Q4 Fiscal 2019 | Q4 Fiscal 2018 1 | Year-Over-Year Change 2 | Q3 Fiscal 2019 | Sequential Change 2 | |||||
Revenues | $4.8B | $5.8B | (17%) | $9.6B | (50%) | ||||
Operating income (loss) | $0.7B | ($0.7B) | N/M | $5.3B | (87%) | ||||
Net income (loss) | $0.5B | ($0.5B) | N/M | $2.1B | (76%) | ||||
Diluted earnings (loss) per share | $0.42 | ($0.36) | N/M | $1.75 | (76%) | ||||
Operating cash flow 3 | $1.2B | ($0.4B) | N/M | $4.9B | (75%) |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 2 of 17 |
Fiscal 2019 | Fiscal 2018 | Year-Over-Year Change | |||
Revenues | $24.3B | $22.6B | +7% | ||
Operating income | $7.7B | $0.6B | N/M | ||
Net income (loss) | $4.4B | ($5.0B) | N/M | ||
Diluted earnings (loss) per share | $3.59 | ($3.39) | N/M | ||
Operating cash flow | $7.3B | $3.9B | +86% |
Q4 Fiscal 2019 | Q4 Fiscal 2018 | Year-Over-Year Change | Q3 Fiscal 2019 | Sequential Change | |||||
Revenues | $4.8B | $5.8B | (17%) | $4.9B | (2%) | ||||
Operating income | $1.1B | $1.3B | (9%) | $1.2B | (6%) | ||||
Net income | $0.9B | $1.3B | (25%) | $1.0B | (4%) | ||||
Diluted earnings per share | $0.78 | $0.89 | (12%) | $0.80 | (3%) |
Fiscal 2019 | Fiscal 2018 | Year-Over-Year Change | |||
Revenues | $19.4B | $22.6B | (14%) | ||
Operating income | $4.7B | $5.5B | (15%) | ||
Net income | $4.3B | $5.3B | (19%) | ||
Diluted earnings per share | $3.54 | $3.62 | (2%) |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 3 of 17 |
• | Fiscal 2019 GAAP results included: |
◦ | $4.7 billion of revenues, or $3.23 per share, resulting from settlement agreements with Apple and its contract manufacturers in the third quarter of fiscal 2019, which were not allocated to our segment results. |
◦ | $2.5 billion tax expense, or ($2.01) per share, due to the derecognition of a deferred tax asset in the third quarter of fiscal 2019 as a result of an agreement with the Internal Revenue Service (IRS) under which we relinquished the federal tax basis step-up in certain distributed intellectual property. |
◦ | $275 million charge, or ($0.22) per share, for the fine imposed by the European Commission (EC) recognized in the third quarter of fiscal 2019 (2019 EC fine), for which we have provided a financial guarantee to satisfy the obligation in lieu of a cash payment while we appeal the EC’s decision. |
◦ | $213 million of restructuring and restructuring-related charges, or ($0.16) per share, related to our Cost Plan that was announced in the second quarter of fiscal 2018. |
• | Fiscal 2019 GAAP and Non-GAAP results included: |
◦ | $570 million tax benefit, or $0.47 per share, for GAAP and $552 million tax benefit, or |
◦ | $450 million of revenues, or $0.32 per share, resulting from our second interim agreement with Huawei. |
• | 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 in the United States in the first quarter of fiscal 2018. |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 4 of 17 |
◦ | $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 to acquire NXP. |
◦ | $1.2 billion charge, or ($0.76) per share, for the fine imposed by the EC (2018 EC fine) recognized in the first quarter of fiscal 2018, for which we have provided financial guarantees to satisfy the obligation in lieu of a 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. |
◦ | $676 million gain, or $0.48 per share, related to the settlement of the Taiwan Fair Trade Commission 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 Huawei for royalties due after the second quarter of fiscal 2017. |
(in millions, except percentages) | Q4 Fiscal 2019 | Q4 Fiscal 2018 | Year-Over-Year Change | Q3 Fiscal 2019 | Sequential Change | ||||
QCT | |||||||||
Revenues | $3,611 | $4,647 | (22%) | $3,567 | +1% | ||||
EBT 1 | $499 | $796 | (37%) | $504 | (1%) | ||||
EBT as % of revenues | 14% | 17% | (3%) | 14% | —% | ||||
MSMTM chip shipments | 152 | 232 | (34%) | 156 | (3%) | ||||
QTL | |||||||||
Revenues | $1,158 | $1,113 | +4% | $1,292 | (10%) | ||||
EBT | $792 | $714 | +11% | $898 | (12%) | ||||
