Q4 Fiscal 2016 | Q4 Fiscal 2015 | Year-Over-Year Change | Q3 Fiscal 2016 | Sequential Change | |||||
Revenues | $6.2B | $5.5B | +13% | $6.0B | +2% | ||||
Operating income | $1.8B | $1.1B | +58% | $1.6B | +13% | ||||
Net income 1 | $1.6B | $1.1B | +51% | $1.4B | +11% | ||||
Diluted earnings per share 1 | $1.07 | $0.67 | +60% | $0.97 | +10% | ||||
Operating cash flow | $2.1B | $1.7B | +24% | $1.8B | +13% |
Fiscal 2016 | Fiscal 2015 | Year-Over-Year Change | |||
Revenues | $23.6B | $25.3B | (7%) | ||
Operating income | $6.5B | $5.8B | +12% | ||
Net income | $5.7B | $5.3B | +8% | ||
Diluted earnings per share | $3.81 | $3.22 | +18% | ||
Operating cash flow | $7.4B | $5.5B | +34% |
Q4 Fiscal 2016 | Q4 Fiscal 2015 | Year-Over-Year Change | Q3 Fiscal 2016 | Sequential Change | |||||
Revenues | $6.2B | $5.5B | +13% | $6.0B | +2% | ||||
Operating income | $2.2B | $1.6B | +35% | $2.0B | +7% | ||||
Net income | $1.9B | $1.4B | +33% | $1.7B | +10% | ||||
Diluted earnings per share | $1.28 | $0.91 | +41% | $1.16 | +10% |
Fiscal 2016 | Fiscal 2015 | Year-Over-Year Change | |||
Revenues | $23.5B | $25.3B | (7%) | ||
Operating income | $7.8B | $8.6B | (9%) | ||
Net income | $6.7B | $7.6B | (13%) | ||
Diluted earnings per share | $4.44 | $4.66 | (5%) |
• | Fiscal 2016 GAAP results included: |
◦ | $154 million of charges, or $0.07 per share, that resulted from net restructuring and restructuring-related charges related to our Strategic Realignment Plan in fiscal 2016; and |
◦ | $380 million gain, or $0.20 per share, related to the sale of our wireless spectrum in the United Kingdom in the first quarter of fiscal 2016. |
• | Fiscal 2016 GAAP and Non-GAAP results included: |
◦ | $266 million of revenues, or $0.13 per share, due to the termination of an infrastructure license agreement resulting from the merger of two licensees in the second quarter of fiscal 2016; and |
◦ | $235 million of revenues, or $0.11 per share, due to the recognition of previously deferred royalty revenues related to the dismissal of the arbitration with LG Electronics, Inc. in the third quarter of fiscal 2016. |
• | Fiscal 2015 GAAP results included: |
◦ | $975 million charge, or $0.58 per share, related to the resolution reached with the China National Development and Reform Commission (NDRC) regarding its investigation of us under China’s Anti-Monopoly Law in the second quarter of fiscal 2015; |
◦ | $142 million of charges, or $0.08 per share, that resulted from an impairment of goodwill and long-lived assets related to one of our display businesses in the third quarter of fiscal 2015; |
◦ | $190 million of charges, or $0.09 per share, that resulted from restructuring and restructuring-related charges related to our Strategic Realignment Plan in the fourth quarter of fiscal 2015; and |
◦ | Operating cash flow was impacted by the prepayment of $950 million to secure long-term capacity commitments at a supplier of our integrated circuit products in the second quarter of fiscal 2015. |
Q4 Fiscal 2016 | Q4 Fiscal 2015 | Year-Over-Year Change (1) | Q3 Fiscal 2016 | Sequential Change (1) | |||||
QCT | |||||||||
Revenues | $4,124M | $3,625M | +14% | $3,853M | +7% | ||||
Earnings before taxes (EBT) | $687M | $280M | +145% | $365M | +88% | ||||
EBT as % of revenues | 17% | 8% | +9% | 9% | +8% | ||||
MSMTM chip shipments | 211M | 203M | +4% | 201M | +5% | ||||
QTL | |||||||||
Revenues | $1,885M | $1,785M | +6% | $2,038M | (8%) | ||||
EBT | $1,584M | $1,487M | +7% | $1,749M | (9%) | ||||
EBT as % of revenues | 84% | 83% | +1% | 86% | (2%) | ||||
Total reported device sales (2) (3) | $74.2B | $58.3B | +27% | $62.6B | +19% | ||||
Est. reported 3G/4G device shipments | 401M - 405M | 276M - 280M | +45% | 321M - 325M | +25% | ||||
Est. reported 3G/4G average selling price | $181 - $187 | $207 - $213 | (12%) | $191 - $197 | (5%) |
Fiscal 2016 | Fiscal 2015 | Year-Over-Year Change (1) | |||
