Qualcomm 2002 Annual Report Download - page 82

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Other reconciling items for the years ended September 30 were comprised as
follows (in thousands):
2002 2001 2000
Revenues
Revenues from external customers
of QCP segment sold $ — $ — $ 541,856
Elimination of intersegment
revenue (80,409) (62,114) (194,730)
Other products 116,889 169,208 473,573
Reconciling items $ 36,480 $ 107,094 $ 820,699
Earnings before income taxes
Unallocated corporate expenses $(301,615) $(429,481) $(324,131)
EBT of QCP segment sold — — (70,073)
EBT from other products 1,663 (77,486) 39,507
Unallocated interest expense (377) (9,557) (1,842)
Unallocated investment (loss)
income, net 89,138 139,226 108,311
Distributions on Trust Convertible
Preferred Securities of subsidiary trust — — (13,039)
Intracompany eliminations (6,911) 4,544 (36,758)
Other (1,024) (2,504) (1,138)
Reconciling items $(219,126) $(375,258) $(299,163)
Generally, revenues between operating segments are based on prevailing market
rates or an approximation thereof. Certain charges are allocated to the corporate
functional department in the Company’s management reports based on the decision
that those charges should not be used to evaluate a segment’s operating performance.
The Company also routinely excludes amortization of goodwill and other acquisition-
related intangible assets from segments’ EBT in its management reports based on
the decision to exclude those charges from the evaluation of segment results.
Unallocated corporate expenses for fiscal 2002 included $259 million for amortization
of goodwill and other acquisition-related intangible assets. Unallocated corporate
expenses for fiscal 2001 included $256 million for amortization of goodwill and other
acquisition-related intangible assets, $62 million related to an arbitration decision
against the Company and $57 million related to Globalstar (Note 4). Unallocated
corporate expenses for fiscal 2000 included $146 million for amortization of goodwill
and other acquisition-related intangible assets, $83 million in charges related to the
sale of the terrestrial-based CDMA wireless consumer phone business (Note 14), and
$60 million for in-process technology related to the SnapTrack acquisition (Note 13).
Specified items included in segment EBT for years ended September 30 were as
follows (in thousands):
QCT QTL QWI QSI
2002
Revenues from external customers $1,586,864 $780,410 $428,920 $126,477
Intersegment revenues 3,965 66,682 9,762 —
Interest income 1,724 1,672 1,013 32,793
Interest expense 41 214 108 24,939
2001
Revenues from external customers $1,360,427 $727,564 $422,587 $ —
Intersegment revenues 4,260 54,375 3,479 —
Interest income 2,366 122 888 108,183
Interest expense 38 6 27 74
2000
Revenues from external customers $1,130,216 $628,764 $422,371 $ —
Intersegment revenues 108,486 76,718 9,526 —
Interest income — — — 137,710
Interest expense 121 6 186 95
All equity in losses of investees (Note 6) are recorded in QSI.
Sales information by geographic area for the years ended September 30 was as
follows (in thousands):
2002 2001 2000
United States $ 913,776 $ 942,579 $1,681,104
South Korea 1,133,481 937,504 711,588
Japan 534,312 576,958 410,883
Other foreign 457,991 222,745 393,205
$3,039,560 $2,679,786 $3,196,780
The Company distinguishes revenues from external customers by geographic
areas based on customer location.
The net book value of long-lived assets located outside of the United States was
$251 million, $10 million and $10 million at September 30, 2002, 2001 and 2000,
respectively. The increase over the prior years is due to Vésper Holding’s long-lived
assets acquired during fiscal 2002 (Note 13).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued