Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Mar. 25, 2018 | Apr. 23, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | QUALCOMM INC/DE | |
Entity Registrant State of Incorporation | Delaware | |
Entity Address | 5775 Morehouse Dr. | |
Entity City | San Diego | |
Entity State | California | |
Entity Zip Code | 92121-1714 | |
Entity Phone Number | (858) 587-1121 | |
Entity Employer ID | 953,685,934 | |
Entity Central Index Key | 804,328 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 25, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,482,622,312 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 25, 2018 | Sep. 24, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 37,946 | $ 35,029 |
Marketable securities | 1,625 | 2,279 |
Accounts receivable, net | 3,535 | 3,632 |
Inventories | 1,797 | 2,035 |
Other current assets | 641 | 618 |
Total current assets | 45,544 | 43,593 |
Marketable securities | 35 | 1,270 |
Deferred tax assets | 1,126 | 2,900 |
Property, plant and equipment, net | 3,224 | 3,216 |
Goodwill | 6,676 | 6,623 |
Other intangible assets, net | 3,435 | 3,737 |
Other assets | 4,086 | 4,147 |
Total assets | 64,126 | 65,486 |
Current liabilities: | ||
Trade accounts payable | 1,454 | 1,971 |
Payroll and other benefits related liabilities | 1,262 | 1,183 |
Unearned revenues | 502 | 502 |
Short-term debt | 3,733 | 2,495 |
Other current liabilities | 5,709 | 4,756 |
Total current liabilities | 12,660 | 10,907 |
Unearned revenues | 1,803 | 2,003 |
Income taxes payable | 3,277 | 0 |
Long-term debt | 19,361 | 19,398 |
Other liabilities | 3,206 | 2,432 |
Total liabilities | 40,307 | 34,740 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding | 0 | 0 |
Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,482 and 1,474 shares issued and outstanding, respectively | 495 | 274 |
Retained earnings | 22,779 | 30,088 |
Accumulated other comprehensive income | 545 | 384 |
Total stockholders’ equity | 23,819 | 30,746 |
Total liabilities and stockholders’ equity | $ 64,126 | $ 65,486 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS - $ / shares | Mar. 25, 2018 | Sep. 24, 2017 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 8,000,000 | 8,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued | 1,482,000,000 | 1,474,000,000 |
Common stock, shares outstanding | 1,482,000,000 | 1,474,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | |
Revenues: | ||||
Equipment and services | $ 3,936 | $ 3,689 | $ 8,639 | $ 7,828 |
Licensing | 1,325 | 1,327 | 2,690 | 3,187 |
Total revenues | 5,261 | 5,016 | 11,329 | 11,015 |
Costs and expenses: | ||||
Cost of revenues | 2,239 | 2,208 | 4,902 | 4,651 |
Research and development | 1,402 | 1,386 | 2,822 | 2,697 |
Selling, general and administrative | 869 | 615 | 1,641 | 1,206 |
Other (Note 2) | 310 | 78 | 1,493 | 954 |
Total costs and expenses | 4,820 | 4,287 | 10,858 | 9,508 |
Operating income | 441 | 729 | 471 | 1,507 |
Interest expense | (179) | (107) | (350) | (197) |
Investment and other income, net (Note 2) | 96 | 235 | 211 | 417 |
Income before income taxes | 358 | 857 | 332 | 1,727 |
Income tax benefit (expense) (Note 3) | 5 | (108) | (5,922) | (296) |
Net income (loss) | $ 363 | $ 749 | $ (5,590) | $ 1,431 |
Basic earnings (loss) per share | $ 0.25 | $ 0.51 | $ (3.78) | $ 0.97 |
Diluted earnings (loss) per share | $ 0.24 | $ 0.50 | $ (3.78) | $ 0.96 |
Shares used in per share calculations: | ||||
Basic | 1,482 | 1,477 | 1,479 | 1,478 |
Diluted | 1,494 | 1,489 | 1,479 | 1,492 |
Dividends per share announced | $ 0.57 | $ 0.53 | $ 1.14 | $ 1.06 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | |
Net income (loss) | $ 363 | $ 749 | $ (5,590) | $ 1,431 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation gains (losses) | 178 | 16 | 173 | (10) |
Noncredit other-than-temporary impairment losses related to certain available-for-sale debt securities and subsequent changes in fair value | 0 | 0 | 0 | 6 |
Reclassification of net other-than-temporary losses on available-for-sale securities included in net income (loss) | 0 | 2 | 1 | 81 |
Net unrealized (losses) gains on other available-for-sale securities | (5) | 69 | (1) | (141) |
Reclassification of net realized gains on available-for-sale securities included in net income (loss) | (8) | (37) | (9) | (129) |
Net unrealized losses on derivative instruments | (7) | (5) | (6) | (3) |
Reclassification of net realized losses (gains) on derivative instruments included in net income (loss) | 2 | (2) | 3 | (2) |
Total other comprehensive income (loss) | 160 | 43 | 161 | (198) |
Comprehensive income (loss) | $ 523 | $ 792 | $ (5,429) | $ 1,233 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Mar. 25, 2018 | Mar. 26, 2017 | |
Operating Activities: | ||
Net income (loss) | $ (5,590) | $ 1,431 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 751 | 671 |
Income tax provision in excess of (less than) income tax payments (Note 3) | 5,477 | (230) |
Interest expense in excess of interest payments | 207 | 129 |
Non-cash portion of share-based compensation expense | 470 | 485 |
Net realized gains on marketable securities and other investments | (73) | (236) |
Indefinite and long-lived asset impairment charges | 33 | 34 |
Impairment losses on marketable securities and other investments | 20 | 148 |
Other items, net | 46 | (32) |
Changes in assets and liabilities: | ||
Accounts receivable, net | 94 | (1,691) |
Inventories | 243 | (245) |
Other assets | 70 | 107 |
Trade accounts payable | (511) | (677) |
Payroll, benefits and other liabilities | 1,166 | 2,592 |
Unearned revenues | (125) | (80) |
Net cash provided by operating activities | 2,278 | 2,406 |
Investing Activities: | ||
Capital expenditures | (411) | (251) |
Purchases of available-for-sale marketable securities | (5,758) | (8,802) |
Proceeds from sales and maturities of available-for-sale securities | 7,659 | 13,146 |
Deposits of investments designated as collateral | 0 | (2,000) |
Acquisitions and other investments, net of cash acquired | (170) | (1,382) |
Proceeds from other investments | 159 | 7 |
Other items, net | 2 | 42 |
Net cash provided by investing activities | 1,481 | 760 |
Financing Activities: | ||
Proceeds from short-term debt | 5,563 | 5,113 |
Repayment of short-term debt | (4,330) | (4,864) |
Proceeds from issuance of common stock | 335 | 290 |
Repurchases and retirements of common stock | (425) | (727) |
Dividends paid | (1,689) | (1,567) |
Payments of tax withholdings related to vesting of share-based awards | (196) | (175) |
Payment of purchase consideration related to RF360 joint venture | (115) | 0 |
Other items, net | (17) | (52) |
Net cash used by financing activities | (874) | (1,982) |
Effect of exchange rate changes on cash and cash equivalents | 32 | (6) |
Net increase in cash and cash equivalents | 2,917 | 1,178 |
Cash and cash equivalents at beginning of period | 35,029 | 5,946 |
Cash and cash equivalents at end of period | $ 37,946 | $ 7,124 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation Financial Statement Preparation. These condensed consolidated financial statements have been prepared by QUALCOMM Incorporated (collectively with its subsidiaries, the Company or Qualcomm) in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all normal recurring adjustments necessary for a fair statement of the results for the interim periods. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 24, 2017 . Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three-month and six-month periods ended March 25, 2018 and March 26, 2017 included 13 weeks and 26 weeks , respectively. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s condensed 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. Earnings (Loss) Per Common Share. Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to Qualcomm by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed by dividing net income attributable to Qualcomm by the combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans, if any, and the weighted-average number of common shares outstanding during the reporting period. Due to the net loss for the six months ended March 25, 2018 , all of the common share equivalents issuable under share-based compensation plans had an anti-dilutive effect and were therefore excluded from the computation of diluted loss per share. The following table provides information about the diluted earnings per share calculation (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Dilutive common share equivalents included in diluted shares 12.2 11.3 — 14.2 Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period 0.1 10.8 44.9 5.4 Share-Based Compensation. Total share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Cost of revenues $ 10 $ 10 $ 21 $ 20 Research and development 151 155 307 308 Selling, general and administrative 61 81 142 157 Share-based compensation expense before income taxes 222 246 470 485 Related income tax benefit (29 ) (36 ) (77 ) (84 ) $ 193 $ 210 $ 393 $ 401 At March 25, 2018 , total unrecognized compensation expense related to nonvested restricted stock units granted prior to that date was $1.3 billion , which is expected to be recognized over a weighted-average period of 1.9 years . At March 25, 2018 , the Company had 28.4 million restricted stock units outstanding and 7.8 million stock options outstanding. Recent Accounting Pronouncements. Share-based Awards: In March 2016, the Financial Accounting Standards Board (FASB) issued new guidance that changed the accounting for share-based awards, including income taxes, classification of awards and classification in the statement of cash flows. The Company adopted the new guidance in the first quarter of fiscal 2018. In accordance with the new guidance, excess tax benefits or deficiencies associated with share-based awards are recognized through earnings when the awards vest or settle, rather than in stockholders’ equity. In the six months ended March 25, 2018 , net excess tax benefits associated with share-based awards of $21 million were recognized in the Company’s income tax provision. In addition, cash flows related to excess tax benefits are presented as an operating activity and cash payments made on an employee’s behalf for withheld shares are presented as financing activities, with the prior periods adjusted accordingly. As a result of these changes, amounts for the six months ended March 26, 2017 have been adjusted as follows: net cash provided by operating activities increased by $212 million with a corresponding offset to net cash used in financing activities. The new guidance also impacts the Company’s earnings per share calculation as the estimate of dilutive common share equivalents under the treasury stock method no longer assumes that the estimated tax benefits realized when an award is settled are used to repurchase shares. There was no impact of this change on the Company’s calculation of earnings per share as a result of the net loss for the six months ended March 25, 2018 . The Company elected to continue its practice of estimating forfeitures expected to occur in determining the amount of compensation cost to be recognized each period. Revenue Recognition: In May 2014, the FASB issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The Company will adopt the new guidance in the first quarter of fiscal 2019 using the modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to the opening retained earnings balance. Given the scope of work required to implement the recognition and disclosure requirements under the new guidance, the Company has made progress in the identification of changes to policy, processes, systems and controls, and the Company continues to assess data availability and presentation necessary to meet the additional disclosure requirements of the guidance in the notes to the consolidated financial statements. The Company currently expects the adoption of this new guidance to most significantly impact its licensing business. Specifically, the Company expects a change in the timing of revenues recognized from sales-based royalties. The Company currently recognizes sales-based royalties as revenues in the period in which such royalties are reported by licensees, which is after the conclusion of the quarter in which the licensees’ sales occur and when all other revenue recognition criteria are met. Under the new guidance, the Company will be required to estimate and recognize sales-based royalties in the period in which the associated sales occur, resulting in an acceleration of revenue recognition compared to the current method. Upon adoption of the new guidance, licenses to use portions of the Company’s intellectual property portfolio will be considered one performance obligation, and license fees will be recognized as revenues on a straight-line basis over the term of the license agreement, which is similar to the recognition of license revenues under the current guidance. The Company currently accounts for customer incentive arrangements in its licensing and semiconductor businesses, including volume-related and other pricing rebates or cost reimbursements for marketing and other activities involving certain of the Company’s products and technologies, in part based on the maximum potential liability. Under the new guidance, the Company will estimate the amount of all customer incentives. The Company does not otherwise expect the adoption of the new guidance to have a material impact on its businesses. Financial Assets: In January 2016, the FASB issued new guidance on classifying and measuring financial instruments, which requires that (i) all equity investments, other than equity-method investments, in unconsolidated entities generally be measured at fair value through earnings and (ii) when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk be recognized separately in other comprehensive income. Additionally, it changes the disclosure requirements for financial instruments. The Company will adopt the new guidance in the first quarter of fiscal 2019 and is in the process of determining the effects the adoption will have on its consolidated financial statements. In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new guidance will be effective for the Company starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements and whether to adopt the new guidance early. Leases: In February 2016, the FASB issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The Company will adopt the new guidance in the first quarter of fiscal 2020 and expects to use the modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to opening retained earnings in the year of adoption. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements and whether to apply any of the optional practical expedients. Hedge Instruments: In August 2017, the FASB issued new guidance that expands and refines hedge accounting for both financial and non-financial risks, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes targeted improvements related to the assessment of hedge effectiveness. The new guidance also modifies disclosure requirements for hedging activities. The Company plans to adopt the new guidance in the first quarter of fiscal 2019 and does not expect the effects of the adoption to have a material impact on its consolidated financial statements. Other: In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments on the statement of cash flows. The Company will adopt the new guidance in the first quarter of fiscal 2019 and does not expect the effects of the adoption to have a material impact on its consolidated statements of cash flows. In October 2016, the FASB issued new guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The Company will adopt the new guidance in the first quarter of fiscal 2019 and is in the process of determining the effects the adoption will have on its consolidated financial statements. |
Composition of Certain Financia
Composition of Certain Financial Statement Items (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Composition of Certain Financial Statement Items | Composition of Certain Financial Statement Items Inventories (in millions) March 25, September 24, Raw materials $ 93 $ 103 Work-in-process 643 799 Finished goods 1,061 1,133 $ 1,797 $ 2,035 Other Current Liabilities (in millions) March 25, September 24, Customer incentives and other customer-related liabilities $ 2,882 $ 2,804 Accrual for EC fine (Note 6) 1,232 — Income taxes payable 575 312 Accrual for TFTC fine (Note 6) 156 778 Other 864 862 $ 5,709 $ 4,756 Other Income, Costs and Expenses. Other expenses in the three months ended March 25, 2018 consisted of $310 million in restructuring and restructuring-related charges related to the Company’s Cost Plan (Note 9). Other expenses in the six months ended March 25, 2018 also included a $1.2 billion charge related to the European Commission (EC) fine (Note 6). Other expenses in the three months ended March 26, 2017 consisted of $53 million in foreign currency losses related to the fine imposed by the Korea Fair Trade Commission (KFTC), which was accrued in the first quarter of fiscal 2017, and $25 million in restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan. Other expenses in the six months ended March 26, 2017 consisted of a $921 million charge related to the KFTC fine, including related foreign currency losses, and $33 million in restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan. Investment and Other Income, Net (in millions) Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Interest and dividend income $ 154 $ 153 $ 280 $ 320 Net realized gains on marketable securities 3 67 13 206 Net realized gains on other investments 47 21 60 30 Impairment losses on marketable securities — (3 ) (1 ) (125 ) Impairment losses on other investments (11 ) (2 ) (19 ) (23 ) Net gains on derivative investments 10 13 9 20 Equity in net losses of investees (17 ) (14 ) (38 ) (11 ) Net losses on foreign currency transactions (90 ) — (93 ) — $ 96 $ 235 $ 211 $ 417 |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, tax reform legislation known as the Tax Cuts and Jobs Act (the Tax Legislation) was enacted in the United States (U.S.). The Tax Legislation significantly revises the U.S. corporate income tax by, among other things, lowering the corporate income tax rate to 21% , implementing a modified territorial tax system and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Toll Charge). As a fiscal-year taxpayer, certain provisions of the Tax Legislation impacted the Company in fiscal 2018, including the change in the corporate income tax rate and the Toll Charge, while other provisions will be effective starting at the beginning of fiscal 2019, including the implementation of a modified territorial tax system. The U.S. federal income tax rate reduction was effective as of January 1, 2018. Accordingly, the Company’s federal statutory income tax rate for fiscal 2018 reflects a blended rate of approximately 25% . Pursuant to the Securities and Exchange Commission Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), given the amount and complexity of the changes in tax law resulting from the Tax Legislation, the Company has not finalized the accounting for the income tax effects of the Tax Legislation. This includes the provisional amounts recorded related to the Toll Charge, the remeasurement of deferred taxes and the change in the Company’s indefinite reinvestment assertion. Further, the Company is in the process of analyzing the effects of new taxes due on certain foreign income, such as GILTI (global intangible low-taxed income), BEAT (base-erosion anti-abuse tax) and FDII (foreign-derived intangible income), and limitations on interest expense deductions (if certain conditions apply), all of which are effective starting in fiscal 2019, as well as other provisions of the Tax Legislation. The Company has elected to account for GILTI as period costs if and when incurred. As a result of recognizing the impact of the Tax Legislation in income tax expense (benefit), certain tax effects, which were nominal, were stranded in accumulated other comprehensive income, and the Company will not reclassify such amounts to retained earnings. The impact of the Tax Legislation may differ from this estimate, possibly materially, during the one-year measurement period due to, among other things, further refinement of the Company’s calculations, changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Tax Legislation. The Company has preliminarily accounted for the effects of the Tax Legislation, which resulted in a charge of $5.87 billion to income tax expense recorded discretely in the first quarter of fiscal 2018, comprised of $5.3 billion related to the estimated Toll Charge and $562 million resulting from the estimated impact of remeasurement of U.S. deferred tax assets and liabilities that existed at the end of fiscal 2017 at a lower enacted corporate income tax rate. The Company recorded a $15 million net tax benefit discretely in the second quarter of fiscal 2018 related to refining estimates associated with the Toll Charge and impact of remeasurement of U.S. deferred tax assets and liabilities. The Toll Charge is based on the Company’s post-1986 earnings and profits of U.S.-owned foreign subsidiaries through December 31, 2017 for which the Company had previously deferred U.S. income taxes. The total estimated Toll Charge of $5.3 billion was recorded discretely in the first six months of fiscal 2018. The Company has not yet finalized its calculation of the total post-1986 foreign earnings and profits for the respective foreign subsidiaries. Further, the Toll Charge is based in part on the amount of those earnings held in cash and other specific assets. The Company remeasured its deferred tax assets and liabilities that existed at the end of fiscal 2017 based on the income tax rate at which they are expected to reverse, which primarily assumes the reduced income tax rate of 21% applicable in fiscal 2019, resulting in a reduction to noncurrent deferred tax assets of $540 million in the first six months of fiscal 2018. As of December 24, 2017, the Company no longer considers available cash balances that existed at the end of fiscal 2017 related to undistributed pre-fiscal 2018 earnings and profits of certain U.S.-owned foreign subsidiaries to be indefinitely reinvested and recorded a tax expense of $93 million related to foreign withholding taxes during the first six months of fiscal 2018, of which $86 million was recorded discretely in the first quarter of fiscal 2018. The Company otherwise continues to consider other undistributed earnings of certain U.S.-owned foreign subsidiaries to be indefinitely reinvested based on its current plans for use and/or investment outside of the U.S., and therefore, no liability has been recorded for such taxes. However, as a result of the Tax Legislation, the Company is reassessing its intentions related to its indefinite reinvestment assertion. Should the Company decide to no longer indefinitely reinvest such earnings outside the U.S., the Company would have to adjust the income tax provision in the period such determination is made. As a result of the Toll Charge imposed by the Tax Legislation, the Company expects to fully utilize all of its unused federal tax credits that existed at the end of fiscal 2017 of $1.1 billion , which resulted in a reduction to noncurrent deferred tax assets in the first quarter of fiscal 2018, and the federal tax credits that are expected to be generated in fiscal 2018. The Company will elect to pay the Toll Charge, interest free, over a period of eight years, with payments beginning on January 15, 2019. The Company did not discount the amount of the Toll Charge. The cash amount the Company currently estimates will be paid for the Toll Charge, net of tax credit carryforwards and expected tax credits estimated to be generated in fiscal 2018, is $3.2 billion . The estimated first installment of $251 million is due on January 15, 2019 and was included in other current liabilities. The remaining liability was included in noncurrent income taxes payable. The Company estimates its annual effective income tax rate to be approximately 438% for fiscal 2018 , as compared to the 18% effective income tax rate for fiscal 2017 , primarily as a result of the estimated charge of $5.95 billion recorded to income tax expense in the first six months of fiscal 2018 related to the combined effect of the Toll Charge, the remeasurement of deferred tax assets and liabilities and the Company’s decision to no longer indefinitely reinvest certain foreign earnings, all of which resulted from the Tax Legislation. The estimated annual effective tax rate for fiscal 2018 was also impacted by the EC fine (Note 6) recorded in the first quarter of fiscal 2018, which is not deductible for tax purposes and is attributable to a foreign jurisdiction. Tax benefits from foreign income taxed at rates lower than rates in the U.S. are expected to be approximately 31% in fiscal 2018 , compared to 32% in fiscal 2017 , primarily due to the lower U.S. federal statutory income tax rate enacted by the Tax Legislation, partially offset by lower estimated U.S. revenues primarily related to decreased royalty revenues from Apple’s contract manufacturers and the other licensee in dispute. The estimated annual effective tax rate for fiscal 2018 also reflects a blended U.S. federal statutory income tax rate of 25% as a result of the Tax Legislation and the increase in the Company’s Singapore tax rate due to the expiration of certain of its tax incentives in March 2017. The annual effective tax rate of 18% for fiscal 2017 reflected the KFTC and TFTC fines (Note 6), which were not deductible for tax purposes and were each attributable to the U.S. and foreign jurisdictions. The effective tax rate of 1% benefit for the second quarter of fiscal 2018 was lower than the estimated annual effective tax rate primarily due to the estimated charge of $5.96 billion recorded discretely to income tax expense in the first quarter of fiscal 2018 related to the effects of certain components of the Tax Legislation and the EC fine recorded in the first quarter of fiscal 2018 , as well as the $15 million tax benefit recorded discretely in the second quarter of fiscal 2018 related to refining estimates associated with the Tax Legislation. Unrecognized tax benefits were $347 million and $372 million at March 25, 2018 and September 24, 2017 , respectively. The Company believes that it is reasonably possible that the total amounts of unrecognized tax benefits at March 25, 2018 may increase or decrease in the next 12 months. The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions, and is currently under examination by various tax authorities worldwide, most notably in countries where the Company earns a routine return and tax authorities believe substantial value-add activities are performed. These examinations are at various stages with respect to assessments, claims, deficiencies and refunds, many of which are open for periods after fiscal 2000. 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 give rise to a revision become known. As of March 25, 2018 , the Company believes that adequate amounts have been reserved for based on facts known. However, the final determination of tax audits and any related legal proceedings could materially differ from amounts reflected in the Company’s income tax provision and the related accruals. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Changes in stockholders’ equity in the six months ended March 25, 2018 were as follows (in millions): Total Stockholders’ Equity Balance at September 24, 2017 $ 30,746 Net loss (5,590 ) Other comprehensive income 161 Common stock issued under employee benefit plans and related tax benefits 343 Share-based compensation 499 Tax withholdings related to vesting of share-based payments (196 ) Dividends (1,719 ) Stock repurchases (425 ) Balance at March 25, 2018 $ 23,819 Accumulated Other Comprehensive Income. Changes in the components of accumulated other comprehensive income, net of income taxes, in stockholders’ equity in the six months ended March 25, 2018 were as follows (in millions): Foreign Currency Translation Adjustment Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities Net Unrealized Gain (Loss) on Other Available-for-Sale Securities Net Unrealized (Loss) Gain on Derivative Instruments Other Gains Total Accumulated Other Comprehensive Income Balance at September 24, 2017 $ 147 $ 23 $ 218 $ (8 ) $ 4 $ 384 Other comprehensive income (loss) before reclassifications 173 — (1 ) (6 ) — 166 Reclassifications from accumulated other comprehensive income — 1 (9 ) 3 — (5 ) Other comprehensive income (loss) 173 1 (10 ) (3 ) — 161 Balance at March 25, 2018 $ 320 $ 24 $ 208 $ (11 ) $ 4 $ 545 Reclassifications from accumulated other comprehensive income related to available-for-sale securities were negligible in both the three and six months ended March 25, 2018 and $35 million and $48 million in the three and six months ended March 26, 2017 , respectively, and were recorded in investment and other income, net (Note 2). Stock Repurchase Program. On March 9, 2015 , the Company announced a stock repurchase program authorizing it to repurchase up to $15 billion of the Company’s common stock. The stock repurchase program has no expiration date. In the six months ended March 25, 2018 and March 26, 2017 , the Company repurchased and retired 6.8 million and 11.5 million shares for $425 million and $727 million , respectively, before commissions. At March 25, 2018 , $1.2 billion remained authorized for repurchase under the Company’s stock repurchase program. Dividends. On March 8, 2018 , the Company announced a 9% increase in its quarterly dividend per share of common stock from $0.57 to $0.62 , which is effective for dividends payable after March 21, 2018 . On April 17, 2018 , the Company announced a cash dividend of $0.62 per share on the Company’s common stock, payable on June 20, 2018 to stockholders of record as of the close of business on May 30, 2018 . In the six months ended March 25, 2018 and March 26, 2017 , dividends charged to retained earnings were as follows (in millions, except per share data): 2018 2017 Per Share Total Per Share Total First quarter $ 0.57 $ 862 $ 0.53 $ 801 Second quarter 0.57 857 0.53 798 $ 1.14 $ 1,719 $ 1.06 $ 1,599 Employee Benefit Plans. On March 23, 2018, the Company’s stockholders approved an amendment to the Amended and Restated QUALCOMM Incorporated 2001 Employee Stock Purchase Plan to increase the share reserve by 30,000,000 shares to approximately 101,709,000 . |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facilities. The Company has an Amended and Restated Revolving Credit Facility (2016 Amended and Restated Revolving Credit Facility) that provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $5.0 billion , of which $530 million and $4.47 billion will expire in February 2020 and November 2021 , respectively. Proceeds from the 2016 Amended and Restated Revolving Credit Facility are expected to be used for general corporate purposes. At March 25, 2018 and September 24, 2017 , the Company had not borrowed any funds under the 2016 Amended and Restated Revolving Credit Facility. In March 2018, the Company entered into a credit agreement, which was amended on April 20, 2018 in connection with Amendment No. 2 to the NXP purchase agreement (Amendment No. 2) (Note 8), that provides for senior unsecured delayed-draw revolving facility loans in an aggregate amount of $3.0 billion (as amended, the 2018 Revolving Credit Facility). Proceeds from the 2018 Revolving Credit Facility, if drawn, will be used in part to finance the proposed acquisition of NXP (Note 8) and for general corporate purposes. Commitments under the 2018 Revolving Credit Facility will expire on the first to occur of (i) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP, (ii) if the closing date under the 2018 Revolving Credit Facility has not occurred, the date that is five business days following July 25, 2018 and (iii) the termination of the commitments in accordance with the provisions of the 2018 Revolving Credit Facility providing for voluntary and mandatory commitment reductions. Loans under the 2018 Revolving Credit Facility will mature on December 31, 2018 and will bear interest, at the option of the Company, at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the 2018 Revolving Credit Facility) or the Base Rate (determined in accordance with the 2018 Revolving Credit Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate based on Qualcomm’s debt ratings as of March 25, 2018 will be 0.75% and 0.00% per annum, respectively. The 2018 Revolving Credit Facility has a ticking fee, which is based on Qualcomm’s debt ratings and initially accrues at a rate of 0.05% per annum commencing on March 6, 2018. At March 25, 2018 , the Company had not borrowed any funds under the 2018 Revolving Credit Facility. Commercial Paper Program. The Company has an unsecured commercial paper program, which provides for the issuance of up to $5.0 billion of commercial paper. Net proceeds from this program are used for general corporate purposes. Maturities of commercial paper can range from 1 day to up to 397 days . At March 25, 2018 and September 24, 2017 , the Company had $2.2 billion and $999 million , respectively, of outstanding commercial paper included in short-term debt with a weighted-average interest rate of 1.98% and 1.19% , respectively, which included fees paid to the commercial paper dealers, and weighted-average remaining days to maturity of 44 days and 45 days , respectively. The carrying value of the outstanding commercial paper approximated its estimated fair value at March 25, 2018 and September 24, 2017 . Term Loan Facilities. The Company is party to a credit agreement, which was amended on April 20, 2018, in connection with Amendment No. 2, that provides for senior unsecured delayed-draw term facility loans in an aggregate amount of $4.0 billion (as amended, the 2016 Term Loan Facility). Proceeds from the 2016 Term Loan Facility, if drawn, will be used to finance the proposed acquisition of NXP. Commitments under the 2016 Term Loan Facility will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the 2016 Term Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP and (iii) the date that is five business days following July 25, 2018. At March 25, 2018 and September 24, 2017 , the Company had not borrowed any funds under the 2016 Term Loan Facility. In March 2018, the Company entered into a credit agreement, which was amended on April 20, 2018 in connection with Amendment No. 2, that provides for senior unsecured delayed-draw term facility loans in an aggregate amount of $3.0 billion (as amended, the 2018 Term Loan Facility). Proceeds from the 2018 Term Loan Facility, if drawn, will be used in part to finance the proposed acquisition of NXP and for general corporate purposes. Commitments under the 2018 Term Loan Facility will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the 2018 Term Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP, (iii) the date that is five business days following July 25, 2018 and (iv) the termination of the commitments in accordance with the provisions of the 2018 Term Loan Facility providing for voluntary and mandatory commitment reductions. Loans under the 2018 Term Loan Facility will mature on December 31, 2018 and will bear interest, at the option of the Company, at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the 2018 Term Loan Facility) or the Base Rate (determined in accordance with the 2018 Term Loan Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate based on Qualcomm’s debt ratings as of March 25, 2018 will be 0.875% and 0.00% per annum, respectively. The 2018 Term Loan Facility has a ticking fee, which is based on Qualcomm’s debt ratings and initially accrues at a rate of 0.05% per annum commencing on March 6, 2018. At March 25, 2018 , the Company had not borrowed any funds under the 2018 Term Loan Facility. Long-term Debt. The following table provides a summary of the Company’s long-term debt (in millions, except percentages): March 25, 2018 September 24, 2017 Amount Effective Rate Amount Effective Rate May 2015 Notes Floating-rate three-month LIBOR plus 0.27% notes due May 18, 2018 $ 