,714

 
1,942

 
1,822

 
 $
14,957

 
 $
10,982

 
 $
10,387


*As adjusted for discontinued operations (Note 11)
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Discontinued Operations (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Rollforward of restructuring accruals
Changes in the restructuring accrual for fiscal 2011, which is reported as a component of other liabilities, were as follows (in millions):
 
Contract Termination Costs
 
Other Costs
 
Total
Beginning balance of restructuring accrual
 $

 
 $

 
 $

Initial costs
63

 
16

 
79

Adjustments to costs
(2
)
 
(6
)
 
(8
)
Cash payments
(22
)
 
(6
)
 
(28
)
Ending balance of restructuring accrual
 $
39

 
 $
4

 
 $
43

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]
Summarized results from discontinued operations were as follows (in millions):
 
Year Ended
 
September 25, 2011
 
September 26, 2010
 
September 27, 2009
Revenues
 $
5

 
 $
9

 
 $
29

Loss from discontinued operations
(507
)
 
(459
)
 
(327
)
Income tax benefit
194

 
186

 
127

Discontinued operations, net of income taxes
 $
(313
)
 
 $
(273
)
 
 $
(200
)
The carrying amounts of the major classes of assets and liabilities of discontinued operations in the consolidated balance sheet were as follows (in millions):
 
September 25, 2011
Assets
 
Current assets
 $
10

Property, plant and equipment, net
156

Assets held for sale
746

Other assets
1

 
 $
913

Liabilities
 
Trade accounts payable
 $
2

Payroll and other benefits related liabilities
2

Other current liabilities
75

Other noncurrent liabilities
183

 
 $
262

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Acquisitions Schedule of Purchase Price Allocation (Tables)
12 Months Ended
Sep. 25, 2011
Acquisitions [Abstract]
Schedule of Purchase Price Allocation [Table Text Block]
The allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
 
 
Current assets
 $
925

Amortizable intangible assets:
 
Technology-based intangible assets
692

Marketing-related intangible assets
50

Customer-related intangible assets
114

In-process research and development (IPR&D)
150

Goodwill
1,777

Other assets
77

Total assets
3,785

Liabilities
(316
)
 
 $
3,469

Business Acquisition, Pro Forma Information [Table Text Block]
The following table presents the unaudited pro forma results for fiscal 2011 and 2010. The unaudited pro forma financial information combines the results of operations of Qualcomm and Atheros as though the companies had been combined as of the beginning of fiscal 2010, and the pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at such times. The unaudited pro forma results presented include amortization charges for acquired intangible assets, eliminations of intercompany transactions, adjustments for increased fair value of acquired inventory, adjustments for incremental stock-based compensation expense related to the unearned portion of Atheros stock options and restricted stock units assumed, adjustments for depreciation expense for property, plant and equipment and related tax effects.
 
2011
 
2010
 
(In millions)
Revenues
 $
15,583

 
 $
11,867

Net income attributable to Qualcomm
4,304

 
3,013

Schedule of Certain Acquired Goodwill Assets by Segment [Table Text Block]
During fiscal 2011, the Company acquired nine other businesses for total cash consideration of  $466 million. Technology-based intangible assets recognized in the amount of  $150 million are being amortized on a straight-line basis over a weighted-average useful life of five years. Goodwill recognized in these transactions, of which  $234 million is expected to be deductible for tax purposes, was assigned to the Company’s reportable segments as follows (in millions):
               
QCT
 $
227

QWI
35

QTL
5

QSI
1

Nonreportable segments
8

 
 $
276

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Summarized Quarterly Data (Unaudited) (Tables)
12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Summarized Quarterly Data [Text Block]
The table below presents quarterly data for fiscal 2011 and 2010 (in millions, except per share data):
 
1st Quarter*
 
2nd Quarter*
 
3rd Quarter
 
4th Quarter
2011
 
 
 
 
 
 
 
Revenues (1)
 $
3,348

 
 $
3,870

 
 $
3,623

 
 $
4,117

Operating income (1)
1,247

 
1,430

 
1,113

 
1,238

Income from continuing operations (1)
1,252

 
1,264

 
985

 
1,055

Discontinued operations, net of tax (1)
(82
)
 
(269
)
 
44

 
(6
)
Net income attributable to Qualcomm (1)
1,170

 
999

 
1,035

 
1,056

 
 
 
 
 
 
 
 
Basic earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.77

 
 $
0.76

 
 $
0.59

 
 $
0.63

Discontinued Operations
 $
(0.05
)
 
 $
(0.16
)
 
 $
0.03

 
 $
0.00

Net income
 $
0.72

 
 $
0.60

 
 $
0.62

 
 $
0.63

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.76

 
 $
0.75

 
 $
0.58

 
 $
0.62

Discontinued Operations
 $
(0.05
)
 
 $
(0.16
)
 
 $
0.03

 
 $
0.00

Net income
 $
0.71

 
 $
0.59

 
 $
0.61

 
 $
0.62

 
 
 
 
 
 
 
 
2010*
 
 
 
 
 
 
 
Revenues (1)
 $
2,668

 
 $
2,661

 
 $
2,700

 
 $
2,952

Operating income (1)
980

 
896

 
893

 
958

Income from continuing operations (1)
898

 
852

 
832

 
938

Discontinued operations, net of tax (1)
(57
)
 
(78
)
 
(65
)
 
(73
)
Net income attributable to Qualcomm (1)
841

 
774

 
767

 
865

 
 
 
 
 
 
 
 
Basic earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.53

 
 $
0.52

 
 $
0.51

 
 $
0.59

Discontinued operations
 $
(0.03
)
 
 $
(0.05
)
 
 $
(0.04
)
 
 $
(0.05
)
Net income
 $
0.50

 
 $
0.47

 
 $
0.47

 
 $
0.54

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share attributable to Qualcomm (2):
 
 
 
 
 
 
 
Continuing operations
 $
0.53

 
 $
0.51

 
 $
0.51

 
 $
0.58

Discontinued operations
 $
(0.03
)
 
 $
(0.05
)
 
 $
(0.04
)
 
 $
(0.05
)
Net income
 $
0.50

 
 $
0.46

 
 $
0.47

 
 $
0.53

*As adjusted for discontinued operations (Note 11)

(1) Revenues, operating income, income from continuing operations, discontinued operations, net of tax, and net income attributable to
Qualcomm are rounded to millions each quarter. Therefore, the sum of the quarterly amounts may not equal the annual amounts reported.
(2) Earnings per share attributable to Qualcomm are computed independently for each quarter and the full year based upon respective average
shares outstanding. Therefore, the sum of the quarterly earnings per share amounts may not equal the annual amounts reported.
              
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Valuation and Qualifying Accounts (Tables)
12 Months Ended
Sep. 25, 2011
Schedule to Financial Statements [Abstract]
Changes in valuation allowances
SCHEDULE II
QUALCOMM INCORPORATED
VALUATION AND QUALIFYING ACCOUNTS
(In millions)
 
Balance at
Beginning of
Period
 
(Charged)
Credited to
Costs and
Expenses
 
Deductions
 
Other
 
Balance at
End of
Period
Year ended September 25, 2011
 
 
 
 
 
 
 
 
 
Allowances:
 
 
 
 
 
 
 
 
 
— trade receivables
 $
(3
)
 
 $

 
 $
1

 
 $

 
 $
(2
)
— notes receivables
(3
)
 

 

 

 
(3
)
— investment receivables (1)
(9
)
 
6

 
3

 

 

Valuation allowance on deferred tax assets
(39
)
 
(42
)
 

 
(17
)
(2) 
(98
)
 
 $
(54
)
 
 $
(36
)
 
 $
4

 
 $
(17
)
 
 $
(103
)
Year ended September 26, 2010
 
 
 
 
 
 
 
 
 
Allowances:
 
 
 
 
 
 
 
 
 
— trade receivables
 $
(4
)
 
 $
(1
)
 
 $
2

 
 $

 
 $
(3
)
— notes receivable
(1
)
 
(2
)
 

 

