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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
(State or other jurisdiction of
incorporation or organization)
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95-3685934
(I.R.S. Employer
Identification No.)
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5775 Morehouse Drive
San Diego, California
(Address of principal executive offices)
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92121-1714
(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common stock, $0.0001 par value
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NASDAQ Stock Market LLC
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Large Accelerated Filer
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þ
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Accelerated Filer
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Non-Accelerated Filer
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o
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(Do not check if a smaller reporting company)
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Smaller Reporting Company
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o
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QUALCOMM INCORPORATED
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Form 10-K
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For the Fiscal Year Ended
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September 27, 2015
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Index
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Page
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•
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CDMA2000 revisions A through E
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•
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1xEV-DO revisions A through C
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WCDMA/HSPA releases 4 through 12
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TD-SCDMA releases 4 through 12
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LTE-U, which relies on an LTE control carrier based on 3GPP Release 10/11/12, uses carrier aggregation to combine unlicensed and licensed spectrum and will be used in early mobile operator deployments in countries such as the United States, Korea and India.
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Licensed Assisted Access (LAA), which is part of 3GPP Release 13, also aggregates unlicensed and licensed spectrum.
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MuLTEfire will operate solely in unlicensed spectrum without a licensed anchor channel.
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graphics and display processing functionality;
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video coding based on H.264 standards, which has already been deployed commercially, and its successor, H.265, or high-efficiency video codec, which will be deployed to support ultra-high definition (4K) video content;
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audio coding, including for multimedia use and for voice/speech use (also known as Vocoding);
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camera and camcorder functions;
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system user and interface features;
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security and content protection systems;
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volatile (LP-DDR2, 3, 4) and non-volatile (eMMC) memory and related controllers; and
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power management systems and batteries.
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QCT
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QTL
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QSI
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||||||
2015
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$
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17,154
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$
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7,947
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$
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4
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As a percent of total
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68
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%
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31
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%
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—
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%
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|||
2014
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$
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18,665
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$
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7,569
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$
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—
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As a percent of total
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70
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%
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29
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%
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—
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%
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2013
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$
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16,715
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$
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7,554
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$
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—
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As a percent of total
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67
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%
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30
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%
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—
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%
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•
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Our Governance.
We aim to demonstrate accountability, transparency, integrity and ethical business practices throughout our operations and interactions with our stakeholders.
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•
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Our Products.
We strive to meet or exceed industry standards for product responsibility and supplier management.
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Our Workplace.
We endeavor to provide a safe and healthy work environment where diversity is embraced and various opportunities for training, growth and advancement are encouraged for all employees.
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•
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Our Community.
We have strategic relationships with a wide range of local organizations and programs that develop and strengthen communities worldwide.
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•
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Our Environment.
We aim to expand our operations while minimizing our carbon footprint, conserving water and reducing waste.
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Wireless Reach.
We invest in strategic projects that foster entrepreneurship, aid in public safety, enhance delivery of health care, enrich teaching and learning and improve environmental sustainability through the use of advanced wireless technologies.
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•
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wireless operators and industries beyond traditional cellular communications deploy alternative technologies;
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wireless operators delay 3G and 3G/4G multimode network deployments, expansions or upgrades and/or delay moving 2G customers to 3G, 3G/4G multimode or 4G wireless devices;
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LTE, an OFDMA-based 4G wireless technology, is not more widely deployed or further commercial deployment is delayed;
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government regulators delay making sufficient spectrum available for 3G and/or 3G/4G networks, thereby restricting the expansion of 3G/4G wireless connectivity to keep pace with consumer demand;
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wireless operators are unable to drive improvements in 3G or 3G/4G multimode network performance and/or capacity;
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our customers’ and licensees’ revenues and sales of products, particularly premium-tier products, and services using these technologies do not grow or do not grow as quickly as anticipated due to, for example, the maturity of smartphone penetration in developed regions (where premium-tier products are common) or a reduction in the rate of device replacements by consumers; and/or
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•
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we are unable to drive the adoption of our products and services into networks and devices based on CDMA, OFDMA and other communications technologies.
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differentiate our integrated circuit products with innovative technologies across multiple products and features (e.g., modem, radio frequency front end, central, graphics and/or other processors, camera and connectivity) and with smaller geometry process technologies that drive performance;
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develop and offer integrated circuit products at competitive cost and price points to effectively cover both emerging and developed geographic regions and all device tiers;
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continue to drive the adoption of our integrated circuit products into the most popular device models and across a broad spectrum of devices, such as smartphones, tablets, automobiles, wearable and other connected devices and infrastructure products;
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maintain and/or accelerate demand for our integrated circuit products at the premium device tier, while increasing the adoption of our products in mid- and low-tier devices and in the turnkey product channel, in part by strengthening our integrated circuit product roadmap for, and developing channel relationships in, emerging geographic regions, such as China and India, and by providing turnkey products, which incorporate our integrated circuits, for low- and mid-tier smartphones and tablets;
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continue to be a leader in 4G technology evolution, including expansion of our LTE-based single mode licensing program, and continue to innovate and introduce 4G turnkey, integrated products and services that differentiate us from our competition;
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be a leader serving original equipment manufacturers, high level operating systems (HLOS) providers, operators and other industry participants as competitors, new industry entrants and other factors continue to affect the industry landscape;
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be a preferred partner (and sustain preferred relationships) providing integrated circuit products that support multiple operating system and infrastructure platforms to industry participants that effectively commercialize new devices using these platforms;
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increase and/or accelerate demand for our wired and wireless connectivity products, including networking products for consumers, carriers and enterprise equipment and connected devices;
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identify potential acquisition targets that will grow or sustain our business or address strategic needs, reach agreement on terms acceptable to us and effectively integrate these new businesses and/or technologies;
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create stand-alone value and/or contribute to the success of our existing businesses through acquisitions and other investments (and/or by developing customer, licensee and/or vendor relationships) in new industry segments and/or disruptive technologies, products and/or services (such as products for the connected home and the Internet of Things, automotive, networking, mobile computing, mobile health, machine learning, including robotics, and wireless charging, among others);
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become a leading supplier of radio frequency front end products, which are designed to address cellular radio frequency band fragmentation while improving radio frequency performance and assist original equipment manufacturers in developing multiband, multimode mobile devices; and/or
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continue to develop brand recognition to effectively compete against better known companies in mobile computing and other consumer driven segments and to deepen our presence in significant emerging geographic regions.
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a reduction, interruption, delay or limitation in our product supply sources;
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a failure by our suppliers to procure raw materials or to provide or allocate adequate manufacturing or test capacity for our products;
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our suppliers’ inability to react to shifts in product demand or an increase in raw material or component prices;
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the loss of a supplier or the inability of a supplier to meet performance or quality specifications or delivery schedules; and/or
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additional expense and/or production delays as a result of qualifying a new supplier and commencing volume production or testing in the event of a loss of or a decision to add or change a supplier.
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requiring us to use cash to pay the principal of and interest on our indebtedness, thereby reducing the amount of cash flow available for other purposes;
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limiting our ability to obtain additional financing for working capital, capital expenditures, acquisitions, stock repurchases, dividends or other general corporate and other purposes;
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limiting our flexibility in planning for, or reacting to, changes in our business and our industry; and/or
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increasing our vulnerability to interest rate fluctuations to the extent a portion of our debt has variable interest rates.
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Our products and those of our customers and licensees that are sold outside the United States may become less price-competitive, which may result in reduced demand for those products and/or downward pressure on average selling prices;
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Certain of our revenues, such as royalties, that are derived from licensee or customer sales denominated in foreign currencies could decrease;
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Our foreign suppliers may raise their prices if they are impacted by currency fluctuations, resulting in higher than expected costs and lower margins; and/or
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Foreign exchange hedging transactions that we engage in to reduce the impact of currency fluctuations may require the payment of structuring fees, limit the U.S. dollar value of royalties from licensees’ sales that are denominated in foreign currencies, cause earnings volatility if the hedges do not qualify for hedge accounting and expose us to counterparty risk if the counterparty fails to perform.
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United States
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Other Countries
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Total
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Owned facilities
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4.9
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0.1
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5.0
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Leased facilities
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2.3
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2.9
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5.2
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Total
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7.2
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3.0
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10.2
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High ($)
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Low ($)
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Dividends ($)
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2014
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First quarter
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74.19
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65.47
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0.35
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Second quarter
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79.72
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70.98
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0.35
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Third quarter
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81.66
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76.77
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0.42
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Fourth quarter
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81.97
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71.82
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0.42
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2015
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First quarter
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78.53
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67.67
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0.42
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Second quarter
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75.60
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62.26
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0.42
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Third quarter
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71.90
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64.60
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0.48
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Fourth quarter
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66.05
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52.39
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0.48
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Total Number of
Shares Purchased
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Average Price Paid Per Share (1)
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Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
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Approximate Dollar Value of Shares that May Yet Be
Purchased Under the Plans or Programs
(2)
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(In thousands)
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(In thousands)
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(In millions)
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June 29, 2015 to July 26, 2015
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8,946
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$
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63.71
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8,946
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$
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8,568
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July 27, 2015 to August 23, 2015
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9,531
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62.95
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9,531
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7,968
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August 24, 2015 to September 27, 2015
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Accelerated share repurchases (3)
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20,539
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20,539
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6,908
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Other repurchases
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19,030
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55.70
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19,030
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6,908
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Total
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58,046
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59.46
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58,046
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(1)
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Average Price Paid Per Share excludes cash paid for commissions.
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(2)
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On
March 9, 2015
, we announced a repurchase program authorizing us to repurchase up to
$15 billion
of our common stock. At
September 27, 2015
,
$6.9 billion
remained authorized for repurchase. The stock repurchase program has no expiration date. Since
September 27, 2015
, we repurchased and retired
24.6 million
shares of common stock for
$1.4 billion
.
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(3)
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In the third quarter of fiscal 2015, we entered into two accelerated share repurchase agreements (ASR Agreements) to repurchase an aggregate of
$5.0 billion
of our common stock and received an initial delivery of
57.7 million
shares. During the
fourth
quarter of fiscal
2015
, the ASR Agreements were completed, and an additional
20.5 million
shares were delivered to us, comprising the final delivery of shares under the ASR Agreements. In total,
78.3 million
shares were delivered to us under the ASR agreements.
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Years Ended (1)
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September 27, 2015
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September 28, 2014
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September 29, 2013
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September 30, 2012
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September 25, 2011
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(In millions, except per share data)
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Statement of Operations Data:
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Revenues
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$
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25,281
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$
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26,487
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$
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24,866
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$
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19,121
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$
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14,957
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Operating income
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5,776
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7,550
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7,230
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5,682
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5,026
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Income from continuing operations
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5,268
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7,534
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6,845
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5,283
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4,555
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Discontinued operations, net of income taxes
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—
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430
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—
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776
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(313
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)
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Net income attributable to Qualcomm
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5,271
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7,967
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6,853
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6,109
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4,260
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Per Share Data:
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Basic earnings (loss) per share attributable to Qualcomm:
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Continuing operations
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$
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3.26
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$
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4.48
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$
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3.99
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$
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3.14
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$
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2.76
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Discontinued operations
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—
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0.25
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—
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0.45
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(0.19
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)
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Net income
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3.26
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4.73
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3.99
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3.59
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2.57
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Diluted earnings (loss) per share attributable to Qualcomm:
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Continuing operations
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3.22
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4.40
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3.91
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3.06
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2.70
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|||||
Discontinued operations
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—
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0.25
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—
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0.45
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(0.18
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)
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|||||
Net income
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3.22
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4.65
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3.91
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3.51
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2.52
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Dividends per share announced
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1.80
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1.54
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1.20
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0.93
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0.81
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Balance Sheet Data:
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Cash, cash equivalents and marketable securities
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$
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30,947
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$
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32,022
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$
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29,406
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$
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26,837
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$
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20,913
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Total assets
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50,796
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48,574
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45,516
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43,012
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36,422
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|||||
Loans and debentures (2)
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—
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—
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—
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1,064
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994
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Short-term debt (3)
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1,000
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—
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—
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—
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—
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|||||
Long-term debt (4)
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9,969
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—
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—
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—
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—
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|||||
Other long-term liabilities (5)
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817
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|
428
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550
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|
426
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620
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|||||
Total stockholders’ equity
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31,414
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|
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39,166
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36,087
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33,545
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26,972
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(1)
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Our fiscal year ends on the last Sunday in September. The fiscal years ended
September 27, 2015
,
September 28, 2014
,
September 29, 2013
and
September 25, 2011
each included 52 weeks. The fiscal year ended
September 30, 2012
included 53 weeks.
