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QUALCOMM 36
Selected Consolidated Financial Data
The following balance sheet data and statements of operations data for the five years ended September 30, 2004 were derived from our audited
consolidated financial statements. Consolidated balance sheets at September 30, 2004 and 2003 and the related consolidated statements of
operations and of cash flows for each of the three years in the period ended September 30, 2004 and notes thereto appear elsewhere herein.
The data should be read in conjunction with the annual consolidated financial statements, related notes and other financial information
appearing elsewhere herein.
Years Ended September 30(1)
(in millions except per share data) 2004(2)(6) 2003(2) 2002(2) 2001(3) 2000(3)
Statement of Operations Data:
Revenues $ 4,880 $3,847 $2,915 $2,680 $3,197
Operating income 2,129 1,573 840 39 723
Income (loss) from continuing operations
before accounting change 1,725 1,029 525 (560) 622
Discontinued operations, net of tax (5) (202) (165) — —
Accounting changes, net of tax — — — (18) —
Net income (loss) $ 1,720 $ 827 $ 360 $ (578) $ 622
Basic earnings (loss) per common share(4):
Income (loss) from continuing operations
beforeaccounting change $ 1.07 $ 0.65 $ 0.34 $ (0.37) $ 0.43
Discontinued operations, net of tax (0.01) (0.13) (0.11) — —
Accounting change, net of tax — — — (0.01) —
Net income (loss) $ 1.06 $ 0.52 $ 0.23 $ (0.38) $ 0.43
Diluted earnings (loss) per common share(4):
Income (loss) from continuing operations
before accounting change $ 1.03 $ 0.63 $ 0.32 $ (0.37) $ 0.39
Discontinued operations, net of tax — (0.12) (0.10) — —
Accounting change, net of tax — — — (0.01) —
Net income (loss) $ 1.03 $ 0.51 $ 0.22 $ (0.38) $ 0.39
Dividends per shareannounced $ 0.190 $0.085 — — —
Shares used in earnings per sharecalculations(4):
Basic 1,616 1,579 1,542 1,512 1,434
Diluted 1,675 1,636 1,619 1,512 1,600
Pro forma effect of change in accounting principle(5):
Net income $ 595
Net earnings per common share — basic $ 0.41
Net earnings per common share — diluted $ 0.38
Balance Sheet Data:
Cash, cash equivalents and marketable securities $ 7,635 $5,372 $3,200 $2,581 $2,521
Total assets 10,820 8,822 6,506 5,670 6,015
Long-term debt — 123 94 — —
Total stockholders’ equity 9,664 7,598 5,392 4,812 5,468
(1) Our fiscal year ends on the last Sunday in September. As a result, fiscal 2001 includes 53 weeks.
(2) During fiscal 2004, we sold our consolidated subsidiaries, the Vésper Operating Companies and TowerCo, and returned personal mobile service (SMP) licenses
to Anatel, the telecommunications regulatory agency in Brazil. The results of operations, including gains and losses realized on the sales transactions and the
SMP licenses, arepresented as discontinued operations.
(3) During fiscal 2001 and 2000, we accounted for our investment in the Vésper Operating Companies under the equity method of accounting and recorded
$150 million and $48 million, respectively, in equity in losses of those entities in income (loss) from continuing operations before accounting change.
(4) We effected a four-for-one stock split in December 1999 and a two-for-one stock split in August 2004. All references to number of shares and per share amounts
reflect these stock splits.
(5) The pro forma effect of change in accounting principle reflects the impact of SAB 101 on previously reported results assuming it had been in effect in those periods.
(6) Prior to the fourth quarter of fiscal 2004, we recorded royalty revenues from certain licensees based on our estimates of royalties during the period they were earned.
Starting in the fourth quarter of fiscal 2004, we began recognizing royalty revenues solely based on royalties reported by licensees during the quarter. The change
in the timing of recognizing royalty revenue was made prospectively and had the initial one-time effect of reducing royalty revenues recorded in the fourth quarter
of fiscal 2004. See Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Annual Report for more information.