250 2.21% $ 250 1.65% Floating-rate three-month LIBOR plus 0.55% notes due May 20, 2020 250 2.49% 250 1.92% Fixed-rate 1.40% notes due May 18, 2018 1,250 2.94% 1,250 1.93% Fixed-rate 2.25% notes due May 20, 2020 1,750 2.79% 1,750 2.20% Fixed-rate 3.00% notes due May 20, 2022 2,000 3.34% 2,000 2.65% Fixed-rate 3.45% notes due May 20, 2025 2,000 3.46% 2,000 3.46% Fixed-rate 4.65% notes due May 20, 2035 1,000 4.74% 1,000 4.74% Fixed-rate 4.80% notes due May 20, 2045 1,500 4.71% 1,500 4.71% May 2017 Notes Floating-rate three-month LIBOR plus 0.36% notes due May 20, 2019 750 2.37% 750 1.80% Floating-rate three-month LIBOR plus 0.45% notes due May 20, 2020 500 2.43% 500 1.86% Floating-rate three-month LIBOR plus 0.73% notes due January 30, 2023 500 2.56% 500 2.11% Fixed-rate 1.85% notes due May 20, 2019 1,250 2.00% 1,250 2.00% Fixed-rate 2.10% notes due May 20, 2020 1,500 2.19% 1,500 2.19% Fixed-rate 2.60% notes due January 30, 2023 1,500 2.70% 1,500 2.70% Fixed-rate 2.90% notes due May 20, 2024 1,500 3.01% 1,500 3.01% Fixed-rate 3.25% notes due May 20, 2027 2,000 3.46% 2,000 3.46% Fixed-rate 4.30% notes due May 20, 2047 1,500 4.47% 1,500 4.47% Total principal 21,000 21,000 Unamortized discount, including debt issuance costs (97 ) (106 ) Hedge accounting fair value adjustments (43 ) — Total $ 20,860 $ 20,894 Reported as: Short-term debt $ 1,499 $ 1,496 Long-term debt 19,361 19,398 Total $ 20,860 $ 20,894 The Company’s 2019 floating-rate notes, 2020 floating-rate notes, 2019 fixed-rate notes and 2020 fixed-rate notes issued in May 2017 for an aggregate principal amount of $4.0 billion are subject to a special mandatory redemption at a price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest to, but excluding, the date of such mandatory redemption. The redemption is required on the first to occur of (i) the termination of the NXP purchase agreement or (ii) if the NXP transaction has not closed, by June 1, 2018. The Company may redeem the fixed-rate notes at any time in whole, or from time to time in part, at specified make-whole premiums as defined in the applicable form of note. The Company may not redeem the other floating-rate notes prior to maturity. The obligations under the notes rank equally in right of payment with all of the Company’s other senior unsecured indebtedness and will effectively rank junior to all liabilities of the Company’s subsidiaries. At March 25, 2018 and September 24, 2017 , the aggregate fair value of the notes, based on Level 2 inputs, was approximately $20.5 billion and $21.5 billion , respectively. In connection with issuance of the May 2015 Notes, the Company entered into interest rate swaps with an aggregate notional amount of $3.0 billion , which effectively converted all of the fixed-rate notes due in 2018 and approximately 43% and 50% of the fixed-rate notes due in 2020 and 2022, respectively, into floating-rate notes. The net gains and losses on the interest rate swaps, as well as the offsetting gains or losses on the related fixed-rate notes attributable to the hedged risks, are recorded in earnings in interest expense in the current period. The Company did not enter into similar interest rate swaps in connection with issuance of the May 2017 Notes. The effective interest rates for the notes include the interest on the notes, amortization of the discount, which includes debt issuance costs, and if applicable, adjustments related to hedging. Interest is payable in arrears quarterly for the floating-rate notes and semi-annually for the fixed-rate notes. Cash interest paid related to the Company’s commercial paper program and long-term debt, net of cash received from the related interest rate swaps, was $317 million and $150 million in the six months ended March 25, 2018 and March 26, 2017 , respectively. Debt Covenants. The 2016 Amended and Restated Revolving Credit Facility, the 2016 Term Loan Facility, the 2018 Revolving Credit Facility and the 2018 Term Loan Facility require that the Company comply with certain covenants, including one financial covenant to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter . The Company is not subject to any financial covenants under the notes nor any covenants that would prohibit the Company from incurring additional indebtedness ranking equal to the notes, paying dividends, issuing securities or repurchasing securities issued by it or its subsidiaries. At March 25, 2018 and September 24, 2017 , the Company was in compliance with the applicable covenants under each facility outstanding at such time. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Proceedings. ParkerVision, Inc. v. QUALCOMM Incorporated: On May 1, 2014, ParkerVision filed a complaint against the Company in the United States District Court for the Middle District of Florida alleging that certain of the Company’s products infringe certain ParkerVision patents. On August 21, 2014, ParkerVision amended the complaint, now captioned ParkerVision, Inc. v. QUALCOMM Incorporated, Qualcomm Atheros, Inc., HTC Corporation, HTC America, Inc., Samsung Electronics Co., LTD., Samsung Electronics America, Inc. and Samsung Telecommunications America, LLC, broadening the allegations. ParkerVision alleged that the Company infringes 11 ParkerVision patents and seeks damages and injunctive and other relief. On December 3, 2015, ParkerVision dismissed six patents from the lawsuit and granted the Company and all other defendants a covenant not to assert those patents against any existing products. On February 2, 2016, after agreement among the parties, the District Court stayed the remainder of the case pending the resolution of the complaint filed by ParkerVision against the Company and other parties with the United States International Trade Commission (ITC) described below. Subsequently, ParkerVision announced that it had reached a settlement with Samsung which dismissed the Samsung entities from the District Court case. The Company had previously filed Inter-Partes Review petitions with the United States Patent and Trademark Office (USPTO) to invalidate all asserted claims of several of the remaining patents. On March 7, 2017, the USPTO decided in the Company’s favor with respect to all asserted claims of one such patent. After the ITC action described below was closed, and upon agreement among the parties, on May 24, 2017, the District Court further stayed the District Court case pending ParkerVision’s appeal of the USPTO’s invalidation decisions. On December 14, 2015, ParkerVision filed another complaint against the Company in the United States District Court for the Middle District of Florida alleging patent infringement. Apple Inc., Samsung Electronics Co., LTD., Samsung Electronics America, Inc., Samsung Telecommunications America, LLC, Samsung Semiconductor, Inc., LG Electronics, Inc., LG Electronics U.S.A., Inc. and LG Electronics MobileComm U.S.A., Inc. are also named defendants. The complaint asserts that certain of the Company’s products infringe four additional ParkerVision patents and seeks damages and other relief. On December 15, 2015, ParkerVision filed a complaint with the ITC pursuant to Section 337 of the Tariff Act of 1930 against the same parties asserting the same four patents. The complaint seeks an exclusion order barring the importation of products that use either of two Company transceivers or one Samsung transceiver and a cease and desist order preventing the Company and the other defendants from carrying out commercial activities within the United States related to such products. On January 13, 2016, the Company served its answer to the District Court complaint. On January 15, 2016, the ITC instituted an investigation. On February 12, 2016, the District Court case was stayed pending completion of the ITC investigation. Subsequently, ParkerVision announced that it had reached a settlement with Samsung which dismissed the Samsung entities from the ITC investigation and related District Court case. On February 2, 2017, the ITC granted ParkerVision’s motion to drop all but one patent and one accused product from the ITC investigation. On March 12, 2017, one day before the ITC hearing was scheduled to begin, ParkerVision moved to withdraw its ITC complaint in its entirety. The Company and the other defendants did not oppose the withdrawal of the complaint. On April 28, 2017, the ITC formally closed the investigation. On May 4, 2017, ParkerVision filed a motion to reopen the related District Court Case, and on May 26, 2017, the District Court granted the motion. On March 16, 2018, the parties agreed to dismiss three of ParkerVision’s patents from the case without prejudice, leaving only one patent at issue. No trial date has been set. Apple Inc. (Apple) v. QUALCOMM Incorporated: On January 20, 2017, Apple filed a complaint against the Company in the United States District Court for the Southern District of California seeking declarations with respect to several of the Company’s patents and alleging that the Company breached certain agreements and violated federal antitrust and California state unfair competition laws. In its initial complaint, Apple sought declaratory judgments of non-infringement by Apple of nine of the Company’s patents, or in the alternative, a declaration of royalties Apple must pay for the patents. Apple further sought a declaration that the Company’s sale of baseband chipsets exhausts the Company’s patent rights for patents embodied in those chipsets. Separately, Apple sought to enjoin the Company from seeking excessive royalties from Apple and to disgorge royalties paid by Apple’s contract manufacturers that the court finds were not fair, reasonable and non-discriminatory (FRAND). Apple also claimed that the Company’s refusal to make certain payments to Apple under a Business Cooperation and Patent Agreement (Cooperation Agreement) constitutes a breach of contract in violation of California law and sought damages in the amount of the unpaid payments, alleged to be approximately $1 billion. In addition, Apple claimed that the Company has refused to deal with competitors in contravention of the Company’s agreements with applicable standard setting organizations, has used its market position to impose contractual obligations on Apple that prevented Apple from challenging the Company’s licensing practices, has tied the purchase of the Company’s CDMA-enabled and “premium” LTE-enabled chipsets to licensing certain of the Company’s patents and has required Apple to purchase baseband chipsets exclusively from the Company as a condition of the Company’s payment to Apple of certain rebates, in violation of Section 2 of the Sherman Act and the California Unfair Competition Law. Apple sought injunctive relief with respect to these claims and a judgment awarding its expenses, costs and attorneys’ fees. On April 10, 2017, the Company filed its Answer and Counterclaims (amended on May 24, 2017) in response to Apple’s complaint denying Apple’s claims and asserting claims against Apple. The counterclaims against Apple include tortious interference with the Company’s long-standing Subscriber Unit License Agreements (SULAs) with third-party contract manufacturers of Apple devices, causing those contract manufacturers to withhold certain royalty payments owed to the Company and violate their audit obligations; breach of contract and the implied covenant of good faith and fair dealing relating to the parties’ Cooperation Agreement; unjust enrichment and declaratory relief relating to the Cooperation Agreement; breach of contract based on Apple’s failure to pay amounts owed to the Company under a Statement of Work relating to a high-speed feature of the Company’s chipsets; breach of the parties’ software agreement; and violation of California Unfair Competition Law based on Apple’s threatening the Company to prevent it from promoting the superior performance of the Company’s own chipsets. The Company also seeks declaratory judgments that the Company has satisfied its FRAND commitments with respect to Apple, and that the Company’s SULAs with the contract manufacturers do not violate either competition law or the Company’s FRAND commitments. On June 19, 2017, Apple filed a Partial Motion to Dismiss the Company’s counterclaim for violation of the California Unfair Competition Law. The court granted that motion on November 8, 2017. On June 20, 2017, Apple filed an Answer and Affirmative Defenses to the rest of the Company’s counterclaims, and also filed an Amended Complaint reiterating all of the original claims and adding claims for declaratory judgments of invalidity of the nine patents that are subject to declaratory judgment claims in the original complaint, adding new declaratory judgment claims for non-infringement, invalidity and a declaration of royalties for nine more patents. Apple also added claims for declaratory judgments that certain of the Company’s agreements are unenforceable. On July 21, 2017, the Company filed an Answer to Apple’s Amended Complaint as well as a motion to dismiss the new declaratory judgment claims for non-infringement, invalidity and a declaration of royalties for the nine additional patents. The court granted the Company’s motion on November 8, 2017. On July 18, 2017, Apple filed a motion to consolidate this action with QUALCOMM Incorporated v. Compal Electronics, Inc., et al., discussed below, and on September 13, 2017, the court granted that motion. Fact discovery is set to close in these cases on May 11, 2018. A final pretrial conference is scheduled for September 28, 2018. The trials have not been scheduled. On January 23, 2017, an Apple subsidiary in China filed two complaints against the Company in the Beijing Intellectual Property Court. On March 31, 2017, the court granted an application by Apple Inc. to join the actions as a plaintiff, and Apple amended the complaints. One of the complaints alleges a violation of China’s Anti-Monopoly Law (AML complaint); the other complaint requests a determination of the terms of a patent license between the Company and Apple (FRAND complaint). The AML complaint alleges that (i) the Company has abused its dominant position in communication standard-essential patents licensing markets and certain global baseband chipset markets by charging and offering royalty terms that were excessively high; (ii) the Company refused to license certain implementers of standardized technologies, including Apple and baseband chipset manufacturers; (iii) the Company forced Apple to use only the Company’s products and services; and (iv) the Company bundled licenses to standard-essential patents with licenses to non-standard-essential patents and imposed other unreasonable or discriminatory trading terms on Apple in violation of the AML. The AML complaint seeks a decree that the Company cease the alleged abuse of dominance, as well as damages in the amount of 1 billion Chinese Renminbi (approximately $158 million based on the exchange rate on March 25, 2018 ). The FRAND complaint makes allegations similar to the AML complaint and further alleges that the Company refused to offer licensing terms for the Company’s cellular standard-essential patents consistent with the Company’s FRAND licensing commitments and failed to provide to Apple certain information about the Company’s patents. The FRAND complaint seeks (i) a declaration that the license terms offered to Apple by the Company for its mobile communication standard essential patents are not compliant with FRAND; (ii) an order that the Company cease its actions that allegedly violate the Company’s FRAND obligations, including pricing on unfair, unreasonable and excessive terms, refusing to deal, imposing unreasonable trade conditions and failing to provide information on the Company’s patents; and (iii) a determination of FRAND-compliant license terms for the Company’s Chinese standard-essential patents. Apple also seeks its expenses in each of the cases. On August 3, 2017, the Company received three additional complaints filed by an Apple subsidiary and Apple Inc. against the Company in the Beijing Intellectual Property Court. The complaints seek declaratory judgments of non-infringement of three Qualcomm patents. The Company has filed jurisdictional and other objections to the complaints. On February 16, 2017, Apple and one of its Japanese subsidiaries filed four complaints against the Company in the Tokyo District Court. In three of the complaints, Apple seeks declaratory judgment of non-infringement by Apple of three of the Company’s patents. Apple further seeks a declaration that the Company’s patent rights with respect to those three patents are exhausted by the Company’s SULAs with the contract manufacturers of Apple’s devices as well as the Company’s sale of baseband chipsets. Apple also seeks an award of fees. On January 30, 2018, the court dismissed one of the complaints, finding that Apple lacked standing based on the facts it alleged in that complaint. The court has yet to rule on whether Apple has standing in the remaining complaints. On May 15, 2017, the Company learned of the fourth complaint. In that complaint, Apple and one of its Japanese subsidiaries seek damages of 100 million Japanese Yen (approximately $1 million based on the exchange rate on March 25, 2018 ) from the Company, based on allegations that the Company violated the Japanese Antimonopoly Act and the Japanese Civil Code. In particular, the fourth complaint alleges that (i) the Company holds a monopoly position in the market for baseband processor chipsets that implement certain cellular standards; (ii) the Company collects double royalties through its license agreements and the sale of chipsets; (iii) the Company refused to grant Apple a license on FRAND terms and forced Apple to execute a rebate agreement under unreasonable conditions; (iv) the Company refused to grant Apple a direct license; and (v) the Company demanded a license fee based on the market value of the total device. The Company has filed jurisdictional and other objections to all four of the complaints. On March 2, 2017, the Company learned that Apple and certain of its European subsidiaries issued a Claim Form against the Company in the UK High Court of