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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company leases certain of its land, facilities and equipment under noncancelable operating leases, with terms ranging from
less than one
year
to 35 years and with provisions in certain leases for cost-of-living increases. Rental expense for fiscal 2011, 2010 and 2009 was $87
million , $85 million and $80 million , respectively. The Company leases certain property under capital lease agreements associated with its
discontinued operations (Note 11), primarily related to site leases that have an initial term of five to seven years with renewal options of up to
five additional renewal periods. In determining the capital lease classification for the site leases upon commencement of each lease, the
Company included all renewal options. As a result of its restructuring plan, the Company does not intend to renew its existing site capital leases.
At September 25, 2011 , the Company had $149 million of site capital lease assets (which are included in buildings and improvements in
property, plant and equipment) and $170 million of capital lease obligations (which are included in other liabilities) that pertain to lease optional
renewal periods. The Company expects to write off these amounts at the end of the current contractual lease terms. Any early terminations may
impact the amounts that are written off.
Note 10. Segment Information
The Company is organized on the basis of products and services. The Company aggregates four of its divisions into the Qualcomm Wireless
& Internet segment and three of its divisions into the Qualcomm Strategic Initiatives (QSI) segment. Reportable segments are as follows:
Capital
Leases
Operating
Leases
Total
2012
$
12
$
115
$
127
2013
12
60
72
2014
13
50
63
2015
13
33
46
2016
14
25
39
Thereafter
331
181
512
Total minimum lease payments
395
$
464
$
859
Deduct: Amounts representing interest
224
Present value of minimum lease payments
171
Deduct: Current portion of capital lease obligations
1
Long-term portion of capital lease obligations
$
170
• Qualcomm CDMA Technologies (QCT) — develops and supplies integrated circuits and system software based on CDMA, OFDMA
and other technologies for use 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 rights essential to and/or useful in the manufacture and sale of certain wireless
products, including, without limitation, products implementing cdmaOne, CDMA2000, WCDMA, CDMA TDD (including TD-
SCDMA), GSM/GPRS/EDGE and/or OFDMA standards, and collects fixed license fees and royalties in partial consideration for such
licenses;
• Qualcomm Wireless & Internet (QWI) — comprised of:
◦ Qualcomm Internet Services (QIS) — provides content enablement services for the wireless industry and push-to-talk and
other products and services for wireless network operators;
◦ Qualcomm Government Technologies (QGOV) — provides development, hardware, analytical expertise and services to
United States government agencies involving wireless communications technologies;
◦ Qualcomm Enterprise Services (QES) — provides satellite- and terrestrial-based two-way wireless information and position
reporting services to transportation and logistics companies and other enterprise companies with fleet vehicles; and
◦ Firethorn — builds and manages software applications that enable certain mobile commerce services.
• Qualcomm Strategic Initiatives (QSI) — comprised of the Company’s Qualcomm Ventures, Structured Finance & Strategic
Investments and FLO TV divisions. QSI makes strategic investments that the Company believes will open new opportunities for its
technologies, support the design and introduction of new products or services for voice and data communications or possess unique
capabilities or technology. Many of these strategic investments are in early-stage companies. QSI also holds spectrum licenses. The
results of QSI’s FLO TV business is presented as discontinued