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x
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QUARTERLY 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 Dr., San Diego, California
(Address of principal executive offices)
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92121-1714
(Zip Code)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Class
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Number of Shares
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Common Stock, $0.0001 per share par value
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1,703,349,039
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Page
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ITEM 1.
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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June 24,
2012 |
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September 25,
2011 |
||||
ASSETS
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|||||||
Current assets:
|
|
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|
||||
Cash and cash equivalents
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$
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3,412
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|
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$
|
5,462
|
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Marketable securities
|
9,983
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|
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6,190
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|
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Accounts receivable, net
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1,250
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|
993
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|
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Inventories
|
820
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|
765
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|
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Deferred tax assets
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512
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537
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Other current assets
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400
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346
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Total current assets
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16,377
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14,293
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Marketable securities
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13,152
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9,261
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Deferred tax assets
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1,677
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1,703
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Assets held for sale
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—
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746
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|
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Property, plant and equipment, net
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2,888
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2,414
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Goodwill
|
3,843
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3,432
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Other intangible assets, net
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3,845
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3,099
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Other assets
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663
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1,474
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Total assets
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$
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42,445
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$
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36,422
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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|||||||
Current liabilities:
|
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Trade accounts payable
|
$
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1,116
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$
|
969
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Payroll and other benefits related liabilities
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608
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|
644
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Unearned revenues
|
547
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|
610
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Loans and debentures
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968
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994
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Other current liabilities
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2,277
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2,072
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Total current liabilities
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5,516