 
(3
)
— investment receivables (1)
(10
)
 

 
1

 

 
(9
)
Valuation allowance on deferred tax assets
(72
)
 
36

 

 
(3
)
(3) 
(39
)
 
 $
(87
)
 
 $
33

 
 $
3

 
 $
(3
)
 
 $
(54
)
Year ended September 27, 2009
 
 
 
 
 
 
 
 
 
Allowances:
 
 
 
 
 
 
 
 
 
— trade receivables
 $
(38
)
 
 $
(4
)
 
 $
38

 
 $

 
 $
(4
)
— notes receivable
(3
)
 
(4
)
 
6

 

 
(1
)
— investment receivables (1)

 
(10
)
 

 

 
(10
)
Valuation allowance on deferred tax assets
(149
)
 
(201
)
 

 
278

(3) 
(72
)
 
 $
(190
)
 
 $
(219
)
 
 $
44

 
 $
278

 
 $
(87
)
(1) This amount represents the allowance for investment receivables due for redemptions of money market investments.
(2) This amount represents  $12 million recorded as a result of an acquisition and  $5 million charged to other comprehensive income (loss).
(3) This amount was charged to other comprehensive income (loss).
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The Company and Its Significant Accounting Policies (Details) (USD  $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Notes to Financial Statements [Abstract]
Number of weeks in a fiscal period 52 weeks 52 weeks 52 weeks
Securities Lending [Abstract]
Marketable securities loaned under the Company's securities lending program  $ 44  $ 0
Collateral received for marketable securities loaned 46
Derivatives [Abstract]
Foreign currency option contracts recorded in other current assets 17 4
Foreign currency option contracts recorded in other current liabilities 42 19
Foreign currency forward contracts recorded in other current assets 7
Foreign currency put option contracts derivative liabilities at fair value 80 0 0
Revenue Recognition [Abstract]
Revenues from services less than 10%
License fees recognized over estimated period of license benefit, duration 5 to 15 years
Share-Based Compensation [Abstract]
Weighted-average estimated fair value of employee stock options granted, per share  $ 13.17  $ 12.4  $ 14.27
Period during which the term structure of volatility is used (in years) 2
Expected life of employee stock options granted, in years 5.6 5.5 5.6
Weighted-average estimated fair values of employee RSUs granted, per share  $ 50.14  $ 35.61  $ 0
Pre-vesting forfeiture rate 3.00% 3.00%
Share-based compensation expense related to share-based award granted in those periods 165 119 106
Incremental tax benefit from stock options exercised 183 45 79
Foreign Currency [Abstract]
Foreign currency transaction losses 8 6
Income Tax Uncertainties [Abstract]
Income tax uncertainties, minimum likelihood percentage of being realized upon settlement 50.00%
Incremental Dilutive Common Share Equivalents [Abstract]
Incremental dilutive common share equivalents 32,908,000 15,652,000 16,900,000
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated other-than-temporary losses on marketable debt securities related to factors other than credit, net of income taxes 13
Comprehensive Income [Abstract]
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, income tax effect 10 (5) 12
Net unrealized (losses) gains on other marketable securities and derivative instruments, income tax effect 80 74 (5)
Reclassification of net realized gains on marketable securities and derivative instruments included in net income, income tax effect 112 (12) 75
Reclassification of other-than-temporary losses on marketable securities included in net income, income tax effect  $ 14  $ (5)  $ 130
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The Company and Its Significant Accounting Policies Property, Plant and Equipment (Details)
12 Months Ended
Sep. 25, 2011
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life, maximum (in years) 30
Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life, maximum (in years) 15
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life, maximum (in years) 15
Buildings on Leased Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life, maximum (in years) 20
Other Property, Plant and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life, maximum (in years) 25
Property, plant and equipment, useful life, minimum (in years) 2
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The Company and Its Significant Accounting Policies Goodwill and Other Intangible Assets (Details)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Weighted-Average Amortization Periods for Finite-Lived Intangible Assets, by Class [Line Items]
Weighted-average amortization period (in years) 11 14
Spectrum Licenses [Member]
Weighted-Average Amortization Periods for Finite-Lived Intangible Assets, by Class [Line Items]
Weighted-average amortization period (in years) 5 5
Marketing-related [Member]
Weighted-Average Amortization Periods for Finite-Lived Intangible Assets, by Class [Line Items]
Weighted-average amortization period (in years) 9 18
Technology-based [Member]
Weighted-Average Amortization Periods for Finite-Lived Intangible Assets, by Class [Line Items]
Weighted-average amortization period (in years) 11 14
Customer-related [Member]
Weighted-Average Amortization Periods for Finite-Lived Intangible Assets, by Class [Line Items]
Weighted-average amortization period (in years) 3 5
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The Company and Its Significant Accounting Policies Concentration Risk (Details)
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Revenues [Member]
Concentration Risk [Line Items]
Concentration risk, number of customers 2 2 2
Revenues [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage, customer 1 13.00% 15.00% 18.00%
Concentration risk, percentage, customer 2 13.00% 10.00% 13.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, number of customers 2 3
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage 34.00% 42.00%
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The Company and Its Significant Accounting Policies Share-Based Compensation (Details)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Volatility 30.80% 33.80% 42.70%
Risk-free interest rate 2.10% 2.50% 2.60%
Dividend yield 1.50% 1.50% 1.50%
Post-vest forfeiture rate 9.80% 9.80% 9.20%
Suboptimal exercise factor 1.8 1.8 1.9
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The Company and Its Significant Accounting Policies Share-Based Compensation Expense (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Cost of equipment and services revenues  $ 67  $ 41  $ 40
Research and development 397 293 272
Selling, general and administrative 349 263 252
Continuing operations 813 597 564
Related income tax benefit (194) (166) (121)
Continuing operations, net of income taxes 619 431 443
Discontinued operations 8 17 20
Related income tax benefit (3) (6) (8)
Discontinued operations, net of income taxes 5 11 12
Share-based compensation expense, net of income taxes  $ 624  $ 442  $ 455
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The Company and Its Significant Accounting Policies Earnings Per Common Share (Details)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS 20,224,000 149,007,000 136,309,000
Written Put Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS 11,800,000
Other Common Stock Equivalents [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS 1,963,000 235,000
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The Company and Its Significant Accounting Policies Accumulated Other Comprehensive Income (Details) (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes  $ 27  $ 62
Net unrealized gains on marketable securities, net of income taxes 427 723
Net unrealized losses on derivative instruments, net of income taxes (15) (8)
Foreign currency translation (86) (80)
Total accumulated other comprehensive income  $ 353  $ 697
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The Company and Its Significant Accounting Policies Comprehensive Income (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Net income  $ 4,242  $ 3,247  $ 1,592
Foreign currency translation (9) (40) (25)
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income taxes of  $10, ( $5) and  $12, respectively (19) 21 135
Net unrealized (losses) gains on other marketable securities and derivative instruments, net of income taxes of  $80,  $74 and ( $5), respectively (145) 392 261
