Annual report pursuant to Section 13 and 15(d)

Significant Accounting Policies (Tables)

v3.19.3
Significant Accounting Policies (Tables)
12 Months Ended
Sep. 29, 2019
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
The following table summarizes the cumulative effects of adopting the new revenue accounting guidance (substantially all of which related to the impact to QTL’s sales-based royalties) on our consolidated balance sheet at October 1, 2018 (in millions):
 
Balance at September 30,
2018
 
Adjustment
 
Opening Balance at October 1,
2018
Assets
 
 
 
 
 
Accounts receivable, net
$
2,904

 
$
957

 
$
3,861

Other current assets
699

 
1

 
700

Deferred tax assets
936

 
(98
)
 
838

Other assets
1,970

 
1

 
1,971

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Unearned revenues, current
$
500

 
$
6

 
$
506

Other current liabilities
6,978

 
125

 
7,103

Unearned revenues
1,620

 
(110
)
 
1,510

 
 
 
 
 
 
Stockholders’ equity
 
 
 
 
 
Retained earnings
$
542

 
$
840

 
$
1,382

The following tables summarize the impacts of adopting the new revenue accounting guidance on our consolidated balance sheet and statement of operations (in millions):
 
Balance at September 29, 2019
Balance Sheet
As Reported
ASC 606
 
Adjustment
 
ASC 605
Assets
 
 
 
 
 
Accounts receivable, net
$
2,471

 
$
(1,171
)
 
$
1,300

Other current assets
634

 
(35
)
 
599

Deferred tax assets
1,196

 
140

 
1,336

Other assets
3,461

 
(62
)
 
3,399

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Unearned revenues, current
$
565

 
$
55

 
$
620

Other current liabilities
3,458

 
(169
)
 
3,289

Unearned revenues
1,160

 
182

 
1,342

Other liabilities
2,428

 
(58
)
 
2,370

 
 
 
 
 
 
Stockholders’ equity
 
 
 
 
 
Retained earnings
$
4,466

 
$
(1,138
)
 
$
3,328

 
Year Ended September 29, 2019
Statement of Operations
As Reported
ASC 606
 
Adjustment
 
ASC 605
Revenues
 
 
 
 
 
Equipment and services
$
14,611

 
$
(106
)
 
$
14,505

Licensing
9,662

 
(270
)
 
9,392

Income tax expense
(3,095
)
 
78

 
(3,017
)
Net income
4,386

 
(298
)
 
4,088


Notional Amounts of Outstanding Derivative Positions
Gross Notional Amounts: The gross notional amounts of our interest rate and foreign currency derivatives by instrument type were as follows (in millions):

September 29, 2019
 
September 30, 2018
Forwards
$
878

 
$
682

Options
176

 
1,375

Swaps
1,750

 
1,750

 
$
2,804

 
$
3,807

The gross notional amounts of our derivatives by currency were as follows (in millions):
 
September 29, 2019
 
September 30, 2018
Chinese renminbi
$
463

 
$
650

Euro

 
938

Indian rupee
440

 
336

Japanese yen
12

 
17

United States dollar
1,889

 
1,866

 
$
2,804

 
$
3,807


Schedule of diluted earnings per share The following table provides information about the diluted earnings per share calculation (in millions):
 
2019
 
2018
 
2017
Dilutive common share equivalents included in diluted shares
10.4

 

 
13.0

Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period
7.5

 
51.2

 
3.0