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5,289
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Unearned revenues
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3,809
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|
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3,541
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Other liabilities
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515
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|
|
620
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|
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Total liabilities
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9,840
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9,450
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Commitments and contingencies (Note 6)
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Stockholders’ equity:
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Qualcomm stockholders’ equity:
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||||
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding
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—
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—
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Common stock, $0.0001 par value; 6,000 shares authorized; 1,712 and 1,681 shares issued
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and outstanding, respectively
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—
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—
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Paid-in capital
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12,096
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10,394
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Retained earnings
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19,868
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16,204
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Accumulated other comprehensive income
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620
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|
353
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|
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Total Qualcomm stockholders’ equity
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32,584
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26,951
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Noncontrolling interests
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21
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21
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Total stockholders’ equity
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32,605
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26,972
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Total liabilities and stockholders’ equity
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$
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42,445
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$
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36,422
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Three Months Ended
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Nine Months Ended
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||||||||||||
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June 24,
2012 |
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June 26,
2011 |
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June 24,
2012 |
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June 26,
2011 |
||||||||
Revenues:
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||||||||
Equipment and services
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$
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2,948
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$
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2,297
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$
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9,253
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$
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6,550
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Licensing
|
1,678
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1,326
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4,998
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|
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4,290
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|
||||
Total revenues
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4,626
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3,623
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14,251
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10,840
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||||||||
Operating expenses:
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Cost of equipment and services revenues
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1,719
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1,278
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5,255
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3,380
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Research and development
|
974
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757
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2,801
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2,144
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||||
