Annual report pursuant to Section 13 and 15(d)

Composition of Certain Financial Statement Items (Tables)

v3.22.2.2
Composition of Certain Financial Statement Items (Tables)
 12 Months Ended
Sep. 25, 2022
Balance Sheet Related Disclosures [Abstract]  
Accounts Receivable
Accounts Receivable (in millions)
September 25,
2022		 September 26,
2021
Trade, net of allowances for doubtful accounts $ 4,175  $ 2,214 
Unbilled 1,435  1,354 
Other 33  11 
$ 5,643  $ 3,579 
Inventories
Inventories (in millions)
September 25,
2022		 September 26,
2021
Raw materials $ 221  $ 267 
Work-in-process 3,329  1,475 
Finished goods 2,791  1,486 
$ 6,341  $ 3,228 
Property, Plant and Equipment
Property, Plant and Equipment (in millions)
September 25,
2022		 September 26,
2021
Land $ 170  $ 172 
Buildings and improvements 1,767  1,642 
Computer equipment and software 1,680  1,483 
Machinery and equipment 7,349  6,420 
Furniture and office equipment 105  94 
Leasehold improvements 369  374 
Construction in progress 330  269 
11,770  10,454 
Less accumulated depreciation and amortization (6,602) (5,895)
$ 5,168  $ 4,559 
Goodwill The following table presents the goodwill allocated to our segments, as described in Note 8, as well as the changes in the carrying amounts of goodwill during fiscal 2022 and 2021 (in millions):
QCT QTL Total
Balance at September 27, 2020 $ 5,605  $ 718  $ 6,323 
Acquisitions 912  5  917 
Foreign currency translation adjustments 6  —  6 
Balance at September 26, 2021 (1) 6,523  723  7,246 
Acquisitions 3,375  12  3,387 
Foreign currency translation adjustments (121) (4) (125)
Balance at September 25, 2022 (1) $ 9,777  $ 731  $ 10,508 
(1) Cumulative goodwill impairments were $812 million at both September 25, 2022 and September 26, 2021.
Intangible Assets
The components of other intangible assets, net were as follows (in millions):
September 25, 2022 September 26, 2021
Gross Carrying
Amount		 Accumulated
Amortization		 Weighted-average amortization period
(years)		 Gross Carrying
Amount		 Accumulated
Amortization		 Weighted-average amortization period
(years)
Technology-based $ 5,517  $ (3,669) 12 $ 5,385  $ (3,971) 11
Other 90  (56) 10 93  (49) 10
$ 5,607  $ (3,725) 10 $ 5,478  $ (4,020) 11
Equity Method and Non-marketable Equity Investments The carrying values of our equity method and non-marketable equity investments are recorded in other assets and were as follows (in millions):
September 25,
2022		 September 26,
2021
Equity method investments $ 189  $ 214 
Non-marketable equity investments 1,105  1,051 
$ 1,294  $ 1,265 
Other Current Liabilities
Other Current Liabilities (in millions)
September 25,
2022		 September 26,
2021
Customer incentives and other customer-related liabilities $ 1,879  $ 1,974 
Accrual for EC fines (Note 7) 245  1,522 
Income taxes payable 634  862 
Other 931  656 
$ 3,689  $ 5,014 
QCT Revenues Disaggregated QCT revenue streams were as follows (in millions):
2022 2021 2020
Handsets (1) $ 25,027  $ 16,830  $ 10,461 
RFFE (2) 4,330  4,158  2,362 
Automotive (3) 1,372  975  644 
IoT (internet of things) (4) 6,948  5,056  3,026 
Total QCT revenues $ 37,677  $ 27,019  $ 16,493 
(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 connectivity, digital cockpit and advanced driver assistance and automated driving.
(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
Revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods were as follows (in millions):
2022 (1) 2021 (2) 2020 (3)
Revenues recognized from previously satisfied performance obligations
 $ 788  $ 283  $ 1,480 
(1) Primarily related to certain QCT sales-based royalty revenues related to system software, certain QCT customer incentives and, to a lesser extent, 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 certain QCT customer incentives, QTL 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) and the release of a variable constraint against revenues not previously allocated to our segment results (Note 8).
(3) Primarily related to licensing revenues recognized in the fourth quarter of fiscal 2020 (a portion of which was attributable to fiscal 2020) resulting from the settlement with Huawei and, to a lesser extent, QTL royalties 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) and certain QCT customer incentives.
Share-based Compensation Expense Total share-based compensation expense, related to all of our share-based awards, was comprised as follows (in millions):
2022 2021 2020
Cost of revenues $ 61  $ 47  $ 34 
Research and development 1,537  1,234  872 
Selling, general and administrative 463  389  306 
Share-based compensation expense before income taxes 2,061  1,670  1,212 
Related income tax benefit (489) (435) (238)
$ 1,572  $ 1,235  $ 974 
Investment and Other Income, net
Investment and Other (Expense) Income, Net (in millions)
2022 2021 2020
Interest and dividend income $ 91  $ 83  $ 156 
Net (losses) gains on marketable securities (363) 427  198 
Net gains on other investments 113  470  108 
Net (losses) gains on deferred compensation plan assets (141) 130  47 
Impairment losses on other investments (47) (33) (405)
Net (losses) gains on derivative instruments (37) (14) 8 
Equity in net (losses) earnings of investees (7) 13  (21)
Net gains (losses) on foreign currency transactions 19  (32) (25)
$ (372) $ 1,044  $ 66