MIME-Version: 1.0 X-Document-Type: Workbook Content-Type: multipart/related; boundary="----=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b" This document is a Single File Web Page, also known as a Web Archive file. If you are seeing this message, your browser or editor doesn't support Web Archive files. Please download a browser that supports Web Archive, such as Microsoft Internet Explorer. ------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Workbook.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"

This page should be opened with Microsoft Excel XP or newer.

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet01.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Document Information Line Items Document
3 Months Ended
Mar. 25, 2012
Apr. 16, 2012
Document Information [Line Items]
Entity Registrant Name QUALCOMM INC/DE
Entity Central Index Key 0000804328
Current Fiscal Year End Date --09-30
Entity Filer Category Large Accelerated Filer
Document Type 10-Q
Document Period End Date Mar 25, 2012
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q2
Amendment Flag false
Entity Common Stock, Shares Outstanding 1,714,274,812
Entity Well-known Seasoned Issuer Yes
Entity Voluntary Filers No
Entity Current Reporting Status Yes
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet02.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Mar. 25, 2012
Sep. 25, 2011
Current assets:
Cash and cash equivalents $ 5,998 $ 5,462
Marketable securities 9,081 6,190
Accounts receivable, net 1,189 993
Inventories 781 765
Deferred tax assets 485 537
Other current assets 327 346
Total current assets 17,861 14,293
Marketable securities 11,489 9,261
Deferred tax assets 1,318 1,703
Assets held for sale 0 746
Property, plant and equipment, net 2,760 2,414
Goodwill 3,607 3,432
Other intangible assets, net 3,002 3,099
Other assets 1,494 1,474
Total assets 41,531 36,422
Current liabilities:
Trade accounts payable 1,250 969
Payroll and other benefits related liabilities 572 644
Unearned revenues 558 610
Loans payable 1,039 994
Income taxes payable 179 18
Other current liabilities 1,580 2,054
Total current liabilities 5,178 5,289
Unearned revenues 3,894 3,541
Other liabilities 589 620
Total liabilities 9,661 9,450
Commitments and contingencies (Note 6)      
Stockholders' equity:
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding 0 0
Common stock, $0.0001 par value; 6,000 shares authorized; 1,711 and 1,681 shares issued and outstanding, respectively 0 0
Paid-in capital 11,983 10,394
Retained earnings 19,090 16,204
Accumulated other comprehensive income 809 353
Total Qualcomm stockholders' equity 31,882 26,951
Noncontrolling interests (12) 21
Total stockholders' equity 31,870 26,972
Total liabilities and stockholders' equity $ 41,531 $ 36,422
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet03.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONDENSED CONSOLIDATED BALANCE SHEETS Parentheticals (USD $)
In Millions, except Per Share data, unless otherwise specified
Mar. 25, 2012
Sep. 25, 2011
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 8 8
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 6,000 6,000
Common stock, shares issued 1,711 1,681
Common stock, shares outstanding 1,711 1,681
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet04.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Revenues:
Equipment and services $ 3,137 $ 2,039 [1] $ 6,305 $ 4,252 [1]
Licensing 1,806 1,831 [1] 3,320 2,965 [1]
Total revenues 4,943 3,870 [1] 9,625 7,217 [1]
Operating expenses:
Cost of equipment and services revenues 1,783 1,059 [1] 3,537 2,103 [1]
Research and development 954 738 [1] 1,827 1,386 [1]
Selling, general and administrative 595 529 [1] 1,098 938 [1]
Other 97 114 [1] 97 114 [1]
Total operating expenses 3,429 2,440 [1] 6,559 4,541 [1]
Operating income 1,514 1,430 [1] 3,066 2,676 [1]
Investment income, net (Note 3) 220 189 [1] 389 412 [1]
Income from continuing operations before income taxes 1,734 1,619 [1] 3,455 3,088 [1]
Income tax expense (296) (355) [1] (617) (573) [1]
Income from continuing operations 1,438 1,264 [1] 2,838 2,515 [1]
Discontinued operations, net of income taxes (Note 8) 761 (269) [1] 756 (351) [1]
Net income 2,199 995 [1] 3,594 [2] 2,164 [1]
Net loss attributable to noncontrolling interests 31 4 [1] 37 4 [1]
Net income attributable to Qualcomm $ 2,230 $ 999 [1] $ 3,631 $ 2,168 [1]
Basic earnings (loss) per share attributable to Qualcomm:
Continuing operations $ 0.86 $ 0.76 [1] $ 1.7 $ 1.53 [1]
Discontinued operations $ 0.45 $ (0.16) [1] $ 0.45 $ (0.21) [1]
Net income $ 1.31 $ 0.6 [1] $ 2.15 $ 1.32 [1]
Diluted earnings (loss) per share attributable to Qualcomm:
Continuing operations $ 0.84 $ 0.75 [1] $ 1.66 $ 1.51 [1]
Discontinued operations $ 0.44 $ (0.16) [1] $ 0.44 $ (0.21) [1]
Net income $ 1.28 $ 0.59 [1] $ 2.1 $ 1.3 [1]
Shares used in per share calculations:
Basic 1,698 1,654 [1] 1,691 1,639 [1]
Diluted 1,743 1,689 [1] 1,732 1,669 [1]
Dividends per share announced $ 0.215 $ 0.19 [1] $ 0.43 $ 0.38 [1]
[1] As adjusted for discontinued operations (Note 8)
[2] Discontinued operations, net of income taxes, (Note 8) was attributable to Qualcomm.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet05.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Operating Activities:
Net income $ 3,594 [1] $ 2,164 [2]
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 419 635
Gain on sale of spectrum (1,179) 0
Goodwill impairment 16 114
Revenues related to non-monetary exchanges (61) (62)
Income tax provision in excess of (less than) income tax payments 500 (1,334)
Non-cash portion of share-based compensation expense 488 375
Incremental tax benefit from stock options exercised (98) (132)
Net realized gains on marketable securities and other investments (144) (231)
Gains on derivative instruments (74) 0
Other items, net 46 35
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net (195) 23
Inventories (21) (81)
Other assets (10) (19)
Trade accounts payable 287 (145)
Payroll, benefits and other liabilities (261) 269
Unearned revenues 360 205
Net cash provided by operating activities 3,667 1,816
Investing Activities:
Capital expenditures (635) (181)
Purchases of available-for-sale securities (7,036) (5,845)
Proceeds from sale of available-for-sale securities 3,543 5,467
Purchases of trading securities (1,639) 0
Proceeds from sale of trading securities 651 0
Proceeds from sale of spectrum 1,925 0
Acquisitions and other investments, net of cash acquired (329) (89)
Other items, net (53) 23
Net cash used by investing activities (3,573) (625)
Financing Activities:
Borrowing under loans payable 232 1,260
Repayment of loans payable (151) (1,260)
Proceeds from issuance of common stock 1,135 2,024
Incremental tax benefit from stock options exercised 98 132
Repurchase and retirement of common stock (99) 0
Dividends paid (729) (625)
Other items, net (39) 88
Net cash provided by financing activities 447 1,619
Effect of exchange rate changes on cash (5) 10
Net increase in cash and cash equivalents 536 2,820
Cash and cash equivalents at beginning of period 5,462 3,547
Cash and cash equivalents at end of period $ 5,998 $ 6,367
[1] Discontinued operations, net of income taxes, (Note 8) was attributable to Qualcomm.
[2] As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet06.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation
Financial Statement Preparation. These condensed consolidated financial statements have been prepared by QUALCOMM Incorporated (collectively with its subsidiaries, the Company or Qualcomm) in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the interim data includes all normal recurring adjustments necessary for a fair statement of the results for the interim periods. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2011. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. The three-month and six-month periods ended both March 25, 2012 and March 27, 2011 included 13 weeks and 26 weeks, respectively.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Certain prior period amounts have been adjusted to reflect the presentation of the FLO TV business as discontinued operations (Note 8).
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 the three months and six months ended March 25, 2012 were 44,100,000 and 40,576,000, respectively. The incremental dilutive common share equivalents, calculated using the treasury stock method, for the three months and six months ended March 27, 2011 were 34,955,000 and 30,231,000, respectively.
Employee stock options to purchase approximately 504,000 and 2,488,000 shares of common stock during the three months and six months ended March 25, 2012, respectively, and employee stock options to purchase approximately 5,881,000 and 33,336,000 shares of common stock during the three months and six months ended March 27, 2011, respectively, were outstanding but not included in the calculation of diluted earnings per common share because the effect would be anti-dilutive. Put options outstanding during the three months and six months ended March 25, 2012 to purchase 11,800,000 shares of common stock, respectively, 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 5). In addition, 733,000 and 704,000 shares of other common stock equivalents outstanding during the three months and six months ended March 25, 2012, respectively, and 78,000 and 60,000 shares of other common stock equivalents outstanding during the three months and six months ended March 27, 2011, respectively, were not included in the computation of diluted earnings per common share because either the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period.
Comprehensive Income. Total comprehensive income attributable to Qualcomm consisted of the following (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27,
2011
 
March 25,
2012
 
March 27,
2011
Net income
$
2,199

 
$
995

 
$
3,594

 
$
2,164

Other comprehensive income:
 
 
 
 
 
 
 
Foreign currency translation
16

 
8

 
(12
)
 
13

Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes
3

 
(6
)
 
4

 
(10
)
Net unrealized gains on other available-for-sale securities and derivative instruments, net of income taxes
320

 
90

 
495

 
221

Reclassification of net realized gains on available-for-sale securities and derivative instruments included in net income, net of income taxes
(40
)
 
(49
)
 
(57
)
 
(125
)
Reclassification of other-than-temporary losses on available-for-sale securities included in net income, net of income taxes
16

 
2

 
25

 
6

Total other comprehensive income
315

 
45

 
455

 
105

Total comprehensive income
2,514

 
1,040

 
4,049

 
2,269

Comprehensive loss attributable to noncontrolling interests
30

 
4

 
38

 
4

Comprehensive income attributable to Qualcomm
$
2,544

 
$
1,044

 
$
4,087

 
$
2,273


Components of accumulated other comprehensive income in Qualcomm stockholders’ equity consisted of the following (in millions):
 
March 25,
2012
 
September 25,
2011
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes
$
29

 
$
27

Net unrealized gains on other available-for-sale securities, net of income taxes
866

 
427

Net unrealized gains (losses) on derivative instruments, net of income taxes
11

 
(15
)
Foreign currency translation
(97
)
 
(86
)
 
$
809

 
$
353


At March 25, 2012 and September 25, 2011, accumulated other comprehensive income included $10 million and $13 million, respectively, of other-than-temporary losses on certain available-for-sale debt securities related to factors other than credit, net of income taxes.
Share-Based Compensation. Total estimated share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27, 2011*
 
March 25,
2012
 
March 27, 2011*
Cost of equipment and services revenues
$
17

 
$
17

 
$
36

 
$
30

Research and development
126

 
97

 
253

 
182

Selling, general and administrative
97

 
85

 
198

 
155

Continuing operations
240

 
199

 
487

 
367

Related income tax benefit
(56
)
 
(55
)
 
(109
)
 
(109
)
Continuing operations, net of income taxes
184

 
144

 
378

 
258

Discontinued operations

 
3

 

 
6

Related income tax benefit

 
(1
)
 

 
(2
)
Discontinued operations, net of income taxes

 
2

 

 
4

 
$
184

 
$
146

 
$
378

 
$
262

*As adjusted for discontinued operations (Note 8)
The Company recorded $82 million and $38 million in share-based compensation expense during the six months ended March 25, 2012 and March 27, 2011, respectively, related to share-based awards granted during those periods. In addition, for the six months ended March 25, 2012 and March 27, 2011, $98 million and $132 million, respectively, were reclassified to reduce net cash provided by operating activities with an offsetting increase in net cash provided by financing activities to reflect the incremental tax benefit from stock options exercised in those periods.
At March 25, 2012, total unrecognized compensation costs related to non-vested stock options and restricted stock units granted prior to that date were $441 million and $1.0 billion, respectively, which are expected to be recognized over weighted-average periods of 1.6 years and 2.1 years, respectively. Net share-based awards, after forfeitures and cancellations, granted during the six months ended March 25, 2012 and March 27, 2011 represented 0.5% and 0.3%, respectively, of outstanding shares as of the beginning of each fiscal period. Total share-based awards granted during the six months ended March 25, 2012 and March 27, 2011 represented 0.6% and 0.5%, respectively, of outstanding shares as of the end of each fiscal period.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet07.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Composition of Certain Financial Statement Items
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 2 - Composition of Certain Financial Statement Items
Note 2 — Composition of Certain Financial Statement Items
Accounts Receivable, Net.
 
