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)
 6 Months Ended
Mar. 27, 2016
Notes to Financial Statements [Abstract]  
Composition of Certain Financial Statement Items
Note 2. Composition of Certain Financial Statement Items
Accounts Receivable (in millions)
 
 
 
 
March 27, 2016
 
September 27, 2015
Trade, net of allowances for doubtful accounts of $1 and $6, respectively
$
1,697

 
$
1,941

Long-term contracts
16

 
11

Other
25

 
12

 
$
1,738

 
$
1,964


The decrease in accounts receivable was primarily due to the collection of payments from certain of the Company’s licensees and the timing of integrated circuit shipments.
Inventories (in millions)
 
 
 
 
March 27,
2016
 
September 27,
2015
Raw materials
$
5

 
$
1

Work-in-process
573

 
550

Finished goods
849

 
941

 
$
1,427

 
$
1,492


Other Current Liabilities (in millions)
 
 
 
 
March 27,
2016
 
September 27,
2015
Customer incentives and other customer-related liabilities
$
1,561

 
$
1,894

Other
488

 
462

 
$
2,049

 
$
2,356


Other Income, Costs and Expenses. Other expenses in the three months ended March 27, 2016 consisted of restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan (Note 10). Other income in the six months ended March 27, 2016 included a gain of $380 million on the sale of wireless spectrum in the United Kingdom in the first quarter of fiscal 2016 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. Other income in the six months ended March 27, 2016 also included $129 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.
Other expenses in the three and six months ended March 29, 2015 included a $975 million charge resulting from the resolution reached with the China National Development and Reform Commission (NDRC) in the second quarter of fiscal 2015 regarding the NDRC’s investigation of the Company relating to China’s Anti-Monopoly Law. Other expenses in the six months ended March 29, 2015 also included $104 million in goodwill impairment charges related to the Company’s push-to-talk services and display businesses, which were partially offset by a $16 million gain on the sale of certain property, plant and equipment.
Investment Income, Net (in millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
March 27,
2016
 
March 29,
2015
 
March 27,
2016
 
March 29,
2015
Interest and dividend income
$
158

 
$
138

 
$
295

 
$
272

Net realized gains on marketable securities
1

 
108

 
43

 
264

Net realized gains on other investments
23

 
3

 
30

 
13

Impairment losses on marketable securities
(41
)
 
(27
)
 
(90
)
 
(89
)
Impairment losses on other investments
(2
)
 
(14
)
 
(16
)
 
(17
)
Equity in net losses of investees
(11
)
 
(9
)
 
(31
)
 
(13
)
Other
(1
)
 
5

 
(5
)
 
9

 
$
127

 
$
204

 
$
226

 
$
439


Net impairment losses on marketable securities related to the noncredit portion of losses on debt securities recognized in other comprehensive income (loss) were $13 million and $36 million in the three and six months ended March 27, 2016, respectively, and were negligible in the three and six months ended March 29, 2015.