Justice, Chancery Division, Patents Court on January 23, 2017. Apple subsequently filed an Amended Claim Form and Particulars of Claim. Both the Amended Claim Form and the Particulars of Claim allege several European competition law claims, including refusal to license competing chipmakers, failure to offer Apple a direct license to the Company’s standard-essential patents on FRAND terms, demanding excessive royalties for the Company’s standard-essential patents, and demanding excessive license fees for the use of the Company’s standard-essential patents in connection with chipsets purchased from the Company. Apple also seeks declarations that the Company is obliged to offer a direct patent license to Apple in respect of standard-essential patents actually practiced on fair, reasonable and non-discriminatory terms and that using the Company’s chipsets does not infringe any of the Company’s patents because the Company exhausted its patent rights. Finally, Apple seeks declarations that five of the Company’s European (UK) patents are invalid and not essential, and an order that each of those patents be revoked. On April 18, 2017, Apple and one of its Taiwanese subsidiaries filed a complaint against the Company in the Taiwan Intellectual Property Court alleging that the Company has abused a dominant market position in licensing wireless standard-essential patents and selling baseband chipsets, including improper pricing, refusal to deal, exclusive dealing, tying, imposing unreasonable trade terms and discriminatory treatment. The complaint seeks rulings that the Company not use the sales price of the terminal device as the royalty base for standard-essential patents; not leverage its cellular standard-essential patents to obtain licenses of its non-standard-essential patents or demand cross-licenses without proper compensation; not refuse, reduce, delay or take any other action to limit the supply of its baseband chipsets to non-licensees; that the Company must license its standard-essential patents on FRAND terms; and that the Company shall not, based on standard-essential patents, seek injunctions. The complaint also seeks damages of 10 million Taiwan Dollars (less than $1 million based on the exchange rate on March 25, 2018 ), among other relief. On November 30, 2017, Apple and certain of its Chinese subsidiaries filed three patent infringement complaints against the Company in the Beijing Intellectual Property Court. Apple seeks damages and costs. The Company has filed jurisdictional objections to the complaints. The Company believes Apple’s claims in the above matters are without merit. QUALCOMM Incorporated v. Compal Electronics, Inc. et al .: On May 17, 2017, the Company filed a complaint in the United States District Court for the Southern District of California against Compal Electronics, Inc. (Compal), FIH Mobile, Ltd., Hon Hai Precision Industry Co., Ltd. (together with FIH Mobile, Ltd., Foxconn), Pegatron Corporation (Pegatron) and Wistron Corporation (Wistron) asserting claims for injunctive relief, specific performance, declaratory relief and damages stemming from the defendants’ breach of contracts by ceasing the payment of royalties for iPhones and other devices which they manufacture for Apple. On July 17, 2017, Compal, Foxconn, Pegatron and Wistron each filed third-party complaints for contractual indemnity against Apple seeking to join Apple as a party to the action. On July 18, 2017, Apple filed an answer to these third-party complaints acknowledging its indemnity agreements and consenting to be joined. On July 18, 2017, the defendants filed an Answer and Counterclaims to the complaint, asserting defenses and counterclaims similar to allegations previously made by Apple in the Apple Inc. v. QUALCOMM Incorporated case in the Southern District of California discussed above. In addition, the defendants asserted certain new claims, including claims under Section 1 of the Sherman Act and California’s Cartwright Act. The defendants seek damages, declaratory relief, injunctive relief, restitution of certain royalties and other relief. On July 18, 2017, Apple filed a motion to consolidate this action with the Apple Inc. v. QUALCOMM Incorporated case in the Southern District of California. On September 13, 2017, the court granted Apple’s consolidation motion. Fact discovery is set to close in these cases on May 11, 2018. A final pretrial conference is scheduled for September 28, 2018. No trial date has been set. The Company believes Compal’s, Foxconn’s, Pegatron’s and Wistron’s claims in the above matter are without merit. QUALCOMM Incorporated v. Apple Inc. : On July 6, 2017, the Company filed a complaint against Apple in the United States District Court for the Southern District of California asserting claims for damages and injunctive relief for infringement of six of the Company’s patents directed to a variety of features found in iPhone models. On July 7, 2017, the Company filed a complaint against Apple in the United States International Trade Commission (ITC) requesting that the ITC institute an investigation pursuant to Section 337 of the Tariff Act of 1930 based on Apple’s infringement of the same six patents. The Company is seeking a limited exclusion order and cease and desist order against importation of iPhone models that do not contain a Qualcomm brand baseband processor. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. Apple filed an Answer and Counterclaims in the District Court case on September 26, 2017. On November 29, 2017, Apple filed a First Amended Answer and Counterclaims asserting that the Company’s Snapdragon processors infringe eight Apple patents. On August 8, 2017, the ITC issued a notice of institution of an investigation. On August 25, 2017, the Company withdrew allegations as to one patent in both the ITC investigation and the District Court case. On April 25, 2018, the Company withdrew allegations as to two additional patents in the ITC investigation, but not the district court case, in order to satisfy certain briefing limitations and to narrow the issues for hearing. The ITC investigation is scheduled for evidentiary hearing by the Administrative Law Judge (ALJ) from June 18-26, 2018. The ALJ’s Initial Determination on the merits is due on September 14, 2018, and the target date for final determination by the ITC is set for January 14, 2019. A case management conference in the district court case was held on January 26, 2018. On March 2, 2018, the court granted the Company’s motion to sever, for separate trial, Apple’s counterclaims for patent infringement against the Company. With respect to the Company’s patent claims against Apple, fact discovery is scheduled to close on June 11, 2018 and trial is scheduled to begin on March 4, 2019. With respect to Apple’s patent claims against the Company, fact discovery is scheduled to close on December 3, 2018, and trial is scheduled to begin on July 15, 2019. On November 1, 2017, the Company filed a complaint against Apple in San Diego Superior Court for breach of the Master Software Agreement between the companies. The complaint recounts instances when Apple failed to protect the Company’s software as required by the agreement and failed to provide sufficient information to which the Company is entitled under the agreement in order to understand whether other breaches have occurred. The complaint seeks specific performance of Apple’s obligations to cooperate with an audit of its handling of the Company’s software, damages and injunctive relief. Apple filed its Answer to the Complaint on December 29, 2017. A case management conference is scheduled for July 20, 2018. No trial date has been set. On November 29, 2017, the Company filed three additional complaints against Apple in the United States District Court for the Southern District of California alleging infringement of a total of 16 of the Company’s patents. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. The complaints seek damages and injunctive relief. On January 22, 2018, Apple filed Answers and Counterclaims in each of these cases seeking declaratory judgments that the asserted patents are invalid and/or not infringed. Case management conferences were held on February 7, 2018 and March 1, 2018. Tutorials and presentation of claim construction arguments for two of the cases are scheduled for September 10 and 11, 2018 and October 10 and 11, 2018, respectively. For the case relating to the November 30, 2017 ITC investigation described below, a mandatory settlement conference is scheduled for October 19, 2018, fact discovery is scheduled to close on March 13, 2019, and trial is scheduled to begin on October 21, 2019. No trial date has been set for the other two cases. On November 30, 2017, the Company filed a complaint in the ITC accusing certain Apple products of infringing five of the Company’s patents. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. The Company seeks a limited exclusion order and cease and desist order against importation of iPhone models that do not contain a Qualcomm brand baseband processor. On January 2, 2018, the ITC instituted an investigation. The ITC investigation is scheduled for evidentiary hearing by the Administrative Law Judge (ALJ) from September 17 through 21, 2018. The ALJ’s Initial Determination on the merits is due on January 22, 2019, and the target date for final determination by the ITC is set for May 22, 2019. On July 17, 2017, the Company filed complaints against Apple and certain of its subsidiaries in the Federal Republic of Germany, asserting infringement of one of the Company’s patents in the Mannheim District Court and infringement of another patent in the Munich District Court. On October 2, 2017, the Company filed claim extensions in these actions against Apple and certain of its subsidiaries, asserting infringement of two additional patents in the Mannheim District Court and infringement of five additional patents in the Munich District Court. The complaints seek remedies including, among other relief, declaratory relief confirming liability on the merits for damages and injunctive relief. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. On September 29, 2017, the Company filed three complaints against Apple and certain of its subsidiaries in the Beijing (China) Intellectual Property Court, asserting infringement of three of the Company’s patents. The complaints seek remedies including injunctive relief and costs. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. On November 13, 2017, the Company filed three complaints against certain of Apple’s subsidiaries in the Beijing (China) High People’s Court, asserting infringement of three of the Company’s patents. The complaints seek remedies including injunctive relief, damages and costs. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. On December 19, 2017, Apple’s subsidiaries filed invalidation requests with the Chinese Patent Review Board (PRB) for each of the three asserted patents. PRB hearings regarding the validity of the patents are scheduled for April and May 2018. On November 15, 2017, the Company filed three complaints against certain of Apple’s subsidiaries in the Fuzhou (China) Intermediate People’s Court, asserting infringement of three of the Company’s patents. The complaints seek remedies including injunctive relief and costs. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. The court has set hearings on the merits of infringement to begin on August 16, 2018 for one of the cases and August 18, 2018 for the other two cases. Apple’s subsidiaries filed invalidation requests with the Chinese Patent Review Board (PRB) on December 8, 2017 for one of the patents and December 11, 2017 for the other two patents. PRB hearings regarding the validity of the patents are scheduled for April and May 2018. On January 12, 2018, the Company filed three additional complaints against Apple and certain of its subsidiaries in the Fuzhou (China) Intermediate People’s Court, asserting infringement of three additional Company patents. The complaints seek remedies including injunctive relief and costs. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. Also on January 12, 2018, the Company filed three complaints against certain of Apple’s subsidiaries in the Jiangsu (China) High People’s Court, asserting infringement of three of the Company’s patents. The complaints seek remedies including injunctive relief, damages and costs. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. On February 5, 2018 and March 5, 2018, Apple’s subsidiaries filed invalidation requests with the PRB. PRB hearings regarding the validity of the patents are expected to begin in June 2018. On February 2, 2018, the Company filed three additional complaints against certain of Apple’s subsidiaries in the Qingdao (China) Intermediate People’s Court, asserting infringement of three of the Company’s patents. The complaints seek remedies including injunctive relief and costs. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. On February 26, 2018, Apple’s subsidiaries filed invalidation requests with the PRB. PRB hearings regarding the validity of the patents are expected to begin in June 2018. Also on February 2, 2018, the Company filed three additional complaints against certain of Apple’s subsidiaries in the Guangzhou (China) Intermediate People’s Court, asserting infringement of three of the Company’s patents. The complaints seek remedies including injunctive relief and costs. The patents have not been declared as essential to any standards organization and are not subject to commitments to license on FRAND terms. On March 14, 2018, Apple’s subsidiaries filed invalidation requests with the PRB. PRB hearings regarding the validity of the patents are expected to begin in July 2018. The Company believes Apple’s counterclaims and invalidation requests in the above matters are without merit. 3226701 Canada, Inc. v. QUALCOMM Incorporated et al: On November 30, 2015, plaintiffs filed a securities class action complaint against the Company and certain of its current and former officers in the United States District Court for the Southern District of California. On April 29, 2016, plaintiffs filed an amended complaint. On January 27, 2017, the court dismissed the amended complaint in its entirety, granting leave to amend. On March 17, 2017, plaintiffs filed a second amended complaint, alleging that the Company and certain of its current and former officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, by making false and misleading statements regarding the Company’s business outlook and product development between November 19, 2014 and July 22, 2015. The second amended complaint sought unspecified damages, interest, attorneys’ fees and other costs. On May 8, 2017, the Company filed a motion to dismiss the second amended complaint. On October 20, 2017, the court entered an order granting in part the Company’s motion to dismiss, and on November 29, 2017, the court entered an order granting the remaining portions of the Company’s motion to dismiss. On December 28, 2017, the plaintiffs filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit. The Company believes the plaintiffs’ claims are without merit. Consolidated Securities Class Action Lawsuit: On January 23, 2017 and January 26, 2017, securities class action complaints were filed by purported stockholders of the Company in the United States District Court for the Southern District of California against the Company and certain of its current and former officers and directors. The complaints alleged, among other things, that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, by making false and misleading statements and omissions of material fact in connection with certain allegations that the Company is or was engaged in anticompetitive conduct. The complaints sought unspecified damages, interest, fees and costs. On May 4, 2017, the court consolidated the two actions and appointed lead plaintiffs. On July 3, 2017, the lead plaintiffs filed a consolidated amended complaint asserting the same basic theories of liability and requesting the same basic relief. On September 1, 2017, the defendants filed a motion to dismiss the consolidated amended complaint. The court has not yet ruled on the motion. The Company believes the plaintiffs’ claims are without merit. Consumer Class Action Lawsuit: Since January 18, 2017, a number of consumer class action complaints have been filed against the Company in the United States District Courts for the Southern and Northern Districts of California, each on behalf of a putative class of purchasers of cellular phones and other cellular devices. Twenty-two such cases remain outstanding. In April 2017, the Judicial Panel on Multidistrict Litigation transferred the cases that had been filed in the Southern District of California to the Northern District of California. On May 15, 2017, the court entered an order appointing the plaintiffs’ co-lead counsel, and on May 25, 2017, set a trial date of April 29, 2019. On July 11, 2017, the plaintiffs filed a consolidated amended complaint alleging that the Company violated California and federal antitrust and unfair competition laws by, among other things, refusing to license standard-essential patents to its competitors, conditioning the supply of certain of its baseband chipsets on the purchaser first agreeing to license the Company’s entire patent portfolio, entering into exclusive deals with companies including Apple Inc., and charging unreasonably high royalties that do not comply with the Company’s commitments to standard setting organizations. The complaint seeks unspecified damages and disgorgement and/or restitution, as well as an order that the Company be enjoined from further unlawful conduct. On August 11, 2017, the Company filed a motion to dismiss the consolidated amended complaint. On November 10, 2017, the court |
Segment Information (Notes)
