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QUALCOMM INC/DE
FORM 10-K
(Annual Report)
Filed 11/02/11 for the Period Ending 09/25/11
Address 5775 MOREHOUSE DR
SAN DIEGO, CA 92121
Telephone 8585871121
CIK 0000804328
Symbol QCOM
SIC Code
3663 - Radio and Television Broadcasting and Communications Equipment
Industry Communications Equipment
Sector Technology
Fiscal Year 09/30
http://www.edgar-online.com
© Copyright 2011, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    QUALCOMM INC/DE FORM 10-K (Annual Report) Filed 11/02/11 for the Period Ending 09/25/11 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 5775 MOREHOUSE DR SAN DIEGO, CA 92121 8585871121 0000804328 QCOM 3663 - Radio and Television Broadcasting and Communications Equipment ...

  • Page 2
    ... (State or other jurisdiction of incorporation or organization) 5775 Morehouse Drive San Diego, California (Address of principal executive offices) 95-3685934 (I.R.S. Employer Identification No.) 92121-1714 (Zip Code) Registrant's telephone number, including area code: (858) 587-1121 Securities...

  • Page 3
    ...number of shares outstanding of the registrant's common stock was 1,680,984,426 at October 31, 2011 . DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's Definitive Proxy Statement to be filed with the Commission pursuant to Regulation 14A in connection with the registrant's 2012 Annual...

  • Page 4
    QUALCOMM INCORPORATED Form 10-K For the Fiscal Year Ended September 25, 2011 Index Page PART I Item 1. Business Overview Wireless Communications Industry Wireless Technologies Operating Segments Research and Development Sales and Marketing Competition Patents, Trademarks and Trade Secrets Corporate...

  • Page 5
    .... ® Qualcomm, Qualcomm Enterprise Services, QES, Qualcomm CDMA Technologies, QCT, Qualcomm Technology Licensing, QTL, Qualcomm Wireless & Internet, QWI, Qualcomm Internet Services, QIS, Qualcomm Government Technologies, QGOV, Qualcomm MEMS Technologies, QMT, Qualcomm Technologies & Ventures, MFT...

  • Page 6
    ... and TDMA (Time Division Multiple Access), of which Global System for Mobile Communications (GSM) is the primary commercial form, are the primary digital technologies currently used to transmit a wireless device user's voice or data over radio waves using a public cellular wireless network. Because...

  • Page 7
    ... and global positioning system products. Our integrated circuit products and system software are sold to or licensed to manufacturers that use our products in wireless devices, particularly mobile phones, tablets, laptops, data modules, handheld wireless computers and gaming devices, access points...

  • Page 8
    ... mobile Internet, downloading of videos and social networking are driving the demand for 3G services and more capable devices. According to the CDMA Development Group and the Global mobile Suppliers Association (GSA) in their October 2011 reports, approximately 752 wireless networks now support 3G...

  • Page 9
    ... data technologies, such as General Packet Radio Service (GPRS) and Enhanced Data Rates for Global Evolution (EDGE) in areas serviced by GSM. According to Wireless Intelligence estimates as of October 31, 2011, there were approximately 4.4 billion worldwide 2G connections, approximately 74% of total...

  • Page 10
    ... our products and services. We develop, commercialize and actively support 3G CDMA-based technologies as well as the OFDMA-based LTE technology, products and network operations to grow our royalty revenues and integrated circuit and software revenues. From time to time, we may also make acquisitions...

  • Page 11
    ... and global positioning system products. QCT's integrated circuit products and system software are sold to or licensed to manufacturers that use our products in wireless devices, particularly mobile phones, tablets, laptops, data modules, handheld wireless computers and gaming devices, access points...

  • Page 12
    ...develop and adopt competitive digital cellular technologies, and those efforts may materially and adversely affect QCT. Moreover, competitors may offer more attractive product pricing or financing terms than we do as a means of gaining access to the market or customers. Qualcomm Technology Licensing...

  • Page 13
    ... Samsung) have royalty-bearing licenses under our patent portfolio for use in OFDMA products (that do not implement any CDMA-based standards). Qualcomm Wireless & Internet Segment (QWI). QWI revenues comprised 4%, 6% and 6% of total consolidated revenues in fiscal 2011 , 2010 and 2009 , respectively...

