Subsequent Events (Notes)
|9 Months Ended|
Jun. 28, 2020
|Subsequent Events [Abstract]|
Note 10. Subsequent Events
In July 2020, we entered into a settlement agreement with Huawei to resolve our prior dispute related to our license agreement that expired on December 31, 2019. We also entered into a new long-term, global patent license agreement, including a cross license granting back rights to certain of Huawei’s patents, covering sales beginning January 1, 2020. Amounts due under the settlement agreement (which are incremental to the $1.2 billion previously paid under two interim agreements) are expected to be paid in installments within one year in accordance with an agreed upon payment schedule, with the first payment due in the fourth quarter of fiscal 2020. While we continue to assess the accounting impacts of the agreements, including consideration of the geopolitical environment, we currently expect to record revenues in the fourth quarter of fiscal 2020 resulting from such agreements, including certain amounts related to previously satisfied performance obligations. Such event is considered a nonrecognized subsequent event.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef