Qualcomm 2012 Annual Report Download - page 227

APPENDIX A
FISCAL YEAR 2012 PERFORMANCE GOALS AND PAYMENT FORMULA
[ Executive's Name ]
I. Formula to Calculate Maximum Award Amount
Subject to the Committee's exercise of discretion under section 9.5(b) of the Plan, you will be eligible to earn the Maximum Award Amount
specified above if the Company's fiscal 2012 Adjusted GAAP operating income is equal to or greater than $3,769,500,000 (75% of the
Company's fiscal 2011 GAAP operating income). For this purpose, “ 2012 Adjusted GAAP operating income ”
is determined in accordance
with U.S. generally accepted accounting principles or accounting standards as may be required by the Financial Accounting Standards
Board as of the Grant Date (“ GAAP ”), but determined excluding (1) results from operations of the Qualcomm Strategic Initiative (“QSI”)
segment; (2) all share-based compensation other than amounts related to share-based awards granted under a bonus program that may
result in the issuance of unrestricted shares of the Company's common stock; (3) the following items resulting from acquisitions: acquired
in-process research and development expenses, recognition of the step-up of inventories to fair value and amortization of certain
intangible assets; and (4) losses or expenses attributable to discontinued operations, plant shut-downs, or other restructuring. If the
Company's fiscal 2012 Adjusted GAAP operating income is less than $3,769,500,000, your Maximum Award Amount shall be reduced to
an amount equal to (a) 0.50% of 2012 Adjusted GAAP operating income multiplied by (b) a fraction, the numerator of which is the
Maximum Award Amount stated above, and the denominator of which is $17,208,750.
The actual amount of the payment you receive under this Award will be determined by the Committee at the end of the Performance
Period based on the formula specified below for measuring the Company's financial performance and the Committee's exercise of
discretion as provided in Section 9.5(b) of the Plan.
II. Formula to Calculate Amount Payable
No amount will be payable unless the Company has at least $4,877,508 in Non-
GAAP operating income (as defined below) for fiscal 2012.
If Non-GAAP operating income equals or exceeds that amount, subject to the Committee's exercise of discretion under section 9.5(b) of
the Plan, the conditions of this Award and the Maximum Award Amount determined above, the amount payable under this Award, if any,
shall be calculated after the completion of fiscal 2012 as follows:
“ Non-GAAP revenues ” and “ Non-GAAP operating income ” are as reported in the Company's fiscal 2012 annual earnings
release, subject to adjustments pursuant to the policy established by the Committee. The Company applies a relative weighting of
40% to Non-GAAP revenues and 60% to Non-GAAP operating income.
Base Salary Bonus Target as a Percent of Base Salary
Threshold Award Amount
(30% of
Target Award Amount) Target Award Amount
Maximum Award Amount
(250% of Target Award
Amount)
1. The Company fiscal 2012 financial Performance Measures and Performance Targets for purposes of determining the amount
payable under this Award are as follows:
Performance Measures
Performance Targets
• Non-GAAP revenues:
$
18,566,639
• Non-GAAP operating income:
$
6,967,868
2. The weighted achievement ratio for Non-GAAP revenues will be the result of 0.40 multiplied by a fraction, the numerator of which
is the reported Non-GAAP revenues for fiscal 2012, and the denominator of which is the fiscal 2012 Non-GAAP revenues
objective stated above.
3. The weighted achievement ratio for Non-GAAP operating income will be the result of 0.60 multiplied by a fraction, the numerator
of which is the reported Non-GAAP operating income for fiscal 2012, and the denominator of which is the fiscal 2012 Non-GAAP
operating income objective stated above.
4. The resulting weighted achievement ratios for Non-GAAP revenues and Non-GAAP operating income will then be summed (the “
Weighted Achievement Ratio ”) and the “ Incentive Multiple ” will be calculated according to the schedule set forth below: