Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items (Tables)

v3.22.4
Composition of Certain Financial Statement Items (Tables)
3 Months Ended
Dec. 25, 2022
Condensed Financial Information Disclosure [Abstract]  
Inventories
Inventories (in millions)
December 25,
2022
September 25,
2022
Raw materials $ 228  $ 221 
Work-in-process 3,647  3,329 
Finished goods 3,057  2,791 
$ 6,932  $ 6,341 
QCT Revenues Disaggregated
QCT revenue streams were as follows (in millions):
Three Months Ended
December 25,
2022
December 26,
2021
Handsets (1) $ 5,754  $ 6,989 
Automotive (2) 456  288 
IoT (3) 1,682  1,570 
Total QCT revenues $ 7,892  $ 8,847 
(1) Includes revenues from products sold for use in mobile handsets.
(2) Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and advanced driver assistance systems (ADAS) and automated driving (AD).
(3) Primarily includes products sold for use in the following industries and applications: consumer (including computing, voice and music and extended reality (XR)), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, transportation and logistics and utilities).
Revenue recognized from performance obligations satisfied in previous periods
Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were as follows (in millions):
Three Months Ended
December 25,
2022 (1)
December 26,
2021 (2)
Revenues recognized from previously satisfied performance obligations $ 199  $ 242 
(1) Primarily related to certain QCT sales-based royalty revenues related to system software and certain QCT customer incentives.
(2) Primarily related to certain QCT sales-based royalty revenues related to system software, QTL royalty revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due) and certain QCT customer incentives.
Customer Concentrations - Revenues Revenues from each customer/licensee that were 10% or greater of total revenues were as follows:
Three Months Ended
December 25,
2022
December 26,
2021
Customer/licensee (y) 34  % 26  %
Customer/licensee (z) 14  19 
Investment and Other Income, Net
Investment and Other Income, Net (in millions)
Three Months Ended
December 25,
2022
December 26,
2021
Interest and dividend income $ 55  $ 17 
Net gains on marketable securities 11  17 
Net gains on other investments —  93 
Net gains on deferred compensation plan assets 26  13 
Impairment losses on other investments (14) (1)
Net gains (losses) on derivative instruments (13)
Equity in net (losses) earnings of investees (8)
Net (losses) gains on foreign currency transactions (3)
$ 76  $ 140