Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items (Notes)

v3.6.0.2
Composition of Certain Financial Statement Items (Notes)
3 Months Ended
Dec. 25, 2016
Balance Sheet Related Disclosures [Abstract]  
Composition of Certain Financial Statement Items
Composition of Certain Financial Statement Items
Inventories (in millions)
 
 
 
 
December 25,
2016
 
September 25,
2016
Raw materials
$

 
$
1

Work-in-process
1,016

 
847

Finished goods
894

 
708

 
$
1,910

 
$
1,556


Other Current Liabilities (in millions)
 
 
 
 
December 25,
2016
 
September 25,
2016
Customer incentives and other customer-related liabilities
$
1,985

 
$
1,710

Charge related to the KFTC investigation (Note 6)
868

 

Other
392

 
551

 
$
3,245

 
$
2,261


Other Income, Costs and Expenses. Other expenses in the three months ended December 25, 2016 consisted of an $868 million charge related to the Korea Fair Trade Commission (KFTC) investigation (Note 6) and $8 million in restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan, which was substantially implemented in fiscal 2016.
Other income in the three months ended December 27, 2015 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 three months ended December 27, 2015 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.
Investment Income, Net (in millions)
 
 
 
 
Three Months Ended
 
December 25,
2016
 
December 27,
2015
Interest and dividend income
$
167

 
$
136

Net realized gains on marketable securities
139

 
43

Net realized gains on other investments
8

 
6

Impairment losses on marketable securities
(122
)
 
(49
)
Impairment losses on other investments
(21
)
 
(14
)
Equity in net earnings (losses) of investees
3

 
(20
)
Net gains (losses) on derivative investments
8

 
(3
)
 
$
182

 
$
99


There were no net impairment losses on marketable securities related to the noncredit portion of losses on debt securities recognized in other comprehensive income in the three months ended December 25, 2016, and such losses were negligible in the three months ended December 27, 2015. The ending balance of the credit loss portion of other-than-temporary impairments on debt securities held by the Company was negligible and $22 million at December 25, 2016 and December 27, 2015, respectively.