Selling, general and administrative
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544
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|
475
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1,643
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1,413
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|
||||
Other
|
7
|
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—
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|
104
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|
|
114
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|
||||
Total operating expenses
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3,244
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|
|
2,510
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9,803
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7,051
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||||||||
Operating income
|
1,382
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1,113
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4,448
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3,789
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|
||||
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||||||||
Investment income, net (Note 3)
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199
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161
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|
589
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|
574
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|
||||
Income from continuing operations before income taxes
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1,581
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1,274
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5,037
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4,363
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|
||||
Income tax expense
|
(375
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)
|
|
(289
|
)
|
|
(993
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)
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(862
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)
|
||||
Income from continuing operations
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1,206
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|
985
|
|
|
4,044
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|
|
3,501
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|
||||
Discontinued operations, net of income taxes (Note 8)
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(3
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)
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44
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753
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(307
|
)
|
||||
Net income
|
1,203
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|
1,029
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|
4,797
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|
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3,194
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|
||||
Net loss attributable to noncontrolling interests
|
4
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6
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|
41
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|
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10
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|
||||
Net income attributable to Qualcomm
|
$
|
1,207
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|
|
$
|
1,035
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|
|
$
|
4,838
|
|
|
$
|
3,204
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|
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|
||||||||
Basic earnings (loss) per share attributable to Qualcomm:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.70
|
|
|
$
|
0.59
|
|
|
$
|
2.40
|
|
|
$
|
2.13
|
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Discontinued operations
|
—
|
|
|
0.03
|
|
|
0.45
|
|
|
(0.19
|
)
|
||||
Net income
|
$
|
0.70
|
|
|
$
|
0.62
|
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|
$
|
2.85
|
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$
|
1.94
|
|
Diluted earnings (loss) per share attributable to Qualcomm:
|
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|
|
|
|
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|
||||||||
Continuing operations
|
$
|
0.69
|
|
|
$
|
0.58
|
|
|
$
|
2.35
|
|
|
$
|
2.09
|
|
Discontinued operations
|
—
|
|
|
0.03
|
|
|
0.43
|
|
|
(0.19
|
)
|
||||
Net income
|
$
|
0.69
|
|
|
$
|
0.61
|
|
|
$
|
2.78
|
|
|
$
|
1.90
|
|
Shares used in per share calculations:
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,715
|
|
|
1,673
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1,699
|
|
|
1,650
|
|
||||
Diluted
|
1,758
|
|
|
1,709
|
|
|
1,740
|
|
|
1,682
|
|
||||
|
|
|
|
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|
||||||||
Dividends per share announced
|
$
|
0.250
|
|
|
$
|
0.215
|
|
|
$
|
0.680
|
|
|
$
|
0.595
|
|
|
Nine Months Ended
|
||||||
|
June 24,
2012 |
|
June 26,
2011 |
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
4,797
|
|
|
$
|
3,194
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
640
|
|
|
820
|
|
||
Gain on sale of wireless spectrum
|
(1,179
|
)
|
|
—
|
|
||
Goodwill impairment
|
23
|
|
|
114
|
|
||
Revenues related to non-monetary exchanges
|
(92
|
)
|
|
(93
|
)
|
||