Reclassification of net realized gains on marketable securities and derivative instruments included in net income, net of income taxes of  $112, ( $12) and  $75, respectively (199) (380) (93)
Reclassification of other-than-temporary losses on marketable securities included in net income, net of income taxes of  $14, ( $5) and  $130, respectively 25 116 613
Total other comprehensive (loss) income (347) 109 891
Total comprehensive income 3,895 3,356 2,483
Comprehensive loss attributable to noncontrolling interests 21 0 0
Comprehensive income attributable to Qualcomm  $ 3,916  $ 3,356  $ 2,483
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Fair Value Measurements (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Nonrecurring Fair Value Measurements [Abstract]
Goodwill balance prior to impairment for Firethorn reporting unit  $ 154
Goodwill balance for Firethorn reporting unit 40
Goodwill Impairment Charge  $ 114  $ 0  $ 0
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Fair Value Measurements Fair Value Hierarchy (Details) (USD  $)
In Millions
Sep. 25, 2011
Assets [Abstract]
Cash equivalents  $ 4,624
Marketable Securities [Abstract]
U.S. Treasury securities and government-related securities 522
Corporate bonds and notes 6,018
Mortgage- and asset-backed securities 678
Auction rate securities 124
Non-investment-grade debt securities 3,672
Common and preferred stock 1,789
Equity mutual and exchange-traded funds 845
Debt mutual funds 1,803
Total marketable securities 15,451
Derivative Instruments 24
Other investments (1) 152
Total assets measured at fair value 20,251
Liabilities [Abstract]
Derivative instruments 122
Other liabilities (1) 159
Total liabilities measured at fair value 281
Level 1 [Member]
Assets [Abstract]
Cash equivalents 2,495
Marketable Securities [Abstract]
U.S. Treasury securities and government-related securities 14
Corporate bonds and notes 0
Mortgage- and asset-backed securities 0
Auction rate securities 0
Non-investment-grade debt securities 0
Common and preferred stock 1,061
Equity mutual and exchange-traded funds 845
Debt mutual funds 1,327
Total marketable securities 3,247
Derivative Instruments 0
Other investments (1) 152
Total assets measured at fair value 5,894
Liabilities [Abstract]
Derivative instruments 0
Other liabilities (1) 152
Total liabilities measured at fair value 152
Level 2 [Member]
Assets [Abstract]
Cash equivalents 2,129
Marketable Securities [Abstract]
U.S. Treasury securities and government-related securities 508
Corporate bonds and notes 6,018
Mortgage- and asset-backed securities 667
Auction rate securities 0
Non-investment-grade debt securities 3,656
Common and preferred stock 728
Equity mutual and exchange-traded funds 0
Debt mutual funds 476
Total marketable securities 12,053
Derivative Instruments 24
Other investments (1) 0
Total assets measured at fair value 14,206
Liabilities [Abstract]
Derivative instruments 122
Other liabilities (1) 0
Total liabilities measured at fair value 122
Level 3 [Member]
Assets [Abstract]
Cash equivalents 0
Marketable Securities [Abstract]
U.S. Treasury securities and government-related securities 0
Corporate bonds and notes 0
Mortgage- and asset-backed securities 11
Auction rate securities 124
Non-investment-grade debt securities 16
Common and preferred stock 0
Equity mutual and exchange-traded funds 0
Debt mutual funds 0
Total marketable securities 151
Derivative Instruments 0
Other investments (1) 0
Total assets measured at fair value 151
Liabilities [Abstract]
Derivative instruments 0
Other liabilities (1) 7
Total liabilities measured at fair value  $ 7
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Fair Value Measurements Activity Between Levels of the Fair Value Hierarchy (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Auction Rate Securities [Member]
Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]
Beginning balance of Level 3  $ 126  $ 174
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
Included in investment income, net 0 0
Included in other comprehensive income 2 7
Purchases 4 0
Issuances 0 0
Settlements (8) (55)
Transfers into Level 3 0 0
Ending balance of Level 3 124 126
Other Marketable Securities [Member]
Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]
Beginning balance of Level 3 18 31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
Included in investment income, net 2 5
Included in other comprehensive income (1) (1)
Purchases 6 0
Issuances 0 0
Settlements (6) (21)
Transfers into Level 3 8 4
Ending balance of Level 3 27 18
Other Liabilities [Member]
Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]
Beginning balance of Level 3 0
Total Realized and Unrealized Gains (Losses):
Included in investment income (loss), net (1)
Included in other comprehensive income 0
Purchases 0
Issuances 8
Settlements 0
Transfers into Level 3 0
Ending balance of Level 3  $ 7
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Marketable Securities (Details) (USD  $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Marketable Securities [Abstract]
Effective ownership interest in debt mutual fund (fair value option) (percentage) 21.00%
Changes in fair value of debt mutual fund (fair value option)  $ 9  $ 17
Time deposits - Current  $ 0  $ 400
Expiration date of time deposits December 2010
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Marketable Securities Marketable Securities Table (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Available-for-sale Securities [Abstract]
Available-for-sale - Current  $ 6,190  $ 6,332
Available-for-sale - Noncurrent 8,785 7,656
Fair Value Option [Abstract]
Debt mutual fund - Current 0 0
Debt mutual fund - Noncurrent 476 467
Time deposits - Current 0 400
Time deposits - Noncurrent 0 0
Marketable Securities - Current 6,190 6,732
Marketable Securities - Noncurrent 9,261 8,123
Contractual Maturities of Available-for-sale Debt Securities [Abstract]
Years to Maturity - Less Than One Year 1,084
Years to Maturity - One to Five Years 4,600
Years to Maturity - Five to Ten Years 2,450
Years to Maturity - Greater Than Ten Years 952
Years to Maturity - No Single Maturity Date 3,255
Total 12,341
Realized Gains and Losses on Sales of Available-for-sale Marketable Securities [Abstract]
Gross Realized Gains 356 415 215
Gross Realized Losses (30) (31) (79)
Net Realized Gains 326 384 136
Available-for-sale Securities [Abstract]
Cost 14,605 13,104
Unrealized Gains 572 915
Unrealized Losses (202) (31)
Fair Value 14,975 13,988
Investments in a Continuous Unrealized Loss Position [Abstract]
Less than 12 months - Fair value 4,482 1,131
Less than 12 months - Unrealized losses (197) (19)
More than 12 months - Fair value 185 242
More than 12 months - Unrealized losses (5) (12)
Activity for Credit Loss Portion of Other-than-temporary Impairments on Debt Securities [Roll Forward]
Beginning balance of credit losses 109 170 0
Credit losses remaining in retained earnings upon adoption 0 0 186
Reductions in credit losses related to securities the Company intends to sell (40) 0 (14)
Credit losses recognized on securities previously not impaired 2 1 17
Additional credit losses recognized on securities previously impaired 0 1 2
Reductions in credit losses related to securities sold (20) (39) (21)
Accretion of credit losses due to an increase in cash flows expected to be collected (5) (24) 0
Ending balance of credit losses 46 109 170
U.S. Treasury securities and government-related securities [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 516 650
Available-for-sale - Noncurrent 6 4
Corporate bonds and notes [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 3,665 3,504
Available-for-sale - Noncurrent 2,353 1,495
Investments in a Continuous Unrealized Loss Position [Abstract]
Less than 12 months - Fair value 1,862 425
Less than 12 months - Unrealized losses (41) (1)
More than 12 months - Fair value 41 23
More than 12 months - Unrealized losses 0 0
Mortgage- and asset-backed securities [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 587 629
Available-for-sale - Noncurrent 91 38
Auction rate securities [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 0 0
Available-for-sale - Noncurrent 124 126
Investments in a Continuous Unrealized Loss Position [Abstract]
Less than 12 months - Fair value 3 0
