Qualcomm 2006 Annual Report Download - page 64

50 qualcomm 2006
Management’s Discussion and Analysis continued
October 1, 2007. The cumulative effect of initially adopting FIN 48
will be recorded as an adjustment to opening retained earnings in
the year of adoption and will be presented separately. Only tax
positions that meet the more likely than not recognition threshold
at the effective date may be recognized upon adoption of FIN 48.
We are in the process of determining the effect, if any, the adop-
tion of FIN 48 will have on our consolidated nancial statements.
Future Accounting Requirements
In July 2006, the FASB issued FASB Interpretation No. 48 (FIN 48)
“Accounting for Uncertainty in Income Taxes” which prescribes a
recognition threshold and measurement process for recording in
the nancial statements uncertain tax positions taken or expected
to be taken in a tax return. Additionally, FIN 48 provides guidance on
the derecognition, classication, accounting in interim periods and
disclosure requirements for uncertain tax positions. The
accounting provisions of FIN 48 will be effective for us beginning
Contractual Obligations/Off-Balance Sheet Arrangements
We have no signicant contractual obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our
consolidated nancial statements. We have no material off-balance sheet arrangements as dened in S-K 303(a)(4)(ii).
At September 24, 2006, our outstanding contractual obligations included (in millions):
Contractual Obligations
Payments Due by Period
Fiscal Fiscal Beyond No
Fiscal 2008- 2010- Fiscal Expiration
Total 2007 2009 2011 2011 Date
Purchase obligations(1) $ 829 $663 $110 $38 $ 18 $ —
Operating leases 291 71 74 49 97 —
Other commitments(2) 42 — — — 26 16
Total commitments 1,162 734 184 87 141 16
Capital leases(3) 125 3 6 8 108 —
Other long-term liabilities(4) 47 — 45 — 2 —
Total recorded liabilities 172 3 51 8 110 —
Total $1,334 $737 $235 $95 $251 $16
(1) Total purchase obligations include $593 million in commitments to purchase integrated circuit product inventories.
(2) Certain of these commitments do not have xed funding dates. Amounts are presented based on the expiration of the commitment, but actual funding may
occur earlier or not at all as funding is subject to certain conditions. Commitments represent the maximum amounts to be nanced or funded under these
arrangements; actual nancing or funding may be in lesser amounts.
(3) Amounts represent future minimum lease payments including interest payments. Capital lease obligations are included in other liabilities in the consolidated
balance sheet at September 24, 2006.
(4) Certain long-term liabilities reected on our balance sheet, such as unearned revenue, are not presented in this table because they do not require cash settlement
in the future.
Additional information regarding our nancial commitments at September 24, 2006 is provided in the notes to our consolidated
nancial statements. See “Notes to Consolidated Financial Statements, Note 4—Investments in Other Entities and Note 9—Commitments and
Contingencies.”