Q4 Fiscal 2018 | Q4 Fiscal 2017 | Year-Over-Year Change | Q3 Fiscal 2018 | Sequential Change | |||||
Revenues | $5.8B | $5.9B | (2%) | $5.6B | +4% | ||||
Operating (loss) income | ($0.7B) | $0.3B | N/M | $0.9B | N/M | ||||
Net (loss) income 1 | ($0.5B) | $0.2B | N/M | $1.2B | N/M | ||||
Diluted (loss) earnings per share 1 | ($0.35) | $0.11 | N/M | $0.82 | N/M | ||||
Operating cash flow 2 | ($0.4B) | $2.4B | N/M | $2.1B | N/M |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 2 of 17 |
Fiscal 2018 | Fiscal 2017 | Year-Over-Year Change | |||
Revenues | $22.7B | $22.3B | +2% | ||
Operating income | $0.7B | $2.6B | (72%) | ||
Net (loss) income | ($4.9B) | $2.5B | N/M | ||
Diluted (loss) earnings per share | ($3.32) | $1.65 | N/M | ||
Operating cash flow | $3.9B | $5.0B | (22%) |
Q4 Fiscal 2018 | Q4 Fiscal 2017 | Year-Over-Year Change | Q3 Fiscal 2018 | Sequential Change | |||||
Revenues | $5.8B | $6.0B | (2%) | $5.6B | +4% | ||||
Operating income | $1.3B | $1.6B | (19%) | $1.4B | (10%) | ||||
Net income | $1.3B | $1.4B | (7%) | $1.5B | (15%) | ||||
Diluted earnings per share | $0.90 | $0.92 | (2%) | $1.01 | (11%) |
Fiscal 2018 | Fiscal 2017 | Year-Over-Year Change | |||
Revenues | $22.7B | $23.2B | (2%) | ||
Operating income | $5.6B | $7.1B | (21%) | ||
Net income | $5.4B | $6.4B | (15%) | ||
Diluted earnings per share | $3.69 | $4.28 | (14%) |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 3 of 17 |
• | Fiscal 2018 GAAP results included: |
◦ | $6.0 billion charge, or ($4.03) per share, related to the enactment of the Tax Cuts and Jobs Act (the Tax Legislation) in the United States in the first quarter of fiscal 2018. |
◦ | $2.0 billion charge, or ($1.41) per share, related to a termination fee paid to NXP Semiconductors N.V. (NXP) in the fourth quarter of fiscal 2018 resulting from the termination of the purchase agreement. |
◦ | $1.2 billion charge, or ($0.76) per share, for the fine imposed by the European Commission (EC) in the first quarter of fiscal 2018. We provided financial guarantees to satisfy the obligation in lieu of cash payment while we appeal the EC’s decision. |
◦ | $687 million of restructuring and restructuring-related charges, or ($0.37) per share, related to our Cost Plan that was announced in the second quarter of fiscal 2018. |
◦ | $676 million gain, or $0.48 per share, related to the settlement of the Taiwan Fair Trade Commission (TFTC) investigation in the fourth quarter of fiscal 2018. |
• | Fiscal 2018 GAAP and Non-GAAP results included: |
◦ | $600 million of revenues, or $0.31 per share for GAAP and $0.30 per share for Non-GAAP (based on diluted shares of 1,463 million and 1,475 million, respectively), resulting from an interim agreement with the other licensee in dispute for royalties due after the second quarter of fiscal 2017, while negotiations continue. |
• | Fiscal 2017 GAAP results included: |
◦ | $868 million charge, or ($0.49) per share, for the fine imposed by the Korea Fair Trade Commission (KFTC) in the first quarter of fiscal 2017 (additional impact of $59 million of related foreign exchange losses, resulting in a total charge of $927 million in fiscal 2017). |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 4 of 17 |
◦ | $974 million reduction to revenues, or ($0.48) per share, related to the BlackBerry arbitration decision in the second quarter of fiscal 2017 (subsequent downward adjustment of $34 million to reflect the final award amount, resulting in a total reduction to revenues of $940 million in fiscal 2017). |
◦ | $778 million charge, or ($0.52) per share, for the fine imposed by the TFTC, which was accrued in the fourth quarter of fiscal 2017. |
