-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ve6y/TQF+LKIJBC/K3wRn/eH7cNtoo64847l02WZrYiSKB2CxyxuMiwfSP0H001V eV5uvbmkHspA4j8oIgTWsA== 0000950123-09-072780.txt : 20091222 0000950123-09-072780.hdr.sgml : 20091222 20091222172359 ACCESSION NUMBER: 0000950123-09-072780 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20090927 FILED AS OF DATE: 20091222 DATE AS OF CHANGE: 20091222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUALCOMM INC/DE CENTRAL INDEX KEY: 0000804328 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 953685934 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-19528 FILM NUMBER: 091256122 BUSINESS ADDRESS: STREET 1: 5775 MOREHOUSE DR CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 8585871121 MAIL ADDRESS: STREET 1: 5775 MOREHOUSE DR CITY: SAN DIEGO STATE: CA ZIP: 92121 10-K/A 1 a54714e10vkza.htm 10-K/A e10vkza
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K/A
(Amendment No. 1)
 
(Mark One)
     
þ   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 27, 2009
OR
     
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                      .
Commission file number 0-19528
QUALCOMM Incorporated
(Exact name of registrant as specified in its charter)
 
     
Delaware   95-3685934
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)
     
5775 Morehouse Drive    
San Diego, California   92121-1714
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (858) 587-1121
Securities registered pursuant to section 12(b) of the Act:
     
Title of Each Class   Name of Each Exchange on Which Registered
Common stock, $0.0001 par value   NASDAQ Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act:
None
     Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
YES þ NO o
     Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
YES o NO þ
     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES þ NO o
     Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o
     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o
     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
             
Large accelerated filer þ   Accelerated filer o   Non-accelerated filer o   Smaller reporting company o
        (Do not check if a smaller reporting company)    
     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO þ
 
 

 


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INDEX TO EXHIBITS
SIGNATURES
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT


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     The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of March 29, 2009 was $62,311,546,530. *
     The number of shares outstanding of the registrant’s common stock was 1,670,313,078 as of November 2, 2009.
 
*   Excludes the Common Stock held by executive officers, directors and stockholders whose ownership exceeds 5% of the Common Stock outstanding at March 29, 2009. This calculation does not reflect a determination that such persons are affiliates for any other purposes.

 


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Explanatory Note
     QUALCOMM Incorporated is filing this Amendment No. 1 to its Annual Report on Form 10-K for the fiscal year ended September 27, 2009, filed with the Securities and Exchange Commission on November 5, 2009, for the sole purpose of furnishing in interactive data format Schedule II, “Valuation and Qualifying Accounts,” which was inadvertently omitted from the interactive data submission.
     For reference purposes only, the index to exhibits related to Exhibit 101 (for interactive data files) is set forth below.
INDEX TO EXHIBITS
     These Exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K:
     
Exhibit    
Number   Description
101.INS
  XBRL Instance Document. §
 
   
101.SCH
  XBRL Taxonomy Extension Schema. §
 
   
101.CAL
  XBRL Taxonomy Extension Calculation Linkbase. §
 
   
101.LAB
  XBRL Taxonomy Extension Labels Linkbase. §
 
   
101.PRE
  XBRL Taxonomy Extension Presentation Linkbase. §
 
§   This exhibit is being furnished rather than filed, and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K.

 


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SIGNATURES
     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  QUALCOMM Incorporated
 
 
  By:   /s/ William E. Keitel    
    William E. Keitel,   
    Executive Vice President and Chief Financial Officer   
 
Dated: December 22, 2009

 

