| Revision of Prior Year Financial Statements |
Revision of Prior Period Financial Statements
We revised certain prior period financial statements for an immaterial error related to the recognition of certain royalty revenues of our QTL segment (Note 1). A summary of revisions to our previously reported financial statements presented herein for comparative purposes is included below (in millions, except per share data).
Revised Consolidated Balance Sheet.
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As of September 30, 2018 |
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As reported |
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Adjustment |
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As revised |
Deferred tax assets (non-current) |
$ |
904 |
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$ |
32 |
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$ |
936 |
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Total assets |
32,686 |
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32 |
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32,718 |
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Other current liabilities |
6,825 |
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153 |
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6,978 |
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Total current liabilities |
11,236 |
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153 |
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11,389 |
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Total liabilities |
31,758 |
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153 |
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31,911 |
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Retained earnings |
663 |
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(121 |
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542 |
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Total stockholders’ equity |
928 |
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(121 |
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807 |
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Total liabilities and stockholders’ equity |
32,686 |
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32 |
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32,718 |
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Revised Consolidated Statements of Operations.
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Three Months Ended March 25, 2018 |
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Six Months Ended March 25, 2018 |
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As reported |
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Adjustment |
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As revised |
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As reported |
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Adjustment |
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As revised |
Licensing revenues |
$ |
1,325 |
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$ |
(41 |
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$ |
1,284 |
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$ |
2,690 |
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$ |
(74 |
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$ |
2,616 |
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Total revenues |
5,261 |
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(41 |
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5,220 |
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11,329 |
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(74 |
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11,255 |
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Operating income |
441 |
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(41 |
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400 |
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471 |
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(74 |
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397 |
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Income before income taxes |
358 |
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(41 |
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317 |
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332 |
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(74 |
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258 |
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Income tax benefit (expense) |
5 |
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8 |
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13 |
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(5,922 |
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11 |
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(5,911 |
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Net income (loss) |
363 |
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(33 |
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330 |
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(5,590 |
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(63 |
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(5,653 |
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Basic earnings (loss) per share |
0.25 |
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(0.03 |
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0.22 |
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(3.78 |
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(0.04 |
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(3.82 |
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Diluted earnings (loss) per share |
0.24 |
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(0.02 |
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0.22 |
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(3.78 |
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(0.04 |
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(3.82 |
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Revised Consolidated Statements of Comprehensive Income (Loss).
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Three Months Ended March 25, 2018 |
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Six Months Ended March 25, 2018 |
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As reported |
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Adjustment |
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As revised |
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As reported |
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Adjustment |
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As revised |
Net income (loss) |
$ |
363 |
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$ |
(33 |
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$ |
330 |
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$ |
(5,590 |
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$ |
(63 |
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$ |
(5,653 |
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Total comprehensive income (loss) |
523 |
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(33 |
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490 |
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(5,429 |
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(63 |
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(5,492 |
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Revised Consolidated Statement of Cash Flows.
We revised our condensed consolidated statement of cash flows for the six months ended March 25, 2018 for this correction, which had no impact to net cash provided by operating activities in the period.
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Six Months Ended March 25, 2018 |
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As reported |
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Reclassification adjustment (1) |
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Revision adjustment |
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As revised |
Operating Activities: |
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Net loss |
$ |
(5,590 |
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$ |
— |
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$ |
(63 |
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$ |
(5,653 |
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Income tax provision in excess of (less than) income tax payments |
5,477 |
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— |
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(11 |
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5,466 |
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Interest expense in excess of interest payments |
207 |
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(207 |
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— |
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— |
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Other items, net |
46 |
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6 |
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— |
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52 |
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Other assets |
70 |
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(12 |
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— |
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58 |
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Payroll, benefits and other liabilities |
1,166 |
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213 |
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74 |
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1,453 |
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Net cash provided by operating activities |
2,278 |
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— |
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— |
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2,278 |
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(1) Certain previously reported amounts have been reclassified to conform to the current year presentation.
Revised Segment Information.
QTL segment results were revised for this correction (Note 7), which resulted in a decrease in QTL revenues and EBT (earnings before income taxes) of $41 million for the three months ended March 25, 2018 and $74 million for the six months ended March 25, 2018.
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