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(2)
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Loans and debentures were included in liabilities held for sale in the consolidated balance sheet as of September 30, 2012.
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(3)
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Short-term debt was comprised of outstanding commercial paper.
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(4)
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Long-term debt was comprised of floating-and fixed-rate notes.
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(5)
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Other long-term liabilities in this balance sheet data exclude unearned revenues.
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(1)
|
According to GSMA Intelligence estimates as of
November 2, 2015
for the quarter ended September 30, 2015 (estimates excluded Wireless Local Loop).
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(2)
|
Total reported device sales is the sum of all reported sales in U.S. dollars (as reported to us by our licensees) of all licensed CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period (collectively, 3G/4G devices). Not all licensees report sales the same way (e.g., some licensees report sales net of permitted deductions, including transportation, insurance, packing costs and other items, while other licensees report sales and then identify the amount of permitted deductions in their reports), and the way in which licensees report such information may change from time to time. In addition, certain licensees may not report (in the quarter in which they are contractually obligated to report) their sales of certain types of subscriber units, which (as a result of audits, legal actions or for other reasons) may be reported in a subsequent quarter. Accordingly, total reported device sales for a particular period may include prior period activity that was not reported by the licensee until such particular period.
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(3)
|
Free cash flow, a non-GAAP financial measure, is defined as net cash provided by operating activities less capital expenditures. See “Non-GAAP Financial Information.”
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•
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Our business has been impacted by changing industry dynamics, including: an increased shift in share among our customers within the premium tier, which will continue to negatively impact sales of our integrated Snapdragon processors and skew our product mix towards lower-margin modem chipsets in this tier; an increased use of internally-developed integrated circuit products by certain of our OEM (original equipment manufacturer) customers, which has led to a decline in share at a large customer; and the acceleration of intense competition in the low-tier, particularly in China. We anticipate that our results of operations, particularly for our semiconductor business, QCT, will continue to be adversely impacted by these factors into the next fiscal year.
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•
|
China continues to present significant opportunities for us, particularly with the rollout of 3G/4G LTE multimode. We expect the rollout of 4G services in China will encourage competition and growth, bring the benefits of 3G/4G LTE multimode to consumers, encourage consumers to replace 2G (GSM) and 3G devices and enable new opportunities beyond mobile applications (e.g., machine-to-machine).
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•
|
In February 2015, we reached a resolution with the NDRC regarding its investigation and agreed to implement a rectification plan that modifies certain of our business practices in China. The rectification plan provides, among other things, that for licenses of only our 3G and 4G essential Chinese patents for branded devices sold for use in China starting on January 1, 2015 (and reported to us starting in the third quarter of fiscal 2015), we will charge running royalties at royalty rates of 5% for 3G CDMA or WCDMA devices (including multimode 3G/4G devices) and 3.5% for 4G devices that do not implement CDMA or WCDMA (including 3-mode LTE-TDD devices), in each case using a royalty base of 65% of the net selling price.
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•
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Despite the resolution of the NDRC investigation, China continues to present significant challenges for us. We continue to believe that certain licensees in China are not fully complying with their contractual obligations to report their sales of licensed products to us (which includes 3G/4G units that we believe are not being reported by certain licensees), and certain companies, including unlicensed companies, are delaying execution of new license agreements. We continue to make progress with licensees executing agreements based on the new China terms and with several other licensees informing us that they intend to retain the terms of their existing agreements. Negotiations with certain other licensees and unlicensed companies are ongoing, and we expect it will take some time to conclude these negotiations. We believe that the conclusion of new agreements with these licensees will result in improved reporting by these licensees, including with respect to sales of three-mode devices (i.e., devices that implement GSM, TD-SCDMA and LTE-TDD) sold in China. However, litigation and/or other actions may be necessary to compel licensees to report and pay the required royalties for sales they have not previously reported and to compel unlicensed companies to execute new licenses.
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•
|
We continue to invest significant resources toward advancements in 3G, 3G/4G multimode and 4G LTE technologies, OFDM-based WLAN technologies, audio and video codecs, wireless baseband chips, our converged computing/communications (Snapdragon) chips, graphics, connectivity, multimedia products, software and services. We are also investing in targeted opportunities that utilize our existing technical and business expertise to deploy new business models and enter into new industry segments, such as products for the connected home and the Internet of Things; automotive; networking; mobile computing; small cells and addressing the challenge of meeting the increased demand for data; very high speed connectivity; data centers; mobile health; wireless charging; and machine learning, including robotics.
|
•
|
We expect that the increased availability of low-tier 3G/4G smartphone products will help enable further expansion of 3G and 3G/4G multimode in emerging regions, particularly in China.
|
•
|
We expect that 3G/4G device prices will continue to vary broadly due to the increased penetration of smartphones combined with competition throughout the world at all price tiers. Additionally, varying rates of economic growth by region and stronger growth of device shipments in emerging regions as compared to developed regions, are expected to continue to impact the average and range of selling prices of 3G/4G devices.
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•
|
In the fourth quarter of fiscal 2015, we announced a Strategic Realignment Plan designed to improve execution, enhance financial performance and drive profitable growth as we work to create sustainable long-term value for stockholders. The core elements of this plan include: (a) right-sizing our cost structure; (b) reviewing alternatives to our corporate and financial structure; (c) reaffirming our plan to return significant capital to stockholders; (d) adding new Directors with complementary skills while reducing the average tenure of our Board of Directors; (e) further aligning executive compensation with performance and stockholder return objectives; and (f) making disciplined investments in areas that build upon our core technologies and capabilities and offer attractive growth opportunities and returns.
|
•
|
In order to right-size our cost structure, we are planning to reduce our annual costs from fiscal 2015 levels (adjusted for variable compensation) of
$7.3 billion
(as announced on July 22, 2015) by approximately
$1.1 billion
through a series of targeted reductions across Qualcomm’s businesses, particularly in QCT. We also plan to reduce annual share-based compensation grants by approximately
$300 million
. We expect these cost reduction initiatives to be fully implemented by the end of fiscal 2016. In connection with this plan, we expect to incur approximately
$350 million
to
$450 million
in restructuring and restructuring-related charges, of which
$190 million
were incurred in the fourth quarter of fiscal 2015. Restructuring and restructuring-related charges include severance costs, asset impairment charges, consultancy fees, lease termination costs, acceleration of depreciation and other costs.
|
Revenues (in millions)
|
Year Ended
|
|
|
|
|
||||||||||||||
|
September 27, 2015
|
|
September 28, 2014
|
|
September 29, 2013
|
|
2015 vs. 2014 Change
|
|
2014 vs. 2013 Change
|
||||||||||
Equipment and services
|
$
|
17,079
|
|
|
$
|
18,625
|
|
|
$
|
16,988
|
|
|
$
|
(1,546
|
)
|
|
$
|
1,637
|
|
Licensing
|
8,202
|
|
|
7,862
|
|
|
7,878
|
|
|
340
|
|
|
(16
|
)
|
|||||
|
$
|
25,281
|
|
|
$
|
26,487
|
|
|
$
|
24,866
|
|
|
$
|
(1,206
|
)
|
|
$
|
1,621
|
|
Costs and Expenses (in millions)
|
Year Ended
|
|
|
|
|
||||||||||||||
|
September 27, 2015
|
|
September 28, 2014
|
|
September 29, 2013
|
|
2015 vs. 2014 Change
|
|
2014 vs. 2013 Change
|
||||||||||
Cost of equipment and services (E&S) revenues
|
$
|
10,378
|
|
|
$
|
10,686
|
|
|
$
|
9,820
|
|
|
$
|
(308
|
)
|
|
$
|
866
|
|
Cost as % of E&S revenues
|
61
|
%
|
|
57
|
%
|
|
58
|
%
|
|
|
|
|
|
Year Ended
|
|
|
|
|
||||||||||||||
|
September 27, 2015
|
|
September 28, 2014
|
|
September 29, 2013
|
|
2015 vs. 2014 Change
|
|
2014 vs. 2013 Change
|
||||||||||
Research and development
|
$
|
5,490
|
|
|
$
|
5,477
|
|
|
$
|
4,967
|
|
|
$
|
13
|
|
|
$
|
510
|
|
% of revenues
|
22
|
%
|
|
21
|
%
|
|
20
|
%
|
|
|
|
|
|||||||
Selling, general, and administrative
|
$
|
2,344
|
|
|
$
|
2,290
|
|
|
$
|
2,518
|
|
|
$
|
54
|
|
|
$
|
(228
|
)
|
% of revenues
|
9
|
%
|
|
9
|
%
|
|
10
|
%
|
|
|
|
|
|||||||
Other
|
$
|
1,293
|
|
|
$
|
484
|
|
|
$
|
331
|
|
|
$
|
809
|
|
|
$
|
153
|
|
Income Tax Expense (in millions)
|
Year Ended
|
|
|
|
|
||||||||||||||
|
September 27, 2015
|
|
September 28, 2014
|
|
September 29, 2013
|
|
2015 vs. 2014 Change
|
|
2014 vs. 2013 Change
|
||||||||||
Income tax expense
|
$
|
1,219
|
|
|
$
|
1,244
|
|
|
$
|
1,349
|
|
|
$
|
(25
|
)
|
|
$
|
(105
|
)
|
Effective tax rate
|
19
|
%
|
|
14
|
%
|
|
16
|
%
|
|
5
|
%
|
|
(2
|
%)
|
|
Year Ended
|
|||||||
|
September 27, 2015
|
|
September 28, 2014
|
|
September 29, 2013
|
|||
Expected income tax provision at federal statutory tax rate
|
35
|
%
|
|
35
|
%
|
|
35
|
%
|
Benefits from foreign income taxed at other than U.S. rates
|
(14
|
%)
|
|
(20
|
%)
|
|
(17
|
%)
|
Benefits related to the research and development tax credits
|
(2
|
%)
|
|
(1
|
%)
|
|
(2
|
%)
|
Effective tax rate
|
19
|
%
|
|
14
|
%
|
|
16
|
%
|
(1)
|
Earnings (loss) before taxes.
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|||||||
Cash, cash equivalents and marketable securities
|
$
|
30,947
|
|
|
$
|
32,022
|
|
|
$
|
(1,075
|
)
|
|
(3
|
%)
|
Accounts receivable, net
|
1,964
|
|
|
2,412
|
|
|
(448
|
)
|
|
(19
|
%)
|
|||
Inventories
|
1,492
|
|
|
1,458
|
|
|
34
|
|
|
2
|
%
|
|||
Short-term debt
|
1,000
|
|
|
—
|
|
|
1,000
|
|
|
|
||||
Long-term debt
|
9,969
|
|
|
—
|
|
|
9,969
|
|
|
|
||||
Net cash provided by operating activities
|
5,506
|
|
|
8,887
|
|
|
(3,381
|
)
|
|
(38
|
%)
|
|||
Net cash used by investing activities
|
(3,572
|
)
|
|
(1,639
|
)
|
|
(1,933
|
)
|
|
|
||||
Net cash used by financing activities
|
(2,261
|
)
|
|
(5,480
|
)
|
|
3,219
|
|
|
|
•
|
In connection with our Strategic Realignment Plan, we expect to incur a total of approximately
$350 million
to
$450 million
in restructuring and restructuring-related charges, the majority of which will result in future cash payments.
|
•
|
Our purchase obligations at
September 27, 2015
, some of which relate to research and development activities and capital expenditures, totaled
$3.0 billion
and
$953 million
for fiscal 2016 and 2017, respectively, and
$1.6 billion
thereafter.
|
•
|
Our research and development expenditures were
$5.5 billion
during fiscal
2015
and
2014
, and we expect to continue to invest heavily in research and development for new technologies, applications and services for voice and data communications, primarily in the wireless industry.
|
•
|
Cash outflows for capital expenditures were
$994 million
and
$1.2 billion
during fiscal
2015
and
2014
, respectively. We expect to continue to incur capital expenditures in the future to support our business, including research and development activities. Future capital expenditures may be impacted by transactions that are currently not forecasted.
|
•
|
We expect to continue making strategic investments and acquisitions, the amounts of which could vary significantly, to open new opportunities for our technologies, obtain development resources, grow our patent portfolio or pursue new businesses.