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TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$</font></td> <td valign="bottom" width="9%" style="BOR DER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">743</font></font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td> </tr></table> </div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net impairment losses on marketable securities for fiscal 2009 was comprised of total other-than-temporary impairment losses of $747 million less $4 million related to the noncredit portion of losses on debt securities recognized in other comprehens ive income. The net other-than-temporary losses on marketable securities were generally related to depressed securities values caused by the major disruption in U.S. and foreign credit and financial markets.</font></div> </div> <div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Note 1. The Company and Its Significant Accounting Policies</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">The Company. </font>QUALCOMM Incorporated (the Company or QUALCOMM), a Delaware corporation, develops, designs, manufactures and markets digital wireless telecommunications products and services. The Company is a leading developer and supplier of Code Division Multiple Access (CDMA)-b ased integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products to wireless device and infrastructure manufacturers. The Company also manufactures and sells products based upon Orthogonal Frequency Division Multiplexing Access (OFDMA) technology. The Company grants licenses to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products, and receives license fees as well as ongoing royalties based on sales by licensees of wireless telecommunications equipment products incorporating its patented technologies. The Company sells equipment, software and services to transportation and other companies to wireless connect their assets and workforce. The Company provides software products and services for content enablement across a wide variety of platforms and devices for the wireless industry. The Company provides services to wireless operators to delivery multimedia content, including live television, in the United States. The Company also makes strategic investments to promote the worldwide adoption of CDMA products and services for wireless voice and internet data communications.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Principles of Consolidation. </font>The Company&#8217;s consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. The ownership of the other interest holders of consolidated subsidiaries is reflected as minority interest and is not significant. All signif icant intercompany accounts and transactions have been eliminated. Certain of the Company&#8217;s foreign subsidiaries are included in the consolidated financial statements one month in arrears to facilitate the timely inclusion of such entities in the Company&#8217;s consolidated financial statements. The Company is not the primary beneficiary of, nor does it hold a significant variable interest in, any variable interest entity.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Financial Statement Preparation. </font>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company&#8217;s consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company has evaluated subsequent events through the date that the financial statements were issued on November 4, 2009.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style ="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Fiscal Year. </font>The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. The fiscal years ended September 27, 2009 and September 28, 2008 both included 52 weeks. The fiscal year ended September 30, 2007 included 53 weeks.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Revenue Recognition. </font>The Company derives revenues principally from sales of integrated circuit products, royalties and license fees for its intell ectual property, messaging and other services and related hardware sales, software development and licensing and related services, software hosting services and services related to delivery of multimedia content. The timing of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific terms of each arrangement and the nature of the Company&#8217;s deliverables and obligations.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company allocates revenue for transactions that include multiple elements to each unit of accounting based on its relative fair value and recognizes revenue for each unit of accounting when revenue recognition criteria have been met. The price cha rged when the element is sold separately generally determines fair value. When the Company has objective evidence of the fair values of undelivered elements but not delivered elements, the Company allocates revenue first to the fair value of the undelivered elements, and the residual revenue is then allocated to the delivered elements. If the fair value of any undelivered element included in a multiple element arrangement cannot be objectively determined, revenue is deferred until all elements are delivered or services have been performed, or until fair value can objectively be determined for any remaining undelivered elements.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues from sales of the Company&#8217;s products are recognized at the time of shipment, or when title and risk of loss pass to the customer and other criteria for revenue recognition are met, if later. Revenues from providing services, including software hosting services and the delivery of multimedia content, are recognized when earned.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company licenses rights to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Licensees typically pay a license fee in one or more installments and ongoing royalties based on their sales of products incorporating or using the Company&#8217;s licensed intellectual property. License fees are recognized over the estimated period of benefit to the licensee, typically five to fifteen years. The Company earns royalties on such licensed products sold worldwide by its licensees at the time that the licensees&#8217; sales occur. The Company&#8217;s licensees, however, do not report and pay royalties owed for sales in any given quarter until after the conclusion of that quarter. The Company recognizes royalty revenues based on royalties reported by licensees during the quarter and when other revenue recognition criteria are met.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues from long-term contracts are recognized using the percentage-of-completion method of accounting, based on costs incurred compared with total estimated costs. The percentage-of- completion method relies on estimates of total contract revenue and costs. Revenues and profits are subject to revisions as the contract progresses to completion. Revisions in profit estimates are charged or credited to income in the period in which the facts that give rise to the revision become known. If actual contract costs are greater than expected, reduction of contract profit would be required. Estimated contract losses are recognized when determined.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company provides both perpetual and renewable time-based software licenses. Revenues from software license fees are recognized when revenue recognition criteria are met and, if applicable, when vendor-specific objective evidence exists to allocat e the total license fee to elements of multiple-element software arrangements, including post-contract customer support. Post-contract support is recognized ratably over the term of the related contract. When contracts contain multiple elements wherein the only undelivered element is post-contract customer support and vendor-specific objective evidence of the fair value of post-contract customer support does not exist, revenue from the entire arrangement is recognized ratably over the support period. The amount or timing of the Company&#8217;s software license revenue may differ as a result of changes in these judgments or estimates.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company records reductions to revenue for customer incentive pro grams, including special pricing agreements and other volume-related rebate programs, in the same period that the related revenue is recorded. Such reductions to revenue are based on a number of factors, including the contractual provisions of the customer agreements and the Company&#8217;s assumptions related to historical and projected customer sales volumes, market share and inventory levels.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">Unearned revenues consist primarily of fees related to software</font> products, license fees for intellectual property, hardware product sales with continuing performance obligations and billings on uncompleted contracts in excess of incu rred cost and accrued profit.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Concentrations. </font>A significant portion of the Company&#8217;s revenues is concentrated with a limited number of customers as the worldwide market for wireless telecommunications products is dominated by a small number of large corporations. Revenues from two customers of the Company&#8217;s QCT and QTL segments each comprised an aggregate of 18% and 13% of total consolidated revenues in fiscal 2009, compared to 16% and 14% of total consolidated revenues in fiscal 2008 and 13% and 14% of total consolidated revenues in fiscal 2007, respectively. Aggregate d accounts receivable from three customers comprised 48% of gross accounts receivable at September 27, 2009. Aggregated accounts receivable from one customer comprised 60% of gross accounts receivable at September 28, 2008.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues from international customers were approximately 94%, 91% and 87% of total consolidated revenues in fiscal 2009, 2008 and 2007, respectively.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT : bold; FONT-STYLE: italic">Cost of Equipment and Services Revenues. </font>Cost of equipment and services revenues is primarily comprised of the cost of equipment revenues, the cost of messaging and multimedia content delivery services revenues and the cost of development and other services revenues. Cost of equipment revenues consists of the cost of equipment sold, the amortization of certain intangible assets, including license fees and patents, and sustaining engineering costs, including personnel and related costs. Cost of messaging and multimedia content delivery services revenues consists principally of satellite transponder costs, network operations expenses, including personnel and related costs, depreciation, content costs and airtime charges by telecommunications operators. Cost of development and other services revenues primarily includes personnel costs and related expenses.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></d iv> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Shipping and Handling Costs. </font>Costs incurred for shipping and handling are included in cost of equipment and services revenues at the time the related revenue is recognized. Amounts billed to a customer for shipping and handling are reported as revenue.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Research and Development. </font>Cost s incurred in research and development activities are expensed as incurred, except certain software development costs capitalized after technological feasibility of the software is established.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Marketing. </font>Cooperative marketing programs reimburse customers for marketing activities for certain of the Company&#8217;s products and services, subject to defined criteria. Cooperative marketing costs are recorded as selling, general and administrative expenses to the extent that a marketing benefit separate from the revenue transaction can be identified and the cash paid does not exceed the fair value of that marketing bene fit received. Any excess of cash paid over the fair value of the marketing benefit received is recorded as a reduction in revenues in the same period the related revenue is recorded. Cooperative marketing expense is recorded immediately when payments are advanced to the customer or as the costs are incurred by the customer when payments are not advanced.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Income Taxes. </font>The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilit ies. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. The Company includes interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company&#8217;s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.</font></div> <div style="DISPLAY: block; T EXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders&#8217; equity only when realized. A windfall tax benefit occurs when the actual tax benefit realized by the Company upon an employee&#8217;s disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that the Company had recorded. When assessing whether a tax benefit relating to share-based compensation has been realized, the Company follows the tax law ordering method, under which current year share-based compensation deductions are assumed to be utilized before net operating loss carryforwards and other tax attributes.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">& lt;br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Cash Equivalents. </font>The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are comprised of money market funds, certificates of deposit, commercial paper and government agencies&#8217; securities. The carrying amounts approximate fair value due to the short maturities of these instruments.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">< ;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Marketable Securities. </font>The appropriate classification of marketable securities is determined at the time of purchase and reevaluated as of each balance sheet date. The Company classifies available-for-sale securities as current or noncurrent based on the nature of the securities and their availability for use in current operations. Actively traded available-for-sale securities are stated at fair value as determined by the security&#8217;s most recently traded price at the balance sheet date. If securities are not actively traded, fair value is determined using other valuation techniques, such as matrix pricing. The net unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income (loss), net of income tax. The realized gains and losses on marketable securities are determined using the specific identification meth od.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At each balance sheet date, the Company assesses securities in an unrealized loss position to determine whether the unrealized loss is other than temporary. The Company considers factors including: the significance of the decline in value compared to the cost basis, underlying factors contributing to a decline in the prices of securities in a single asset class, how long the market value of the security has been less than its cost basis, the security&#8217;s relative performance versus its peers, sector or asset class, expected market volatility and the market and economy in general, analyst recommendations and price targets, views of external investment managers, news or financial information tha t has been released specific to the investee and the outlook for the overall industry in which the investee operates.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In April 2009, the Financial Accounting Standards Board (FASB) amended the existing guidance on determining whether an impairment for investments in debt securities is other-than-temporary. Effective in the third quarter of fiscal 2009, if the debt security&#8217;s market value is below amortized cost and the Company either intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to investment income (loss) for the entire amount of the impairment. For the remaining debt securities, if an other-than-temporary impairment exists, the Company separates the other-than-temporary impairment into the portion of the loss related to credit factors, or the credit loss portion, and the portion of the loss that is not related to credit factors, or the noncredit loss portion. The credit loss portion is the difference between the amortized cost of the security and the Company&#8217;s best estimate of the present value of the cash flows expected to be collected from the debt security. The noncredit loss portion is the residual amount of the other-than-temporary impairment. The credit loss portion is recorded as a charge to investment income (loss), and the noncredit loss portion is recorded as a separate component of other comprehensive income (loss). Prior to the third quarter of fiscal 2009, the entire other-than-temporary impairment loss was recognized in earnings for all debt securities.</font></div> <div style="D ISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">When calculating the present value of expected cash flows to determine the credit loss portion of the other-than-temporary impairment, the Company estimates the amount and timing of projected cash flows, the probability of default and the timing and amount of recoveries on a security-by-security basis. These calculations use inputs primarily based on observable market data, such as credit default swap spreads, historical default and recovery statistics, rating agency data, credit ratings and other data relevant to analyzing the collectibility of the security. The amortized cost basis of a debt security is adjusted for any credit loss portion of the impairment recorded to earnings. The difference between the new cost basis and cash flows expected to b e collected is accreted to investment income (loss) over the remaining expected life of the security.