QUALCOMM Incorporated Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items

Composition of Certain Financial Statement Items

6 Months Ended

Mar. 30, 2014

Notes to Financial Statements [Abstract]

Note 2 - Composition of Certain Financial Statement Items

Note 2 — Composition of Certain Financial Statement Items



Inventories (in millions)
	March 30, 2014		September 29, 2013
Raw materials	$	2	$	2
Work-in-process	505		631
Finished goods	640		669
	$	1,147	$	1,302



Property, Plant and Equipment (in millions)
	March 30, 2014			September 29, 2013
Land	$	214		$	212
Buildings and improvements	1,597			1,733
Computer equipment and software	1,487			1,425
Machinery and equipment	2,193			2,013
Furniture and office equipment	88			87
Leasehold improvements	244			218
Construction in progress	166			480
	5,989			6,168
Less accumulated depreciation and amortization	(3,416		)	(3,173		)
	$	2,573		$	2,995

During fiscal 2012, the Company’s QMT division updated its business plan to focus on licensing its next generation interferometric modulator (IMOD) display technology while directly commercializing only certain IMOD products. In the course of pursuing its licensing model, the Company considered various alternatives for one of its manufacturing facilities in Taiwan. During the first quarter of fiscal 2014, as a result of further discussions with potential buyers and consideration of alternative uses for the separate asset groups that comprise the manufacturing facility, the Company decreased its estimates of expected cash flows from those assets and recorded an impairment charge of $444 million in other operating expenses. The Company also considered whether a triggering event had occurred in the first quarter of fiscal 2014 that would require impairment testing for its remaining QMT assets, including goodwill, and concluded that no such event had occurred as QMT’s licensing business plan does not utilize this manufacturing facility. At March 30, 2014, the carrying values of the QMT division’s goodwill and property, plant and equipment were $133 million and $240 million, respectively, including $44 million in property, plant and equipment that was classified as held for sale and included in other assets.



Other Current Liabilities (in millions)
	March 30, 2014		September 29, 2013
Customer incentives and other customer-related liabilities	$	1,995	$	1,706
Other	991		613
	$	2,986	$	2,319