Segment Information (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is organized on the basis of products and services and has three reportable segments. The Company conducts business primarily through its QCT (Qualcomm CDMA Technologies) semiconductor business and its QTL (Qualcomm Technology Licensing) licensing business. QCT develops and supplies integrated circuits and system software based on CDMA, OFDMA and other technologies for use in mobile devices, wireless networks, devices used in the Internet of Things (IoT), broadband gateway equipment, consumer electronic devices and automotive telematics and infotainment systems. QTL 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. The Company’s QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments and includes revenues and related costs associated with development contracts with an equity method investee. The Company also has nonreportable segments, including its mobile health, data center, small cell and other wireless technology and service initiatives. The Company evaluates the performance of its segments based on earnings (loss) before income taxes (EBT). In fiscal 2018, all of the costs related to pre-commercial research and development of 5G (fifth generation) technology, of which $115 million and $216 million was recorded in the three and six months ended March 25, 2018, respectively, are included in unallocated corporate research and development expenses, whereas similar costs related to the research and development of other technology, including 3G (third generation) and 4G (fourth generation) technology, were recorded in both the QCT and QTL segments. The table below presents revenues, EBT and total assets for reportable segments (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Revenues QCT $ 3,897 $ 3,676 $ 8,548 $ 7,777 QTL 1,260 2,249 2,559 4,060 QSI 30 — 60 14 Reconciling items 74 (909 ) 162 (836 ) Total $ 5,261 $ 5,016 $ 11,329 $ 11,015 EBT QCT $ 608 $ 475 $ 1,563 $ 1,199 QTL 850 1,959 1,738 3,492 QSI 40 — 51 (17 ) Reconciling items (1,140 ) (1,577 ) (3,020 ) (2,947 ) Total $ 358 $ 857 $ 332 $ 1,727 March 25, September 24, Assets QCT $ 3,336 $ 3,830 QTL 1,907 1,735 QSI 1,193 1,037 Reconciling items 57,690 58,884 Total $ 64,126 $ 65,486 Reconciling items for revenues and EBT in the previous table were as follows (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Revenues Nonreportable segments $ 74 $ 65 $ 162 $ 138 Reduction to revenues related to BlackBerry arbitration decision — (974 ) — (974 ) $ 74 $ (909 ) $ 162 $ (836 ) EBT Reduction to revenues related to BlackBerry arbitration decision $ — $ (974 ) $ — $ (974 ) Unallocated cost of revenues (111 ) (119 ) (228 ) (213 ) Unallocated research and development expenses (271 ) (277 ) (551 ) (546 ) Unallocated selling, general and administrative expenses (258 ) (138 ) (420 ) (283 ) Unallocated other expenses (Note 2) (310 ) (78 ) (1,493 ) (954 ) Unallocated interest expense (179 ) (106 ) (348 ) (195 ) Unallocated investment and other income, net 82 223 206 407 Nonreportable segments (93 ) (108 ) (186 ) (189 ) $ (1,140 ) $ (1,577 ) $ (3,020 ) $ (2,947 ) Unallocated acquisition-related expenses were comprised as follows (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Cost of revenues $ 102 $ 106 $ 208 $ 191 Research and development expenses 2 12 3 14 Selling, general and administrative expenses 214 57 290 118 |
Acquisitions (Notes)
Acquisitions (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Acquisitions [Abstract] | |
Acquisitions | Acquisitions On October 27, 2016 , the Company announced a definitive agreement (the Purchase Agreement) under which Qualcomm River Holdings, B.V. (Qualcomm River Holdings), an indirect, wholly owned subsidiary of QUALCOMM Incorporated, will acquire NXP Semiconductors N.V. (NXP). NXP is a leader in high-performance, mixed-signal semiconductor electronics in automotive, broad-based microcontrollers, secure identification, network processing and RF power products. Pursuant to the Purchase Agreement, Qualcomm River Holdings has commenced a tender offer to acquire all of the issued and outstanding common shares of NXP. On February 20, 2018 , Qualcomm River Holdings and NXP entered into Amendment No. 1 to the Purchase Agreement, which (i) increased the price payable in the tender offer from $110.00 per share in cash to $127.50 per share in cash, representing estimated total cash consideration to be paid to NXP’s shareholders of $44 billion , and (ii) reduced the Minimum Condition (as defined in the Purchase Agreement) from 80% of the issued and outstanding common shares of NXP to 70% of the issued and outstanding common shares of NXP. On April 19, 2018 , Qualcomm River Holdings and NXP entered into Amendment No. 2 to the Purchase Agreement (Amendment No. 2), which, among other things, extended the End Date (as defined in the Purchase Agreement) from April 25, 2018 to July 25, 2018 . The transaction is subject to receipt of regulatory clearance from the Ministry of Commerce in the People’s Republic of China (MOFCOM) and other closing conditions, including the tender of at least 70% of the issued and outstanding common shares of NXP in the tender offer. At an Extraordinary General Meeting of NXP’s shareholders held on January 27, 2017, NXP’s shareholders approved certain matters relating to the transaction, including the appointment of designees of Qualcomm River Holdings to NXP’s board of directors (effective upon the closing of the transaction) and certain transactions that are intended to be consummated after the completion of the tender offer. In May 2017, the Company issued an aggregate principal amount of $11.0 billion of unsecured floating- and fixed-rate notes with varying maturities, of which a portion will be used to fund the purchase price and other related transactions. In addition, the Company has secured $4.0 billion and $3.0 billion in committed financing through the 2016 Term Loan Facility and the 2018 Term Loan Facility, respectively, which are expected to be drawn on at the close of the NXP transaction. The Company has also secured $3.0 billion in committed financing through the 2018 Revolving Credit Facility, which is available, in part, to finance the transaction (Note 5). The remaining amount will be funded with cash held by foreign entities. Qualcomm River Holdings and NXP may terminate the Purchase Agreement under certain circumstances. If the Purchase Agreement is terminated in certain circumstances, including termination by NXP to enter into a superior proposal for an alternative acquisition transaction or a termination following a change of recommendation by NXP’s board of directors, NXP will be required to pay Qualcomm River Holdings a termination fee of $1.25 billion . If the Purchase Agreement is terminated under certain circumstances involving the failure to obtain the required regulatory approvals or the failure of NXP to complete certain pre-closing reorganization steps in all material respects, Qualcomm River Holdings will be required to pay NXP a termination fee of $2.0 billion . Under Amendment No. 2, in addition to its existing rights, NXP will be entitled to receive the termination fee (i) if the Purchase Agreement is terminated in accordance with its terms for any reason (subject to certain exceptions) and, at the time of any such termination, approval by MOFCOM, or in any jurisdiction where the parties’ previously obtained clearance will expire or where the applicable antitrust authority has required or requested a resubmission for clearance, has not been received, or (ii) at any time after July 25, 2018 if, at such time, approval by MOFCOM, or in any jurisdiction where the parties’ previously obtained clearance will expire or where the applicable antitrust authority has required or requested a resubmission for clearance, has not been received. In November 2016, as required by the Purchase Agreement, Qualcomm River Holdings entered into four letters of credit for an aggregate amount of $2.0 billion related to the potential termination fee payable to NXP. Pursuant to the terms of each letter of credit, NXP will have the right to draw amounts to fund certain termination compensation owed by Qualcomm River Holdings to NXP if the Purchase Agreement is terminated under certain circumstances, as described above. The letters of credit expire on June 30, 2018 or if drawn on by NXP or surrendered by Qualcomm River Holdings, provided that under Amendment No. 2, Qualcomm River Holdings is required to cause the letters of credit to be amended to, among other things, extend the expiration date. Each letter of credit is required to be fully cash collateralized in an amount equal to 100% of its face value through deposits with the issuers of the letters of credit. Qualcomm River Holdings is restricted from using the funds deposited as collateral while the letters of credit are outstanding. At March 25, 2018 , the letters of credit were fully collateralized through bank time and demand deposits, which were included in other noncurrent assets. |
Cost Plan (Notes)
Cost Plan (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Note 9. Cost Plan On January 16, 2018 , the Company announced a Cost Plan designed to align the Company’s cost structure to its long-term margin targets. As part of this plan, the Company has initiated a series of targeted actions across the Company’s businesses to reduce annual costs by $1 billion , excluding incremental costs resulting from any future acquisition of a business. The Company expects these cost reductions to be fully captured in fiscal 2019 . In connection with this plan, the Company expects to incur total restructuring and restructuring-related charges of approximately $400 million to $525 million , which primarily consist of severance costs, and the majority of which are expected to be settled in cash. During the three months ended March 25, 2018 , the Company recorded restructuring and restructuring-related charges of $310 million in other expenses (Note 2), which consisted of restructuring charges of $277 million , primarily related to severance costs, and restructuring-related charges of $33 million related to certain asset impairments. A negligible amount of cash payments was made related to this plan in the three months ended March 25, 2018 . |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Notes to Financial Statements [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 25, 2018 (in millions): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 26,328 $ 10,573 $ — $ 36,901 Marketable securities: U.S. Treasury securities and government-related securities 10 2 — 12 Corporate bonds and notes — 1,498 — 1,498 Mortgage- and asset-backed and auction rate securities — 73 35 108 Equity and preferred securities and equity funds 40 — — 40 Total marketable securities 50 1,573 35 1,658 Derivative instruments — 7 — 7 Other investments 408 — 13 421 Total assets measured at fair value $ 26,786 $ 12,153 $ 48 $ 38,987 Liabilities Derivative instruments $ — $ 65 $ — $ 65 Other liabilities 408 — 194 602 Total liabilities measured at fair value $ 408 $ 65 $ 194 $ 667 Activity between Levels of the Fair Value Hierarchy. There were no transfers between Level 1 and Level 2 in the six months ended March 25, 2018 and March 26, 2017 . There were no transfers of marketable securities into or out of Level 3 during the six months ended March 25, 2018 and March 26, 2017 . Other investments and other liabilities included in Level 3 at March 25, 2018 were comprised of convertible debt instruments issued by private companies and contingent consideration related to business combinations, respectively. There were no transfers of convertible debt instruments or contingent consideration amounts into or out of Level 3 during the six months ended March 25, 2018 and March 26, 2017 . |
Marketable Securities (Notes)
Marketable Securities (Notes) | 6 Months Ended |
Mar. 25, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities were comprised as follows (in millions): Current Noncurrent March 25, September 24, March 25, September 24, Available-for-sale: U.S. Treasury securities and government-related securities $ 12 $ 23 $ — $ 959 Corporate bonds and notes 1,498 2,014 — 271 Mortgage- and asset-backed and auction rate securities 73 93 35 40 Equity and preferred securities and equity funds 40 36 — — Debt funds — 109 — — Total available-for-sale 1,623 2,275 35 1,270 Time deposits 2 4 — — Total marketable securities $ 1,625 $ 2,279 $ 35 $ 1,270 The contractual maturities of available-for-sale debt securities were as follows (in millions): March 25, Years to Maturity Less than one year $ 610 One to five years 900 Five to ten years — Greater than ten years — No single maturity date 108 Total $ 1,618 Debt securities with no single maturity date included mortgage- and asset-backed securities and auction rate securities. The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions): For the three months ended For the six months ended March 25, March 26, March 25, March 26, Gross realized gains $ 11 $ 57 $ 13 $ 303 Gross realized losses — — — (107 ) Net realized gains $ 11 $ 57 $ 13 $ 196 Available-for-sale securities were comprised as follows (in millions): March 25, 2018 September 24, 2017 Equity securities Cost $ 8 $ 8 Unrealized gains 32 28 Fair value 40 36 Debt securities (including debt funds) Cost 1,621 3,497 Unrealized gains 3 13 Unrealized losses (6 ) (1 ) Fair value 1,618 3,509 $ 1,658 $ 3,545 In connection with the proposed NXP transaction (Note 8), the Company divested a substantial portion of its marketable securities portfolio in order to finance, in part, that transaction. Marketable securities that are expected to be used to finance the NXP transaction were fully liquidated and classified as cash and cash equivalents at March 25, 2018 . Given the Company’s intention to sell certain marketable securities, the Company recorded other-than-temporary impairment losses in fiscal 2017 for certain marketable securities and no additional losses were recorded in the six months ended March 25, 2018 (Note 2). For the available-for-sale securities that are not expected to be sold to finance the NXP transaction, the Company concluded that the unrealized losses were temporary at March 25, 2018 . Further, for debt securities with unrealized losses, the Company did not have the intent to sell, nor was it more likely than not that the Company would be required to sell, such securities before recovery or maturity. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Mar. 25, 2018 | |
Basis of Presentation [Abstract] | |
Fiscal Period, Policy | The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three-month and six-month periods ended March 25, 2018 and March 26, 2017 included 13 weeks and 26 weeks , respectively. |
Use of Estimates, Policy | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. |
Earnings Per Share, Policy | Earnings (Loss) Per Common Share. Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to Qualcomm by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed by dividing net income attributable to Qualcomm by the combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans, if any, and the weighted-average number of common shares outstanding during the reporting period. Due to the net loss for the six months ended March 25, 2018 , all of the common share equivalents issuable under share-based compensation plans had an anti-dilutive effect and were therefore excluded from the computation of diluted loss per share. |
Recent Accounting Pronouncements, Policy | Recent Accounting Pronouncements. Share-based Awards: In March 2016, the Financial Accounting Standards Board (FASB) issued new guidance that changed the accounting for share-based awards, including income taxes, classification of awards and classification in the statement of cash flows. The Company adopted the new guidance in the first quarter of fiscal 2018. In accordance with the new guidance, excess tax benefits or deficiencies associated with share-based awards are recognized through earnings when the awards vest or settle, rather than in stockholders’ equity. In the six months ended March 25, 2018 , net excess tax benefits associated with share-based awards of $21 million were recognized in the Company’s income tax provision. In addition, cash flows related to excess tax benefits are presented as an operating activity and cash payments made on an employee’s behalf for withheld shares are presented as financing activities, with the prior periods adjusted accordingly. As a result of these changes, amounts for the six months ended March 26, 2017 have been adjusted as follows: net cash provided by operating activities increased by $212 million with a corresponding offset to net cash used in financing activities. The new guidance also impacts the Company’s earnings per share calculation as the estimate of dilutive common share equivalents under the treasury stock method no longer assumes that the estimated tax benefits realized when an award is settled are used to repurchase shares. There was no impact of this change on the Company’s calculation of earnings per share as a result of the net loss for the six months ended March 25, 2018 . The Company elected to continue its practice of estimating forfeitures expected to occur in determining the amount of compensation cost to be recognized each period. Revenue Recognition: In May 2014, the FASB issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The Company will adopt the new guidance in the first quarter of fiscal 2019 using the modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to the opening retained earnings balance. Given the scope of work required to implement the recognition and disclosure requirements under the new guidance, the Company has made progress in the identification of changes to policy, processes, systems and controls, and the Company continues to assess data availability and presentation necessary to meet the additional disclosure requirements of the guidance in the notes to the consolidated financial statements. The Company currently expects the adoption of this new guidance to most significantly impact its licensing business. Specifically, the Company expects a change in the timing of revenues recognized from sales-based royalties. The Company currently recognizes sales-based royalties as revenues in the period in which such royalties are reported by licensees, which is after the conclusion of the quarter in which the licensees’ sales occur and when all other revenue recognition criteria are met. Under the new guidance, the Company will be required to estimate and recognize sales-based royalties in the period in which the associated sales occur, resulting in an acceleration of revenue recognition compared to the current method. Upon adoption of the new guidance, licenses to use portions of the Company’s intellectual property portfolio will be considered one performance obligation, and license fees will be recognized as revenues on a straight-line basis over the term of the license agreement, which is similar to the recognition of license revenues under the current guidance. The Company currently accounts for customer incentive arrangements in its licensing and semiconductor businesses, including volume-related and other pricing rebates or cost reimbursements for marketing and other activities involving certain of the Company’s products and technologies, in part based on the maximum potential liability. Under the new guidance, the Company will estimate the amount of all customer incentives. The Company does not otherwise expect the adoption of the new guidance to have a material impact on its businesses. Financial Assets: In January 2016, the FASB issued new guidance on classifying and measuring financial instruments, which requires that (i) all equity investments, other than equity-method investments, in unconsolidated entities generally be measured at fair value through earnings and (ii) when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk be recognized separately in other comprehensive income. Additionally, it changes the disclosure requirements for financial instruments. The Company will adopt the new guidance in the first quarter of fiscal 2019 and is in the process of determining the effects the adoption will have on its consolidated financial statements. In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new guidance will be effective for the Company starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements and whether to adopt the new guidance early. Leases: In February 2016, the FASB issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The Company will adopt the new guidance in the first quarter of fiscal 2020 and expects to use the modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to opening retained earnings in the year of adoption. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements and whether to apply any of the optional practical expedients. Hedge Instruments: In August 2017, the FASB issued new guidance that expands and refines hedge accounting for both financial and non-financial risks, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes targeted improvements related to the assessment of hedge effectiveness. The new guidance also modifies disclosure requirements for hedging activities. The Company plans to adopt the new guidance in the first quarter of fiscal 2019 and does not expect the effects of the adoption to have a material impact on its consolidated financial statements. Other: In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments on the statement of cash flows. The Company will adopt the new guidance in the first quarter of fiscal 2019 and does not expect the effects of the adoption to have a material impact on its consolidated statements of cash flows. In October 2016, the FASB issued new guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The Company will adopt the new guidance in the first quarter of fiscal 2019 and is in the process of determining the effects the adoption will have on its consolidated financial statements. |
Segment Reporting, Policy | The Company evaluates the performance of its segments based on earnings (loss) before income taxes (EBT). |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Basis of Presentation [Abstract] | |
Schedule of diluted earnings per share | The following table provides information about the diluted earnings per share calculation (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Dilutive common share equivalents included in diluted shares 12.2 11.3 — 14.2 Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period 0.1 10.8 44.9 5.4 |
Share-based compensation expense related to all share-based awards | Total share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Cost of revenues $ 10 $ 10 $ 21 $ 20 Research and development 151 155 307 308 Selling, general and administrative 61 81 142 157 Share-based compensation expense before income taxes 222 246 470 485 Related income tax benefit (29 ) (36 ) (77 ) (84 ) $ 193 $ 210 $ 393 $ 401 |
Composition of Certain Financ20
Composition of Certain Financial Statement Items (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories (in millions) March 25, September 24, Raw materials $ 93 $ 103 Work-in-process 643 799 Finished goods 1,061 1,133 $ 1,797 $ 2,035 |
Other Current Liabilities | Other Current Liabilities (in millions) March 25, September 24, Customer incentives and other customer-related liabilities $ 2,882 $ 2,804 Accrual for EC fine (Note 6) 1,232 — Income taxes payable 575 312 Accrual for TFTC fine (Note 6) 156 778 Other 864 862 $ 5,709 $ 4,756 |
Investment and Other Income, Net | Investment and Other Income, Net (in millions) Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Interest and dividend income $ 154 $ 153 $ 280 $ 320 Net realized gains on marketable securities 3 67 13 206 Net realized gains on other investments 47 21 60 30 Impairment losses on marketable securities — (3 ) (1 ) (125 ) Impairment losses on other investments (11 ) (2 ) (19 ) (23 ) Net gains on derivative investments 10 13 9 20 Equity in net losses of investees (17 ) (14 ) (38 ) (11 ) Net losses on foreign currency transactions (90 ) — (93 ) — $ 96 $ 235 $ 211 $ 417 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Changes in Stockholders Equity | Changes in stockholders’ equity in the six months ended March 25, 2018 were as follows (in millions): Total Stockholders’ Equity Balance at September 24, 2017 $ 30,746 Net loss (5,590 ) Other comprehensive income 161 Common stock issued under employee benefit plans and related tax benefits 343 Share-based compensation 499 Tax withholdings related to vesting of share-based payments (196 ) Dividends (1,719 ) Stock repurchases (425 ) Balance at March 25, 2018 $ 23,819 |
Changes in Accumulated Other Comprehensive Income | Changes in the components of accumulated other comprehensive income, net of income taxes, in stockholders’ equity in the six months ended March 25, 2018 were as follows (in millions): Foreign Currency Translation Adjustment Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities Net Unrealized Gain (Loss) on Other Available-for-Sale Securities Net Unrealized (Loss) Gain on Derivative Instruments Other Gains Total Accumulated Other Comprehensive Income Balance at September 24, 2017 $ 147 $ 23 $ 218 $ (8 ) $ 4 $ 384 Other comprehensive income (loss) before reclassifications 173 — (1 ) (6 ) — 166 Reclassifications from accumulated other comprehensive income — 1 (9 ) 3 — (5 ) Other comprehensive income (loss) 173 1 (10 ) (3 ) — 161 Balance at March 25, 2018 $ 320 $ 24 $ 208 $ (11 ) $ 4 $ 545 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Dividends [Abstract] | |
Dividends Declared | In the six months ended March 25, 2018 and March 26, 2017 , dividends charged to retained earnings were as follows (in millions, except per share data): 2018 2017 Per Share Total Per Share Total First quarter $ 0.57 $ 862 $ 0.53 $ 801 Second quarter 0.57 857 0.53 798 $ 1.14 $ 1,719 $ 1.06 $ 1,599 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The following table provides a summary of the Company’s long-term debt (in millions, except percentages): March 25, 2018 September 24, 2017 Amount Effective Rate Amount Effective Rate May 2015 Notes Floating-rate three-month LIBOR plus 0.27% notes due May 18, 2018 $ 250 2.21% $ 250 1.65% Floating-rate three-month LIBOR plus 0.55% notes due May 20, 2020 250 2.49% 250 1.92% Fixed-rate 1.40% notes due May 18, 2018 1,250 2.94% 1,250 1.93% Fixed-rate 2.25% notes due May 20, 2020 1,750 2.79% 1,750 2.20% Fixed-rate 3.00% notes due May 20, 2022 2,000 3.34% 2,000 2.65% Fixed-rate 3.45% notes due May 20, 2025 2,000 3.46% 2,000 3.46% Fixed-rate 4.65% notes due May 20, 2035 1,000 4.74% 1,000 4.74% Fixed-rate 4.80% notes due May 20, 2045 1,500 4.71% 1,500 4.71% May 2017 Notes Floating-rate three-month LIBOR plus 0.36% notes due May 20, 2019 750 2.37% 750 1.80% Floating-rate three-month LIBOR plus 0.45% notes due May 20, 2020 500 2.43% 500 1.86% Floating-rate three-month LIBOR plus 0.73% notes due January 30, 2023 500 2.56% 500 2.11% Fixed-rate 1.85% notes due May 20, 2019 1,250 2.00% 1,250 2.00% Fixed-rate 2.10% notes due May 20, 2020 1,500 2.19% 1,500 2.19% Fixed-rate 2.60% notes due January 30, 2023 1,500 2.70% 1,500 2.70% Fixed-rate 2.90% notes due May 20, 2024 1,500 3.01% 1,500 3.01% Fixed-rate 3.25% notes due May 20, 2027 2,000 3.46% 2,000 3.46% Fixed-rate 4.30% notes due May 20, 2047 1,500 4.47% 1,500 4.47% Total principal 21,000 21,000 Unamortized discount, including debt issuance costs (97 ) (106 ) Hedge accounting fair value adjustments (43 ) — Total $ 20,860 $ 20,894 Reported as: Short-term debt $ 1,499 $ 1,496 Long-term debt 19,361 19,398 Total $ 20,860 $ 20,894 |
Commitments and Contingencies24
Commitments and Contingencies (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of obligations under purchase agreements and future minimums lease payments under operating leases | Obligations under these purchase agreements and future minimum lease payments under these operating leases at March 25, 2018 were as follows: Integrated Circuit Purchase Obligations Other Purchase Obligations Operating Leases Remainder of fiscal 2018 $ 2,277 $ 894 $ 63 2019 1,074 286 114 2020 318 165 85 2021 63 60 64 2022 24 12 44 Thereafter — 4 57 Total $ 3,756 $ 1,421 $ 427 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Segment Reporting [Abstract] | |
Revenues, EBT and Total Assets for reportable segments | The table below presents revenues, EBT and total assets for reportable segments (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Revenues QCT $ 3,897 $ 3,676 $ 8,548 $ 7,777 QTL 1,260 2,249 2,559 4,060 QSI 30 — 60 14 Reconciling items 74 (909 ) 162 (836 ) Total $ 5,261 $ 5,016 $ 11,329 $ 11,015 EBT QCT $ 608 $ 475 $ 1,563 $ 1,199 QTL 850 1,959 1,738 3,492 QSI 40 — 51 (17 ) Reconciling items (1,140 ) (1,577 ) (3,020 ) (2,947 ) Total $ 358 $ 857 $ 332 $ 1,727 March 25, September 24, Assets QCT $ 3,336 $ 3,830 QTL 1,907 1,735 QSI 1,193 1,037 Reconciling items 57,690 58,884 Total $ 64,126 $ 65,486 |
Reconciling items for reportable segments - revenues | Reconciling items for revenues and EBT in the previous table were as follows (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Revenues Nonreportable segments $ 74 $ 65 $ 162 $ 138 Reduction to revenues related to BlackBerry arbitration decision — (974 ) — (974 ) $ 74 $ (909 ) $ 162 $ (836 ) EBT Reduction to revenues related to BlackBerry arbitration decision $ — $ (974 ) $ — $ (974 ) Unallocated cost of revenues (111 ) (119 ) (228 ) (213 ) Unallocated research and development expenses (271 ) (277 ) (551 ) (546 ) Unallocated selling, general and administrative expenses (258 ) (138 ) (420 ) (283 ) Unallocated other expenses (Note 2) (310 ) (78 ) (1,493 ) (954 ) Unallocated interest expense (179 ) (106 ) (348 ) (195 ) Unallocated investment and other income, net 82 223 206 407 Nonreportable segments (93 ) (108 ) (186 ) (189 ) $ (1,140 ) $ (1,577 ) $ (3,020 ) $ (2,947 ) |
Reconciling items for reportable segments - Revenues and EBT | Reconciling items for revenues and EBT in the previous table were as follows (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Revenues Nonreportable segments $ 74 $ 65 $ 162 $ 138 Reduction to revenues related to BlackBerry arbitration decision — (974 ) — (974 ) $ 74 $ (909 ) $ 162 $ (836 ) EBT Reduction to revenues related to BlackBerry arbitration decision $ — $ (974 ) $ — $ (974 ) Unallocated cost of revenues (111 ) (119 ) (228 ) (213 ) Unallocated research and development expenses (271 ) (277 ) (551 ) (546 ) Unallocated selling, general and administrative expenses (258 ) (138 ) (420 ) (283 ) Unallocated other expenses (Note 2) (310 ) (78 ) (1,493 ) (954 ) Unallocated interest expense (179 ) (106 ) (348 ) (195 ) Unallocated investment and other income, net 82 223 206 407 Nonreportable segments (93 ) (108 ) (186 ) (189 ) $ (1,140 ) $ (1,577 ) $ (3,020 ) $ (2,947 ) Unallocated acquisition-related expenses were comprised as follows (in millions): Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, Cost of revenues $ 102 $ 106 $ 208 $ 191 Research and development expenses 2 12 3 14 Selling, general and administrative expenses 214 57 290 118 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Notes to Financial Statements [Abstract] | |
Fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 25, 2018 (in millions): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 26,328 $ 10,573 $ — $ 36,901 Marketable securities: U.S. Treasury securities and government-related securities 10 2 — 12 Corporate bonds and notes — 1,498 — 1,498 Mortgage- and asset-backed and auction rate securities — 73 35 108 Equity and preferred securities and equity funds 40 — — 40 Total marketable securities 50 1,573 35 1,658 Derivative instruments — 7 — 7 Other investments 408 — 13 421 Total assets measured at fair value $ 26,786 $ 12,153 $ 48 $ 38,987 Liabilities Derivative instruments $ — $ 65 $ — $ 65 Other liabilities 408 — 194 602 Total liabilities measured at fair value $ 408 $ 65 $ 194 $ 667 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Mar. 25, 2018 | |
Marketable Securities [Abstract] | |
Composition of marketable securities | Marketable securities were comprised as follows (in millions): Current Noncurrent March 25, September 24, March 25, September 24, Available-for-sale: U.S. Treasury securities and government-related securities $ 12 $ 23 $ — $ 959 Corporate bonds and notes 1,498 2,014 — 271 Mortgage- and asset-backed and auction rate securities 73 93 35 40 Equity and preferred securities and equity funds 40 36 — — Debt funds — 109 — — Total available-for-sale 1,623 2,275 35 1,270 Time deposits 2 4 — — Total marketable securities $ 1,625 $ 2,279 $ 35 $ 1,270 |
Contractual maturities of available-for-sale debt securities | The contractual maturities of available-for-sale debt securities were as follows (in millions): March 25, Years to Maturity Less than one year $ 610 One to five years 900 Five to ten years — Greater than ten years — No single maturity date 108 Total $ 1,618 |
Realized gains and losses on sales of available-for-sale securities | The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions): For the three months ended For the six months ended March 25, March 26, March 25, March 26, Gross realized gains $ 11 $ 57 $ 13 $ 303 Gross realized losses — — — (107 ) Net realized gains $ 11 $ 57 $ 13 $ 196 |
Composition of available-for-sale securities | Available-for-sale securities were comprised as follows (in millions): March 25, 2018 September 24, 2017 Equity securities Cost $ 8 $ 8 Unrealized gains 32 28 Fair value 40 36 Debt securities (including debt funds) Cost 1,621 3,497 Unrealized gains 3 13 Unrealized losses (6 ) (1 ) Fair value 1,618 3,509 $ 1,658 $ 3,545 |
Basis of Presentation Earnings
Basis of Presentation Earnings (Loss) Per Common Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | |
Basis of Presentation [Abstract] | ||||
Dilutive common share equivalents included in diluted shares | 12.2 | 11.3 | 0 | 14.2 |
Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period | 0.1 | 10.8 | 44.9 | 5.4 |
Basis of Presentation Share-Bas
Basis of Presentation Share-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense before income taxes | $ 222 | $ 246 | $ 470 | $ 485 |
Related income tax benefit | (29) | (36) | (77) | (84) |
Share-based compensation expense, net of income taxes | 193 | 210 | 393 | 401 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Unrecognized compensation costs related to non-vested restricted stock units | $ 1,300 | $ 1,300 | ||
Weighted-average period over which unrecognized compensation expense related to nonvested restricted stock units is expected to be recognized | 1 year 11 months | |||
RSUs outstanding | 28.4 | 28.4 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock options outstanding | 7.8 | 7.8 | ||
Cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense before income taxes | $ 10 | 10 | $ 21 | 20 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense before income taxes | 151 | 155 | 307 | 308 |
Selling, general and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense before income taxes | $ 61 | $ 81 | $ 142 | $ 157 |
Basis of Presentation New Accou
Basis of Presentation New Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income benefit (expense) | $ 5 | $ (108) | $ (5,922) | $ (296) |
Accounting Standards Update 2016-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income benefit (expense) | $ 21 | |||
Adjustments to prior year cash used in financing activities | (212) | |||
Adjustment to prior year cash provided by operating activities | $ 212 |
Composition of Certain Financ31
Composition of Certain Financial Statement Items Inventories (Details) - USD ($) $ in Millions | Mar. 25, 2018 | Sep. 24, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 93 | $ 103 |
Work-in-process | 643 | 799 |
Finished goods | 1,061 | 1,133 |
Inventories | $ 1,797 | $ 2,035 |
Composition of Certain Financ32
Composition of Certain Financial Statement Items Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 25, 2018 | Sep. 24, 2017 |
Other Current Liabilities [Line Items] | ||
Customer incentives and other customer-related liabilities | $ 2,882 | $ 2,804 |
Income taxes payable | 575 | 312 |
Other | 864 | 862 |
EC [Member] | ||
Other Current Liabilities [Line Items] | ||
Loss contingency, accrual, current | 1,232 | 0 |
TFTC [Member] | ||
Other Current Liabilities [Line Items] | ||
Loss contingency, accrual, current | $ 156 | $ 778 |
Composition of Certain Financ33