QCT | |||||
Revenues | $15,409M | $17,154M | (10%) | ||
Earnings before taxes (EBT) | $1,812M | $2,465M | (26%) | ||
EBT as % of revenues | 12% | 14% | (2%) | ||
MSM chip shipments | 842M | 932M | (10%) | ||
QTL | |||||
Revenues | $7,664M | $7,947M | (4%) | ||
EBT | $6,528M | $6,882M | (5%) | ||
EBT as % of revenues | 85% | 87% | (2%) | ||
Total reported device sales (2) (3) | $267.4B | $250.9B | +7% | ||
Est. reported 3G/4G device shipments | 1,364M - 1,380M | 1,233M - 1,249M | +11% | ||
Est. reported 3G/4G average selling price | $192 - $198 | $199 - $205 | (3%) |
(1) | The sequential changes and year-over-year for estimated reported 3G/4G device shipments and average selling prices are calculated at the midpoints. The midpoints of the estimated ranges are used for comparison purposes only and do not indicate a higher degree of confidence in the midpoints. |
(2) | 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 |
(3) | The fourth quarter of fiscal 2015 and 2016 are based on sales by our licensees in the June quarter as reported to us in the September quarter, and the third quarter of fiscal 2016 is based on sales by our licensees in the March quarter as reported to us in the June quarter. Fiscal 2015 and 2016 are based on sales of our licensees in the September to June quarters as reported to us in the December to September quarters. |
Stock Repurchases | Dividends | Total | |||||||
Shares | Amount | Per Share | Amount | Amount | |||||
Q4 fiscal 2016 | 3.6 | $225 | $0.53 | $782 | $1,007 | ||||
Fiscal 2016 | 73.8 | $3,922 | $2.02 | $2,990 | $6,912 |
Q1 FY16 Results | Current Guidance Q1 FY17 Estimates | |||||
Revenues | $5.8B | $5.7B - $6.5B | ||||
Year-over-year change | decrease 1% - increase 13% | |||||
GAAP diluted earnings per share (EPS) | $0.99 | $0.91 - $1.01 | ||||
Year-over-year change | decrease 8% - increase 2% | |||||
Less diluted EPS attributable to QSI | $0.15 | $0.01 | ||||
Less diluted EPS attributable to share-based compensation | ($0.12) | ($0.13 | ) | |||
Less diluted EPS attributable to other items (1) | ($0.01) | ($0.09 | ) | |||
Non-GAAP diluted EPS | $0.97 | $1.12 - $1.22 | ||||
Year-over-year change | increase 15% - 26% | |||||
Metrics | ||||||
MSM chip shipments | 242M | 205M - 225M | ||||
Year-over-year change | decrease 7% - 15% | |||||
Total reported device sales* | approx. $60.6B | approx. $58.0B - $66.0B | (2) | |||
Year-over-year change | decrease 4% - increase 9% | |||||
*Est. sales in September quarter, reported in December quarter |
(1) | Our guidance for diluted EPS attributable to other items for the first quarter of fiscal 2017 is attributable to acquisition-related items. |
(2) | Our guidance range for the first quarter of fiscal 2017 total reported device sales reflects estimated 3G/4G total reported device sales that we currently expect to be reported to us, which includes an estimate of some prior period activity (i.e., devices shipped in prior periods) that may be reported to us. |
GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (a) (b) | Non-GAAP Results | ||||||||||||
Q4 FISCAL 2016 | ||||||||||||||||
Revenues | $6,184 | $14 | $— | $— | $6,170 | |||||||||||
Operating income (loss) | 1,804 | (1) | (213) | (158) | 2,176 | |||||||||||
EBT | 1,960 | (14) | (213) | (158) | 2,345 | |||||||||||
EBT as % of revenues | 32 | % | 38 | % | ||||||||||||
Net income (loss) | 1,599 | (9) | (150) | (147) | 1,905 | |||||||||||
Diluted EPS | $1.07 | ($0.01) | ($0.10) | ($0.10) | $1.28 | |||||||||||
Diluted shares | 1,491 | 1,491 | 1,491 | 1,491 | 1,491 | |||||||||||
Q3 FISCAL 2016 | ||||||||||||||||
Revenues | $6,044 | $12 | $— | $— | $6,032 | |||||||||||
Operating income (loss) | 1,592 | (2) | (235) | (203) | 2,032 | |||||||||||
EBT | 1,693 | (5) | (235) | (203) | 2,136 | |||||||||||
EBT as % of revenues | 28 | % | 35 | % | ||||||||||||
Net income (loss) | 1,444 | (4) | (197) | (84) | 1,729 | |||||||||||