EBT as % of revenues | 68% | 64% | +4% | 70% | (2%) |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 5 of 17 |
(in millions, except percentages) | Fiscal 2019 | Fiscal 2018 | Year-Over-Year Change | ||
QCT | |||||
Revenues | $14,639 | $17,282 | (15%) | ||
EBT | $2,143 | $2,966 | (28%) | ||
EBT as % of revenues | 15% | 17% | (2%) | ||
MSMTM chip shipments | 650 | 855 | (24%) | ||
QTL | |||||
Revenues | $4,591 | $5,042 | (9%) | ||
EBT | $2,954 | $3,404 | (13%) | ||
EBT as % of revenues | 64% | 68% | (4%) |
Stock Repurchases | Dividends | Total | |||||||
Shares (1) | Amount | Per Share | Amount | Amount | |||||
Q4 fiscal 2019 | 9.4 | $706 | $0.62 | $711 | $1,417 | ||||
Fiscal 2019 | 27.1 | $1,793 | $2.48 | $2,968 | $4,761 |
(1) | In fiscal 2018, we entered into three accelerated share repurchase agreements (the ASR Agreements) to repurchase an aggregate of $16.0 billion of our common stock, with 178.4 million shares initially delivered to us under the ASR Agreements and retired. The ASR Agreements were completed during the fourth quarter of fiscal 2019, and an additional 68.7 million shares were delivered to us, comprising the final delivery of shares under the ASR Agreements, which have not been included in the stock repurchase share amounts for the fourth quarter and fiscal 2019. |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 6 of 17 |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 7 of 17 |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 8 of 17 |
Q1 FY19 Results (1) | Current Guidance Q1 FY20 Estimates (2)(3) | |||||
Revenues | $4.8B | $4.4B - $5.2B | ||||
Year-over-year change | decrease 9% - increase 7% | |||||
GAAP diluted EPS | $0.87 | $0.51 - $0.61 | ||||
Year-over-year change | decrease 30% - 41% | |||||
Less diluted EPS attributable to QSI | $0.01 | $0.00 | ||||
Less diluted EPS attributable to share-based compensation | ($0.15) | ($0.22 | ) | |||
Less diluted EPS attributable to other items | ($0.18) | ($0.07 | ) | |||
Non-GAAP diluted EPS | $1.20 | $0.80 - $0.90 | ||||
Year-over-year change | decrease 25% - 33% | |||||
Other Information | ||||||
MSM chip shipments | 186M | 145M - 165M | ||||
Year-over-year change | decrease 11% - 22% | |||||
QTL revenues | $1.0B | $1.3B - $1.5B | ||||
Year-over-year change | increase 28% - increase 47% |
(1) | The first quarter of fiscal 2019 results excluded QTL revenues for royalties due on sales of Apple or other products by Apple’s contract manufacturers. The first quarter of fiscal 2019 results included a $570 million tax benefit for GAAP and $552 million tax benefit for Non-GAAP relating to certain tax elections made and $150 million of revenues resulting from an interim agreement with Huawei. Diluted EPS attributable to other items for the first quarter of fiscal 2019 was primarily attributable to restructuring and restructuring-related charges related to our Cost Plan and acquisition-related items. |
(2) | Our guidance for diluted EPS attributable to other items for the first quarter of fiscal 2020 is primarily attributable to acquisition-related items. |
(3) | Our financial guidance for the first quarter of fiscal 2020 excludes QTL revenues for royalties due on sales of products by Huawei. |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 9 of 17 |
GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (a) (b) | Non-GAAP Results | ||||||||||||
Q4 FISCAL 2019 | ||||||||||||||||
Revenues | $4,814 | $10 | $— | $— | $4,804 | |||||||||||
Operating income (loss) | 701 | 3 | (339) | (100) | 1,137 | |||||||||||
EBT | 615 | 7 | (339) | (102) | 1,049 | |||||||||||
EBT as % of revenues | 13 | % | 22 | % | ||||||||||||
Net income (loss) | 506 | 5 | (282) | (164) | 947 | |||||||||||
Diluted EPS | $0.42 | $0.00 | ($0.23) | ($0.14) | $0.78 | |||||||||||
Diluted shares | 1,211 | 1,211 | 1,211 | 1,211 | 1,211 | |||||||||||
Q3 FISCAL 2019 | ||||||||||||||||
Revenues | $9,635 | $18 | $— | $4,723 | $4,894 | |||||||||||
