Qualcomm 2014 Annual Report Download - page 65

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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
investing activities in the consolidated statements of cash flows. At September 28, 2014 and September 29, 2013 , the fair values of these
derivative instruments recorded in total assets and in total liabilities were negligible.
Gross Notional Amounts. The gross notional amounts of the Company’
s foreign currency and investment portfolio derivatives by instrument
type were as follows (in millions):
The gross notional amounts by currency were as follows (in millions):
Stock Repurchase Program: In connection with the Company’s stock repurchase program, the Company may sell put options that require it
to repurchase shares of its common stock at fixed prices. These put options subject the Company to equity price risk. Changes in the fair value of
these put options are recorded in net investment income as gains and losses on derivative instruments. The cash flows associated with the put
options are classified as cash flows from investing activities in the consolidated statements of cash flows. There were no put options outstanding
at September 28, 2014 and September 29, 2013 .
Fair Value Measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an
exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the
measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the
use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained
from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market
participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:
Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company
reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a
reclassification of levels for certain securities within the fair value hierarchy.
F- 9
September 28,
2014
September 29,
2013
Futures
$
260
$
106
Forwards
210
544
Options
122
609
Swaps
5
18
$
597
$
1,277
September 28,
2014
September 29,
2013
United States dollar
$
266
$
108
Korean won
121
—
British pound sterling
97
46
Euro
43
161
Japanese yen
19
617
Canadian dollar
10
62
Indian rupee
3
205
Other
38
78
$
597
$
1,277
•
Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets.
• Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable
for the instrument.
• Level 3 includes financial instruments for which fair value is derived from valuation techniques in which one or more significant inputs
are unobservable, including the Company’s own assumptions.