QUALCOMM INC/DE, 10-Q filed on 5/3/2023
Quarterly Report
v3.23.1
Cover Page - shares
shares in Millions
 6 Months Ended
Mar. 26, 2023
May 01, 2023
Cover [Abstract]    
Entity Registrant Name QUALCOMM INC/DE  
Entity Central Index Key 0000804328  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Current Fiscal Year End Date --09-24  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 26, 2023  
Document Transition Report false  
Entity File Number 0-19528  
Entity Registrant State of Incorporation DE  
Entity Employer ID 95-3685934  
Entity Address 5775 Morehouse Dr.  
Entity City San Diego  
Entity State CA  
Entity Zip Code 92121-1714  
City Area Code (858)  
Entity Phone Number 587-1121  
Title of 12(b) Security Common Stock, $0.0001 par value  
Trading Symbol QCOM  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,114
v3.23.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
shares in Millions, $ in Millions
Mar. 26, 2023
Sep. 25, 2022
Current assets:    
Cash and cash equivalents $ 3,488 $ 2,773
Marketable securities 3,188 3,609
Accounts receivable, net 3,691 5,643
Inventories 6,858 6,341
Held for sale assets 816 733
Other current assets 1,032 1,625
Total current assets 19,073 20,724
Deferred tax assets 2,477 1,803
Property, plant and equipment, net 5,281 5,168
Goodwill 10,579 10,508
Other intangible assets, net 1,727 1,882
Held for sale assets 1,251 1,200
Other assets 7,974 7,729
Total assets 48,362 49,014
Current liabilities:    
Trade accounts payable 1,430 3,796
Payroll and other benefits related liabilities 1,227 1,486
Unearned revenues 277 369
Short-term debt 499 1,945
Held for sale liabilities 648 581
Other current liabilities 3,785 3,689
Total current liabilities 7,866 11,866
Unearned revenues 104 144
Income taxes payable 1,084 1,472
Long-term debt 15,486 13,537
Held for sale liabilities 116 119
Other liabilities 4,008 3,863
Total liabilities 28,664 31,001
Commitments and contingencies (Note 6)
Stockholders’ equity:    
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding $ 0 $ 0
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 8 8
Preferred stock, shares outstanding 0 0
Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,114 and 1,121 shares issued and outstanding, respectively $ 0 $ 195
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 6,000 6,000
Common stock, shares, issued 1,114 1,121
Common stock, shares, outstanding 1,114 1,121
Retained earnings $ 19,280 $ 17,840
Accumulated other comprehensive income (loss) 418 (22)
Total stockholders’ equity 19,698 18,013
Total liabilities and stockholders’ equity $ 48,362 $ 49,014
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Revenues:        
Equipment and services $ 7,846 $ 9,417 $ 15,630 $ 18,098
Licensing 1,429 1,747 3,108 3,770
Total revenues 9,275 11,164 18,738 21,868
Costs and expenses:        
Cost of revenues 4,153 4,648 8,197 8,951
Research and development 2,210 2,034 4,461 3,963
Selling, general and administrative 614 624 1,238 1,232
Other 208 0 288 0
Total costs and expenses 7,185 7,306 14,184 14,146
Operating income 2,090 3,858 4,554 7,722
Interest expense (179) (137) (348) (275)
Investment and other (expense) income, net (16) (298) 60 (158)
Income from continuing operations before income taxes 1,895 3,423 4,266 7,289
Income tax expense (193) (489) (291) (956)
Income from continuing operations 1,702 2,934 3,975 6,333
Discontinued operations, net of income taxes 2 0 (36) 0
Net income $ 1,704 $ 2,934 $ 3,939 $ 6,333
Basic earnings per share, Continuing operations $ 1.53 $ 2.61 $ 3.55 $ 5.63
Basic loss per share, Discontinued operations 0 0 (0.03) 0
Basic earnings per share 1.53 2.61 3.52 5.63
Diluted earnings per share, Continuing operations 1.52 2.57 3.52 5.55
Diluted loss per share, Discontinued operations 0 0 (0.03) 0
Diluted earnings per share $ 1.52 $ 2.57 $ 3.49 $ 5.55
Shares used in per share calculations:        
Basic 1,116 1,125 1,119 1,124
Diluted 1,123 1,140 1,127 1,141
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 1,704 $ 2,934 $ 3,939 $ 6,333
Other comprehensive income, net of income taxes:        
Foreign currency translation gains (losses) 72 (41) 234 (83)
Net unrealized gains (losses) on available-for-sale debt securities 21 (61) 36 (80)
Net unrealized gains on derivative instruments 16 270 134 272
Other gains 6 0 6 0
Other reclassifications included in net income 10 (11) 30 (22)
Total other comprehensive income 125 157 440 87
Comprehensive income $ 1,829 $ 3,091 $ 4,379 $ 6,420
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Operating Activities:    
Net income from continuing operations $ 3,975 $ 6,333
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 868 834
Income tax provision less than income tax payments (631) (403)
Share-based compensation expense 1,262 994
Net (gains) losses on marketable securities and other investments (45) 213
Impairment losses on other investments 101 21
Other items, net 16 (56)