Diluted EPS | $0.97 | $0.00 | ($0.13) | ($0.06) | $1.16 | |||||||||||
Diluted shares | 1,486 | 1,486 | 1,486 | 1,486 | 1,486 | |||||||||||
Q4 FISCAL 2015 | ||||||||||||||||
Revenues | $5,456 | $4 | $— | $— | $5,452 | |||||||||||
Operating income (loss) | 1,140 | (8) | (233) | (236) | 1,617 | |||||||||||
EBT | 1,252 | 8 | (233) | (236) | 1,713 | |||||||||||
EBT as % of revenues | 23 | % | 31 | % | ||||||||||||
Net income (loss) | 1,061 | 8 | (188) | (186) | 1,427 | |||||||||||
Diluted EPS | $0.67 | $0.01 | ($0.12) | ($0.12) | $0.91 | |||||||||||
Diluted shares | 1,573 | 1,573 | 1,573 | 1,573 | 1,573 | |||||||||||
FISCAL 2016 | ||||||||||||||||
Revenues | $23,554 | $47 | $— | $— | $23,507 | |||||||||||
Operating income (loss) | 6,495 | 372 | (943) | (768) | 7,834 | |||||||||||
EBT | 6,833 | 386 | (943) | (768) | 8,158 | |||||||||||
EBT as % of revenues | 29 | % | 35 | % | ||||||||||||
Net income (loss) | 5,705 | 252 | (753) | (447) | 6,653 | |||||||||||
Diluted EPS | $3.81 | $0.17 | ($0.50) | ($0.30) | $4.44 | |||||||||||
Diluted shares | 1,498 | 1,498 | 1,498 | 1,498 | 1,498 | |||||||||||
FISCAL 2015 | ||||||||||||||||
Revenues | $25,281 | $4 | $— | $— | $25,277 | |||||||||||
Operating income (loss) | 5,776 | (40 | ) | (1,026 | ) | (1,723 | ) | 8,565 | ||||||||
EBT | 6,487 | (74 | ) | (1,026 | ) | (1,723 | ) | 9,310 | ||||||||
EBT as % of revenues | 26 | % | 37 | % | ||||||||||||
Net income (loss) | 5,271 | (44 | ) | (836 | ) | (1,490 | ) | 7,641 | ||||||||
Diluted EPS | $3.22 | ($0.03) | ($0.51) | ($0.91) | $4.66 | |||||||||||
Diluted shares | 1,639 | 1,639 | 1,639 | 1,639 | 1,639 |
(a) | At fiscal year end, the quarterly tax provision (benefit) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and this difference is included in the tax provision (benefit) in the “Other Items” column. See the “Reconciliations of GAAP Tax Rates to Non-GAAP Tax Rates” herein for further details. |
(b) | Details of amounts included in the “Other Items” column for the current period are included in the “Supplemental Information and Reconciliations” and the “Reconciliations of GAAP Tax Rates to Non-GAAP Tax Rates.” Details of amounts included in the “Other Items” column for prior periods are included in the news releases for those periods. |
Q4 FISCAL 2016 | ||||||||||||||||||||
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (a) | Non-GAAP Results | |||||||||||||||
Cost of revenues | $2,539 | $11 | $9 | $89 | $2,430 | |||||||||||||||
Research and development expenses | 1,229 | — | 136 | 4 | 1,089 | |||||||||||||||
Selling, general and administrative expenses | 568 | 4 | 68 | 21 | 475 | |||||||||||||||
Other expenses | 44 | — | — | 44 | — | |||||||||||||||
Interest expense | 76 | — | — | — | 76 | |||||||||||||||
Investment income (loss), net | 232 | (13) | (b) | — | — | 245 | (c) |
(a) | Other items excluded from Non-GAAP EBT included $112 million of acquisition-related charges, $44 million of restructuring and restructuring-related charges related to our Strategic Realignment Plan and $2 million of impairment and other charges. |
(b) | Included $31 million in other-than-temporary losses on investments and $6 million in equity in losses of investees, partially offset by $21 million in net realized gains on investments and $3 million in other net investment income. |
(c) | Included $156 million in interest and dividend income and $124 million in net realized gains on investments, partially offset by $29 million in equity in losses of investees and $6 million in other net investment expense. |
FISCAL 2016 | ||||||||||||||||||||
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (d) | Non-GAAP Results | |||||||||||||||
Cost of revenues | $9,749 | $35 | $40 | $455 | $9,219 | |||||||||||||||
Research and development expenses | 5,151 | 4 | 614 | 31 | 4,502 | |||||||||||||||
Selling, general and administrative expenses | 2,385 | 16 | 289 | 128 | 1,952 | |||||||||||||||
Other (income) expenses | (226) | (380) | — | 154 | — | |||||||||||||||
Interest expense | 297 | — | — | — | 297 | |||||||||||||||
Investment income, net | 635 | 14 | (e) | — | — | 621 | (f) |
(d) | Other items excluded from Non-GAAP EBT included $543 million of acquisition-related charges; $202 million of restructuring and restructuring-related charges, partially offset by a $48 million gain on the sale of our business that provided augmented reality applications, all of which related to our Strategic Realignment Plan; $56 million of asset impairment charges; and $15 million of other severance costs. |
(e) | Included $107 million in net realized gains on investments and $12 million in other net investment income, partially offset by $60 million in other-than-temporary losses on investments and $45 million in equity in losses of investees. |
(f) | Included $595 million in interest and dividend income and $181 million in net realized gains on investments, partially offset by $112 million in other-than-temporary losses on investments, $39 million in equity in losses of investees and $4 million in other net investment expense. |
GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (c) (d) | Non-GAAP Results | |||||||||||||||||||||||||||
Q4 FISCAL 2016 ($ in millions) | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 1,960 | $ | (14 | ) | $ | (213 | ) | $ | (158 | ) | $ | 2,345 | ||||||||||||||||||
Income tax (expense) benefit | (361 | ) | 5 | 63 | 11 | (440 | ) | ||||||||||||||||||||||||
Net income (loss) (a) | $ | 1,599 | $ | (9 | ) | $ | (150 | ) | $ | (147 | ) | $ | 1,905 | ||||||||||||||||||
Tax rate | 18 | % | 0 | % | (b) | (1 | %) | (b) | 0 | % | (b) | 19 | % | ||||||||||||||||||
FISCAL 2016 ($ in millions) | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 6,833 | $ | 386 | $ | (943 | ) | $ | (768 | ) | $ | 8,158 | |||||||||||||||||||
Income tax (expense) benefit | (1,131 | ) | (137 | ) | 190 | 321 | (1,505 | ) | |||||||||||||||||||||||
Net income (loss) (a) | $ | 5,702 | $ | 249 | $ | (753 | ) | $ | (447 | ) | $ | 6,653 | |||||||||||||||||||
Tax rate | 17 | % | 1 | % | (b) | 0 | % | (b) | (2 | %) | (b) | 18 | % |
(a) | Before adjustments for noncontrolling interests. |
(b) | The incremental effect of our adjustments to the Non-GAAP tax rate is calculated by allocating the difference between (i) the tax expense (benefit) calculated based on the GAAP tax rate and (ii) the actual or estimated tax expense (benefit) for each column. |
(c) | In the fourth quarter of fiscal 2016, the tax benefit in the “Other Items” column included a $22 million tax benefit for the combined tax effect of other items in EBT and a $7 million tax benefit for the tax effect of acquisition-related items in EBT, partially offset by a $18 million tax expense to reconcile the tax provision for each column to the total GAAP tax provision for the quarter. |
(d) | In fiscal 2016, the tax benefit in the “Other Items” column included tax benefits of $101 million for a worthless stock deduction, $79 million related to fiscal 2015 as a result of the retroactive reinstatement of the federal R&D tax credit, $71 million for the tax effect of acquisition-related items in EBT and $70 million for the combined tax effect of other items in EBT. |
• | QSI is excluded because the Company expects to exit its strategic investments in the foreseeable future, 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. Management believes that excluding non-cash share-based compensation from the Non-GAAP financial information allows management and investors to make additional comparisons of the operating activities of the Company’s ongoing core businesses over time and with respect to other companies. |
• | Certain other items are excluded because management views such expenses as unrelated to the operating activities of the Company’s ongoing core businesses, as follows: |