Less than 12 months - Unrealized losses 0 0
More than 12 months - Fair value 121 126
More than 12 months - Unrealized losses (2) (4)
Non-investment-grade debt securities [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 19 21
Available-for-sale - Noncurrent 3,653 3,344
Investments in a Continuous Unrealized Loss Position [Abstract]
Less than 12 months - Fair value 1,867 296
Less than 12 months - Unrealized losses (86) (7)
More than 12 months - Fair value 19 90
More than 12 months - Unrealized losses (3) (8)
Common and preferred stock [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 76 52
Available-for-sale - Noncurrent 1,713 1,670
Investments in a Continuous Unrealized Loss Position [Abstract]
Less than 12 months - Fair value 750 133
Less than 12 months - Unrealized losses (70) (10)
More than 12 months - Fair value 4 3
More than 12 months - Unrealized losses 0 0
Equity mutual and exchange-traded funds [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 0 0
Available-for-sale - Noncurrent 845 979
Investments in a Continuous Unrealized Loss Position [Abstract]
Less than 12 months - Fair value 277
Less than 12 months - Unrealized losses (1)
More than 12 months - Fair value 0
More than 12 months - Unrealized losses 0
Debt mutual funds [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 1,327 1,476
Available-for-sale - Noncurrent 0 0
Equity Securities [Member]
Available-for-sale Securities [Abstract]
Cost 2,426 2,309
Unrealized Gains 278 403
Unrealized Losses (70) (11)
Fair Value 2,634 2,701
Debt Securities [Member]
Available-for-sale Securities [Abstract]
Cost 12,179 10,795
Unrealized Gains 294 512
Unrealized Losses (132) (20)
Fair Value  $ 12,341  $ 11,287
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Composition of Certain Financial Statement Captions (Details) (USD  $)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Accounts Receivable [Abstract]
Allowance for doubtful accounts  $ 2,000,000  $ 3,000,000
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense 704,000,000 437,000,000 428,000,000
Gross book values of property under capital leases 175,000,000 227,000,000
Capital lease additions 1,000,000 40,000,000 50,000,000
Buildings and improvements and leasehold improvements leased to third parties or held for lease to third parties, net book value 19,000,000 38,000,000
Buildings and improvements and leasehold improvements leased to third parties or held for lease to third parties, accumulated depreciation and amortization 8,000,000 8,000,000
Future minimum rental income - fiscal 2012 5,000,000
Future minimum rental income - fiscal 2013 3,000,000
Future minimum rental income - fiscal 2014 2,000,000
Future minimum rental income - fiscal 2015 1,000,000
Future minimum rental income - after fiscal 2015 0
Goodwill and Other Intangible Assets [Abstract]
Goodwill impairment 114,000,000 0 0
Goodwill balance for Firethorn reporting unit 40,000,000
Carrying value of spectrum held for sale 746,000,000 0
Wireless licenses not subject to amortization 16,000,000
Amortization expense related to intangible assets 357,000,000 227,000,000 207,000,000
Expected Amortization Expense for Intangible Assets [Abstract]
Expected amortization expense - fiscal 2012 457,000,000
Expected amortization expense - fiscal 2013 438,000,000
Expected amortization expense - fiscal 2014 426,000,000
Expected amortization expense - fiscal 2015 385,000,000
Expected amortization expense - fiscal 2016 277,000,000
Expected amortization expense - after fiscal 2016  $ 1,100,000,000
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Composition of Certain Financial Statement Captions Accounts Receivable (Details) (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Accounts Receivable [Line Items]
Trade, net of allowances for doubtful accounts of  $2 and  $3, respectively  $ 951  $ 697
Long-term contracts 32 25
Other 10 8
Accounts receivable, net  $ 993  $ 730
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Composition of Certain Financial Statement Captions Inventories (Details) (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Raw materials  $ 15  $ 15
Work-in-process 384 284
Finished goods 366 229
Inventories  $ 765  $ 528
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Composition of Certain Financial Statement Captions Property, Plant and Equipment (Details) (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Property, Plant and Equipment [Line Items]
Land  $ 203  $ 201
Buildings and improvements 1,427 1,424
Computer equipment and software 1,267 1,144
Machinery and equipment 1,798 1,684
Furniture and office equipment 75 70
Leasehold improvements 263 242
Construction in progress 394 75
Property, plant and equipment, gross 5,427 4,840
Less accumulated depreciation and amortization (3,013) (2,467)
Property, plant and equipment, net  $ 2,414  $ 2,373
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Composition of Certain Financial Statement Captions Goodwill (Details) (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Goodwill [Line Items]
Goodwill  $ 3,432  $ 1,488
QCT [Member]
Goodwill [Line Items]
Goodwill 2,456 443
QTL [Member]
Goodwill [Line Items]
Goodwill 681 676
QWI [Member]
Goodwill [Line Items]
Goodwill 158 241
QMT [Member]
Goodwill [Line Items]
Goodwill 136 128
QSI [Member]
Goodwill [Line Items]
Goodwill  $ 1  $ 0
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Composition of Certain Financial Statement Captions Other Intangible Assets (Details) (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Intangible Assets [Line Items]
Gross carrying amount  $ 3,991  $ 3,584
Accumulated amortization (892) (562)
Spectrum Licenses [Member]
Intangible Assets [Line Items]
Gross carrying amount 20 766
Accumulated amortization (2) (2)
Marketing-related [Member]
Intangible Assets [Line Items]
Gross carrying amount 72 21
Accumulated amortization (18) (13)
Technology-based [Member]
Intangible Assets [Line Items]
Gross carrying amount 3,767 2,785
Accumulated amortization (802) (537)
Customer-related [Member]
Intangible Assets [Line Items]
Gross carrying amount 132 12
Accumulated amortization  $ (70)  $ (10)
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Composition of Certain Financial Statement Captions Other Current Liabilities (Details) (USD  $)
In Millions
Sep. 25, 2011
Sep. 26, 2010
Customer incentives and other customer-related liabilities  $ 1,180  $ 574
Current portion of payable to Broadcom (Note 9) 170 170
Payable for unsettled securities trades 298 80
Other 406 261
Other current liabilities  $ 2,054  $ 1,085
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Investment Income (Loss) (Details) (USD  $)
In Millions
12 Months Ended
Sep. 27, 2009
Components of Investment Income (Loss), Net [Abstract]
Other-than-temporary impairment losses on marketable securities  $ 747
Noncredit portion of losses on debt securities  $ 4
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Investment Income Investment Income (Loss) Table (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Investment Income (Loss), Net [Line Items]
Interest and dividend income  $ 500  $ 530  $ 516
Interest expense (114) (43) (13)
Net realized gains on marketable securities 335 401 136
Net realized gains on other investments 2 4 1
Impairment losses on marketable securities (39) (111) (743)
Impairment losses on other investments (13) (14) (20)
(Losses) gains on derivative instruments (3) 3 1
Equity in losses of investees (7) (4) (17)
Investment income (loss), net  $ 661  $ 766  $ (139)
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Income Taxes (Details) (USD  $)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Deferred Tax Liabilities Not Recognized [Abstract]
Unrecorded deferred tax liability related to United States federal and state income taxes and withholding taxes on non United States subsidiaries undistributed earnings  $ 4,700,000,000
Amount of undistributed earnings of certain non-United States subsidiaries indefinitely invested outside the United States 13,500,000,000
Income Tax Examinations [Abstract]
Increase to tax provision as a result of income tax examination 20,000,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract]
Unrecognized tax benefits included tax positions that, if recognized, would impact the effective tax rate 88,000,000