Changes in assets and liabilities:    
Accounts receivable, net 1,964 (501)
Inventories (396) (1,337)
Other assets 615 (1,812)
Trade accounts payable (2,358) 979
Payroll, benefits and other liabilities (672) (371)
Unearned revenues (86) (139)
Net cash used by operating activities from discontinued operations (61) 0
Net cash provided by operating activities 4,552 4,755
Investing Activities:    
Capital expenditures (851) (1,074)
Purchases of debt and equity marketable securities (22) (936)
Proceeds from sales and maturities of debt and equity marketable securities 491 1,563
Acquisitions and other investments, net of cash acquired (61) (288)
Proceeds from sales of property, plant and equipment 121 0
Proceeds from other investments 11 97
Other items, net (4) 0
Net cash used by investing activities from discontinued operations (42) 0
Net cash used by investing activities (357) (638)
Financing Activities:    
Proceeds from short-term debt 4,668 1,462
Repayment of short-term debt (4,668) (1,462)
Proceeds from long-term debt 1,880 0
Repayment of long-term debt 1,446 0
Proceeds from issuance of common stock 232 187
Repurchases and retirements of common stock (2,173) (2,129)
Dividends paid (1,676) (1,529)
Payments of tax withholdings related to vesting of share-based awards (332) (562)
Other items, net (43) (11)
Net cash used by financing activities (3,558) (4,044)
Effect of exchange rate changes on cash and cash equivalents 46 (16)
Net increase in total cash and cash equivalents 683 57
Total cash and cash equivalents at beginning of period (including $326 million classified as held for sale at September 25, 2022) 3,099 7,116
Total cash and cash equivalents at end of period (including $294 million classified as held for sale at March 26, 2023) 3,782 $ 7,173
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents, Beginning of Period 326  
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents, End of Period $ 294  
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Common stock and paid-in capital
Retained earnings
Accumulated other comprehensive income
Balance at beginning of period at Sep. 26, 2021 $ 9,950 $ 0 $ 9,822 $ 128
Common stock issued under employee benefit plans   187    
Repurchases and retirements of common stock   (662) (1,467)  
Share-based compensation   1,037    
Tax withholdings related to vesting of share-based payments   (562)    
Net income     6,333  
Dividends     (1,575)  
Other comprehensive income       87
Balance at end of period at Mar. 27, 2022 $ 13,328 0 13,113 215
Dividends per share announced $ 1.36      
Balance at beginning of period at Dec. 26, 2021 $ 11,333 0 11,275 58
Common stock issued under employee benefit plans   186    
Repurchases and retirements of common stock   (640) (311)  
Share-based compensation   516    
Tax withholdings related to vesting of share-based payments   (62)    
Net income     2,934  
Dividends     (785)  
Other comprehensive income       157
Balance at end of period at Mar. 27, 2022 $ 13,328 0 13,113 215
Dividends per share announced $ 0.68      
Balance at beginning of period at Sep. 25, 2022 $ 18,013 195 17,840 (22)
Common stock issued under employee benefit plans   232    
Repurchases and retirements of common stock   (1,418) (755)  
Share-based compensation   1,323    
Tax withholdings related to vesting of share-based payments   (332)    
Net income     3,939  
Dividends     (1,744)  
Other comprehensive income       440
Balance at end of period at Mar. 26, 2023 $ 19,698 0 19,280 418
Dividends per share announced $ 1.50      
Balance at beginning of period at Dec. 25, 2022 $ 18,810 0 18,517 293
Common stock issued under employee benefit plans   194    
Repurchases and retirements of common stock   (827) (76)  
Share-based compensation   656    
Tax withholdings related to vesting of share-based payments   (23)    
Net income     1,704  
Dividends     (865)  
Other comprehensive income       125
Balance at end of period at Mar. 26, 2023 $ 19,698 $ 0 $ 19,280 $ 418
Dividends per share announced $ 0.75      
v3.23.1
Basis of Presentation and Significant Accounting Policies Update
 6 Months Ended
Mar. 26, 2023
Basis of Presentation [Abstract]  
Basis of Presentation and Significant Accounting Policies Update Basis of Presentation and Significant Accounting Policies Update
Financial Statement Preparation. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all normal recurring adjustments necessary for a fair statement of the results for the interim periods. These condensed consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K for our fiscal year ended September 25, 2022. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. We operate and report using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three and six months ended March 26, 2023 and March 27, 2022 included 13 weeks and 26 weeks, respectively.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation.