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities that are accounted for as equity securities include investments in common stock, equity mutual and exchange-traded funds and debt mutual funds. For equity securities, the Company considers the loss relative to the expected volatility and the likelihood of recovery over a reasonable period of time. If events and circumstances indicate that a decline in the value of an equity security has occurred and is other than temporary, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date. Additionally, if the Company has either t he intent to sell the security or does not have both the intent and the ability to hold the equity security until its anticipated recovery, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Allowances for Doubtful Accounts. </font>The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company&#8217;s customers to make required payments. The Company considers the following factors when determining if collection of a fee is reasonably assured: customer credit - -worthiness, past transaction history with the customer, current economic industry trends and changes in customer payment terms. If the Company has no previous experience with the customer, the Company typically obtains reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. If the financial condition of the Company&#8217;s customers was to deteriorate, adversely affecting their ability to make payments, additional allowances would be required.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-IN DENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Inventories. </font>Inventories are valued at the lower of cost or market (replacement cost, not to exceed net realizable value) using the first-in, first-out method. Recoverability of inventory is assessed based on review of committed purchase orders from customers, as well as purchase commitment projections provided by customers, among other things.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Property, Plant a nd Equipment. </font>Property, plant and equipment are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives. Buildings and building improvements are depreciated over 30 years and 15 years, respectively. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining term of the related lease, not to exceed 15 years. Other property, plant and equipment have useful lives ranging from 2 to 25 years. Direct external and internal costs of developing software for internal use are capitalized subsequent to the preliminary stage of development. Leased property meeting certain capital lease criteria is capitalized, and the net present value of the related lease payments is recorded as a liability. Amortization of capital leased assets is recorded using the straight-line method over the shorter of the estimated useful lives or the lease terms. Maintenance, repairs, and minor renewals and betterments are charged to expense as incurred.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon the retirement or disposition of property, plant and equipment, the related cost and accumulated depreciation or amortization are removed, and a gain or loss is recorded.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Derivatives. </font>The Company may enter into foreign currency forward and option contracts to hedge certain foreign currency tr ansactions and probable anticipated foreign currency revenue transactions. Gains and losses arising from changes in the fair values of foreign currency forward and option contracts that are not designated as hedging instruments are recorded in investment income (expense) as gains (losses) on derivative instruments. Gains and losses arising from the effective portion of foreign currency forward and option contracts that are designated as cash-flow hedging instruments are recorded in accumulated other comprehensive income (loss) as gains (losses) on derivative instruments, net of tax. The amounts are subsequently reclassified into revenues in the same period in which the underlying transactions affect the Company&#8217;s earnings. The Company had no outstanding forward contracts at September 27, 2009 and September 28, 2008. The value of the Company&#8217;s foreign currency option contracts recorded in other current assets was $29 million and $56 million at September 27, 2009 and September 28, 2008, respectively, and the value recorded in other current liabilities was $58 million and $19 million at September 27, 2009 and September 28, 2008, respectively, substantially all of which were designated as cash-flow hedging instruments.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In connection with its stock repurchase program, the Company may sell put options that require the Company to repurchase shares of its common stock at fixed prices. The premiums received from put options are recorded as other current liabilities. Changes in the fair value of put options are recorded in investment income (expense) as gains (losses) on derivative instruments. At September 27, 2009 and September 28, 2008, no put options were outstanding.</font>& lt;/div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Goodwill and Other Intangible Assets. </font>Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. 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QUALCOMM Incorporated:</font> On April 17, 2007, Tessera, Inc. filed a patent infringement lawsuit in the United States District Court for the Eastern Division of Texas and a complaint with the United States International Trade Commission (ITC) pursuant to Section 337 of the Tariff Act of 1930 against the Company and other companies, alleging infringement of two patents relating to semiconductor packaging structures and seeking monetary damages and injunctive and other relief. The District Court action is stayed pending resolution of the ITC proceeding. The U.S. Patent and Trademark Office&#8217;s (USPTO) Central Reexamination Unit has issued office actions rejecting all of the asserted patent claim s on the grounds that they are invalid in view of certain prior art and has made these rejections final; Tessera has appealed the rejections to the Board of Appeals and Interferences. On December 1, 2008, the Administrative Law Judge (ALJ) ruled that the patents are valid but not infringed. On May 20, 2009, however, the ITC reversed the ALJ&#8217;s determination that the patents were not infringed and it issued the following remedial orders: (1) a limited exclusion order that bans the Company and the other named respondents from importing into the United States the accused chip packages (except to the extent those products are licensed) and (2) a cease and desist order that prohibits the Company from engaging in certain domestic activities respecting those products. The Company and other respondents have appealed. The ITC declined to stay its decision pending appeal, and the President declined to review the decision. The Company has shifted supply of accused chips for the U.S. market to a lic ensed supplier, Amkor. A licensed source of supply permits the Company to continue to supply the U.S. market without interruption. The appeals court has declined the Company&#8217;s request that it stay enforcement of the orders pending appeal. The subject patents expire on September 24, 2010, at which time the ITC orders will cease to be operative.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Korea Fair Trade Commission Complaint:</font> Two U.S. companies (Texas Instruments and Broadcom) and two South Korean companies (Nextreaming Corp. and Thin Multimedia, Inc.) filed complaints with the Korea Fair Trade Commission (KFTC) alleging t hat certain of the Company&#8217;s business practices violate South Korean anti-trust regulations. On February 17, 2009, the KFTC issued a Case Examiner&#8217;s report setting forth allegations with respect to the lawfulness of certain business practices related to the Company&#8217;s integration of multimedia solutions into its chipsets, rebates and discounts provided to its chipset customers and of certain licensing practices. As a result of its agreement with the Company, in May 2009 Broadcom withdrew its complaint to the KFTC. Hearings before the KFTC commenced on May 27, 2009, and on July 23, 2009 the KFTC announced its ruling, although the written decision has not yet been issued. The KFTC announced that it found the Company to be in violation of South Korean law by offering certain discounts and rebates for purchases of its CDMA chips and that it would levy a fine of at least 260 billion Korean won, as well as order the Company to cease the practices at issue. Subject to the i ssuance and review of the KFTC&#8217;s written decision, the Company intends to appeal the decision. As a result of this announcement, the Company recorded a $230 million charge during fiscal 2009. The Company does not anticipate that the cease and desist remedies ordered will have a material effect on its operations. In July 2009, the KFTC also announced that it would continue its review of the Company&#8217;s integration of multimedia functions into its chipsets, but it has not announced any decisions in that regard. The Company believes that its practices do not violate South Korean competition law, are grounded in sound business practice and are consistent with its customers&#8217; desires.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inlin e; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Japan Fair Trade Commission Complaint</font>: The Japan Fair Trade Commission (JFTC) has received unspecified complaints alleging that the Company&#8217;s business practices are, in some way, a violation of Japanese law. On September 29, 2009, the JFTC issued a Cease and Desist Order (CDO) concluding that the Company&#8217;s Japanese licensees were forced to cross-license patents to the Company on a royalty-free basis and were forced to accept a provision under which they agreed not to assert their essential patents against the Company&#8217;s other licensees who made a similar commitment in their license agreements with the Company. The CDO seeks to require the Company to modify its existing license agreements with Japanese companies to eliminate these provisions while preserving the license of the Company&#8217;s patents to those companies. The Company disagrees with the conclusions that it forced its Japanese licensees to agree to any provision in the parties&#8217; agreements and that those provisions violate Japan&#8217;s Anti-Monopoly Act. The Company intends to invoke its right under Japanese law to an administrative hearing before the JFTC, request that the JFTC suspend the CDO pending a decision following the hearing, and seek a stay of the CDO from the Japanese courts should the JFTC deny the Company&#8217;s request to suspend the CDO.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Other:</font> The Company has been named, along with many other manufacturers of wireless phones, wirel ess operators and industry-related organizations, as a defendant in purported class action lawsuits, and individually filed actions pending in Pennsylvania and Washington D.C., seeking monetary damages arising out of its sale of cellular phones. Two of the cases in which the Company has been named as a defendant have been dismissed by the lower courts and are now on appeal by the plaintiffs.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On August 5, 2009, Panasonic filed an arbitration demand alleging that it does not owe royalties, or owes less royalties, on its WCDMA subscriber units, and that the Company breached the license agreement between the parties as well as certain commitments to standard s setting organizations. The arbitration demand seeks declaratory relief regarding the amount of royalties due and payable by Panasonic, as well as the return of certain royalties it had previously paid. The Company has responded to the arbitration demand, denying the allegations and requesting judgment in its favor on all claims. Although the Company believes Panasonic&#8217;s claims are without merit, it has deferred the recognition of revenue related to WCDMA subscriber unit royalties reported and paid by Panasonic in the fourth quarter of fiscal 2009 because, among other reasons, the matter has been submitted to arbitration for resolution.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In Nove mber 2008, a complaint was filed in San Diego Federal Court on behalf of a purported class of individuals who purchased CDMA devices or service, seeking damages and injunctive relief under federal and/or state antitrust and unfair competition laws and common law as a result of the Company&#8217;s licensing practices. On March 3, 2009, the court granted the Company&#8217;s motion and dismissed the complaint. On April 2, 2009, the plaintiff filed an amended complaint re-asserting some, but not all, of the claims in its original complaint. On August 10, 2009, the court granted the Company&#8217;s motion to dismiss the amended complaint for lack of standing. However, the court may reopen the case in the event an appeals court reverses a decision in an unrelated case involving different parties but raising a similar standing issue.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While there can be no assurance of favorable outcomes, the Company believes the claims made by other parties in the foregoing matters are without merit and will vigorously defend the actions. Other than the amount relating to the <font style="DISPLAY: inline; FONT-STYLE: italic">Korea Fair Trade Commission Complaint</font>, the Company has not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on the Company&#8217;s belief that additional liabilities, while possible, are not probable. Further, any possible range of loss cannot be reasonably estimated at this time. The Company is engaged in numerous other legal actions arising in the ordinary course of its business and, while there can be no assurance, believes that the ultimate outcome of th ese actions will not have a material adverse effect on its operating results, liquidity or financial position.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Litigation Settlement, Patent License and Other Related Items. </font>Since 2005, the Company and Broadcom Corporation (Broadcom) had been engaged in a series of complex legal disputes in various forums, including various claims by Broadcom that alleged infringement by the Company of certain Broadcom patents.&#160; The Company believed that these claims were without merit for a variety of reasons, including the Company's successful preparation and deployment of tec hnical &#8220;design arounds&#8221; (i.e., technical modifications, such as redesigns of the hardware or implementation of new software, to change the structure or function accused of infringing) for certain products where infringement claims had been made as well as findings by USPTO examiners in the reexamination process that the asserted claims of certain of the related patents were invalid.&#160; However, in order to settle the litigation to enable the Company to move forward with its business and focus on restoring its relationships with its customers and carriers, on April 26, 2009, the Company entered into a Settlement and Patent License and Non-Assert Agreement (the Agreement) with Broadcom. Under the Agreement, (i) the companies agreed to terminate all litigation between the parties; (ii) Broadcom agreed to assign certain patent rights to the Company; and (iii) the companies granted certain rights to each other under their respective patent portfolios, including agreements n ot to assert certain patents as well as an exhaustive license to certain patents that were the subject of litigation between the parties and to portions of related patents for integrated circuit and software products. The Company agreed to pay Broadcom $891 million, of which $243 million was paid in fiscal 2009 and the remainder will be paid ratably through April 2013. At September 27, 2009, the remaining liability was $612 million, which approximated the fair value as estimated by discounting the future cash flows using a discount rate that reflects the estimated rate at which the Company could obtain financing with similar terms at September 27, 2009.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">& amp;#160;The determination of the appropriate accounting treatment for the Agreement depends to a large extent upon the ability to reliably value the assets received. This, in turn, requires that significant judgment be exercised in arriving at certain estimates and assumptions, including the selection of appropriate valuation techniques. As the non-assert provision between the parties did not meet the definition of an asset, no value was ascribed to it in the settlement. The elements of the Agreement which potentially represented assets to the Company comprised the assigned patents and the license to certain other patents; accordingly, the Company endeavored to value these assets using a variety of techniques, including the market and income approaches. The Company referred to several different sources of patent pricing information and also considered the projected cost savings from not using its technical design arounds for the remainder of the related patent life and using the patent instead. However, given the difficulty in reliably estimating the value of the individual elements in the Agreement, the Company has treated the Agreement as a single element for accounting purposes. The principal benefits to the Company from entering into the Agreement were (i) the termination of litigation between the parties which allows the Company to avoid future litigation expenses and (ii) the avoidance of future customer disruption; accordingly, the predominant component of the arrangement was the litigation settlement. As a result, the Company recorded a $783 million charge during fiscal 2009, including $35 million related to assets that were initially capitalized. The charge represented the difference between the total payment obligation and the sum of amounts accrued in prior fiscal periods and imputed interest.