March 25,
2012
 
September 25,
2011
 
(In millions)
Trade, net of allowances for doubtful accounts of $2 and $2, respectively
$
1,153

 
$
951

Long-term contracts
30

 
32

Other
6

 
10

 
$
1,189

 
$
993


Inventories.
 
March 25,
2012
 
September 25,
2011
 
(In millions)
Raw materials
$
19

 
$
15

Work-in-process
365

 
384

Finished goods
397

 
366

 
$
781

 
$
765

 
Other Current Liabilities.
 
March 25,
2012
 
September 25,
2011
 
(In millions)
Customer incentives and other customer-related liabilities
$
1,111

 
$
1,180

Current portion of payable to Broadcom (Note 6)
170

 
170

Payable for unsettled securities trades
39

 
298

Other
260

 
406

 
$
1,580

 
$
2,054

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet08.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Investment Income, Net
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 3 - Investment Income, Net
Note 3 — Investment Income, Net
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27, 2011*
 
March 25,
2012
 
March 27, 2011*
 
(In millions)
Interest and dividend income
$
146

 
$
126

 
$
275

 
$
256

Interest expense
(29
)
 
(30
)
 
(57
)
 
(54
)
Net realized gains on marketable securities
90

 
102

 
127

 
230

Net realized gains on other investments
11

 

 
17

 
1

Impairment losses on marketable securities
(23
)
 
(4
)
 
(37
)
 
(11
)
Impairment losses on other investments
(1
)
 
(1
)
 
(6
)
 
(5
)
Gains on derivative instruments
28

 

 
74

 

Equity in losses of investees
(2
)
 
(4
)
 
(4
)
 
(5
)
 
$
220

 
$
189

 
$
389

 
$
412


*As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet09.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Income Taxes
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 4 - Income Taxes
Note 4 — Income Taxes
The Company estimates its annual effective income tax rate for continuing operations to be approximately 18% for fiscal 2012, compared to the 20% effective income tax rate for fiscal 2011. The United States federal research and development tax credit expired on December 31, 2011. Therefore, the annual effective rate for fiscal 2012 only reflects the federal research and development credit generated through December 31, 2011. The annual effective rate for fiscal 2012 also reflects a lower state tax rate as a result of California tax legislation previously enacted.
The estimated annual effective tax rate for continuing operations for fiscal 2012 of 18% is less than the United States federal statutory rate primarily due to benefits of approximately 17% related to foreign earnings taxed at less than the United States federal rate. The prior fiscal year rate was lower than the United States federal statutory rate primarily due to benefits related to foreign earnings taxed at less than the United States federal rate, partially offset by state taxes and tax expense related to the valuation of deferred tax assets to reflect changes in California law.
During the third quarter of fiscal 2012, the Company established Qualcomm CDMA Technologies’ (QCT) non-United States headquarters in Singapore. The Company has obtained tax incentives in Singapore that result in a tax exemption for the first five years provided that the Company meets specified employment and investment criteria in Singapore. The location of QCT’s headquarters in Singapore will not result in any change in foreign tax during this period, as compared to the tax that would be owed under the previous structure of QCT’s non-United States operations. The Company’s Singapore tax rate will increase in fiscal 2017 and again in fiscal 2027 as a result of expiration of these incentives. Had the Company located QCT’s non-United States headquarters in Singapore without the tax incentive, the Company’s expected Singapore tax in fiscal 2012 would be higher by approximately $265 million.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet10.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' Equity
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 5 - Stockholders' Equity
Note 5 — Stockholders’ Equity
Changes in stockholders’ equity for the six months ended March 25, 2012 were as follows (in millions):
 
Qualcomm Stockholders’ Equity
 
Noncontrolling Interests
 
Total Stockholders’ Equity
Balance at September 25, 2011
$
26,951

 
$
21

 
$
26,972

Net income (loss) (1)
3,631

 
(37
)
 
3,594

Other comprehensive income (loss)
456

 
(1
)
 
455

Common stock issued under employee benefit plans and the related tax benefits, net of shares withheld for tax
1,189

 

 
1,189

Share-based compensation
499

 

 
499

Dividends
(745
)
 

 
(745
)
Stock repurchases
(99
)
 

 
(99
)
Other

 
5

 
5

Balance at March 25, 2012
$
31,882

 
$
(12
)
 
$
31,870


(1) Discontinued operations, net of income taxes, (Note 8) was attributable to Qualcomm.
Stock Repurchase Program. During the six months ended March 25, 2012, the Company repurchased and retired 2,046,000 shares of the Company’s common stock for $99 million, before commissions. The Company did not repurchase any shares during the six months ended March 27, 2011. On March 6, 2012, the Company announced that it had been authorized to repurchase up to $4.0 billion of the Company’s common stock. The stock repurchase program has no expiration date. The $4.0 billion stock repurchase program replaced a $3.0 billion stock repurchase program, of which $948 million remained authorized for repurchase, net of put options outstanding. At March 25, 2012, approximately $3.5 billion remained available for repurchase under the Company’s stock repurchase program, net of put options outstanding.
In connection with the Company’s stock repurchase program, the Company had three outstanding put options at March 25, 2012, which gave holders the right 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 fair values of the put options of $3 million at March 25, 2012 were recorded in other current liabilities. During the three months and six months ended March 25, 2012, the Company recognized gains of $32 million and $77 million, respectively, in net investment income due to a decrease in the fair value of the put options. No put options were outstanding during the three months and six months ended March 27, 2011.
Dividends. On March 6, 2012, the Company announced an increase in its quarterly cash dividend per share of common stock from $0.215 to $0.25, which is effective for dividends payable after March 23, 2012. On April 3, 2012, the Company announced a cash dividend of $0.25 per share on the Company’s common stock, payable on June 20, 2012 to stockholders of record as of June 1, 2012. During the six months ended March 25, 2012 and March 27, 2011, dividends charged to retained earnings were as follows (in millions, except per share data):
 
