Qualcomm 2011 Annual Report Download - page 97

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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
*As adjusted for discontinued operations (Note 11)
Reconciling items for fiscal 2011 included $143 million , $59 million and $6 million of unallocated cost of equipment and services revenue,
unallocated selling, general and administrative expenses and unallocated research and development expenses, respectively, related to the step-up
of inventories to fair value and amortization of intangible assets resulting from acquisitions. Other nonreportable segments’ losses before taxes
during fiscal 2011 , 2010 and 2009 were primarily attributable to the Company’s QMT division.
Specified items included in segment EBT were as follows (in millions):
*As adjusted for discontinued operations (Note 11)
Intersegment revenues are based on prevailing market rates for substantially similar products and services or an approximation thereof, but
the purchasing segment may record the cost of revenues at the selling segment’s original cost. In that event, the elimination of the selling
segment’s gross margin is included with other intersegment eliminations in reconciling items. Effectively all equity in earnings (losses) of
investees was recorded in QSI in fiscal 2011 , 2010 and 2009 .
The Company distinguishes revenues from external customers by geographic areas based on the location to which its products, software or
services are delivered and, for QTL licensing revenues, the invoiced addresses of its licensees. Sales information by geographic area was as
follows (in millions):
F- 30
2011
2010*
2009*
Revenues
Elimination of intersegment revenues
$
(3
)
$
(10
)
$
(15
)
Other nonreportable segments
23
10
21
$
20
$
—
$
6
EBT
Unallocated cost of equipment and services revenues
$
(210
)
$
(42
)
$
(40
)
Unallocated research and development expenses
(553
)
(401
)
(372
)
Unallocated selling, general and administrative expenses
(506
)
(336
)
(293
)
Unallocated other operating expenses —
—
(
1,013
)
Unallocated investment income (loss), net
756
767
(141
)
Other nonreportable segments
(324
)
(224
)
(206
)
Intersegment eliminations
(1
)
(3
)
(7
)
$
(838
)
$
(239
)
$
(2,072
)
QCT
QTL
QWI
QSI*
2011
Revenues from external customers
$
8,856
$
5,422
$
656
$
—
Intersegment revenues
3
—
—
—
Interest income
1
1
—
20
Interest expense
1
—
—
99
2010
Revenues from external customers
$
6,686
$
3,659
$
628
$
—
Intersegment revenues
9
—
—
—
Interest income
1
2
2
8
Interest expense
1
—
(
4
)
27
2009
Revenues from external customers
$
6,125
$
3,603
$
638
$
—
Intersegment revenues
10
2
3
—
Interest income
4
12
1
3
Interest expense
—
1
1
—