(in millions, except percentages) | Q4 Fiscal 2018 | Q4 Fiscal 2017 | Year-Over-Year Change | Q3 Fiscal 2018 | Sequential Change | ||||
QCT | |||||||||
Revenues | $4,647 | $4,650 | —% | $4,087 | +14% | ||||
EBT 1 | $796 | $973 | (18%) | $607 | +31% | ||||
EBT as % of revenues | 17% | 21% | (4%) | 15% | +2% | ||||
MSMTM chip shipments | 232 | 220 | +5% | 199 | +17% | ||||
QTL | |||||||||
Revenues | $1,138 | $1,213 | (6%) | $1,465 | (22%) | ||||
EBT | $739 | $829 | (11%) | $1,049 | (30%) | ||||
EBT as % of revenues | 65% | 68% | (3%) | 72% | (7%) |
(in millions, except percentages) | Fiscal 2018 | Fiscal 2017 | Year-Over-Year Change | ||
QCT | |||||
Revenues | $17,282 | $16,479 | +5% | ||
EBT | $2,966 | $2,747 | +8% | ||
EBT as % of revenues | 17% | 17% | —% | ||
MSMTM chip shipments | 855 | 804 | +6% | ||
QTL | |||||
Revenues | $5,163 | $6,445 | (20%) | ||
EBT | $3,525 | $5,175 | (32%) | ||
EBT as % of revenues | 68% | 80% | (12%) |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 5 of 17 |
Stock Repurchases | Dividends | Total | |||||||
Shares (1) | Amount | Per Share | Amount | Amount | |||||
Q4 fiscal 2018 | 254.6 | $21,144 | $0.62 | $866 | $22,010 | ||||
Fiscal 2018 | 278.8 | $22,569 | $2.38 | $3,466 | $26,035 |
(1) | The fourth quarter and fiscal 2018 shares repurchased included an initial delivery of 178.4 million shares delivered and retired in September 2018 upon the initiation of three accelerated share repurchase (ASR) agreements and 76.2 million shares repurchased in August 2018 upon the completion of a tender offer. |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 6 of 17 |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 7 of 17 |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 8 of 17 |
Q1 FY18 Results (1) | Current Guidance Q1 FY19 Estimates (2)(3)(4) | ||||||
Revenues | $6.1B | $4.5B - $5.3B | |||||
Year-over-year change | decrease 13% - 26% | ||||||
GAAP diluted earnings (loss) per share (EPS) | ($4.03) | $0.78 - $0.88 | |||||
Year-over-year change | N/M | ||||||
Less diluted EPS attributable to QSI | $0.01 | ($0.02 | ) | ||||
Less diluted EPS attributable to share-based compensation | ($0.13) | ($0.16 | ) | ||||
Less diluted EPS attributable to other items | ($4.89) | ($0.09 | ) | ||||
Non-GAAP diluted EPS | $0.98 | $1.05 - $1.15 | |||||
Year-over-year change | increase 7% - 17% | ||||||
Other Information | |||||||
MSM chip shipments | 237 | M | 175M - 195M | ||||
Year-over-year change | decrease 18% - 26% | ||||||
QTL revenues | $1.3B | $1.0B - $1.1B | |||||
Year-over-year change | decrease 15% - 23% |
(1) | The first quarter of fiscal 2018 results excluded QTL revenues for royalties due on sales of Apple’s products by Apple’s contract manufacturers, as well as sales of products by the other licensee in dispute. Diluted EPS attributable to other items for the first quarter of fiscal 2018 was primarily attributable to a $6.0 billion charge resulting from the Tax Legislation, a $1.2 billion charge related to the fine imposed by the EC and acquisition-related items. |
(2) | Our financial guidance for the first quarter of fiscal 2019 excludes QTL revenues for royalties due on sales of Apple’s products by Apple’s contract manufacturers, as well as sales of products by the other licensee in dispute, as we expect the actions taken by these licensees will continue until the respective disputes are resolved. |
(3) | Our guidance for diluted EPS attributable to other items for the first quarter of fiscal 2019 is primarily attributable to acquisition-related items and restructuring and restructuring-related items. |
