Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items (Notes)

v3.5.0.2
Composition of Certain Financial Statement Items (Notes)
 9 Months Ended
Jun. 26, 2016
Notes to Financial Statements [Abstract]  
Composition of Certain Financial Statement Items
Composition of Certain Financial Statement Items
Inventories (in millions)
 
 
 
 
June 26,
2016
 
September 27,
2015
Raw materials
$
3

 
$
1

Work-in-process
694

 
550

Finished goods
641

 
941

 
$
1,338

 
$
1,492


Other Current Liabilities (in millions)
 
 
 
 
June 26,
2016
 
September 27,
2015
Customer incentives and other customer-related liabilities
$
1,685

 
$
1,894

Other
428

 
462

 
$
2,113

 
$
2,356


Other Income, Costs and Expenses. Other expenses in the three months ended June 26, 2016 consisted of restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan (Note 10). Other income in the nine months ended June 26, 2016 included a gain of $380 million on the sale of wireless spectrum in the United Kingdom that was held by the QSI (Qualcomm Strategic Initiatives) segment 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 nine months ended June 26, 2016 also included $158 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 months ended June 28, 2015 consisted of $151 million and $11 million in impairment charges on goodwill and intangible assets, respectively, related to the Company’s content services business and one of our display businesses, partially offset by a $44 million gain on the sale of certain property, plant and equipment. Other expenses in the nine months ended June 28, 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 nine months ended June 28, 2015 also included $255 million and $11 million in impairment charges on goodwill and intangible assets, respectively, related to the Company’s content and push-to-talk services and display businesses, partially offset by $60 million in gains on sales of certain property, plant and equipment.
Investment Income, Net (in millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Interest and dividend income
$
156

 
$
128

 
$
451

 
$
400

Net realized gains on marketable securities
56

 
117

 
99

 
381

Net realized gains on other investments
13

 
5

 
43

 
18

Impairment losses on marketable securities
(20
)
 
(42
)
 
(109
)
 
(131
)
Impairment losses on other investments
(13
)
 
(13
)
 
(29
)
 
(30
)
Equity in net losses of investees
(18
)
 
(10
)
 
(49
)
 
(23
)
Other
2

 
10

 
(3
)
 
19

 
$
176

 
$
195

 
$
403

 
$
634


Net impairment losses on marketable securities related to the noncredit portion of losses on debt securities recognized in other comprehensive income were negligible in the three months ended June 26, 2016 and June 28, 2015 and $37 million and $10 million in the nine months ended June 26, 2016 and June 28, 2015, respectively.