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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Stock Repurchase Program. On March 4, 2014 , the Company announced a new stock repurchase program authorizing it to repurchase up
to $7.8 billion of the Company’s common stock. This stock repurchase program replaced the previous $5.0 billion stock repurchase program
announced on September 11, 2013. The stock repurchase program has no expiration date. Any shares repurchased are retired, and the amount
paid in excess of par value is recorded to paid-in capital. During fiscal 2014 , 2013 and 2012 , the Company repurchased and retired 60,253,000
,
71,696,000 and 23,893,000 shares of common stock, respectively, for $4.5 billion , $4.6 billion and $1.3 billion , respectively, before
commissions. At September 28, 2014 , approximately $5.3 billion remained authorized for repurchase under the Company’s stock repurchase
program. Since September 28, 2014 , the Company repurchased 8,595,000 shares of common stock for $638 million .
During fiscal 2012, three put options that the Company sold on its own stock in connection with prior stock repurchase programs expired
unexercised, and the Company recognized gains of $80 million in net investment income due to changes in the fair values of the put options. No
put options were outstanding during fiscal 2014 and 2013.
Dividends. Dividends charged to retained earnings in fiscal 2014 , 2013 and 2012 were as follows (in millions, except per share data):
On October 16, 2014 , the Company announced a cash dividend of $0.42 per share of common stock, payable on December 18, 2014 to
stockholders of record as of December 1, 2014 , which will be reflected in the consolidated financial statements in the first quarter of fiscal
2015 .
Note 6. Employee Benefit Plans
Employee Savings and Retirement Plan. The Company has a 401(k) plan that allows eligible employees to contribute up to 100% of their
eligible compensation, subject to annual limits. The Company matches a portion of the employee contributions and may, at its discretion, make
additional contributions based upon earnings. The Company’s contribution expense was $77 million , $70 million and $60 million in fiscal
2014 , 2013 and 2012 , respectively.
Equity Compensation Plans. The 2006 Long-
Term Incentive Plan (the 2006 Plan) was adopted during the second quarter of fiscal 2006 and
replaced the 2001 Stock Option Plan and the 2001 Non-Employee Directors’ Stock Option Plan and their predecessor plans (the Prior Plans).
The 2006 Plan provides for the grant of incentive and non-qualified stock options, restricted stock units, stock appreciation rights, restricted
stock, performance stock units and other share-based awards and is the source of shares issued under the Non-Qualified Deferred Compensation
Plan (the NQDCP). The shares authorized under the 2006 Plan were approximately 573,284,000 at September 28, 2014 . The share reserve
remaining under the 2006 Plan was approximately 226,754,000 at September 28, 2014 . Shares subject to any stock option under a Prior Plan
that is terminated or canceled (but not a stock option under a Prior Plan that expires) following the date that the 2006 Plan was approved by
stockholders, and shares that are subject to an award under the NQDCP and are returned to the Company because they fail to vest, will again
become available for grant under the 2006 Plan. The Board of Directors of the Company may amend or terminate the 2006 Plan at any time.
Certain amendments, including an increase in the share reserve, require stockholder approval.
During fiscal 2014 , the Company assumed 152,000 outstanding stock options under various stock-based incentive plans (the Assumed
Plans) as a result of a business acquisition (Note 9). All remaining shares available under Assumed Plans were terminated on the date of the
acquisition, and no additional shares may be granted under those plans.
Net share-based awards, after forfeitures and cancelations, granted during fiscal 2014 , 2013 and 2012 represented 0.8% , 0.8% and 0.9% of
outstanding shares as of the beginning of each fiscal year, respectively. Total share-based awards granted during fiscal 2014 , 2013 and 2012
represented 1.0% of outstanding shares as of the end of each fiscal year.
RSUs are share awards that entitle the holder to receive shares of the Company’s common stock upon vesting. The RSUs generally include
dividend-equivalent rights and vest over periods of three years from the date of grant. A summary of RSU transactions for all equity
compensation plans follows:
F- 20
2014
2013
2012
Per Share
Total
Per Share
Total
Per Share
Total
First quarter
$
0.350
$
599
$
0.250
$
435
$
0.215
$
368
Second quarter
0.350
599
0.250
439
0.215
377
Third quarter
0.420
718
0.350
615
0.250
429
Fourth quarter
0.420
713
0.350
604
0.250
438
$
1.540
$
2,629
$
1.200
$
2,093
$
0.930
$
1,612