Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
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 consolidated balance sheet at October 1, 2018 (in millions):
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Balance at September 30, 2018 |
|
Adjustment |
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Opening Balance at October 1, 2018 |
Assets |
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Accounts receivable, net |
$ |
2,904 |
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|
$ |
957 |
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|
$ |
3,861 |
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Other current assets |
699 |
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|
1 |
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|
700 |
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Deferred tax assets |
936 |
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|
(98 |
) |
|
838 |
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Other assets |
1,970 |
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|
1 |
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|
1,971 |
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Liabilities |
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Unearned revenues, current |
$ |
500 |
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|
$ |
6 |
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$ |
506 |
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Other current liabilities |
6,978 |
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|
125 |
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|
7,103 |
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Unearned revenues |
1,620 |
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(110 |
) |
|
1,510 |
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Stockholders’ equity |
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Retained earnings |
$ |
542 |
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$ |
840 |
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$ |
1,382 |
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The following tables summarize the impacts of adopting the new revenue accounting guidance on our consolidated balance sheet and statement of operations (in millions):
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Balance at September 29, 2019 |
Balance Sheet |
As Reported
ASC 606
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Adjustment |
|
ASC 605 |
Assets |
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Accounts receivable, net |
$ |
2,471 |
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|
$ |
(1,171 |
) |
|
$ |
1,300 |
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Other current assets |
634 |
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(35 |
) |
|
599 |
|
Deferred tax assets |
1,196 |
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|
140 |
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|
1,336 |
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Other assets |
3,461 |
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(62 |
) |
|
3,399 |
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Liabilities |
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Unearned revenues, current |
$ |
565 |
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$ |
55 |
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$ |
620 |
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Other current liabilities |
3,458 |
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(169 |
) |
|
3,289 |
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Unearned revenues |
1,160 |
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|
182 |
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|
1,342 |
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Other liabilities |
2,428 |
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(58 |
) |
|
2,370 |
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Stockholders’ equity |
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Retained earnings |
$ |
4,466 |
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$ |
(1,138 |
) |
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$ |
3,328 |
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Year Ended September 29, 2019 |
Statement of Operations |
As Reported
ASC 606
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Adjustment |
|
ASC 605 |
Revenues |
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Equipment and services |
$ |
14,611 |
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$ |
(106 |
) |
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$ |
14,505 |
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Licensing |
9,662 |
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(270 |
) |
|
9,392 |
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Income tax expense |
(3,095 |
) |
|
78 |
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|
(3,017 |
) |
Net income |
4,386 |
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(298 |
) |
|
4,088 |
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Notional Amounts of Outstanding Derivative Positions |
Gross Notional Amounts: The gross notional amounts of our interest rate and foreign currency derivatives by instrument type were as follows (in millions):
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September 29, 2019 |
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September 30, 2018 |
Forwards |
$ |
878 |
|
|
$ |
682 |
|
Options |
176 |
|
|
1,375 |
|
Swaps |
1,750 |
|
|
1,750 |
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|
$ |
2,804 |
|
|
$ |
3,807 |
|
The gross notional amounts of our derivatives by currency were as follows (in millions):
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September 29, 2019 |
|
September 30, 2018 |
Chinese renminbi |
$ |
463 |
|
|
$ |
650 |
|
Euro |
— |
|
|
938 |
|
Indian rupee |
440 |
|
|
336 |
|
Japanese yen |
12 |
|
|
17 |
|
United States dollar |
1,889 |
|
|
1,866 |
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|
$ |
2,804 |
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$ |
3,807 |
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