Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items

v2.4.0.8
Composition of Certain Financial Statement Items
 3 Months Ended
Dec. 29, 2013
Notes to Financial Statements [Abstract]  
Note 2 - Composition of Certain Financial Statement Items
Note 2 — Composition of Certain Financial Statement Items
Accounts Receivable (in millions)
 
 
 
 
December 29,
2013
 
September 29,
2013
Trade, net of allowances for doubtful accounts of $2 and $2, respectively
$
1,288

 
$
2,066

Long-term contracts
19

 
27

Other
20

 
49

 
$
1,327

 
$
2,142


The decrease in accounts receivable was primarily due to the timing of integrated circuit shipments in the first quarter of fiscal 2014.
Inventories (in millions)
 
 
 
 
December 29,
2013
 
September 29,
2013
Raw materials
$
4

 
$
2

Work-in-process
434

 
631

Finished goods
626

 
669

 
$
1,064

 
$
1,302

 
Property, Plant and Equipment (in millions)
 
 
 
 
December 29, 2013
 
September 29, 2013
Land
$
213

 
$
212

Buildings and improvements
1,598

 
1,733

Computer equipment and software
1,455

 
1,425

Machinery and equipment
2,087

 
2,013

Furniture and office equipment
87

 
87

Leasehold improvements
229

 
218

Construction in progress
193

 
480

 
5,862

 
6,168

Less accumulated depreciation and amortization
(3,300
)
 
(3,173
)
 
$
2,562

 
$
2,995


During the third quarter of fiscal 2012, the Company’s QMT division updated its business plan to focus on licensing its next generation interferometric modulator (IMOD) display technology while directly commercializing only certain IMOD products. In the course of pursuing its licensing model, the Company considered various alternatives for one of its manufacturing facilities in Taiwan. During the first quarter of fiscal 2014, as a result of further discussions with potential buyers and consideration of alternative uses for the separate asset groups that comprise the manufacturing facility, the Company decreased its estimates of expected cash flows from those assets and recorded an impairment charge of $444 million in other operating expenses. The Company also considered whether a triggering event had occurred in the first quarter of fiscal 2014 that would require impairment testing for its remaining QMT assets, including goodwill, and concluded that no such event had occurred as QMT’s licensing business plan does not utilize this manufacturing facility. At December 29, 2013, the carrying values of the QMT division’s goodwill and property, plant and equipment were $133 million and $255 million, respectively.
Other Current Liabilities (in millions)
 
 
 
 
December 29,
2013
 
September 29,
2013
Customer incentives and other customer-related liabilities
$
1,808

 
$
1,706

Other
954

 
613

 
$
2,762

 
$
2,319