Income tax provision in excess of (less than) income tax payments
|
239
|
|
|
(1,218
|
)
|
||
Non-cash portion of share-based compensation expense
|
752
|
|
|
568
|
|
||
Incremental tax benefit from stock options exercised
|
(127
|
)
|
|
(167
|
)
|
||
Net realized gains on marketable securities and other investments
|
(214
|
)
|
|
(304
|
)
|
||
Gains on derivative instruments
|
(87
|
)
|
|
(1
|
)
|
||
Other items, net
|
90
|
|
|
50
|
|
||
Changes in assets and liabilities, net of effects of acquisitions:
|
|
|
|
||||
Accounts receivable, net
|
(249
|
)
|
|
21
|
|
||
Inventories
|
(53
|
)
|
|
(43
|
)
|
||
Other assets
|
(31
|
)
|
|
(36
|
)
|
||
Trade accounts payable
|
197
|
|
|
(191
|
)
|
||
Payroll, benefits and other liabilities
|
(412
|
)
|
|
210
|
|
||
Unearned revenues
|
295
|
|
|
156
|
|
||
Net cash provided by operating activities
|
4,589
|
|
|
3,080
|
|
||
Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(1,034
|
)
|
|
(400
|
)
|
||
Purchases of available-for-sale securities
|
(11,804
|
)
|
|
(8,271
|
)
|
||
Proceeds from sale of available-for-sale securities
|
5,774
|
|
|
9,355
|
|
||
Purchases of trading securities
|
(2,280
|
)
|
|
—
|
|
||
Proceeds from sale of trading securities
|
1,297
|
|
|
—
|
|
||
Proceeds from sale of wireless spectrum
|
1,925
|
|
|
—
|
|
||
Acquisitions and other investments, net of cash acquired
|
(677
|
)
|
|
(3,225
|
)
|
||
Other items, net
|
(76
|
)
|
|
(22
|
)
|
||
Net cash used by investing activities
|
(6,875
|
)
|
|
(2,563
|
)
|
||
Financing Activities:
|
|
|
|
||||
Borrowing under loans and debentures
|
710
|
|
|
1,260
|
|
||
Repayment of loans
|
(591
|
)
|
|
(1,260
|
)
|
||
Proceeds from issuance of common stock
|
1,358
|
|
|
2,392
|
|
||
Proceeds from issuance of subsidiary shares to noncontrolling interest
|
85
|
|
|
62
|
|
||
Incremental tax benefit from stock options exercised
|
127
|
|
|
167
|
|
||
Repurchase and retirement of common stock
|
(472
|
)
|
|
—
|
|
||
Dividends paid
|
(1,158
|
)
|
|
(985
|
)
|
||
Change in obligation under securities lending
|
203
|
|
|
42
|
|
||
Other items, net
|
(2
|
)
|
|
(6
|
)
|
||
Net cash provided by financing activities
|
260
|
|
|
1,672
|
|
||
Effect of exchange rate changes on cash
|
(24
|
)
|
|
10
|
|
||
Net (decrease) increase in cash and cash equivalents
|
(2,050
|
)
|
|
2,199
|
|
||
Cash and cash equivalents at beginning of period
|
5,462
|
|
|
3,547
|
|
||
Cash and cash equivalents at end of period
|
$
|
3,412
|
|
|
$
|
5,746
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
June 24,
2012 |
|
June 26,
2011 |
|
June 24,
2012 |
|
June 26,
2011 |
||||||||
Net income
|
$
|
1,203
|
|
|
$
|
1,029
|
|
|
$
|
4,797
|
|
|
$
|
3,194
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation
|
(22
|
)
|
|
—
|
|
|
(33
|
)
|
|
13
|
|
||||
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes
|
(2
|
)
|
|
(2
|
)
|
|
2
|
|
|
(12
|
)
|
||||
Net unrealized (losses) gains on other available-for-sale securities and derivative instruments, net of income taxes
|
(139
|
)
|
|
(7
|
)
|
|
355
|
|
|
215
|
|
||||
Reclassification of net realized gains on available-for-sale securities and derivative instruments included in net income, net of income taxes
|
(44
|
)
|
|
(45
|
)
|
|
(101
|
)
|
|
(179
|
)
|
||||
Reclassification of other-than-temporary losses on available-for-sale securities included in net income, net of income taxes
|
14
|
|
|
3
|
|
|
39
|
|
|
10
|
|
||||
Total other comprehensive (loss) income
|
(193
|
)
|
|
(51
|
)
|
|
262
|
|
|
47
|
|
||||
Total comprehensive income
|
1,010
|
|
|
978
|
|
|
5,059
|
|
|
3,241
|
|
||||
Comprehensive loss attributable to noncontrolling interests
|
6
|
|
|
6
|
|
|
44
|
|
|
10
|
|
||||
Comprehensive income attributable to Qualcomm
|
$
|
1,016
|
|
|
$
|
984
|
|
|
$
|
5,103
|
|
|
$
|
3,251
|
|
|
June 24,
2012 |
|
September 25,
2011 |
||||
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities, net of income taxes
|
$
|
28
|
|
|
$
|
27
|
|
Net unrealized gains on other available-for-sale securities, net of income taxes
|
707
|
|
|
427
|
|
||
Net unrealized losses on derivative instruments, net of income taxes
|
(1
|
)
|
|
(15
|
)
|
||
Foreign currency translation
|
(114
|
)
|
|
(86
|
)
|
||
|
$
|
620
|
|
|
$
|
353
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
June 24,
2012 |
|
June 26,
2011 |
|
June 24,
2012 |
|
June 26,
2011 |
||||||||
Cost of equipment and services revenues
|
$
|
19
|
|
|
$
|
14
|
|
|
$
|
55
|
|
|
$
|
44
|
|
Research and development
|
141
|
|
|
95
|
|
|
394
|
|
|
277
|
|
||||
Selling, general and administrative
|
104
|
|
|
84
|
|
|
302
|
|
|
240
|
|
||||
Continuing operations
|
264
|
|
|
193
|
|
|
751
|
|
|
561
|
|
||||
Related income tax benefit
|
(54
|
)
|
|
(46
|
)
|
|
(163
|
)
|
|
(155
|
)
|
||||
Continuing operations, net of income taxes
|
210
|
|
|
147
|
|
|
588
|
|
|
406
|
|
||||
Discontinued operations
|
—
|
|
|
1
|
|
|
1
|
|
|
7
|
|
||||
Related income tax benefit
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
||||
|
$
|
210
|
|
|
$
|
147
|
|
|
$
|
589
|
|
|
$
|
410
|
|
|
June 24,
2012 |
|
September 25,
2011 |
||||
|
(In millions)
|
||||||
Trade, net of allowances for doubtful accounts of $1 and $2, respectively
|
$
|
1,212
|
|
|
$
|
951
|
|
Long-term contracts
|
30
|
|
|
32
|
|
||
Other
|
8
|
|
|
10
|
|
||
|
$
|
1,250
|
|
|
$
|
993
|
|
|
June 24,
2012 |
|
September 25,
2011 |
||||
|
(In millions)
|
||||||
Raw materials
|
$
|
17
|
|
|
$
|
15
|
|
Work-in-process
|
318
|
|
|
384
|
|
||
Finished goods
|
485