2012
 
2011
 
Per Share
 
Total
 
Per Share
 
Total
First Quarter
$
0.215

 
$
368

 
$
0.190

 
$
314

Second Quarter
0.215

 
377

 
0.190

 
319

 
$
0.430

 
$
745

 
$
0.380

 
$
633



------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet11.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Commitments and Contingencies
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 6 - Commitments and Contingencies
Note 6 — 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 was 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. The appeals court affirmed the ITC’s orders, and on November 28, 2011, the U.S. Supreme Court denied the Company’s petition for review. On January 18, 2012, pursuant to the parties’ stipulation, the district court in the Eastern District of Texas lifted the stay and ordered that the case be moved to the United States District Court for the Northern District of California. On March 1, 2012, that court consolidated the case with an earlier-filed lawsuit filed by Tessera against multiple parties, including some of the Company’s semiconductor chip package suppliers. Trial is scheduled for April 7, 2014. Tessera may continue to seek alleged past damages in the district court, but it cannot obtain 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. MicroUnity currently asserts infringement of a total of 13 patents against the Company’s Snapdragon products, and it seeks unspecified damages and other relief. The court consolidated the actions in May 2011. Trial is scheduled for June 3, 2013.
Broadcom Corporation et al. v. Commonwealth Scientific and Industrial Research Organisation (CSIRO): On November 10, 2009, Broadcom and Atheros Communications, Inc. (Atheros), which was acquired by the Company in May 2011 and renamed Qualcomm Atheros, Inc. (Qualcomm Atheros), 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 and 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 by Atheros’ 802.11/a/g/n products. A claim construction hearing was held on October 4, 2011, and trial was scheduled for April 2, 2012. On March 24, 2012, Qualcomm Atheros and CSIRO entered into a binding Memorandum of Understanding (MOU) pursuant to which Qualcomm Atheros and CSIRO will dismiss without prejudice all claims against each other, and Qualcomm Atheros and CSIRO will enter into a license agreement for the ’069 Patent and corresponding patents. The MOU also provides that Qualcomm Atheros pay an amount to CSIRO that was not material to the Company’s financial statements. Upon the execution of the license agreement, the parties will dismiss with prejudice all claims against each other.
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 alleging that certain of Atheros’ WiFi products infringe United States patent numbers 5,131,006, 5,151,920, 5,422,887, 5,706,428, 6,563,786 and 6,992,972. MOSAID seeks unspecified damages and other relief. The case is early in the discovery phase. 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 $959 million and $994 million at March 25, 2012 and September 25, 2011, respectively. In addition, the Company created four wholly-owned subsidiaries in India. On August 9, 2010, each subsidiary filed an application to obtain a license to operate a wireless network on this spectrum in its respective region. Thereafter, two Indian companies each acquired 13% of each subsidiary. On September 21, 2011, the Company received a letter from the Government of India’s Department of Telecommunications (DoT) notifying the Company that its applications had been rejected based on the DoT’s 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’s rejection. Thereafter, various actions related to the petition ensued before the TDSAT. On October 10, 2011, the DoT offered to issue a license that includes the four regions for which the Company won spectrum to one of the Company’s subsidiaries. On October 18, 2011, the Company agreed to the DoT’s offer and stated that, upon issuance of the license, the Company’s three other subsidiaries would merge into the subsidiary that had been granted the license. However, at a December 2, 2011 hearing before the TDSAT, the DoT stated that it had served a provisional assessment on one of the subsidiaries’ Indian shareholders, Tulip Telecom Ltd. (Tulip), for unpaid dues, including interest and penalties, and that the DoT could not issue a license to the Company’s subsidiary until the claimed dues were paid. On January 22, 2012, the Company filed an application requesting that the TDSAT order the DoT to issue the license. In the application, the Company argued that the provisional assessment was not a legal basis for the DoT to delay issuing the license. On February 10, 2012, the DoT filed its reply to the Company’s application reiterating that the DoT could not issue a license to the Company’s subsidiary until all outstanding dues were paid, together with an additional provisional assessment for prior years, increasing the DoT’s total claim for dues owed by Tulip to approximately $81 million. On February 22, 2012, the Company offered to have the Company’s subsidiary pay the dues allegedly owed by Tulip, without prejudice to the right of Tulip to contest the claim, and provided that any amount ultimately found not to be due would be refunded by the DoT. On February 24, 2012, the TDSAT ordered that (i) the Company’s subsidiary pay the dues allegedly owed by Tulip to the DoT without prejudice to the right of Tulip to contest the claim and provided that any sum ultimately found not to be due would be refunded by the DoT, without interest, within four weeks of the date of completion of the assessment; (ii) the DoT issue a license to the subsidiary within one week after payment was made; (iii) thereafter, the subsidiary file its application for assignment of the spectrum; and (iv) the DoT consider and dispose of the spectrum application as expeditiously as possible. Accordingly, on March 7, 2012, the Company’s subsidiary paid $81 million to the DoT, and on March 15, 2012, the DoT issued a license to the subsidiary. On March 21, 2012, the Company’s subsidiary filed an application for assignment of the spectrum, which application remains pending before the DoT. Tulip has agreed to repay the subsidiary for any amounts paid by the subsidiary that are ultimately found or agreed by Tulip to be due to the DoT. The $81 million payment was recorded as a charge to other operating expenses in the second quarter of fiscal 2012.
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. On January 16, 2012, the Company provided additional documents and information in response to that request. 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.
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 held hearings on 12 different dates, with an additional hearing day scheduled on May 11, 2012 and additional hearing days yet to be scheduled.
Securities and Exchange Commission (SEC) Formal Order of Private Investigation and Department of Justice (DOJ) Investigation: On September 8, 2010, the Company was notified by the SEC’s 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 of the allegations with the assistance of independent counsel and independent forensic accountants. This internal review into the whistleblower’s allegations and related accounting practices did not identify any errors in the Company’s financial statements. On January 27, 2012, the Company learned that the U.S. Attorney’s Office for the Southern District of California/DOJ has begun a preliminary investigation regarding the Company’s compliance with the Foreign Corrupt Practices Act (FCPA), a topic about which the SEC is also inquiring. The Company believes that it is in compliance with the requirements of the FCPA and will continue to cooperate with both agencies.
Other: The Company has been named, along with many other manufacturers of wireless phones, wireless operators and industry-related organizations, as a defendant in three lawsuits pending in Washington D.C. superior court, seeking monetary damages arising out of its sale of cellular phones.
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. Other than the amount payable to CSIRO, the Company has not recorded any accrual at March 25, 2012 for contingent liabilities or recognized any asset impairment charges 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 $675 million was paid through March 25, 2012, and the remainder will be paid ratably through April 2013. At March 25, 2012, the carrying value of the liability was $212 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. In connection with the payment of the additional $81 million to the DoT described above, the Company’s subsidiary entered into an additional loan agreement 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% (10.75% at March 25, 2012) with interest payments due monthly. The loans can be prepaid without penalty on certain dates and are guaranteed by QUALCOMM Incorporated and one of its subsidiaries. In December 2011, the lender that could demand prepayment of its portion of the loans exercised its right requiring the Company to prepay the amount outstanding on February 28, 2012, which was $151 million. The Company refinanced this amount with new loans. All of the loans are due and payable in full on December 18, 2012. 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. The loan agreements also define certain events of default, including, among other things, if certain government authorizations are revoked, terminated, withdrawn, suspended, modified or withheld. As a result of the DoT’s actions against the Company, the bank lenders agreed (by waivers effective until at least June 1, 2012) that any default would be deemed cured if, among other things, the relevant subsidiaries continue to pursue a merger into the subsidiary that was granted the license. At March 25, 2012, the aggregate carrying value of the loans was $1.0 billion, which approximated fair value.
Indemnifications. With the exception of the practices of its Qualcomm Atheros subsidiary, 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 Qualcomm Atheros’ indemnification agreements, software license agreements and product sale agreements, including its standard software license agreements and standard terms and conditions of semiconductor sales, Qualcomm 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 March 25, 2012, Qualcomm 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 its 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 March 25, 2012 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 March 25, 2012 for the remainder of fiscal 2012 and for each of the subsequent four years from fiscal 2013 through 2016 were approximately $2.0 billion, $77 million, $39 million, $36 million and $25 million, respectively, and $8 million thereafter. Of these amounts, for the remainder of fiscal 2012 and for fiscal 2013, commitments to purchase integrated circuit product inventories comprised $1.6 billion and $5 million, respectively.
Leases. The future minimum lease payments for all capital leases and operating leases at March 25, 2012 were as follows (in millions):
 
Capital
Leases
 
Operating
Leases
 
Total
Remainder of fiscal 2012
$
5

 
$
81

 
$
86

2013
10

 
105

 
115

2014
10

 
85

 
95

2015
11

 
35

 
46

2016
11

 
22

 
33

Thereafter
270

 
144

 
414

Total minimum lease payments
$
317

 
$
472

 
$
789

Deduct: Amounts representing interest
179

 
 
 
 
Present value of minimum lease payments
138

 
 
 
 
Deduct: Current portion of capital lease obligations
1

 
 
 
 
Long-term portion of capital lease obligations
$
137

 
 
 
 

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. The Company leases certain property under capital lease agreements associated with its discontinued operations (Note 8), 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 (Note 8), the Company does not intend to renew its existing site capital leases. At March 25, 2012, the Company had $119 million of site capital lease assets (which are included in buildings and improvements in property, plant and equipment) and $137 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.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet12.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Segment Information
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 7 - Segment Information
Note 7 — 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 (QWI) 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, among other rights, 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 fleet management, satellite- and terrestrial-based two-way wireless information and position reporting and other services, software and hardware to transportation and logistics companies 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 wireless spectrum. The results of QSI’s FLO TV business are presented as discontinued operations (Note 8) and are therefore not included in QSI’s revenues or loss before income taxes.
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); share-based compensation (Note 1); 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 and EBT for reportable segments (in millions):
 
QCT
 
QTL
 
QWI
 
QSI*
 
Reconciling
Items*
 
Total*
For the three months ended:
 
 
 
 
 
 
 
 
 
 
 
March 25, 2012
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
3,059

 
$
1,723

 
$
159

 
$

 
$
2

 
$
4,943

EBT
599

 
1,540

 
(10
)
 
(99
)
 
(296
)
 
1,734

March 27, 2011
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
1,962

 
$
1,746

 
$
157

 
$

 
$
5

 
$
3,870

EBT
417

 
1,575

 
(135
)
 
(45
)
 
(193
)
 
1,619

 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended:
 
 
 
 
 
 
 
 
 
 
 
March 25, 2012
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
6,143

 
$
3,162

 
$
311

 
$

 
$
9

 
$
9,625

EBT
1,338

 
2,808

 
(9
)
 
(133
)
 
(549
)
 
3,455

March 27, 2011
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
4,078

 
$
2,803

 
$
329

 
$

 
$
7

 
$
7,217

EBT
1,057

 
2,467

 
(135
)
 
(67
)
 
(234
)
 
3,088


*As adjusted for discontinued operations (Note 8)
Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27, 2011*
 
March 25,
2012
 
March 27, 2011*
Revenues
 
 
 
 
 
 
 
Other nonreportable segments
$
3

 
$
5

 
$
11

 
$
9

Elimination of intersegment revenues
(1
)
 

 
(2
)
 
(2
)
 
$
2

 
$
5

 
$
9

 
$
7

EBT
 
 
 
 
 
 
 
Unallocated cost of equipment and services revenues
$
(68
)
 
$
(17
)
 
$
(138
)
 
$
(30
)
Unallocated research and development expenses
(176
)
 
(155
)
 
(339
)
 
(272
)
Unallocated selling, general and administrative expenses
(168
)
 
(161
)
 
(283
)
 
(246
)
Unallocated investment income, net
228

 
216

 
418

 
461

Other nonreportable segments
(112
)
 
(78
)
 
(207
)
 
(147
)
Intersegment eliminations

 
2

 

 

 
$
(296
)
 
$
(193
)
 
$
(549
)
 
$
(234
)

*As adjusted for discontinued operations (Note 8)
QCT revenues for the three months and six months ended both March 25, 2012 and March 27, 2011 included $1 million and $2 million of intersegment revenues, respectively. All other revenues for all periods presented were from external customers.
Reconciling items for the three months and six months ended March 25, 2012 included $51 million and $102 million, respectively, of unallocated cost of equipment and services revenues and $6 million and $15 million of unallocated selling, general and administrative expenses, respectively, related to the amortization of intangible assets resulting from acquisitions. Other nonreportable segments’ losses before taxes during the three months and six months ended March 25, 2012 and March 27, 2011 were primarily attributable to the Company’s QMT division, a nonreportable segment developing display technology for mobile devices and other applications.
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 $135 million and $913 million at March 25, 2012 and September 25, 2011, respectively (Note 8). Reconciling items for total assets included $1.4 billion and $806 million at March 25, 2012 and September 25, 2011, respectively, of goodwill and other assets related to the Company’s QMT division. The increase in QMT’s assets primarily related to the continued construction of a new manufacturing facility in Taiwan. 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. Segment assets and reconciling items were as follows (in millions):
 
March 25,
2012
 
September 25,
2011
QCT
$
1,784

 
$
1,569

QTL
40

 
36

QWI
131

 
136

QSI
1,619

 
2,386

Reconciling items
37,957

 
32,295

Total consolidated assets
$
41,531

 
$
36,422

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet13.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Discontinued Operations
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 8 - Discontinued Operations
Note 8 — Discontinued Operations
On December 27, 2011, the Company completed the sale of substantially all of its 700 MHz spectrum for $1.9 billion, and as a result, the Company recognized a gain in discontinued operations of $1.2 billion during the three months ended March 25, 2012. Since the shut down of the FLO TV business and network on March 27, 2011, the Company has been working to sell the remaining assets and exit contracts. All remaining assets have been considered disposed of since March 27, 2011. Accordingly, the results of operations of the FLO TV business are presented as discontinued operations. Income (loss) from discontinued operations includes share-based payments and excludes certain general corporate expenses allocated to the FLO TV business during the periods presented.
Summarized results from discontinued operations were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25, 2012
 
March 27, 2011
 
March 25, 2012
 
March 27, 2011
Revenues
$


$
4


$


$
4

Income (loss) from discontinued operations
$
1,175


$
(361
)

$
1,167


$
(502
)
Income tax (expense) benefit
(414
)

92


(411
)

151

Discontinued operations, net of income taxes
$
761


$
(269
)