Cash amounts paid for income taxes, net of refunds received  $ 2,100,000,000  $ 671,000,000  $ 516,000,000
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Income Taxes Components of Income Tax (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Current provision [Abstract]
Federal  $ 179  $ 1,514  $ 268
State 57 242 71
Foreign 670 389 291
Total current provision 906 2,145 630
Deferred provision [Abstract]
Federal 170 (1,139) (72)
State 62 (26) 72
Foreign (6) (7) (19)
Total deferred provision 226 (1,172) (19)
Income tax provision 1,132 973 611
Components of Income Before Income Taxes [Abstract]
United States 2,984 2,195 1,368
Foreign 2,703 2,298 1,035
Income from continuing operations before income taxes 5,687 4,493 2,403
Reconciliation of the Expected Statutory Federal Income Tax Provision to Actual Income Tax Provision [Abstract]
Expected income tax provision at federal statutory tax rate 1,991 1,573 841
State income tax provision, net of federal benefit 283 226 113
Foreign income taxed at other than U.S. rates (1,074) (897) (407)
Tax audit impacts, net 1 3 (155)
Tax credits (151) (55) (112)
Valuation allowance 42 (40) 227
Revaluation of deferred taxes 69 152 74
Other (29) 11 30
Income tax provision 1,132 973 611
Deferred Tax Assets and Deferred Tax Liabilities [Abstract]
Accrued liabilities, reserves and other 205 287
Share-based compensation 592 615
Capitalized start-up and organizational costs 91 102
Unearned revenues 1,269 1,311
Unrealized losses on marketable securities 309 341
Unrealized losses on other investments 28 27
Capital loss carryover 40 37
Tax credits 145 54
Unused net operating losses 97 64
Other basis differences 30 10
Total gross deferred assets 2,806 2,848
Valuation allowance (98) (39)
Total net deferred assets 2,708 2,809
Purchased intangible assets (174) (108)
Deferred contract costs (7) (6)
Unrealized gains on marketable securities (206) (352)
Property, plant and equipment (85) (100)
Total deferred liabilities 472 566
Net deferred assets 2,236 2,243
Reported as [Abstract]
Current deferred tax assets 537 321
Non-current deferred tax assets 1,703 1,922
Current deferred tax liabilities (2) 0
Non-current deferred tax liabilities (2) 0
Net deferred assets  $ 2,236  $ 2,243
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Income Taxes Deferred Tax Assets (Liabilities), Net (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Tax Credit Carryforwards [Abstract]
Unused foreign tax credits  $ 20
Expiration of unused foreign tax credits 2013
Valuation Allowance [Abstract]
Valuation allowance on foreign deferred tax assets 76
Valuation allowance on state net operating losses 10
Valuation allowance on net capital losses 12
Federal [Member]
Operating Loss Carryforwards [Line Items]
Unused net operating loss carryforwards 167
Expiration of unused net operating loss carryforwards 2021 through 2029
Foreign [Member]
Operating Loss Carryforwards [Line Items]
Unused net operating loss carryforwards 76
Expiration of unused net operating loss carryforwards 2012 through 2020
State [Member]
Operating Loss Carryforwards [Line Items]
Unused net operating loss carryforwards  $ 352
Expiration of unused net operating loss carryforwards 2012 through 2031
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Income Taxes Unrecognized Tax Benefits (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Changes in the Amount of Unrecognized Tax Benefits [Roll Forward]
Beginning balance of unrecognized tax benefits  $ 353  $ 84  $ 244
Additions based on prior year tax positions 64 223 39
Reductions for prior year tax positions (10) (58) (202)
Additions for current year tax positions 12 165 3
Settlements with taxing authorities (323) (61) 0
Ending balance of unrecognized tax benefits  $ 96  $ 353  $ 84
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Capital Stock (Details) (USD  $)
1 Months Ended 3 Months Ended 12 Months Ended
Nov. 02, 2011
Dec. 25, 2011
Sep. 25, 2011
Jun. 26, 2011
Mar. 27, 2011
Dec. 26, 2010
Sep. 26, 2010
Jun. 27, 2010
Mar. 28, 2010
Dec. 27, 2009
Sep. 27, 2009
Jun. 28, 2009
Mar. 29, 2009
Dec. 28, 2008
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Mar. 08, 2011
Mar. 01, 2010
Mar. 03, 2009
Preferred Stock [Abstract]
Shares of preferred stock authorized for issuance 8,000,000 8,000,000 8,000,000 8,000,000
Number of preferred stock series one or more one or more
Par value of preferred stock authorized for issuance  $ 0.0001  $ 0.0001  $ 0.0001  $ 0.0001
Shares of preferred stock designated as series A junior participating preferred stock 4,000,000 4,000,000 4,000,000 4,000,000
Preferred stock, shares outstanding 0 0 0 0
Preferred Share Purchase Rights Agreement [Abstract]
Purchase price of series A junior participating preferred stock  $ 180  $ 180
Minimum percentage of beneficial ownership by an acquiring person at which rights are exercisable 20.00% 20.00%
Expiration date of rights Sep 25, 2015
Redemption price per right  $ 0.001  $ 0.001
Stock Repurchase Program [Abstract]
Authorized amount of repurchase of common stock  $ 3,000,000,000
Number of shares of common stock repurchased and retired 2,046,000 2,878,000 79,789,000 8,920,000
Value of common stock repurchased and retired 99,000,000 142,000,000 3,000,000,000 284,000,000
Remaining authorized amount of repurchase of common stock 1,000,000,000 1,000,000,000
Option indexed to issuer's equity, indexed shares 11,800,000 11,800,000
Maximum value, net of premiums received, of outstanding options indexed to issuers equity 511,000,000 511,000,000
Proceeds from derivative instrument, financing activities 75,000,000 0 0
Foreign currency put option contracts derivative liabilities at fair value 80,000,000 0 0 80,000,000 0 0
Loss recognized in investment income due to changes in fair value of put options 5,000,000
Dividends [Abstract]
Quarterly dividend per share of common stock, before increase  $ 0.19  $ 0.17  $ 0.16
Quarterly dividend per share of common stock, after increase  $ 0.215  $ 0.19  $ 0.17
Dividends charged to retained earnings - per share  $ 0.215  $ 0.215  $ 0.215  $ 0.19  $ 0.19  $ 0.19  $ 0.19  $ 0.17  $ 0.17  $ 0.17  $ 0.17  $ 0.16  $ 0.16  $ 0.81  $ 0.72  $ 0.66
Dividends charged to retained earnings - total 368,000,000 360,000,000 319,000,000 314,000,000 305,000,000 309,000,000 279,000,000 284,000,000 283,000,000 282,000,000 264,000,000 264,000,000 1,361,000,000 1,177,000,000 1,093,000,000
Cash dividends, date announced Oct 11, 2011
Cash dividends, date payable Dec 21, 2011
Cash dividends, date of record Nov 23, 2011
Noncontrolling Interests [Abstract]
License period of licenses 20 years
Advance payment deposit 994,000,000 1,100,000,000 994,000,000 1,100,000,000
Date of commercial launch of wireless service within five years of the assignment date
Proceeds from noncontrolling interests  $ 62,000,000  $ 0  $ 0
Noncontrolling Interest, Ownership Percentage by Parent 74.00% 74.00%
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Capital Stock Noncontrolling Interests (Details) (USD  $)
In Millions
Sep. 25, 2011
Class of Stock [Line Items]
Other liabilities  $ 159
Fair Value, Inputs, Level 3 [Member]
Class of Stock [Line Items]
Other liabilities  $ 7
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Employee Benefit Plans (Details) (USD  $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Employee Savings and Retirement Plan [Abstract]
Percentage of eligible employee compensation that can be contributed to 401(k) plan 100.00%
Company's contribution expense to 401(k) plan  $ 52  $ 46  $ 46
Restricted Stock Units, Additional Disclosures [Abstract]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period, total fair value 43 1 0
Tax withholding related to vesting of restricted stock units, number of shares 243,000
Tax withholding related to vesting of restricted stock units, value  $ 14
Restricted Stock Units [Member]
Employee Savings and Retirement Plan [Abstract]
Vesting period 3
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Employee Benefit Plans Equity Compensation Plans (Details)
12 Months Ended
Sep. 25, 2011
Qualcomm Equity Compensation Plans [Member]
Sep. 25, 2011
Atheros Equity Compensation Plans [Member]
Sep. 25, 2011
Equity Compensation Plans Consolidated [Member]