Composition of Certain Financial Statement Items Other Income, Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 25, 2018 | Dec. 24, 2017 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | Sep. 24, 2017 | |
Restructuring and restructuring-related charges | $ 310 | $ 25 | $ 33 | |||
EC [Member] | ||||||
Loss contingency, loss in period | $ 1,180 | $ 1,180 | ||||
KFTC [Member] | ||||||
Loss contingency, loss in period | $ 921 | $ 927 | ||||
Foreign currency losses related to KFTC accrual | $ 53 |
Composition of Certain Financ34
Composition of Certain Financial Statement Items Investment and Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | |
Investment Income, Net [Abstract] | ||||
Interest and dividend income | $ 154 | $ 153 | $ 280 | $ 320 |
Net realized gains on marketable securities | 3 | 67 | 13 | 206 |
Net realized gains on other investments | 47 | 21 | 60 | 30 |
Impairment losses on marketable securities | 0 | (3) | (1) | (125) |
Impairment losses on other investments | (11) | (2) | (19) | (23) |
Net gains on derivative investments | 10 | 13 | 9 | 20 |
Equity in net losses of investees | (17) | (14) | (38) | (11) |
Net losses on foreign currency transactions | (90) | 0 | (93) | 0 |
Investment and other income, net | $ 96 | $ 235 | $ 211 | $ 417 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 25, 2018 | Dec. 24, 2017 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 24, 2017 | |
Income Taxes [Line Items] | ||||||||
Income tax expense (benefit) | $ (5) | $ 108 | $ 5,922 | $ 296 | ||||
Current income taxes payable | $ 575 | 575 | $ 312 | |||||
Effective income tax rate (benefit) | (1.00%) | 18.00% | ||||||
Tax benefits from foreign income taxed at rates lower than rates in the United States | 32.00% | |||||||
Unrecognized tax benefits | $ 347 | 347 | $ 372 | |||||
Scenario, Forecast [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate (benefit) | 438.00% | |||||||
Tax benefits from foreign income taxed at rates lower than rates in the United States | 31.00% | |||||||
U.S. Tax Cuts and Jobs Act Effective 2018 [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax expense (benefit) | (15) | $ 5,870 | ||||||
Toll charge | 5,300 | 5,300 | ||||||
Impact of remeasurement of U.S. deferred tax assets and liabilities | 562 | 540 | ||||||
Foreign withholding tax from decision to no longer indefinitely reinvest certain foreign earnings | 86 | 93 | ||||||
Income taxes payable | 3,200 | 3,200 | ||||||
Current income taxes payable | 251 | 251 | ||||||
U.S. Tax Cuts and Jobs Act Effective 2018 [Member] | Scenario, Forecast [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Federal statutory income tax rate | 21.00% | 25.00% | ||||||
Internal Revenue Service (IRS) [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Tax credit carryforward, amount | $ 1,100 | 1,100 | ||||||
Combined Effect of Certain Components Tax Legislation | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax expense (benefit) | $ 5,960 | $ 5,950 |
Stockholders' Equity Changes in
Stockholders' Equity Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 25, 2018 | Dec. 24, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Mar. 25, 2018 | Mar. 26, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of the period | $ 30,746 | $ 30,746 | ||||
Net income (loss) | $ 363 | $ 749 | (5,590) | $ 1,431 | ||
Other comprehensive income | 160 | 43 | 161 | (198) | ||
Common stock issued under employee benefit plans and related tax benefits | 343 | |||||
Share-based compensation | 499 | |||||
Tax withholdings related to vesting of share-based payments | (196) | |||||
Dividends | (857) | $ (862) | $ (798) | $ (801) | (1,719) | (1,599) |
Stock repurchases | (425) | $ (727) | ||||
Balance at end of the period | $ 23,819 | $ 23,819 |
Stockholders' Equity Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | |
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 384 | |||
Balance at end of period | $ 545 | 545 | ||
Investment and other income, net | 96 | $ 235 | 211 | $ 417 |
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 147 | |||
Other comprehensive income (loss) before reclassifications | 173 | |||
Reclassifications from accumulated other comprehensive income | 0 | |||
Other comprehensive income (loss) | 173 | |||
Balance at end of period | 320 | 320 | ||
Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities [Member] | ||||
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 23 | |||
Other comprehensive income (loss) before reclassifications | 0 | |||
Reclassifications from accumulated other comprehensive income | 1 | |||
Other comprehensive income (loss) | 1 | |||
Balance at end of period | 24 | 24 | ||
Net Unrealized Gain (Loss) on Other Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 218 | |||
Other comprehensive income (loss) before reclassifications | (1) | |||
Reclassifications from accumulated other comprehensive income | (9) | |||
Other comprehensive income (loss) | (10) | |||
Balance at end of period | 208 | 208 | ||
Net Unrealized (Loss) Gain on Derivative Instruments [Member] | ||||
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (8) | |||
Other comprehensive income (loss) before reclassifications | (6) | |||
Reclassifications from accumulated other comprehensive income | 3 | |||
Other comprehensive income (loss) | (3) | |||
Balance at end of period | (11) | (11) | ||
Other Gains [Member] | ||||
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 4 | |||
Other comprehensive income (loss) before reclassifications | 0 | |||
Reclassifications from accumulated other comprehensive income | 0 | |||
Other comprehensive income (loss) | 0 | |||
Balance at end of period | 4 | 4 | ||
Total Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 384 | |||
Other comprehensive income (loss) before reclassifications | 166 | |||
Reclassifications from accumulated other comprehensive income | (5) | |||
Other comprehensive income (loss) | 161 | |||
Balance at end of period | $ 545 | $ 545 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward] | ||||
Investment and other income, net | $ 35 | $ 48 |
Stockholders' Equity Share Repu
Stockholders' Equity Share Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | ||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 09, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amount | $ 15,000 | ||
Stock repurchased and retired during period, shares | 6.8 | 11.5 | |
Stock repurchased and retired during period, value | $ 425 | $ 727 | |
Remaining authorized amount | $ 1,200 |
Stockholders' Equity Dividend39
Stockholders' Equity Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 20, 2018 | Apr. 17, 2018 | May 30, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Mar. 25, 2018 | Mar. 26, 2017 | Mar. 08, 2018 |
Dividends [Line Items] | ||||||||||
Percentage increase common stock dividend per share announced | 9.00% | |||||||||
Dividends per share announced | $ 0.57 | $ 0.57 | $ 0.53 | $ 0.53 | $ 1.14 | $ 1.06 | ||||
Dividends | $ 857 | $ 862 | $ 798 | $ 801 | $ 1,719 | $ 1,599 | ||||
Amount of increased common stock dividends per share announced | $ 0.62 | |||||||||
Subsequent Event [Member] | ||||||||||
Dividends [Line Items] | ||||||||||
Dividends per share announced | $ 0.62 | |||||||||
Dividends payable, date declared | Apr. 17, 2018 | |||||||||
Dividends payable, date to be paid | Jun. 20, 2018 | |||||||||
Dividends payable, date of record | May 30, 2018 |
Stockholders' Equity Employee S
Stockholders' Equity Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plans [Member] - shares | Mar. 23, 2018 | Mar. 25, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Increase in authorized shares | 30,000,000 | |
Shares authorized | 101,709,000 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 25, 2018 | Mar. 25, 2018 | Sep. 24, 2017 | |
2016 Amended Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Credit Facility, Maximum Borrowing Capacity | $ 5,000 | $ 5,000 | |
Line of Credit Facility, Covenant Terms | maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter | ||
Line of Credit Facility, Covenant Compliance | the Company was in compliance with the applicable covenants | ||
2016 Amended Revolving Credit Facility [Member] | February 2020 [Member] | |||
Line of Credit Facility [Abstract] | |||
Credit Facility, Maximum Borrowing Capacity | 530 | $ 530 | |
Credit Facility, Expiration Date | Feb. 18, 2020 | ||
2016 Amended Revolving Credit Facility [Member] | November 2021 [Member] | |||
Line of Credit Facility [Abstract] | |||
Credit Facility, Maximum Borrowing Capacity | 4,470 | $ 4,470 | |
Credit Facility, Expiration Date | Nov. 8, 2021 | ||
2018 Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Credit Facility, Maximum Borrowing Capacity | $ 3,000 | $ 3,000 | |
Line of Credit Facility, Description | Commitments under the 2018 Revolving Credit Facility will expire on the first to occur of (i) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP, (ii) if the closing date under the 2018 Revolving Credit Facility has not occurred, the date that is five business days following July 25, 2018 and (iii) the termination of the commitments in accordance with the provisions of the 2018 Revolving Credit Facility providing for voluntary and mandatory commitment reductions. | ||
Line of Credit Facility, Interest Rate Description | Loans under the 2018 Revolving Credit Facility will mature on December 31, 2018 and will bear interest, at the option of the Company, at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the 2018 Revolving Credit Facility) or the Base Rate (determined in accordance with the 2018 Revolving Credit Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate based on Qualcomm’s debt ratings as of March 25, 2018 will be 0.75% and 0.00% per annum, respectively. | ||
Debt instrument, ticking fee | The 2018 Revolving Credit Facility has a ticking fee, which is based on Qualcomm’s debt ratings and initially accrues at a rate of 0.05% per annum | ||
Line of Credit Facility, Covenant Terms | maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter | ||
Line of Credit Facility, Covenant Compliance | the Company was in compliance with the applicable covenants | ||
Commercial Paper [Member] | |||
Line of Credit Facility [Abstract] | |||
Credit Facility, Maximum Borrowing Capacity | $ 5,000 | 5,000 | |
Outstanding Commercial Paper Classified as Short-term debt | $ 2,200 | $ 2,200 | $ 999 |
Commercial Paper, Weighted Average Interest Rate | 1.98% | 1.98% | 1.19% |
Commercial Paper [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Debt Instrument, Term | 1 day | ||
Commercial Paper [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Debt Instrument, Term | 397 days | ||
Commercial Paper [Member] | Weighted Average [Member] | |||
Line of Credit Facility [Abstract] | |||
Commercial Paper, Weighted Average Remaining Term | 44 days | 45 days | |
2016 Term Loan Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Credit Facility, Maximum Borrowing Capacity | $ 4,000 | $ 4,000 | |
Line of Credit Facility, Description | will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the 2016 Term Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP and (iii) the date that is five business days following July 25, 2018. | ||
Line of Credit Facility, Covenant Terms | maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter | ||
Line of Credit Facility, Covenant Compliance | the Company was in compliance with the applicable covenants | ||
2018 Term Loan Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Credit Facility, Maximum Borrowing Capacity | $ 3,000 | $ 3,000 | |
Line of Credit Facility, Description | Commitments under the 2018 Term Loan Facility will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the 2018 Term Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP, (iii) the date that is five business days following July 25, 2018 and (iv) the termination of the commitments in accordance with the provisions of the 2018 Term Loan Facility providing for voluntary and mandatory commitment reductions. | ||
Line of Credit Facility, Interest Rate Description | Loans under the 2018 Term Loan Facility will mature on December 31, 2018 and will bear interest, at the option of the Company, at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the 2018 Term Loan Facility) or the Base Rate (determined in accordance with the 2018 Term Loan Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate based on Qualcomm’s debt ratings as of March 25, 2018 will be 0.875% and 0.00% per annum, respectively. | ||
Debt instrument, ticking fee | The 2018 Term Loan Facility has a ticking fee, which is based on Qualcomm’s debt ratings and initially accrues at a rate of 0.05% per annum | ||
Line of Credit Facility, Covenant Terms | maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter | ||
Line of Credit Facility, Covenant Compliance | the Company was in compliance with the applicable covenants |
Debt Long-term Debt (Details)
Debt Long-term Debt (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Mar. 25, 2018 | Mar. 26, 2017 | Sep. 24, 2017 | |
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 21,000 | $ 21,000 | |
Unamortized discount including debt issuance costs, Net | (97) | (106) | |
Hedge accounting fair value adjustments | (43) | 0 | |
Interest paid related to commercial paper and long-term debt, net of cash received from the related interest rate swaps | 317 | $ 150 | |
Debt, long-term and short-term, combined amount | 20,860 | 20,894 | |
Long-term debt, current maturities | 1,499 | 1,496 | |
Long-term debt | $ 19,361 | 19,398 | |
Special mandatory redemption description, aggregate principal amount and redemption price | The Company’s 2019 floating-rate notes, 2020 floating-rate notes, 2019 fixed-rate notes and 2020 fixed-rate notes issued in May 2017 for an aggregate principal amount of $4.0 billion are subject to a special mandatory redemption at a price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest to, but excluding, the date of such mandatory redemption. | ||
Special mandatory redemption description of terms and dates | The redemption is required on the first to occur of (i) the termination of the NXP purchase agreement or (ii) if the NXP transaction has not closed, by June 1, 2018. | ||
Long-term debt, fair value | $ 20,500 | 21,500 | |
Floating-rate three-month LIBOR plus 0.27% notes due May 18, 2018 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 250 | $ 250 | |
Long-term debt, effective interest rate | 2.21% | 1.65% | |
Long-term debt, maturity date | May 18, 2018 | May 18, 2018 | |
Long-term debt, basis spread on variable rate | 0.27% | 0.27% | |
Long-term debt, interest rate terms | Variable per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.27%. | ||
Floating-rate three-month LIBOR plus 0.55% notes due May 20, 2020 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 250 | $ 250 | |
Long-term debt, effective interest rate | 2.49% | 1.92% | |
Long-term debt, maturity date | May 20, 2020 | May 20, 2020 | |
Long-term debt, basis spread on variable rate | 0.55% | 0.55% | |
Long-term debt, interest rate terms | Variable per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.55%. | ||
Fixed-rate 1.40% notes due May 18, 2018 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,250 | $ 1,250 | |
Long-term debt, effective interest rate | 2.94% | 1.93% | |
Long-term debt, stated interest rate | 1.40% | 1.40% | |
Long-term debt, maturity date | May 18, 2018 | May 18, 2018 | |
Fixed-rate 2.25% notes due May 20, 2020 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,750 | $ 1,750 | |
Long-term debt, effective interest rate | 2.79% | 2.20% | |
Long-term debt, stated interest rate | 2.25% | 2.25% | |
Long-term debt, maturity date | May 20, 2020 | May 20, 2020 | |
Percentage of debt hedged by interest rate derivatives | 43.00% | ||
Fixed-rate 3.00% notes due May 20, 2022 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 2,000 | $ 2,000 | |
Long-term debt, effective interest rate | 3.34% | 2.65% | |
Long-term debt, stated interest rate | 3.00% | 3.00% | |
Long-term debt, maturity date | May 20, 2022 | May 20, 2022 | |
Percentage of debt hedged by interest rate derivatives | 50.00% | ||
Fixed-rate 3.45% notes due May 20, 2025 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 2,000 | $ 2,000 | |
Long-term debt, effective interest rate | 3.46% | 3.46% | |
Long-term debt, stated interest rate | 3.45% | 3.45% | |
Long-term debt, maturity date | May 20, 2025 | May 20, 2025 | |
Fixed-rate 4.65% notes due May 20, 2035 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,000 | $ 1,000 | |
Long-term debt, effective interest rate | 4.74% | 4.74% | |
Long-term debt, stated interest rate | 4.65% | 4.65% | |
Long-term debt, maturity date | May 20, 2035 | May 20, 2035 | |
Fixed-rate 4.80% notes due May 20, 2045 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,500 | $ 1,500 | |
Long-term debt, effective interest rate | 4.71% | 4.71% | |
Long-term debt, stated interest rate | 4.80% | 4.80% | |
Long-term debt, maturity date | May 20, 2045 | May 20, 2045 | |
Floating-rate three-month LIBOR plus 0.36% notes due May 20, 2019 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 750 | $ 750 | |
Long-term debt, effective interest rate | 2.37% | 1.80% | |
Long-term debt, maturity date | May 20, 2019 | May 20, 2019 | |
Long-term debt, basis spread on variable rate | 0.36% | 0.36% | |
Long-term debt, interest rate terms | Variable per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.36%. | ||
Floating-rate three-month LIBOR plus 0.45% notes due May 20, 2020 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 500 | $ 500 | |
Long-term debt, effective interest rate | 2.43% | 1.86% | |
Long-term debt, maturity date | May 20, 2020 | May 20, 2020 | |
Long-term debt, basis spread on variable rate | 0.45% | 0.45% | |
Long-term debt, interest rate terms | Variable per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.45%. | ||
Floating-rate three-month LIBOR plus 0.73% notes due January 30, 2023 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 500 | $ 500 | |
Long-term debt, effective interest rate | 2.56% | 2.11% | |
Long-term debt, maturity date | Jan. 30, 2023 | Jan. 30, 2023 | |