$
756


$
(351
)
At March 25, 2012, total assets and liabilities of the discontinued operations in the condensed consolidated balance sheet were $135 million and $209 million, respectively, consisting primarily of capital lease assets and liabilities of $119 million and $137 million, respectively. 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 6).
Restructuring activities under the Company’s plan related to discontinued operations 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. The restructuring liability, which is reported as a component of other liabilities, consisted of contract termination costs of $37 million and other costs of $2 million at March 25, 2012. During the six months ended March 25, 2012, the Company made payments on amounts previously accrued of $4 million.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet14.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Acquisitions
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 9 - Acquisitions
Note 9 — Acquisitions
During the six months ended March 25, 2012, the Company acquired six businesses for total cash consideration of $302 million. Technology-based intangible assets recognized in the amount of $35 million are being amortized on a straight-line basis over a weighted-average useful life of six years. The Company recorded $46 million related to two in-process research and development (IPR&D) projects, which are expected to be completed within the next two years. The acquired IPR&D will not be amortized until completion, and upon completion, IPR&D projects will be amortized over their useful lives, which are expected to be nine years. Goodwill recognized in these transactions, of which $71 million is expected to be deductible for tax purposes, was assigned to the Company’s reportable segments as follows: $48 million to QCT, $22 million to QTL and $130 million to a non-reportable segment.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet15.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 10 - Fair Value Measurements
Note 10 — 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 March 25, 2012 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
1,293

 
$
3,531

 
$

 
$
4,824

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
660

 
859

 

 
1,519

Corporate bonds and notes

 
7,847

 

 
7,847

Mortgage- and asset-backed securities

 
1,301

 
55

 
1,356

Auction rate securities

 

 
120

 
120

Non-investment-grade debt securities

 
4,328

 
60

 
4,388

Common and preferred stock
1,471

 
743

 

 
2,214

Equity mutual and exchange-traded funds
1,296

 

 

 
1,296

Debt mutual funds
1,332

 
498

 

 
1,830

Total marketable securities
4,759

 
15,576

 
235

 
20,570

Derivative instruments

 
34

 

 
34

Other investments
189

 

 

 
189

Total assets measured at fair value
$
6,241

 
$
19,141

 
$
235

 
$
25,617

Liabilities
 
 
 
 
 
 
 
Derivative instruments
$
3

 
$
12

 
$

 
$
15

Other liabilities
189

 

 
5

 
194

Total liabilities measured at fair value
$
192

 
$
12

 
$
5

 
$
209



Cash Equivalents and Marketable Securities. The Company considers all highly liquid investments, including repurchase agreements, 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, government agencies’ securities and repurchase agreements fully collateralized by government agencies’ 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 rated below AAA, may require the 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; option, forward and swap contracts to acquire or reduce foreign exchange risk and/or equity, prepayment and credit risks for portfolios of marketable securities classified as trading; warrants to purchase common stock of other companies at fixed prices; and written put options to repurchase shares of the Company’s common stock at fixed prices. Derivative instruments that are traded on an exchange are valued using quoted market prices and are included in Level 1. Derivative instruments that are not traded on an exchange are valued using conventional calculations/models that are primarily based on observable inputs, such as foreign currency exchange rates, the Company’s stock price, volatilities and interest rates, and therefore, such derivative instruments are included in Level 2.
Other Investments and Other Liabilities. Other investments and other liabilities included in Level 1 are comprised of the Company’s deferred compensation plan liability and related assets, which are invested in mutual funds. Other liabilities included in Level 3 are comprised of put rights held by third parties representing interests in certain of the Company’s subsidiaries. These put rights are valued with a conventional 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 the six months ended March 25, 2012 or March 27, 2011. 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):
 
Six Months Ended March 25, 2012
 
Six Months Ended March 27, 2011
 
Auction Rate
Securities
 
Other Marketable
Securities
 
Other Liabilities
 
Auction Rate
Securities
 
Other Marketable
Securities
 
Other Liabilities
Beginning balance of Level 3
$
124

 
$
27

 
$
7

 
$
126

 
$
18

 
$

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

 
1

 
(2
)
 

 
1

 

Included in other comprehensive income

 
2

 

 
2

 

 

Issuances

 

 

 

 

 
8

Purchases

 
88

 

 

 

 

Settlements
(4
)
 
(8
)
 

 
(3
)
 
(3
)
 

Transfers into Level 3

 
5

 

 

 
1

 

Ending balance of Level 3
$
120

 
$
115

 
$
5

 
$
125

 
$
17

 
$
8


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 during the six months ended March 25, 2012 and March 27, 2011 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 the six months ended March 25, 2012 and March 27, 2011, goodwill related to the Company’s Firethorn division was written down to its implied fair values of $23 million and $40 million, respectively, resulting in impairment charges of $16 million and $114 million, respectively. The impairment charges were recorded in other operating expenses. The implied fair values were based on significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3. During the six months ended March 25, 2012 and March 27, 2011, 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.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet16.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Marketable Securities
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Note 11 - Marketable Securities
Note 11 — Marketable Securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
March 25,
2012
 
September 25,
2011
 
March 25,
2012
 
September 25,
2011
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
233

 
$

 
$
229

 
$

Corporate bonds and notes
269

 

 
117

 

Mortgage- and asset-backed securities

 

 
65

 

Non-investment-grade debt securities

 

 
91

 

Total trading
502

 

 
502

 

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
1,045

 
516

 
12

 
6

Corporate bonds and notes
4,867

 
3,665

 
2,594

 
2,353

Mortgage- and asset-backed securities
1,117

 
587

 
174

 
91

Auction rate securities

 

 
120

 
124

Non-investment-grade debt securities
48

 
19

 
4,249

 
3,653

Common and preferred stock
170

 
76

 
2,044

 
1,713

Equity mutual and exchange-traded funds

 

 
1,296

 
845

Debt mutual funds
1,332

 
1,327

 

 

Total available-for-sale
8,579

 
6,190

 
10,489

 
8,785

Fair value option:
 
 
 
 
 
 
 
Debt mutual fund

 

 
498

 
476

Total marketable securities
$
9,081

 
$
6,190

 
$
11,489

 
$
9,261


The Company holds an investment in a debt mutual fund for which the Company elected the fair value option because the Company is able to redeem its shares at net asset value, which is determined daily. The investment would have otherwise been recorded using the equity method. The debt mutual fund has no single maturity date. At March 25, 2012, the Company had an effective ownership interest in the debt mutual fund of 21%. During the three months and six months ended March 25, 2012, increases in fair value associated with this investment of $17 million and $22 million, respectively, were recognized in net investment income. During the three months and six months ended March 27, 2011, increases in fair value associated with this investment of $13 million and $18 million, respectively, were recognized in net investment income.
The Company classifies portfolios of debt securities that involve the purchase or sale of derivative instruments to acquire or reduce foreign exchange and/or equity, prepayment and credit risk as trading. Net gains recognized on debt securities classified as trading still held at March 25, 2012 were $12 million and $10 million for the three months and six months ended March 25, 2012, respectively. The Company did not hold any securities classified as trading during the three months and six months ended March 27, 2011.
At March 25, 2012, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
 
 
 
Less Than
One Year
 
One to
Five Years
 
Five to
Ten Years
 
Greater Than
Ten Years
 
No Single
Maturity
Date
 
Total
$
1,397

 
$
6,334

 
$
2,735

 
$
1,143

 
$
3,949

 
$
15,558

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 securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
For the three months ended
 
 
 
 
 
March 25, 2012
$
64

 
$
(4
)
 
$
60

March 27, 2011
95

 
(6
)
 
89

 
 
 
 
 
 
For the six months ended
 
 
 
 
 
March 25, 2012
$
100

 
$
(6
)
 
$
94

March 27, 2011
223

 
(11
)
 
212

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
March 25, 2012
 
 
 
 
 
 
 
Equity securities
$
2,849

 
$
673

 
$
(12
)
 
$
3,510

Debt securities
15,170

 
432

 
(44
)
 
15,558

 
$
18,019

 
$
1,105

 
$
(56
)
 
$
19,068

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


The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that are classified as available-for-sale and 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):

 
March 25, 2012
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
523

 
$
(1
)
 
$
4

 
$

Corporate bonds and notes
1,770

 
(9
)
 
21

 
(2
)
Mortgage- and asset-backed securities
596

 
(2
)
 
9

 

Auction rate securities
3

 

 
117

 
(2
)
Non-investment-grade debt securities
761

 
(20
)
 
92

 
(7
)
Common and preferred stock
208

 
(7
)
 
4

 

Equity mutual and exchange-traded funds
159

 
(5
)
 

 

Debt mutual funds
318

 
(1
)
 
1

 

 
$
4,338

 
$
(45
)
 
$
248

 
$
(11
)

 
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
)

At March 25, 2012, the Company concluded that the unrealized losses on its available-for-sale securities 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):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27,
2011
 
March 25,
2012
 
March 27,
2011
Beginning balance of credit losses
$
46

 
$
89

 
$
46

 
$
109

Reductions in credit losses related to securities the Company intends to sell

 
(30
)
 
(1
)
 
(40
)
Additional credit losses recognized on securities previously impaired
2

 

 
3

 

Credit losses recognized on securities previously not impaired
2

 

 
2

 

Reductions in credit losses related to securities sold
(4
)
 
(5
)
 
(4
)
 
(12
)
Accretion of credit losses due to an increase in cash flows expected to be collected

 
(2
)
 

 
(5
)
Ending balance of credit losses
$
46

 
$
52

 
$
46

 
$
52

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet17.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation (Policies)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
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 the three months and six months ended March 25, 2012 were 44,100,000 and 40,576,000, respectively. The incremental dilutive common share equivalents, calculated using the treasury stock method, for the three months and six months ended March 27, 2011 were 34,955,000 and 30,231,000, respectively.
Employee stock options to purchase approximately 504,000 and 2,488,000 shares of common stock during the three months and six months ended March 25, 2012, respectively, and employee stock options to purchase approximately 5,881,000 and 33,336,000 shares of common stock during the three months and six months ended March 27, 2011, respectively, were outstanding but not included in the calculation of diluted earnings per common share because the effect would be anti-dilutive. Put options outstanding during the three months and six months ended March 25, 2012 to purchase 11,800,000 shares of common stock, respectively, 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 5). In addition, 733,000 and 704,000 shares of other common stock equivalents outstanding during the three months and six months ended March 25, 2012, respectively, and 78,000 and 60,000 shares of other common stock equivalents outstanding during the three months and six months ended March 27, 2011, respectively, were not included in the computation of diluted earnings per common share because either the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet18.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements Fair Value Measurements (Policies)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Cash Equivalents
The Company considers all highly liquid investments, including repurchase agreements, 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, government agencies’ securities and repurchase agreements fully collateralized by government agencies’ securities.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet19.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Marketable Securities Marketable Securities (Policies)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Marketable Securities, Trading Securities
The Company classifies portfolios of debt securities that involve the purchase or sale of derivative instruments to acquire or reduce foreign exchange and/or equity, prepayment and credit risk as trading.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet20.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation (Tables)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Total comprehensive income
Total comprehensive income attributable to Qualcomm consisted of the following (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27,
2011
 
March 25,
2012
 
March 27,
2011
Net income
$
2,199

 
$
995

 
$
3,594

 
$
2,164

Other comprehensive income:
 