(4) | As a result of the Tax Legislation, we made certain tax elections in the first quarter of fiscal 2019, which will result in an estimated income tax benefit of $525 million to $575 million, which is included in our first quarter of fiscal 2019 guidance for GAAP and Non-GAAP diluted EPS. |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 9 of 17 |
GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (a) (b) | Non-GAAP Results | ||||||||||
Q4 FISCAL 2018 | ||||||||||||||
Revenues | $5,803 | $20 | $— | ($50) | (c) | $5,833 | ||||||||
Operating (loss) income | (654) | 2 | (224) | (1,712) | 1,280 | |||||||||
EBT | (775) | (20) | (224) | (1,800) | 1,269 | |||||||||
EBT as % of revenues | N/M | 22 | % | |||||||||||
Net (loss) income | (493) | (11) | (195) | (1,567) | 1,280 | |||||||||
Diluted EPS (d) | ($0.35) | ($0.01) | ($0.14) | ($1.10) | $0.90 | |||||||||
Diluted shares (d) | 1,417 | 1,429 | 1,429 | 1,429 | 1,429 | |||||||||
Q3 FISCAL 2018 | ||||||||||||||
Revenues | $5,599 | $20 | $— | ($50) | $5,629 | |||||||||
Operating income (loss) | 925 | 2 | (189) | (312) | 1,424 | |||||||||
EBT | 956 | (7) | (189) | (264) | 1,416 | |||||||||
EBT as % of revenues | 17 | % | 25 | % | ||||||||||
Net income (loss) | 1,219 | (5) | (155) | (129) | 1,508 | |||||||||
Diluted EPS | $0.82 | $0.00 | ($0.10) | ($0.09) | $1.01 | |||||||||
Diluted shares | 1,487 | 1,487 | 1,487 | 1,487 | 1,487 | |||||||||
Q4 FISCAL 2017 | ||||||||||||||
Revenues | $5,905 | $43 | $— | ($95) | $5,957 | |||||||||
Operating income (loss) | 333 | 22 | (204) | (1,063) | 1,578 | |||||||||
EBT | 434 | 28 | (204) | (1,065) | 1,675 | |||||||||
EBT as % of revenues | 7 | % | 28 | % | ||||||||||
Net income (loss) | 168 | 25 | (153) | (1,079) | 1,375 | |||||||||
Diluted EPS | $0.11 | $0.02 | ($0.10) | ($0.73) | $0.92 | |||||||||
Diluted shares | 1,488 | 1,488 | 1,488 | 1,488 | 1,488 | |||||||||
FISCAL 2018 | ||||||||||||||
Revenues | $22,732 | $100 | $— | ($100) | (c) | $22,732 | ||||||||
Operating income (loss) | 742 | 23 | (883) | (4,018) | 5,620 | |||||||||
EBT | 513 | 24 | (883) | (4,132) | 5,504 | |||||||||
EBT as % of revenues | 2 | % | 24 | % | ||||||||||
Net (loss) income | (4,864) | 22 | (743) | (9,586) | 5,443 | |||||||||
Diluted EPS (d) | ($3.32) | $0.01 | ($0.50) | ($6.53) | $3.69 | |||||||||
Diluted shares (d) | 1,463 | 1,475 | 1,475 | 1,475 | 1,475 | |||||||||
FISCAL 2017 | ||||||||||||||
Revenues | $22,291 | $113 | $— | ($1,057) | $23,235 | |||||||||
Operating income (loss) | 2,614 | 38 | (914) | (3,604) | 7,094 | |||||||||
EBT | 3,020 | 65 | (914) | (3,641) | 7,510 | |||||||||
EBT as % of revenues | 14 | % | 32 | % | ||||||||||
Net income (loss) | 2,466 | 46 | (753) | (3,213) | 6,386 | |||||||||
Diluted EPS | $1.65 | $0.03 | ($0.51) | ($2.16) | $4.28 | |||||||||
Diluted shares | 1,490 | 1,490 | 1,490 | 1,490 | 1,490 |
(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) | Further 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” sections herein. Details of amounts included in the “Other Items” column for prior periods are included in the news releases for those periods. |
(c) | In the fourth quarter and fiscal 2018, other items excluded from Non-GAAP revenues consisted of reductions to licensing revenues related to a portion of a business arrangement that resolved a legal dispute. |
