Qualcomm 2005 Annual Report Download - page 76
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Please find page 76 of the 2005 Qualcomm annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to Consolidated Financial Statements continued
72 qualcomm 2005
Segment assets are comprised of accounts receivable and inventory
for QCT, QTL and QWI. The QSI segment assets include certain mar-
ketable securities, accounts receivable, fi nance receivables, notes
receivable, wireless licenses, other investments and all assets of
consolidated investees. Total segment assets differ from total assets
on a consolidated basis as a result of unallocated corporate assets
primarily comprised of cash, cash equivalents, certain marketable
securities, property, plant and equipment, deferred tax assets,
goodwill and certain other intangible assets. The net book value
of long-lived assets located outside of the United States was
$44 million, $21 million and $117 million at September 25, 2005,
September 26, 2004 and September 28, 2003, respectively. Long-
lived assets located outside of the United States were primarily in
Brazil at September 28, 2003 and related to discontinued opera-
tions (Note 12). The net book value of long-lived assets located in
the United States was $978 million, $654 million and $505 million
at September 25, 2005, September 26, 2004 and September 28,
2003, respectively.
QSI assets included $89 million, $106 million and $116 million
related to investments in equity method investees at September 25,
2005, September 26, 2004 and September 28, 2003, respectively.
Revenues from each of the Company’s divisions aggregated into the
QWI reportable segment were as follows (in millions):
Fiscal Year QWBS QGOV QIS*
2005 $441 $50 $153
2004 $414 $41 $116
2003 $356 $49 $ 79
* As adjusted.
Other reconciling items were comprised as follows (in millions):
Year Ended
Sept. 25, Sept. 26, Sept. 28,
2005 2004 2003
Revenues
Elimination of intersegment revenue $(148) $(153) $(122)
Other products 48 20 56
Reconciling items $(100) $(133) $ (66)
Earnings (loss) before income taxes
Unallocated research and
development expenses $ (42) $ (23) $ (36)
Unallocated selling, general,
and administrative expenses (15) (41) (45)
EBT from other products (56) (39) (20)
Unallocated investment income, net 339 192 125
Intracompany eliminations 1 (7) (8)
Reconciling items $ 227 $ 82 $ 16
* As adjusted.
Generally, revenues between segments are based on prevailing market
rates for substantially similar products and services or an approxi-
mation 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 eval uate
the segments’ operating performance. Unallocated charges include
certain investment income and 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 busi-
nesses of the segments.
Specifi ed items included in segment EBT were as follows (in millions):
QCT* QTL QWI* QSI*
Fiscal 2005
Revenues from
external customers $3,281 $1,710 $634 $ —
Intersegment revenues 9 129 10 —
Interest income — 5 2 4
Interest expense — 1 1 —
Fiscal 2004
Revenues from
external customers $3,107 $1,200 $553 $ —
Intersegment revenues 4 131 18 —
Interest income — 3 1 14
Fiscal 2003
Revenues from
external customers $2,423 $ 898 $469 $ 1
Intersegment revenues 5 102 15 —
Interest income — 2 1 45
* As adjusted.
Effectively all equity in losses of investees (Note 5) was recorded in
QSI in fi scal 2005, 2004 and 2003. In fi scal 2004 and 2003, interest
expense (Note 5) was predominantly recorded as corporate expense
in reconciling items.
The Company distinguishes revenues from external customers by
geographic areas based on customer location. Sales information by
geographic area was as follows (in millions):
Year Ended
Sept. 25, Sept. 26, Sept. 28,
2005 2004 2003
United States $1,015 $1,016 $ 875
South Korea 2,083 2,091 1,724
Japan 1,210 877 586
China 394 260 311
Brazil 40 31 36
Other foreign 931 605 315
$5,673 $4,880 $3,847