Qualcomm 2011 Annual Report Download - page 101

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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
IPR&D consisted of 26 projects, primarily related to wireless local-area network and powerline communications technologies. The projects are
expected to be completed over the next three years. The estimated remaining costs to complete the IPR&D projects were $36 million as of the
acquisition date. The acquired IPR&D will not be amortized until completion of the related products as it was determined that the underlying
projects had not reached technological feasibility at the date of acquisition. Upon completion, each IPR&D project will be amortized over its
useful life; useful lives for IPR&D are expected to range between two to six years. Acquisition costs related to the merger of $23 million were
recognized as selling, general and administrative expenses as incurred in fiscal 2011. The Company’s results of operations for fiscal 2011
included the operating results of Atheros since the date of acquisition, the amounts of which were not material.
The following table presents the unaudited pro forma results for fiscal 2011 and 2010 . The unaudited pro forma financial information combines
the results of operations of Qualcomm and Atheros as though the companies had been combined as of the beginning of fiscal 2010 , and the pro
forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if
the acquisition had taken place at such times. The unaudited pro forma results presented include amortization charges for acquired intangible
assets, eliminations of intercompany transactions, adjustments for increased fair value of acquired inventory, adjustments for incremental stock-
based compensation expense related to the unearned portion of Atheros stock options and restricted stock units assumed, adjustments for
depreciation expense for property, plant and equipment and related tax effects.
During fiscal 2011, the Company acquired nine other businesses for total cash consideration of $466 million . Technology-based intangible
assets recognized in the amount of $150 million are being amortized on a straight-line basis over a weighted-average useful life of five years.
Goodwill recognized in these transactions, of which $234 million is expected to be deductible for tax purposes, was assigned to the Company’s
reportable segments as follows (in millions):
During fiscal 2010, the Company acquired six businesses for total cash consideration of $50 million . Technology-based intangible assets
recognized in the amount of $32 million are being amortized on a straight-line basis over a weighted-average useful life of 11 years. During
fiscal 2009, the Company acquired one business for total cash consideration of $17 million .
F- 33
2011
2010
(In millions)
Revenues
$
15,583
$
11,867
Net income attributable to Qualcomm
4,304
3,013
QCT
$
227
QWI
35
QTL
5
QSI
1
Nonreportable segments
8
$
276