(d) | As a result of the net loss in our GAAP results in the fourth quarter and fiscal 2018, all of the common share equivalents issuable under share-based compensation plans had an anti-dilutive effect and were therefore excluded from the computation of GAAP diluted loss per share. The diluted EPS impacts of a $5.7 billion charge resulting from the Tax Legislation recorded in fiscal 2018 was calculated using the GAAP diluted shares. Amounts in all other columns included the common share equivalents issuable under share-based compensation plans in the calculation of diluted earnings per share because the Company reported Non-GAAP net income. |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 10 of 17 |
Q4 FISCAL 2018 | |||||||||||||||||||
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (a) | Non-GAAP Results | ||||||||||||||
Cost of revenues | $2,850 | $15 | $8 | $114 | $2,713 | ||||||||||||||
Research and development (R&D) expenses | 1,388 | — | 146 | 1 | 1,241 | ||||||||||||||
Selling, general and administrative (SG&A) expenses | 689 | 3 | 70 | 17 | 599 | ||||||||||||||
Other expenses | 1,530 | — | — | 1,530 | — | ||||||||||||||
Interest expense | 207 | — | — | 36 | 171 | ||||||||||||||
Investment and other income (loss), net | 86 | (22) | — | (52) | 160 | (b) |
(a) | Other items excluded from Non-GAAP results included a $2.0 billion charge related to the NXP termination fee, $265 million of restructuring and restructuring-related charges related to our Cost Plan, $162 million of acquisition-related charges and $6 million of interest expense related to the EC fine, partially offset by a $676 million gain related to the TFTC settlement and $7 million of foreign currency transaction gains related to the EC and TFTC fines, net of associated losses on derivative instruments. |
(b) | Included $155 million in interest and dividend income, $10 million in net foreign currency gains and $8 million in net realized gains on investments, partially offset by $12 million in equity in net losses of investees and $1 million of net losses on derivative instruments. |
FISCAL 2018 | |||||||||||||||||||
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (c) | Non-GAAP Results | ||||||||||||||
Cost of revenues | $10,244 | $65 | $38 | $449 | $9,692 | ||||||||||||||
Research and development (R&D) expenses | 5,625 | — | 594 | 7 | 5,024 | ||||||||||||||
Selling, general and administrative (SG&A) expenses | 2,986 | 12 | 251 | 327 | 2,396 | ||||||||||||||
Other expenses | 3,135 | — | — | 3,135 | — | ||||||||||||||
Interest expense | 768 | — | — | 64 | 704 | ||||||||||||||
Investment and other income (loss), net | 539 | 1 | — | (50) | 588 | (d) |
(c) | Other items excluded from Non-GAAP results included a $2.0 billion charge related to a termination fee paid to NXP, a $1.2 billion charge related to the fine imposed by the EC, $836 million of acquisition-related charges, $687 million of restructuring and restructuring-related charges related to our Cost Plan and $10 million of interest expense related to the EC fine, partially offset by a $676 million gain related to the TFTC settlement and $8 million of foreign currency transaction gains related to the EC and TFTC fines, net of associated losses on derivative instruments. |
(d) | Included $602 million in interest and dividend income, $31 million in net realized gains on investments and $4 million in net foreign currency gains, partially offset by $49 million in equity in net losses of investees. |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 11 of 17 |
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (b) (c) | Non-GAAP Results | ||||||||||||||||||||||||||
Q4 FISCAL 2018 | |||||||||||||||||||||||||||||||
(Loss) income before income taxes | $ | (775 | ) | $ | (20 | ) | $ | (224 | ) | $ | (1,800 | ) | $ | 1,269 | |||||||||||||||||
Income tax benefit | 282 | 9 | 29 | 233 | 11 | ||||||||||||||||||||||||||
