Composition of Certain Financial Statement Items (Tables)
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12 Months Ended |
Sep. 27, 2020 |
Balance Sheet Related Disclosures [Abstract] |
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Accounts Receivable |
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Accounts Receivable (in millions) |
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September 27, 2020 |
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September 29, 2019 |
Trade, net of allowances for doubtful accounts |
$ |
2,687 |
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$ |
1,046 |
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Unbilled |
1,305 |
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|
1,411 |
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Other |
11 |
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14 |
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$ |
4,003 |
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$ |
2,471 |
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Inventories |
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Inventories (in millions) |
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September 27, 2020 |
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September 29, 2019 |
Raw materials |
$ |
94 |
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$ |
77 |
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Work-in-process |
1,155 |
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|
667 |
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Finished goods |
1,349 |
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|
656 |
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$ |
2,598 |
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$ |
1,400 |
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Property, Plant and Equipment |
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Property, Plant and Equipment (in millions) |
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September 27, 2020 |
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September 29, 2019 |
Land |
$ |
173 |
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$ |
170 |
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Buildings and improvements |
1,606 |
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|
1,546 |
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Computer equipment and software |
1,427 |
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|
1,356 |
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Machinery and equipment |
5,095 |
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|
4,007 |
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Furniture and office equipment |
90 |
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|
86 |
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Leasehold improvements |
320 |
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|
301 |
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Construction in progress |
134 |
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182 |
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8,845 |
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7,648 |
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Less accumulated depreciation and amortization |
(5,134) |
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(4,567) |
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$ |
3,711 |
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$ |
3,081 |
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Goodwill |
Goodwill and Other Intangible Assets. We allocate goodwill to our reporting units for impairment testing purposes. The following table presents the goodwill allocated to our reportable and nonreportable segments, as described in Note 8, as well as the changes in the carrying amounts of goodwill during fiscal 2020 and 2019 (in millions):
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QCT |
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QTL |
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Nonreportable Segments |
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Total |
Balance at September 30, 2018 |
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$ |
5,587 |
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$ |
718 |
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$ |
193 |
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$ |
6,498 |
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Acquisitions |
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18 |
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— |
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— |
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18 |
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Impairments (Note 9) |
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— |
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— |
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(146) |
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(146) |
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Other (1) |
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(40) |
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(1) |
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(47) |
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(88) |
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Balance at September 29, 2019 (2) |
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5,565 |
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|
717 |
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— |
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6,282 |
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Other (1) |
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40 |
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1 |
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— |
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41 |
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Balance at September 27, 2020 (2) |
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$ |
5,605 |
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$ |
718 |
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$ |
— |
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$ |
6,323 |
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(1)In fiscal 2020, changes in goodwill resulted from certain foreign currency translation adjustments. In fiscal 2019, changes in goodwill amounts resulted from the sale of our mobile health nonreportable segment, foreign currency translation and purchase accounting adjustments.
(2)Cumulative goodwill impairments were $812 million at both September 27, 2020 and September 29, 2019.
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Intangible Assets |
The components of other intangible assets, net were as follows (in millions):
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September 27, 2020 |
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September 29, 2019 |
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Gross Carrying Amount |
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Accumulated Amortization |
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Weighted-average amortization period (years) |
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Gross Carrying Amount |
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Accumulated Amortization |
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Weighted-average amortization period (years) |
Technology-based |
$ |
5,556 |
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$ |
(3,958) |
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|
11 |
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$ |
5,958 |
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|
$ |
(3,851) |
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|
10 |
Other |
105 |
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(50) |
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9 |
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134 |
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(69) |
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9 |
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$ |
5,661 |
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|
$ |
(4,008) |
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11 |
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$ |
6,092 |
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$ |
(3,920) |
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10 |
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Equity Method and Non-marketable Equity Investments |
The carrying values of our equity method and non-marketable equity investments are recorded in other noncurrent assets and were as follows (in millions):
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September 27, 2020 |
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September 29, 2019 |
Equity method investments |
$ |
161 |
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$ |
343 |
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Non-marketable equity investments |
821 |
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|
787 |
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$ |
982 |
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$ |
1,130 |
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Other Current Liabilities |
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Other Current Liabilities (in millions) |
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September 27, 2020 |
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September 29, 2019 |
Customer incentives and other customer-related liabilities |
$ |
1,721 |
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$ |
1,129 |
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Accrual for EC fines (Note 7) |
1,487 |
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|
1,379 |
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Income taxes payable |
549 |
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|
480 |
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Other |
546 |
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|
470 |
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$ |
4,303 |
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$ |
3,458 |
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Accumulated Other Comprehensive Income |
Accumulated Other Comprehensive Income. Changes in the components of accumulated other comprehensive income, net of income taxes, in stockholders’ equity during fiscal 2020 were as follows (in millions):