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPL AY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Indemnifications. </font>In general, the Company does not agree to indemnify third parties for losses sustained from intellectual property infringement. However, the Company is contingently liable under certain product sales, services, license and other agreements to indemnify certain customers against certain types of liability and/or damages arising from qualifying claims of patent infringement by products or services sold or provided by the Company. The Company&#8217;s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by the Company. These indemnification arrangements are not initially measured and recognized at fair v alue because they are deemed to be similar to product warranties in that they relate to claims and/or other actions that could impair the ability of the Company&#8217;s direct or indirect customers to use the Company&#8217;s products or services. Accordingly, the Company records liabilities resulting from the arrangements when they are probable and can be reasonably estimated. Reimbursements under indemnification arrangements have not been material to the Company&#8217;s consolidated financial statements. The Company has not recorded any accrual for contingent liabilities at September 27, 2009 associated with these indemnification arrangements, other than negligible amounts for reimbursement of legal costs, based on the Company&#8217;s belief that additional liabilities, while possible, are not probable. 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Acquisitions</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During fiscal 2009, the Company acquired one business for total cash consideration of $17 million.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During fiscal 2008, the Company acquired five businesses for total cash consideration of $263 million. Goodwill recognized in these transactions, of which $179 million is expected to be deductible for tax purposes, was assigned to the QWI and QCT segments in the amount of $179 million and $21 million, respectively. 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Pursuant to the Rights Agreement, as amended and restated on December 7, 2006, each Right entitles the registered holder to purchase from the Company a one one-thousandth share of Series A Junior Participating Preferred Stock, $0.0001 par value per share, subject to adjustment for subsequent stock splits, at a purchase price of $180. The Rights are exercisable only if a person or group (an Acquiring Person) acquires beneficial ownership of 20% or more of the Company&#8217;s outstanding shares of common stock without approval of the Board of Directors. Upon exercise, holders, other than an Acquiring Person, will have the right, subject to termination, to receive the Company&#8217;s common stock or other securities, cash or other assets having a market value, as defined, equal to twice such purchase price. 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Income before income taxes Total operating expenses Generally recurring costs associated with normal operations includes cost of sales or services, research and development expense and selling, general and administrative expense. Total operating expenses Equipment and services Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and discounts and the aggregate revenue during the period from the sale of goods in the normal course of business, after deducting returns, allowances and discounts. Licensing and royalty fees Revenue earned during the period relating to consideration received from another party for the right to use, but not own, certain of the entity's intangible assets. Licensing arrangements include, but are not limited to, rights to use a patent, copyright, technology, manufacturing process, software or trademark. Licensing fees are generally, but not always, fixed as to amount and not dependent upon the revenue generated by the licensing party. An entity may receive licensing fees for licenses that also generate royalty payments to the entity and revenue earned during the period from the leasing or otherwise lending to a third party the entity's rights or title to certain property. Royalty revenue is derived from a percentage or stated amount of sales proceeds or revenue generated by the third party using the entity's property. Examples of property from which royalties may be derived include patents and oil and mineral rights. Revenues related to non-monetary exchanges The aggregate amount of noncash revenues. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Revenues related to non-monetary exchanges (Gain) Loss on Derivative Instruments The difference between the book value and the sale price of options, swaps, futures, forward contracts, and other derivative instruments. This element refers to the gain (loss) included in earnings. And the increases (decreases) in the market value of derivative instruments, including options, swaps, futures, and forward contracts, which were included in earnings in the period. Increase (Decrease) in payroll, benefits and other liabilities The net change during the reporting period in the aggregate amount of pension, postretirement, workers' compensation, and other similar obligations and liabilities combined with the net change during the reporting period in other expenses incurred but not yet paid. This element should be used when there is no other more specific or appropriate element. Payroll, benefits and other liabilities Other investments and acquisitions, net of cash acquired The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase and the cash outflow associated with other investments held by the entity for investment purposes not otherwise defined in the taxonomy. Change in collateral held under securities lending The net change during the period in the carrying amount (fair value) of securities held that had been pledged by counterparties under financing and lending arrangements, pursuant to which the entity has the right by agreement or custom to sell ore repledge such securities. Change in obligation under securities lending The change in fair value of collateral received by the entity associated with securities borrowed that must be returned if the counterparty fulfills its obligations. The collateral appears on the balance sheet as a liability and has a corresponding asset that appears on the balance sheet called collateral held under securities lending. Operating expenses: Generally recurring costs associated with normal operations includes cost of sales or services, research and development expense and selling, general and administrative expense. Operating Expense Total [Abstract] This item represents investment income derived from investments in debt and equity securities consisting of interest income earned from investments in debt securities and on cash and cash equivalents, dividend income from investments in equity securities, income or expense derived from the amortization of investment related discounts or premiums, respectively, net of related investment expenses, realized gains or losses on the sale or holding of investments in debt and equity securities required to be included in earnings for the period, other than temporary losses related to investments in debt and equity securities, interest expense, gains or losses on derivative instruments, and equity in earnings or losses of investees. Investment Income Net Including Investment (loss) income, net (Note 5) Shares used in per share calculations: This element represents the cost recognized by the entity directly related and attributable to the settlement of litigation. Litigation settlement, patent license and other related items (Note 9) Litigation expense Common stock, shares authorized Common stock, shares outstanding Preferred stock, shares authorized Preferred stock, par value Common stock, shares issued Preferred stock, shares outstanding Common stock, par value Goodwill Dividends payable Note - Basis of Presentation Organization Consolidation And Presentation Of Financial Statements Disclosure Text Block Note 2 - Fair Value Measurements Note 3 - Marketable Securities Property Plant and Equipment Disclosure [Text Block] Property, Plant and Equipment Note 5 - Investment (Loss) Income Note 6 - Income Taxes Note 7 - Capital Stock Note 9 - Commitments and Contingencies Note 10 - Segment Information Accounts Receivable [Text Block] Accounts Receivable Unrealized net gains on securities and derivative instruments, net of income taxes Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities , net of tax effect. 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Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. Reclassification adjustment for net realized gains on securities and derivative instruments included in net income, net of income tax expenses of $87, $48 and $75, respectively Issuance for Employee Stock Purchase and Executive Retirement Plans shares Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. Issuance for Employee Stock Purchase and Executive Retirement Plans (in shares) Issuance for Employee Stock Purchase and Executive Retirement Plans par value Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. Issuance for Employee Stock Purchase and Executive Retirement Plans Statement of Financial Position [Abstract] Statement [Table] Statement [Line Items] Income Statement [Abstract] Statement of Cash Flows [Abstract] Unrealized Gain (Loss) on Investments Income (Loss) From Equity Method Investments Net of Dividends or Distributions Proceeds From Maturities Prepayments and Calls of Held To Maturity Securities Proceeds From Other Equity Exercise of stock options par value Aggregated change in value for stock issued during the period as a result of the exercise of stock options. Exercise of stock options Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, net of income taxes Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, net of income taxes Reclassification adjustment for other-than-temporary losses on marketable securities included in net income, net of income tax benefits of $201 and $130, respectively Noncredit Other-Than-Temporary Impairment Losses and Subsequent Changes in Fair Value Related to Certain Marketable Debt Securities, Net of Income Tax This element represents other-than-temporary impairments on certain debt securities associated with non-credit factors that are recorded in other comprehensive income. Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, net of income tax expenses of $12 Net Unrealized Losses on Other Marketable Securities and Derivative Instruments, Net of Income Tax Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities net of noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Net unrealized gains on other marketable securities and derivative instruments, net of income tax benefits of $5 Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Statement Equity Components [Axis] Equity Component [Domain] Shares Issued Beginning Balance (in shares) Ending Balance (in shares) Stockholders Equity Portion Attributable To Parent Beginning Balance Ending Balance Total stockholders' equity Components of comprehensive income: Statement of Stockholders Equity [Abstract] Other Comprehensive Income Loss Net Of Tax Period Increase Decrease Other comprehensive income, net of income tax benefits of $6 Exercise of stock options (in shares) Tax benefit from exercise of stock options Share-based compensation Repurchase and retirement of common stock Repurchase and retirement of common stock (in shares) Dividends Other Foreign currency translation Cumulative effect of adoption (Note 3) Stockholders Equity Period Increase (Decrease) Stock Issued During Period Shares Period Increase (Decrease) Notes to Financial Statements [Abstract] Note 1 - The Company and Its Significant Accounting Policies Composition of Certain Financial Statement Captions [Text Block] This item represents 1) the disclosure of claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables, 2) the complete disclosure related to inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the e xcess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income, and 3) the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggrega te amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairm ent loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables. Note 4 - Composition of Certain Financial Statement Captions Inventory Disclosure [Text Block] Inventories Goodwill and Intangible Assets Disclosure [Text Block] Goodwill and Other Intangible Assets Note 8 - Employee Benefit Plans Note - Subsequent Event Note 11 - Acquisitions Note 12 - Summarized Quarterly Data (Unaudited) Unrealized net gains (losses) on securities and derivative instruments, income tax (expenses) benefits Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Unrealized Net Gains On Securities And Derivative Instruments Income Taxes Reclassification adjustment for net realized gains on securities and derivative instruments included in net income, income tax expenses Tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period, combined with the net of tax effect of the reclassification adjustment for (1) the previously unrealized holding gain or loss at the date of the transfer for a debt security transferred from the held-to-maturity category to the available-for-sale category. Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. Reclassification Adjustment For Net Realized Gains On Securities And Derivative Instruments Included In Net Income Income Taxes Reclassification adjustment for other-than-temporary losses on marketable securities included in net income, income tax benefits Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, income taxes Reclassification Adjustment For Other Than Temporary Losses On Marketable Securities Include In Net Income Income Taxes This element represents the tax of other-than-temporary impairments on certain debt securities associated with non-credit factors that are recorded in other comprehensive income. Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities, income tax expenses Noncredit Other Than Temporary Impairment Losses And Subsequent Changes In Fair Value Related To Certain Marketable Debt Securities Income Tax Net unrealized gains on other marketable securities and derivative instruments, income tax benefits Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities net of noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Net Unrealized Losses On Other Marketable Securities And Derivative Instruments Income Tax Other comprehensive income, income tax benefits Increase in receivables for settlement of investments Change in receivables related to amounts due to the company for redemptions of money market investments. The cash impact of such redemption requests is presented as an investing activity in the statement of cash flows. Document Information [Line Items] Document Type Amendment Flag Amendment Description Document Period End Date Entity Information [Line Items] Entity Registrant Name Entity Central Index Key Current Fiscal Year End Date Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Net income Net income Comprehensive Income Net Of Tax Total comprehensive income Other Current Liabilities Non-cash portion of interest and dividend income Net Impairment Losses On Marketable Securities And Other Investments Net impairment losses on marketable securities and other investments The amount of other than temporary impairment losses on equity securities, other than temporary impairment related to credit losses on debt securities, and other than temporary impairment losses on debt securities when the entity intends to sell the securities or it is more likely than not that the entity will be required to sell the securities before recovery of its amortized cost basis. 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For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income, and 3) the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intang ible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. 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For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair valu e of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables. 