  • Page 14
    ... the global positioning system constellation for position tracking. We generate revenues from sales of network products and terminals and information and location-based service and license fees. In the United States and Mexico, we manufacture mobile fleet management equipment, sell related software...

  • Page 15
    ... marketing development funds with our customers. Our Corporate Marketing department provides company information on our internet site and through other media regarding our products, strategies and technology to industry analysts and for publications. Competition Competition to our operating segments...

  • Page 16
    .... Wireless Reach. We believe access to advanced wireless voice and data services improves people's lives. Our Wireless Reach initiative supports programs and solutions that bring the benefits of connectivity to underserved communities globally. By working with partners, Wireless Reach projects...

  • Page 17
    .... Aberle joined Qualcomm in December 2000 and prior to October 2006 held positions ranging from Legal Counsel to Vice President and General Manager of QTL. Effective November 14, 2011, Mr. Aberle will become Group President. Mr. Aberle holds a B.A. degree in Business Economics from the University of...

  • Page 18
    ...the trading price of our common stock could decline. You should also refer to the other information set forth in this Annual Report, including our financial statements and the related notes. Risks Related to Our Businesses Our revenues are dependent on the commercial deployment of technologies based...

  • Page 19
    ... for voice and data communications; networking; value-added features that drive replacement rates and selling prices; turnkey, integrated product offerings that incorporate hardware, software, user interface and applications; scalability and the ability of the system technology to meet customers...

  • Page 20
    ... of substantial management time and financial resources, and may result in legal decisions and/or actions by foreign governments, Standards Development Organizations (SDOs) or other industry groups that harm our business. A small number of companies, in the past, have initiated various strategies in...

  • Page 21
    ... to the selling price of any product implementing the relevant standard. They have further proposed that such maximum aggregate royalty rate be apportioned to each member company with essential patents based upon the number of essential patents held by such company. A number of these strategies are...

  • Page 22
    ...communications technology by wireless operators and the timing of the roll-out of those systems; international developments, such as technology mandates, political developments or changes in economic policies; changes in recommendations of securities analysts; proprietary rights or product or patent...

  • Page 23
    ... delivery schedules, manufacturing capability and yields, quality assurance, quantity and costs. Our arrangements with our suppliers may oblige us to incur costs to manufacture and test our products that do not decrease at the same rate as decreases in pricing to our customers. QCT Segment. Although...

  • Page 24
    ... new employees, business systems and technology; retaining customers and suppliers of the acquired business; minimizing the diversion of management's attention from ongoing business matters; coordinating geographically separate organizations; consolidating research and development operations...

  • Page 25
    ... and wireless services, damage to our reputation and to our customer relationships, and other financial liability or harm to our business. Our business and operations could suffer in the event of security breaches. Attempts by others to gain unauthorized access to our information technology systems...

  • Page 26
    ...an application to obtain a license to operate a wireless network on this spectrum for one of the respective regions. Thereafter, two Indian companies each acquired 13% of each subsidiary. On September 21, 2011, we received a letter dated September 7, 2011 from the Government of India's Department of...

  • Page 27
    ...costs as we revise current practices, policies and/or procedures and may divert management time and attention to compliance activities. We may not be able to attract and retain qualified employees. Our future success depends largely upon the continued service of our board members, executive officers...

  • Page 28
    ... Total Square Footage 4,071 1,244 523 317 285 238 136 110 96 75 70 55 44 31 26 121 7,442 Primary Use Executive and administrative offices, research and development, sales and marketing, service functions, manufacturing and network management hub. Administrative offices, research and development...

  • Page 29
    ...an application to obtain a license to operate a wireless network on this spectrum for one of the respective regions. Thereafter, two Indian companies each acquired 13% of each subsidiary. On September 21, 2011, we received a letter dated September 7, 2011 from the Government of India's Department of...

  • Page 30
    ... in our financial statements. We continue to cooperate with the SEC's ongoing investigation. Other: We have been named, along with many other manufacturers of wireless phones, wireless operators and industry-related organizations, as a defendant in purported class action lawsuits, and individually...

  • Page 31
    ...'s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock is traded on the NASDAQ Global Select Market under the symbol "QCOM." The following table sets forth the range of high and low sales prices on the NASDAQ Stock Market of the...

