Qualcomm 2004 Annual Report Download - page 81

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QUALCOMM 77
structure and subscriber products in the QCT segment. Prior periods will be restated to conform to the fiscal 2005 segment presentation in
future reports when the expected changes to the internal reporting structure become effective.
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 purposes. 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*
2004
Revenues $3,094 $1,331 $596 $ — $ (141) $ 4,880
EBT 1,043 1,195 30 (3) 48 2,313
Total assets 560 8 121 400 9,731 10,820
2003
Revenues $2,406 $1,000 $511 $ 1 $ (71) $ 3,847
EBT 797 897 27 (168) 12 1,565
Total assets 309 155 94 839 7,425 8,822
2002
Revenues $1,575 $ 847 $460 $ 2 $ 31 $ 2,915
EBT 438 756 (7) (346) (219) 622
Total assets 288 169 110 1,755 4,184 6,506
*As adjusted.
QSI assets included $106 million, $116 million and $203 million related to investments in equity method investees at September 30, 2004, 2003
and 2002, respectively.
Revenues from each of the Company’s divisions aggregated into the QWI reportable segment for the years ended September 30 were as follows
(in millions):
QWBS QGOV QIS* Other
2004 $414 $41 $116 $25
2003 $356 $49 $ 79 $27
2002 $338 $39 $ 68 $15
*As adjusted.
Other reconciling items for the years ended September 30 were comprised as follows (in millions):
2004 2003* 2002*
Revenues
Elimination of intersegment revenue $(161) $(127) $ (86)
Other products 20 56 117
Reconciling items $(141) $ (71) $ 31
Earnings (loss) beforeincome taxes
Unallocated amortization of goodwill and other acquisition-related intangible assets $ (3) $ (7) $(258)
Unallocated research and development expenses (48) (36) (23)
Unallocated selling, general, and administrative expenses (41) (38) (13)
EBT from other products (39) (20) (7)
Unallocated investment income, net 192 125 89
Intracompany eliminations (13) (12) (7)
Reconciling items $ 48 $ 12 $(219)
*As adjusted.
Generally,revenues between segments are based on prevailing market rates for substantially similar products and services 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 the segments’ operating performance. Unallocated charges include amortization of acquisition-
related intangible assets, research and development expenses and marketing expenses related to the development of the CDMA market that
were not deemed to be directly related to the businesses of the segments.
QUALCOMM 77