Qualcomm 2014 Annual Report Download - page 28

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Potential tax liabilities could adversely affect our results of operations.
We are subject to income taxes in the United States and numerous foreign jurisdictions, including Singapore where our QCT segments’ non-
United States headquarters is located. Significant judgment is required in determining our provision for income taxes. Although we believe that
our tax estimates are reasonable, the final determination of tax audits and any related litigation could materially differ from amounts reflected in
our historical income tax provisions and accruals. In such case, our income tax provision and results of operations in the period or periods in
which that determination is made could be negatively affected.
We have tax incentives in Singapore provided that we meet specified employment and incentive criteria, and as a result of expiration of
these incentives, our Singapore tax rate is expected to increase in fiscal 2017 and again in fiscal 2027. If we do not meet the criteria required to
retain such incentives, our Singapore tax rate could increase prior to those dates, and our results of operations could be adversely affected.
Tax rules may change in a manner that adversely affects our future reported financial results or the way we conduct our business. For
example, we consider the operating earnings of certain non-United States subsidiaries to be indefinitely reinvested outside the United States
based on our current needs for those earnings to be reinvested offshore as well as estimates that future domestic cash generated from operations
and/or borrowings will be sufficient to meet future domestic cash needs for the foreseeable future. No provision has been made for United States
federal, state or foreign taxes that may result from future remittances of the undistributed earnings of these foreign subsidiaries. Our future
financial results and liquidity may be adversely affected if tax rules regarding unrepatriated earnings change, if domestic cash needs require us to
repatriate foreign earnings, if the shares of these foreign subsidiaries were sold or otherwise transferred or if the United States international tax
rules change as part of comprehensive tax reform or other tax legislation. If our effective tax rates were to increase, particularly in the United
States or Singapore, our operating results, cash flows and/or financial condition could be adversely affected.
Item 1B. Unresolved Staff Comments
None.
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