|
|
|
Stock Repurchase Program
|
|
Dividends
|
|
Total
|
|||||||||||||||||
|
|
Shares
|
|
Average Price Paid Per Share
|
|
Amount
|
|
Per Share
|
|
Amount
|
|
Amount
|
|||||||||||
2015
|
|
172.4
|
|
|
$
|
65.21
|
|
|
$
|
11,245
|
|
|
$
|
1.80
|
|
|
$
|
2,880
|
|
|
$
|
14,125
|
|
2014
|
|
60.3
|
|
|
75.48
|
|
|
4,548
|
|
|
1.54
|
|
|
2,586
|
|
|
7,134
|
|
|||||
2013
|
|
71.7
|
|
|
64.28
|
|
|
4,609
|
|
|
1.20
|
|
|
2,055
|
|
|
6,664
|
|
|
Total
|
|
2016
|
|
2017-2018
|
|
2019-2020
|
|
Beyond
2020
|
|
No
Expiration
Date
|
||||||||||||
Purchase obligations (1)
|
$
|
5,601
|
|
|
$
|
3,017
|
|
|
$
|
1,695
|
|
|
$
|
880
|
|
|
$
|
9
|
|
|
$
|
—
|
|
Operating lease obligations
|
281
|
|
|
99
|
|
|
114
|
|
|
44
|
|
|
24
|
|
|
—
|
|
||||||
Equity funding and financing commitments (2)
|
132
|
|
|
82
|
|
|
32
|
|
|
—
|
|
|
15
|
|
|
3
|
|
||||||
Long-term debt
|
10,000
|
|
|
—
|
|
|
1,500
|
|
|
2,000
|
|
|
6,500
|
|
|
—
|
|
||||||
Other long-term liabilities (3)(4)
|
246
|
|
|
2
|
|
|
124
|
|
|
110
|
|
|
5
|
|
|
5
|
|
||||||
Total contractual obligations
|
$
|
16,260
|
|
|
$
|
3,200
|
|
|
$
|
3,465
|
|
|
$
|
3,034
|
|
|
$
|
6,553
|
|
|
$
|
8
|
|
(1)
|
Total purchase obligations include commitments to purchase integrated circuit product inventories of
$2.5 billion
,
$787 million
,
$706 million
,
$680 million
and
$166 million
for each of the subsequent five years from fiscal 2016 through 2020, respectively; there were
no
such purchase commitments thereafter. Integrated circuit product inventory obligations represent purchase commitments for semiconductor die, finished goods and manufacturing services, such as wafer bump, probe, assembly and final test. Under our manufacturing relationships with our foundry suppliers and assembly and test service providers, cancelation of outstanding purchase orders is generally allowed but requires payment of all costs incurred through the date of cancelation, and in some cases, incremental fees related to capacity underutilization.
|
(2)
|
Certain of these commitments do not have fixed funding dates and are subject to certain conditions. Commitments represent the maximum amounts to be funded under these arrangements; actual funding may be in lesser amounts or not at all.
|
(3)
|
Certain long-term liabilities reflected on our balance sheet, such as unearned revenues, are not presented in this table because they do not require cash settlement in the future. Other long-term liabilities as presented in this table include the related current portions.
|
(4)
|
Our consolidated balance sheet at
September 27, 2015
included $23 million in noncurrent liabilities for uncertain tax positions, some of which may result in cash payment. The future payments related to uncertain tax positions have not been presented in the table above due to the uncertainty of the amounts and timing of cash settlement with the taxing authorities.
|
Net cash provided by operating activities (GAAP)
|
$
|
5,506
|
|
Capital expenditures
|
(994
|
)
|
|
Free cash flow (non-GAAP)
|
$
|
4,512
|
|
|
|
||
Cash paid to repurchase shares of our common stock (before commissions)
|
$
|
11,245
|
|
Cash dividends paid
|
2,880
|
|
|
Total return of capital to stockholders
|
14,125
|
|
|
Less: common stock repurchases related to $10 billion stock repurchase commitment
|
8,100
|
|
|
Adjusted return of capital, excluding repurchases related to $10 billion stock repurchase commitment
|
$
|
6,025
|
|
|
|
||
Total return of capital to stockholders as a percentage of net cash provided by operating activities (GAAP)
|
257
|
%
|
|
Total return of capital to stockholders as a percentage of free cash flow (non-GAAP)
|
313
|
%
|
|
Adjusted return of capital to stockholders as a percentage of free cash flow (non-GAAP)
|
134
|
%
|
i.
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
|
ii.
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
|
iii.
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements.
|
|
|
Page
|
|
|
|
|
Number
|
|
|
(1) Report of Independent Registered Public Accounting Firm
|
|
F-1
|
|
|
Consolidated Balance Sheets at September 27, 2015 and September 28, 2014
|
|
F-2
|
|
|
Consolidated Statements of Operations for Fiscal 2015, 2014 and 2013
|
|
F-3
|
|
|
Consolidated Statements of Comprehensive Income for Fiscal 2015, 2014 and 2013
|
|
F-4
|
|
|
Consolidated Statements of Cash Flows for Fiscal 2015, 2014 and 2013
|
|
F-5
|
|
|
Consolidated Statements of Stockholders’ Equity for Fiscal 2015, 2014 and 2013
|
|
F-6
|
|
|
Notes to Consolidated Financial Statements
|
|
F-7
|
|
|
(2) Schedule II - Valuation and Qualifying Accounts
|
|
S-1
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No./ Film No.
|
|
Date of First Filing
|
|
Exhibit Number
|
|
Filed Herewith
|
2.1
|
|
Rule 2.7 Announcement, Recommended Cash Acquisition of CSR plc by Qualcomm Global Trading Pte. Ltd.
|
|
8-K
|
|
000-19528/ 141156425
|
|
10/15/2014
|
|
2.1
|
|
|
3.1
|
|
Restated Certificate of Incorporation, as amended.
|
|
10-Q
|
|
000-19528/ 12766084
|
|
4/18/2012
|
|
3.1
|
|
|
3.2
|
|
Certificate of Elimination of the Series A Junior Participating Preferred Stock.
|
|
8-K
|
|
000-19528/ 151134143
|
|
9/30/2015
|
|
3.2
|
|
|
3.3
|
|
Amended and Restated Bylaws.
|
|
8-K
|
|
000-19528/ 12958032
|
|
7/11/2012
|
|
3.4
|
|
|
4.1
|
|
Indenture, dated May 20, 2015, between the Company and U.S. Bank National Association, as trustee.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.1
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No./ Film No.
|
|
Date of First Filing
|
|
Exhibit Number
|
|
Filed Herewith
|
4.2
|
|
Officers’ Certificate, dated May 20, 2015, for the Floating Rate Notes due 2018, the Floating Rate Notes due 2020, the 1.400% Notes due 2018, the 2.250% Notes due 2020, the 3.000% Notes due 2022, the 3.450% Notes due 2025, the 4.650% Notes due 2035 and the 4.800% Notes due 2045.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.2
|
|
|
4.3
|
|
Form of Floating Rate Notes due 2018.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.3
|
|
|
4.4
|
|
Form of Floating Rate Notes due 2020.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.4
|
|
|
4.5
|
|
Form of 1.400% Notes due 2018.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.5
|
|
|
4.6
|
|
Form of 2.250% Notes due 2020.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.6
|
|
|
4.7
|
|
Form of 3.000% Notes due 2022.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.7
|
|
|
4.8
|
|
Form of 3.450% Notes due 2025.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.8
|
|
|
4.9
|
|
Form of 4.650% Notes due 2035.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.9
|
|
|
4.10
|
|
Form of 4.800% Notes due 2045.
|
|
8-K
|
|
000-19528/ 15880967
|
|
5/21/2015
|
|
4.10
|
|
|
10.1
|
|
Form of Indemnity Agreement between the Company and its directors and officers. (1)(2)
|
|
|
|
|
|
|
|
|
|
X
|
10.2
|
|
Form of Stock Option Grant Notice and Agreement under the 2001 Stock Option Plan. (1)
|
|
10-Q
|
|
000-19528/ 04924948
|
|
7/21/2004
|
|
10.40
|
|
|
10.3
|
|
2001 Stock Option Plan, as amended. (1)
|
|
10-Q
|
|
000-19528/ 04746204
|
|
4/21/2004
|
|
10.55
|
|
|
10.4
|
|
Form of Grant Notice and Stock Option Agreement under the 2006 Long-Term Incentive Plan. (1)
|
|
10-K
|
|
000-19528/ 091159213
|
|
11/5/2009
|
|
10.84
|
|
|
10.5
|
|
Atheros Communications, Inc. 2004 Stock Incentive Plan, as amended. (1)
|
|
S-8
|
|
333-174649/ 11886141
|
|
6/1/2011
|
|
99.1
|
|
|
10.6
|
|
Resolutions Amending Atheros Communications, Inc. Equity Plans. (1)
|
|
S-8
|
|
333-174649/ 11886141
|
|
6/1/2011
|
|
99.6
|
|
|
10.7
|
|
Form of Grant Notices and Global Employee Stock Option Agreement under the 2006 Long-Term Incentive Plan. (1)
|
|
10-K
|
|
000-19528/ 121186937
|
|
11/7/2012
|
|
10.104
|
|
|
10.8
|
|
Form of Grant Notices and Global Employee Restricted Stock Unit Agreement under the 2006 Long-Term Incentive Plan. (1)
|
|
10-K
|
|
000-19528/ 121186937
|
|
11/7/2012
|
|
10.105
|
|
|
10.9
|
|
2006 Long-Term Incentive Plan, as amended and restated. (1)
|
|
10-Q
|
|
000-19528/ 13779468
|
|
4/24/2013
|
|
10.112
|
|
|
10.10
|
|
Form of Aircraft Time Sharing Agreement. (1)
|
|
10-Q
|
|
000-19528/ 13983769
|
|
7/24/2013
|
|
10.114
|
|
|
10.11
|
|
Form of Executive Grant Notices and Executive Performance Stock Unit Agreements under the 2006 Long-Term Incentive Plan for the September 30, 2013 to September 27, 2015 performance periods. (1)
|
|
10-K
|
|
000-19528/ 131196747
|
|
11/6/2013
|
|
10.115
|
|
|
10.12
|
|
Form of Grant Notices and Non-Employee Director Restricted Stock Unit Agreements under the 2006 Long-Term Incentive Plan for non-employee directors residing in the United Kingdom and Hong Kong. (1)
|
|
10-K
|
|
000-19528/ 131196747
|
|
11/6/2013
|
|
10.117
|
|
|
10.13
|
|
Form of Executive Grant Notice and Executive Performance Stock Unit Agreement under the 2006 Long-Term Incentive Plan, which includes a September 30, 2013 to June 29, 2014 performance period. (1)
|
|
10-K
|
|
000-19528/ 131196747
|
|
11/6/2013
|
|
10.118
|
|
|
10.14
|
|
Form of Grant Notices and Non-Employee Director Deferred Stock Unit Agreements under the 2006 Long-Term Incentive Plan for non-employee directors residing in the United States and Spain. (1)
|
|
10-K
|
|
000-19528/ 131196747
|
|
11/6/2013
|
|
10.119
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No./ Film No.
