Qualcomm 2011 Annual Report Download - page 46

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Contractual Obligations / Off-Balance Sheet Arrangements
We have no significant contractual obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our
consolidated financial statements. We have no material off-balance sheet arrangements as defined in S-K 303(a)(4)(ii).
At September 25, 2011 , our outstanding contractual obligations included (in millions):
Contractual Obligations
Payments Due By Fiscal Period
41
• Our purchase obligations for fiscal 2012, some of which relate to research and development activities and capital expenditures, totaled
$1.9 billion at September 25, 2011 .
• The acquisition of Atheros was more significant than others we have made in the past. We expect to continue making strategic
investments and acquisitions, the amounts of which could vary significantly, to open new opportunities for 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 the bank lenders and reset quarterly, plus 0.25% with interest
payments due monthly. As of September 25, 2011, all but one of the lenders had the right to demand prepayment of its portion of the
loans outstanding on December 15, 2011 subject to sufficient prior written notice. As a result, the loans were classified as a component
of current liabilities. The date by which those lenders were required to have given notice has now passed, and those lenders can no
longer demand prepayment. One remaining lender can demand prepayment of its portion of the loans outstanding on February 28, 2012
($152 million at September 25, 2011) if notice is given by December 15, 2011. In September 2011, we received a letter from the
Government of India’s Department of Telecommunications (DoT) notifying us that our applications to obtain licenses to utilize the
spectrum had been rejected. In response, we filed a petition with the Telecom Disputes Settlement and Appellate Tribunal seeking to
overturn this letter. If the DoT’s rejection of such applications were to be considered an event of default, the bank lenders could declare
the loans due and payable immediately. We have received waivers from each of the bank lenders related to this matter until at least
April 1, 2012, conditioned upon our continuing to pursue our legal rights in this matter, and agreeing that any default will be deemed
cured under certain circumstances.
Total
2012
2013-2014
2015-2016
Beyond
2016
No
Expiration
Date
Purchase obligations (1)
$
2,098
$
1,923
$
102
$
64
$
9
$
—
Loans payable (2)
1,123
108
1,015
—
—
—
Operating lease obligations
464
116
109
58
181
—
Capital lease obligations (3)
395
12
25
27
331
—
Equity funding commitments (4)
2
—
—
—
—
2
Other long-term liabilities (5)(6)
173
4
155
13
—
1
Total contractual obligations
$
4,255
$
2,163
$
1,406
$
162
$
521
$
3
(1)
Total purchase obligations include $1.4 billion in commitments to purchase integrated circuit product inventories.
(2)
Amounts include principal and interest. The loans are payable in Indian rupees and bear interest at an annual rate based on the highest
rate among the bank lenders, which is reset quarterly, plus 0.25% (10% at September 25, 2011). One lender can demand prepayment of
its portion of the loans outstanding on February 28, 2012 ($152 million at September 25, 2011) if notice is given by December 15,
2011. We have received conditional waivers from each of the bank lenders until at least April 1, 2012. As a result of these items, the
due date for all or a portion of the loans payable could be accelerated.
(3)
Amounts represent future minimum lease payments including interest payments. Capital lease obligations are included in other
liabilities in the consolidated balance sheet at September 25, 2011 .
(4)
These commitments do not have fixed funding dates and are subject to certain conditions. Commitments represent the maximum
amounts to be financed or funded under these arrangements; actual financing or funding may be in lesser amounts or not at all.
(5)
Certain long-term liabilities reflected on our balance sheet, such as unearned revenues, are not presented in this table because they do
not require cash settlement in the future. Other long-term liabilities as presented in this table include the related current portions.
(6)
Our consolidated balance sheet at September 25, 2011 included a $38 million noncurrent liability for uncertain tax