  • Page 32
    ...any time. Additional information regarding our share-based compensation plans and plan activity for fiscal 2011 , 2010 and 2009 is provided in the notes to our consolidated financial statements in this Annual Report in "Notes to Consolidated Financial Statements, Note 8 - Employee Benefit Plans" and...

  • Page 33
    ..., the last trading day of our 2011 fiscal year, was $50.29 per share. (1) Shows the cumulative total return on investment assuming an investment of $100 (including reinvestment of dividends) in our common stock, the S&P 500 and the NASDAQ-100 on September 24, 2006. All returns are reported as of...

  • Page 34
    ...28, 2010 2009 2008 (In millions, except per share data) September 30, 2007 2.70 (0.18) 2.52 0.81 2.12 (0.16) 1.96 0.72 1.07 (0.12) 0.95 0.66 2.01 (0.11) 1.90 0.60 2.04 (0.09) 1.95 0.52 Balance Sheet Data: Cash, cash equivalents and marketable securities Total assets Loans payable Capital lease...

  • Page 35
    .... Based on current reports by Strategy Analytics, a global research and consulting firm, in their August 2011 Global Handset Market Share Update. (2) (3) (4) Our Business and Operating Segments We design, manufacture, have manufactured on our behalf and market digital communications products and...

  • Page 36
    ... and global positioning system products. QCT's integrated circuit products and system software are sold to or licensed to manufacturers that use our products in wireless devices, particularly mobile phones, tablets, laptops, data modules, handheld wireless computers and gaming devices, access points...

  • Page 37
    ... the average and range of selling prices of CDMAbased devices. We continue to invest significant resources toward the development of technologies and products for voice and data communications, primarily in the wireless industry, including advancements to 3G CDMA and 4G LTE networks, 32 • •

  • Page 38
    ... foregoing business and market-based matters, we continue to devote resources to working with and educating participants in the wireless value chain as to the benefits of our business model in promoting a highly competitive and innovative wireless industry. However, we expect that certain companies...

  • Page 39
    ... historical experience. Beginning in fiscal 2010 , we began to issue restricted stock units (RSUs) to employees. Since such time, the number of stock options granted to employees has decreased, and we expect this trend to continue into the foreseeable future. We estimate the fair value of RSUs based...

  • Page 40
    ...adverse effect on our operating results, liquidity or financial position. Fiscal 2011 Compared to Fiscal 2010 Revenues. Total revenues for fiscal 2011 were $14.96 billion, compared to $10.98 billion for fiscal 2010 . Revenues from two customers of our QCT and QTL segments (each of whom accounted for...

  • Page 41
    ... to fair value and amortization of intangible assets related to the acquisition of Atheros in fiscal 2011 . Cost of equipment and services revenues included $67 million in share-based compensation in fiscal 2011 , compared to $41 million in fiscal 2010 . Cost of equipment and services revenues as...

  • Page 42
    ...the effect of an increase in costs related to our QMT division, which was offset by an increase in QCT gross margin percentage. Cost of equipment and services revenues included $41 million in share-based compensation in fiscal 2010 , compared to $40 million for fiscal 2009 . Research and Development...

  • Page 43
    ... in tax benefit related to tax audits settled during the year and a decrease in research and development tax credits. The annual effective tax rate for fiscal 2010 was 22% and only reflected the United States federal research and development credits generated through December 31, 2009, the date on...

  • Page 44
    ... in revenues. QCT gross margin percentage increased as a result of the net effects of a decrease in average unit costs, lower average selling prices and favorable product mix. QTL Segment. QTL revenues for fiscal 2010 were $3.66 billion, compared to $3.61 billion for fiscal 2009 . Revenues in...

  • Page 45
    ... based on our current business plans. • Our research and development expenditures were $3.0 billion and $2.5 billion in fiscal 2011 and 2010 , respectively, and we expect to continue to invest heavily in research and development for new technologies, applications and services for voice and data...

  • Page 46
    ... our technologies, obtain development resources, grow our patent portfolio or pursue new business. The $994 million in loans related to the BWA spectrum won in India are due and payable in full in December 2012 and bear interest at an annual rate of 10%, which is based on the highest base rate among...

  • Page 47
    ...of cash equivalents, marketable debt securities and debt mutual funds. Changes in the general level of United States interest rates can affect the principal values and yields of fixed interest-bearing securities. If interest rates in the general economy were to rise rapidly in a short period of time...

