• | Revenues: 1 $6.62 billion, up 10 percent year-over-year (y-o-y) and 2 percent sequentially. |
• | Operating income: 1 $1.49 billion, down 28 percent y-o-y and 6 percent sequentially. |
• | Net income: 2 $1.88 billion, down 2 percent y-o-y and up 25 percent sequentially. |
• | Diluted earnings per share: 2 $1.09, even y-o-y and up 27 percent sequentially. |
• | Effective tax rate: 1 18 percent. |
• | Operating cash flow: $2.78 billion, up 41 percent y-o-y; 42 percent of revenues. |
• | Return of capital to stockholders: $1.59 billion, including $1.00 billion through repurchases of 14.2 million shares of common stock and $590 million, or $0.35 per share, of cash dividends paid. |
• | Revenues: $6.62 billion, up 10 percent y-o-y and 2 percent sequentially. |
• | Operating income: $1.85 billion, down 24 percent y-o-y and 5 percent sequentially. |
• | Net income: $2.16 billion, down 2 percent y-o-y and up 19 percent sequentially. |
• | Diluted earnings per share: $1.26, even y-o-y and up 20 percent sequentially. |
• | Effective tax rate: 18 percent. |
• | The first quarter of fiscal 2014 results included: |
◦ | $665 million gain ($430 million after tax), or $0.25 per share, in discontinued operations associated with the sale of substantially all of the operations of our Omnitracs division; and |
◦ | $444 million charge ($346 million after tax), or $0.20 per share, that resulted from an impairment charge on certain property, plant and equipment related to our QMT division. |
• | The fourth quarter of fiscal 2013 results included: |
◦ | $173 million charge (before and after tax), or $0.10 per share, related to the verdict in our litigation with ParkerVision. |
• | MSMTM chip shipments: 213 million units, up 17 percent y-o-y and 12 percent sequentially. |
• | September quarter total reported device sales: approximately $61.6 billion, up 16 percent y-o-y and 2 percent sequentially. |
◦ | September quarter estimated 3G/4G device shipments: approximately 276 to 280 million units, at an estimated average selling price of approximately $219 to $225 per unit. |
($ in millions) | Non-GAAP | QSI | Share-Based Compensation | Acquisition-Related Items | GAAP | ||||||||||||||
First quarter fiscal 2014 | $ | 1,152 | $ | 2 | $ | 173 | $ | 1 | $ | 1,328 | |||||||||
As % of revenues | 17 | % | 20 | % | |||||||||||||||
First quarter fiscal 2013 | $ | 949 | $ | 1 | $ | 156 | $ | — | $ | 1,106 | |||||||||
As % of revenues | 16 | % | 18 | % | |||||||||||||||
Year-over-year change ($) | 21 | % | N/M | 11 | % | N/M | 20 | % |
($ in millions) | Non-GAAP | QSI | Share-Based Compensation | Acquisition-Related Items | GAAP | ||||||||||||||
First quarter fiscal 2014 | $ | 517 | $ | 3 | $ | 96 | $ | 7 | $ | 623 | |||||||||
As % of revenues | 8 | % | 9 | % | |||||||||||||||
First quarter fiscal 2013 | $ | 468 | $ | 7 | $ | 105 | $ | 7 | $ | 587 | |||||||||
As % of revenues | 8 | % | 10 | % | |||||||||||||||
Year-over-year change ($) | 10 | % | N/M | (9 | %) | N/M | 6 | % |
SECOND FISCAL QUARTER | |||||||
Q2 FY13 Results | Current Guidance Q2 FY14 Estimates | ||||||
Revenues | $6.12 | B | $6.1B - $6.7B | ||||
Year-over-year change | even - increase 9% | ||||||
Non-GAAP diluted earnings per share (EPS) | $1.17 | $1.15 - $1.25 | |||||
Year-over-year change | decrease 2% - increase 7% | ||||||
Diluted EPS attributable to QSI | $0.02 | $0.00 | |||||
Diluted EPS attributable to share-based compensation | ($0.12 | ) | ($0.12 | ) | |||
Diluted EPS attributable to acquisition-related items | ($0.05 | ) | ($0.04 | ) | |||
Diluted EPS attributable to tax items | $0.04 | N/A | |||||
GAAP diluted EPS | $1.06 | $0.99 - $1.09 | |||||
Year-over-year change | decrease 7% - increase 3% | ||||||
Metrics | |||||||
MSM chip shipments | 173M | 180M - 195M | |||||
Year-over-year change | increase 4% - 13% | ||||||
Total reported device sales (1) | approx. $61.1B* | approx. $66.5B - $72.5B* | |||||