|
|
Date of First Filing
|
|
Exhibit Number
|
|
Filed Herewith
|
10.15
|
|
Form of Annual Cash Incentive Plan Performance Unit Agreements. (1)
|
|
10-Q
|
|
000-19528/ 14557092
|
|
1/29/2014
|
|
10.120
|
|
|
10.16
|
|
Form of Non-Employee Director Deferred Stock Unit Grant Notices and Deferred Stock Unit Agreement under the 2006 Long-Term Incentive Plan for non-employee directors residing in Singapore. (1)
|
|
10-Q
|
|
000-19528/ 14988939
|
|
7/23/2014
|
|
10.122
|
|
|
10.17
|
|
Form of Executive Restricted Stock Unit Grant Notice and Executive Restricted Stock Unit Agreements under the 2006 Long-Term Incentive Plan, which includes a September 29, 2014 to March 29, 2015 performance period. (1)
|
|
10-Q
|
|
000-19528/ 14988939
|
|
7/23/2014
|
|
10.123
|
|
|
10.18
|
|
Non-Qualified Deferred Compensation Plan amended and restated effective September 29, 2014. (1)
|
|
10-Q
|
|
000-19528/ 15555092
|
|
1/28/2015
|
|
10.125
|
|
|
10.19
|
|
Non-Qualified Deferred Compensation Plan, as amended, effective January 1, 2016. (1)
|
|
8-K
|
|
000-19528/
151134109
|
|
9/30/2015
|
|
10.1
|
|
|
10.20
|
|
Amendment to 2006 Long-Term Incentive Plan, as amended and restated. (1)
|
|
10-Q
|
|
000-19528/ 15555092
|
|
1/28/2015
|
|
10.126
|
|
|
10.21
|
|
Form of Annual Cash Incentive Plan Performance Unit Agreements. (1)
|
|
10-Q
|
|
000-19528/ 15555092
|
|
1/28/2015
|
|
10.127
|
|
|
10.22
|
|
Amended and Restated QUALCOMM Incorporated 2001 Employee Stock Purchase Plan, as amended. (1)
|
|
10-Q
|
|
000-19528/ 151000141
|
|
7/22/2015
|
|
10.128
|
|
|
10.23
|
|
Revolving Credit Agreement among Qualcomm Incorporated, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer, dated as of February 18, 2015.
|
|
8-K
|
|
000-19528/ 15628813
|
|
2/18/2015
|
|
10.1
|
|
|
10.24
|
|
Master Confirmation - Accelerated Stock Buyback, dated as of May 20, 2015, between the Company and Goldman, Sachs & Co.
|
|
8-K
|
|
000-19528/ 15881368
|
|
5/21/2015
|
|
10.1
|
|
|
10.25
|
|
Master Confirmation - Accelerated Stock Buyback, dated as of May 20, 2015, between the Company and Morgan Stanley & Co. LLC.
|
|
8-K
|
|
000-19528/ 15881368
|
|
5/21/2015
|
|
10.2
|
|
|
10.26
|
|
Cooperation Agreement, dated as of July 21, 2015, between the Company and JANA Partners LLC.
|
|
8-K
|
|
000-19528/
151000188
|
|
7/22/2015
|
|
99.1
|
|
|
10.27
|
|
Form of Executive Performance Stock Unit Grant Notice and Executive Restricted Stock Unit agreement under the 2006 Long-Term Incentive Plan, which includes a September 29, 2014 to September 24, 2017 performance period. (1)
|
|
|
|
|
|
|
|
|
|
X
|
10.28
|
|
Form of Executive Performance Stock Unit Award Grant Notice and Executive Performance Stock Unit Award Grant Agreement under the 2006 Long-Term Incentive Plan, which includes a September 28, 2015 to September 28, 2018 performance period. (1)
|
|
|
|
|
|
|
|
|
|
X
|
12.1
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
|
|
|
|
|
|
|
|
X
|
21
|
|
Subsidiaries of the Registrant.
|
|
|
|
|
|
|
|
|
|
X
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
|
|
|
|
|
|
|
|
X
|
31.1
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Steve Mollenkopf.
|
|
|
|
|
|
|
|
|
|
X
|
31.2
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for George S. Davis.
|
|
|
|
|
|
|
|
|
|
X
|
32.1
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, for Steve Mollenkopf.
|
|
|
|
|
|
|
|
|
|
X
|
32.2
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, for George S. Davis.
|
|
|
|
|
|
|
|
|
|
X
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema.
|
|
|
|
|
|
|
|
|
|
X
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No./ Film No.
|
|
Date of First Filing
|
|
Exhibit Number
|
|
Filed Herewith
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
|
|
|
|
|
|
X
|
(1)
|
Indicates management contract or compensatory plan or arrangement required to be identified pursuant to Item 15(a).
|
(2)
|
Filed herewith since the previously filed document is not available via Edgar and given impending inability, pursuant to Item 10(d) of Regulation S-K, to incorporate the previously filed document by reference.
|
|
|
|
|
|
QUALCOMM Incorporated
|
||
|
|
|
|
|
By
|
/s/ Steve Mollenkopf
|
|
|
|
Steve Mollenkopf
|
|
|
|
Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Steve Mollenkopf
|
|
Chief Executive Officer and Director
|
|
November 4, 2015
|
Steve Mollenkopf
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ George S. Davis
|
|
Executive Vice President and Chief Financial Officer
|
|
November 4, 2015
|
George S. Davis
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ John F. Murphy
|
|
Senior Vice President and Chief Accounting Officer
|
|
November 4, 2015
|
John F. Murphy
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Barbara T. Alexander
|
|
Director
|
|
November 4, 2015
|
Barbara T. Alexander
|
|
|
|
|
|
|
|
|
|
/s/ Donald G. Cruickshank
|
|
Director
|
|
November 4, 2015
|
Donald G. Cruickshank
|
|
|
|
|
|
|
|
|
|
/s/ Raymond V. Dittamore
|
|
Director
|
|
November 4, 2015
|
Raymond V. Dittamore
|
|
|
|
|
|
|
|
|
|
/s/ Susan Hockfield
|
|
Director
|
|
November 4, 2015
|
Susan Hockfield
|
|
|
|
|
|
|
|
|
|
/s/ Thomas W. Horton
|
|
Director
|
|
November 4, 2015
|
Thomas W. Horton
|
|
|
|
|
|
|
|
|
|
/s/ Paul E. Jacobs
|
|
Chairman
|
|
November 4, 2015
|
Paul E. Jacobs
|
|
|
|
|
|
|
|
|
|
/s/ Sherry Lansing
|
|
Director
|
|
November 4, 2015
|
Sherry Lansing
|
|
|
|
|
|
|
|
|
|
/s/ Harish Manwani
|
|
Director
|
|
November 4, 2015
|
Harish Manwani
|
|
|
|
|
|
|
|
|
|
/s/ Mark D. McLaughlin
|
|
Director
|
|
November 4, 2015
|
Mark D. McLaughlin
|
|
|
|
|
|
|
|
|
|
/s/ Clark T. Randt, Jr.
|
|
Director
|
|
November 4, 2015
|
Clark T. Randt, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Francisco Ros
|
|
Director
|
|
November 4, 2015
|
Francisco Ros
|
|
|
|
|
|
|
|
|
|
/s/ Jonathan J. Rubinstein
|
|
Director
|
|
November 4, 2015
|
Jonathan J. Rubinstein
|
|
|
|
|
|
|
|
|
|
/s/ Marc I. Stern
|
|
Director
|
|
November 4, 2015
|
Marc I. Stern
|
|
|
|
|
|
|
|
|
|
/s/ Anthony J. Vinciquerra
|
|
Director
|
|
November 4, 2015
|
Anthony J. Vinciquerra
|
|
|
|
|
|
September 27,
2015 |
|
September 28,
2014 |
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
7,560
|
|
|
$
|
7,907
|
|
Marketable securities
|
9,761
|
|
|
9,658
|
|
||
Accounts receivable, net
|
1,964
|
|
|
2,412
|
|
||
Inventories
|
1,492
|
|
|
1,458
|
|
||
Deferred tax assets
|
635
|
|
|
577
|
|
||
Other current assets
|
687
|
|
|
401
|
|
||
Total current assets
|
22,099
|
|
|
22,413
|
|
||
Marketable securities
|
13,626
|
|
|
14,457
|
|
||
Deferred tax assets
|
1,453
|
|
|
1,174
|
|
||
Property, plant and equipment, net
|
2,534
|
|
|
2,487
|
|
||
Goodwill
|
5,479
|
|
|
4,488
|
|
||
Other intangible assets, net
|
3,742
|
|
|
2,580
|
|
||
Other assets
|
1,863
|
|
|
975
|
|
||
Total assets
|
$
|
50,796
|
|
|
$
|
48,574
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Trade accounts payable
|
$
|
1,300
|
|
|
$
|
2,183
|
|
Payroll and other benefits related liabilities
|
861
|
|
|
802
|
|
||
Unearned revenues
|
583
|
|
|
785
|
|
||
Short-term debt
|
1,000
|
|
|
—
|
|
||
Other current liabilities
|
2,356
|
|
|
2,243
|
|
||
Total current liabilities
|
6,100
|
|
|
6,013
|
|
||
Unearned revenues
|
2,496
|
|
|
2,967
|
|
||
Long-term debt
|
9,969
|
|
|
—
|
|
||
Other liabilities
|
817
|
|
|
428
|
|
||
Total liabilities
|
19,382
|
|
|
9,408
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 7)
|
|
|
|
||||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Qualcomm stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding
|
—
|
|
|
—
|
|
||
Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,524 and 1,669 shares issued and outstanding, respectively
|
—
|
|
|
7,736
|
|
||
Retained earnings
|
31,226
|
|
|
30,799
|
|
||
Accumulated other comprehensive income
|
195
|
|
|
634
|
|
||
Total Qualcomm stockholders’ equity
|
31,421
|
|
|
39,169
|
|
||
Noncontrolling interests
|
(7
|
)
|
|
(3
|
)
|
||
Total stockholders’ equity
|
31,414
|
|
|
39,166
|
|
||
Total liabilities and stockholders’ equity
|
$
|
50,796
|
|
|
$
|
48,574
|
|
|
Year Ended
|
||||||||||
|
September 27,
2015 |
|
September 28,
2014 |
|
September 29,
2013 |
||||||
Revenues:
|
|
|
|
|
|
||||||
Equipment and services
|
$
|
17,079
|
|
|
$
|
18,625
|
|
|
$
|
16,988
|
|
Licensing
|
8,202
|
|
|
7,862
|
|
|
7,878
|
|
|||
Total revenues
|
25,281
|
|
|
26,487
|
|
|
24,866
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of equipment and services revenues
|
10,378
|
|
|
10,686
|
|
|
9,820
|
|
|||
Research and development
|
5,490
|
|
|
5,477
|
|
|
4,967
|
|
|||
Selling, general and administrative
|
2,344
|
|
|
2,290
|
|
|
2,518
|
|
|||
Other
|
1,293
|
|
|
484
|
|
|
331
|
|
|||
Total costs and expenses
|
19,505
|
|
|
18,937
|
|
|
17,636
|
|
|||
Operating income
|
5,776
|
|
|
7,550
|
|
|
7,230
|
|
|||
Interest expense
|
(104
|
)
|
|
(5
|
)
|
|
(23
|
)
|
|||
Investment income, net (Note 2)
|
815
|
|
|
1,233
|
|
|
987
|
|
|||
Income from continuing operations before income taxes
|
6,487
|
|
|
8,778
|
|
|
8,194
|
|
|||
Income tax expense
|
(1,219
|
)
|
|
(1,244
|
)
|
|
(1,349
|
)
|
|||
Income from continuing operations
|
5,268
|
|
|
7,534
|
|
|
6,845
|
|
|||
Discontinued operations, net of income taxes (Note 11)
|
—
|
|
|
430
|
|
|
—
|
|
|||
Net income
|
5,268
|
|
|
7,964
|
|
|
6,845
|
|
|||
Net loss attributable to noncontrolling interests
|
3
|
|
|
3
|
|
|
8
|
|
|||
Net income attributable to Qualcomm
|
$
|
5,271
|
|
|
$
|
7,967
|
|
|
$
|
6,853
|
|
|
|
|
|
|
|
||||||
Basic earnings per share attributable to Qualcomm:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
3.26
|
|
|
$
|
4.48
|
|
|
$
|
3.99
|
|
Discontinued operations
|
—
|
|
|
0.25
|
|
|
—
|
|
|||
Net income
|
$
|
3.26
|
|
|
$
|
4.73
|
|
|
$
|
3.99
|
|
Diluted earnings per share attributable to Qualcomm:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
3.22
|
|
|
$
|
4.40