Sep. 26, 2010
Equity Compensation Plans Consolidated [Member]
Sep. 27, 2009
Equity Compensation Plans Consolidated [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized 483,284,000
Shares approved in March 2011 65,000,000
Reserved shares remaining 276,131,000 9,733,000
Stock awards assumed as a result of acquisitions 9,564,000
Net share-based awards granted as a percentage of outstanding shares as of the beginning of each fiscal year 0.70% 1.20% 2.20%
Total share based awards granted as a percentage of outstanding shares as of the end of each fiscal year 0.90% 1.90% 2.50%
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Employee Benefit Plans Summary of Stock Option Transactions for All Stock Option Plans (Details) (Stock Options [Member], USD  $)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Stock Options [Member]
Summary of Stock Option Transactions for All Stock Option Plans [Roll Forward]
Options outstanding - Beginning balance 214,958
Options granted 1,220
Options assumed 4,603
Options cancelled/forfeited/expired (4,250)
Options exercised (67,279)
Options outstanding - Ending balance 149,252 214,958
Exercisable at September 25, 2011 101,472
Summary of Stock Option Transactions for All Stock Option Plans [Abstract]
Share-based compensation arrangement by share-based payment award, options, exercises in period, total intrinsic value  $ 1,100,000,000  $ 208,000,000  $ 272,000,000
Outstanding at beginning of period, weighted average exercise price  $ 38.51
Options granted, weighted average exercise price  $ 48.37
Options assumed, weighted average exercise price  $ 29.63
Options cancelled/forfeited/ expired, weighted average exercise price  $ 40.99
Options exercised, weighted average exercise price  $ 36.6
Outstanding at end of period, weighted average exercise price  $ 39.1  $ 38.51
Exercisable, weighted average exercise price  $ 38.39
Options outstanding, average remaining contractual term (years) 5.65
Exercisable, average remaining contractual term (years) 4.89
Options outstanding, aggregate intrinsic value 1,700,000,000
Exercisable, aggregate intrinsic value 1,200,000,000
Employee Service Share-Based Compensation, Aggregate Disclosures [Abstract]
Vesting period 5
Stock option exercisable period after grant date 10
Unrecognized compensation costs on nonvested awards 636,000,000
Nonvested awards, total compensation cost not yet recognized, period for recognition (years) 2
Cash received from exercise of stock options 2,500,000,000 565,000,000 534,000,000
Tax benefit realized from exercise of stock options  $ 421,000,000  $ 80,000,000  $ 106,000,000
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Employee Benefit Plans Summary of RSU Transactions (Details) (Restricted Stock Units [Member], USD  $)
12 Months Ended
Sep. 25, 2011
Restricted Stock Units [Member]
Summary of RSU Transactions for All Equity Compensation Plans, Additional Disclosures [Abstract]
RSUs outstanding at beginning of period, weighted average grant date fair value  $ 35.72
RSUs granted, weighted average grant date fair value  $ 52.84
RSUs assumed, weighted average grant date fair value  $ 50.94
RSUs cancelled/forfeited, weighted average grant date fair value  $ 43.67
RSUs vested, weighted average grant date fair value  $ 49.51
RSUs outstanding at end of period, weighted average grant date fair value  $ 48.69
RSUs outstanding at end of period, aggregate intrinsic value  $ 1,100,000,000
Summary of Equity Instruments Other Than Options [Roll Forward]
RSUs outstanding at September 26, 2010 5,555
RSUs granted 13,687
RSUs assumed 4,961
RSUs cancelled/forfeited (654)
RSUs vested (797)
RSUs outstanding at September 25, 2011 22,752
Employee Service Share-Based Compensation, Aggregate Disclosures [Abstract]
Unrecognized compensation costs on nonvested awards  $ 803,000,000
Nonvested awards, total compensation cost not yet recognized, period for recognition (years) 2.3
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Employee Benefit Plans Employee Stock Purchase Plan (Details) (Employee Stock Purchase Plans [Member], USD  $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Employee Stock Purchase Plans [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Employee stock purchase plan discount 85.00%
Maximum employee subscription rate 15.00%
Shares authorized 46,709,000
Reserved for future issuance 18,411,000
Shares issued in period 3,778,000 3,782,000 3,654,000
Share issued in period, average price per share  $ 36.82  $ 32.81  $ 29.72
Employee Service Share-Based Compensation, Aggregate Disclosures [Abstract]
Unrecognized compensation costs on nonvested awards  $ 17
Cash received from exercise of purchase rights  $ 139  $ 124  $ 109
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Commitments and Contingencies (Details) (USD  $)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Apr. 26, 2009
Legal Proceedings [Abstract]
Expiration date of subject patents Sep 24, 2010
Advance payment deposit  $ 994,000,000  $ 1,100,000,000
Noncontrolling Interest, Description two Indian companies each acquired 13% of each subsidiary
Charge recorded as a result of KFTC levied fine 230,000,000
Litigation Settlement, Patent License and Other Related Items [Abstract]
Broadcom settlement 891,000,000
Paid portion of Broadcom settlement 589,000,000
Last payment date of the remaining payments of the Broadcom settlement April 2013
Pretax charge of Broadcom settlement 783,000,000
Carrying value and fair value of the settlement liability 294,000,000
Loans Payable Related to India BWA Spectrum [Abstract]
Interest rate spread percentage 0.25%
Refinanced loans interest rate percentage 10.00%
Refinanced loans payment date December 2012
Lender prepayment demand period 12/15/2011
Amount of loan subject to prepayment demand 152,000,000
Carrying value of refinanced loans 994,000,000
Interest paid 94,000,000 15,000,000
Purchase Obligations [Abstract]
Unrecorded noncancelable obligations for fiscal 2012 1,900,000,000
Unrecorded noncancelable obligations for fiscal 2013 62,000,000
Unrecorded noncancelable obligations for fiscal 2014 40,000,000
Unrecorded noncancelable obligations for fiscal 2015 37,000,000
Unrecorded noncancelable obligations for fiscal 2016 27,000,000
Unrecorded noncancelable obligations thereafter 9,000,000
Inventory purchase commitments for fiscal 2012 1,400,000,000
Inventory purchase commitments for fiscal 2013 2,000,000
Leases [Abstract]
Low range of noncancelable operating lease terms less than one year
High range of noncancelable operating lease terms 35 years
Rental expense 87,000,000 85,000,000 80,000,000
Low range of initial capital lease terms 5
High range of initial capital lease terms 7
Maximum number of capital lease renewal options 5
Total capital lease asset expected to be written off due to restructuring plan at the end of the contractual lease term 149,000,000
Total capital lease obligation expected to be written off due to restructuring plan at the end of the contractual lease term  $ 170,000,000
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Commitments and Contingencies Capital and Operating Leases (Details) (USD  $)
In Millions
Sep. 25, 2011
Capital Leases, Future Minimum Payments Due [Abstract]
2012 - Capital leases  $ 12
2013 - Capital leases 12
2014 - Capital leases 13
2015 - Capital leases 13
2016 - Capital leases 14
Thereafter - Capital leases 331
Total minimum lease payments - Capital leases 395
Operating Leases, Future Minimum Payments Due [Abstract]
2012 - Operating leases 115
2013 - Operating leases 60
2014 - Operating leases 50
2015 - Operating leases 33
2016 - Operating leases 25
Thereafter - Operating leases 181
Total minimum lease payments - Operating leases 464
Total Capital and Operating Leases, Future Minimum Payments Due [Abstract]
2012 - Total 127
2013 - Total 72
2014 - Total 63
2015 - Total 46
2016 - Total 39
Thereafter - Total 512
Total minimum lease payments - Total 859
Deduct: Amounts representing interest - Capital leases 224
Present value of minimum lease payments - Capital leases 171
Deduct: Current portion of capital lease obligations 1
Long-term portion of capital lease obligations  $ 170
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Segment Information (Details) (USD  $)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Notes to Financial Statements [Abstract]
