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qualcomm 2006 75
• QUALCOMM Government Technologies (QGOV)—provides
development, hardware and analytical expertise to United
States government agencies involving wireless communications
technologies; and
• QUALCOMM Wireless Business Solutions (QWBS)—provides
satellite- and terrestrial-based two-way data messaging, position
reporting and wireless application services to transportation
companies, private eets, construction equipment eets and
other enterprise companies.
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-based products and services.
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:
QUALCOMM CDMA Technologies (QCT)—develops and supplies
CDMA-based integrated circuits and system software for wireless
voice and data communications, multimedia functions and global
positioning system products;
QUALCOMM Technology Licensing (QTL)—grants licenses to use
portions of the Company’s intellectual property portfolio, which
includes certain patent rights essential to and/or useful in the
manufacture and sale of certain wireless products, including,
without limitation, products implementing cdmaOne, CDMA2000,
WCDMA, CDMA TDD and/or OFDMA standards and their derivatives,
and collects license fees and royalties in partial consideration for
such licenses;
QUALCOMM Wireless & Internet (QWI)—comprised of:
• QUALCOMM Internet Services (QIS)—provides technology
to support and accelerate the convergence of the wireless
data market, including its BREW, QChat and QPoint products
and services;
The Company evaluates the performance of its segments based on earnings (loss) before income taxes (EBT). EBT includes the allocation
of certain corporate expenses to the segments, including depreciation and amortization expense related to unallocated corporate assets.
Certain income and charges are not allocated to segments in the Company’s management reports because they are not considered in evaluating
the segments’ operating performance. Unallocated income and charges include certain investment income, share-based compensation and
certain research and development expenses and marketing expenses that were not deemed to be directly related to the businesses of the
segments. The table below presents revenues, EBT and total assets for reportable segments (in millions):
Reconciling
QCT QTL QWI QSI Items Total
2006
Revenues $4,332 $2,631 $670 $ — $ (107) $ 7,526
EBT 1,134 2,397 80 (133) (322) 3,156
Total assets 651 60 196 660 13,641 15,208
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