Year-over-year change | increase 9% - 19% | ||||||
*Est. sales in December quarter, reported in March quarter |
FISCAL YEAR | ||||||||||
FY 2013 Results | Prior Guidance FY 2014 Estimates (2) | Current Guidance FY 2014 Estimates (2) | ||||||||
Revenues | $24.87 | B | $26.0B - $27.5B | $26.0B - $27.5B | ||||||
Year-over-year change | increase 5% - 11% | increase 5% - 11% | ||||||||
Non-GAAP diluted EPS | $4.51 | $4.95 - $5.15 | $5.00 - $5.20 | |||||||
Year-over-year change | increase 10% - 14% | increase 11% - 15% | ||||||||
Diluted EPS attributable to QSI | $0.02 | ($0.03 | ) | $0.00 | ||||||
Diluted EPS attributable to share-based compensation | ($0.51 | ) | ($0.51 | ) | ($0.51 | ) | ||||
Diluted EPS attributable to acquisition-related items | ($0.16 | ) | ($0.16 | ) | ($0.16 | ) | ||||
Diluted EPS attributable to tax items | $0.04 | N/A | N/A | |||||||
GAAP diluted EPS | $3.91 | $4.25 - $4.45 | $4.33 - $4.53 | |||||||
Year-over-year change | increase 9% - 14% | increase 11% - 16% | ||||||||
Metrics | ||||||||||
Est. fiscal year* 3G/4G-based device average selling price range (1) | approx. $223 - $229 | approx. $216 - $230 | approx. $216 - $230 | |||||||
*Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters |
CALENDAR YEAR Device Estimates (1) | |||||
Prior Guidance Calendar 2013 Estimates | Current Guidance Calendar 2013 Estimates | Prior Guidance Calendar 2014 Estimates | Current Guidance Calendar 2014 Estimates | ||
Est. 3G/4G device shipments | |||||
March quarter | approx. 244M - 248M | approx. 244M - 248M | not provided | not provided | |
June quarter | approx. 260M - 264M | approx. 260M - 264M | not provided | not provided | |
September quarter | not provided | approx. 276M - 280M | not provided | not provided | |
December quarter | not provided | not provided | not provided | not provided | |
Est. calendar year range (approx.) | 1,075M - 1,125M | 1,080M - 1,120M | 1,220M - 1,300M | 1,220M - 1,300M | |
Est. calendar year midpoint (approx.) (3) | 1,100M | 1,100M | 1,260M | 1,260M |
(1) | Total reported device sales is the sum of all reported sales in U.S. dollars (as reported to us by our licensees) of all licensed CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period (collectively, 3G/4G devices). The reported quarterly estimated ranges of average selling prices (ASPs) and unit shipments are determined based on the information as reported to us by our licensees during the relevant period and our own estimates of the selling prices and unit shipments for licensees that do not provide such information. Not all licensees report sales, selling prices and/or unit shipments the same way (e.g., some licensees report selling prices net of permitted deductions, such as transportation, insurance and packing costs, while other licensees report selling prices and then identify the amount of permitted deductions in their reports), and the way in which licensees report such information may change from time to time. Total reported device sales, estimated unit shipments and estimated ASPs for a particular period may include prior period activity that was not reported by the licensee until such particular period. |
(2) | Our prior and current outlook for FY 2014 diluted earnings per share includes an estimate of the benefit related to stock repurchases that we plan to complete during the fiscal year. FY 2014 guidance also reflects an annual effective tax rate that includes an estimate of the United States federal R&D tax credit expected to be generated through December 31, 2013, the date on which the credit expired. |
(3) | The midpoints of the estimated calendar year ranges are identified for comparison purposes only and do not indicate a higher degree of confidence in the midpoints. |
SEGMENTS | QCT | QTL | Non-GAAP Reconciling Items (1) (2) | Non-GAAP (3) | QSI (3) | Share-Based Compensation (3) | Acquisition-Related Items (3) | Tax Items | GAAP | ||||||||||||||||