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Foreign Currency Translation Adjustment |
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Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities |
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Net Unrealized Gains (Losses) on Other Available-for-Sale Debt Securities |
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Net Unrealized Gain (Loss) on Derivative Instruments |
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Other Gains (Losses) |
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Total Accumulated Other Comprehensive Income |
Balance at September 29, 2019 |
$ |
(99) |
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$ |
23 |
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$ |
186 |
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$ |
8 |
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|
$ |
(18) |
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$ |
100 |
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Other comprehensive income before reclassifications |
60 |
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— |
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22 |
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|
29 |
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|
7 |
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|
118 |
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Reclassifications from accumulated other comprehensive income |
7 |
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— |
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(2) |
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(16) |
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— |
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(11) |
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Other comprehensive income |
67 |
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— |
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20 |
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13 |
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7 |
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|
107 |
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Balance at September 27, 2020 |
$ |
(32) |
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$ |
23 |
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$ |
206 |
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$ |
21 |
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$ |
(11) |
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$ |
207 |
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QCT Revenues Disaggregated |
QCT revenue streams were as follows (in millions):
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2020 |
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2019 |
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Handsets |
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$ |
10,461 |
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$ |
9,793 |
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RFFE (1) |
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2,362 |
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1,478 |
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Automotive |
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|
644 |
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|
640 |
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IoT (2) |
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3,026 |
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2,728 |
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Total QCT revenues |
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$ |
16,493 |
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$ |
14,639 |
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(1) Includes all revenues from sales of RFFE integrated circuit products (substantially all of which are used in handsets).
(2) Internet of Things (IoT) revenues primarily include products sold for use in cellular and non-cellular connected devices within the following industry segments or applications: consumer, computing, industrial, fixed wireless broadband, voice and music and wireless networking.
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[1] |
Share-based Compensation Expense |
Total share-based compensation expense, related to all of our share-based awards, was comprised as follows (in millions):
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2020 |
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2019 |
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2018 |
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Cost of revenues |
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$ |
34 |
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$ |
35 |
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$ |
38 |
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Research and development |
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|
872 |
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|
725 |
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|
594 |
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Selling, general and administrative |
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|
306 |
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|
277 |
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|
251 |
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Share-based compensation expense before income taxes |
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1,212 |
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1,037 |
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|
883 |
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Related income tax benefit |
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(238) |
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(184) |
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(140) |
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$ |
974 |
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$ |
853 |
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$ |
743 |
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Restructuring and Restructuring-Related Costs |
Total restructuring and restructuring-related charges related to the Cost Plan were as follows (in millions):
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2019 |
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2018 (1) |
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Total |
Restructuring-related charges (2) |
$ |
151 |
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$ |
334 |
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$ |
485 |
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Restructuring charges (3) |
62 |
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|
353 |
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|
415 |
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$ |
213 |
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$ |
687 |
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$ |
900 |
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(1)During fiscal 2018, we recorded restructuring and restructuring-related charges of $629 million in other expenses and charges of $58 million in investment and other income, net.
(2)Restructuring-related charges primarily related to asset impairment charges in fiscal 2019 and 2018 and also included a $52 million net gain in fiscal 2019 from the sale of certain assets related to wireless electric vehicle charging applications and the sale of our mobile health nonreportable segment, as well as a $41 million gain in fiscal 2018 resulting from fair value adjustments of certain contingent consideration related to a business combination.
(3)Restructuring charges primarily consisted of severance and consulting costs in fiscal 2019 and 2018, which were payable in cash
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Investment and Other Income, net |
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Investment and Other Income, Net (in millions) |
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2020 |
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2019 |
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2018 |
Interest and dividend income |
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$ |
156 |
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$ |
300 |
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$ |
611 |
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Net gains on marketable securities |
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|
198 |
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|
295 |
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|
21 |
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Net gains on other investments |
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|
108 |
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|
68 |
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|
83 |
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Net gains on deferred compensation plan assets |
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|
47 |
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9 |
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|
34 |
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Impairment losses on other investments |
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(405) |
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(135) |
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(75) |
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Net gains (losses) on derivative instruments |
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8 |
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(14) |
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(27) |
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Equity in net losses of investees |
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(21) |
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(93) |
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|
(145) |
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Net (losses) gains on foreign currency transactions |
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(25) |
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|
11 |
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|
37 |
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$ |
66 |
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$ |
441 |
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$ |
539 |
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