|
|
|
$
|
3.91
|
|
Discontinued operations
|
—
|
|
|
0.25
|
|
|
—
|
|
|||
Net income
|
$
|
3.22
|
|
|
$
|
4.65
|
|
|
$
|
3.91
|
|
Shares used in per share calculations:
|
|
|
|
|
|
||||||
Basic
|
1,618
|
|
|
1,683
|
|
|
1,715
|
|
|||
Diluted
|
1,639
|
|
|
1,714
|
|
|
1,754
|
|
|||
|
|
|
|
|
|
||||||
Dividends per share announced
|
$
|
1.80
|
|
|
$
|
1.54
|
|
|
$
|
1.20
|
|
|
Year Ended
|
||||||||||
|
September 27,
2015 |
|
September 28,
2014 |
|
September 29,
2013 |
||||||
Net income
|
$
|
5,268
|
|
|
$
|
7,964
|
|
|
$
|
6,845
|
|
Other comprehensive income (loss), net of income taxes:
|
|
|
|
|
|
||||||
Foreign currency translation (losses) gains
|
(47
|
)
|
|
1
|
|
|
(20
|
)
|
|||
Reclassification of foreign currency translation losses included in net income
|
—
|
|
|
1
|
|
|
11
|
|
|||
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of tax benefit of $19, $1 and $0, respectively
|
(35
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
Reclassification of net other-than-temporary losses on available-for-sale securities included in net income, net of tax benefit of $66, $55 and $26, respectively
|
121
|
|
|
101
|
|
|
47
|
|
|||
Net unrealized (losses) gains on other available-for-sale securities, net of tax benefit (expense) of $114, ($140) and ($11), respectively
|
(215
|
)
|
|
259
|
|
|
20
|
|
|||
Reclassification of net realized gains on available-for-sale securities included in net income, net of tax expense of $173, $252 and $102, respectively
|
(317
|
)
|
|
(462
|
)
|
|
(186
|
)
|
|||
Net unrealized gains on derivative instruments, net of tax expense of $0, $4 and $13, respectively
|
54
|
|
|
8
|
|
|
24
|
|
|||
Reclassification of net realized gains on derivative instruments, net of tax expense of $0, $14 and $5, respectively
|
—
|
|
|
(26
|
)
|
|
(9
|
)
|
|||
Total other comprehensive loss
|
(439
|
)
|
|
(119
|
)
|
|
(114
|
)
|
|||
Total comprehensive income
|
4,829
|
|
|
7,845
|
|
|
6,731
|
|
|||
Comprehensive loss attributable to noncontrolling interests
|
3
|
|
|
3
|
|
|
9
|
|
|||
Comprehensive income attributable to Qualcomm
|
$
|
4,832
|
|
|
$
|
7,848
|
|
|
$
|
6,740
|
|
|
Year Ended
|
||||||||||
|
September 27,
2015 |
|
September 28,
2014 |
|
September 29,
2013 |
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
5,268
|
|
|
$
|
7,964
|
|
|
$
|
6,845
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization expense
|
1,214
|
|
|
1,150
|
|
|
1,017
|
|
|||
Gain on sale of discontinued operations
|
—
|
|
|
(665
|
)
|
|
—
|
|
|||
Indefinite and long-lived asset impairment charges
|
317
|
|
|
642
|
|
|
192
|
|
|||
Income tax provision in excess of income tax payments
|
47
|
|
|
298
|
|
|
268
|
|
|||
Non-cash portion of share-based compensation expense
|
1,026
|
|
|
1,059
|
|
|
1,105
|
|
|||
Incremental tax benefits from share-based compensation
|
(103
|
)
|
|
(280
|
)
|
|
(231
|
)
|
|||
Net realized gains on marketable securities and other investments
|
(500
|
)
|
|
(826
|
)
|
|
(369
|
)
|
|||
Impairment losses on marketable securities and other investments
|
200
|
|
|
180
|
|
|
85
|
|
|||
Other items, net
|
(16
|
)
|
|
(17
|
)
|
|
(19
|
)
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
550
|
|
|
(281
|
)
|
|
(680
|
)
|
|||
Inventories
|
93
|
|
|
(155
|
)
|
|
(300
|
)
|
|||
Other assets
|
(793
|
)
|
|
108
|
|
|
(209
|
)
|
|||
Trade accounts payable
|
(908
|
)
|
|
619
|
|
|
307
|
|
|||
Payroll, benefits and other liabilities
|
(328
|
)
|
|
(617
|
)
|
|
752
|
|
|||
Unearned revenues
|
(561
|
)
|
|
(292
|
)
|
|
15
|
|
|||
Net cash provided by operating activities
|
5,506
|
|
|
8,887
|
|
|
8,778
|
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(994
|
)
|
|
(1,185
|
)
|
|
(1,048
|
)
|
|||
Purchases of available-for-sale securities
|
(15,400
|
)
|
|
(13,581
|
)
|
|
(13,951
|
)
|
|||
Proceeds from sales and maturities of available-for-sale securities
|
15,080
|
|
|
13,587
|
|
|
13,494
|
|
|||
Purchases of trading securities
|
(1,160
|
)
|
|
(3,075
|
)
|
|
(3,312
|
)
|
|||
Proceeds from sales and maturities of trading securities
|
1,658
|
|
|
2,824
|
|
|
3,367
|
|
|||
Purchases of other marketable securities
|
—
|
|
|
(220
|
)
|
|
—
|
|
|||
Proceeds from sale of discontinued operations, net of cash sold
|
—
|
|
|
788
|
|
|
—
|
|
|||
Proceeds from sales of property, plant and equipment
|
266
|
|
|
37
|
|
|
4
|
|
|||
Acquisitions and other investments, net of cash acquired
|
(2,997
|
)
|
|
(883
|
)
|
|
(192
|
)
|
|||
Other items, net
|
(25
|
)
|
|
69
|
|
|
60
|
|
|||
Net cash used by investing activities
|
(3,572
|
)
|
|
(1,639
|
)
|
|
(1,578
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
||||||
Proceeds from short-term debt
|
4,083
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from long-term debt
|
9,937
|
|
|
—
|
|
|
534
|
|
|||
Repayment of short-term debt
|
(3,083
|
)
|
|
—
|
|
|
—
|
|
|||
Repayment of long-term debt
|
—
|
|
|
—
|
|
|
(439
|
)
|
|||
Proceeds from issuance of common stock
|
787
|
|
|
1,439
|
|
|
1,525
|
|
|||
Repurchases and retirements of common stock
|
(11,246
|
)
|
|
(4,549
|
)
|
|
(4,610
|
)
|
|||
Dividends paid
|
(2,880
|
)
|
|
(2,586
|
)
|
|
(2,055
|
)
|
|||
Incremental tax benefits from share-based compensation
|
103
|
|
|
280
|
|
|
231
|
|
|||
Other items, net
|
38
|
|
|
(64
|
)
|
|
(31
|
)
|
|||
Net cash used by financing activities
|
(2,261
|
)
|
|
(5,480
|
)
|
|
(4,845
|
)
|
|||
Changes in cash and cash equivalents held for sale
|
—
|
|
|
—
|
|
|
(15
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(20
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
(347
|
)
|
|
1,765
|
|
|
2,335
|
|
|||
Cash and cash equivalents at beginning of period
|
7,907
|
|
|
6,142
|
|
|
3,807
|
|
|||
Cash and cash equivalents at end of period
|
$
|
7,560
|
|
|
$
|
7,907
|
|
|
$
|
6,142
|
|
|
Common
Stock
Shares
|
|
Common Stock and Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Total Qualcomm Stockholders’ Equity
|
|
Noncontrolling Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||
Balance at September 30, 2012
|
1,706
|
|
|
$
|
11,956
|
|
|
$
|
20,701
|
|
|
$
|
866
|
|
|
$
|
33,523
|
|
|
$
|
22
|
|
|
$
|
33,545
|
|
Total comprehensive income
|
—
|
|
|
—
|
|
|
6,853
|
|
|
(113
|
)
|
|
6,740
|
|
|
(9
|
)
|
|
6,731
|
|
||||||
Common stock issued under employee benefit plans and the related tax benefits
|
57
|
|
|
1,759
|
|
|
—
|
|
|
—
|
|
|
1,759
|
|
|
—
|
|
|
1,759
|
|
||||||
Repurchases and retirements of common stock
|
(72
|
)
|
|
(4,610
|
)
|
|
—
|
|
|
—
|
|
|
(4,610
|
)
|
|
—
|
|
|
(4,610
|
)
|
||||||
Share-based compensation
|
—
|
|
|
1,142
|
|
|
—
|
|
|
—
|
|
|
1,142
|
|
|
—
|
|
|
1,142
|
|
||||||
Tax withholdings related to vesting of share-based payments
|
(6
|
)
|
|
(374
|
)
|
|
—
|
|
|
—
|
|
|
(374
|
)
|
|
—
|
|
|
(374
|
)
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
(2,093
|
)
|
|
—
|
|
|
(2,093
|
)
|
|
—
|
|
|
(2,093
|
)
|
||||||
Issuance of subsidiary shares to noncontrolling interests
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
9
|
|
|
11
|
|
||||||
Deconsolidation of subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
(23
|
)
|
||||||
Other
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Balance at September 29, 2013
|
1,685
|
|
|
9,874
|
|
|
25,461
|
|
|
753
|
|
|
36,088
|
|
|
(1
|
)
|
|
36,087
|
|
||||||
Total comprehensive income (1)
|
—
|
|
|
—
|
|
|
7,967
|
|
|
(119
|
)
|
|
7,848
|
|
|
(3
|
)
|
|
7,845
|
|
||||||
Common stock issued under employee benefit plans and the related tax benefits
|
50
|
|
|
1,726
|
|
|
—
|
|
|
—
|
|
|
1,726
|
|
|
—
|
|
|
1,726
|
|
||||||
Repurchases and retirements of common stock
|
(60
|
)
|
|
(4,549
|
)
|
|
—
|
|
|
—
|
|
|
(4,549
|
)
|
|
—
|
|
|
(4,549
|
)
|
||||||
Share-based compensation
|
—
|
|
|
1,101
|
|
|
—
|
|
|
—
|
|
|
1,101
|
|
|
—
|
|
|
1,101
|
|
||||||
Tax withholdings related to vesting of share-based payments
|
(6
|
)
|
|
(417
|
)
|
|
—
|
|
|
—
|
|
|
(417
|
)
|
|
—
|
|
|
(417
|
)
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
(2,629
|
)
|
|
—
|
|
|
(2,629
|
)
|
|
—
|
|
|
(2,629
|
)
|
||||||
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||||
Balance at September 28, 2014
|
1,669
|
|
|
7,736
|
|
|
30,799
|
|
|
634
|
|
|
39,169
|
|
|
(3
|
)
|
|
39,166
|
|
||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
5,271
|
|
|
(439
|
)
|
|
4,832
|
|
|
(3
|
)
|
|
4,829
|
|
||||||
Common stock issued under employee benefit plans and the related tax benefits
|
32
|
|
|
871
|
|
|
—
|
|
|
—
|
|
|
871
|
|
|
—
|
|
|
871
|
|
||||||
Repurchases and retirements of common stock
|
(172
|
)
|
|
(9,334
|
)
|
|
(1,912
|
)
|
|
—
|
|
|
(11,246
|
)
|
|
—
|
|
|
(11,246
|
)
|
||||||
Share-based compensation
|
—
|
|
|
1,078
|
|
|
—
|
|
|
—
|
|
|
1,078
|
|
|
—
|
|
|
1,078
|
|
||||||
Tax withholdings related to vesting of share-based payments
|
(5
|
)
|
|
(351
|
)
|
|
—
|
|
|
—
|
|
|
(351
|
)
|
|
—
|
|
|
(351
|
)
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
(2,932
|
)
|
|
—
|
|
|
(2,932
|
)
|
|
—
|
|
|
(2,932
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Balance at September 27, 2015
|
1,524
|
|
|
$
|
—
|
|
|
$
|
31,226
|
|
|
$
|
195
|
|
|
$
|
31,421
|
|
|
$
|
(7
|
)
|
|
$
|
31,414
|
|
(1)
|
Income (loss) from discontinued operations, net of income taxes, (Note 11) was attributable to Qualcomm.
|
|
September 27, 2015
|
|
September 28, 2014
|
||||
Forwards
|
$
|
269
|
|
|
$
|
210
|
|
Futures
|
133
|
|
|
$
|
260
|
|
|
Options
|
620
|
|
|
122
|
|
||
Swaps
|
3,004
|
|
|
5
|
|
||
|
$
|
4,026
|
|
|
$
|
597
|
|
|
September 27, 2015
|
|
September 28, 2014
|
||||
British pound sterling
|
$
|
83
|
|
|
$
|
97
|
|
Chinese renminbi
|
111
|
|
|
—
|
|
||
Euro
|
36
|
|
|
43
|
|
||
Indian rupee
|
409
|
|
|
3
|
|
||
Japanese yen
|
174
|
|
|
19
|
|
||
Korean won
|
81
|
|
|
121
|
|
||
United States dollar
|
3,089
|
|
|
266
|
|
||
Other
|
43
|
|
|
48
|
|
||
|
$
|
4,026
|
|
|
$
|
597
|
|
•
|
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.