Q1 - FISCAL 2014 | |||||||||||||||||||||||||
Revenues | $4,616 | $1,900 | $106 | $6,622 | $— | $— | $— | $— | $6,622 | ||||||||||||||||
Change from prior year | 12 | % | 8 | % | (25 | %) | 10 | % | 10 | % | |||||||||||||||
Change from prior quarter | 4 | % | 1 | % | (29 | %) | 2 | % | 2 | % | |||||||||||||||
Operating income (loss) | $1,848 | ($5) | ($281) | ($69) | $— | $1,493 | |||||||||||||||||||
Change from prior year | (24 | %) | 38 | % | — | % | 1 | % | (28 | %) | |||||||||||||||
Change from prior quarter | (5 | %) | 55 | % | (3 | %) | (3 | %) | (6 | %) | |||||||||||||||
EBT | $906 | $1,670 | ($473) | $2,103 | $4 | ($281) | ($69) | $— | $1,757 | ||||||||||||||||
Change from prior year | (15 | %) | 9 | % | N/M | (22 | %) | N/M | — | % | 1 | % | (24 | %) | |||||||||||
Change from prior quarter | 29 | % | 3 | % | N/M | (3 | %) | N/M | (3 | %) | (3 | %) | (4 | %) | |||||||||||
EBT as % of revenues | 20 | % | 88 | % | N/M | 32 | % | 27 | % | ||||||||||||||||
Discontinued operations, net of tax (4) | $430 | $— | $— | $— | $— | $430 | |||||||||||||||||||
Net income (loss) | $2,163 | $4 | ($226) | ($66) | $— | $1,875 | |||||||||||||||||||
Change from prior year | (2 | %) | N/M | (3 | %) | 1 | % | N/A | (2 | %) | |||||||||||||||
Change from prior quarter | 19 | % | N/M | — | % | 1 | % | N/A | 25 | % | |||||||||||||||
Diluted EPS | $1.26 | $0.00 | ($0.13) | ($0.04) | $— | $1.09 | |||||||||||||||||||
Change from prior year | — | % | N/M | (8 | %) | — | % | N/A | — | % | |||||||||||||||
Change from prior quarter | 20 | % | N/M | — | % | — | % | N/A | 27 | % | |||||||||||||||
Diluted shares used | 1,722 | 1,722 | 1,722 | 1,722 | 1,722 | 1,722 | |||||||||||||||||||
Q4 - FISCAL 2013 | |||||||||||||||||||||||||
Revenues | $4,457 | $1,874 | $149 | $6,480 | $— | $— | $— | $— | $6,480 | ||||||||||||||||
Operating income (loss) | 1,940 | (11) | (274) | (67) | — | 1,588 | |||||||||||||||||||
EBT | $702 | $1,622 | ($151) | 2,173 | (11) | (274) | (67) | — | 1,821 | ||||||||||||||||
Net income (loss) | 1,818 | (24) | (226) | (67) | — | 1,501 | |||||||||||||||||||
Diluted EPS | $1.05 | ($0.01) | ($0.13) | ($0.04) | $— | $0.86 | |||||||||||||||||||
Diluted shares used | 1,738 | 1,738 | 1,738 | 1,738 | 1,738 | 1,738 | |||||||||||||||||||
Q1 - FISCAL 2013 | |||||||||||||||||||||||||
Revenues | $4,120 | $1,757 | $141 | $6,018 | $— | $— | $— | $— | $6,018 | ||||||||||||||||
Operating income (loss) | 2,447 | (8) | (281) | (70) | — | 2,088 | |||||||||||||||||||
EBT | $1,068 | $1,532 | $95 | 2,695 | (17) | (281) | (70) | — | 2,327 | ||||||||||||||||
Net income (loss) | 2,204 | (12) | (219) | (67) | — | 1,906 | |||||||||||||||||||
Diluted EPS | $1.26 | ($0.01) | ($0.12) | ($0.04) | $— | $1.09 | |||||||||||||||||||
Diluted shares used | 1,751 | 1,751 | 1,751 | 1,751 | 1,751 | 1,751 | |||||||||||||||||||
Q2 - FISCAL 2013 | |||||||||||||||||||||||||
Revenues | $3,916 | $2,057 | $151 | $6,124 | $— | $— | $— | $— | $6,124 | ||||||||||||||||
Operating income (loss) | 2,233 | (5) | (268) | (83) | — | 1,877 | |||||||||||||||||||
EBT | $681 | $1,803 | ($30) | 2,454 | 33 | (268) | (83) | — | 2,136 | ||||||||||||||||
Net income (loss) | 2,066 | 36 | (220) | (80) | 64 | 1,866 | |||||||||||||||||||
Diluted EPS | $1.17 | $0.02 | ($0.12) | ($0.05) | $0.04 | $1.06 | |||||||||||||||||||
Diluted shares used | 1,763 | 1,763 | 1,763 | 1,763 | 1,763 | 1,763 | |||||||||||||||||||
12 MONTHS - FISCAL 2013 | |||||||||||||||||||||||||
Revenues | $16,715 | $7,554 | $597 | $24,866 | $— | $— | $— | $— | $24,866 | ||||||||||||||||
Operating income (loss) | 8,657 | (31) | (1,103) | (293) | — | 7,230 | |||||||||||||||||||
EBT | $3,189 | $6,590 | ($245) | 9,534 | 56 | (1,103) | (293) | — | 8,194 | ||||||||||||||||
Net income (loss) | 7,911 | 43 | (886) | (279) | 64 | 6,853 | |||||||||||||||||||
Diluted EPS | $4.51 | $0.02 | ($0.51) | ($0.16) | $0.04 | $3.91 | |||||||||||||||||||