|
|
|
366
|
|
||
|
$
|
820
|
|
|
$
|
765
|
|
|
June 24,
2012 |
|
September 25,
2011 |
||||
|
(In millions)
|
||||||
Customer incentives and other customer-related liabilities
|
$
|
1,023
|
|
|
$
|
1,180
|
|
Current portion of payable to Broadcom (Note 6)
|
170
|
|
|
170
|
|
||
Payable for unsettled securities trades
|
303
|
|
|
298
|
|
||
Payable for securities lending
|
249
|
|
|
46
|
|
||
Other
|
532
|
|
|
378
|
|
||
|
$
|
2,277
|
|
|
$
|
2,072
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
June 24,
2012 |
|
June 26,
2011 |
|
June 24,
2012 |
|
June 26,
2011 |
||||||||
|
(In millions)
|
||||||||||||||
Interest and dividend income
|
$
|
156
|
|
|
$
|
127
|
|
|
$
|
431
|
|
|
$
|
384
|
|
Interest expense
|
(18
|
)
|
|
(29
|
)
|
|
(74
|
)
|
|
(84
|
)
|
||||
Net realized gains on marketable securities
|
68
|
|
|
72
|
|
|
195
|
|
|
302
|
|
||||
Net realized gains on other investments
|
2
|
|
|
1
|
|
|
19
|
|
|
2
|
|
||||
Impairment losses on marketable securities
|
(21
|
)
|
|
(5
|
)
|
|
(58
|
)
|
|
(16
|
)
|
||||
Impairment losses on other investments
|
—
|
|
|
(5
|
)
|
|
(6
|
)
|
|
(10
|
)
|
||||
Gains on derivative instruments
|
13
|
|
|
—
|
|
|
87
|
|
|
1
|
|
||||
Equity in losses of investees
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
||||
|
$
|
199
|
|
|
$
|
161
|
|
|
$
|
589
|
|
|
$
|
574
|
|
|
Qualcomm Stockholders’ Equity
|
|
Noncontrolling Interests
|
|
Total Stockholders’ Equity
|
||||||
Balance at September 25, 2011
|
$
|
26,951
|
|
|
$
|
21
|
|
|
$
|
26,972
|
|
Issuance of subsidiary shares to noncontrolling interest
(1)
|
44
|
|
|
41
|
|
|
85
|
|
|||
Net income (loss)
(2)
|
4,838
|
|
|
(41
|
)
|
|
4,797
|
|
|||
Other comprehensive income (loss)
|
265
|
|
|
(3
|
)
|
|
262
|
|
|||
Common stock issued under employee benefit plans and the related tax benefits, net of shares withheld for tax
|
1,367
|
|
|
—
|
|
|
1,367
|
|
|||
Share-based compensation
|
765
|
|
|
—
|
|
|
765
|
|
|||
Dividends
|
(1,174
|
)
|
|
—
|
|
|
(1,174
|
)
|
|||
Stock repurchases
|
(472
|
)
|
|
—
|
|
|
(472
|
)
|
|||
Other
|
—
|
|
|
3
|
|
|
3
|
|
|||
Balance at June 24, 2012
|
$
|
32,584
|
|
|
$
|
21
|
|
|
$
|
32,605
|
|
|
2012
|
|
2011
|
||||||||||||
|
Per Share
|
|
Total
|
|
Per Share
|
|
Total
|
||||||||
First Quarter
|
$
|
0.215
|
|
|
$
|
368
|
|
|
$
|
0.190
|
|
|
$
|
314
|
|
Second Quarter
|
0.215
|
|
|
377
|
|
|
0.190
|
|
|
319
|
|
||||
Third Quarter
|
0.250
|
|
|
429
|
|
|
0.215
|
|
|
360
|
|
||||
|
$
|
0.680
|
|
|
$
|
1,174
|
|
|
$
|
0.595
|
|
|
$
|
993
|
|
|
Capital
Leases
|
|
Operating
Leases
|
|
Total
|
||||||
Remainder of fiscal 2012
|
$
|
2
|
|
|
$
|
32
|
|
|
$
|
34
|
|
2013
|
10
|
|
|
109
|
|
|
119
|
|
|||
2014
|
10
|
|
|
85
|
|
|
95
|
|
|||
2015
|
11
|
|
|
36
|
|
|
47
|
|
|||
2016
|
11
|
|
|
22
|
|
|
33
|
|
|||
Thereafter
|
268
|
|
|
141
|
|
|
409
|
|
|||
Total minimum lease payments
|
$
|
312
|
|
|
$
|
425
|
|
|
$
|
737
|
|
Deduct: Amounts representing interest
|
175
|
|
|
|
|
|
|||||
Present value of minimum lease payments
|
137
|
|
|
|
|
|
|||||
Deduct: Current portion of capital lease obligations
|
1
|
|
|
|
|
|
|||||
Long-term portion of capital lease obligations
|
$
|
136
|
|
|
|
|
|
•
|
Qualcomm CDMA Technologies (QCT) — develops and supplies integrated circuits and system software based on CDMA, OFDMA and other technologies for use in voice and data communications, networking, application processing, multimedia and global positioning system products.
|
•
|
Qualcomm Technology Licensing (QTL) — grants licenses or otherwise provides rights to use portions of the Company’s intellectual property portfolio, which, among other rights, includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products, including, without limitation, products implementing CDMA2000, WCDMA, CDMA TDD (including TD-SCDMA), GSM/GPRS/EDGE and/or OFDMA standards and their derivatives, and QTL collects license fees as well as royalties based on sales by licensees of products incorporating or using the Company’s intellectual property.
|
•
|
Qualcomm Wireless & Internet (QWI) — comprised of:
|
•
|
Qualcomm Internet Services (QIS) — provides content enablement services for the wireless industry and push-to-talk and other software products and services for wireless network operators;
|
•
|
Qualcomm Government Technologies (QGOV) — provides development and other services and related products involving wireless communications technologies to government agencies and their contractors;
|
•
|
Qualcomm Enterprise Services (QES) — provides fleet management, satellite- and terrestrial-based two-way wireless information and position reporting and other services, software and hardware to transportation and logistics companies; and
|
•
|
Firethorn — builds and manages software applications that enable certain mobile commerce services.
|
•
|
Qualcomm Strategic Initiatives (QSI) — comprised of the Company’s Qualcomm Ventures, Structured Finance & Strategic Investments and FLO TV divisions. QSI makes strategic investments that the Company believes will open new opportunities for its technologies, support the design and introduction of new products or services for voice and data communications or possess unique capabilities or technology. Many of these strategic investments are in early-stage companies. QSI also holds wireless spectrum. The results of QSI’s FLO TV business are presented as discontinued operations (Note 8) and are therefore not included in QSI’s revenues or loss before income taxes.
