Qualcomm 2012 Annual Report Download - page 45

equivalents and marketable securities at September 30, 2012 consisted of $9.8 billion held domestically and $17.0 billion held by foreign
subsidiaries. Of the amount of cash, cash equivalents and marketable securities held by our foreign subsidiaries at September 30, 2012 , $16.4
billion is indefinitely reinvested and would be subject to material tax effects if repatriated. Due to tax and accounting considerations, we derive
liquidity for operations primarily from domestic cash flow and investments held domestically. Total cash provided by operating activities
increased to $6.0 billion during fiscal 2012 , compared to $4.9 billion during fiscal 2011 .
During fiscal 2012 , we repurchased and retired 23,893,000 shares of common stock for $1.3 billion, before commissions. At September 30,
2012 , approximately $2.8 billion remained available for repurchase under our stock repurchase program. Since September 30, 2012 , we
repurchased and retired 4,132,000 shares of common stock for $240 million . The stock repurchase program has no expiration date. We continue
to evaluate repurchases as a means of returning capital to stockholders, subject to our periodic determinations that repurchases are in the best
interest of our stockholders.
We paid dividends totaling $1.6 billion, $1.3 billion and $1.2 billion, or $0.93, $0.81 and $0.72 per common share, during fiscal 2012 , 2011
and 2010 , respectively. On March 6, 2012, we announced an increase in our quarterly dividend from $0.215 to $0.25 per share of common
stock. We announced cash dividends totaling $426 million, or $0.25 per share, during the fourth quarter of fiscal 2012 , which were paid on
September 26, 2012. On October 17, 2012, we announced a cash dividend of $0.25 per share of common stock, payable on December 21, 2012
to stockholders of record as of December 7, 2012. We intend to continue to use cash dividends as a means of returning capital to stockholders,
subject to capital availability and our view that cash dividends are in the best interests of our stockholders.
Accounts receivable increased 47% during fiscal 2012. Days sales outstanding, on a consolidated basis, were 29 days at September 30,
2012 , compared to 22 days at September 25, 2011 . The increase in accounts receivable and the related days sales outstanding were primarily
due to growth of the business and the effects of timing of shipments and customer payments for receivables related to integrated circuits.
We believe our current cash and cash equivalents, marketable securities and our expected cash flow generated from operations will provide
us with flexibility and satisfy our working and other capital requirements over the next fiscal year and beyond based on our current business
plans.
Contractual Obligations / Off-Balance Sheet Arrangements
We have no significant contractual obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our
consolidated financial statements. We have no material off-balance sheet arrangements as defined in S-K 303(a)(4)(ii).
At September 30, 2012 , our outstanding contractual obligations included (in millions):
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• Our research and development expenditures were $3.9 billion and $3.0 billion in fiscal 2012 and 2011 , respectively, and we expect to
continue to invest heavily in research and development for new technologies, applications and services for voice and data
communications, primarily in the wireless industry.
• Cash outflows for capital expenditures were $1.3 billion and $593 million in fiscal 2012 and 2011 , respectively, including
approximately $480 million and $225 million, respectively, related to the construction of a new manufacturing facility in Taiwan for
our QMT division. We expect to continue to incur capital expenditures in the future to support our business, including research and
development activities. Future capital expenditures may be impacted by transactions that are currently not forecasted.
• Our purchase obligations for fiscal 2013 , some of which relate to research and development activities and capital expenditures, totaled
$3.1 billion at September 30, 2012 .
• The acquisition of Atheros in fiscal 2011 was more significant than others we have made in the past. We expect to continue making
strategic investments and acquisitions, the amounts of which could vary significantly, to open new opportunities for our technologies,
obtain development resources, grow our patent portfolio or pursue new business.
• At September 30, 2012, we have loan and debenture liabilities in the aggregate of $1.1 billion, which were classified as held for sale,
related to the BWA spectrum won in India that are denominated in Indian rupees. At September 30, 2012 , loans in the aggregate of
$545 million are due and payable in full on December 18, 2012, and $519 million in debentures, including accrued interest, are due and
payable in full on June 25, 2017. We intend to refinance the loans with long-term loans on or before December 18, 2012. Each holder
has the right to demand redemption of its portion of the debentures outstanding on June 25, 2013 subject to sufficient prior written
notice. As a result, the debentures were classified as current liabilities. The loans bear interest at rates that are reset quarterly (ranging
from 10.00% to 10.50% at September 30, 2012 ); interest payments are due monthly. The debentures bear interest at an agreed-upon
annual rate, which is compounded annually and reset semi-annually beginning on June 25, 2013 (10.25% at September 30, 2012 ) with
interest due upon redemption.