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On December 1, 2008, the Administrative Law Judge (ALJ) ruled that the patents are valid but not infringed. On May 20, 2009, however, the ITC reversed the ALJ&#8217;s determination that the patents were not infringed and it issued the following remedial orders: (1) a limited exclusion order that bans the Company and the other named respondents from importing into the United States the accused chip packages (except to the extent those products are licensed) and (2) a cease and desist order that prohibits the Company from engaging in certain domestic activities respecting those products. The Company and other respondents have appealed. The ITC declined to stay its decision pending appeal, and the President declined to review the decision. The Company has shifted supply of accused chips for the U.S. market to a licensed supplier, Amkor. A licensed source of supply permits the Company to continue to supply the U.S. market without interruption. 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On February 17, 2009, the KFTC issued a Case Examiner&#8217;s report setting forth allegations with respect to the lawfulness of certain business practices related to the Company&#8217;s integration of multimedia solutions into its chipsets, rebates and discounts provided to its chipset customers and of certain licensing practices. As a result of its agreement with the Company, in May 2009 Broadcom withdrew its complaint to the KFTC. Hearings before the KFTC commenced on May 27, 2009, and on July 23, 2009 the KFTC announced its ruling, although the written decision has not yet been issued. The KFTC announced that it found the Company to be in violation of South Korean law by offering certain discounts and rebates for purchases of its CDMA chips and that it would levy a fine of at least 260 billion Korean won, as well as order the Company to cease the practices at issue. Subject to the issuance and review of the KFTC&#8217;s written decision, the Company intends to appeal the decision. As a result of this announcement, the Company recorded a $230 million charge during fiscal 2009. The Company does not anticipate that the cease and desist remedies ordered will have a material effect on its operations. In July 2009, the KFTC also announced that it would continue its review of the Company&#8217;s integration of multimedia functions into its chipsets, but it has not announced any decisions in that regard. 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On September 29, 2009, the JFTC issued a Cease and Desist Order (CDO) concluding that the Company&#8217;s Japanese licensees were forced to cross-license patents to the Company on a royalty-free basis and were forced to accept a provision under which they agreed not to assert their essential patents against the Company&#8217;s other licensees who made a similar commitment in their license agreements with the Company. The CDO seeks to require the Company to modify its existing license agreements with Japanese companies to eliminate these provisions while preserving the license of the Company&#8217;s patents to those companies. The Company disagrees with the conclusions that it forced its Japanese licen sees to agree to any provision in the parties&#8217; agreements and that those provisions violate Japan&#8217;s Anti-Monopoly Act. 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The Company has responded to the arbitration demand, denying the allegations and requesting judgment in its favor on all claims. Although the Company believes Panasonic&#8217;s claims are without merit, it has deferred the recognition of revenue related to WCDMA subscriber unit royalties reported and paid by Panasonic in the fourth quarter of fiscal 2009 because, among other reasons, the matter has been submitted to arbitration for resolution.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In November 2008, a complaint was filed in San Diego Feder al Court on behalf of a purported class of individuals who purchased CDMA devices or service, seeking damages and injunctive relief under federal and/or state antitrust and unfair competition laws and common law as a result of the Company&#8217;s licensing practices. On March 3, 2009, the court granted the Company&#8217;s motion and dismissed the complaint. On April 2, 2009, the plaintiff filed an amended complaint re-asserting some, but not all, of the claims in its original complaint. On August 10, 2009, the court granted the Company&#8217;s motion to dismiss the amended complaint for lack of standing. 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Under the Agreement, (i) the companies agreed to terminate all litigation between the parties; (ii) Broadcom agreed to assign certain patent rights to the Company; and (iii) the companies granted certain rights to each other under their respective patent portfolios, including agreements not to assert certain patents as well as an exhaust ive license to certain patents that were the subject of litigation between the parties and to portions of related patents for integrated circuit and software products. The Company agreed to pay Broadcom $891 million, of which $243 million was paid in fiscal 2009 and the remainder will be paid ratably through April 2013. At September 27, 2009, the remaining liability was $612 million, which approximated the fair value as estimated by discounting the future cash flows using a discount rate that reflects the estimated rate at which the Company could obtain financing with similar terms at September 27, 2009.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;The determination of the appropriate acco unting treatment for the Agreement depends to a large extent upon the ability to reliably value the assets received. This, in turn, requires that significant judgment be exercised in arriving at certain estimates and assumptions, including the selection of appropriate valuation techniques. As the non-assert provision between the parties did not meet the definition of an asset, no value was ascribed to it in the settlement. The elements of the Agreement which potentially represented assets to the Company comprised the assigned patents and the license to certain other patents; accordingly, the Company endeavored to value these assets using a variety of techniques, including the market and income approaches. The Company referred to several different sources of patent pricing information and also considered the projected cost savings from not using its technical design arounds for the remainder of the related patent life and using the patent instead. However, given the difficulty in reliably estimat ing the value of the individual elements in the Agreement, the Company has treated the Agreement as a single element for accounting purposes. The principal benefits to the Company from entering into the Agreement were (i) the termination of litigation between the parties which allows the Company to avoid future litigation expenses and (ii) the avoidance of future customer disruption; accordingly, the predominant component of the arrangement was the litigation settlement. As a result, the Company recorded a $783 million charge during fiscal 2009, including $35 million related to assets that were initially capitalized. 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The Company has not recorded any accrual for contingent liabilities at September 27, 2009 associated with these indemnification arrangements, other than negligible amounts for reimbursement of legal costs, based on the Company&#8217;s belief that additional liabilities, while possible, are not probable. 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FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">(14</font></font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">)</font></td> </tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="88%" style="PADDING-BOTTOM: 4px"> <div style="DISPLAY: block; MARGIN-L EFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Ending balance of credit losses</font></div> </td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$</font></td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">170</font></font></td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left">< font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td> </tr></table> </div> </div> Note 3. Marketable Securities Marketable securities were comprised as follows (in millions): &#160; false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 21 R6.xml IDEA: PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 1.0.0.3 false PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Millions false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 5 3 us-gaap_ComprehensiveIncomeNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 6 4 qcom_NoncreditOtherThanTemporaryImpairmentLossesAndSubsequentChangesInFairValueRelatedToCertainMarketableDebtSecuritiesIncomeTax qcom false na duration monetary This element represents the tax of other-than-temporary impairments on certain debt securities associated with non-credit... false false false false false false false false false 1 true true -12000000 -12 false false 2 true true 0 0 false false 3 true true 0 0 false false This element represents the tax of other-than-temporary impairments on certain debt securities associated with non-credit factors that are recorded in other comprehensive income. No authoritative reference available. false 7 4 qcom_NetUnrealizedLossesOnOtherMarketableSecuritiesAndDerivativeInstrumentsIncomeTax qcom false na duration monetary Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash... false false false false false false false false false 1 false true 5000000 5 false false 2 false true 0 0 false false 3 false true 0 0 false false Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities net of noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. false 8 4 qcom_UnrealizedNetGainsOnSecuritiesAndDerivativeInstrumentsIncomeTaxes qcom false na duration monetary Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash... false false false false false false false false false 1 false true 0 0 false false 2 false true 373000000 373 false false 3 false true -198000000 -198 false false Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. false 9 4 qcom_ReclassificationAdjustmentForNetRealizedGainsOnSecuritiesAndDerivativeInstrumentsIncludedInNetIncomeIncomeTaxes qcom false na duration monetary Tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and... false false false false false false false false false 1 false true -75000000 -75 false false 2 false true -48000000 -48 false false 3 false true -87000000 -87 false false Tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period, combined with the net of tax effect of the reclassification adjustment for (1) the previously unrealized holding gain or loss at the date of the transfer for a debt security transferred from the held-to-maturity category to the available-for-sale category. Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. No authoritative reference available. false 10 4 qcom_ReclassificationAdjustmentForOtherThanTemporaryLossesOnMarketableSecuritiesIncludeInNetIncomeIncomeTaxes qcom false na duration monetary Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, income taxes false false false false false false false false false 1 false true -130000000 -130 false false 2 false true -201000000 -201 false false 3 false true 0 0 false false Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, income taxes No authoritative reference available. false 11 4 us-gaap_OtherComprehensiveIncomeLossTax us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 true true 0 0 false false 2 true true 0 0 false false 3 true true -6000000 -6 false false No definition available. No authoritative reference available. false false 3 7 false Millions UnKnown UnKnown false true XML 22 R5.xml IDEA: CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 1.0.0.3 true CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Millions false 1 $ true false false false Common Stock us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_CommonStockMember us-gaap_StatementEquityComponentsAxis explicitMember u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ true false false false Paid-In Capital us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AdditionalPaidInCapitalMember us-gaap_StatementEquityComponentsAxis explicitMember u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 3 $ true false false false Retained Earnings us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_RetainedEarningsMember us-gaap_StatementEquityComponentsAxis explicitMember u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 4 $ true false false false Accumulated Other Comprehensive Income (Loss) us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedOtherComprehensiveIncomeMember us-gaap_StatementEquityComponentsAxis explicitMember u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 5 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 6 3 us-gaap_SharesIssued us-gaap true na instant shares No definition available. false false false true false false true false false 1 false true 1652000000 1652 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 5 3 us-gaap_StockholdersEquity us-gaap true credit instant monetary No definition available. false false false true false false true false false 1 false false 0 0 true false 2 true true 7242000000 7242 true false 3 true true 6100000000 6100 true false 4 true true 64000000 64 true false 5 true true 13406000000 13406 false false No definition available. No authoritative reference available. false 7 3 us-gaap_ComprehensiveIncomeNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. false 8 4 us-gaap_NetIncomeLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 3303000000 3303 true false 4 false true 0 0 true false 5 false true 3303000000 3303 false false No definition available. No authoritative reference available. false 11 4 qcom_UnrealizedNetGainsOnSecuritiesAndDerivativeInstrumentsNetOfIncomeTaxes qcom false na duration monetary Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 274000000 274 true false 5 false true 274000000 274 false false Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. false 12 4 qcom_ReclassificationAdjustmentForNetRealizedGainsOnSecuritiesAndDerivativeInstrumentsIncludedInNetIncomeNetOfIncomeTaxes qcom false na duration monetary Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true -131000000 -131 true false 5 false true -131000000 -131 false false Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period, combined with the net of tax effect of the reclassification adjustment for (1) the previously unrealized holding gain or loss at the date of the transfer for a debt security transferred from the held-to-maturity category to the available-for-sale category. Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. No authoritative reference available. false 15 4 us-gaap_OtherComprehensiveIncomeLossNetOfTaxPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 30000000 30 true false 5 false true 30000000 30 false false No definition available. No authoritative reference available. false 16 4 us-gaap_ComprehensiveIncomeNetOfTax us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 3476000000 3476 false false No definition available. No authoritative reference available. true 17 3 qcom_ExerciseOfStockOptionsParValue qcom false na duration monetary Aggregated change in value for stock issued during the period as a result of the exercise of stock options. false false false false false false false false false 1 false false 0 0 true false 2 false true 477000000 477 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 477000000 477 false false Aggregated change in value for stock issued during the period as a result of the exercise of stock options. No authoritative reference available. false 18 4 us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 28000000 28 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 19 3 us-gaap_TaxBenefitFromStockOptionsExercised us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 229000000 229 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 229000000 229 false false No definition available. No authoritative reference available. false 20 3 qcom_IssuanceForEmployeeStockPurchaseAndExecutiveRetirementPlansParValue qcom false na duration monetary Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive... false false false false false false false false false 1 false false 0 0 true false 2 false true 88000000 88 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 88000000 88 false false Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. No authoritative reference available. false 21 4 qcom_IssuanceForEmployeeStockPurchaseAndExecutiveRetirementPlansShares qcom false na duration shares Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching... false false false false false false false false false 1 false true 3000000 3 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. No authoritative reference available. false 22 3 us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 485000000 485 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 485000000 485 false false No definition available. No authoritative reference available. false 23 3 us-gaap_StockRepurchasedAndRetiredDuringPeriodValue us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false true -1459000000 -1459 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true -1459000000 -1459 false false No definition available. No authoritative reference available. false 24 4 us-gaap_StockRepurchasedAndRetiredDuringPeriodShares us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true -37000000 -37 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 25 3 us-gaap_Dividends us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true -862000000 -862 true false 4 false true 0 0 true false 5 false true -862000000 -862 false false No definition available. No authoritative reference available. false 27 3 us-gaap_StockholdersEquityOther us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true -5000000 -5 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true -5000000 -5 false false No definition available. No authoritative reference available. false 28 3 us-gaap_StockholdersEquity us-gaap true credit instant monetary No definition available. false false false true false false false true false 1 false false 0 0 true false 2 false true 7057000000 7057 true false 3 false true 8541000000 8541 true false 4 false true 237000000 237 true false 5 false true 15835000000 15835 false false No definition available. No authoritative reference available. false 29 3 us-gaap_SharesIssued us-gaap true na instant shares No definition available. false false false true false false false true false 1 false true 1646000000 1646 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 7 3 us-gaap_ComprehensiveIncomeNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. false 8 4 us-gaap_NetIncomeLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 3160000000 3160 true false 4 false true 0 0 true false 5 false true 3160000000 3160 false false No definition available. No authoritative reference available. false 11 4 qcom_UnrealizedNetGainsOnSecuritiesAndDerivativeInstrumentsNetOfIncomeTaxes qcom false na duration monetary Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true -738000000 -738 true false 5 false true -738000000 -738 false false Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. false 12 4 qcom_ReclassificationAdjustmentForNetRealizedGainsOnSecuritiesAndDerivativeInstrumentsIncludedInNetIncomeNetOfIncomeTaxes qcom false na duration monetary Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true -72000000 -72 true false 5 false true -72000000 -72 false false Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period, combined with the net of tax effect of the reclassification adjustment for (1) the previously unrealized holding gain or loss at the date of the transfer for a debt security transferred from the held-to-maturity category to the available-for-sale category. Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. No authoritative reference available. false 13 4 qcom_ReclassificationAdjustmentForOtherThanTemporaryLossesOnMarketableSecuritiesIncludeInNetIncomeNetOfIncomeTaxes qcom false na duration monetary Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, net of income... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 301000000 301 true false 5 false true 301000000 301 false false Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, net of income taxes No authoritative reference available. false 14 4 us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true -12000000 -12 true false 5 false true -12000000 -12 false false No definition available. No authoritative reference available. false 16 4 us-gaap_ComprehensiveIncomeNetOfTax us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 2639000000 2639 false false No definition available. No authoritative reference available. true 17 3 qcom_ExerciseOfStockOptionsParValue qcom false na duration monetary Aggregated change in value for stock issued during the period as a result of the exercise of stock options. false false false false false false false false false 1 false false 0 0 true false 2 false true 1070000000 1070 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 1070000000 1070 false false Aggregated change in value for stock issued during the period as a result of the exercise of stock options. No authoritative reference available. false 18 4 us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 49000000 49 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 19 3 us-gaap_TaxBenefitFromStockOptionsExercised us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 385000000 385 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 385000000 385 false false No definition available. No authoritative reference available. false 20 3 qcom_IssuanceForEmployeeStockPurchaseAndExecutiveRetirementPlansParValue qcom false na duration monetary Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive... false false false false false false false false false 1 false false 0 0 true false 2 false true 117000000 117 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 117000000 117 false false Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. No authoritative reference available. false 21 4 qcom_IssuanceForEmployeeStockPurchaseAndExecutiveRetirementPlansShares qcom false na duration shares Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching... false false false false false false false false false 1 false true 4000000 4 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. No authoritative reference available. false 22 3 us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 544000000 544 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 544000000 544 false false No definition available. No authoritative reference available. false 23 3 us-gaap_StockRepurchasedAndRetiredDuringPeriodValue us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false true -1666000000 -1666 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true -1666000000 -1666 false false No definition available. No authoritative reference available. false 24 4 us-gaap_StockRepurchasedAndRetiredDuringPeriodShares us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true -43000000 -43 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 25 3 us-gaap_Dividends us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true -982000000 -982 true false 4 false true 0 0 true false 5 false true -982000000 -982 false false No definition available. No authoritative reference available. false 27 3 us-gaap_StockholdersEquityOther us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 4000000 4 true false 3 false true -2000000 -2 true false 4 false true 0 0 true false 5 false true 2000000 2 false false No definition available. No authoritative reference available. false 28 3 us-gaap_StockholdersEquity us-gaap true credit instant monetary No definition available. false false false true false false false true false 1 false false 0 0 true false 2 false true 7511000000 7511 true false 3 false true 10717000000 10717 true false 4 false true -284000000 -284 true false 5 false true 17944000000 17944 false false No definition available. No authoritative reference available. false 29 3 us-gaap_SharesIssued us-gaap true na instant shares No definition available. false false false true false false false true false 1 false true 1656000000 1656 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 7 3 us-gaap_ComprehensiveIncomeNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. false 8 4 us-gaap_NetIncomeLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 1592000000 1592 true false 4 false true 0 0 true false 5 false true 1592000000 1592 false false No definition available. No authoritative reference available. false 9 4 qcom_NoncreditOtherThanTemporaryImpairmentLossesAndSubsequentChangesInFairValueRelatedToCertainMarketableDebtSecuritiesNetOfIncomeTax qcom false na duration monetary This element represents other-than-temporary impairments on certain debt securities associated with non-credit factors that... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 135000000 135 true false 5 false true 135000000 135 false false This element represents other-than-temporary impairments on certain debt securities associated with non-credit factors that are recorded in other comprehensive income. No authoritative reference available. false 10 4 qcom_NetUnrealizedLossesOnOtherMarketableSecuritiesAndDerivativeInstrumentsNetOfIncomeTax qcom false na duration monetary Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 261000000 261 true false 5 false true 261000000 261 false false Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities net of noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. false 12 4 qcom_ReclassificationAdjustmentForNetRealizedGainsOnSecuritiesAndDerivativeInstrumentsIncludedInNetIncomeNetOfIncomeTaxes qcom false na duration monetary Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true -93000000 -93 true false 5 false true -93000000 -93 false false Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period, combined with the net of tax effect of the reclassification adjustment for (1) the previously unrealized holding gain or loss at the date of the transfer for a debt security transferred from the held-to-maturity category to the available-for-sale category. Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. No authoritative reference available. false 13 4 qcom_ReclassificationAdjustmentForOtherThanTemporaryLossesOnMarketableSecuritiesIncludeInNetIncomeNetOfIncomeTaxes qcom false na duration monetary Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, net of income... false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 613000000 613 true false 5 false true 613000000 613 false false Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, net of income taxes No authoritative reference available. false 14 4 us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true -25000000 -25 true false 5 false true -25000000 -25 false false No definition available. No authoritative reference available. false 16 4 us-gaap_ComprehensiveIncomeNetOfTax us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 0 0 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 2483000000 2483 false false No definition available. No authoritative reference available. true 17 3 qcom_ExerciseOfStockOptionsParValue qcom false na duration monetary Aggregated change in value for stock issued during the period as a result of the exercise of stock options. false false false false false false false false false 1 false false 0 0 true false 2 false true 534000000 534 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 534000000 534 false false Aggregated change in value for stock issued during the period as a result of the exercise of stock options. No authoritative reference available. false 18 4 us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 18000000 18 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false No definition available. No authoritative reference available. false 19 3 us-gaap_TaxBenefitFromStockOptionsExercised us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 true false 2 false true 34000000 34 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 34000000 34 false false No definition available. No authoritative reference available. false 20 3 qcom_IssuanceForEmployeeStockPurchaseAndExecutiveRetirementPlansParValue qcom false na duration monetary Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive... false false false false false false false false false 1 false false 0 0 true false 2 false true 114000000 114 true false 3 false true 0 0 true false 4 false true 0 0 true false 5 false true 114000000 114 false false Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. No authoritative reference available. false 21 4 qcom_IssuanceForEmployeeStockPurchaseAndExecutiveRetirementPlansShares qcom false na duration shares Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching... false false false false false false false false false 1 false true 4000000 4 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. 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The amount of other than temporary impairment losses on equity securities, other than temporary impairment related to credit losses on debt securities, and other than temporary impairment losses on debt securities when the entity intends to sell the securities or it is more likely than not that the entity will be required to sell the securities before recovery of its amortized cost basis. Additionally, this item includes other than temporary impairment losses recognized during the period on investments accounted for under the cost method of accounting. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and discounts and the aggregate revenue during the period from the sale of goods in the normal course of business, after deducting returns, allowances and discounts. No authoritative reference available. No authoritative reference available. No authoritative reference available. Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities net of noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The change in fair value of collateral received by the entity associated with securities borrowed that must be returned if the counterparty fulfills its obligations. The collateral appears on the balance sheet as a liability and has a corresponding asset that appears on the balance sheet called collateral held under securities lending. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. This item represents investment income derived from investments in debt and equity securities consisting of interest income earned from investments in debt securities and on cash and cash equivalents, dividend income from investments in equity securities, income or expense derived from the amortization of investment related discounts or premiums, respectively, net of related investment expenses, realized gains or losses on the sale or holding of investments in debt and equity securities required to be included in earnings for the period, other than temporary losses related to investments in debt and equity securities, interest expense, gains or losses on derivative instruments, and equity in earnings or losses of investees. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. No authoritative reference available. No authoritative reference available. Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities net of noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain marketable debt securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. Change in receivables related to amounts due to the company for redemptions of money market investments. The cash impact of such redemption requests is presented as an investing activity in the statement of cash flows. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Revenue earned during the period relating to consideration received from another party for the right to use, but not own, certain of the entity's intangible assets. Licensing arrangements include, but are not limited to, rights to use a patent, copyright, technology, manufacturing process, software or trademark. Licensing fees are generally, but not always, fixed as to amount and not dependent upon the revenue generated by the licensing party. An entity may receive licensing fees for licenses that also generate royalty payments to the entity and revenue earned during the period from the leasing or otherwise lending to a third party the entity's rights or title to certain property. Royalty revenue is derived from a percentage or stated amount of sales proceeds or revenue generated by the third party using the entity's property. Examples of property from which royalties may be derived include patents and oil and mineral rights. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Generally recurring costs associated with normal operations includes cost of sales or services, research and development expense and selling, general and administrative expense. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. This element represents the tax of other-than-temporary impairments on certain debt securities associated with non-credit factors that are recorded in other comprehensive income. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. This item represents 1) the disclosure of claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables, 2) the complete disclosure related to inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income, and 3) the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible asse ts), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the ag gregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Sum of operating profit and nonoperating income (expense) before income taxes incuding income (loss) from equity method investments. No authoritative reference available. Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, tax effect, combined with the appreciation or loss in value (before reclassification adjustment) of the total of unsold securities , net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. This element represents other-than-temporary impairments on certain debt securities associated with non-credit factors that are recorded in other comprehensive income. No authoritative reference available. No authoritative reference available. No authoritative reference available. The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase and the cash outflow associated with other investments held by the entity for investment purposes not otherwise defined in the taxonomy. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The net change during the period in the carrying amount (fair value) of securities held that had been pledged by counterparties under financing and lending arrangements, pursuant to which the entity has the right by agreement or custom to sell ore repledge such securities. No authoritative reference available. No authoritative reference available. No authoritative reference available. Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period, combined with the net of tax effect of the reclassification adjustment for (1) the previously unrealized holding gain or loss at the date of the transfer for a debt security transferred from the held-to-maturity category to the available-for-sale category. Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. No authoritative reference available. No authoritative reference available. No authoritative reference available. Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, net of income taxes No authoritative reference available. No authoritative reference available. No authoritative reference available. Aggregate change in value for stock issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. No authoritative reference available. No authoritative reference available. No authoritative reference available. Aggregated change in value for stock issued during the period as a result of the exercise of stock options. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period, combined with the net of tax effect of the reclassification adjustment for (1) the previously unrealized holding gain or loss at the date of the transfer for a debt security transferred from the held-to-maturity category to the available-for-sale category. Also includes the previously unrealized gain or loss at the date of transfer for a debt security transferred from the available-for-sale category to the held-to-maturity category; and (2) the previously unrealized gains or losses realized upon the sale of securities. No authoritative reference available. No authoritative reference available. No authoritative reference available. The aggregate amount of noncash revenues. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. No authoritative reference available. No authoritative reference available. No authoritative reference available. The net change during the reporting period in the aggregate amount of pension, postretirement, workers' compensation, and other similar obligations and liabilities combined with the net change during the reporting period in other expenses incurred but not yet paid. This element should be used when there is no other more specific or appropriate element. No authoritative reference available. This element represents the cost recognized by the entity directly related and attributable to a fine to be levied by the Korea Fair Trade Commission. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. This element represents the cost recognized by the entity directly related and attributable to the settlement of litigation. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Number of shares issued during the period as a result of the employee stock purchase plan and executive retirement matching contribution plan. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Reclassification adjustment for other-than-temporary losses on marketable securities include in net income, income taxes No authoritative reference available. XML 24 R21.xml IDEA: Entity Information 1.0.0.3 false Entity Information (USD $) false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 2 0 dei_EntityInformationLineItems dei false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 3 1 dei_EntityRegistrantName dei false na duration normalizedstring No definition available. false false false false false false false false false 1 false false 0 0 QUALCOMM INC/DE QUALCOMM INC/DE false false 2 false false 0 0 false false No definition available. 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No authoritative reference available. false false 2 10 false NoRounding NoRounding UnKnown false true XML 25 R13.xml IDEA: Capital Stock 1.0.0.3 false Capital Stock false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 2 0 qcom_NotesToFinancialStatementsAbstract qcom false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_StockholdersEquityNoteDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Note 7. Capital Stock</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Preferred Stock. </font>The Company has 8,000,000 shares of preferred stock authorized for issuance in one or more series, at a par value of $0.0001 per share. In conjunction with the distribution of preferred share purchase rights, 4,000,000 shares of preferred stock are designated as Series A Junior Participating Preferred Stock, a nd such shares are reserved for issuance upon exercise of the preferred share purchase rights. At September 27, 2009 and September 28, 2008, no shares of preferred stock were outstanding.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Preferred Share Purchase Rights Agreement. </font>The Company has a Preferred Share Purchase Rights Agreement (Rights Agreement) to protect stockholders&#8217; interests in the event of a proposed takeover of the Company. Under the original Rights Agreement, adopted on September 26, 1995, the Company declared a dividend of one preferred share purchase right (a Right) for each share of the Company&#8217;s c ommon stock outstanding. Pursuant to the Rights Agreement, as amended and restated on December 7, 2006, each Right entitles the registered holder to purchase from the Company a one one-thousandth share of Series A Junior Participating Preferred Stock, $0.0001 par value per share, subject to adjustment for subsequent stock splits, at a purchase price of $180. The Rights are exercisable only if a person or group (an Acquiring Person) acquires beneficial ownership of 20% or more of the Company&#8217;s outstanding shares of common stock without approval of the Board of Directors. Upon exercise, holders, other than an Acquiring Person, will have the right, subject to termination, to receive the Company&#8217;s common stock or other securities, cash or other assets having a market value, as defined, equal to twice such purchase price. The Rights, which expire on September 25, 2015, are redeemable in whole, but not in part, at the Company&#8217;s option prior to the time such Rights are tri ggered for a price of $0.001 per Right.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Stock Repurchase Program</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">.</font> On March 11, 2008, the Company announced that it had been authorized to repurchase up to $2.0 billion of the Company&#8217;s common stock. The stock repurchase program has no expiration date. When stock is repurchased and retired, the amount paid in excess of par value is recorded to paid-in capital. During fiscal 2009, 2008 and 2007, the Company repurchased and retired 8,920,000, 42,616,000 and 37,263,000 shares of common stock, respec tively, for $284 million, $1.7 billion and $1.5 billion, respectively, before commissions and excluding $14 million and $9 million of premiums received related to put options that were exercised in fiscal 2008 and 2007, respectively. At September 27, 2009, approximately $1.7 billion remained authorized for repurchase under the Company&#8217;s stock repurchase program.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In connection with the Company&#8217;s stock repurchase program, the Company sold put options on its own stock during fiscal 2007. At September 27, 2009 and September 28, 2008, no put options remained outstanding. 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The Company and Its Significant Accounting Policies</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">The Company. </font>QUALCOMM Incorporated (the Company or QUALCOMM), a Delaware corporation, develops, designs, manufactures and markets digital wireless telecommunications products and services. The Company is a leading developer and supplier of Code Division Multiple Access (CDMA)-based integrated circuits and system softwar e for wireless voice and data communications, multimedia functions and global positioning system products to wireless device and infrastructure manufacturers. The Company also manufactures and sells products based upon Orthogonal Frequency Division Multiplexing Access (OFDMA) technology. The Company grants licenses to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products, and receives license fees as well as ongoing royalties based on sales by licensees of wireless telecommunications equipment products incorporating its patented technologies. The Company sells equipment, software and services to transportation and other companies to wireless connect their assets and workforce. The Company provides software products and services for content enablement across a wide variety of platforms and devices for the wireless industry. The Company provides services to wireless operators to delivery multimedia content, including live television, in the United States. The Company also makes strategic investments to promote the worldwide adoption of CDMA products and services for wireless voice and internet data communications.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Principles of Consolidation. </font>The Company&#8217;s consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. The ownership of the other interest holders of consolidated subsidiaries is reflected as minority interest and is not significant. All significant intercompany accounts and transactio ns have been eliminated. Certain of the Company&#8217;s foreign subsidiaries are included in the consolidated financial statements one month in arrears to facilitate the timely inclusion of such entities in the Company&#8217;s consolidated financial statements. The Company is not the primary beneficiary of, nor does it hold a significant variable interest in, any variable interest entity.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Financial Statement Preparation. </font>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and a ssumptions that affect the reported amounts and the disclosure of contingent amounts in the Company&#8217;s consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company has evaluated subsequent events through the date that the financial statements were issued on November 4, 2009.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FA MILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Fiscal Year. </font>The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. The fiscal years ended September 27, 2009 and September 28, 2008 both included 52 weeks. The fiscal year ended September 30, 2007 included 53 weeks.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Revenue Recognition. </font>The Company derives revenues principally from sales of integrated circuit products, royalties and license fees for its intellectual property, messaging and other servi ces and related hardware sales, software development and licensing and related services, software hosting services and services related to delivery of multimedia content. The timing of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific terms of each arrangement and the nature of the Company&#8217;s deliverables and obligations.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company allocates revenue for transactions that include multiple elements to each unit of accounting based on its relative fair value and recognizes revenue for each unit of accounting when revenue recognition criteria have been met. The price charged when the element is sold separately ge nerally determines fair value. When the Company has objective evidence of the fair values of undelivered elements but not delivered elements, the Company allocates revenue first to the fair value of the undelivered elements, and the residual revenue is then allocated to the delivered elements. If the fair value of any undelivered element included in a multiple element arrangement cannot be objectively determined, revenue is deferred until all elements are delivered or services have been performed, or until fair value can objectively be determined for any remaining undelivered elements.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues from sales of the Company&#8217;s products are recognized at the time of shipment, or when title and risk o f loss pass to the customer and other criteria for revenue recognition are met, if later. Revenues from providing services, including software hosting services and the delivery of multimedia content, are recognized when earned.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company licenses rights to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Licensees typically pay a license fee in one or more installments and ongoing royalties based on their sales of products incorporating or using the Company&#8217;s licensed intellectual property. License fees are recognized over the estimated period of benefit to the license e, typically five to fifteen years. The Company earns royalties on such licensed products sold worldwide by its licensees at the time that the licensees&#8217; sales occur. The Company&#8217;s licensees, however, do not report and pay royalties owed for sales in any given quarter until after the conclusion of that quarter. The Company recognizes royalty revenues based on royalties reported by licensees during the quarter and when other revenue recognition criteria are met.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues from long-term contracts are recognized using the percentage-of-completion method of accounting, based on costs incurred compared with total estimated costs. The percentage-of-completion method relies on estimates of to tal contract revenue and costs. Revenues and profits are subject to revisions as the contract progresses to completion. Revisions in profit estimates are charged or credited to income in the period in which the facts that give rise to the revision become known. If actual contract costs are greater than expected, reduction of contract profit would be required. Estimated contract losses are recognized when determined.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company provides both perpetual and renewable time-based software licenses. Revenues from software license fees are recognized when revenue recognition criteria are met and, if applicable, when vendor-specific objective evidence exists to allocate the total license fee to elements of mult iple-element software arrangements, including post-contract customer support. Post-contract support is recognized ratably over the term of the related contract. When contracts contain multiple elements wherein the only undelivered element is post-contract customer support and vendor-specific objective evidence of the fair value of post-contract customer support does not exist, revenue from the entire arrangement is recognized ratably over the support period. The amount or timing of the Company&#8217;s software license revenue may differ as a result of changes in these judgments or estimates.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company records reductions to revenue for customer incentive programs, including special pricing agreement s and other volume-related rebate programs, in the same period that the related revenue is recorded. Such reductions to revenue are based on a number of factors, including the contractual provisions of the customer agreements and the Company&#8217;s assumptions related to historical and projected customer sales volumes, market share and inventory levels.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">Unearned revenues consist primarily of fees related to software</font> products, license fees for intellectual property, hardware product sales with continuing performance obligations and billings on uncompleted contracts in excess of incurred cost and accrued profit.</font> </div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Concentrations. </font>A significant portion of the Company&#8217;s revenues is concentrated with a limited number of customers as the worldwide market for wireless telecommunications products is dominated by a small number of large corporations. Revenues from two customers of the Company&#8217;s QCT and QTL segments each comprised an aggregate of 18% and 13% of total consolidated revenues in fiscal 2009, compared to 16% and 14% of total consolidated revenues in fiscal 2008 and 13% and 14% of total consolidated revenues in fiscal 2007, respectively. Aggregated accounts receivable from three customers comprised 48% of gross accounts receivable at September 27, 2009. Aggregated accounts receivable from one customer comprised 60% of gross accounts receivable at September 28, 2008.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues from international customers were approximately 94%, 91% and 87% of total consolidated revenues in fiscal 2009, 2008 and 2007, respectively.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Cost of Equi pment and Services Revenues. </font>Cost of equipment and services revenues is primarily comprised of the cost of equipment revenues, the cost of messaging and multimedia content delivery services revenues and the cost of development and other services revenues. Cost of equipment revenues consists of the cost of equipment sold, the amortization of certain intangible assets, including license fees and patents, and sustaining engineering costs, including personnel and related costs. Cost of messaging and multimedia content delivery services revenues consists principally of satellite transponder costs, network operations expenses, including personnel and related costs, depreciation, content costs and airtime charges by telecommunications operators. Cost of development and other services revenues primarily includes personnel costs and related expenses.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Shipping and Handling Costs. </font>Costs incurred for shipping and handling are included in cost of equipment and services revenues at the time the related revenue is recognized. Amounts billed to a customer for shipping and handling are reported as revenue.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Research and Development. </font>Costs incurred in research and development acti vities are expensed as incurred, except certain software development costs capitalized after technological feasibility of the software is established.