|
|
2015
|
|
2014
|
|
2013
|
||||||
Cost of equipment and services revenues
|
$
|
42
|
|
|
$
|
49
|
|
|
$
|
71
|
|
Research and development
|
659
|
|
|
672
|
|
|
643
|
|
|||
Selling, general and administrative
|
325
|
|
|
338
|
|
|
391
|
|
|||
Share-based compensation expense before income taxes
|
1,026
|
|
|
1,059
|
|
|
1,105
|
|
|||
Related income tax benefit
|
(190
|
)
|
|
(203
|
)
|
|
(217
|
)
|
|||
|
$
|
836
|
|
|
$
|
856
|
|
|
$
|
888
|
|
Accounts Receivable (in millions)
|
|
|
|
||||
|
September 27, 2015
|
|
September 28, 2014
|
||||
Trade, net of allowances for doubtful accounts of $6 and $5, respectively
|
$
|
1,941
|
|
|
$
|
2,362
|
|
Long-term contracts
|
11
|
|
|
17
|
|
||
Other
|
12
|
|
|
33
|
|
||
|
$
|
1,964
|
|
|
$
|
2,412
|
|
Inventories (in millions)
|
|
|
|
||||
|
September 27,
2015 |
|
September 28,
2014 |
||||
Raw materials
|
$
|
1
|
|
|
$
|
1
|
|
Work-in-process
|
550
|
|
|
656
|
|
||
Finished goods
|
941
|
|
|
801
|
|
||
|
$
|
1,492
|
|
|
$
|
1,458
|
|
Property, Plant and Equipment (in millions)
|
September 27, 2015
|
|
September 28, 2014
|
||||
Land
|
$
|
212
|
|
|
$
|
225
|
|
Buildings and improvements
|
1,544
|
|
|
1,456
|
|
||
Computer equipment and software
|
1,422
|
|
|
1,349
|
|
||
Machinery and equipment
|
2,287
|
|
|
2,117
|
|
||
Furniture and office equipment
|
83
|
|
|
85
|
|
||
Leasehold improvements
|
274
|
|
|
247
|
|
||
Construction in progress
|
72
|
|
|
201
|
|
||
|
5,894
|
|
|
5,680
|
|
||
Less accumulated depreciation and amortization
|
(3,360
|
)
|
|
(3,193
|
)
|
||
|
$
|
2,534
|
|
|
$
|
2,487
|
|
|
QCT
|
|
QTL
|
|
Nonreportable Segments
|
|
Total
|
||||||||
Balance at September 29, 2013
|
$
|
2,875
|
|
|
$
|
706
|
|
|
$
|
395
|
|
|
$
|
3,976
|
|
Acquisitions
|
592
|
|
|
6
|
|
|
30
|
|
|
628
|
|
||||
Impairments
|
—
|
|
|
—
|
|
|
(116
|
)
|
|
(116
|
)
|
||||
Balance at September 28, 2014
(1)
|
3,467
|
|
|
712
|
|
|
309
|
|
|
4,488
|
|
||||
Acquisitions
|
998
|
|
|
6
|
|
|
254
|
|
|
1,258
|
|
||||
Impairments
|
—
|
|
|
—
|
|
|
(260
|
)
|
|
(260
|
)
|
||||
Other (2)
|
(4
|
)
|
|
—
|
|
|
(3
|
)
|
|
(7
|
)
|
||||
Balance at September 27, 2015
(1)
|
$
|
4,461
|
|
|
$
|
718
|
|
|
$
|
300
|
|
|
$
|
5,479
|
|
(1)
|
Cumulative goodwill impairments were
$520 million
and
$260 million
at
September 27, 2015
and
September 28, 2014
, respectively.
|
(2)
|
Includes changes in goodwill amounts resulting from foreign currency translation and purchase accounting adjustments.
|
|
September 27, 2015
|
|
September 28, 2014
|
||||||||||||||||
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Weighted-average amortization period
(years)
|
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Weighted-average amortization period
(years)
|
||||||||
Wireless spectrum
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
5
|
|
$
|
18
|
|
|
$
|
(9
|
)
|
|
14
|
Marketing-related
|
93
|
|
|
(59
|
)
|
|
8
|
|
78
|
|
|
(47
|
)
|
|
9
|
||||
Technology-based
|
5,735
|
|
|
(2,078
|
)
|
|
10
|
|
4,460
|
|
|
(1,956
|
)
|
|
11
|
||||
Customer-related
|
111
|
|
|
(60
|
)
|
|
4
|
|
85
|
|
|
(49
|
)
|
|
6
|
||||
|
$
|
5,941
|
|
|
$
|
(2,199
|
)
|
|
10
|
|
$
|
4,641
|
|
|
$
|
(2,061
|
)
|
|
11
|
Other Current Liabilities (in millions)
|
|
|
|
||||
|
September 27,
2015 |
|
September 28,
2014 |
||||
Customer incentives and other customer-related liabilities
|
$
|
1,894
|
|
|
$
|
1,777
|
|
Other
|
462
|
|
|
466
|
|
||
|
$
|
2,356
|
|
|
$
|
2,243
|
|
|
Foreign Currency Translation Adjustment
|
|
Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities
|
|
Net Unrealized Gain (Loss) on Other Available-for-Sale Securities
|
|
Net Unrealized Gain (Loss) on Derivative Instruments
|
|
Total Accumulated Other Comprehensive Income
|
||||||||||
Balance at September 28, 2014
|
$
|
(113
|
)
|
|
$
|
24
|
|
|
$
|
723
|
|
|
$
|
—
|
|
|
$
|
634
|
|
Other comprehensive (loss) income before reclassifications
|
(47
|
)
|
|
(19
|
)
|
|
(215
|
)
|
|
54
|
|
|
(227
|
)
|
|||||
Reclassifications from accumulated other comprehensive (loss) income
|
—
|
|
|
(1
|
)
|
|
(211
|
)
|
|
—
|
|
|
(212
|
)
|
|||||
Other comprehensive (loss) income
|
(47
|
)
|
|
(20
|
)
|
|
(426
|
)
|
|
54
|
|
|
(439
|
)
|
|||||
Balance at September 27, 2015
|
$
|
(160
|
)
|
|
$
|
4
|
|
|
$
|
297
|
|
|
$
|
54
|
|
|
$
|
195
|
|
Investment Income, Net (in millions)
|
|
|
|
|
|
||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Interest and dividend income
|
$
|
527
|
|
|
$
|
586
|
|
|
$
|
697
|
|
Net realized gains on marketable securities
|
451
|
|
|
770
|
|
|
317
|
|
|||
Net realized gains on other investments
|
49
|
|
|
56
|
|
|
52
|
|
|||
Impairment losses on marketable securities
|
(163
|
)
|
|
(156
|
)
|
|
(72
|
)
|
|||
Impairment losses on other investments
|
(37
|
)
|
|
(24
|
)
|
|
(13
|
)
|
|||
Net gains on derivative instruments
|
17
|
|
|
5
|
|
|
—
|
|
|||
Equity in net losses of investees
|
(32
|
)
|
|
(10
|
)
|
|
(6
|
)
|
|||
Net gains on deconsolidation of subsidiaries
|
3
|
|
|
6
|
|
|
12
|
|
|||
|
$
|
815
|
|
|
$
|
1,233
|
|
|
$
|
987
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Current (benefit) provision:
|
|
|
|
|
|
||||||
Federal
|
$
|
(67
|
)
|
|
$
|
172
|
|
|
$
|
324
|
|
State
|
4
|
|
|
10
|
|
|
15
|
|
|||
Foreign
|
1,307
|
|
|
1,116
|
|
|
1,068
|
|
|||
|
1,244
|
|
|
1,298
|
|
|
1,407
|
|
|||
Deferred (benefit) provision:
|
|
|
|
|
|
||||||
Federal
|
(9
|
)
|
|
(30
|
)
|
|
(32
|
)
|
|||
State
|
1
|
|
|
(10
|
)
|
|
6
|
|
|||
Foreign
|
(17
|
)
|
|
(14
|
)
|
|
(32
|
)
|
|||
|
(25
|
)
|
|
(54
|
)
|
|
(58
|
)
|
|||
|
$
|
1,219
|
|
|
$
|
1,244
|
|
|
$
|
1,349
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
United States
|
$
|
2,993
|
|
|
$
|
3,213
|
|
|
$
|
3,798
|
|
Foreign
|
3,494
|
|
|
5,565
|
|
|
4,396
|
|
|||
|
$
|
6,487
|
|
|
$
|
8,778
|
|
|
$
|
8,194
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Expected income tax provision at federal statutory tax rate
|
$
|
2,270
|
|
|
$
|
3,072
|
|
|
$
|
2,868
|
|
State income tax provision, net of federal benefit
|
18
|
|
|
24
|
|
|
26
|
|
|||
Foreign income taxed at other than U.S. rates
|
(937
|
)
|
|
(1,750
|
)
|
|
(1,362
|
)
|
|||
Research and development tax credits
|
(148
|
)
|
|
(61
|
)
|
|
(195
|
)
|
|||
Other
|
16
|
|
|
(41
|
)
|
|
12
|
|
|||
|
$
|
1,219
|
|
|
$
|
1,244
|
|
|
$
|
1,349
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Additional income tax expense
|
$
|
656
|
|
|
$
|
690
|
|
|
$
|
758
|
|
Reduction to diluted earnings per share
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.43
|
|
|
September 27, 2015
|
|
September 28, 2014
|
||||
Unearned revenues
|
$
|
1,029
|
|
|
$
|
1,189
|
|
Unused tax credits
|
897
|
|
|
388
|
|
||
Unrealized losses on marketable securities
|
441
|
|
|
370
|
|
||
Share-based compensation
|
331
|
|
|
404
|
|
||
Accrued liabilities and reserves
|
317
|
|
|
529
|
|
||
Unused net operating losses
|
265
|
|
|
120
|
|
||
Other
|
95
|
|
|
93
|
|
||
Total gross deferred tax assets
|
3,375
|
|
|
3,093
|
|
||
Valuation allowance
|
(635
|
)
|
|
(414
|
)
|
||
Total net deferred tax assets
|
2,740
|
|
|
2,679
|
|
||
Intangible assets
|
(548
|
)
|
|
(315
|
)
|
||
Unrealized gains on marketable securities
|
(273
|
)
|
|
(484
|
)
|
||
Other
|
(105
|
)
|
|
(135
|
)
|
||
Total deferred tax liabilities
|
(926
|
)
|
|
(934
|
)
|
||
Net deferred tax assets
|
$
|
1,814
|
|
|
$
|
1,745
|
|
Reported as:
|
|
|
|
||||
Current deferred tax assets
|
$
|
635
|
|
|
$
|
577
|
|
Non-current deferred tax assets
|
1,453
|
|
|
1,174
|
|
||
Current deferred tax liabilities (1)
|
(4
|
)
|
|
—
|
|
||
Non-current deferred tax liabilities (1)
|
(270
|
)
|
|
(6
|
)
|
||
|
$
|
1,814
|
|
|
$
|
1,745
|
|
(1)
|
Current deferred tax liabilities and non-current deferred tax liabilities were included in other current liabilities and other liabilities, respectively, in the consolidated balance sheets.
