Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items (Notes)

v3.3.1.900
Composition of Certain Financial Statement Items (Notes)
 3 Months Ended
Dec. 27, 2015
Notes to Financial Statements [Abstract]  
Composition of Certain Financial Statement Items
Note 2. Composition of Certain Financial Statement Items
Accounts Receivable (in millions)
 
 
 
 
December 27, 2015
 
September 27, 2015
Trade, net of allowances for doubtful accounts of $1 and $6, respectively
$
1,302

 
$
1,941

Long-term contracts
13

 
11

Other
8

 
12

 
$
1,323

 
$
1,964


The decrease in accounts receivable was primarily due to the timing of integrated circuit shipments and the collection of payments from certain of the Company’s licensees.
Inventories (in millions)
 
 
 
 
December 27,
2015
 
September 27,
2015
Raw materials
$
1

 
$
1

Work-in-process
458

 
550

Finished goods
757

 
941

 
$
1,216

 
$
1,492


Other Current Liabilities (in millions)
 
 
 
 
December 27,
2015
 
September 27,
2015
Customer incentives and other customer-related liabilities
$
2,188

 
$
1,894

Other
422

 
462

 
$
2,610

 
$
2,356


Other Income, Costs and Expenses. In October 2015, the Company sold its wireless spectrum in the United Kingdom for $232 million in cash and $275 million in deferred payments due in 2020 to 2023, which were recorded at their present values in other assets. The Company recognized a gain on the sale of $380 million in the first quarter of fiscal 2016 in other income. Other income also included $54 million in restructuring and restructuring-related charges, which were partially offset by a $48 million gain on the sale of the Company’s business that provided augmented reality applications, both of which related to the Company’s Strategic Realignment Plan (Note 9).
Other expenses in the three months ended December 28, 2014 were attributable to a $69 million goodwill impairment charge related to the Company’s business that provides push-to-talk enablement services, which was partially offset by a $16 million gain on the sale of certain property, plant and equipment.
Investment Income, Net (in millions)
 
 
 
 
Three Months Ended
 
December 27,
2015
 
December 28,
2014
Interest and dividend income
$
136

 
$
134

Net realized gains on marketable securities
43

 
156

Net realized gains on other investments
6

 
10

Impairment losses on marketable securities
(49
)
 
(62
)
Impairment losses on other investments
(14
)
 
(3
)
Net (losses) gains on derivative instruments
(3
)
 
4

Equity in net losses of investees
(20
)
 
(4
)
 
$
99

 
$
235