  • Page 48
    .... At September 25, 2011 , we had a net liability of $25 million related to foreign currency option contracts that were designated as hedges of foreign currency risk on royalties earned from certain licensees on their sales of CDMA-based devices. If our forecasted royalty revenues were to decline by...

  • Page 49
    ..., the independent registered public accounting firm that audited the consolidated financial statements included in this Annual Report on Form 10-K, has also audited the effectiveness of our internal control over financial reporting as of September 25, 2011 , as stated in its report which appears on...

  • Page 50
    ... "Code of Ethics." Item 11. Executive Compensation The information required by this item is incorporated by reference to the 2012 Proxy Statement under the heading "Executive Compensation and Related Information." Item 12. Security Ownership of Certain Beneficial Owners and Management and Related...

  • Page 51
    ...Page Number (a) Financial Statements: (1) Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets at September 25, 2011 and September 26, 2010 Consolidated Statements of Operations for Fiscal 2011, 2010 and 2009 Consolidated Statements of Cash Flows for Fiscal 2011, 2010...

  • Page 52
    ...QUALCOMM Incorporated 2001 Employee Stock Purchase Plan. (5)(21) Atheros Communications, Inc. 2004 Stock Incentive Plan, as amended. (5)(22) Atheros Communications, Inc. 2009 Inducement Grant Incentive Plan. (5)(22) Atheros Communications, Inc. (formerly T-Span Corporation) 1998 Stock Incentive Plan...

  • Page 53
    ... to the Registrant's Annual Report on Form 10-K filed on November 3, 2010. (19) Filed as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the quarter ended December 26, 2010. (20) Filed as an exhibit to the Registrant's Current Report on Form 8-K filed on January 6, 2011. (21) Filed...

  • Page 54
    ... of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. November 2, 2011 QUALCOMM Incorporated By /s/ Paul E. Jacobs Paul E. Jacobs, Chief Executive Officer and Chairman 49

  • Page 55
    ... Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: Signature Title Date Chief Executive Officer and Chairman /s/ Paul E. Jacobs Paul E. Jacobs /s/ William E. Keitel William E. Keitel...

  • Page 56
    ..., the financial position of QUALCOMM Incorporated and its subsidiaries at September 25, 2011 and September 26, 2010 and the results of their operations and their cash flows for each of the three years in the period ended September 25, 2011 in conformity with accounting principles generally accepted...

  • Page 57
    QUALCOMM Incorporated CONSOLIDATED BALANCE SHEETS (In millions, except per share data) September 25, 2011 ASSETS Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Deferred tax assets Other current assets Total current assets Marketable securities ...

  • Page 58
    F- 2

  • Page 59
    QUALCOMM Incorporated CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) Year Ended September 25, 2011 Revenues: Equipment and services Licensing Total revenues Operating expenses: Cost of equipment and services revenues Research and development Selling, general and ...

  • Page 60
    ... acquisitions: Accounts receivable, net Inventories Other assets Trade accounts payable Payroll, benefits and other liabilities Unearned revenues Net cash provided by operating activities Investing Activities: Capital expenditures Advance payment on spectrum (Note 9) Purchases of available-for-sale...

  • Page 61
    Cash and cash equivalents at end of year See accompanying notes. $ 5,462 $ 3,547 $ 2,717 F- 4

  • Page 62
    ...(Note 1) Total comprehensive income Common stock issued under employee benefit plans and the related tax benefits, net of shares withheld for tax Repurchase and retirement of common stock Share-based compensation Dividends Value of stock awards assumed in acquisition Issuance of subsidiary shares to...

  • Page 63
    ... royalties based on sales by licensees of wireless telecommunications equipment products incorporating its patented technologies. The Company sells equipment, software and services to transportation and other companies to wirelessly connect their assets and workforce. The Company provides software...

  • Page 64
    ...included in marketable securities on the balance sheet. There were no securities loaned at September 26, 2010 under the Company's securities lending program. Cash collateral is held and invested by one or more securities lending agents on behalf of the Company. The Company monitors the fair value of...

  • Page 65

  • Page 66
    ... to measure fair value. Weighted-average amortization periods for finite-lived intangible assets, by class, were as follows (in years): September 25, 2011 Spectrum licenses Marketing-related Technology-based Customer-related Total finite-lived intangible assets 5 9 11 3 11 September 26, 2010 5 18 14...