• | Acquisition-related items include amortization 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 |
• | The Company excludes certain other items that management views as unrelated to the Company’s ongoing business, such as major restructuring and restructuring-related costs, goodwill and indefinite- and long-lived asset impairments and litigation settlements and/or damages. |
• | Certain tax items that are unrelated to the fiscal year in which they are recorded are excluded in order to provide a clearer understanding of the Company’s ongoing Non-GAAP tax rate and after tax earnings. |
September 25, 2016 | September 27, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 5,946 | $ | 7,560 | |||
Marketable securities | 12,702 | 9,761 | |||||
Accounts receivable, net | 2,219 | 1,964 | |||||
Inventories | 1,556 | 1,492 | |||||
Deferred tax assets | — | 635 | |||||
Other current assets | 558 | 687 | |||||
Total current assets | 22,981 | 22,099 | |||||
Marketable securities | 13,702 | 13,626 | |||||
Deferred tax assets | 2,030 | 1,453 | |||||
Property, plant and equipment, net | 2,306 | 2,534 | |||||
Goodwill | 5,679 | 5,479 | |||||
Other intangible assets, net | 3,500 | 3,742 | |||||
Other assets | 2,161 | 1,863 | |||||
Total assets | $ | 52,359 | $ | 50,796 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 1,858 | $ | 1,300 | |||
Payroll and other benefits related liabilities | 934 | 861 | |||||
Unearned revenues | 509 | 583 | |||||
Short-term debt | 1,749 | 1,000 | |||||
Other current liabilities | 2,261 | 2,356 | |||||
Total current liabilities | 7,311 | 6,100 | |||||
Unearned revenues | 2,377 | 2,496 | |||||
Long-term debt | 10,008 | 9,969 | |||||
Other liabilities | 895 | 817 | |||||
Total liabilities | 20,591 | 19,382 | |||||
Stockholders’ equity: | |||||||
Qualcomm stockholders’ equity: | |||||||
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding | — | — | |||||
Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,476 and 1,524 shares issued and outstanding, respectively | 414 | — | |||||
Retained earnings | 30,936 | 31,226 | |||||
Accumulated other comprehensive income | 428 | 195 | |||||
Total Qualcomm stockholders’ equity | 31,778 | 31,421 | |||||
Noncontrolling interests | (10 | ) | (7 | ) | |||
Total stockholders’ equity | 31,768 | 31,414 | |||||
Total liabilities and stockholders’ equity | $ | 52,359 | $ | 50,796 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | ||||||||||||
Revenues: | |||||||||||||||
Equipment and services | $ | 4,156 | $ | 3,619 | $ | 15,467 | $ | 17,079 | |||||||
Licensing | 2,028 | 1,837 | 8,087 | 8,202 | |||||||||||
Total revenues | 6,184 | 5,456 | 23,554 | 25,281 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of revenues | 2,539 | 2,252 | 9,749 | 10,378 | |||||||||||
Research and development | 1,229 | 1,357 | 5,151 | 5,490 | |||||||||||
Selling, general and administrative | 568 | 595 | 2,385 | 2,344 | |||||||||||
Other | 44 | 112 | (226 | ) | 1,293 | ||||||||||
Total costs and expenses | 4,380 | 4,316 | 17,059 | 19,505 | |||||||||||
Operating income | 1,804 | 1,140 | 6,495 | 5,776 | |||||||||||
Interest expense | (76 | ) | (70 | ) | (297 | ) | (104 | ) | |||||||
Investment income, net | 232 | 182 | 635 | 815 | |||||||||||
Income before income taxes | 1,960 | 1,252 | 6,833 | 6,487 | |||||||||||
Income tax expense | (361 | ) | (192 | ) | (1,131 | ) | (1,219 | ) | |||||||
Net income | 1,599 | 1,060 | 5,702 | 5,268 | |||||||||||
Net loss attributable to noncontrolling interests | — | 1 | 3 | 3 | |||||||||||
Net income attributable to Qualcomm | $ | 1,599 | $ | 1,061 | $ | 5,705 | $ | 5,271 | |||||||
Basic earnings per share attributable to Qualcomm | $ | 1.08 | $ | 0.68 | $ | 3.84 | $ | 3.26 | |||||||
Diluted earnings per share attributable to Qualcomm | $ | 1.07 | $ | 0.67 | $ | 3.81 | $ | 3.22 | |||||||
Shares used in per share calculations: | |||||||||||||||
