Qualcomm 2014 Annual Report Download - page 82

QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
contractors; device-to-device communication, including software for the connected home; data center; medical device connectivity and related
data management; and augmented reality.
The Company evaluates the performance of its segments based on earnings (loss) before income taxes (EBT) from continuing operations.
Segment EBT includes the allocation of certain corporate expenses to the segments, including depreciation and amortization expense related to
unallocated corporate assets. Certain income and charges are not allocated to segments in the Company’s management reports because they are
not considered in evaluating the segments’ operating performance. Unallocated income and charges include certain net investment income;
certain share-based compensation; and certain research and development expenses, selling, general and administrative expenses and other
expenses or income that were deemed to be not directly related to the businesses of the segments. Additionally, unallocated charges include
recognition of the step-up of inventories to fair value, amortization and impairment of certain intangible assets and certain other acquisition-
related charges. The table below presents revenues, EBT and total assets for reportable segments (in millions):
Intersegment revenues included in QCT revenues were negligible in all periods presented. All other revenues for reportable segments were
from external customers for all periods presented.
The Company reports revenues from external customers by country based on the location to which its products or services are delivered,
which for QCT is generally the country in which its customers manufacture their products, or for licensing revenues, the invoiced addresses of
its licensees. As a result, the revenues by country presented herein are not necessarily indicative of either the country in which the devices
containing our products and/or intellectual property are ultimately sold to consumers or the country in which the companies that sell the devices
are headquartered. For example, China revenues could include revenues related to shipments of integrated circuits to a company that is
headquartered in South Korea but that manufactures devices in China, which devices are then sold to consumers in Europe and/or the United
States. Revenues by country were as follows (in millions):
Interest income included in QSI EBT was negligible in fiscal 2014 and 2013 and was $19 million in fiscal 2012, and interest expense
included in QSI EBT was negligible in fiscal 2014 and was $18 million and $79 million in fiscal 2013 and 2012, respectively. Interest income
and interest expense recorded by other segments were negligible in all periods presented. Effectively all equity in losses of investees (Note 3)
was recorded in QSI in fiscal 2014 , 2013 and 2012 .
F- 26
QCT QTL QSI
Reconciling
Items
Total
2014
Revenues
$
18,665
$
7,569
$
—
$
253
$
26,487
EBT
3,807
6,590
(7
)
(1,612
)
8,778
Total assets
3,639
161
484
44,290
48,574
2013
Revenues
$
16,715
$
7,554
$
—
$
597
$
24,866
EBT
3,189
6,590
56
(1,641
)
8,194
Total assets
3,305
28
511
41,672
45,516
2012
Revenues
$
12,141
$
6,327
$
—
$
653
$
19,121
EBT
2,296
5,585
(170
)
(1,149
)
6,562
Total assets
2,278
63
1,424
39,247
43,012
2014 2013 2012
China (including Hong Kong)
$
13,200
$
12,288
$
7,971
South Korea
6,172
4,983
4,203
Taiwan
2,876
2,683
2,648
United States
372
805
967
Other foreign
3,867
4,107
3,332
$
26,487
$
24,866
$
19,121