v3.23.1
Composition of Certain Financial Statement Items
 6 Months Ended
Mar. 26, 2023
Condensed Financial Information Disclosure [Abstract]  
Composition of Certain Financial Statement Items Composition of Certain Financial Statement Items
Inventories (in millions)
March 26,
2023		September 25,
2022
Raw materials$219 $221 
Work-in-process4,248 3,329 
Finished goods2,391 2,791 
$6,858 $6,341 
Revenues. We disaggregate our revenues by segment (Note 7), by products and services (as presented on our condensed consolidated statement of operations), and for our QCT (Qualcomm CDMA Technologies) segment, by revenue stream, which is based on the industry and application in which our products are sold (as presented below). Beginning in the first quarter of fiscal 2023, QCT RFFE (radio frequency front-end) revenues, which were previously presented as a separate revenue stream, are now included within our Handset, Automotive and internet of things (IoT) revenue streams, as applicable, based on the industry and application in which the related RFFE products are sold. Prior period information has been recast to reflect this change. RFFE revenues include revenues from the sale of 4G, 5G sub 6 and 5G millimeter wave RFFE products (a substantial portion of which relate to mobile handsets) and exclude radio frequency transceiver components. This change aligns with changes made to our internal reporting of revenues. We believe this change provides a more meaningful presentation in understanding QCT revenues going forward, as we expect RFFE revenues to correspond with trends in Handsets, Automotive and IoT (as applicable) and is more consistent with how our revenue diversification is viewed externally. In certain cases, the determination of QCT revenues by industry and application requires the use of certain assumptions. Substantially all of QCT’s revenues consist of equipment revenues that are recognized at a point in time, and substantially all of QTL’s (Qualcomm Technology Licensing) revenues represent licensing revenues that are recognized over time and are principally from royalties generated through our licensees’ sales of mobile handsets.
QCT revenue streams were as follows (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Handsets (1)$6,105 $7,349 $11,860 $14,338 
Automotive (2)447 371 903 659 
IoT (3)1,390 1,828 3,071 3,398 
Total QCT revenues$7,942 $9,548 $15,834 $18,395 
(1) Includes revenues from products sold for use in mobile handsets.
(2) Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and advanced driver assistance systems (ADAS) and automated driving (AD).
(3) Primarily includes products sold for use in the following industries and applications: consumer (including computing, voice and music and extended reality (XR)), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, transportation and logistics and utilities).
Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods generally include certain QCT sales-based royalty revenues related to system software, certain amounts related to QCT customer incentives and QTL royalty revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due) and were as follows (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Revenues recognized from previously satisfied performance obligations$170 $185 $337 $367 
Unearned revenues (which are considered contract liabilities) consist primarily of certain customer contracts for which QCT received fees upfront and QTL license fees for intellectual property with continuing performance obligations. In the six months ended March 26, 2023 and March 27, 2022, we recognized revenues of $241 million and $340 million, respectively, that were recorded as unearned revenues at September 25, 2022 and September 26, 2021, respectively.
Remaining performance obligations, which are primarily included in unearned revenues (as presented on our condensed consolidated balance sheet), represent the aggregate amount of the transaction price of certain customer contracts yet to be recognized as revenues as of the end of the reporting period and exclude revenues related to (a) contracts that have an original expected duration of one year or less and (b) sales-based royalties (i.e., future royalty revenues) pursuant to our license agreements.
