Qualcomm 2002 Annual Report Download - page 81

QUALCOMM 2002 ANNUAL REPORT PAGE 79
• QUALCOMM CDMA Technologies (QCT) — develops and supplies CDMA-based
integrated circuits and system software for wireless voice and data communications
and global positioning products;
• QUALCOMM Technology Licensing (QTL) — licenses third parties to design,
manufacture, and sell products incorporating the Company’s CDMA technology;
• QUALCOMM Wireless & Internet (QWI) — comprised of:
° QUALCOMM Internet Services (QIS) — provides the BREW product and serv-
ices for wireless service providers, handset manufacturers and wireless
application developers and software development services;
° QUALCOMM Digital Media (QDM) — develops technologies to support
the processing, transmission and management of content for a variety of
media applications, including the delivery of digitized motion pictures
(Digital Cinema) and highly secure, wireless products for the United States
government; and
° QUALCOMM Wireless Business Solutions (QWBS) — provides satellite and
terrestrial-based two-way data messaging and position reporting services to
transportation companies, private fleets and heavy equipment fleets.
• QUALCOMM Strategic Initiatives (QSI) — manages the Company’s strategic
investment activities. QSI makes strategic investments to promote the world-
wide adoption of CDMA products and services for wireless voice and Internet
data communications, including CDMA carriers and licensed device manufacturers
and companies that support the design and introduction of new CDMA-based
products or possess unique capabilities or technology. QSI also provides financing
to CDMA carriers to facilitate the marketing and sale of CDMA equipment by
licensed manufacturers.
The Wireless Systems division, which provides services and sells products to
Globalstar service providers and other customers involved with the Globalstar
System, is no longer included in a reportable segment, and the division’s revenues
and losses are presented with other products in reconciling items in the table that follows.
The Company evaluates the performance of its segments based on earnings
before income taxes and accounting changes (EBT), excluding certain impairment
and other charges that are not allocated to the segments for management reporting
purposes. EBT includes the allocation of certain corporate expenses to the segments,
including depreciation and amortization expense related to unallocated corporate
assets. Segment data includes intersegment revenues.
Segment results presented for the fiscal 2001 and 2000 periods have been restated
to conform to the current year segment presentation and adjusted to reflect the
Company’s equity in losses of the Vésper Operating Companies (Note 13). The
Company sold its terrestrial-based CDMA wireless consumer phone business, the
former operating segment QUALCOMM Consumer Products (QCP), to Kyocera in
February 2000 (Note 14). The table below presents revenues and EBT for reported
segments (in thousands):
Reconciling
QCT QTL QWI QSI Items Total
2002
Revenues $1,590,829 $847,092 $438,682 $ 126,477 $ 36,480 $3,039,560
EBT 440,523 756,173 (9,467) (506,978) (219,126) 461,125
Total assets 290,598 168,777 107,453 1,754,957 4,187,736 6,509,521
2001
Revenues $1,364,687 $781,939 $426,066 $ — $ 107,094 $2,679,786
EBT 305,546 705,794 33,484 (1,125,206) (375,258) (455,640)
Total assets 296,638 180,276 109,443 1,294,278 3,789,098 5,669,733
2000
Revenues $1,238,702 $705,482 $431,897 $ — $ 820,699 $3,196,780
EBT 391,521 633,336 80,152 342,894 (299,163) 1,148,740
Total assets 296,054 160,604 109,007 1,206,880 4,242,372 6,014,917
Revenues from each of the Company’s divisions aggregated into the QWI operating
segment for the years ended September 30 were as follows (in thousands):
QWBS QDM QIS
2002 $337,454 $53,941 $47,287
2001 $345,560 $74,250 $ 6,256
2000 $348,338 $74,529 $ 9,030
QSI assets include $203 million and $106 million related to investments in equity
method investees at September 30, 2002 and 2001, respectively.