Number of aggregated divisions 4
Revenues, EBT and Total Assets for Reportable Segments [Line items]
FLO TV assets included in QSI's assets  $ 913,000,000  $ 1,300,000,000  $ 1,300,000,000
Investments in equity method investees included in QSI's assets 20,000,000 20,000,000 10,000,000
QMT included in reconciling items 806,000,000 384,000,000 389,000,000
Net book values of long-lived assets located outside of the United States 629,000,000 221,000,000 256,000,000
Net book values of long-lived assets located in the United States 1,800,000,000 2,200,000,000 2,100,000,000
Unallocated cost of equipment and services revenue resulting from acquisitions 143,000,000
Unallocated selling, general and administrative expenses resulting from acquisitions 59,000,000
Unallocated research and development expenses resulting from acquisitions  $ 6,000,000
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Segment Information EBT and Total Assets for Reportable Segments (Details) (USD  $)
In Millions
3 Months Ended 12 Months Ended
Sep. 25, 2011
Jun. 26, 2011
Mar. 27, 2011
Dec. 26, 2010
Sep. 26, 2010
Jun. 27, 2010
Mar. 28, 2010
Dec. 27, 2009
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Segment Reporting Information [Line Items]
Revenues  $ 4,117  $ 3,623  $ 3,870  $ 3,348  $ 2,952  $ 2,700  $ 2,661  $ 2,668  $ 14,957  $ 10,982  $ 10,387
EBT 5,687 4,493 2,403
Total assets 36,422 30,572 36,422 30,572 27,445
QCT [Member]
Segment Reporting Information [Line Items]
Revenues 8,859 6,695 6,135
EBT 2,056 1,693 1,441
Total assets 1,569 1,085 1,569 1,085 892
QTL [Member]
Segment Reporting Information [Line Items]
Revenues 5,422 3,659 3,605
EBT 4,753 3,020 3,068
Total assets 36 28 36 28 89
QWI [Member]
Segment Reporting Information [Line Items]
Revenues 656 628 641
EBT (152) 12 20
Total assets 136 129 136 129 142
QSI [Member]
Segment Reporting Information [Line Items]
Revenues 0 0 0
EBT (132) 7 (54)
Total assets 2,386 2,745 2,386 2,745 1,614
Reconciling Items [Member]
Segment Reporting Information [Line Items]
Revenues 20 0 6
EBT (838) (239) (2,072)
Total assets  $ 32,295  $ 26,585  $ 32,295  $ 26,585  $ 24,708
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Segment Information QWI Reportable Segment (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Revenues Aggregated into the QWI Reportable Segment [Line items]
Revenues aggregated into the QWI reportable segment  $ 656  $ 628  $ 641
QES [Member]
Revenues Aggregated into the QWI Reportable Segment [Line items]
Revenues aggregated into the QWI reportable segment 395 376 344
QIS [Member]
Revenues Aggregated into the QWI Reportable Segment [Line items]
Revenues aggregated into the QWI reportable segment 150 173 229
QGOV [Member]
Revenues Aggregated into the QWI Reportable Segment [Line items]
Revenues aggregated into the QWI reportable segment 100 74 66
Firethorn [Member]
Revenues Aggregated into the QWI Reportable Segment [Line items]
Revenues aggregated into the QWI reportable segment 11 7 3
Eliminations [Member]
Revenues Aggregated into the QWI Reportable Segment [Line items]
Revenues aggregated into the QWI reportable segment  $ 0  $ (2)  $ (1)
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Segment Information Other Reconciling Items (Details) (USD  $)
In Millions
3 Months Ended 12 Months Ended
Sep. 25, 2011
Jun. 26, 2011
Mar. 27, 2011
Dec. 26, 2010
Sep. 26, 2010
Jun. 27, 2010
Mar. 28, 2010
Dec. 27, 2009
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Segment Reporting Information [Line Items]
Revenues  $ 4,117  $ 3,623  $ 3,870  $ 3,348  $ 2,952  $ 2,700  $ 2,661  $ 2,668  $ 14,957  $ 10,982  $ 10,387
EBT 5,687 4,493 2,403
Elmination of intersegment revenues [Member]
Segment Reporting Information [Line Items]
Revenues (3) (10) (15)
Other Nonreportable Segments [Member]
Segment Reporting Information [Line Items]
Revenues 23 10 21
Unallocated cost of equipment and services revenue [Member]
Segment Reporting Information [Line Items]
EBT (210) (42) (40)
Unallocated research and development expenses [Member]
Segment Reporting Information [Line Items]
EBT (553) (401) (372)
Unallocated selling, general and administrative expenses [Member]
Segment Reporting Information [Line Items]
EBT (506) (336) (293)
Unallocated other operating expenses [Member]
Segment Reporting Information [Line Items]
EBT 0 0 (1,013)
Unallocated investment income (loss),nNet [Member]
Segment Reporting Information [Line Items]
EBT 756 767 (141)
Other nonreportable segments [Member]
Segment Reporting Information [Line Items]
EBT (324) (224) (206)
Intersegment eliminations [Member]
Segment Reporting Information [Line Items]
EBT (1) (3) (7)
Significant reconciling items [Member]
Segment Reporting Information [Line Items]
Revenues 20 0 6
EBT  $ (838)  $ (239)  $ (2,072)
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Segment Information Specified Items Included in Segment EBT (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Revenue from External Customer [Line Items]
Interest expense  $ (114)  $ (43)  $ (13)
QCT [Member]
Revenue from External Customer [Line Items]
Revenue from external customers 8,856 6,686 6,125
Intersegment revenues 3 9 10
Interest income 1 1 4
Interest expense 1 1 0
QTL [Member]
Revenue from External Customer [Line Items]
Revenue from external customers 5,422 3,659 3,603
Intersegment revenues 0 0 2
Interest income 1 2 12
Interest expense 0 0 1
QWI [Member]
Revenue from External Customer [Line Items]
Revenue from external customers 656 628 638
Intersegment revenues 0 0 3
Interest income 0 2 1
Interest expense 0 (4) 1
QSI [Member]
Revenue from External Customer [Line Items]
Revenue from external customers 0 0 0
Intersegment revenues 0 0 0
Interest income 20 8 3
Interest expense  $ 99  $ 27  $ 0
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Segment Information Sales by Geographic Area (Details) (USD  $)
In Millions
3 Months Ended 12 Months Ended
Sep. 25, 2011
Jun. 26, 2011
Mar. 27, 2011
Dec. 26, 2010
Sep. 26, 2010
Jun. 27, 2010
Mar. 28, 2010
Dec. 27, 2009
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues  $ 4,117  $ 3,623  $ 3,870  $ 3,348  $ 2,952  $ 2,700  $ 2,661  $ 2,668  $ 14,957  $ 10,982  $ 10,387
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales information by geographic area - foreign country 4,744 3,194 2,378
South Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales information by geographic area - foreign country 2,887 2,913 3,655
Taiwan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales information by geographic area - foreign country 2,550 1,360 831
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales information by geographic area - foreign country 1,165 1,018 1,098
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales information by geographic area - domestic 897 555 603
Other foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales information by geographic area - foreign country  $ 2,714  $ 1,942  $ 1,822
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Discontinued Operations (Details) (USD  $)
3 Months Ended 12 Months Ended
Sep. 25, 2011
Jun. 26, 2011
Mar. 27, 2011
Dec. 26, 2010
Sep. 26, 2010
Jun. 27, 2010
Mar. 28, 2010
Dec. 27, 2009
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Disposal Group, Not Discontinued Operation, Income Statement Disclosures [Abstract]
Revenues  $ 5,000,000  $ 9,000,000  $ 29,000,000
Loss from discontinued operations (507,000,000) (459,000,000) (327,000,000)
Income tax benefit 194,000,000 186,000,000 127,000,000
Discontinued operations, net of income taxes (6,000,000) 44,000,000 (269,000,000) (82,000,000) (73,000,000) (65,000,000) (78,000,000) (57,000,000) (313,000,000) (273,000,000) (200,000,000)
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract]
Current assets 10,000,000 10,000,000
Property, plant and equipment, net 156,000,000 156,000,000
Assets held for sale 746,000,000 0 746,000,000 0
Other assets 1,000,000 1,000,000
Total assets 913,000,000 913,000,000
Trade accounts payable 2,000,000 2,000,000
Payroll and other benefits related liabilities 2,000,000 2,000,000
Other current liabilities 75,000,000 75,000,000
Other noncurrent liabilities 183,000,000 183,000,000
Total liabilities 262,000,000 262,000,000