Diluted shares used | 1,754 | 1,754 | 1,754 | 1,754 | 1,754 | 1,754 |
(1) | Non-GAAP reconciling items related to revenues consisted primarily of nonreportable segment revenues less intersegment eliminations. Non-GAAP reconciling items related to earnings before taxes consisted primarily of certain costs of equipment and services revenues, research and development expenses, sales and marketing expenses, other operating expenses and certain investment income or losses and interest expense that are not allocated to the segments for management reporting purposes; nonreportable segment results; and the elimination of intersegment profit. |
(2) | During the first quarter of fiscal 2014, as a result of the reassessment of management reporting, the Qualcomm Wireless & Internet (QWI) segment was eliminated. Revenues and operating results for the divisions that comprised the QWI segment are included in Non-GAAP reconciling items. Prior period information has been adjusted to conform to the current presentation. |
(3) | At fiscal year end, the sum of the quarterly tax provision (benefit) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and this difference is allocated to tax provisions (benefits) among the columns. |
(4) | During the first quarter of fiscal 2014, a gain of $665 million was recorded associated with the sale of substantially all of the operations of our Omnitracs division. |
• | QSI is excluded because the Company expects to exit its strategic investments at various times, and the effects of fluctuations in the value of such investments and realized gains or losses are viewed by management as unrelated to the Company’s operational performance. |
• | Share-based compensation expense primarily relates to restricted stock units. Certain share-based compensation is excluded because management views such expenses as unrelated to the operating activities of the Company’s ongoing core businesses. Further, the fair values of share-based awards are affected by factors that are variable on each grant date, which may include the Company’s stock price, stock market volatility, expected award life, risk-free interest rates and expected dividend payouts in future years. |
• | Acquisition-related items include amortization and impairment of certain intangible assets, recognition of the step-up of inventories to fair value and the related tax effects of these items starting with acquisitions completed in the third quarter of fiscal 2011, as well as any tax effects from restructuring the ownership of such acquired assets. Additionally, the Company excludes expenses related to the termination of contracts that limit the use of the acquired intellectual property. These acquisition-related items are excluded and are not allocated to the Company’s segments because management views such expenses as unrelated to the operating activities of the Company’s ongoing core businesses. In addition, these charges are impacted by the size and timing of acquisitions, potentially obscuring period-to-period comparisons of the Company’s operating businesses. |
• | Certain tax items that are unrelated to the fiscal year in which they were recorded are excluded in order to provide a clearer understanding of the Company’s ongoing Non-GAAP tax rate and after tax earnings. |
Three Months Ended December 29, 2013 | ||||||||||||||||||||||||||
Non-GAAP Results | QSI | Share-Based Compensation | Acquisition-Related Items | GAAP Results | ||||||||||||||||||||||
($ in millions, except per share data) | ||||||||||||||||||||||||||
Cost of equipment and services revenues | $ | 2,633 | $ | — | $ | 12 | $ | 61 | $ | 2,706 | ||||||||||||||||
R&D | 1,152 | 2 | 173 | 1 | 1,328 | |||||||||||||||||||||
SG&A | 517 | 3 | 96 | 7 | 623 | |||||||||||||||||||||
Other expenses | 472 | (a) | — | — | — | 472 | ||||||||||||||||||||
Operating income (loss) | 1,848 | (5 | ) | (281 | ) | (69 | ) | 1,493 | ||||||||||||||||||