Operating income (loss) | 5,317 | 10 | (246) | 4,339 | 1,214 | |||||||||||
EBT | 5,501 | 312 | (246) | 4,334 | 1,101 | |||||||||||
EBT as % of revenues | 57 | % | 22 | % | ||||||||||||
Net income (loss) | 2,149 | 237 | (198) | 1,128 | 982 | |||||||||||
Diluted EPS | $1.75 | $0.19 | ($0.16) | $0.92 | $0.80 | |||||||||||
Diluted shares | 1,231 | 1,231 | 1,231 | 1,231 | 1,231 | |||||||||||
Q4 FISCAL 2018 | ||||||||||||||||
Revenues | $5,778 | $20 | $— | ($50) | $5,808 | |||||||||||
Operating (loss) income | (679) | 2 | (224) | (1,712) | 1,255 | |||||||||||
EBT | (800) | (20) | (224) | (1,800) | 1,244 | |||||||||||
EBT as % of revenues | N/M | 21 | % | |||||||||||||
Net (loss) income | (513) | (11) | (195) | (1,567) | 1,260 | |||||||||||
Diluted EPS | ($0.36) | ($0.01) | ($0.14) | ($1.10) | $0.89 | |||||||||||
Diluted shares | 1,417 | 1,429 | 1,429 | 1,429 | 1,429 | |||||||||||
FISCAL 2019 | ||||||||||||||||
Revenues | $24,273 | $152 | $— | $4,723 | (c) | $19,398 | ||||||||||
Operating income (loss) | 7,667 | 113 | (1,037) | 3,891 | 4,700 | |||||||||||
EBT | 7,481 | 344 | (1,037) | 3,889 | 4,285 | |||||||||||
EBT as % of revenues | 31 | % | 22 | % | ||||||||||||
Net income (loss) | 4,386 | 271 | (853) | 645 | 4,323 | |||||||||||
Diluted EPS | $3.59 | $0.22 | ($0.70) | $0.53 | $3.54 | |||||||||||
Diluted shares | 1,220 | 1,220 | 1,220 | 1,220 | 1,220 | |||||||||||
FISCAL 2018 | ||||||||||||||||
Revenues | $22,611 | $100 | $— | ($100) | $22,611 | |||||||||||
Operating income (loss) | 621 | 23 | (883) | (4,018) | 5,499 | |||||||||||
EBT | 392 | 24 | (883) | (4,132) | 5,383 | |||||||||||
EBT as % of revenues | 2 | % | 24 | % | ||||||||||||
Net (loss) income | (4,964) | 22 | (743) | (9,586) | 5,343 | |||||||||||
Diluted EPS | ($3.39) | $0.01 | ($0.50) | ($6.53) | $3.62 | |||||||||||
Diluted shares | 1,463 | 1,475 | 1,475 | 1,475 | 1,475 |
(a) | At fiscal year end, the quarterly tax provision (benefit) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and this difference is included in the tax provision (benefit) in the “Other Items” column. See the “Reconciliations of GAAP Tax Rates to Non-GAAP Tax Rates” herein for further details. |
(b) | Further details of amounts included in the “Other Items” column for the current period are included in the “Supplemental Information and Reconciliations” and the “Reconciliations of GAAP Tax Rates to Non-GAAP Tax Rates” sections herein. Details of amounts included in the “Other Items” column for prior periods as well as other notes related to prior periods are included in the news releases for those periods. |
(c) | In fiscal 2019, other items excluded from Non-GAAP revenues were comprised of licensing revenues resulting from the settlement with Apple and its contract manufacturers, which were not allocated to our segment results. |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 10 of 17 |
Q4 FISCAL 2019 | |||||||||||||||||||
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (a) | Non-GAAP Results | ||||||||||||||
Cost of revenues | $2,118 | $4 | $12 | $88 | $2,014 | ||||||||||||||
Research and development (R&D) expenses | 1,441 | — | 246 | 1 | 1,194 | ||||||||||||||
Selling, general and administrative (SG&A) expenses | 548 | 3 | 81 | 5 | 459 | ||||||||||||||
Other expenses | 6 | — | — | 6 | — | ||||||||||||||
Interest expense | 150 | — | — | 6 | 144 | ||||||||||||||
Investment and other income, net | 64 | 4 | — | 4 | 56 |
(a) | Other items excluded from Non-GAAP results included $96 million of acquisition-related charges, $5 million of interest expense related to the 2018 EC fine and $4 million of net restructuring and restructuring-related charges primarily related to our Cost Plan, partially offset by $3 million of foreign currency transaction gains related to the 2019 EC fine. |
FISCAL 2019 | |||||||||||||||||||
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (b) | Non-GAAP Results | ||||||||||||||
Cost of revenues | $8,599 | $26 | $35 | $387 | $8,151 | ||||||||||||||
