Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 9 Months Ended
Jun. 26, 2011
Notes to Financial Statements [Abstract]  
Note 7 - Stockholders' Equity
Note 7 — Stockholders’ Equity
Changes in stockholders’ equity for the nine months ended June 26, 2011 were as follows (in millions):
 
QUALCOMM Stockholders’ Equity
 
Noncontrolling Interests
 
Total Stockholders’ Equity
Balance at September 26, 2010
$
20,858

 
$
—

 
$
20,858

Issuance of subsidiary shares to noncontrolling interests
16

 
40

 
56

Net income (loss)(1)
3,204

 
(10
)
 
3,194

Other comprehensive income
47

 
—

 
47

Common stock issued under employee benefit plans
2,355

 
—

 
2,355

Share-based compensation
587

 
—

 
587

Tax benefit from exercise of stock options
110

 
—

 
110

Dividends
(993
)
 
—

 
(993
)
Value of stock awards assumed in acquisition
106

 
—

 
106

Other
(19
)
 
—

 
(19
)
Balance at June 26, 2011
$
26,271

 
$
30

 
$
26,301


(1) Loss from discontinued operations, net of income taxes (Note 10), was attributable to QUALCOMM.
Noncontrolling Interests. In June 2010, the Company won a 20 MHz slot of Broadband Wireless Access (BWA) spectrum in four telecom circles in India as a result of the completion of the BWA spectrum auction. Assignment of licenses to operate wireless networks on this spectrum, with an initial license period of 20 years, is pending approval by the Indian government. At June 26, 2011 and September 26, 2010, the Company had a $1.1 billion advance payment included in noncurrent other assets related to this spectrum. The Company will amortize the spectrum licenses over the remaining license period commencing upon the commercial launch of wireless services in India, which is expected to occur within five years of the assignment date. The Company’s goal is to attract one or more operator partners into a venture (or ventures) for construction of an LTE network in compliance with the Indian government’s rollout requirement for the BWA spectrum and then to exit the venture(s). The manner and timing of such exit will be dependent upon a number of factors, such as market conditions and regulatory considerations, among others.
During the second quarter of fiscal 2011, in connection with the India BWA spectrum purchase, certain of the Company’s subsidiaries in India issued noncontrolling interests to two third-party Indian investors for $62 million, such that the Company now holds a 74% interest in each of those subsidiaries, the maximum interest permitted under applicable Indian Foreign Direct Investment regulations. In addition, the third parties representing the noncontrolling interests in the subsidiaries hold put rights that provide them with options to sell their ownership interests in the subsidiaries to QUALCOMM Incorporated or its nominee (subject to applicable regulatory approvals) after July 29, 2014, or earlier if certain events occur, at a price equal to their original capital contribution. The aggregate fair value of these put rights, which are accounted for as freestanding financial instruments classified in other liabilities, was $8 million at June 26, 2011.
Stock Repurchase Program. The Company did not repurchase any shares during the three and nine months ended June 26, 2011. During the three and nine months ended June 27, 2010, the Company repurchased and retired 32,388,000 and 76,259,000 shares of the Company’s common stock, respectively, for $1.2 billion and $2.9 billion, respectively. At June 26, 2011, approximately $1.7 billion remained authorized for repurchase under the Company’s stock repurchase program. The stock repurchase program has no expiration date.
Dividends. On March 8, 2011, the Company announced an increase in its quarterly cash dividend per share of common stock from $0.190 to $0.215, which is effective for dividends payable after March 25, 2011. On July 13, 2011, the Company announced a cash dividend of $0.215 per share on the Company’s common stock, payable on September 23, 2011 to stockholders of record as of August 26, 2011. During the nine months ended June 26, 2011 and June 27, 2010, dividends charged to retained earnings were as follows (in millions, except per share data):
 
2011
 
2010
 
Per Share
 
Total
 
Per Share
 
Total
First Quarter
$
0.190

 
$
314

 
$
0.170

 
$
284

Second Quarter
0.190

 
319

 
0.170

 
279

Third Quarter
0.215

 
360

 
0.190

 
309

 
$
0.595

 
$
993

 
$
0.530

 
$
872