Date announced sale of spectrum licenses Dec 20, 2010
Sale price of spectrum licenses 1,900,000,000 1,900,000,000
Carrying value of spectrum held for sale  $ 746,000,000  $ 0  $ 746,000,000  $ 0
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Discontinued Operations by Type (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Restructuring and Related Cost [Line Items]
Total net restructuring-related costs recorded  $ 300
Total net restructuring charges 58
Maximum future restructuring and restructuring-related charges 25
Minimum future cash expenditures 75
Maximum future cash expenditures 115
Restructuring Reserve [Roll Forward]
Beginning balance of restructuring accrual 0
Initial costs 79
Adjustments to costs (8)
Cash payments (28)
Ending balance of restructuring accrual 43
Contract Termination Costs [Member]
Restructuring and Related Cost [Line Items]
Total net restructuring charges 48
Restructuring Reserve [Roll Forward]
Beginning balance of restructuring accrual 0
Initial costs 63
Adjustments to costs (2)
Cash payments (22)
Ending balance of restructuring accrual 39
Other Costs [Member]
Restructuring Reserve [Roll Forward]
Beginning balance of restructuring accrual 0
Initial costs 16
Adjustments to costs (6)
Cash payments (6)
Ending balance of restructuring accrual  $ 4
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Acquisitions (Details) (USD  $)
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Acquisition [Abstract]
Effective date of Atheros acquisition 5/24/2011
Total cash consideration, net of cash acquired  $ 3,100,000,000
Cash acquired from Atheros acquisition 233,000,000
Assumed equity 106,000,000
Business Acquisition, Purchase Price Allocation [Abstract]
Acquisition cost 23,000,000
Number of other businesses acquired 9 6 1
Cash consideration paid for other businesses acquired 466,000,000 50,000,000 17,000,000
Acquired technology-based intangible assets 150,000,000 32,000,000
Technology-based intangible asset, weighted average useful life 5 11
Goodwill recognized from other businesses acquired, expected to be deductible for tax purposes  $ 234,000,000
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Acquisitions Business Acquisition (Details) (USD  $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Business Acquisition, Purchase Price Allocation [Abstract]
Weighted-average useful life of intangible assets acquired (in years) 5 11
In-process research and development estimated completion period 3
Atheros Communications, Inc. [Member]
Acquisitions [Abstract]
Current Assets  $ 925
In-process research and development (IPR&D) 150
Goodwill 1,777
Other assets 77
Total assets 3,785
Liabilities (316)
Total 3,469
Business Acquisition, Purchase Price Allocation [Abstract]
Number of In-process research and development projects 26
In-process research and development estimated costs to complete projects 36
Low range of In-process research and development useful life (in years) 2
High range of In-process research and development useful life (in years) 6
Technology-based [Member]
Acquisitions [Abstract]
Amortizable intangible assets 692
Business Acquisition, Purchase Price Allocation [Abstract]
Weighted-average useful life of intangible assets acquired (in years) 4
Marketing-related [Member]
Acquisitions [Abstract]
Amortizable intangible assets 50
Business Acquisition, Purchase Price Allocation [Abstract]
Weighted-average useful life of intangible assets acquired (in years) 6
Customer-related [Member]
Acquisitions [Abstract]
Amortizable intangible assets  $ 114
Business Acquisition, Purchase Price Allocation [Abstract]
Weighted-average useful life of intangible assets acquired (in years) 3
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Acquisitions Business Acquisition Pro Forma (Details) (USD  $)
In Millions
9 Months Ended 12 Months Ended
Jun. 27, 2010
Sep. 25, 2011
Business Acquisition [Line Items]
Revenues  $ 11,867  $ 15,583
Net income attributable to Qualcomm  $ 3,013  $ 4,304
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Acquisitions Business Acquisition, Reportable Segments (Details) (USD  $)
In Millions
Sep. 25, 2011
Business Acquisition [Line Items]
Business acquisition purchase price allocation goodwill amount other than Atheros  $ 276
QCT [Member]
Business Acquisition [Line Items]
Business acquisition purchase price allocation goodwill amount other than Atheros 227
QWI [Member]
Business Acquisition [Line Items]
Business acquisition purchase price allocation goodwill amount other than Atheros 35
QTL [Member]
Business Acquisition [Line Items]
Business acquisition purchase price allocation goodwill amount other than Atheros 5
QSI [Member]
Business Acquisition [Line Items]
Business acquisition purchase price allocation goodwill amount other than Atheros 1
Other Nonreportable Segments [Member]
Business Acquisition [Line Items]
Business acquisition purchase price allocation goodwill amount other than Atheros  $ 8
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Summarized Quarterly Data (Unaudited) (Details) (USD  $)
In Millions, except Per Share data
3 Months Ended 12 Months Ended
Sep. 25, 2011
Jun. 26, 2011
Mar. 27, 2011
Dec. 26, 2010
Sep. 26, 2010
Jun. 27, 2010
Mar. 28, 2010
Dec. 27, 2009
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Summarized Quarterly Data (Unaudited) [Abstract]
Revenues  $ 4,117  $ 3,623  $ 3,870  $ 3,348  $ 2,952  $ 2,700  $ 2,661  $ 2,668  $ 14,957  $ 10,982  $ 10,387
Operating income (loss) 1,238 1,113 1,430 1,247 958 893 896 980 5,026 3,727 2,542
Income from continuing operations 1,055 985 1,264 1,252 938 832 852 898 4,555 3,520 1,792
Discontinued operations, net of tax (6) 44 (269) (82) (73) (65) (78) (57) (313) (273) (200)
Net income attributable to Qualcomm  $ 1,056  $ 1,035  $ 999  $ 1,170  $ 865  $ 767  $ 774  $ 841  $ 4,260  $ 3,247  $ 1,592
Basic earnings (loss) per share attributable to Qualcomm:
Continuing operations  $ 0.63  $ 0.59  $ 0.76  $ 0.77  $ 0.59  $ 0.51  $ 0.52  $ 0.53  $ 2.76  $ 2.15  $ 1.08
Discontinued operations  $ 0  $ 0.03  $ (0.16)  $ (0.05)  $ (0.05)  $ (0.04)  $ (0.05)  $ (0.03)  $ 0.19  $ 0.17  $ 0.12
Net income  $ 0.63  $ 0.62  $ 0.6  $ 0.72  $ 0.54  $ 0.47  $ 0.47  $ 0.5  $ 2.57  $ 1.98  $ 0.96
Diluted earnings (loss) per share attributable to Qualcomm:
Continuing operations  $ 0.62  $ 0.58  $ 0.75  $ 0.76  $ 0.58  $ 0.51  $ 0.51  $ 0.53  $ 2.7  $ 2.12  $ 1.07
Discontinued operations  $ 0  $ 0.03  $ (0.16)  $ (0.05)  $ (0.05)  $ (0.04)  $ (0.05)  $ (0.03)  $ 0.18  $ 0.16  $ 0.12
Net income  $ 0.62  $ 0.61  $ 0.59  $ 0.71  $ 0.53  $ 0.47  $ 0.46  $ 0.5  $ 2.52  $ 1.96  $ 0.95
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Valuation and Qualifying Accounts (Details) (USD  $)
In Millions
12 Months Ended
Sep. 25, 2011
Sep. 26, 2010
Sep. 27, 2009
Changes in Valuation Allowances [Roll Forward]
Balance at beginning of period  $ (54)  $ (87)  $ (190)
(Charged) Credited to costs and expenses (36) 33 (219)
Deductions 4 3 44
Other (17) (3) 278
Balance at end of period (103) (54) (87)
Valuation and Qualifying Accounts [Abstract]
Adjustment to allowances and reserves from an acquisition 12
Adjustment charged to other comprehensive income (loss) 5
Allowances - Trade Receivables [Member]
Changes in Valuation Allowances [Roll Forward]
Balance at beginning of period (3) (4) (38)
(Charged) Credited to costs and expenses 0 (1) (4)
Deductions 1 2 38
Other 0 0 0
Balance at end of period (2) (3) (4)
Allowances - Notes Receivable [Member]
Changes in Valuation Allowances [Roll Forward]
Balance at beginning of period (3) (1) (3)
(Charged) Credited to costs and expenses 0 (2) (4)
Deductions 0 0 6
Other 0 0 0
Balance at end of period (3) (3) (1)
Allowances - Investment Receivables [Member]
Changes in Valuation Allowances [Roll Forward]
Balance at beginning of period (9) (10) 0
(Charged) Credited to costs and expenses 6 0 (10)
Deductions 3 1 0
Other 0 0 0
Balance at end of period 0 (9) (10)
Valuation Allowance on Deferred Tax Assets [Member]
Changes in Valuation Allowances [Roll Forward]
Balance at beginning of period (39) (72) (149)
(Charged) Credited to costs and expenses (42) 36 (201)
Deductions 0 0 0
Other (17) (3) 278
Balance at end of period  $ (98)  $ (39)  $ (72)
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