Qualcomm 2012 Annual Report Download - page 89

QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Reconciling items for fiscal 2012 included $225 million and $43 million of unallocated cost of equipment and services revenue and
unallocated selling, general and administrative expenses, respectively, related to the step-up of inventories to fair value, the amortization of
intangible assets and other charges resulting from acquisitions. 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 2012 , 2011 and 2010 were primarily attributable to the Company’
s
QMT division.
Specified items included in segment EBT were as follows (in millions):
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 2012 , 2011 and 2010 .
The Company distinguishes revenues from external customers by geographic areas based on the location to which its products, software or
services are delivered or, for QTL licensing revenues, the invoiced addresses of its licensees. Sales information by geographic area was as
follows (in millions):
F- 27
2012 2011 2010
Revenues
Nonreportable segments
$
24
$
23
$
10
Intersegment eliminations
(4
)
(3
)
(10
)
$
20
$
20
$
—
EBT
Unallocated cost of equipment and services revenues
$
(300
)
$
(210
)
$
(42
)
Unallocated research and development expenses
(702
)
(553
)
(401
)
Unallocated selling, general and administrative expenses
(549
)
(506
)
(336
)
Unallocated investment income, net
928
756
767
Nonreportable segments
(511
)
(324
)
(224
)
Intersegment eliminations
—
(
1
)
(3
)
$
(1,134
)
$
(838
)
$
(239
)
QCT QTL QWI QSI
2012
Revenues from external customers
$
12,137
$
6,327
$
633
$
—
Intersegment revenues
4
—
—
—
Interest income
2
5
—
19
Interest expense
2
—
—
79
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