|
|
2015
|
|
2014
|
|
2013
|
||||||
Beginning balance of unrecognized tax benefits
|
$
|
87
|
|
|
$
|
221
|
|
|
$
|
86
|
|
Additions based on prior year tax positions
|
31
|
|
|
1
|
|
|
1
|
|
|||
Reductions for prior year tax positions and lapse in statute of limitations
|
(70
|
)
|
|
(67
|
)
|
|
—
|
|
|||
Additions for current year tax positions
|
5
|
|
|
5
|
|
|
145
|
|
|||
Settlements with taxing authorities
|
(13
|
)
|
|
(73
|
)
|
|
(11
|
)
|
|||
Ending balance of unrecognized tax benefits
|
$
|
40
|
|
|
$
|
87
|
|
|
$
|
221
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
|
Per Share
|
|
Total
|
|
Per Share
|
|
Total
|
|
Per Share
|
|
Total
|
||||||||||||
First quarter
|
$
|
0.42
|
|
|
$
|
710
|
|
|
$
|
0.35
|
|
|
$
|
599
|
|
|
$
|
0.25
|
|
|
$
|
435
|
|
Second quarter
|
0.42
|
|
|
702
|
|
|
0.35
|
|
|
599
|
|
|
0.25
|
|
|
439
|
|
||||||
Third quarter
|
0.48
|
|
|
771
|
|
|
0.42
|
|
|
718
|
|
|
0.35
|
|
|
615
|
|
||||||
Fourth quarter
|
0.48
|
|
|
749
|
|
|
0.42
|
|
|
713
|
|
|
0.35
|
|
|
604
|
|
||||||
|
$
|
1.80
|
|
|
$
|
2,932
|
|
|
$
|
1.54
|
|
|
$
|
2,629
|
|
|
$
|
1.20
|
|
|
$
|
2,093
|
|
|
Number of Shares
|
|
Weighted-Average
Grant Date Fair
Value
|
|
Aggregate Intrinsic
Value
|
|||||
|
(In thousands)
|
|
|
|
(In billions)
|
|||||
RSUs outstanding at September 28, 2014
|
28,550
|
|
|
$
|
67.36
|
|
|
|
||
RSUs granted
|
15,425
|
|
|
68.77
|
|
|
|
|||
RSUs canceled/forfeited
|
(2,329
|
)
|
|
69.42
|
|
|
|
|||
RSUs vested
|
(13,899
|
)
|
|
64.63
|
|
|
|
|||
RSUs outstanding at September 27, 2015
|
27,747
|
|
|
$
|
69.35
|
|
|
$
|
1.5
|
|
|
Number of Shares
|
|
Weighted- Average
Exercise
Price
|
|
Average Remaining
Contractual Term
|
|
Aggregate Intrinsic
Value
|
|||||
|
(In thousands)
|
|
|
|
(Years)
|
|
(In millions)
|
|||||
Stock options outstanding at September 28, 2014
|
42,113
|
|
|
$
|
41.23
|
|
|
|
|
|
||
Stock options canceled/forfeited/expired
|
(72
|
)
|
|
40.82
|
|
|
|
|
|
|||
Stock options exercised
|
(12,664
|
)
|
|
40.86
|
|
|
|
|
|
|||
Stock options outstanding at September 27, 2015
|
29,377
|
|
|
$
|
41.40
|
|
|
2.6
|
|
$
|
349
|
|
Exercisable at September 27, 2015
|
29,223
|
|
|
$
|
41.46
|
|
|
2.6
|
|
$
|
345
|
|
|
Principal
Amount
|
|
Effective
Interest Rate
|
||
Floating-rate notes due May 18, 2018
|
$
|
250
|
|
|
0.66%
|
Floating-rate notes due May 20, 2020
|
250
|
|
|
0.94%
|
|
Fixed-rate 1.40% notes due May 18, 2018
|
1,250
|
|
|
0.43%
|
|
Fixed-rate 2.25% notes due May 20, 2020
|
1,750
|
|
|
1.62%
|
|
Fixed-rate 3.00% notes due May 20, 2022
|
2,000
|
|
|
2.08%
|
|
Fixed-rate 3.45% notes due May 20, 2025
|
2,000
|
|
|
3.46%
|
|
Fixed-rate 4.65% notes due May 20, 2035
|
1,000
|
|
|
4.74%
|
|
Fixed-rate 4.80% notes due May 20, 2045
|
1,500
|
|
|
4.71%
|
|
Total principal
|
10,000
|
|
|
|
|
Unamortized discount, including debt issuance costs
|
(63
|
)
|
|
|
|
Hedge accounting fair value adjustments
|
32
|
|
|
|
|
Total long-term debt
|
$
|
9,969
|
|
|
|
|
QCT
|
|
QTL
|
|
QSI
|
|
Reconciling
Items
|
|
Total
|
||||||||||
2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
17,154
|
|
|
$
|
7,947
|
|
|
$
|
4
|
|
|
$
|
176
|
|
|
$
|
25,281
|
|
EBT
|
2,465
|
|
|
6,882
|
|
|
(74
|
)
|
|
(2,786
|
)
|
|
6,487
|
|
|||||
Total assets
|
2,923
|
|
|
438
|
|
|
812
|
|
|
46,623
|
|
|
50,796
|
|
|||||
2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
18,665
|
|
|
$
|
7,569
|
|
|
$
|
—
|
|
|
$
|
253
|
|
|
$
|
26,487
|
|
EBT
|
3,807
|
|
|
6,590
|
|
|
(7
|
)
|
|
(1,612
|
)
|
|
8,778
|
|
|||||
Total assets
|
3,639
|
|
|
161
|
|
|
484
|
|
|
44,290
|
|
|
48,574
|
|
|||||
2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
16,715
|
|
|
$
|
7,554
|
|
|
$
|
—
|
|
|
$
|
597
|
|
|
$
|
24,866
|
|
EBT
|
3,189
|
|
|
6,590
|
|
|
56
|
|
|
(1,641
|
)
|
|
8,194
|
|
|||||
Total assets
|
3,305
|
|
|
28
|
|
|
511
|
|
|
41,672
|
|
|
45,516
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
China (including Hong Kong)
|
$
|
13,337
|
|
|
$
|
13,200
|
|
|
$
|
12,288
|
|
South Korea
|
4,107
|
|
|
6,172
|
|
|
4,983
|
|
|||
Taiwan
|
3,294
|
|
|
2,876
|
|
|
2,683
|
|
|||
United States
|
246
|
|
|
372
|
|
|
805
|
|
|||
Other foreign
|
4,297
|
|
|
3,867
|
|
|
4,107
|
|
|||
|
$
|
25,281
|
|
|
$
|
26,487
|
|
|
$
|
24,866
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Revenues
|
|
|
|
|
|
||||||
Nonreportable segments
|
$
|
181
|
|
|
$
|
258
|
|
|
$
|
601
|
|
Intersegment eliminations
|
(5
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|||
|
$
|
176
|
|
|
$
|
253
|
|
|
$
|
597
|
|
EBT
|
|
|
|
|
|
||||||
Unallocated cost of equipment and services revenues
|
$
|
(314
|
)
|
|
$
|
(300
|
)
|
|
$
|
(335
|
)
|
Unallocated research and development expenses
|
(809
|
)
|
|
(860
|
)
|
|
(789
|
)
|
|||
Unallocated selling, general and administrative expenses
|
(497
|
)
|
|
(412
|
)
|
|
(502
|
)
|
|||
Unallocated other (expense) income
|
(1,289
|
)
|
|
142
|
|
|
(173
|
)
|
|||
Unallocated interest expense
|
(101
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Unallocated investment income, net
|
855
|
|
|
1,215
|
|
|
880
|
|
|||
Nonreportable segments
|
(630
|
)
|
|
(1,395
|
)
|
|
(719
|
)
|
|||
Intersegment eliminations
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||
|
$
|
(2,786
|
)
|
|
$
|
(1,612
|
)
|
|
$
|
(1,641
|
)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Cost of equipment and services revenues
|
$
|
272
|
|
|
$
|
251
|
|
|
$
|
264
|
|
Research and development expenses
|
14
|
|
|
30
|
|
|
3
|
|
|||
Selling, general and administrative expenses
|
72
|
|
|
25
|
|
|
26
|
|
Current assets
|
$
|
560
|
|
Intangible assets subject to amortization:
|
|
||
Technology-based intangible assets
|
953
|
|
|
Customer-related intangible assets
|
45
|
|
|
Marketing-related intangible assets
|
15
|
|
|
In-process research and development (IPR&D)
|
182
|
|
|
Goodwill
|
969
|
|
|
Other assets
|
131
|
|
|
Total assets
|
2,855
|
|
|
Liabilities
|
(411
|
)
|
|
Net assets acquired
|
$
|
2,444
|
|
|
2015
|
|
2014
|
||||
|
(unaudited)
|
||||||
Revenues
|
$
|
25,939
|
|
|
$
|
27,282
|
|
Net income attributable to Qualcomm
|
5,157
|
|
|
7,730
|
|
|
Severance Costs
|
|
Other Costs
|
|
Total
|
||||||
Beginning balance of restructuring accrual
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Initial costs
|
125
|
|
|
45
|
|
|
170
|
|
|||
Cash payments
|
(3
|
)
|
|
(14
|
)
|
|
(17
|
)
|
|||
Ending balance of restructuring accrual
|
$
|
122
|
|
|
$
|
31
|
|
|
$
|
153
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
2,043
|
|
|
$
|
5,055
|
|
|
$
|
—
|
|
|
$
|
7,098
|
|
Marketable securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities and government-related securities
|
41
|
|
|
818
|
|
|
—
|
|
|
859
|
|
||||
Corporate bonds and notes
|
—
|
|
|
15,402
|
|
|
—
|
|
|
15,402
|
|
||||
Mortgage- and asset-backed and auction rate securities
|
—
|
|
|
1,583
|
|
|
224
|
|
|
1,807
|
|
||||
Equity and preferred securities and equity funds
|
1,168
|
|
|
462
|
|
|
—
|
|
|
1,630
|
|
||||
Debt funds
|
—
|
|
|
3,689
|
|
|
—
|
|
|
3,689
|
|
||||
Total marketable securities
|
1,209
|
|
|
21,954
|
|
|
224
|
|
|
23,387
|
|
||||
Derivative instruments
|
1
|
|
|
39
|
|
|
—
|
|
|
40
|
|
||||
Other investments
|
290
|
|
|
—
|
|
|
—
|
|
|
290
|
|
||||
Total assets measured at fair value
|
$
|
3,543
|
|
|
$
|
27,048
|
|
|
$
|
224
|
|
|
$
|
30,815
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Other liabilities
|
289
|
|
|
—
|
|
|
—
|
|
|
289
|
|
||||
Total liabilities measured at fair value
|
$
|
289
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
295
|
|
|
2015
|
|
2014
|
||||
Beginning balance of Level 3
|
$
|
269
|
|
|
$
|
322
|
|
Total realized and unrealized gains or losses:
|
|
|
|
||||
Included in investment income, net
|
3
|
|
|
11
|
|
||
Included in other comprehensive income (loss)
|
(4
|
)
|
|
(3
|
)
|
||
Purchases
|
69
|
|
|
107
|
|
||
Sales
|
(46
|
)
|
|
(126
|
)
|
||
Settlements
|
(64
|
)
|
|
(40
|
)
|
||
Transfers out of Level 3
|
(3
|
)
|
|
(2
|
)
|
||
Ending balance of Level 3
|
$
|
224
|
|
|
$
|
269
|
|
|
Current
|
|
Noncurrent
|
||||||||||||
|
September 27,
2015 |
|
September 28,
2014 |
|
September 27,
2015 |
|
September 28,
2014 |
||||||||
Trading:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities and government-related securities
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
12
|
|
|
$
|
38
|
|
Corporate bonds and notes
|
—
|
|
|
191
|
|
|
364
|
|
|
367
|
|
||||
Mortgage- and asset-backed and auction rate securities
|
—
|
|
|
—
|
|
|
242
|
|
|
237
|
|
||||
Total trading
|
—
|
|
|
511
|
|
|
618
|
|
|
642
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities and government-related securities
|
156
|
|
|
805
|
|
|
691
|
|
|
392
|
|
||||
Corporate bonds and notes
|
7,926
|
|
|
6,274
|
|
|
7,112
|
|
|
7,649
|
|
||||
Mortgage- and asset-backed and auction rate securities
|
1,302
|
|
|
1,063
|
|
|
263
|
|
|
278
|
|
||||
Equity and preferred securities and equity funds
|
377
|
|
|
192
|
|
|
1,253
|
|
|
2,146
|
|
||||
Debt funds
|
—
|
|
|
813
|
|
|
2,909
|
|
|
2,560
|
|
||||
Total available-for-sale
|
9,761
|
|
|
9,147
|
|
|
12,228
|
|
|
13,025
|
|
||||
Fair value option:
|
|
|
|
|
|
|
|
||||||||
Debt fund
|
—
|
|
|
—
|
|
|
780
|
|
|
790
|
|
||||
Total marketable securities
|
$
|
9,761
|
|
|
$
|
9,658
|
|
|
$
|
13,626
|
|
|
$
|
14,457
|
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Net Realized Gains
|
||||||
2015
|
$
|
540
|
|
|
$
|
(52
|
)
|
|
$
|
488
|
|
2014
|
732
|
|
|
(18
|
)
|
|
714
|
|
|||
2013
|
430
|
|
|
(142
|
)
|
|
288
|
|
|
Cost
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair Value
|
||||||||
September 27, 2015
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
1,394
|
|
|
$
|
264
|
|
|
$
|
(28
|
)
|
|
$
|
1,630
|
|
Debt securities (including debt funds)
|
20,459
|
|
|
185
|
|
|
(285
|
)
|
|
20,359
|
|
||||
|
$
|
21,853
|
|
|
$
|
449
|
|
|
$
|
(313
|
)
|
|
$
|
21,989
|
|
September 28, 2014