Research and development (R&D) expenses | 5,398 | — | 725 | 4 | 4,669 | ||||||||||||||
Selling, general and administrative (SG&A) expenses | 2,195 | 13 | 277 | 27 | 1,878 | ||||||||||||||
Other expenses | 414 | — | — | 414 | — | ||||||||||||||
Interest expense | 627 | — | — | 22 | 605 | ||||||||||||||
Investment and other income, net | 441 | 231 | — | 20 | 190 |
(b) | Other items excluded from Non-GAAP results included $418 million of acquisition-related charges, a $275 million charge related to the 2019 EC fine, $213 million of net restructuring and restructuring-related charges primarily related to our Cost Plan and $21 million of interest expense related to the 2018 EC fine, partially offset by a $43 million gain (and $13 million of interest) due to the partial recovery of a fine imposed in fiscal 2009 resulting from our appeal of the Korea Fair Trade Commission (KFTC) decision, a $31 million benefit related to a favorable legal settlement and $6 million of foreign currency transaction gains related to the 2018 and 2019 EC fines, net of associated losses on derivative instruments. |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 11 of 17 |
($ in millions) | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items (b) (c) | Non-GAAP Results | ||||||||||||||||||||||||||
Q4 FISCAL 2019 | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 615 | $ | 7 | $ | (339 | ) | $ | (102 | ) | $ | 1,049 | |||||||||||||||||||
Income tax (expense) benefit | (109 | ) | (2 | ) | 57 | (62 | ) | (102 | ) | ||||||||||||||||||||||
Net income (loss) | $ | 506 | $ | 5 | $ | (282 | ) | $ | (164 | ) | $ | 947 | |||||||||||||||||||
Tax rate | 18 | % | — | % | (a) | — | % | (a) | 8 | % | (a) | 10 | % | ||||||||||||||||||
FISCAL 2019 | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 7,481 | $ | 344 | $ | (1,037 | ) | $ | 3,889 | $ | 4,285 | ||||||||||||||||||||
Income tax (expense) benefit | (3,095 | ) | (73 | ) | 184 | (3,244 | ) | 38 | |||||||||||||||||||||||
Net income (loss) | $ | 4,386 | $ | 271 | $ | (853 | ) | $ | 645 | $ | 4,323 | ||||||||||||||||||||
Tax rate | 41 | % | (2 | %) | (a) | 6 | % | (a) | 38 | % | (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 2019, the tax expense in the “Other Items” column included a $66 million charge for the foreign currency loss related to a refund claim for withholding taxes paid to Korea in prior periods, a $23 million charge to reconcile the tax provision for each column to the total GAAP tax provision for the quarter, a $20 million charge related to a proposed settlement with the IRS and a $17 million charge for the combined effect of other items in EBT, partially offset by a $47 million benefit for release of a valuation allowance and a $17 million benefit for the tax effect of acquisition-related items in EBT. |
(c) | In fiscal 2019, the tax expense in the “Other Items” column included a $2.5 billion charge for the write-off of a deferred tax asset, a $786 million charge for the combined effect of other items in EBT, a $70 million charge related to certain other impacts of final U.S. regulations issued in the third quarter of fiscal 2019, a $66 million charge for the foreign currency loss related to a refund claim for withholding taxes paid to Korea in prior periods and a $20 million charge related to a proposed settlement with the IRS, partially offset by a $79 million benefit for release of a valuation allowance, a $72 million benefit for the tax effect of acquisition-related items in EBT and an $18 million tax benefit related to a prior year. |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 12 of 17 |
• | QSI is excluded because we expect to exit our strategic investments in the foreseeable future, and the effects of fluctuations in the value of such investments and realized gains or losses are viewed as unrelated to our operational performance. |
