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NOTE 10. SEGMENT INFORMATION
The Company is organized on the basis of products and services.
The Company aggregates three of its divisions into the QUALCOMM
Wireless & Internet segment. Reportable segments are as follows:
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QUALCOMM CDMA Technologies (QCT)—develops and supplies
CDMA and WCDMA-based integrated circuits and system software
for wireless voice and data communications, multimedia functions
and global positioning systems products;
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QUALCOMM Technology Licensing (QTL)—grants licenses to use por-
tions of the Company’s intellectual property portfolio, which includes
certain patent rights essential to and/or useful in the manufacture
and sale of CDMA products, including, without limitation, products
implementing cdmaOne, CDMA2000, WCDMA and/or the CDMA TDD
standards and their derivatives, and collects license fees and royalties
in partial consideration for such licenses;
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QUALCOMM Wireless & Internet (QWI)—comprised of:
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QUALCOMM Internet Services (QIS)—provides technology to sup-
port and accelerate the convergence of the wireless data market,
including its BREW product and services, QChat and QPoint;
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QUALCOMM Government Technologies (QGOV)—formerly
QUALCOMM Digital Media, provides development, hardware
and analytical expertise to United States government agencies
involving wireless communications technologies; and
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QUALCOMM Wireless Business Solutions (QWBS)—provides
satellite and terrestrial-based two-way data messaging, position
reporting and wireless application services to transportation com-
panies, private fl eets, construction equipment fl eets and other
enterprise companies.
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QUALCOMM Strategic Initiatives (QSI)—manages the Company’s
strategic investment activities, including MediaFLO USA, Inc.
(MediaFLO USA), the Company’s wholly-owned wireless multimedia
operator subsidiary. QSI makes strategic investments to promote
the worldwide adoption of CDMA products and services.
During the fi rst quarter of fi scal 2005, the Company reorganized
its MediaFLO USA business into the QSI segment. The operating
expenses related to the MediaFLO USA business were included in
reconciling items through the end of fi scal 2004. During the fi rst
quarter of fi scal 2005, the Company also reorganized a division in the
QWI segment that develops and sells test tools to support the design,
development, testing and deployment of infrastructure and subscriber
products into the QCT segment. Prior period segment information
has been adjusted to conform to the new segment presentation.
The Company evaluates the performance of its segments based
on earnings (loss) before income taxes (EBT) from continuing
operations, excluding certain impairment and other charges that
are not allocated to the segments for management reporting pur-
poses. 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.
The table below presents revenues, EBT and total assets for reportable segments (in millions):
Reconciling
QCT* QTL QWI* QSI* Items* Total*
2005
Revenues $3,290 $1,839 $644 $ — $ (100) $ 5,673
EBT 852 1,663 57 10 227 2,809
Total assets 518 16 153 442 11,350 12,479
2004
Revenues $3,111 $1,331 $571 $ — $ (133) $ 4,880
EBT 1,048 1,195 19 (31) 82 2,313
Total assets 564 8 117 400 9,731 10,820
2003
Revenues $2,428 $1,000 $484 $ 1 $ (66) $ 3,847
EBT 805 897 15 (168) 16 1,565
Total assets 311 155 92 839 7,425 8,822
* As adjusted.