Basic | 1,476 | 1,557 | 1,484 | 1,618 | |||||||||||
Diluted | 1,491 | 1,573 | 1,498 | 1,639 | |||||||||||
Dividends per share announced | $ | 0.53 | $ | 0.48 | $ | 2.02 | $ | 1.80 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | ||||||||||||
Operating Activities: | |||||||||||||||
Net income | $ | 1,599 | $ | 1,060 | $ | 5,702 | $ | 5,268 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization expense | 336 | 326 | 1,428 | 1,214 | |||||||||||
Indefinite and long-lived asset impairment charges | 13 | 13 | 107 | 317 | |||||||||||
Income tax provision in excess of (less than) income tax payments | 36 | (112 | ) | (200 | ) | 47 | |||||||||
Gain on sale of wireless spectrum | — | — | (380 | ) | — | ||||||||||
Non-cash portion of share-based compensation expense | 213 | 233 | 943 | 1,026 | |||||||||||
Incremental tax benefits from share-based compensation | (5 | ) | (5 | ) | (8 | ) | (103 | ) | |||||||
Net realized gains on marketable securities and other investments | (145 | ) | (101 | ) | (288 | ) | (500 | ) | |||||||
Impairment losses on marketable securities and other investments | 35 | 39 | 172 | 200 | |||||||||||
Other items, net | 75 | 14 | 77 | (16 | ) | ||||||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable, net | (271 | ) | 112 | (232 | ) | 550 | |||||||||
Inventories | (218 | ) | 215 | (49 | ) | 93 | |||||||||
Other assets | 93 | 104 | 246 | (793 | ) | ||||||||||
Trade accounts payable | 278 | (139 | ) | 541 | (908 | ) | |||||||||
Payroll, benefits and other liabilities | 82 | 78 | (352 | ) | (328 | ) | |||||||||
Unearned revenues | (37 | ) | (153 | ) | (307 | ) | (561 | ) | |||||||
Net cash provided by operating activities | 2,084 | 1,684 | 7,400 | 5,506 | |||||||||||
Investing Activities: | |||||||||||||||
Capital expenditures | (150 | ) | (179 | ) | (539 | ) | (994 | ) | |||||||
Purchases of available-for-sale securities | (5,055 | ) | (2,282 | ) | (18,015 | ) | (15,400 | ) | |||||||
Proceeds from sales and maturities of available-for-sale securities | 4,083 | 3,183 | 14,386 | 15,080 | |||||||||||
Purchases of trading securities | — | (126 | ) | (177 | ) | (1,160 | ) | ||||||||
Proceeds from sales and maturities of trading securities | — | 650 | 779 | 1,658 | |||||||||||
Proceeds from sales of other marketable securities | — | — | 450 | — | |||||||||||
Acquisitions and other investments, net of cash acquired | (149 | ) | (2,694 | ) | (812 | ) | (3,019 | ) | |||||||
Proceeds from sale of wireless spectrum | — | — | 232 | — | |||||||||||
Proceeds from sales of property, plant and equipment | 1 | 105 | 16 | 266 | |||||||||||
Other items, net | 11 | (9 | ) | 192 | (3 | ) | |||||||||
Net cash used by investing activities | (1,259 | ) | (1,352 | ) | (3,488 | ) | (3,572 | ) | |||||||
Financing Activities: | |||||||||||||||
Proceeds from short-term debt | 2,316 | 1,270 | 8,949 | 4,083 | |||||||||||
Repayment of short-term debt | (2,315 | ) | (1,269 | ) | (8,200 | ) | (3,083 | ) | |||||||
Proceeds from long-term debt | — | — | — | 9,937 | |||||||||||
Proceeds from issuance of common stock | 246 | 216 | 668 | 787 | |||||||||||
Repurchases and retirements of common stock | (225 | ) | (2,230 | ) | (3,923 | ) | (11,246 | ) | |||||||
Dividends paid | (782 | ) | (738 | ) | (2,990 | ) | (2,880 | ) | |||||||
Incremental tax benefits from share-based compensation | 5 | 5 | 8 | 103 | |||||||||||
Other items, net | (2 | ) | (3 | ) | (34 | ) | 38 | ||||||||
Net cash used by financing activities | (757 | ) | (2,749 | ) | (5,522 | ) | (2,261 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (7 | ) | (10 | ) | (4 | ) | (20 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 61 | (2,427 | ) | (1,614 | ) | (347 | ) | ||||||||
Cash and cash equivalents at beginning of period | 5,885 | 9,987 | 7,560 | 7,907 | |||||||||||
Cash and cash equivalents at end of period | $ | 5,946 | $ | 7,560 | $ | 5,946 | $ | 7,560 |