|
|
QCT
|
|
QTL
|
|
QWI
|
|
QSI
|
|
Reconciling
Items
|
|
Total
|
||||||||||||
For the three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 24, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues
|
$
|
2,869
|
|
|
$
|
1,593
|
|
|
$
|
160
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
4,626
|
|
EBT
|
472
|
|
|
1,407
|
|
|
(6
|
)
|
|
(16
|
)
|
|
(276
|
)
|
|
1,581
|
|
||||||
June 26, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues
|
$
|
2,194
|
|
|
$
|
1,257
|
|
|
$
|
164
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
3,623
|
|
EBT
|
430
|
|
|
1,092
|
|
|
(13
|
)
|
|
(30
|
)
|
|
(205
|
)
|
|
1,274
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the nine months ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 24, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues
|
$
|
9,012
|
|
|
$
|
4,755
|
|
|
$
|
471
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
14,251
|
|
EBT
|
1,810
|
|
|
4,215
|
|
|
(15
|
)
|
|
(149
|
)
|
|
(824
|
)
|
|
5,037
|
|
||||||
June 26, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues
|
$
|
6,272
|
|
|
$
|
4,061
|
|
|
$
|
493
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
10,840
|
|
EBT
|
1,487
|
|
|
3,559
|
|
|
(147
|
)
|
|
(97
|
)
|
|
(439
|
)
|
|
4,363
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
June 24,
2012 |
|
June 26,
2011 |
|
June 24,
2012 |
|
June 26,
2011 |
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Other nonreportable segments
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
16
|
|
|
$
|
17
|
|
Elimination of intersegment revenues
|
(1
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
||||
|
$
|
4
|
|
|
$
|
8
|
|
|
$
|
13
|
|
|
$
|
14
|
|
EBT
|
|
|
|
|
|
|
|
||||||||
Unallocated cost of equipment and services revenues
|
$
|
(73
|
)
|
|
$
|
(73
|
)
|
|
$
|
(211
|
)
|
|
$
|
(103
|
)
|
Unallocated research and development expenses
|
(181
|
)
|
|
(129
|
)
|
|
(519
|
)
|
|
(400
|
)
|
||||
Unallocated selling, general and administrative expenses
|
(114
|
)
|
|
(106
|
)
|
|
(397
|
)
|
|
(353
|
)
|
||||
Unallocated investment income, net
|
204
|
|
|
181
|
|
|
622
|
|
|
642
|
|
||||
Other nonreportable segments
|
(112
|
)
|
|
(78
|
)
|
|
(319
|
)
|
|
(225
|
)
|
||||
|
$
|
(276
|
)
|
|
$
|
(205
|
)
|
|
$
|
(824
|
)
|
|
$
|
(439
|
)
|
|
June 24,
2012 |
|
September 25,
2011 |
||||
QCT
|
$
|
1,878
|
|
|
$
|
1,569
|
|
QTL
|
36
|
|
|
36
|
|
||
QWI
|
137
|
|
|
136
|
|
||
QSI
|
1,554
|
|
|
2,386
|
|
||
Reconciling items
|
38,840
|
|
|
32,295
|
|
||
Total consolidated assets
|
$
|
42,445
|
|
|
$
|
36,422
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
June 24, 2012
|
|
June 26, 2011
|
|
June 24, 2012
|
|
June 26, 2011
|
||||||||
Revenues
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
5
|
|
(Loss) income from discontinued operations
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
$
|
1,163
|
|
|
$
|
(502
|
)
|
Income tax benefit (expense)
|
2
|
|
|
43
|
|
|
(410
|
)
|
|
195
|
|
||||
Discontinued operations, net of income taxes
|
$
|
(3
|
)
|
|
$
|
44
|
|
|
$
|
753
|
|
|
$
|
(307
|
)
|
•
|
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.