• | Share-based compensation expense primarily relates to restricted stock units. We believe that excluding non-cash share-based compensation from the Non-GAAP financial information allows us and investors to make additional comparisons of the operating activities of our ongoing core businesses over time and with respect to other companies. |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 13 of 17 |
• | Certain other items are excluded because we view such items as unrelated to the operating activities of our ongoing core businesses, as follows: |
• | Acquisition-related items include amortization of certain intangible assets, recognition of the step-up of inventories and property, plant and equipment 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, we exclude 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. |
• | We exclude certain other items that we view as unrelated to our ongoing businesses, 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 our ongoing Non-GAAP tax rate and after-tax earnings. In fiscal 2018, we excluded the full impact of the estimated one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries, 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 2019 Results | Page 14 of 17 |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 15 of 17 |
September 29, 2019 | September 30, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 11,839 | $ | 11,777 | |||
Marketable securities | 421 | 311 | |||||
Accounts receivable, net | 2,471 | 2,904 | |||||
Inventories | 1,400 | 1,693 | |||||
Other current assets | 634 | 699 | |||||
Total current assets | 16,765 | 17,384 | |||||
Deferred tax assets | 1,196 | 936 | |||||
Property, plant and equipment, net | 3,081 | 2,975 | |||||
Goodwill | 6,282 | 6,498 | |||||
Other intangible assets, net | 2,172 | 2,955 | |||||
Other assets | 3,461 | 1,970 | |||||
Total assets | $ | 32,957 | $ | 32,718 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 1,368 | $ | 1,825 | |||
Payroll and other benefits related liabilities | 1,048 | 1,081 | |||||
Unearned revenues | 565 | 500 | |||||
Short-term debt | 2,496 | 1,005 | |||||
Other current liabilities | 3,458 | 6,978 | |||||
Total current liabilities | 8,935 | 11,389 | |||||
Unearned revenues | 1,160 | 1,620 | |||||
Income taxes payable | 2,088 | 2,312 | |||||
Long-term debt | 13,437 | 15,365 | |||||
Other liabilities | 2,428 | 1,225 | |||||
Total liabilities | 28,048 | 31,911 | |||||
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; 1,145 and 1,219 shares issued and outstanding, respectively | 343 | — | |||||
Retained earnings | 4,466 | 542 | |||||
Accumulated other comprehensive income | 100 | 265 | |||||
Total stockholders’ equity | 4,909 | 807 | |||||
Total liabilities and stockholders’ equity | $ | 32,957 | $ | 32,718 |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 16 of 17 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 29, 2019 | September 30, 2018 | September 29, 2019 | September 30, 2018 | ||||||||||||
Revenues: | |||||||||||||||
Equipment and services | $ | 3,573 | $ | 4,650 | $ | 14,611 | $ | 17,400 | |||||||
Licensing | 1,241 | 1,128 | 9,662 | 5,211 | |||||||||||
Total revenues | 4,814 | 5,778 | 24,273 | 22,611 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of revenues | 2,118 | 2,850 | 8,599 | 10,244 | |||||||||||
Research and development | 1,441 | 1,388 | 5,398 | 5,625 | |||||||||||
Selling, general and administrative | 548 | 689 | 2,195 | 2,986 | |||||||||||
Other | 6 | 1,530 | 414 | 3,135 | |||||||||||
Total costs and expenses | 4,113 | 6,457 | 16,606 | 21,990 | |||||||||||
Operating income | 701 | (679 | ) | 7,667 | 621 | ||||||||||
Interest expense | (150 | ) | (207 | ) | (627 | ) | (768 | ) | |||||||
Investment and other income, net | 64 | 86 | 441 | 539 | |||||||||||
Income before income taxes | 615 | (800 | ) | 7,481 | 392 | ||||||||||
Income tax (expense) benefit | (109 | ) | 287 | (3,095 | ) | (5,356 | ) | ||||||||
Net income (loss) | $ | 506 | $ | (513 | ) | $ | 4,386 | $ | (4,964 | ) | |||||
Basic earnings (loss) per share attributable to Qualcomm | $ | 0.42 | $ | (0.36 | ) | $ | 3.63 | $ | (3.39 | ) | |||||