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Marketing. </font>Cooperative marketing programs reimburse customers for marketing activities for certain of the Company&#8217;s products and services, subject to defined criteria. Cooperative marketing costs are recorded as selling, general and administrative expenses to the extent that a marketing benefit separate from the revenue transaction can be identified and the cash paid does not exceed the fair value of that marketing benefit received. Any excess of cash paid over the fair value of the marketing benefit received is recorded as a reduction in revenues in the same period the related revenue is recorded. Cooperative marketing expense is recorded immediately when payments are advanced to the customer or as the costs are incurred by the customer when payments are not advanced.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Income Taxes. </font>The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. The Company includes interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company&#8217;s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> ; <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders&#8217; equity only when realized. A windfall tax benefit occurs when the actual tax benefit realized by the Company upon an employee&#8217;s disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that the Company had recorded. When assessing whether a tax benefit relating to share-based compensation has been realized, the Company follows the tax law ordering method, under which current year share-based compensation deductions are assumed to be utilized before net operating loss carryforwards and other tax attributes.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style ="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Cash Equivalents. </font>The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents are comprised of money market funds, certificates of deposit, commercial paper and government agencies&#8217; securities. The carrying amounts approximate fair value due to the short maturities of these instruments.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Marketable Securities. </font>The appropriate classification of marketable securities is determined at the time of purchase and reevaluated as of each balance sheet date. The Company classifies available-for-sale securities as current or noncurrent based on the nature of the securities and their availability for use in current operations. Actively traded available-for-sale securities are stated at fair value as determined by the security&#8217;s most recently traded price at the balance sheet date. If securities are not actively traded, fair value is determined using other valuation techniques, such as matrix pricing. The net unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income (loss), net of income tax. The realized gains and losses on marketable securities are determined using the specific identification method.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At each balance sheet date, the Company assesses securities in an unrealized loss position to determine whether the unrealized loss is other than temporary. The Company considers factors including: the significance of the decline in value compared to the cost basis, underlying factors contributing to a decline in the prices of securities in a single asset class, how long the market value of the security has been less than its cost basis, the security&#8217;s relative performance versus its peers, sector or asset class, expected market volatility and the market and economy in general, analyst recommendations and price targets, views of external investment managers, news or financial information that has been released specific to the invest ee and the outlook for the overall industry in which the investee operates.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In April 2009, the Financial Accounting Standards Board (FASB) amended the existing guidance on determining whether an impairment for investments in debt securities is other-than-temporary. Effective in the third quarter of fiscal 2009, if the debt security&#8217;s market value is below amortized cost and the Company either intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to investment income (loss) for the entire amount of the impairment. For the remaining debt securit ies, if an other-than-temporary impairment exists, the Company separates the other-than-temporary impairment into the portion of the loss related to credit factors, or the credit loss portion, and the portion of the loss that is not related to credit factors, or the noncredit loss portion. The credit loss portion is the difference between the amortized cost of the security and the Company&#8217;s best estimate of the present value of the cash flows expected to be collected from the debt security. The noncredit loss portion is the residual amount of the other-than-temporary impairment. The credit loss portion is recorded as a charge to investment income (loss), and the noncredit loss portion is recorded as a separate component of other comprehensive income (loss). Prior to the third quarter of fiscal 2009, the entire other-than-temporary impairment loss was recognized in earnings for all debt securities.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">When calculating the present value of expected cash flows to determine the credit loss portion of the other-than-temporary impairment, the Company estimates the amount and timing of projected cash flows, the probability of default and the timing and amount of recoveries on a security-by-security basis. These calculations use inputs primarily based on observable market data, such as credit default swap spreads, historical default and recovery statistics, rating agency data, credit ratings and other data relevant to analyzing the collectibility of the security. The amortized cost basis of a debt security is adjusted for any credit loss portion of the impairment recorded to earnings. The difference between the new cost basis and cash flows expected to be collected is accreted to investment inco me (loss) over the remaining expected life of the security.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities that are accounted for as equity securities include investments in common stock, equity mutual and exchange-traded funds and debt mutual funds. For equity securities, the Company considers the loss relative to the expected volatility and the likelihood of recovery over a reasonable period of time. If events and circumstances indicate that a decline in the value of an equity security has occurred and is other than temporary, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date. Additionally, if the Company has either the intent to sell the security or does not have both the intent and the ability to hold the equity security until its anticipated recovery, the Company records a charge to investment income (loss) for the difference between fair value and cost at the balance sheet date.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Allowances for Doubtful Accounts. </font>The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company&#8217;s customers to make required payments. The Company considers the following factors when determining if collection of a fee is reasonably assured: customer credit-worthiness, past transaction history with the customer, current economic industry trends and changes in customer payment terms. If the Company has no previous experience with the customer, the Company typically obtains reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. If the financial condition of the Company&#8217;s customers was to deteriorate, adversely affecting their ability to make payments, additional allowances would be required.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left" ><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Inventories. </font>Inventories are valued at the lower of cost or market (replacement cost, not to exceed net realizable value) using the first-in, first-out method. Recoverability of inventory is assessed based on review of committed purchase orders from customers, as well as purchase commitment projections provided by customers, among other things.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Property, Plant and Equipment. </font>Property, plant and equipment are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives. Buildings and building improvements are depreciated over 30 years and 15 years, respectively. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining term of the related lease, not to exceed 15 years. Other property, plant and equipment have useful lives ranging from 2 to 25 years. Direct external and internal costs of developing software for internal use are capitalized subsequent to the preliminary stage of development. Leased property meeting certain capital lease criteria is capitalized, and the net present value of the related lease payments is recorded as a liability. Amortization of capital leased assets is recorded using the straight-line method over the shorter of the estimated useful lives or the lease terms. Maintenance, repairs, and minor renewals and betterments are charged to expense as incurred.</font> ;</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon the retirement or disposition of property, plant and equipment, the related cost and accumulated depreciation or amortization are removed, and a gain or loss is recorded.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Derivatives. </font>The Company may enter into foreign currency forward and option contracts to hedge certain foreign currency transactions and probable anticipated foreign currency revenue transactions. Gains and losses arising from changes in the fair values of foreign currency forward and option contracts that are not designated as hedging instruments are recorded in investment income (expense) as gains (losses) on derivative instruments. Gains and losses arising from the effective portion of foreign currency forward and option contracts that are designated as cash-flow hedging instruments are recorded in accumulated other comprehensive income (loss) as gains (losses) on derivative instruments, net of tax. The amounts are subsequently reclassified into revenues in the same period in which the underlying transactions affect the Company&#8217;s earnings. The Company had no outstanding forward contracts at September 27, 2009 and September 28, 2008. The value of the Company&#8217;s foreign currency option contracts recorded in other current assets was $29 million and $56 million at September 27, 2009 and September 28, 2008, respectively, and the value recor ded in other current liabilities was $58 million and $19 million at September 27, 2009 and September 28, 2008, respectively, substantially all of which were designated as cash-flow hedging instruments.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In connection with its stock repurchase program, the Company may sell put options that require the Company to repurchase shares of its common stock at fixed prices. The premiums received from put options are recorded as other current liabilities. Changes in the fair value of put options are recorded in investment income (expense) as gains (losses) on derivative instruments. At September 27, 2009 and September 28, 2008, no put options were outstanding.</font></div> <div style="DISPLAY: b lock; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Goodwill and Other Intangible Assets. </font>Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of goodwill may be impaired.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roma n">Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Acquired intangible assets are carried at cost, less accumulated amortization. For intangible assets purchased in a business combination or received in a non-monetary exchange, the estimated fair values of the assets received (or, for non-monetary exchanges, the estimated fair values of the assets transferred if more clearly evident) are used to establish the cost bases, except when neither of the values of the assets received or the assets transferred in non-monetary exchanges are determinable within reasonable limits. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. 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The guidance will be effective for the Company&#8217;s fiscal 2010 beginning September 28, 2009 and will change the Company&# 8217;s accounting treatment for business combinations on a prospective basis.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The FASB issued authoritative guidance for fair value measurements in September 2006, which defines fair value, establishes a framework for measuring fair value and expands disclosures about assets and liabilities measured at fair value in the financial statements. The Company adopted the provisions of the guidance for financial assets and liabilities effective September 29, 2008 but elected a partial deferral under the provisions related to nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis, including goodwill, wireless licenses, other intangible and long-lived assets, guarantees and a sset retirement obligations. The adoption of this guidance in fiscal 2010 on such nonfinancial assets and liabilities is not expected to have a significant impact on the Company&#8217;s consolidated financial statements.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In September 2009, the FASB ratified the final consensus reached by the Emerging Issues Task Force (EITF) that revised the authoritative guidance for revenue arrangements with multiple deliverables. The guidance addresses how to determine whether an arrangement involving multiple deliverables contains more than one unit of accounting and how the arrangement consideration should be allocated among the separate units of accounting. The guidance will be effective for the Company&#82 17;s fiscal 2011 beginning September 27, 2010 with early adoption permitted. The guidance may be applied retrospectively or prospectively for new or materially modified arrangements. The Company is in the process of evaluating early prospective adoption and determining the effects, if any, the adoption of the guidance will have on its consolidated financial statements.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In September 2009, the FASB also ratified the final consensus reached by the EITF that modifies the scope of the software revenue recognition guidance to exclude (a) non-software components of tangible products and (b) software components of tangible products that are sold, licensed or leased with tangible products when the software compone nts and non-software components of the tangible product function together to deliver the tangible product&#8217;s essential functionality. The guidance will be effective for the Company&#8217;s fiscal 2011 beginning September 27, 2010 with early adoption permitted. The guidance may be applied retrospectively or prospectively for new or materially modified arrangements. The Company is in the process of evaluating early prospective adoption and determining the effects, if any, the adoption of the guidance will have on its consolidated financial statements.</font></div> </div> Note 1. The Company and Its Significant Accounting Policies The Company. QUALCOMM Incorporated (the Company or QUALCOMM), a Delaware false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 31 R17.xml IDEA: Acquisitions 1.0.0.3 false Acquisitions false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 u002 Standard http://www.xbrl.org/2003/instance shares xbrli 0 2 0 qcom_NotesToFinancialStatementsAbstract qcom false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_BusinessCombinationDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Note 11. Acquisitions</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During fiscal 2009, the Company acquired one business for total cash consideration of $17 million.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During fiscal 2008, the Company acquired five bus inesses for total cash consideration of $263 million. Goodwill recognized in these transactions, of which $179 million is expected to be deductible for tax purposes, was assigned to the QWI and QCT segments in the amount of $179 million and $21 million, respectively. Technology-based intangible assets recognized in the amount of $57 million are being amortized on a straight-line basis over a weighted-average useful life of six years.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During fiscal 2007, the Company acquired three businesses for total cash consideration of $181 million. Goodwill recognized in these transactions, of which $21 million is expected to be deductible for tax purposes, was assigned to the QCT and QWI segments in the amounts of $ 72 million and $10 million, respectively. Technology-based intangible assets recognized in the amount of $46 million are being amortized on a straight-line basis over a weighted-average useful life of three years.</font></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The consolidated financial statements include the operating results of these businesses from their respective dates of acquisition. Pro forma results of operations have not been presented because the effects of the acquisitions were not material.</font></div> </div> Note 11. Acquisitions During fiscal 2009, the Company acquired one business for total cash consideration of $17 million. During false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true
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