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
685
|
|
|
$
|
1,722
|
|
|
$
|
—
|
|
|
$
|
2,407
|
|
Marketable securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities and government-related securities
|
1,084
|
|
|
945
|
|
|
—
|
|
|
2,029
|
|
||||
Corporate bonds and notes
|
—
|
|
|
8,619
|
|
|
—
|
|
|
8,619
|
|
||||
Mortgage- and asset-backed securities
|
—
|
|
|
1,295
|
|
|
68
|
|
|
1,363
|
|
||||
Auction rate securities
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
||||
Non-investment-grade debt securities and funds
|
316
|
|
|
4,403
|
|
|
70
|
|
|
4,789
|
|
||||
Common and preferred stock
|
1,346
|
|
|
798
|
|
|
—
|
|
|
2,144
|
|
||||
Equity funds
|
991
|
|
|
—
|
|
|
—
|
|
|
991
|
|
||||
Debt funds
|
2,333
|
|
|
747
|
|
|
—
|
|
|
3,080
|
|
||||
Total marketable securities
|
6,070
|
|
|
16,807
|
|
|
258
|
|
|
23,135
|
|
||||
Derivative instruments
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||
Other investments
|
185
|
|
|
—
|
|
|
—
|
|
|
185
|
|
||||
Total assets measured at fair value
|
$
|
6,940
|
|
|
$
|
18,555
|
|
|
$
|
258
|
|
|
$
|
25,753
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
Other liabilities
|
185
|
|
|
—
|
|
|
—
|
|
|
185
|
|
||||
Total liabilities measured at fair value
|
$
|
185
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
208
|
|
|
Nine Months Ended June 24, 2012
|
|
Nine Months Ended June 26, 2011
|
||||||||||||||||||||
|
Auction Rate
Securities
|
|
Other Marketable
Securities
|
|
Other Liabilities
|
|
Auction Rate
Securities
|
|
Other Marketable
Securities
|
|
Other Liabilities
|
||||||||||||
Beginning balance of Level 3
|
$
|
124
|
|
|
$
|
27
|
|
|
$
|
7
|
|
|
$
|
126
|
|
|
$
|
18
|
|
|
$
|
8
|
|
Total realized and unrealized gains or losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in investment income, net
|
—
|
|
|
2
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Included in other comprehensive income
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Purchases
|
—
|
|
|
110
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
(4
|
)
|
|
(17
|
)
|
|
—
|
|
|
(6
|
)
|
|
(4
|
)
|
|
—
|
|
||||||
Transfers into Level 3
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Ending balance of Level 3
|
$
|
120
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
$
|
126
|
|
|
$
|
21
|
|
|
$
|
8
|
|
|
Current
|
|
Noncurrent
|
||||||||||||
|
June 24,
2012 |
|
September 25,
2011 |
|
June 24,
2012 |
|
September 25,
2011 |
||||||||
Trading:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities and government-related securities
|
$
|
240
|
|
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
—
|
|
Corporate bonds and notes
|
260
|
|
|
—
|
|
|
127
|
|
|
—
|
|
||||
Mortgage- and asset-backed securities
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
Non-investment-grade debt securities
|
—
|
|
|
—
|
|
|
94
|
|
|
—
|
|
||||
Total trading
|
500
|
|
|
—
|
|
|
603
|
|
|
—
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities and government-related securities
|
881
|
|
|
516
|
|
|
591
|
|
|
6
|
|
||||