Long-term debt, basis spread on variable rate | 0.73% | 0.73% | |
Long-term debt, interest rate terms | Variable per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.73%. | ||
Fixed-rate 1.85% notes due May 20, 2019 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,250 | $ 1,250 | |
Long-term debt, effective interest rate | 2.00% | 2.00% | |
Long-term debt, stated interest rate | 1.85% | 1.85% | |
Long-term debt, maturity date | May 20, 2019 | May 20, 2019 | |
Fixed-rate 2.10% notes due May 20, 2020 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,500 | $ 1,500 | |
Long-term debt, effective interest rate | 2.19% | 2.19% | |
Long-term debt, stated interest rate | 2.10% | 2.10% | |
Long-term debt, maturity date | May 20, 2020 | May 20, 2020 | |
Fixed-rate 2.60% notes due January 30, 2023 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,500 | $ 1,500 | |
Long-term debt, effective interest rate | 2.70% | 2.70% | |
Long-term debt, stated interest rate | 2.60% | 2.60% | |
Long-term debt, maturity date | Jan. 30, 2023 | Jan. 30, 2023 | |
Fixed-rate 2.90% notes due May 20, 2024 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,500 | $ 1,500 | |
Long-term debt, effective interest rate | 3.01% | 3.01% | |
Long-term debt, stated interest rate | 2.90% | 2.90% | |
Long-term debt, maturity date | May 20, 2024 | May 20, 2024 | |
Fixed-rate 3.25% notes due May 20, 2027 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 2,000 | $ 2,000 | |
Long-term debt, effective interest rate | 3.46% | 3.46% | |
Long-term debt, stated interest rate | 3.25% | 3.25% | |
Long-term debt, maturity date | May 20, 2027 | May 20, 2027 | |
Fixed-rate 4.30% notes due May 20, 2047 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt, principal amount | $ 1,500 | $ 1,500 | |
Long-term debt, effective interest rate | 4.47% | 4.47% | |
Long-term debt, stated interest rate | 4.30% | 4.30% | |
Long-term debt, maturity date | May 20, 2047 | May 20, 2047 | |
Interest Rate Swap [Member] | |||
Long-term Debt [Abstract] | |||
Gross notional amount of derivatives | $ 3,000 |
Commitments and Contingencies L
Commitments and Contingencies Legal and Regulatory Proceedings (Details) € in Millions, $ in Millions, ₩ in Billions, $ in Billions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 59 Months Ended | |||||
Dec. 24, 2017USD ($) | Sep. 24, 2017USD ($) | Mar. 25, 2018USD ($) | Mar. 25, 2018EUR (€) | Mar. 26, 2017USD ($) | Sep. 24, 2017KRW (₩) | Sep. 24, 2017USD ($) | Sep. 24, 2017TWD ($) | Dec. 31, 2022 | |
KFTC [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, loss in period | $ 921 | $ 927 | |||||||
KFTC [Member] | Korea (South), Won | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, loss in period | ₩ | ₩ 1,030 | ||||||||
EC [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, loss in period | $ 1,180 | $ 1,180 | |||||||
Loss contingency, accrual, current | $ 0 | 1,232 | 0 | ||||||
EC [Member] | Euro Member Countries, Euro | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, loss in period | € | € 997 | ||||||||
TFTC [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, loss in period | 778 | ||||||||
Loss contingency, total accrual | 771 | ||||||||
Loss contingency, accrual, current | $ 778 | 156 | $ 778 | ||||||
Loss contingency, accrual, noncurrent | $ 615 | ||||||||
TFTC [Member] | Taiwan, New Dollars | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, loss in period | $ 23.4 | ||||||||
Scenario, Forecast [Member] | TFTC [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, payment terms | paid in monthly installments through December 2022. |
Commitments and Contingencies P
Commitments and Contingencies Purchase Obligations (Details) $ in Millions | 6 Months Ended |
Mar. 25, 2018USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Description of lessee leasing arrangements, operating leases | The Company leases certain of its land, facilities and equipment under noncancelable operating leases, with terms ranging from less than one year to 21 years and with provisions in certain leases for cost-of-living increases. |
Remainder of fiscal 2018 - Unrecorded obligation | $ 894 |
Fiscal 2019 - Unrecorded obligations | 286 |
Fiscal 2020 - Unrecorded obligations | 165 |
Fiscal 2021 - Unrecorded obligations | 60 |
Fiscal 2022 - Unrecorded obligations | 12 |
Thereafter - Unrecorded obligations | 4 |
Total - Unrecorded obligations | 1,421 |
Inventories [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of fiscal 2018 - Unrecorded obligation | 2,277 |
Fiscal 2019 - Unrecorded obligations | 1,074 |
Fiscal 2020 - Unrecorded obligations | 318 |
Fiscal 2021 - Unrecorded obligations | 63 |
Fiscal 2022 - Unrecorded obligations | 24 |
Thereafter - Unrecorded obligations | 0 |
Total - Unrecorded obligations | $ 3,756 |
Commitments and Contingencies O
Commitments and Contingencies Operating Leases (Details) $ in Millions | 6 Months Ended |
Mar. 25, 2018USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Description of lessee leasing arrangements, operating leases | The Company leases certain of its land, facilities and equipment under noncancelable operating leases, with terms ranging from less than one year to 21 years and with provisions in certain leases for cost-of-living increases. |
Remainder of fiscal 2018 - Operating Lease | $ 63 |
Fiscal 2019 - Operating leases | 114 |
Fiscal 2020 - Operating leases | 85 |
Fiscal 2021 - Operating leases | 64 |
Fiscal 2022 - Operating leases | 44 |
Thereafter - Operating leases | 57 |
Total Operating Leases Payments Due | $ 427 |
Commitments and Contingencies46
Commitments and Contingencies Other Commitments (Details) $ in Millions | Mar. 25, 2018USD ($) |
QSI [Member] | |
Other Commitments [Line Items] | |
Other Commitments | $ 414 |
Remainder of fiscal 2018 - Other Commitments | 77 |
Other Commitment, due in fiscal 2021 | 72 |
Minimum [Member] | QCT [Member] | |
Other Commitments [Line Items] | |
Other Commitments | 90 |
Maximum [Member] | QCT [Member] | |
Other Commitments [Line Items] | |
Other Commitments | $ 315 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | Sep. 24, 2017 | |
Segment Reporting Information [Line Items] | |||||
Segment reporting, factors used to identify entity's reportable segments | The Company is organized on the basis of products and services and has three reportable segments. | ||||
Revenues | $ 5,261 | $ 5,016 | $ 11,329 | $ 11,015 | |
Earnings before taxes | 358 | 857 | 332 | 1,727 | |
Total assets | 64,126 | 64,126 | $ 65,486 | ||
Cost of revenues | (2,239) | (2,208) | (4,902) | (4,651) | |
Research and development expense | (1,402) | (1,386) | (2,822) | (2,697) | |
Selling, general and administrative expense | (869) | (615) | (1,641) | (1,206) | |
Other expenses | (310) | (78) | (1,493) | (954) | |
Interest expense | (179) | (107) | (350) | (197) | |
Investment and other income, net | 96 | 235 | 211 | 417 | |
QCT [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,897 | 3,676 | 8,548 | 7,777 | |
Earnings before taxes | 608 | 475 | 1,563 | 1,199 | |
Total assets | 3,336 | 3,336 | 3,830 | ||
QTL [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,260 | 2,249 | 2,559 | 4,060 | |
Earnings before taxes | 850 | 1,959 | 1,738 | 3,492 | |
Total assets | 1,907 | 1,907 | 1,735 | ||
QSI [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 30 | 0 | 60 | 14 | |
Earnings before taxes | 40 | 0 | 51 | (17) | |
Total assets | 1,193 | 1,193 | 1,037 | ||
Other Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 74 | 65 | 162 | 138 | |
Earnings before taxes | (93) | (108) | (186) | (189) | |
Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 74 | (909) | 162 | (836) | |
Earnings before taxes | (1,140) | (1,577) | (3,020) | (2,947) | |
Total assets | 57,690 | 57,690 | $ 58,884 | ||
Cost of revenues | (111) | (119) | (228) | (213) | |
Research and development expense | (271) | (277) | (551) | (546) | |
Selling, general and administrative expense | (258) | (138) | (420) | (283) | |
Other expenses | (310) | (78) | (1,493) | (954) | |
Interest expense | (179) | (106) | (348) | (195) | |
Investment and other income, net | 82 | 223 | $ 206 | 407 | |
Reconciling Items [Member] | Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment reporting, change in measurement methods | In fiscal 2018, all of the costs related to pre-commercial research and development of 5G (fifth generation) technology, of which $115 million and $216 million was recorded in the three and six months ended March 25, 2018, respectively, are included in unallocated corporate research and development expenses, whereas similar costs related to the research and development of other technology, including 3G (third generation) and 4G (fourth generation) technology, were recorded in both the QCT and QTL segments. | ||||
Reconciling Items [Member] | Change of Segment Methodology [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Research and development expense | (115) | $ (216) | |||
Cost of revenues [Member] | Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Unallocated acquisition-related expenses | 102 | 106 | 208 | 191 | |
Research and development expenses [Member] | Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Unallocated acquisition-related expenses | 2 | 12 | 3 | 14 | |
Selling, general and administrative expenses [Member] | Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Unallocated acquisition-related expenses | 214 | 57 | 290 | 118 | |
Blackberry [Member] | Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 0 | $ (974) | $ 0 | $ (974) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 24, 2018 | Mar. 25, 2018 | Mar. 25, 2018 | Feb. 20, 2018 | Feb. 19, 2018 | Sep. 24, 2017 | |
Business Acquisition [Line Items] | ||||||
Long-term debt, principal amount | $ 21,000 | $ 21,000 | $ 21,000 | |||
Goodwill | 6,676 | $ 6,676 | $ 6,623 | |||
NXP [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Date of Acquisition Agreement | Oct. 27, 2016 | |||||
Business acquisition, share price | $ 110 | |||||
Business Combination, Termination Fee, Specified Circumstances, Payable to Acquirer | $ 1,250 | |||||
Business Combination, Termination Fee, Specified Circumstances, Payable to Target | 2,000 | |||||
Letters of Credit Outstanding, Amount | $ 2,000 | 2,000 | ||||
Amendment No.1 NXP Purchase Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Date of Acquisition Agreement | Feb. 20, 2018 | |||||
Cash consideration | $ 44,000 | |||||
Business acquisition, share price | $ 127.50 | |||||
Subsequent Event [Member] | Amendment No. 2 NXP Purchase Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Date of Acquisition Agreement | Apr. 19, 2018 | |||||
Minimum [Member] | NXP [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, percentage of voting interested acquired | 80.00% | |||||
Minimum [Member] | Amendment No.1 NXP Purchase Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, percentage of voting interested acquired | 70.00% | |||||
2016 Term Loan Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000 | 4,000 | ||||
2018 Term Loan Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 | 3,000 | ||||
2018 Revolving Credit Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 | 3,000 | ||||
May 2017 debt issuance [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt, principal amount | $ 11,000 | $ 11,000 |
Cost Plan (Details)
Cost Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 20 Months Ended | |
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 26, 2017 | Sep. 29, 2019 | Sep. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Cost Reduction Plan, announcement date | Jan. 16, 2018 | ||||
Reduction of annual costs | $ 1,000 | ||||
Restructuring and restructuring-related charges | 310 | $ 25 | $ 33 | ||
Other Operating Income (Expense) [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 277 | ||||
Other Restructuring Costs | $ 33 | ||||
Scenario, Forecast [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost Reduction Plan, completion date | Sep. 29, 2019 | ||||
Scenario, Forecast [Member] | Minimum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related charges | $ 400 | ||||
Scenario, Forecast [Member] | Maximum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and restructuring-related charges | $ 525 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring [Member] $ in Millions | Mar. 25, 2018USD ($) |
Assets | |
Cash equivalents | $ 36,901 |
Marketable securities | 1,658 |
Derivative instruments | 7 |
Other investments | 421 |
Total assets measured at fair value | 38,987 |
Liabilities | |
Derivative instruments | 65 |
Other liabilities | 602 |
Total liabilities measured at fair value | 667 |
Level 1 [Member] | |
Assets | |
Cash equivalents | 26,328 |
Marketable securities | 50 |
Derivative instruments | 0 |
Other investments | 408 |
Total assets measured at fair value | 26,786 |
Liabilities | |
Derivative instruments | 0 |
Other liabilities | 408 |
Total liabilities measured at fair value | 408 |
Level 2 [Member] | |
Assets | |
Cash equivalents | 10,573 |
Marketable securities | 1,573 |
Derivative instruments | 7 |
Other investments | 0 |
Total assets measured at fair value | 12,153 |
Liabilities | |
Derivative instruments | 65 |
Other liabilities | 0 |
Total liabilities measured at fair value | 65 |
Level 3 [Member] | |
Assets | |
Cash equivalents | 0 |
Marketable securities | 35 |
Derivative instruments | 0 |
Other investments | 13 |
Total assets measured at fair value | 48 |
Liabilities | |
Derivative instruments | 0 |
Other liabilities | 194 |
Total liabilities measured at fair value | 194 |
U.S. Treasury securities and government-related securities [Member] | |
Assets | |
Marketable securities | 12 |
U.S. Treasury securities and government-related securities [Member] | Level 1 [Member] | |
Assets | |
Marketable securities | 10 |
U.S. Treasury securities and government-related securities [Member] | Level 2 [Member] | |
Assets | |
Marketable securities | 2 |
U.S. Treasury securities and government-related securities [Member] | Level 3 [Member] | |
Assets | |
Marketable securities | 0 |
Corporate bonds and notes [Member] | |
Assets | |
Marketable securities | 1,498 |
Corporate bonds and notes [Member] | Level 1 [Member] | |
Assets | |
Marketable securities | 0 |
Corporate bonds and notes [Member] | Level 2 [Member] | |
Assets | |
Marketable securities | 1,498 |
Corporate bonds and notes [Member] | Level 3 [Member] | |
Assets | |
Marketable securities | 0 |
Mortgage- and asset-backed and auction rate securities [Member] | |
Assets | |
Marketable securities | 108 |
Mortgage- and asset-backed and auction rate securities [Member] | Level 1 [Member] | |
Assets | |
Marketable securities | 0 |
Mortgage- and asset-backed and auction rate securities [Member] | Level 2 [Member] | |
Assets | |
Marketable securities | 73 |
Mortgage- and asset-backed and auction rate securities [Member] | Level 3 [Member] | |
Assets | |
Marketable securities | 35 |
Equity and preferred securities and equity funds [Member] | |
Assets | |
Marketable securities | 40 |
Equity and preferred securities and equity funds [Member] | Level 1 [Member] | |
Assets | |
Marketable securities | 40 |
Equity and preferred securities and equity funds [Member] | Level 2 [Member] | |
Assets | |
Marketable securities | 0 |
Equity and preferred securities and equity funds [Member] | Level 3 [Member] | |
Assets | |
Marketable securities | $ 0 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Millions | Mar. 25, 2018 | Sep. 24, 2017 |
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale - Current | $ 1,623 | $ 2,275 |
Available-for-sale - Noncurrent | 35 | 1,270 |
Total marketable securities - Current | 1,625 | 2,279 |
Total marketable securities - Noncurrent | 35 | 1,270 |
U.S. Treasury securities and government-related securities [Member] | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale - Current | 12 | 23 |
Available-for-sale - Noncurrent | 0 | 959 |
Corporate bonds and notes [Member] | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale - Current | 1,498 | 2,014 |
Available-for-sale - Noncurrent | 0 | 271 |
Mortgage- and asset-backed and auction rate securities [Member] | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale - Current | 73 | 93 |
Available-for-sale - Noncurrent | 35 | 40 |
Equity and preferred securities and equity funds [Member] | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale - Current | 40 | 36 |
Available-for-sale - Noncurrent | 0 | 0 |
Debt funds [Member] | ||
Schedule of Marketable Securities [Line Items] | ||
Available-for-sale - Current | 0 | 109 |
Available-for-sale - Noncurrent | 0 | 0 |
Bank Time Deposits [Member] | ||
Schedule of Marketable Securities [Line Items] | ||
Other Marketable Securities, Current | 2 | 4 |
Other Marketable Securities, Noncurrent | $ 0 | $ 0 |
Marketable Securities Available
Marketable Securities Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 25, 2018 | Mar. 26, 2017 | Mar. 25, 2018 | Mar. 26, 2017 | Sep. 24, 2017 | |
Contractual maturities of available-for-sale debt securities [Abstract] | |||||
Years to Maturity - Less Than One Year | $ 610 | $ 610 | |||
Years to Maturity - One to Five Years | 900 | 900 | |||
Years to Maturity - Five to Ten Years | 0 | 0 | |||
Years to Maturity - Greater Than Ten Years | 0 | 0 | |||
Years to Maturity - No Single Maturity Date | 108 | 108 | |||
Realized Gains and Losses on Sales of Available-for-sale Securities [Abstract] | |||||
Gross Realized Gains | 11 | $ 57 | 13 | $ 303 | |
Gross Realized Losses | 0 | 0 | 0 | (107) | |
Net Realized Gains | 11 | $ 57 | 13 | $ 196 | |
Available-for-sale Securities [Abstract] | |||||
Available-for-sale Equity Securities, Cost | 8 | 8 | $ 8 | ||
Available-for-sale Equity Securities, Unrealized Gains | 32 | 32 | 28 | ||
Available-for-sale Securities Equity Securities, Fair Value | 40 | 40 | 36 | ||
Available-for-sale Debt Securities (including debt funds), Cost | 1,621 | 1,621 | 3,497 | ||
Available-for-sale Debt Securities (including debt funds), Unrealized Gains | 3 | 3 | 13 | ||
Available-for-sale Debt Securities (including debt funds), Unrealized Losses | (6) | (6) | (1) | ||
Available-for-sale Debt Securities, Fair Value | 1,618 | 1,618 | 3,509 | ||
Fair Value | $ 1,658 | $ 1,658 | $ 3,545 |