  • Page 67
    ..., 2010 . Shipping and Handling Costs. Costs incurred for shipping and handling are included in cost of equipment and services revenues at the time the related revenue is recognized. Amounts billed to a customer for shipping and handling are reported as revenue. Share-Based Compensation. Share-based...

  • Page 68
    QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS options and restricted stock units (RSUs), is measured at the grant date, or at the acquisition date for assumed awards, based on the estimated fair value of the award and is recognized over the employee's requisite service period. ...

  • Page 69
    F- 10

  • Page 70
    ... of cash flows to reflect the incremental tax benefits from stock options exercised and restricted stock units vested in those periods. The amount of compensation cost capitalized related to share-based payment awards was negligible for all periods presented. Litigation. The Company is currently...

  • Page 71
    QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2010 and 2009 , respectively, were outstanding but not included in the computation of diluted earnings per common share because the effect would be anti-dilutive. Put options outstanding during fiscal 2011 to purchase 11,800,000 ...

  • Page 72

  • Page 73
    .... The fair value of U.S. Treasury securities and government-related securities, corporate bonds and notes and common and preferred stock are generally determined using standard observable inputs, including reported trades, quoted market prices, matrix pricing, benchmark yields, broker/dealer quotes...

  • Page 74
    F- 13

  • Page 75
    QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS similar securities) or, in some cases cash flow pricing models with observable inputs, such as contractual terms, maturity, credit rating and/or securitization structure, to determine the timing and amount of future cash flows. ...

  • Page 76
    F- 14

  • Page 77
    ...-related securities Corporate bonds and notes Mortgage- and asset-backed securities Auction rate securities Non-investment-grade debt securities Common and preferred stock Equity mutual and exchange-traded funds Debt mutual funds Total available-for-sale Fair value option: Debt mutual fund Time...

  • Page 78
    ...previously impaired Reductions in credit losses related to securities sold Accretion of credit losses due to an increase in cash flows expected to be collected Ending balance of credit losses $ $ 109 - (40) 2 - (20) (5) 46 $ $ 2010 170 - - 1 1 (39) (24) 109 $ $ 2009 - 186 (14) 17 2 (21) - 170 F- 16

  • Page 79
    ...and $428 million , respectively. The gross book values of property under capital leases included in buildings and improvements were $175 million and $227 million at September 25, 2011 and September 26, 2010 , respectively. These capital leases principally related to base station towers and buildings...

  • Page 80
    ..., $40 million of goodwill remained for the Firethorn reporting unit. The components of other intangible assets were as follows (in millions): September 25, 2011 Gross Carrying Amount Spectrum licenses Marketing-related Technology-based Customer-related $ $ 20 72 3,767 132 3,991 $ $ Accumulated...

  • Page 81
    ... securities in fiscal 2009 were generally caused by a prolonged disruption in U.S. and foreign credit and financial markets that depressed securities values. Note 6. Income Taxes The components of the income tax provision were as follows (in millions): 2011 Current provision: Federal State Foreign...

  • Page 82
    ...jurisdictions. Tax audit impacts, net reflects adjustments to the Company's prior year estimates of uncertain tax positions as a result of various federal, state and foreign tax audits. The Company is currently a participant in the Internal Revenue Service (IRS) Compliance Assurance Process, whereby...

  • Page 83
    QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 25, 2011 Accrued liabilities, reserves and other Share-based compensation Capitalized start-up and organizational costs Unearned revenues Unrealized losses on marketable securities Unrealized losses on other investments ...

  • Page 84
    F- 21

  • Page 85
    ... FINANCIAL STATEMENTS At September 25, 2011 , the Company does not expect any unrecognized tax benefits to result in cash payment in fiscal 2012 . Unrecognized tax benefits at September 25, 2011 include $88 million for tax positions that, if recognized, would impact the effective tax rate...

  • Page 86
    ... price equal to their original capital contribution. The aggregate fair value of these put rights, which are accounted for as freestanding financial instruments classified in other liabilities, was $7 million at September 25, 2011 . Note 8. Employee Benefit Plans Employee Savings and Retirement Plan...

  • Page 87

  • Page 88
    ... were based on the value of the RSUs on their vesting dates as determined by the Company's closing stock price. Total payments for the employees' tax obligations to the taxing authorities were $14 million in fiscal 2011. Employee Stock Purchase Plan. The Company has an employee stock purchase plan...