Corporate bonds and notes
|
5,006
|
|
|
3,665
|
|
|
3,226
|
|
|
2,353
|
|
||||
Mortgage- and asset-backed securities
|
1,112
|
|
|
587
|
|
|
186
|
|
|
91
|
|
||||
Auction rate securities
|
—
|
|
|
—
|
|
|
120
|
|
|
124
|
|
||||
Non-investment-grade debt securities and funds
|
43
|
|
|
19
|
|
|
4,652
|
|
|
3,653
|
|
||||
Common and preferred stock
|
108
|
|
|
76
|
|
|
2,036
|
|
|
1,713
|
|
||||
Equity funds
|
—
|
|
|
—
|
|
|
991
|
|
|
845
|
|
||||
Debt funds
|
2,333
|
|
|
1,327
|
|
|
245
|
|
|
—
|
|
||||
Total available-for-sale
|
9,483
|
|
|
6,190
|
|
|
12,047
|
|
|
8,785
|
|
||||
Fair value option:
|
|
|
|
|
|
|
|
||||||||
Debt fund
|
—
|
|
|
—
|
|
|
502
|
|
|
476
|
|
||||
Total marketable securities
|
$
|
9,983
|
|
|
$
|
6,190
|
|
|
$
|
13,152
|
|
|
$
|
9,261
|
|
Years to Maturity
|
|
|
|
|
||||||||||||||||||
Less Than
One Year
|
|
One to
Five Years
|
|
Five to
Ten Years
|
|
Greater Than
Ten Years
|
|
No Single
Maturity
Date
|
|
Total
|
||||||||||||
$
|
1,194
|
|
|
$
|
7,537
|
|
|
$
|
2,854
|
|
|
$
|
1,285
|
|
|
$
|
5,525
|
|
|
$
|
18,395
|
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Net Realized Gains
|
||||||
For the three months ended
|
|
|
|
|
|
||||||
June 24, 2012
|
$
|
76
|
|
|
$
|
(7
|
)
|
|
$
|
69
|
|
June 26, 2011
|
74
|
|
|
(2
|
)
|
|
72
|
|
|||
|
|
|
|
|
|
||||||
For the nine months ended
|
|
|
|
|
|
||||||
June 24, 2012
|
$
|
177
|
|
|
$
|
(14
|
)
|
|
$
|
163
|
|
June 26, 2011
|
297
|
|
|
(13
|
)
|
|
284
|
|
|
Cost
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair Value
|
||||||||
June 24, 2012
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
2,660
|
|
|
$
|
517
|
|
|
$
|
(42
|
)
|
|
$
|
3,135
|
|
Debt securities (including debt funds)
|
18,070
|
|
|
388
|
|
|
(63
|
)
|
|
18,395
|
|
||||
|
$
|
20,730
|
|
|
$
|
905
|
|
|
$
|
(105
|
)
|
|
$
|
21,530
|
|
September 25, 2011
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
2,426
|
|
|
$
|
278
|
|
|
$
|
(70
|
)
|
|
$
|
2,634
|
|
Debt securities (including debt funds)
|
12,179
|
|
|
294
|
|
|
(132
|
)
|
|
12,341
|
|
||||
|
$
|
14,605
|
|
|
$
|
572
|
|
|
$
|
(202
|
)
|
|
$
|
14,975
|
|
|
June 24, 2012
|
||||||||||||||
|
Less than 12 months
|
|
More than 12 months
|
||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||
Corporate bonds and notes
|
1,981
|
|
|
(9
|
)
|
|
88
|
|
|
(4
|
)
|
||||
Mortgage- and asset-backed securities
|
254
|
|
|
(1
|
)
|
|
28
|
|
|
—
|
|
||||
Auction rate securities
|
—
|
|
|
—
|
|
|
120
|
|
|
(2
|
)
|
||||
Non-investment-grade debt securities and funds
|
1,274
|
|
|
(25
|
)
|
|
205
|
|
|
(14
|
)
|
||||
Common and preferred stock
|
217
|
|
|
(21
|
)
|
|
9
|
|
|
(1
|
)
|
||||
Equity funds
|
269
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
||||
Debt funds
|
1,252
|
|
|
(8
|
)
|
|
1
|
|
|
—
|
|
||||
|
$
|
5,247
|
|
|
$
|
(84
|
)
|
|
$
|
451
|
|
|
$
|
(21
|
)
|
|
September 25, 2011
|
||||||||||||||
|
Less than 12 months
|
|
More than 12 months
|
||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||
Corporate bonds and notes
|
$
|
1,862
|
|
|
$
|
(41
|
)
|
|
$
|
41
|
|
|
$
|
—
|
|