Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items

v3.2.0.727
Composition of Certain Financial Statement Items
9 Months Ended
Jun. 28, 2015
Notes to Financial Statements [Abstract]  
Composition of Certain Financial Statement Items
Note 2 — Composition of Certain Financial Statement Items
Inventories (in millions)
 
 
 
 
June 28,
2015
 
September 28,
2014
Raw materials
$
1

 
$
1

Work-in-process
755

 
656

Finished goods
827

 
801

 
$
1,583

 
$
1,458

 
Other Current Liabilities (in millions)
 
 
 
 
June 28,
2015
 
September 28,
2014
Customer incentives and other customer-related liabilities
$
1,843

 
$
1,777

Other
451

 
466

 
$
2,294

 
$
2,243



Other Costs and Expenses
On February 9, 2015, the Company announced that it had reached a resolution with the China National Development and Reform Commission (NDRC) regarding its investigation of the Company relating to China’s Anti-Monopoly Law (AML) and the Company’s licensing business and certain interactions between the Company’s licensing business and its chipset business. The NDRC issued an Administrative Sanction Decision finding that the Company had violated the AML, and the Company agreed to implement a rectification plan that modifies certain of its business practices in China. In addition, the NDRC imposed a fine on the Company of 6.088 billion Chinese Yuan Renminbi (approximately $975 million), which the Company has paid. The Company recorded the amount of the fine in the second quarter of fiscal 2015 in other expenses. Other expenses in the nine months ended June 28, 2015 also included $255 million and $11 million in impairment charges on goodwill and intangible assets, respectively, related to our content and push-to-talk services and display businesses.
Other expenses in the first nine months of fiscal 2014 were comprised of $607 million in certain property, plant and equipment and goodwill impairment charges related to one of our display businesses and a $16 million goodwill impairment charge related to our former QRS division, partially offset by the reversal of the $173 million accrual recorded in fiscal 2013 related to the ParkerVision verdict (Note 6).

Investment Income, Net (in millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
June 28,
2015
 
June 29,
2014
 
June 28,
2015
 
June 29,
2014
Interest and dividend income
$
128

 
$
139

 
$
400

 
$
460

Interest expense
(32
)
 

 
(34
)
 
(4
)
Net realized gains on marketable securities
117

 
290

 
381

 
660

Net realized gains on other investments
5

 
8

 
18

 
25

Impairment losses on marketable securities
(42
)
 
(8
)
 
(131
)
 
(149
)
Impairment losses on other investments
(13
)
 
(3
)
 
(30
)
 
(21
)
Net gains (losses) on derivative instruments
10

 
(6
)
 
16

 
(1
)
Equity in net losses of investees
(10
)
 
(2
)
 
(23
)
 
(7
)
Net gains on deconsolidation of subsidiaries

 
4

 
3

 
5

 
$
163

 
$
422

 
$
600

 
$
968