  • Page 89
    ... to obtain a license to operate a wireless network on this spectrum for one of the respective regions. Thereafter, two Indian companies each acquired 13% of each subsidiary . On September 21, 2011, the Company received a letter dated September 7, 2011 from the Government of India's Department of...

  • Page 90
    QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS payment that the Company made for the spectrum. On October 10, 2011, one of the Company's subsidiaries received a letter from the DoT offering to issue it a license that would cover all of India, including the four regions for which ...

  • Page 91

  • Page 92
    ...in fiscal 2009. At September 25, 2011 , the carrying value of the liability was $294 million , which also approximated the fair value of the contractual liability net of imputed interest. Loans Payable Related to India BWA Spectrum. In connection with the India BWA spectrum won in India in June 2010...

  • Page 93
    ... in voice and data communications, networking, application processing, multimedia and global positioning system products; Qualcomm Technology Licensing (QTL) - grants licenses or otherwise provides rights to use portions of the Company's intellectual property portfolio, which includes certain patent...

  • Page 94
    F- 28

  • Page 95
    ...); certain share-based compensation; and certain research and development expenses and other selling and marketing expenses that were deemed to be not directly related to the businesses of the segments. Additionally, starting with acquisitions in the third quarter of fiscal 2011, unallocated charges...

  • Page 96
    F- 29

  • Page 97
    ... in fiscal 2011 , 2010 and 2009 . The Company distinguishes revenues from external customers by geographic areas based on the location to which its products, software or services are delivered and, for QTL licensing revenues, the invoiced addresses of its licensees. Sales information by geographic...

  • Page 98
    ... plan to restructure and evaluate strategic options related to the FLO TV business and network. The FLO TV business and network were shut down on March 27, 2011. Since then, the Company has been working to sell the remaining assets and exit contracts. The 700 MHz spectrum with a carrying value...

  • Page 99
    F- 31

  • Page 100
    ... products. The primary objective of the acquisition is to help accelerate the expansion of the Company's technologies and platforms to new businesses beyond cellular, including home, enterprise and carrier networking. Atheros was integrated into the QCT segment. The allocation of the purchase price...

  • Page 101
    ... and equipment and related tax effects. 2011 (In millions) Revenues Net income attributable to Qualcomm $ 15,583 4,304 $ 11,867 3,013 2010 During fiscal 2011, the Company acquired nine other businesses for total cash consideration of $466 million . Technology-based intangible assets recognized in...

  • Page 102
    ... information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of the results of the interim periods. The table below presents quarterly data for fiscal 2011 and 2010 (in millions, except per share data): 1st Quarter* 2011 Revenues...

  • Page 103
    F- 34

  • Page 104
    ...II QUALCOMM INCORPORATED VALUATION AND QUALIFYING ACCOUNTS (In millions) Balance at Beginning of Period Year ended September 25, 2011 Allowances: - trade receivables - notes receivables - investment receivables (1) Valuation allowance on deferred tax assets $ Year ended September 26, 2010 Allowances...

  • Page 105
    ...Communications KK, incorporated in Japan, Atheros International LLC, incorporated in Delaware, Atheros Korea, Ltd., incorporated in Korea, Atheros Powerline, LLC, incorporated in Delaware, and QUALCOMM Atheros Canada Corporation, incorporated in Canada, do business under their own names. The Company...

  • Page 106
    ... of QUALCOMM Incorporated of our report dated November 2, 2011 relating to the consolidated financial statements, the financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10-K. /s/ PricewaterhouseCoopers LLP San Diego, California...

  • Page 107
    ... and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: November 2, 2011 a) /s/ Paul E. Jacobs Paul E. Jacobs, Chief Executive Officer...

  • Page 108
    ... and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: November 2, 2011 a) /s/ William E. Keitel William E. Keitel, Executive Vice...

  • Page 109
    ... 13(a) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: November 2, 2011 /s/ Paul E. Jacobs Paul E. Jacobs, Chief Executive Officer and Chairman

  • Page 110
    ... U.S.C. SECTION 1350) In connection with the accompanying Annual Report of QUALCOMM Incorporated (the "Company") on Form 10-K for the fiscal year ended September 25, 2011 (the "Report"), I, William E. Keitel, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted...