Qualcomm 2014 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2014 Qualcomm annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

Federal Trade Commission (FTC) Investigation : On September 17, 2014, the FTC notified us that it is conducting an investigation of us
relating to Section 5 of the Federal Trade Commission Act. We understand that the investigation concerns primarily our licensing business,
including potential breach of FRAND commitments. If a violation of Section 5 is found, a broad range of remedies is potentially available to the
FTC, including imposing a fine or requiring modifications to our licensing practices. Given that this investigation is in its early stages, it is
difficult to predict the outcome of this matter or what remedies, if any, may be imposed by the FTC. We continue to cooperate with the FTC as it
conducts its investigation.
We will continue to vigorously defend ourselves in the foregoing matters. However, litigation and investigations are inherently uncertain.
Accordingly, we cannot predict the outcome of these matters. We have not recorded any accrual at September 28, 2014 for contingent losses
associated with these matters based on its belief that, with the exception of the NDRC matter, losses, while possible, are not probable. Further,
any possible range of loss cannot be reasonably estimated at this time. Regarding the NDRC matter, we believe that a loss is probable but that
any possible range of loss cannot be reasonably estimated at this time. The unfavorable resolution of one or more of these matters could have a
material adverse effect on our business, results of operations, financial condition or cash flows. We are engaged in numerous other legal actions
not described above arising in the ordinary course of our business and, while there can be no assurance, we believe that the ultimate outcome of
these other legal actions will not have a material adverse effect on our business, results of operations, financial condition or cash flows.
Item 4. Mine Safety Disclosures
Not applicable.
27