Qualcomm 2014 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 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

QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Segment assets are comprised of accounts receivable and inventories for all reportable segments other than QSI. QSI segment assets include
certain marketable securities, notes receivable, wireless spectrum, other investments and all assets of consolidated subsidiaries included in QSI.
QSI assets at September 28, 2014 , September 29, 2013 and September 30, 2012 included $18 million , $17 million and $11 million ,
respectively, related to investments in equity method investees. Reconciling items for total assets included $313 million , $892 million and $1.2
billion at September 28, 2014 , September 29, 2013 and September 30, 2012 , respectively, of goodwill and other assets related to the
Company’s QMT division. Total segment assets also differ from total assets on a consolidated basis as a result of unallocated corporate assets
primarily comprised of certain cash, cash equivalents, marketable securities, property, plant and equipment, deferred tax assets, intangible assets
and assets of nonreportable segments. The net book values of long-lived tangible assets located outside of the United States were $288 million ,
$896 million and $1.1 billion at September 28, 2014 , September 29, 2013 and September 30, 2012 , respectively. The net book values of long-
lived tangible assets located in the United States were $2.2 billion , $2.1 billion and $1.8 billion at September 28, 2014 , September 29, 2013
and
September 30, 2012 , respectively.
Other reconciling items were comprised as follows (in millions):
Nonreportable segments’ losses before taxes during fiscal 2014 , 2013 and 2012 were primarily attributable to the Company’s QMT
division, including $607 million , $158 million and $54 million in impairment charges, respectively (Note 2). Unallocated acquisition-related
expenses were comprised as follows (in millions):
Note 9. Acquisitions
During fiscal 2014 , the Company acquired 11 businesses for total cash consideration of $775 million and the exchange of unvested stock
options that had a negligible fair value. Technology-based intangible assets recognized in the amount of $146 million are being amortized on a
straight-line basis over a weighted-average useful life of six years. Goodwill of $628 million was recognized in these transactions, of which
$294
million is expected to be deductible for tax purposes.
During fiscal 2013 , the Company acquired five businesses for total cash consideration of $114 million . Technology-based intangible assets
recognized in the amount of $24 million are being amortized on a straight-line basis over a weighted-average useful life of six
years. Goodwill of
$83 million was recognized in these transactions, of which $21 million is expected to be deductible for tax purposes.
During fiscal 2012 , the Company acquired eight businesses for total cash consideration of $774 million . Technology-based intangible
assets recognized in the amount of $164 million are being amortized on a straight-line basis over a weighted-average useful life of six years.
Goodwill of $517 million was recognized in these transactions, of which $71 million is expected to be deductible for tax purposes.
F- 27
2014
2013
2012
Revenues
Nonreportable segments
$
258
$
601
$
657
Intersegment eliminations
(5
)
(4
)
(4
)
$
253
$
597
$
653
EBT
Unallocated cost of equipment and services revenues
$
(300
)
$
(335
)
$
(300
)
Unallocated research and development expenses
(860
)
(789
)
(702
)
Unallocated selling, general and administrative expenses
(412
)
(502
)
(549
)
Unallocated other income (expense)
142
(173
)
—
Unallocated investment income, net
1,213
877
928
Nonreportable segments
(1,395
)
(719
)
(526
)
$
(1,612
)
$
(1,641
)
$
(1,149
)
2014
2013
2012
Cost of equipment and services revenues
$
251
$
264
$
225
Research and development expenses
30
3
—
Selling, general and administrative expenses
25
26
43