Diluted earnings (loss) per share attributable to Qualcomm | $ | 0.42 | $ | (0.36 | ) | $ | 3.59 | $ | (3.39 | ) | |||||
Shares used in per share calculations: | |||||||||||||||
Basic | 1,197 | 1,417 | 1,210 | 1,463 | |||||||||||
Diluted | 1,211 | 1,417 | 1,220 | 1,463 |
Qualcomm Announces Fourth Quarter and Fiscal 2019 Results | Page 17 of 17 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 29, 2019 | September 30, 2018 | September 29, 2019 | September 30, 2018 | ||||||||||||
Operating Activities: | |||||||||||||||
Net income (loss) | $ | 506 | $ | (513 | ) | $ | 4,386 | $ | (4,964 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization expense | 350 | 396 | 1,401 | 1,561 | |||||||||||
Income tax provision (less than) in excess of income tax payments | (230 | ) | (477 | ) | 1,976 | 4,481 | |||||||||
Non-cash portion of share-based compensation expense | 339 | 224 | 1,037 | 883 | |||||||||||
Net gains on marketable securities and other investments | (16 | ) | (23 | ) | (356 | ) | (124 | ) | |||||||
Indefinite and long-lived asset impairment charges | — | 177 | 203 | 273 | |||||||||||
Impairment losses on marketable securities and other investments | 24 | 35 | 135 | 75 | |||||||||||
Other items, net | (65 | ) | (3 | ) | (272 | ) | (49 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable, net | (78 | ) | 264 | 1,373 | 734 | ||||||||||
Inventories | 368 | 92 | 273 | 337 | |||||||||||
Other assets | 63 | (48 | ) | 78 | 24 | ||||||||||
Trade accounts payable | (176 | ) | 202 | (443 | ) | (94 | ) | ||||||||
Payroll, benefits and other liabilities | 158 | (693 | ) | (2,376 | ) | 1,005 | |||||||||
Unearned revenues | (16 | ) | (56 | ) | (129 | ) | (234 | ) | |||||||
Net cash provided (used) by operating activities | 1,227 | (423 | ) | 7,286 | 3,908 | ||||||||||
Investing Activities: | |||||||||||||||
Capital expenditures | (317 | ) | (159 | ) | (887 | ) | (784 | ) | |||||||
Purchases of debt and equity marketable securities | — | (101 | ) | — | (5,936 | ) | |||||||||
Proceeds from sales and maturities of debt and equity marketable securities | 15 | 83 | 139 | 9,188 | |||||||||||
Purchases of other marketable securities | — | — | — | (49 | ) | ||||||||||
Proceeds from sales and maturities of other marketable securities | — | 50 | — | 50 | |||||||||||
Acquisitions and other investments, net of cash acquired | (67 | ) | (134 | ) | (252 | ) | (326 | ) | |||||||
Proceeds from other investments | 23 | 15 | 68 | 222 | |||||||||||
Other items, net | 9 | 12 | 126 | 16 | |||||||||||
Net cash (used) provided by investing activities | (337 | ) | (234 | ) | (806 | ) | 2,381 | ||||||||
Financing Activities: | |||||||||||||||
Proceeds from short-term debt | 1,181 | 1,746 | 5,989 | 11,131 | |||||||||||
Repayment of short-term debt | (1,679 | ) | (3,929 | ) | (6,492 | ) | (11,127 | ) | |||||||
Repayment of long-term debt | — | (3,942 | ) | — | (5,513 | ) | |||||||||
Proceeds from issuance of common stock | 150 | 216 | 414 | 603 | |||||||||||
Repurchases and retirements of common stock | (705 | ) | (21,155 | ) | (1,793 | ) | (22,580 | ) | |||||||
Dividends paid | (711 | ) | (866 | ) | (2,968 | ) | (3,466 | ) | |||||||
Payments of tax withholdings related to vesting of share-based awards | (41 | ) | (7 | ) | (266 | ) | (280 | ) | |||||||
Payment of purchase consideration related to RF360 Holdings | (1,119 | ) | — | (1,163 | ) | (157 | ) | ||||||||
Other items, net | (16 | ) | (57 | ) | (107 | ) | (111 | ) | |||||||
Net cash used by financing activities | (2,940 | ) | (27,994 | ) | (6,386 | ) | (31,500 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (34 | ) | (22 | ) | (32 | ) | (41 | ) | |||||||
Net (decrease) increase in total cash and cash equivalents | (2,084 | ) | (28,673 | ) | 62 | (25,252 | ) | ||||||||
Total cash and cash equivalents at beginning of period | 13,923 | 40,450 | 11,777 | 37,029 | |||||||||||
Total cash and cash equivalents at end of period | $ | 11,839 | $ | 11,777 | $ | 11,839 | $ | 11,777 |