Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items (Tables)

v3.22.2
Composition of Certain Financial Statement Items (Tables)
9 Months Ended
Jun. 26, 2022
Condensed Financial Information Disclosure [Abstract]  
Inventories
Inventories (in millions)
June 26,
2022
September 26,
2021
Raw materials $ 267  $ 267 
Work-in-process 2,778  1,475 
Finished goods 2,373  1,486 
$ 5,418  $ 3,228 
QCT Revenues Disaggregated QCT revenue streams were as follows (in millions):
Three Months Ended Nine Months Ended
June 26,
2022
June 27,
2021
June 26,
2022
June 27,
2021
Handsets (1) $ 6,149  $ 3,863  $ 18,457  $ 12,144 
RFFE (2) 1,046  957  3,338  2,921 
Automotive (3) 350  253  945  705 
IoT (internet of things) (4) 1,833  1,399  5,033  3,517 
Total QCT revenues $ 9,378  $ 6,472  $ 27,773  $ 19,287 
(1) Includes revenues from products sold for use in mobile handsets, excluding RFFE (radio frequency front-end) components.
(2) Includes all revenues from sales of 4G, 5G sub-6 and 5G millimeter wave RFFE products (a substantial portion of which are sold for use in mobile handsets) and excludes radio frequency transceiver components.
(3) Includes revenues from products sold for use in automobiles, including telematics, connectivity and digital cockpit.
(4) Primarily includes products sold for use in the following industries and applications: consumer (including computing, voice and music and XR), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, transportation and logistics and utilities).
Revenue recognized from performance obligations satisfied in previous periods
Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were as follows (in millions):
Three Months Ended Nine Months Ended
June 26,
2022 (1)
June 27,
2021 (2)
June 26,
2022 (1)
June 27,
2021 (2)
Revenues recognized from previously satisfied performance obligations $ 260  $ 170  $ 578  $ 258 
(1) Primarily related to certain QCT sales-based royalty revenues related to system software, certain QCT customer incentives and QTL royalty revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due).
(2) Primarily related to QCT customer incentives, the release of a variable constraint against revenues not previously allocated to our segment results and QTL royalty revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due).
Customer Concentrations - Revenues Revenues from each customer/licensee that were 10% or greater of total revenues were as follows:
Three Months Ended Nine Months Ended
June 26,
2022
June 27,
2021
June 26,
2022
June 27,
2021
Customer/licensee (w) 22  % 13  % 20  % 14  %
Customer/licensee (x) 17  16  20  22 
Customer/licensee (y) * 16  * 14 
Customer/licensee (z) * 10  * 10 
* Less than 10%
Investment and Other Income, Net
Investment and Other (Expense) Income, Net (in millions)
Three Months Ended Nine Months Ended
June 26,
2022
June 27,
2021
June 26,
2022
June 27,
2021
Interest and dividend income $ 22  $ 21  $ 59  $ 63 
Net (losses) gains on marketable securities (104) 53  (327) 86 
Net gains on other investments 25  97  97  307 
Net (losses) gains on deferred compensation plan assets (80) 38  (110) 115 
Impairment losses on other investments (20) (7) (41) (24)
Net losses on derivative instruments (7) —  (25) (7)
Equity in net (losses) earnings of investees (12) 12 
Net gains (losses) on foreign currency transactions 13  (3) 21  (29)
$ (163) $ 200  $ (321) $ 523