| Schedule of diluted earnings per share |
The following table provides information about the diluted earnings (loss) per share calculation (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31,
2019 |
|
March 25,
2018 |
|
March 31,
2019 |
|
March 25,
2018 |
Dilutive common share equivalents included in diluted shares |
3.8 |
|
|
12.2 |
|
|
7.0 |
|
|
— |
|
Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period |
17.2 |
|
|
0.1 |
|
|
14.4 |
|
|
44.9 |
|
|
| Share-based compensation expense related to all share-based awards |
Total share-based compensation expense, related to all of our share-based awards, was comprised as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31,
2019 |
|
March 25,
2018 |
|
March 31,
2019 |
|
March 25,
2018 |
Cost of revenues |
$ |
7 |
|
|
$ |
10 |
|
|
$ |
16 |
|
|
$ |
21 |
|
Research and development |
157 |
|
|
151 |
|
|
315 |
|
|
307 |
|
Selling, general and administrative |
57 |
|
|
61 |
|
|
121 |
|
|
142 |
|
Share-based compensation expense before income taxes |
221 |
|
|
222 |
|
|
452 |
|
|
470 |
|
Related income tax benefit |
(30 |
) |
|
(29 |
) |
|
(79 |
) |
|
(77 |
) |
|
$ |
191 |
|
|
$ |
193 |
|
|
$ |
373 |
|
|
$ |
393 |
|
|
| Cumulative effects of adopting the new revenue accounting standard |
The following table summarizes the cumulative effects of adopting the new revenue accounting guidance (substantially all of which related to the impact to QTL’s sales-based royalties) on our condensed consolidated balance sheet at October 1, 2018 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of September 30,
2018 |
|
Adjustment |
|
Opening Balance as of October 1,
2018 |
Assets |
|
|
|
|
|
Accounts receivable, net |
$ |
2,904 |
|
|
$ |
957 |
|
|
$ |
3,861 |
|
Other current assets |
699 |
|
|
1 |
|
|
700 |
|
Deferred tax assets |
936 |
|
|
(98 |
) |
|
838 |
|
Other assets |
1,970 |
|
|
1 |
|
|
1,971 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Unearned revenues, current |
$ |
500 |
|
|
$ |
6 |
|
|
$ |
506 |
|
Other current liabilities |
6,978 |
|
|
125 |
|
|
7,103 |
|
Unearned revenues |
1,620 |
|
|
(110 |
) |
|
1,510 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
Retained earnings |
$ |
542 |
|
|
$ |
840 |
|
|
$ |
1,382 |
|
The following tables summarize the impacts of adopting the new revenue accounting guidance on our condensed consolidated balance sheet and statements of operations (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2019 |
Balance Sheet |
As Reported
ASC 606
|
|
Adjustment |
|
ASC 605 |
Assets |
|
|
|
|
|
Accounts receivable, net |
$ |
3,638 |
|
|
$ |
(851 |
) |
|
$ |
2,787 |
|
Other current assets |
631 |
|
|
(9 |
) |
|
622 |
|
Deferred tax assets |
3,832 |
|
|
45 |
|
|
3,877 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Unearned revenues, current |
$ |
478 |
|
|
$ |
304 |
|
|
$ |
782 |
|
Other current liabilities |
6,741 |
|
|
(366 |
) |
|
6,375 |
|
Unearned revenues |
1,330 |
|
|
109 |
|
|
1,439 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
Retained earnings |
$ |
3,309 |
|
|
$ |
(861 |
) |
|
$ |
2,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
Six Months Ended March 31, 2019 |
Statements of Operations |
As Reported
ASC 606
|
|
Adjustment |
|
ASC 605 |
|
As Reported
ASC 606
|
|
Adjustment |
|
ASC 605 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Equipment and services |
$ |
3,753 |
|
|
$ |
(55 |
) |
|
$ |
3,698 |
|
|
$ |
7,506 |
|
|
$ |
(70 |
) |
|
$ |
7,436 |
|
Licensing |
1,229 |
|
|
(8 |
) |
|
1,221 |
|
|
2,318 |
|
|
43 |
|
|
2,361 |
|
Investment and other income, net |
28 |
|
|
(1 |
) |
|
27 |
|
|
33 |
|
|
1 |
|
|
34 |
|
Income tax (expense) benefit |
(143 |
) |
|
10 |
|
|
(133 |
) |
|
365 |
|
|
4 |
|
|
369 |
|
Net income |
663 |
|
|
(54 |
) |
|
609 |
|
|
1,731 |
|
|
(22 |
) |
|
1,709 |
|
|