Investment income, net | $ | 255 | (b) | $ | 9 | (c) | $ | — | $ | — | $ | 264 | ||||||||||||||
Tax rate | 18 | % | 25 | % | 20 | % | 4 | % | 18 | % | ||||||||||||||||
Net income (loss) | $ | 2,163 | $ | 4 | $ | (226 | ) | $ | (66 | ) | $ | 1,875 | ||||||||||||||
Diluted EPS | $ | 1.26 | $ | 0.00 | $ | (0.13 | ) | $ | (0.04 | ) | $ | 1.09 |
(a) | Included a $444 million loss, or $0.20 per share, that resulted from an impairment charge on certain property, plant and equipment related to our QMT division, a $16 million goodwill impairment charge related to our QRS division and a $12 million charge related to the ParkerVision verdict. |
(b) | Included $156 million in interest and dividend income, $126 million in net realized gains on investments and $6 million in net gains on derivatives, partially offset by $30 million in other-than-temporary losses on investments and $3 million in interest expense. |
(c) | Included $19 million in net realized gains on investments, partially offset by $7 million in other-than-temporary losses on investments, $2 million in net losses on derivatives and $1 million in equity in losses of investees. |
Three Months Ended December 29, 2013 | |||||||||||||||||||
Non-GAAP Results | QSI | Share-Based Compensation | Acquisition-Related Items | GAAP Results | |||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 2,103 | $ | 4 | $ | (281 | ) | $ | (69 | ) | $ | 1,757 | |||||||
Income tax (expense) benefit | (370 | ) | (1 | ) | 55 | 3 | (313 | ) | |||||||||||
Income (loss) from continuing operations | $ | 1,733 | $ | 3 | $ | (226 | ) | $ | (66 | ) | $ | 1,444 | |||||||
Tax rate | 18 | % | 25 | % | 20 | % | 4 | % | 18 | % |
(a) | At fiscal year end, the sum of the quarterly tax provision (benefit) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and this difference is allocated to tax provisions (benefits) among the columns. |
December 29, 2013 | September 29, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 8,292 | $ | 6,142 | |||
Marketable securities | 8,988 | 8,824 | |||||
Accounts receivable, net | 1,327 | 2,142 | |||||
Inventories | 1,064 | 1,302 | |||||
Deferred tax assets | 404 | 573 | |||||
Other current assets | 510 | 572 | |||||
Total current assets | 20,585 | 19,555 | |||||
Marketable securities | 14,330 | 14,440 | |||||
Deferred tax assets | 1,346 | 1,059 | |||||
Property, plant and equipment, net | 2,562 | 2,995 | |||||
Goodwill | 4,212 | 3,976 | |||||
Other intangible assets, net | 2,490 | 2,553 | |||||
Other assets | 757 | 938 | |||||
Total assets | $ | 46,282 | $ | 45,516 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 1,375 | $ | 1,554 | |||
Payroll and other benefits related liabilities | 706 | 839 | |||||
Unearned revenues | 470 | 501 | |||||
Other current liabilities | 2,762 | 2,319 | |||||
Total current liabilities | 5,313 | 5,213 | |||||
Unearned revenues | 3,566 | 3,666 | |||||
Other liabilities | 376 | 550 | |||||
Total liabilities | 9,255 | 9,429 | |||||
Stockholders’ equity: | |||||||
Qualcomm stockholders’ equity: | |||||||
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding | — | — | |||||
Common stock, $0.0001 par value; 6,000 shares authorized; 1,687 and 1,685 shares issued and outstanding, respectively | — | — | |||||
Paid-in capital | 9,506 | 9,874 | |||||
Retained earnings | 26,737 | 25,461 | |||||
Accumulated other comprehensive income | 784 | 753 | |||||
Total Qualcomm stockholders’ equity | 37,027 | 36,088 | |||||
Noncontrolling interests | — | (1 | ) | ||||
Total stockholders’ equity | 37,027 | 36,087 | |||||
Total liabilities and stockholders’ equity | $ | 46,282 | $ | 45,516 |
Three Months Ended | |||||||
December 29, 2013 | December 30, 2012 | ||||||
Revenues: | |||||||
Equipment and services | $ | 4,653 | $ | 4,199 | |||
Licensing | 1,969 | 1,819 | |||||
Total revenues | 6,622 | 6,018 | |||||
Costs and expenses: | |||||||
