Qualcomm 2011 Annual Report Download - page 95

QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
operations (Note 11).
The Company evaluates the performance of its segments based on earnings (loss) before income taxes (EBT) from continuing operations.
Segment EBT includes the allocation of certain corporate expenses to the segments, including depreciation and amortization expense related to
unallocated corporate assets. Certain income and charges are not allocated to segments in the Company’s management reports because they are
not considered in evaluating the segments’ operating performance. Unallocated income and charges include certain investment income (loss);
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 include recognition of the step-up of inventories to fair value and amortization of certain intangible assets. Such charges related to
acquisitions that were completed prior to the third quarter of fiscal 2011 are allocated to the respective segments. The table below presents
revenues, EBT and total assets for reportable segments (in millions):
*Revenues and EBT for fiscal 2010 and 2009 were adjusted to present discontinued operations (Note 11). Share-based payments that had been included in
reconciling items and QSI revenues and EBT have been adjusted to conform for all periods presented.
Segment assets are comprised of accounts receivable and inventories for all reportable segments other than QSI. QSI segment assets include
certain marketable securities, notes receivable, spectrum licenses, other investments and all assets of QSI’s consolidated subsidiaries. QSI
segment assets related to the discontinued FLO TV business totaled $913 million at September 25, 2011 and $1.3 billion at both September 26,
2010 and September 27, 2009 . QSI assets at September 25, 2011 , September 26, 2010 and September 27, 2009 also included $20 million , $20
million and $10 million , respectively, related to investments in equity method investees. Reconciling items for total assets included $806
million , $384 million and $389 million at September 25, 2011 , September 26, 2010 and September 27, 2009 , respectively, of goodwill and
other assets related to the Company’s QMT division, a nonreportable segment developing display technology for mobile devices and other
applications. Total segment assets also differ from total assets on a consolidated basis as a result of unallocated corporate assets primarily
comprised of certain cash, cash equivalents, marketable securities, property, plant and equipment, deferred tax assets, goodwill, other intangible
assets and assets of nonreportable segments. The net book values of long-lived assets located outside of the United States were $629 million ,
$221 million and $256 million at September 25, 2011 , September 26, 2010 and September 27, 2009 , respectively. The net book values of long-
lived assets located in the United States were $1.8 billion , $2.2 billion and $2.1 billion at September 25, 2011 , September 26, 2010 and
September 27, 2009 , respectively.
Revenues from each of the Company’s divisions aggregated into the QWI reportable segment were as follows (in millions):
Other reconciling items were comprised as follows (in millions):
QCT
QTL QWI QSI*
Reconciling
Items*
Total*
2011
Revenues
$
8,859
$
5,422
$
656
$
—
$
20
$
14,957
EBT
2,056
4,753
(152
)
(132
)
(838
)
5,687
Total assets
1,569
36
136
2,386
32,295
36,422
2010
Revenues
$
6,695
$
3,659
$
628
$
—
$
—
$
10,982
EBT
1,693
3,020
12
7
(239
)
4,493
Total assets
1,085
28
129
2,745
26,585
30,572
2009
Revenues
$
6,135
$
3,605
$
641
$
—
$
6
$
10,387
EBT
1,441
3,068
20
(54
)
(2,072
)
2,403
Total assets
892
89
142
1,614
24,708
27,445
2011
2010 2009
QES
$
395
$
376
$
344
QIS
150
173
229
QGOV
100
74
66
Firethorn
11
7
3
Eliminations —
(
2
)
(1
)
$
656
$
628
$
641