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
1,769
|
|
|
$
|
575
|
|
|
$
|
(6
|
)
|
|
$
|
2,338
|
|
Debt securities (including debt funds)
|
19,582
|
|
|
312
|
|
|
(60
|
)
|
|
19,834
|
|
||||
|
$
|
21,351
|
|
|
$
|
887
|
|
|
$
|
(66
|
)
|
|
$
|
22,172
|
|
|
September 27, 2015
|
||||||||||||||
|
Less than 12 months
|
|
More than 12 months
|
||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||
U.S. Treasury securities and government-related securities
|
$
|
304
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Corporate bonds and notes
|
7,656
|
|
|
(93
|
)
|
|
368
|
|
|
(62
|
)
|
||||
Mortgage- and asset-backed and auction rate securities
|
862
|
|
|
(3
|
)
|
|
108
|
|
|
(1
|
)
|
||||
Equity and preferred securities and equity funds
|
392
|
|
|
(28
|
)
|
|
17
|
|
|
—
|
|
||||
Debt funds
|
1,792
|
|
|
(117
|
)
|
|
124
|
|
|
(5
|
)
|
||||
|
$
|
11,006
|
|
|
$
|
(245
|
)
|
|
$
|
617
|
|
|
$
|
(68
|
)
|
|
September 28, 2014
|
||||||||||||||
|
Less than 12 months
|
|
More than 12 months
|
||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||
U.S. Treasury securities and government-related securities
|
$
|
279
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Corporate bonds and notes
|
4,924
|
|
|
(31
|
)
|
|
104
|
|
|
(4
|
)
|
||||
Mortgage- and asset-backed and auction rate securities
|
484
|
|
|
(1
|
)
|
|
135
|
|
|
(2
|
)
|
||||
Equity and preferred securities and equity funds
|
86
|
|
|
(3
|
)
|
|
52
|
|
|
(3
|
)
|
||||
Debt funds
|
133
|
|
|
(1
|
)
|
|
384
|
|
|
(19
|
)
|
||||
|
$
|
5,906
|
|
|
$
|
(38
|
)
|
|
$
|
675
|
|
|
$
|
(28
|
)
|
|
1st Quarter
|
|
2nd Quarter
|
|
3rd Quarter
|
|
4th Quarter
|
||||||||
2015 (1)
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
7,099
|
|
|
$
|
6,894
|
|
|
$
|
5,832
|
|
|
$
|
5,456
|
|
Operating income
|
2,064
|
|
|
1,336
|
|
|
1,235
|
|
|
1,140
|
|
||||
Income from continuing operations
|
1,971
|
|
|
1,052
|
|
|
1,183
|
|
|
1,060
|
|
||||
Net income
|
1,971
|
|
|
1,052
|
|
|
1,183
|
|
|
1,060
|
|
||||
Net income attributable to Qualcomm
|
1,972
|
|
|
1,053
|
|
|
1,184
|
|
|
1,061
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to Qualcomm (2):
|
$
|
1.19
|
|
|
$
|
0.64
|
|
|
$
|
0.74
|
|
|
$
|
0.68
|
|
Diluted earnings per share attributable to Qualcomm (2):
|
1.17
|
|
|
0.63
|
|
|
0.73
|
|
|
0.67
|
|
||||
|
|
|
|
|
|
|
|
||||||||
2014 (1)
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
6,622
|
|
|
$
|
6,367
|
|
|
$
|
6,806
|
|
|
$
|
6,692
|
|
Operating income
|
1,493
|
|
|
1,990
|
|
|
2,075
|
|
|
1,992
|
|
||||
Income from continuing operations
|
1,444
|
|
|
1,958
|
|
|
2,237
|
|
|
1,893
|
|
||||
Discontinued operations, net of tax
|
430
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
1,874
|
|
|
1,958
|
|
|
2,237
|
|
|
1,893
|
|
||||
Net income attributable to Qualcomm
|
1,875
|
|
|
1,959
|
|
|
2,238
|
|
|
1,894
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to Qualcomm (2):
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.86
|
|
|
$
|
1.16
|
|
|
$
|
1.33
|
|
|
$
|
1.13
|
|
Discontinued operations
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
1.11
|
|
|
1.16
|
|
|
1.33
|
|
|
1.13
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to Qualcomm (2):
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.84
|
|
|
$
|
1.14
|
|
|
$
|
1.31
|
|
|
$
|
1.11
|
|
Discontinued operations
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
1.09
|
|
|
1.14
|
|
|
1.31
|
|
|
1.11
|
|
(1)
|
Amounts, other than per share amounts, are rounded to millions each quarter. Therefore, the sum of the quarterly amounts may not equal the annual amounts reported.
|
(2)
|
Earnings per share attributable to Qualcomm are computed independently for each quarter and the full year based upon respective average shares outstanding. Therefore, the sum of the quarterly earnings per share amounts may not equal the annual amounts reported.
|
|
Balance at
Beginning of
Period
|
|
Charged
(Credited) to
Costs and
Expenses
|
|
Deductions
|
|
Other
|
|
Balance at
End of
Period
|
||||||||||
Year ended September 27, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowances:
|
|
|
|
|
|
|
|
|
|
||||||||||
— trade receivables
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
— notes receivable
|
4
|
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
(a)
|
—
|
|
|||||
Valuation allowance on deferred tax assets
|
414
|
|
|
130
|
|
|
—
|
|
|
91
|
|
(b)
|
635
|
|
|||||
|
$
|
423
|
|
|
$
|
131
|
|
|
$
|
(3
|
)
|
|
$
|
90
|
|
|
$
|
641
|
|
Year ended September 28, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowances:
|
|
|
|
|
|
|
|
|
|
||||||||||
— trade receivables
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
5
|
|
— notes receivable
|
10
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
(a)
|
4
|
|
|||||
Valuation allowance on deferred tax assets
|
265
|
|
|
148
|
|
|
—
|
|
|
1
|
|
(b)
|
414
|
|
|||||
|
$
|
277
|
|
|
$
|
150
|
|
|
$
|
(3
|
)
|
|
$
|
(1
|
)
|
|
$
|
423
|
|
Year ended September 29, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowances:
|
|
|
|
|
|
|
|
|
|
||||||||||
— trade receivables
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
— notes receivable
|
7
|
|
|
5
|
|
|
—
|
|
|
(2
|
)
|
(a)
|
10
|
|
|||||
Valuation allowance on deferred tax assets
|
227
|
|
|
114
|
|
|
—
|
|
|
(76
|
)
|
(c)
|
265
|
|
|||||
|
$
|
235
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
(78
|
)
|
|
$
|
277
|
|
(a)
|
This amount relates to notes receivable on strategic investments that were converted to cost method equity investments.
|
(b)
|
This amount was recorded to goodwill in connection with a business acquisition.
|
(c)
|
This amount represents
$88 million
recorded as part of the gain on deconsolidation of certain subsidiaries, partially offset by
$12 million
recorded as a component of other comprehensive income.
|
|
Qualcomm Incorporated:
|
|
|
|
By: <<Name>>
|
|
|
|
Title: <<Title>>
|
|
|
|
|
|
INDEMNITEE:
|
|
|
|
<<Indemnitee Name>>
|
|
|
|
Address: c/o Qualcomm Incorporated
5775 Morehouse Dr.
San Diego, CA 92121-1714
|
Emp #: «ID»
|
Number of Performance Stock Units: «Shares_Granted»
|
First Measurement Period:
|
«First_Meas Date Range»
|
|
|
«Addit. Measurement Period(s):»
|
«Additional_Meas Date Range(s)»
|
TSR Percentile Rank
|
Payout Percentage
|
90th percentile and above
|
200%
|
75th percentile
|
150%
|
60th percentile
|
100% (Target)
|
50th percentile
|
75%
|
33rd percentile
|
33%
|
Below 33rd percentile
|
0%
|
TSR Percentile Rank =
|
(
N
-
R
)
|
* 100
|
|
N
|
|
Emp #
: «ID»
|
Date of Grant
: «Date_of_Grant»
|
TSR Percentile Rank
|
Payout Percentage
|
|
90th percentile and above
|
200
|
%
|
75th percentile
|
150
|
%
|
60th percentile
|
100% (Target)
|
|
50th percentile
|
75
|
%
|
33rd percentile
|
33
|
%
|
Below 33rd percentile
|
0
|
%
|
TSR Percentile Rank =
|
(
N
–
R
)
|
* 100
|
N
|
▪
|
severance and benefits (including COBRA and outplacement expenses);
|
▪
|
consulting costs;
|
▪
|
increased security costs;
|
▪
|
acceleration of depreciation and/or amortization expense;
|
▪
|
facilities and lease termination or abandonment charges;
|
▪
|
asset impairment charges and/or contract terminations;
|
▪
|
third-party business separation costs; and
|
▪
|
relocation costs as a result of an office or facility closure.
|
ROIC Ratio
|
ROIC Payout Percentage
|
120%
|
200%
|
100%
|
100%
|
80%
|
33%
|
Below 80%
|
0% Payout
|
|
Year Ended
|
||||||||||||||||||
|
September 27, 2015
|
|
September 28, 2014
|
|
September 29, 2013
|
|
September 30, 2012
|
|
September 25, 2011
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes and income (losses) from equity method investments
|
$
|
6,519
|
|
|
$
|
8,788
|
|
|
$
|
8,200
|
|
|
$
|
6,571
|
|
|
$
|
5,694
|
|
Fixed charges (1)
|
137
|
|
|
35
|
|
|
118
|
|
|
148
|
|
|
143
|
|
|||||
Cash distributions from equity method investments
|
6
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||
Less: Capitalized interest
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
(29
|
)
|
|
—
|
|
|||||
Total earnings
|
$
|
6,662
|
|
|
$
|
8,823
|
|
|
$
|
8,254
|
|
|
$
|
6,691
|
|
|
$
|
5,837
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges: (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
|
$
|
104
|
|
|
$
|
5
|
|
|
$
|
88
|
|
|
$
|
119
|
|
|
$
|
114
|
|
Interest component of rental expense
|
33
|
|
|
30
|
|
|
30
|
|
|
29
|
|
|
29
|
|
|||||
Total fixed charges
|
$
|
137
|
|
|
$
|
35
|
|
|
$
|
118
|
|
|
$
|
148
|
|
|
$
|
143
|
|
Ratio of earnings to fixed charges
|
49 x
|
|
|
252 x
|
|
|
70 x
|
|
|
45 x
|
|
|
41 x
|
|
(1)
|
Fixed charges include interest expense (which includes amortization of debt issuance costs), whether expensed or capitalized, and the portion of operating rental expense that management believes is representative of the interest component of rent expense, which is estimated to be one-third of rental expense.
|
Subsidiaries of Qualcomm Incorporated
|
State or Other Jurisdiction of Incorporation
|
Qualcomm Technologies, Inc.
|
Delaware
|
Qualcomm Global Trading Pte. Ltd.
|
Singapore
|
Qualcomm CDMA Technologies Asia-Pacific Pte. Ltd.
|
Singapore
|
Qualcomm Asia Pacific Pte. Ltd.
|
Singapore
|
Qualcomm Atheros, Inc.
|
Delaware
|
Qualcomm Technologies International, Ltd.
|
United Kingdom
|
1.
|
I have reviewed this Annual Report on Form 10-K of QUALCOMM Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Steve Mollenkopf
|
|
Steve Mollenkopf
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of QUALCOMM Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ George S. Davis
|
|
George S. Davis
|
|
Executive Vice President and Chief Financial Officer
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Steve Mollenkopf
|
|
Steve Mollenkopf
|
|
Chief Executive Officer
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ George S. Davis
|
|
George S. Davis
|
|
Executive Vice President and Chief Financial Officer
|
|