Qualcomm 2011 Annual Report Download - page 79

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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 4. Composition of Certain Financial Statement Items
Accounts Receivable.
Inventories.
Property, Plant and Equipment.
Depreciation and amortization expense related to property, plant and equipment for fiscal 2011 , 2010 and 2009 was $704 million , $437
million 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. Amortization of assets recorded under capital leases is included in depreciation expense. Capital lease additions
during fiscal 2011 , 2010 and 2009 were $1 million , $40 million and $50 million , respectively.
At September 25, 2011 and September 26, 2010
, buildings and improvements and leasehold improvements with aggregate net book value of
$19 million and $38 million , respectively, including accumulated depreciation and amortization of $8 million and $8 million
, respectively, were
leased to third parties or held for lease to third parties. Future minimum rental income on facilities leased to others in fiscal 2012 to 2015 is
expected to be $5 million , $3 million , $2 million and $1 million , respectively, and zero thereafter.
Goodwill and Other Intangible Assets. The Company’s reportable segment assets do not include goodwill. The Company allocates goodwill
to its reporting units for annual impairment testing purposes. Goodwill was allocable to reporting units included in the Company’s reportable
segments and to its QMT division, a nonreportable segment, as described in Note 10 as follows (in millions):
F- 17
September 25,
2011
September 26,
2010
(In millions)
Trade, net of allowances for doubtful accounts of $2 and $3, respectively
$
951
$
697
Long-term contracts
32
25
Other
10
8
$
993
$
730
September 25,
2011
September 26,
2010
(In millions)
Raw materials
$
15
$
15
Work-in-process
384
284
Finished goods
366
229
$
765
$
528
September 25,
2011
September 26,
2010
(In millions)
Land
$
203
$
201
Buildings and improvements
1,427
1,424
Computer equipment and software
1,267
1,144
Machinery and equipment
1,798
1,684
Furniture and office equipment
75
70
Leasehold improvements
263
242
Construction in progress
394
75
5,427
4,840
Less accumulated depreciation and amortization
(3,013
)
(2,467
)
$
2,414
$
2,373