Net (loss) income | $ | (493 | ) | $ | (11 | ) | $ | (195 | ) | $ | (1,567 | ) | $ | 1,280 | |||||||||||||||||
Tax rate | 36 | % | 0 | % | (a) | 4 | % | (a) | 33 | % | (a) | (1 | %) | ||||||||||||||||||
FISCAL 2018 | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 513 | $ | 24 | $ | (883 | ) | $ | (4,132 | ) | $ | 5,504 | |||||||||||||||||||
Income tax (expense) benefit | (5,377 | ) | (2 | ) | 140 | (5,454 | ) | (61 | ) | ||||||||||||||||||||||
Net (loss) income | $ | (4,864 | ) | $ | 22 | $ | (743 | ) | $ | (9,586 | ) | $ | 5,443 | ||||||||||||||||||
Tax rate | 1,048 | % | 0 | % | (a) | (7 | %) | (a) | 1,054 | % | (a) | 1 | % |
(a) | 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. |
(b) | In the fourth quarter of fiscal 2018, the tax benefit in the “Other Items” column included a benefit of $80 million for the combined effect of other items in EBT, a $66 million benefit to reconcile the tax provision for each column to the total GAAP tax provision for the quarter, a $64 million net benefit related to the refinement of estimates related to the combined effect of the Toll Charge, the remeasurement of deferred tax assets and liabilities and our decision to no longer indefinitely reinvest certain foreign earnings, all of which relate to the Tax Legislation, and a $37 million tax benefit for the tax effect of acquisition-related items in EBT, partially offset by tax expense of $14 million related to the revaluation of deferred tax assets that existed at the end of fiscal 2017 due to a new tax incentive agreement in Singapore. |
(c) | In fiscal 2018, the estimated annual effective tax rate for the “Other Items” column included a $5.8 billion charge related to the combined effect of the Toll Charge, the remeasurement of deferred tax assets and liabilities and our decision to no longer indefinitely reinvest certain foreign earnings, all of which relate to the Tax Legislation, and an $8 million increase in unrecognized tax benefits, partially offset by tax benefits of $147 million for the tax effect of acquisition-related items in EBT, $165 million for the combined effect of other items in EBT and $2 million from a new tax incentive agreement in Singapore. |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 12 of 17 |
• | 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 items as unrelated to the operating activities of the Company’s ongoing core businesses, as follows: |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 13 of 17 |
• | 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, as well as any 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, third-party acquisition and integration services costs and costs related to temporary debt facilities and letters of credit executed prior to the close of an acquisition. Starting with acquisitions in the second quarter of fiscal 2017, the Company excludes recognition of the step-up of property, plant and equipment from the net book value based on the original cost basis to fair value. Such charges related to acquisitions that were completed prior to the second quarter of fiscal 2017 continue to be allocated to the segments, and such amounts are not material. |
• | 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 awards, settlements and/or damages arising from legal or regulatory matters. |
• | 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. In fiscal 2018, the Company excluded the full impact of the Toll Charge, including the portion that relates to earnings and profits of U.S.-owned foreign subsidiaries generated in the first quarter of fiscal 2018. |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 14 of 17 |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 15 of 17 |
September 30, 2018 | September 24, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 11,777 | $ | 35,029 | |||
Marketable securities | 311 | 2,279 | |||||
Accounts receivable, net | 2,904 | 3,632 | |||||
Inventories | 1,693 | 2,035 | |||||
Other current assets | 699 | 618 | |||||
Total current assets | 17,384 | 43,593 | |||||
Marketable securities | 35 | 1,270 | |||||
Deferred tax assets | 904 | 2,900 | |||||
Property, plant and equipment, net | 2,975 | 3,216 | |||||
Goodwill | 6,498 | 6,623 | |||||
Other intangible assets, net | 2,955 | 3,737 | |||||
Other assets | 1,935 | 4,147 | |||||
Total assets | $ | 32,686 | $ | 65,486 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 1,825 | $ | 1,971 | |||
Payroll and other benefits related liabilities | 1,081 | 1,183 | |||||
Unearned revenues | 500 | 502 | |||||
Short-term debt | 1,005 | 2,495 | |||||
Other current liabilities | 6,825 | 4,756 | |||||
Total current liabilities | 11,236 | 10,907 | |||||
Unearned revenues | 1,620 | 2,003 | |||||
Income taxes payable | 2,312 | — | |||||
Long-term debt | 15,365 | 19,398 | |||||
Other liabilities | 1,225 | 2,432 | |||||
Total liabilities | 31,758 | 34,740 | |||||
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; 1,219 and 1,474 shares issued and outstanding, respectively | — | 274 | |||||
Retained earnings | 663 | 30,088 | |||||
Accumulated other comprehensive income | 265 | 384 | |||||
Total stockholders’ equity | 928 | 30,746 | |||||
Total liabilities and stockholders’ equity | $ | 32,686 | $ | 65,486 |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 16 of 17 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
Revenues: | |||||||||||||||
Equipment and services | $ | 4,650 | $ | 4,698 | $ | 17,400 | $ | 16,647 | |||||||
Licensing | 1,153 | 1,207 | 5,332 | 5,644 | |||||||||||
Total revenues | 5,803 | 5,905 | 22,732 | 22,291 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of revenues | 2,850 | 2,653 | 10,244 | 9,792 | |||||||||||
Research and development | 1,388 | 1,397 | 5,625 | 5,485 | |||||||||||
Selling, general and administrative | 689 | 742 | 2,986 | 2,658 | |||||||||||
Other | 1,530 | 780 | 3,135 | 1,742 | |||||||||||
Total costs and expenses | 6,457 | 5,572 | 21,990 | 19,677 | |||||||||||
Operating (loss) income | (654 | ) | 333 | 742 | 2,614 | ||||||||||
Interest expense | (207 | ) | (164 | ) | (768 | ) | (494 | ) | |||||||
Investment and other income, net | 86 | 265 | 539 | 900 | |||||||||||
Income (loss) before income taxes | (775 | ) | 434 | 513 | 3,020 | ||||||||||
Income tax benefit (expense) | 282 | (266 | ) | (5,377 | ) | (555 | ) | ||||||||
Net (loss) income | (493 | ) | 168 | (4,864 | ) | 2,465 | |||||||||
Net loss attributable to noncontrolling interests | — | — | — | 1 | |||||||||||
Net (loss) income attributable to Qualcomm | $ | (493 | ) | $ | 168 | $ | (4,864 | ) | $ | 2,466 | |||||
Basic (loss) earnings per share attributable to Qualcomm | $ | (0.35 | ) | $ | 0.11 | $ | (3.32 | ) | $ | 1.67 | |||||
Diluted (loss) earnings per share attributable to Qualcomm | $ | (0.35 | ) | $ | 0.11 | $ | (3.32 | ) | $ | 1.65 | |||||
Shares used in per share calculations: | |||||||||||||||
Basic | 1,417 | 1,476 | 1,463 | 1,477 | |||||||||||
Diluted | 1,417 | 1,488 | 1,463 | 1,490 |
Qualcomm Announces Fourth Quarter and Fiscal 2018 Results | Page 17 of 17 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
Operating Activities: | |||||||||||||||
Net (loss) income | $ | (493 | ) | $ | 168 | $ | (4,864 | ) | $ | 2,465 | |||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization expense | 396 | 397 | 1,561 | 1,461 | |||||||||||