 
 
 
 
 
 
Foreign currency translation
16

 
8

 
(12
)
 
13

Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes
3

 
(6
)
 
4

 
(10
)
Net unrealized gains on other available-for-sale securities and derivative instruments, net of income taxes
320

 
90

 
495

 
221

Reclassification of net realized gains on available-for-sale securities and derivative instruments included in net income, net of income taxes
(40
)
 
(49
)
 
(57
)
 
(125
)
Reclassification of other-than-temporary losses on available-for-sale securities included in net income, net of income taxes
16

 
2

 
25

 
6

Total other comprehensive income
315

 
45

 
455

 
105

Total comprehensive income
2,514

 
1,040

 
4,049

 
2,269

Comprehensive loss attributable to noncontrolling interests
30

 
4

 
38

 
4

Comprehensive income attributable to Qualcomm
$
2,544

 
$
1,044

 
$
4,087

 
$
2,273

Components of accumulated other comprehensive income
Components of accumulated other comprehensive income in Qualcomm stockholders’ equity consisted of the following (in millions):
 
March 25,
2012
 
September 25,
2011
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes
$
29

 
$
27

Net unrealized gains on other available-for-sale securities, net of income taxes
866

 
427

Net unrealized gains (losses) on derivative instruments, net of income taxes
11

 
(15
)
Foreign currency translation
(97
)
 
(86
)
 
$
809

 
$
353

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):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27, 2011*
 
March 25,
2012
 
March 27, 2011*
Cost of equipment and services revenues
$
17

 
$
17

 
$
36

 
$
30

Research and development
126

 
97

 
253

 
182

Selling, general and administrative
97

 
85

 
198

 
155

Continuing operations
240

 
199

 
487

 
367

Related income tax benefit
(56
)
 
(55
)
 
(109
)
 
(109
)
Continuing operations, net of income taxes
184

 
144

 
378

 
258

Discontinued operations

 
3

 

 
6

Related income tax benefit

 
(1
)
 

 
(2
)
Discontinued operations, net of income taxes

 
2

 

 
4

 
$
184

 
$
146

 
$
378

 
$
262

*As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet21.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Composition of Certain Financial Statement Items (Tables)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Accounts receivable
Accounts Receivable, Net.
 
March 25,
2012
 
September 25,
2011
 
(In millions)
Trade, net of allowances for doubtful accounts of $2 and $2, respectively
$
1,153

 
$
951

Long-term contracts
30

 
32

Other
6

 
10

 
$
1,189

 
$
993

Inventories
Inventories.
 
March 25,
2012
 
September 25,
2011
 
(In millions)
Raw materials
$
19

 
$
15

Work-in-process
365

 
384

Finished goods
397

 
366

 
$
781

 
$
765

Other current liabilities
Other Current Liabilities.
 
March 25,
2012
 
September 25,
2011
 
(In millions)
Customer incentives and other customer-related liabilities
$
1,111

 
$
1,180

Current portion of payable to Broadcom (Note 6)
170

 
170

Payable for unsettled securities trades
39

 
298

Other
260

 
406

 
$
1,580

 
$
2,054

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet22.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Investment Income, Net (Tables)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Investment income, net
Investment Income, Net
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27, 2011*
 
March 25,
2012
 
March 27, 2011*
 
(In millions)
Interest and dividend income
$
146

 
$
126

 
$
275

 
$
256

Interest expense
(29
)
 
(30
)
 
(57
)
 
(54
)
Net realized gains on marketable securities
90

 
102

 
127

 
230

Net realized gains on other investments
11

 

 
17

 
1

Impairment losses on marketable securities
(23
)
 
(4
)
 
(37
)
 
(11
)
Impairment losses on other investments
(1
)
 
(1
)
 
(6
)
 
(5
)
Gains on derivative instruments
28

 

 
74

 

Equity in losses of investees
(2
)
 
(4
)
 
(4
)
 
(5
)
 
$
220

 
$
189

 
$
389

 
$
412


*As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet23.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' Equity (Tables)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Changes in stockholders' equity
Changes in stockholders’ equity for the six months ended March 25, 2012 were as follows (in millions):
 
Qualcomm Stockholders’ Equity
 
Noncontrolling Interests
 
Total Stockholders’ Equity
Balance at September 25, 2011
$
26,951

 
$
21

 
$
26,972

Net income (loss) (1)
3,631

 
(37
)
 
3,594

Other comprehensive income (loss)
456

 
(1
)
 
455

Common stock issued under employee benefit plans and the related tax benefits, net of shares withheld for tax
1,189

 

 
1,189

Share-based compensation
499

 

 
499

Dividends
(745
)
 

 
(745
)
Stock repurchases
(99
)
 

 
(99
)
Other

 
5

 
5

Balance at March 25, 2012
$
31,882

 
$
(12
)
 
$
31,870


(1) Discontinued operations, net of income taxes, (Note 8) was attributable to Qualcomm.
Cash dividends
During the six months ended March 25, 2012 and March 27, 2011, dividends charged to retained earnings were as follows (in millions, except per share data):
 
2012
 
2011
 
Per Share
 
Total
 
Per Share
 
Total
First Quarter
$
0.215

 
$
368

 
$
0.190

 
$
314

Second Quarter
0.215

 
377

 
0.190

 
319

 
$
0.430

 
$
745

 
$
0.380

 
$
633

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet24.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Commitments and Contingencies (Tables)
6 Months Ended
Mar. 25, 2012
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 March 25, 2012 were as follows (in millions):
 
Capital
Leases
 
Operating
Leases
 
Total
Remainder of fiscal 2012
$
5

 
$
81

 
$
86

2013
10

 
105

 
115

2014
10

 
85

 
95

2015
11

 
35

 
46

2016
11

 
22

 
33

Thereafter
270

 
144

 
414

Total minimum lease payments
$
317

 
$
472

 
$
789

Deduct: Amounts representing interest
179

 
 
 
 
Present value of minimum lease payments
138

 
 
 
 
Deduct: Current portion of capital lease obligations
1

 
 
 
 
Long-term portion of capital lease obligations
$
137

 
 
 
 

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet25.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Segment Information (Tables)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Revenues and EBT for reportable segments
The table below presents revenues and EBT for reportable segments (in millions):
 
QCT
 
QTL
 
QWI
 
QSI*
 
Reconciling
Items*
 
Total*
For the three months ended:
 
 
 
 
 
 
 
 
 
 
 
March 25, 2012
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
3,059

 
$
1,723

 
$
159

 
$

 
$
2

 
$
4,943

EBT
599

 
1,540

 
(10
)
 
(99
)
 
(296
)
 
1,734

March 27, 2011
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
1,962

 
$
1,746

 
$
157

 
$

 
$
5

 
$
3,870

EBT
417

 
1,575

 
(135
)
 
(45
)
 
(193
)
 
1,619

 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended:
 
 
 
 
 
 
 
 
 
 
 
March 25, 2012
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
6,143

 
$
3,162

 
$
311

 
$

 
$
9

 
$
9,625

EBT
1,338

 
2,808

 
(9
)
 
(133
)
 
(549
)
 
3,455

March 27, 2011
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
4,078

 
$
2,803

 
$
329

 
$

 
$
7

 
$
7,217

EBT
1,057

 
2,467

 
(135
)
 
(67
)
 
(234
)
 
3,088


*As adjusted for discontinued operations (Note 8)
Reconciling items - revenue
Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27, 2011*
 
March 25,
2012
 
March 27, 2011*
Revenues
 
 
 
 
 
 
 
Other nonreportable segments
$
3

 
$
5

 
$
11

 
$
9

Elimination of intersegment revenues
(1
)
 

 
(2
)
 
(2
)
 
$
2

 
$
5

 
$
9

 
$
7

EBT
 
 
 
 
 
 
 
Unallocated cost of equipment and services revenues
$
(68
)
 
$
(17
)
 
$
(138
)
 
$
(30
)
Unallocated research and development expenses
(176
)
 
(155
)
 
(339
)
 
(272
)
Unallocated selling, general and administrative expenses
(168
)
 
(161
)
 
(283
)
 
(246
)
Unallocated investment income, net
228

 
216

 
418

 
461

Other nonreportable segments
(112
)
 
(78
)
 
(207
)
 
(147
)
Intersegment eliminations

 
2

 

 

 
$
(296
)
 
$
(193
)
 
$
(549
)
 
$
(234
)

*As adjusted for discontinued operations (Note 8)
Reconciling items - EBT
Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27, 2011*
 
March 25,
2012
 
March 27, 2011*
Revenues
 
 
 
 
 
 
 
Other nonreportable segments
$
3

 
$
5

 
$
11

 
$
9

Elimination of intersegment revenues
(1
)
 

 
(2
)
 
(2
)
 
$
2

 
$
5

 
$
9

 
$
7

EBT
 
 
 
 
 
 
 
Unallocated cost of equipment and services revenues
$
(68
)
 
$
(17
)
 
$
(138
)
 
$
(30
)
Unallocated research and development expenses
(176
)
 
(155
)
 
(339
)
 
(272
)
Unallocated selling, general and administrative expenses
(168
)
 
(161
)
 
(283
)
 
(246
)
Unallocated investment income, net
228

 
216

 
418

 
461

Other nonreportable segments
(112
)
 
(78
)
 
(207
)
 
(147
)
Intersegment eliminations

 
2

 

 

 
$
(296
)
 
$
(193
)
 
$
(549
)
 
$
(234
)

*As adjusted for discontinued operations (Note 8)
Segment assets and reconciling items
Segment assets and reconciling items were as follows (in millions):
 
March 25,
2012
 
September 25,
2011
QCT
$
1,784

 
$
1,569

QTL
40

 
36

QWI
131

 
136

QSI
1,619

 
2,386

Reconciling items
37,957

 
32,295

Total consolidated assets
$
41,531

 
$
36,422

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet26.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Discontinued Operations (Tables)
6 Months Ended
Mar. 25, 2012
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):
 
Three Months Ended
 
Six Months Ended
 
March 25, 2012
 
March 27, 2011
 
March 25, 2012
 
March 27, 2011
Revenues
$


$
4


$


$
4

Income (loss) from discontinued operations
$
1,175


$
(361
)

$
1,167


$
(502
)
Income tax (expense) benefit
(414
)

92


(411
)

151

Discontinued operations, net of income taxes
$
761


$
(269
)

$
756


$
(351
)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet27.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements (Tables)
6 Months Ended
Mar. 25, 2012
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 March 25, 2012 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
1,293

 
$
3,531

 
$

 
$
4,824

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
660

 
859

 

 
1,519

Corporate bonds and notes

 
7,847

 

 
7,847

Mortgage- and asset-backed securities

 
1,301

 
55

 
1,356

Auction rate securities

 

 
120

 
120

Non-investment-grade debt securities

 
4,328

 
60

 
4,388

Common and preferred stock
1,471

 
743

 

 
2,214

Equity mutual and exchange-traded funds
1,296

 

 

 
1,296

Debt mutual funds
1,332

 
498

 

 
1,830

Total marketable securities
4,759

 
15,576

 
235

 
20,570

Derivative instruments

 
34

 

 
34

Other investments
189

 

 

 
189

Total assets measured at fair value
$
6,241

 
$
19,141

 
$
235

 
$
25,617

Liabilities
 
 
 
 
 
 
 
Derivative instruments
$
3

 
$
12

 
$

 
$
15

Other liabilities
189

 

 
5

 
194

Total liabilities measured at fair value
$
192

 
$
12

 
$
5

 
$
209

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):
 
Six Months Ended March 25, 2012
 
Six Months Ended March 27, 2011
 
Auction Rate
Securities
 
Other Marketable
Securities
 
Other Liabilities
 
Auction Rate
Securities
 
Other Marketable
Securities
 
Other Liabilities
Beginning balance of Level 3
$
124

 
$
27

 
$
7

 
$
126

 
$
18

 
$

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

 
1

 
(2
)
 

 
1

 

Included in other comprehensive income

 
2

 

 
2

 

 

Issuances

 

 

 

 

 
8

Purchases

 
88

 

 

 

 

Settlements
(4
)
 
(8
)
 

 
(3
)
 
(3
)
 

Transfers into Level 3

 
5

 

 

 
1

 

Ending balance of Level 3
$
120

 
$
115

 
$
5

 
$
125

 
$
17

 
$
8


------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet28.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Marketable Securities (Tables)
6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]
Marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
March 25,
2012
 
September 25,
2011
 
March 25,
2012
 
September 25,
2011
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
233

 
$

 
$
229

 
$

Corporate bonds and notes
269

 

 
117

 

Mortgage- and asset-backed securities

 

 
65

 

Non-investment-grade debt securities

 

 
91

 

Total trading
502

 

 
502

 

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
1,045

 
516

 
12

 
6

Corporate bonds and notes
4,867

 
3,665

 
2,594

 
2,353

Mortgage- and asset-backed securities
1,117

 
587

 
174

 
91

Auction rate securities

 

 
120

 
124

Non-investment-grade debt securities
48

 
19

 
4,249

 
3,653

Common and preferred stock
170

 
76

 
2,044

 
1,713

Equity mutual and exchange-traded funds

 

 
1,296

 
845

Debt mutual funds
1,332

 
1,327

 

 

Total available-for-sale
8,579

 
6,190

 
10,489

 
8,785

Fair value option:
 
 
 
 
 
 
 
Debt mutual fund

 

 
498

 
476

Total marketable securities
$
9,081

 
$
6,190

 
$
11,489

 
$
9,261

Available-for-sale securities
At March 25, 2012, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
 
 
 
Less Than
One Year
 
One to
Five Years
 
Five to
Ten Years
 
Greater Than
Ten Years
 
No Single
Maturity
Date
 
Total
$
1,397

 
$
6,334

 
$
2,735

 
$
1,143

 
$
3,949

 
$
15,558

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 securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
For the three months ended
 
 
 
 
 
March 25, 2012
$
64

 
$
(4
)
 
$
60

March 27, 2011
95

 
(6
)
 
89

 
 
 
 
 
 
For the six months ended
 
 
 
 
 
March 25, 2012
$
100

 
$
(6
)
 
$
94

March 27, 2011
223

 
(11
)
 
212

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
March 25, 2012
 
 
 
 
 
 
 
Equity securities
$
2,849

 
$
673

 
$
(12
)
 
$
3,510

Debt securities
15,170

 
432

 
(44
)
 
15,558

 
$
18,019

 
$
1,105

 
$
(56
)
 
$
19,068

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

Investments classified as available-for-sale in a continuous unrealized loss position deemed to be temporary

The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that are classified as available-for-sale and 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):

 
March 25, 2012
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
523

 
$
(1
)
 
$
4

 
$

Corporate bonds and notes
1,770

 
(9
)
 
21

 
(2
)
Mortgage- and asset-backed securities
596

 
(2
)
 
9

 

Auction rate securities
3

 

 
117

 
(2
)
Non-investment-grade debt securities
761

 
(20
)
 
92

 
(7
)
Common and preferred stock
208

 
(7
)
 
4

 

Equity mutual and exchange-traded funds
159

 
(5
)
 

 

Debt mutual funds
318

 
(1
)
 
1

 

 
$
4,338

 
$
(45
)
 
$
248

 
$
(11
)

 
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
)
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):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27,
2011
 
March 25,
2012
 
March 27,
2011
Beginning balance of credit losses
$
46

 
$
89

 
$
46

 
$
109

Reductions in credit losses related to securities the Company intends to sell

 
(30
)
 
(1
)
 
(40
)
Additional credit losses recognized on securities previously impaired
2

 

 
3

 

Credit losses recognized on securities previously not impaired
2

 

 
2

 

Reductions in credit losses related to securities sold
(4
)
 
(5
)
 
(4
)
 
(12
)
Accretion of credit losses due to an increase in cash flows expected to be collected

 
(2
)
 

 
(5
)
Ending balance of credit losses
$
46

 
$
52

 
$
46

 
$
52

------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet29.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Sep. 30, 2012
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Number of weeks in a fiscal period 13 weeks 13 weeks 26 weeks 26 weeks 53 weeks 52 weeks
Incremental Dilutive Common Share Equivalents [Abstract]
Incremental dilutive common share equivalents (in shares) 44,100,000 34,955,000 40,576,000 30,231,000
Accumulated Other Comprehensive Income (Loss) [Abstract]
Other-than-temporary loss, not credit loss, net of tax, available-for-sale securities $ 10,000,000 $ 10,000,000 $ 13,000,000
Share-Based Compensation [Abstract]
Share-based compensation expense related to share-based awards 82,000,000 38,000,000
Incremental tax benefit from stock options exercised 98,000,000 132,000,000
Total unrecognized compensation cost for non-vested stock options 441,000,000 441,000,000
Total unrecognized compensation cost for non-vested employee restricted stock units $ 1,000,000,000 $ 1,000,000,000
Weighted-average recognition period for non-vested employee stock options (in years) 1.6
Weighted average recognition period for non-vested employee restricted stock units (in years) 2.1
Net share-based awards granted, after forfeitures and cancellations, as a percentage of outstanding shares as of the beginning of each fiscal period 0.50% 0.30%
Total share-based awards granted during the period as a percentage of outstanding shares as of the end of each fiscal period 0.60% 0.50%
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet30.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation Earnings Per Common Share (Details)
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS 504,000 5,881,000 2,488,000 33,336,000
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 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 733,000 78,000 704,000 60,000
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet31.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Total Comprehensive Income [Abstract]
Net income $ 2,199 $ 995 [1] $ 3,594 [2] $ 2,164 [1]
Other comprehensive income:
Foreign currency translation 16 8 (12) 13
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes 3 (6) 4 (10)
Net unrealized gains on other available-for-sale securities and derivative instruments, net of income taxes 320 90 495 221
Reclassification of net realized gains on available-for-sale securities and derivative instruments included in net income, net of income taxes (40) (49) (57) (125)
Reclassification of other-than-temporary losses on available-for-sale securities included in net income, net of income taxes 16 2 25 6
Total other comprehensive income 315 45 455 105
Total comprehensive income 2,514 1,040 4,049 2,269
Comprehensive loss attributable to noncontrolling interests 30 4 38 4
Comprehensive income attributable to Qualcomm $ 2,544 $ 1,044 $ 4,087 $ 2,273
[1] As adjusted for discontinued operations (Note 8)
[2] Discontinued operations, net of income taxes, (Note 8) was attributable to Qualcomm.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet32.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
Mar. 25, 2012
Sep. 25, 2011
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes $ 29 $ 27
Net unrealized gains on other available-for-sale securities, net of income taxes 866 427
Net unrealized gains (losses) on derivative instruments, net of income taxes 11 (15)
Foreign currency translation (97) (86)
Total accumulated other comprehensive income $ 809 $ 353
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet33.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Basis of Presentation Share-Based Compensation Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Cost of equipment and services revenues $ 17 $ 17 [1] $ 36 $ 30 [1]
Research and development 126 97 [1] 253 182 [1]
Selling, general and administrative 97 85 [1] 198 155 [1]
Continuing operations 240 199 [1] 487 367 [1]
Related income tax benefit (56) (55) [1] (109) (109) [1]
Continuing operations, net of income taxes 184 144 [1] 378 258 [1]
Discontinued operations 0 3 [1] 0 6 [1]
Related income tax benefit 0 (1) [1] 0 (2) [1]
Discontinued operations, net of income taxes 0 2 [1] 0 4 [1]
Share-based compensation expense, net of income taxes $ 184 $ 146 [1] $ 378 $ 262 [1]
[1] As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet34.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Composition of Certain Financial Statement Items Accounts Receivable (Details) (USD $)
In Millions, unless otherwise specified
Mar. 25, 2012
Sep. 25, 2011
Accounts Receivable, Net [Abstract]
Trade, net of allowances for doubtful accounts of $2 and $2, respectively $ 1,153 $ 951
Long-term contracts 30 32
Other 6 10
Accounts receivable, net 1,189 993
Allowance for doubtful accounts $ 2 $ 2
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet35.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Composition of Certain Financial Statement Items Inventories (Details) (USD $)
In Millions, unless otherwise specified
Mar. 25, 2012
Sep. 25, 2011
Inventory, Net [Abstract]
Raw materials $ 19 $ 15
Work-in-process 365 384
Finished goods 397 366
Inventories $ 781 $ 765
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet36.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Composition of Certain Financial Statement Items Other Current Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Mar. 25, 2012
Sep. 25, 2011
Other Liabilities, Current [Abstract]
Customer incentives and other customer-related liabilities $ 1,111 $ 1,180
Current portion of payable to Broadcom (Note 6) 170 170
Payable for unsettled securities trades 39 298
Other 260 406
Other current liabilities $ 1,580 $ 2,054
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet37.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Investment Income, Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Components of investment income, net [Abstract]
Interest and dividend income $ 146 $ 126 [1] $ 275 $ 256 [1]
Interest expense (29) (30) [1] (57) (54) [1]
Net realized gains on marketable securities 90 102 [1] 127 230 [1]
Net realized gains on other investments 11 0 [1] 17 1 [1]
Impairment losses on marketable securities (23) (4) [1] (37) (11) [1]
Impairment losses on other investments (1) (1) [1] (6) (5) [1]
Gains on derivative instruments 28 0 [1] 74 0 [1]
Equity in losses of investees (2) (4) [1] (4) (5) [1]
Investment income, net $ 220 $ 189 [1] $ 389 $ 412 [1]
[1] As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet38.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Annual effective income tax rate for continuing operations (estimated for fiscal 2012) 18.00% 20.00%
Tax benefit related to foreign earnings 17.00%
Amount by which the expected Singapore tax would be higher without tax incentive $ 265
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet39.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' Equity (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Mar. 25, 2012
Dec. 25, 2011
Sep. 25, 2011
Mar. 27, 2011
Dec. 26, 2010
Mar. 25, 2012
Mar. 27, 2011
Stock repurchase program [Abstract]
Shares repurchased and retired, shares 2,046,000 0
Shares repurchased and retired, value $ 99,000,000 $ 0
Authorized dollar amount of repurchase of common stock under current stock repurchase program 4,000,000,000
Authorized dollar amount of repurchase of common stock under prior stock repurchase program 3,000,000,000
Authorized dollar amount remaining available under prior stock repurchase program, net of put options outstanding 948,000,000
Authorized dollar amount remaining available under current stock repurchase program, net of put options outstanding 3,500,000,000
Option Indexed to Issuer's Equity, Indexed Shares 11,800,000 11,800,000
Value, net of premiums received, of outstanding options indexed to issuers equity 511,000,000 511,000,000
Premiums received from put option derivative instruments 75,000,000
Put option contracts derivative liabilities at fair value 3,000,000 3,000,000
Gain on put option derivatives recorded in net investment income 32,000,000 0 77,000,000 0
Dividends [Abstract]
Dividends charged to retained earnings - per share $ 0.25 $ 0.215 $ 0.215 $ 0.19 [1] $ 0.19 $ 0.43 $ 0.38 [1]
Amount of increased common stock dividends per share announced $ 0.25
Dividends Payable, Date Declared, Day, Month and Year Apr 3, 2012
Dividends Payable, Date to be Paid, Day, Month and Year Jun 20, 2012
Dividends Payable, Date of Record, Day, Month and Year Jun 1, 2012
Dividends charged to retained earnings - total $ 377,000,000 $ 368,000,000 $ 319,000,000 $ 314,000,000 $ 745,000,000 $ 633,000,000
[1] As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet40.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' Equity Changes in Stockholders' Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Dec. 25, 2011
Mar. 27, 2011
Dec. 26, 2010
Mar. 25, 2012
Mar. 27, 2011
Balance at beginning period $ 26,972 $ 26,972
Net income (loss) 2,199 995 [1] 3,594 [2] 2,164 [1]
Other comprehensive income (loss) 315 45 455 105
Common stock issued under employee benefit plans and the related tax benefits, net of shares withheld for tax 1,189
Share-based compensation 499
Dividends (377) (368) (319) (314) (745) (633)
Stock repurchases (99)
Other 5
Balance at ending period 31,870 31,870
Qualcomm Stockholders' Equity [Member]
Balance at beginning period 26,951 26,951
Net income (loss) 3,631 [2]
Other comprehensive income (loss) 456
Common stock issued under employee benefit plans and the related tax benefits, net of shares withheld for tax 1,189
Share-based compensation 499
Dividends (745)
Stock repurchases (99)
Other 0
Balance at ending period 31,882 31,882
Noncontrolling Interests [Member]
Balance at beginning period 21 21
Net income (loss) (37) [2]
Other comprehensive income (loss) (1)
Common stock issued under employee benefit plans and the related tax benefits, net of shares withheld for tax 0
Share-based compensation 0
Dividends 0
Stock repurchases 0
Other 5
Balance at ending period $ (12) $ (12)
[1] As adjusted for discontinued operations (Note 8)
[2] Discontinued operations, net of income taxes, (Note 8) was attributable to Qualcomm.
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet41.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Commitments and Contingencies (Details) (USD $)
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 25, 2012
Sep. 25, 2011
Apr. 26, 2009
Legal Proceedings [Abstract]
Expiration date of subject patents Sep 24, 2010
Payment in noncurrent other assets $ 959,000,000 $ 959,000,000 $ 994,000,000
Noncontrolling interest, description two Indian companies each acquired 13% of each subsidiary
Assesment of unpaid dues of subsidiary partner in India 81,000,000
Payment of unpaid dues of subsidiary partner in India 81,000,000
Litigation Settlement Patent License And Other Related Items [Abstract]
Broadcom settlement 891,000,000
Paid portion of Broadcom settlement 675,000,000 675,000,000
Last payment date of the remaining payments of the Broadcom settlement April 2013
Carrying value and fair value (net of imputed interest) of the Broadcom settlement liability 212,000,000 212,000,000
Loans Payable Related to India BWA Spectrum [Abstract]
Payment of unpaid dues of subsidiary partner in India 81,000,000
Interest rate spread percentage 0.25% 0.25%
India BWA spectrum loans interest rate percentage 10.75% 10.75%
India BWA spectrum loan demanded for prepayment payment date Feb 28, 2012
India BWA spectrum loans demanded for prepayment 151,000,000 151,000,000
Carrying value of refinanced loans 1,039,000,000 1,039,000,000 994,000,000
Purchase Obligations [Abstract]
Unrecorded noncancelable obligations for remainder of fiscal 2012 2,000,000,000 2,000,000,000
Unrecorded noncancelable obligations for fiscal 2013 77,000,000 77,000,000
Unrecorded noncancelable obligations for fiscal 2014 39,000,000 39,000,000
Unrecorded noncancelable obligations for fiscal 2015 36,000,000 36,000,000
Unrecorded noncancelable obligations for fiscal 2016 25,000,000 25,000,000
Unrecorded noncancelable obligations thereafter 8,000,000 8,000,000
Inventory purchase commitments for remainder of fiscal 2012 1,600,000,000 1,600,000,000
Inventory purchase commitments for fiscal 2013 5,000,000 5,000,000
Leases [Abstract]
Low range of noncancelable operating lease terms less than one year
High range of noncancelable operating lease terms 35 years
Low range of initial capital lease terms (in years) 5
High range of initial capital lease terms (in years) 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 119,000,000 119,000,000
Total capital lease obligation expected to be written off due to restructuring plan at the end of the contractual lease term $ 137,000,000 $ 137,000,000
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet42.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Commitments and Contingencies Capital and Operating Leases (Details) (USD $)
In Millions, unless otherwise specified
Mar. 25, 2012
Capital Leases, Future Minimum Payments Due [Abstract]
Remainder of fiscal 2012 - Capital leases $ 5
2013 - Capital leases 10
2014 - Capital leases 10
2015 - Capital leases 11
2016 - Capital leases 11
Thereafter - Capital leases 270
Total minimum lease payments - Capital leases 317
Deduct: Amounts representing interest - Capital leases 179
Present value of minimum lease payments - Capital leases 138
Deduct: Current portion of capital lease obligations 1
Long-term portion of capital lease obligations 137
Operating Leases, Future Minimum Payments Due [Abstract]
Remainder of fiscal 2012 - Operating leases 81
2013 - Operating leases 105
2014 - Operating leases 85
2015 - Operating leases 35
2016 - Operating leases 22
Thereafter - Operating leases 144
Total minimum lease payments - Operating leases 472
Total Capital and Operating Leases, Future Minimum Payments Due [Abstract]
Remainder of fiscal 2012 - Total 86
2013 - Total 115
2014 - Total 95
2015 - Total 46
2016 - Total 33
Thereafter - Total 414
Total minimum lease payments - Total $ 789
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet43.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 25, 2012
Sep. 25, 2011
Notes to Financial Statements [Abstract]
Number of QWI aggregated divisions 4
Number of QSI aggregated divisions 3
Revenues, EBT, and Assets for reportable segments [Line Items]
Unallocated cost of equipment and services revenue resulting from acquisitions $ 51 $ 102
Unallocated selling, general and administrative expenses resulting from acquisitions 6 15
FLO TV assets included in QSI's assets 135 135 913
QMT assets included in reconciling items $ 1,400 $ 1,400 $ 806
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet44.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Segment Information Revenues, EBT, and Assets for Reportable Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Sep. 25, 2011
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues $ 4,943 $ 3,870 [1] $ 9,625 $ 7,217 [1]
EBT 1,734 1,619 [1] 3,455 3,088 [1]
Assets 41,531 41,531 36,422
QCT
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues 3,059 1,962 6,143 4,078
EBT 599 417 1,338 1,057
Assets 1,784 1,784 1,569
Segment Reporting Information, Operating Income (Loss) [Abstract]
Revenue from external customers 3,058 1,961 6,142 4,076
Intersegment revenues 1 1 2 2
QTL
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues 1,723 1,746 3,162 2,803
