Qualcomm 2014 Annual Report Download - page 70

QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Shares of common stock equivalents outstanding that were not included in the computation of diluted earnings per common share because
the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period were 846,000 , 507,000 and
3,537,000 during fiscal 2014, 2013 and 2012, respectively. Put options outstanding during fiscal 2012 were not included in the earnings per
common share computation because the put options’ exercise prices were less than the average market price of the common stock while they
were outstanding, and therefore, the effect on diluted earnings per common share would be anti-dilutive.
Other Comprehensive Income. Other comprehensive income is defined as the change in equity of a business enterprise during a period
from transactions and other events and circumstances from non-owner sources, other than net income and including foreign currency translation
adjustments and unrealized gains and losses on marketable securities and derivative instruments. Changes in the components of accumulated
other comprehensive income, net of income taxes, in the Company’s stockholders’ equity during the fiscal year ended September 28, 2014 were
as follows (in millions):
Recent Accounting Pronouncements.
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU)
No. 2014
-09, “Revenue from Contracts with Customers,” which outlines a comprehensive revenue recognition model and supersedes most
current revenue recognition guidance. The new standard requires a company to recognize revenue upon transfer of goods or services to a
customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. ASU 2014-09 defines a
five-
step approach for recognizing revenue which may require a company to use more judgment and make more estimates than under the current
guidance. This ASU will be effective for the Company starting in the first quarter of fiscal 2018. The new standard allows for two methods of
adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption,
meaning the cumulative effect of applying the new standard is recognized as an adjustment to the fiscal 2018 opening retained earnings balance.
The Company is in the process of determining the adoption method as well as the effects the adoption will have on its consolidated financial
statements.
Note 2. Composition of Certain Financial Statement Items
F- 14
Foreign
Currency
Translation
Adjustment
Noncredit Other-
than-Temporary
Impairment Losses
and Subsequent
Changes in Fair
Value for Certain
Available-for-Sale
Debt Securities
Net
Unrealized
Gain on
Other
Available-for-
Sale
Securities
Net Unrealized
Gain (Loss) on
Derivative
Instruments
Total
Accumulated
Other
Comprehensive
Income
Balance at September 29, 2013
$
(115
)
$
25
$
825
$
18
$
753
Other comprehensive income (loss) before
reclassifications
1
(1
)
259
8
267
Reclassifications from accumulated other
comprehensive income (loss)
1
(a)
—
(a)
(361
)
(a)
(26
)
(b)
(386
)
Other comprehensive income (loss)
2
(1
)
(102
)
(18
)
(119
)
Balance at September 28, 2014
$
(113
)
$
24
$
723
$
—
$
634
(a)
Reclassifications from accumulated other comprehensive income (loss) of $360 million for the fiscal year ended September 28, 2014 were recorded
in investment income, net (Note 3).
(b) Reclassifications from accumulated other comprehensive income (loss) of $26 million for the fiscal year ended September 28, 2014 were recorded in
revenues, cost of equipment and services revenues, research and development expenses and selling, general and administrative expenses.
Accounts Receivable (in millions)
September 28,
2014
September 29,
2013
Trade, net of allowances for doubtful accounts of $5 and $2, respectively
$
2,362
$
2,066
Long-term contracts
17
27
Other
33
49
$
2,412
$
2,142