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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2014 , 2013 and 2012, certain long-lived assets and goodwill related to the Company’s QMT division were written down to their estimated fair
values resulting in impairment charges of $607 million , $158 million and $54 million , respectively (Note 2). At September 28, 2014 , the
carrying values of the QMT division’s property, plant and equipment and goodwill were $148 million and $35 million . During fiscal 2013 , the
Company recorded its retained investment in the former BWA subsidiaries at its estimated fair value of $34 million (Note 10). During fiscal
2014 and 2012, goodwill related to the Company’
s former QRS (Qualcomm Retail Solutions) division was written down to its implied fair value
resulting in impairment charges of $16 million and $23 million , respectively, which were recorded in other expenses. The estimation of fair
values and cash flows used in these fair value measurements required the use of significant unobservable inputs, and as a result, the fair value
measurements were classified as Level 3. During fiscal 2014 , 2013 and 2012 , the Company did not have any other significant assets or
liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.
Note 13. Marketable Securities
Marketable securities were comprised as follows (in millions):
The Company holds an investment in a debt fund for which the Company elected the fair value option because the Company is able to
redeem its shares at net asset value, which is determined daily. The investment would have otherwise been recorded using the equity method.
The debt fund has no single maturity date. At September 28, 2014 , the Company had an effective ownership interest in the debt fund of 26% .
Net increases in fair value associated with this investment of
$33 million , $17 million and $45 million were recognized in net investment
income in fiscal 2014, 2013 and 2012, respectively.
The Company classifies certain portfolios of debt securities that utilize derivative instruments to acquire or reduce foreign exchange, interest
rate and/or equity, prepayment and credit risks as trading. Net losses recognized on debt securities classified as trading held at September 28,
2014 and September 29, 2013 were $5 million and $20 million , respectively.
At September 28, 2014 , the contractual maturities of available-for-sale debt securities were as follows (in millions):
F- 30
Current
Noncurrent
September 28,
2014
September 29,
2013
September 28,
2014
September 29,
2013
Trading:
U.S. Treasury securities and government-related securities
$
320
$
241
$
38
$
49
Corporate bonds and notes
191
269
367
256
Mortgage- and asset-backed securities
—
—
237
104
Total trading
511
510
642
409
Available-for-sale:
U.S. Treasury securities and government-related securities
805
721
392
71
Corporate bonds and notes
6,274
4,533
7,649
6,812
Mortgage- and asset-backed securities
1,063
745
195
328
Auction rate securities
—
—
83
83
Common and preferred stock
192
8
1,605
2,351
Equity funds
—
—
541
960
Debt funds
813
2,307
2,560
2,889
Total available-for-sale
9,147
8,314
13,025
13,494
Fair value option:
Debt fund
—
—
790
537
Total marketable securities
$
9,658
$
8,824
$
14,457
$
14,440
Years to Maturity
No Single
Less Than
One to
Five to
Greater Than
Maturity
One Year
Five Years
Ten Years
Ten Years
Date
Total
$
3,577
$
9,334
$
1,509
$
700
$
4,714
$
19,834