EBT 1,540 1,575 2,808 2,467
Assets 40 40 36
Segment Reporting Information, Operating Income (Loss) [Abstract]
Revenue from external customers 1,723 1,746 3,162 2,803
Intersegment revenues 0 0 0 0
QWI
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues 159 157 311 329
EBT (10) (135) (9) (135)
Assets 131 131 136
Segment Reporting Information, Operating Income (Loss) [Abstract]
Revenue from external customers 159 157 311 329
Intersegment revenues 0 0 0 0
QSI
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues 0 0 [1] 0 0 [1]
EBT (99) (45) [1] (133) (67) [1]
Assets 1,619 1,619 2,386
Reconciling Items [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues 2 5 [1] 9 7 [1]
EBT (296) (193) [1] (549) (234) [1]
Assets 37,957 37,957 32,295
Other nonreportable segments [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues 3 5 [1] 11 9 [1]
Elimination of intersegment revenues [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
Revenues (1) 0 [1] (2) (2) [1]
Unallocated cost of equipment and services revenues [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
EBT (68) (17) [1] (138) (30) [1]
Unallocated research and development expenses [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
EBT (176) (155) [1] (339) (272) [1]
Unallocated selling, general and administrative expenses [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
EBT (168) (161) [1] (283) (246) [1]
Unallocated investment income, net [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
EBT 228 216 [1] 418 461 [1]
Other nonreportable segments [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
EBT (112) (78) [1] (207) (147) [1]
Intersegment eliminations [Member]
Revenues, EBT, and Assets for reportable segments [Line Items]
EBT $ 0 $ 2 [1] $ 0 $ 0 [1]
[1] As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet45.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Date of completed sale of spectrum 12/27/2011 12/27/2011
Proceeds from sale of spectrum $ 1,925 $ 1,925 $ 0
Gain in discontinued operations from sale of spectrum 1,179 1,179 0
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Revenues 0 4 0 4
Income (loss) from discontinued operations 1,175 (361) 1,167 (502)
Income tax benefit (414) 92 (411) 151
Discontinued operations, net of income taxes 761 (269) [1] 756 (351) [1]
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract]
Total carrying amount of assets of discontinued operations 135 135
Total carrying amount of liabilities of discontinued operations 209 209
Capital lease assets 119 119
Capital lease liabilities $ 137 $ 137
[1] As adjusted for discontinued operations (Note 8)
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet46.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Discontinued Operations by Type (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 25, 2012
Restructuring and Related Cost [Line Items]
Payments on amounts previously accrued $ 4
Contract termination costs [Member]
Restructuring and Related Cost [Line Items]
Restructuring accrual 37
Other costs [Member]
Restructuring and Related Cost [Line Items]
Restructuring accrual $ 2
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet47.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Acquisitions (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 25, 2012
Business Acquisition, Purchase Price Allocation [Abstract]
Number of businesses acquired (in businesses) 6
Cash consideration paid for businesses acquired $ 302
Acquired technology-based intangible assets 35
Acquired in-process research and development (IPR&D) 46
Number of in-process research and development projects (in projects) 2
Acquired in-process research and development estimated completion period (in years) 2
Goodwill recognized from businesses acquired, expected to be deductible for tax purposes 71
Technology-based [Member]
Business Acquisition, Purchase Price Allocation [Abstract]
Weighted-average useful life of intangible assets acquired (in years) 6
IPR&D [Member]
Business Acquisition, Purchase Price Allocation [Abstract]
Weighted-average useful life of intangible assets acquired (in years) 9
QCT [Member]
Acquisitions [Abstract]
Goodwill 48
QTL [Member]
Acquisitions [Abstract]
Goodwill 22
Non-reportable segment [Member]
Acquisitions [Abstract]
Goodwill $ 130
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet48.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Nonrecurring Fair Value Measurements [Abstract]
Goodwill balance subsequent to impairment for Firethorn reporting unit $ 23 $ 40
Goodwill impairment $ 16 $ 114
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet49.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements Fair Value Hierarchy (Details) (USD $)
In Millions, unless otherwise specified
Mar. 25, 2012
Assets [Abstract]
Cash equivalents $ 4,824
Marketable Securities [Abstract]
U.S. Treasury securities and government-related securities 1,519
Corporate bonds and notes 7,847
Mortgage- and asset-backed securities 1,356
Auction rate securities 120
Non-investment-grade debt securities 4,388
Common and preferred stock 2,214
Equity mutual and exchange-traded funds 1,296
Debt mutual funds 1,830
Total marketable securities 20,570
Derivative instruments 34
Other investments 189
Total assets measured at fair value 25,617
Liabilities [Abstract]
Derivative instruments 15
Other liabilities 194
Total liabilities measured at fair value 209
Level 1 [Member]
Assets [Abstract]
Cash equivalents 1,293
Marketable Securities [Abstract]
U.S. Treasury securities and government-related securities 660
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 1,471
Equity mutual and exchange-traded funds 1,296
Debt mutual funds 1,332
Total marketable securities 4,759
Derivative instruments 0
Other investments 189
Total assets measured at fair value 6,241
Liabilities [Abstract]
Derivative instruments 3
Other liabilities 189
Total liabilities measured at fair value 192
Level 2 [Member]
Assets [Abstract]
Cash equivalents 3,531
Marketable Securities [Abstract]
U.S. Treasury securities and government-related securities 859
Corporate bonds and notes 7,847
Mortgage- and asset-backed securities 1,301
Auction rate securities 0
Non-investment-grade debt securities 4,328
Common and preferred stock 743
Equity mutual and exchange-traded funds 0
Debt mutual funds 498
Total marketable securities 15,576
Derivative instruments 34
Other investments 0
Total assets measured at fair value 19,141
Liabilities [Abstract]
Derivative instruments 12
Other liabilities 0
Total liabilities measured at fair value 12
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 55
Auction rate securities 120
Non-investment-grade debt securities 60
Common and preferred stock 0
Equity mutual and exchange-traded funds 0
Debt mutual funds 0
Total marketable securities 235
Derivative instruments 0
Other investments 0
Total assets measured at fair value 235
Liabilities [Abstract]
Derivative instruments 0
Other liabilities 5
Total liabilities measured at fair value $ 5
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet50.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements Activity Between Levels of the Fair Value Hierarchy, Assets (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Auction Rate Securities [Member]
Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]
Beginning balance of Level 3 $ 124 $ 126
Total realized and unrealized gains or losses [Abstract]
Included in investment income, net 0 0
Included in other comprehensive income 0 2
Issuances 0 0
Purchases 0 0
Settlements (4) (3)
Transfers out of Level 3 0 0
Transfers into Level 3 0 0
Ending balance of Level 3 120 125
Other Marketable Securities [Member]
Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]
Beginning balance of Level 3 27 18
Total realized and unrealized gains or losses [Abstract]
Included in investment income, net 1 1
Included in other comprehensive income 2 0
Issuances 0 0
Purchases 88 0
Settlements (8) (3)
Transfers out of Level 3 0 0
Transfers into Level 3 5 1
Ending balance of Level 3 $ 115 $ 17
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet51.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Fair Value Measurements Activity Between Levels of the Fair Value Hierarchy, Liabilities (Details) (Other Liabilities [Member], USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Other Liabilities [Member]
Activity for Other Liabilities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]
Beginning balance of Level 3 $ 7 $ 0
Total realized and unrealized gains or losses [Abstract]
Included in investment income, net (2) 0
Included in other comprehensive income 0 0
Issuances 0 8
Purchases 0 0
Settlements 0 0
Transfers out of Level 3 0 0
Transfers into Level 3 0 0
Ending balance of Level 3 $ 5 $ 8
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet52.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Marketable Securities (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Marketable Securities [Abstract]
Effective ownership interest in debt mutual fund (fair value option) 21.00% 21.00%
Increases in fair value of debt mutual fund (fair value option) $ 17 $ 13 $ 22 $ 18
Debt securities classified as trading, unrealized holding gain $ 12 $ 0 $ 10 $ 0
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/Sheet53.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Marketable Securities Marketable Securities Table (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 25, 2012
Mar. 27, 2011
Mar. 25, 2012
Mar. 27, 2011
Sep. 25, 2011
Trading Securities [Abstract]
Trading Securities - Current $ 502 $ 502 $ 0
Trading Securities - Noncurrent 502 502 0
Available-for-sale Securities [Abstract]
Available-for-sale - Current 8,579 8,579 6,190
Available-for-sale - Noncurrent 10,489 10,489 8,785
Fair Value Option [Abstract]
Debt mutual fund - Current 0 0 0
Debt mutual fund - Noncurrent 498 498 476
Marketable Securities - Current 9,081 9,081 6,190
Marketable Securities - Noncurrent 11,489 11,489 9,261
Contractual maturities of available-for-sale debt securities [Abstract]
Years to Maturity - Less Than One Year 1,397 1,397
Years to Maturity - One to Five Years 6,334 6,334
Years to Maturity - Five to Ten Years 2,735 2,735
Years to Maturity - Greater Than Ten Years 1,143 1,143
Years to Maturity - No Single Maturity Date 3,949 3,949
Total 15,558 15,558
Realized Gains and Losses on Sales of Available-for-sale Securities [Abstract]
Gross Realized Gains 64 95 100 223
Gross Realized Losses (4) (6) (6) (11)
Net Realized Gains 60 89 94 212
Available-for-sale Securities [Abstract]
Cost 18,019 18,019 14,605
Unrealized Gains 1,105 1,105 572
Unrealized Losses (56) (56) (202)
Fair Value 19,068 19,068 14,975
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 4,338 4,338 4,482
Less than 12 months - Unrealized Losses (45) (45) (197)
More than 12 months - Fair Value 248 248 185
More than 12 months - Unrealized Losses (11) (11) (5)
Activity for Credit Loss Portion of Other-than-temporary Impairments on Debt Securities [Roll Forward]
Beginning balance of credit losses 46 89 46 109
Reductions in credit losses related to securities the Company intends to sell 0 (30) (1) (40)
Additional credit losses recognized on securities previously impaired 2 0 3 0
Credit losses recognized on securities previously not impaired 2 0 2 0
Reductions in credit losses related to securities sold (4) (5) (4) (12)
Accretion of credit losses due to an increase in cash flows expected to be collected 0 (2) 0 (5)
Ending balance of credit losses 46 52 46 52
U.S. Treasury securities and government-related securities [Member]
Trading Securities [Abstract]
Trading Securities - Current 233 233 0
Trading Securities - Noncurrent 229 229 0
Available-for-sale Securities [Abstract]
Available-for-sale - Current 1,045 1,045 516
Available-for-sale - Noncurrent 12 12 6
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 523 523
Less than 12 months - Unrealized Losses (1) (1)
More than 12 months - Fair Value 4 4
More than 12 months - Unrealized Losses 0 0
Corporate bonds and notes [Member]
Trading Securities [Abstract]
Trading Securities - Current 269 269 0
Trading Securities - Noncurrent 117 117 0
Available-for-sale Securities [Abstract]
Available-for-sale - Current 4,867 4,867 3,665
Available-for-sale - Noncurrent 2,594 2,594 2,353
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 1,770 1,770 1,862
Less than 12 months - Unrealized Losses (9) (9) (41)
More than 12 months - Fair Value 21 21 41
More than 12 months - Unrealized Losses (2) (2) 0
Mortgage- and asset-backed securities [Member]
Trading Securities [Abstract]
Trading Securities - Current 0 0 0
Trading Securities - Noncurrent 65 65 0
Available-for-sale Securities [Abstract]
Available-for-sale - Current 1,117 1,117 587
Available-for-sale - Noncurrent 174 174 91
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 596 596
Less than 12 months - Unrealized Losses (2) (2)
More than 12 months - Fair Value 9 9
More than 12 months - Unrealized Losses 0 0
Auction rate securities [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 0 0 0
Available-for-sale - Noncurrent 120 120 124
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 3 3 3
Less than 12 months - Unrealized Losses 0 0 0
More than 12 months - Fair Value 117 117 121
More than 12 months - Unrealized Losses (2) (2) (2)
Non-investment-grade debt securities [Member]
Trading Securities [Abstract]
Trading Securities - Current 0 0 0
Trading Securities - Noncurrent 91 91 0
Available-for-sale Securities [Abstract]
Available-for-sale - Current 48 48 19
Available-for-sale - Noncurrent 4,249 4,249 3,653
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 761 761 1,867
Less than 12 months - Unrealized Losses (20) (20) (86)
More than 12 months - Fair Value 92 92 19
More than 12 months - Unrealized Losses (7) (7) (3)
Common and preferred stock [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 170 170 76
Available-for-sale - Noncurrent 2,044 2,044 1,713
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 208 208 750
Less than 12 months - Unrealized Losses (7) (7) (70)
More than 12 months - Fair Value 4 4 4
More than 12 months - Unrealized Losses 0 0 0
Equity mutual funds and exchange-traded funds [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 0 0 0
Available-for-sale - Noncurrent 1,296 1,296 845
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 159 159
Less than 12 months - Unrealized Losses (5) (5)
More than 12 months - Fair Value 0 0
More than 12 months - Unrealized Losses 0 0
Debt mutual funds [Member]
Available-for-sale Securities [Abstract]
Available-for-sale - Current 1,332 1,332 1,327
Available-for-sale - Noncurrent 0 0 0
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]
Less than 12 months - Fair Value 318 318
Less than 12 months - Unrealized Losses (1) (1)
More than 12 months - Fair Value 1 1
More than 12 months - Unrealized Losses 0 0
Equity securities [Member]
Available-for-sale Securities [Abstract]
Cost 2,849 2,849 2,426
Unrealized Gains 673 673 278
Unrealized Losses (12) (12) (70)
Fair Value 3,510 3,510 2,634
Debt securities [Member]
Available-for-sale Securities [Abstract]
Cost 15,170 15,170 12,179
Unrealized Gains 432 432 294
Unrealized Losses (44) (44) (132)
Fair Value $ 15,558 $ 15,558 $ 12,341
------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b Content-Location: file:///C:/fe65e67b_3c25_4d08_ba8a_3bba562a119b/Worksheets/filelist.xml Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" ------=_NextPart_fe65e67b_3c25_4d08_ba8a_3bba562a119b--