Income tax provision (less than) in excess of income tax payments | (471 | ) | 67 | 4,502 | (400 | ) | |||||||||
Non-cash portion of share-based compensation expense | 224 | 204 | 883 | 914 | |||||||||||
Net realized gains on marketable securities and other investments | (24 | ) | (156 | ) | (124 | ) | (530 | ) | |||||||
Indefinite and long-lived asset impairment charges | 177 | — | 273 | 76 | |||||||||||
Impairment losses on marketable securities and other investments | 35 | 15 | 75 | 177 | |||||||||||
Other items, net | 105 | 131 | 129 | 146 | |||||||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable, net | 264 | (83 | ) | 734 | (1,104 | ) | |||||||||
Inventories | 92 | (18 | ) | 337 | (200 | ) | |||||||||
Other assets | (60 | ) | 58 | 30 | 169 | ||||||||||
Trade accounts payable | 202 | 498 | (94 | ) | (45 | ) | |||||||||
Payroll, benefits and other liabilities | (827 | ) | 1,225 | 687 | 2,103 | ||||||||||
Unearned revenues | (56 | ) | (82 | ) | (234 | ) | (231 | ) | |||||||
Net cash (used) provided by operating activities | (436 | ) | 2,424 | 3,895 | 5,001 | ||||||||||
Investing Activities: | |||||||||||||||
Capital expenditures | (159 | ) | (262 | ) | (784 | ) | (690 | ) | |||||||
Purchases of available-for-sale marketable securities | (101 | ) | (3,553 | ) | (5,936 | ) | (19,062 | ) | |||||||
Proceeds from sales and maturities of available-for-sale securities | 83 | 22,072 | 9,188 | 41,715 | |||||||||||
Purchases of other marketable securities | — | (5 | ) | (49 | ) | (710 | ) | ||||||||
Proceeds from sales and maturities of other marketable securities | 50 | 706 | 50 | 706 | |||||||||||
Release (deposits) of investments designated as collateral | 2,000 | — | 2,000 | (2,000 | ) | ||||||||||
Acquisitions and other investments, net of cash acquired | (134 | ) | (143 | ) | (326 | ) | (1,544 | ) | |||||||
Proceeds from other investments | 15 | 5 | 222 | 23 | |||||||||||
Other items, net | 12 | (15 | ) | 16 | 25 | ||||||||||
Net cash provided by investing activities | 1,766 | 18,805 | 4,381 | 18,463 | |||||||||||
Financing Activities: | |||||||||||||||
Proceeds from short-term debt | 1,746 | 1,710 | 11,131 | 8,558 | |||||||||||
Repayment of short-term debt | (3,929 | ) | (1,711 | ) | (11,127 | ) | (9,309 | ) | |||||||
Proceeds from long-term debt | — | — | — | 10,953 | |||||||||||
Repayment of long-term debt | (3,929 | ) | — | (5,500 | ) | — | |||||||||
Release of deposit to redeem long-term debt | 2,831 | — | — | — | |||||||||||
Proceeds from issuance of common stock | 216 | 166 | 603 | 497 | |||||||||||
Repurchases and retirements of common stock | (21,155 | ) | (315 | ) | (22,580 | ) | (1,342 | ) | |||||||
Dividends paid | (866 | ) | (841 | ) | (3,466 | ) | (3,252 | ) | |||||||
Payments of tax withholdings related to vesting of share-based awards | (7 | ) | (5 | ) | (280 | ) | (268 | ) | |||||||
Payment of purchase consideration related to RF360 joint venture | — | (115 | ) | (157 | ) | (115 | ) | ||||||||
Other items, net | (57 | ) | (18 | ) | (111 | ) | (151 | ) | |||||||
Net cash (used) provided by financing activities | (25,150 | ) | (1,129 | ) | (31,487 | ) | 5,571 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (22 | ) | 20 | (41 | ) | 48 | |||||||||
Net (decrease) increase in cash and cash equivalents | (23,842 | ) | 20,120 | (23,252 | ) | 29,083 | |||||||||
Cash and cash equivalents at beginning of period | 35,619 | 14,909 | 35,029 | 5,946 | |||||||||||
Cash and cash equivalents at end of period | $ | 11,777 | $ | 35,029 | $ | 11,777 | $ | 35,029 |