Cost of equipment and services revenues | 2,706 | 2,237 | |||||
Research and development | 1,328 | 1,106 | |||||
Selling, general and administrative | 623 | 587 | |||||
Other | 472 | — | |||||
Total costs and expenses | 5,129 | 3,930 | |||||
Operating income | 1,493 | 2,088 | |||||
Investment income, net | 264 | 239 | |||||
Income from continuing operations before income taxes | 1,757 | 2,327 | |||||
Income tax expense | (313 | ) | (424 | ) | |||
Income from continuing operations | 1,444 | 1,903 | |||||
Discontinued operations, net of income taxes | 430 | — | |||||
Net income | 1,874 | 1,903 | |||||
Net loss attributable to noncontrolling interests | 1 | 3 | |||||
Net income attributable to Qualcomm | $ | 1,875 | $ | 1,906 | |||
Basic earnings per share attributable to Qualcomm: | |||||||
Continuing operations | $ | 0.86 | $ | 1.12 | |||
Discontinued operations | 0.25 | — | |||||
Net income | $ | 1.11 | $ | 1.12 | |||
Diluted earnings per share attributable to Qualcomm: | |||||||
Continuing operations | $ | 0.84 | $ | 1.09 | |||
Discontinued operations | 0.25 | — | |||||
Net income | $ | 1.09 | $ | 1.09 | |||
Shares used in per share calculations: | |||||||
Basic | 1,688 | 1,709 | |||||
Diluted | 1,722 | 1,751 | |||||
Dividends per share announced | $ | 0.35 | $ | 0.25 |
Three Months Ended | |||||||
December 29, 2013 | December 30, 2012 | ||||||
Operating Activities: | |||||||
Net income | $ | 1,874 | $ | 1,903 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization expense | 272 | 241 | |||||
Gain on sale of discontinued operations | (665 | ) | — | ||||
Goodwill and long-lived asset impairment charges | 460 | 5 | |||||
Revenues related to non-monetary exchanges | (31 | ) | (31 | ) | |||
Income tax provision in excess of income tax payments | 258 | 195 | |||||
Non-cash portion of share-based compensation expense | 282 | 283 | |||||
Incremental tax benefits from share-based compensation | (99 | ) | (61 | ) | |||
Net realized gains on marketable securities and other investments | (145 | ) | (96 | ) | |||
Net impairment losses on marketable securities and other investments | 37 | 10 | |||||
Other items, net | 33 | 24 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 788 | (185 | ) | ||||
Inventories | 237 | (247 | ) | ||||
Other assets | 69 | (51 | ) | ||||
Trade accounts payable | (148 | ) | 376 | ||||
Payroll, benefits and other liabilities | (342 | ) | (387 | ) | |||
Unearned revenues | (99 | ) | (4 | ) | |||
Net cash provided by operating activities | 2,781 | 1,975 | |||||
Investing Activities: | |||||||
Capital expenditures | (210 | ) | (205 | ) | |||
Purchases of available-for-sale securities | (2,055 | ) | (3,289 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 2,168 | 2,226 | |||||
Purchases of trading securities | (785 | ) | (970 | ) | |||
Proceeds from sales and maturities of trading securities | 773 | 1,024 | |||||
Proceeds from sale of discontinued operations, net of cash sold | 788 | — | |||||
Acquisitions and other investments, net of cash acquired | (315 | ) | (39 | ) | |||
Other items, net | 81 | 26 | |||||
Net cash provided (used) by investing activities | 445 | (1,227 | ) | ||||
Financing Activities: | |||||||
Proceeds from issuance of common stock | 441 | 340 | |||||
Incremental tax benefits from share-based compensation | 99 | 61 | |||||
Repurchases and retirements of common stock | (1,002 | ) | (250 | ) | |||
Dividends paid | (590 | ) | (428 | ) | |||
Other items, net | (21 | ) | 2 | ||||
Net cash used by financing activities | (1,073 | ) | (275 | ) | |||
Changes in cash and cash equivalents held for sale | (4 | ) | 13 | ||||
Effect of exchange rate changes on cash and cash equivalents | 1 | — | |||||
Net increase in cash and cash equivalents | 2,150 | 486 | |||||
Cash and cash equivalents at beginning of period | 6,142 | 3,807 | |||||
Cash and cash equivalents at end of period | $ | 8,292 | $ | 4,293 |