Concentrations. A significant portion of our revenues are concentrated with a small number of customers/licensees of our QCT and QTL segments. The comparability of customer/licensee concentrations for the interim periods presented are impacted by the timing of customer/licensee device launches and/or innovation cycles and other seasonal trends, among other fluctuations in demand. Revenues from each customer/licensee that were 10% or greater of total revenues were as follows:
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Customer/licensee (x)27 %19 %31 %22 %
Customer/licensee (y)25 19 19 19 
Customer/licensee (z)*10 **
*Less than 10%
Other Expenses. Other expenses in the three and six months ended March 26, 2023 consisted of $208 million and $288 million, respectively, in restructuring and restructuring-related charges, substantially all of which related to severance costs, resulting from certain cost reduction initiatives committed to in fiscal 2023. We expect these actions to be substantially completed (including payments of the related severance) by the end of fiscal 2023. We may incur additional restructuring and restructuring-related charges, as the actual amount of costs may differ from our current expectations and estimates, and as we further evaluate our operating expenses.
Investment and Other (Expense) Income, Net (in millions)
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Interest and dividend income$59 $20 $114 $37 
Net gains (losses) on marketable securities9 (240)20 (223)
Net (losses) gains on other investments— (21)— 73 
Net gains (losses) on deferred compensation plan assets21 (43)47 (30)
Impairment losses on other investments(87)(20)(101)(21)
Other(18)6 (20)6 
$(16)$(298)$60 $(158)
v3.23.1
Income Taxes
 6 Months Ended
Mar. 26, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We estimate our annual effective income tax rate to be 8% for fiscal 2023, which is lower than the U.S. federal statutory rate, primarily due to (i) a significant portion of our income qualifying for preferential treatment as foreign-derived intangible income (FDII) at a 13% effective tax rate, which includes certain benefits discussed below from the new requirement to capitalize research and development expenditures for federal income tax purposes, (ii) benefits from our federal research and development tax credit and (iii) benefits related to foreign currency gains on a noncurrent receivable related to our refund claim of Korean withholding tax. Our effective tax rate of 10% for the second quarter of fiscal 2023 was higher than our estimated annual effective tax rate of 8% primarily due to foreign currency gains realized in the first quarter of fiscal 2023 on a noncurrent receivable related to our refund claim of Korean withholding tax.
Beginning in fiscal 2023, for federal income tax purposes, we are required to capitalize and amortize domestic research and development expenditures over five years and foreign research and development expenditures over fifteen years (such expenditures were previously deducted as incurred). Our cash flows from operations will be adversely affected due to significantly higher cash tax payments. However, since the resulting deferred tax asset is established at the statutory rate of 21% (rather than the effective tax rate of 13% to 16% after considering the FDII deduction), capitalization favorably affects our provision for income taxes and results of operations. The adverse cash flow impact and favorable tax provision impact will diminish in future years as capitalized research and development expenditures continue to amortize.
Income taxes payable (recorded in other current liabilities) were $1.3 billion and $634 million at March 26, 2023 and September 25, 2022, respectively. This increase was primarily due to the recent announcement (IR-2023-33) by the Internal Revenue Service (IRS), which postponed our remaining current year U.S. federal income tax-payment deadlines until October 2023.
v3.23.1
Capital Stock
 3 Months Ended
Mar. 26, 2023
Stockholders' Equity Attributable to Parent [Abstract]  
Capital Stock Capital Stock
Stock Repurchase Program. On October 12, 2021, we announced a $10.0 billion stock repurchase program. The stock repurchase program has no expiration date. At March 26, 2023, $5.9 billion remained authorized for repurchase under our stock repurchase program.
Shares Outstanding. Shares of common stock outstanding at March 26, 2023 were as follows (in millions):
Balance at September 25, 2022
1,121 
Issued11 
Repurchased(18)
Balance at March 26, 2023
1,114 
Dividends. On March 8, 2023, we announced a 7% increase in our quarterly dividend per share of common stock from $0.75 to $0.80, which is effective for dividends payable after March 23, 2023. On April 12, 2023, we announced a cash dividend of $0.80 per share on our common stock, payable on June 22, 2023 to stockholders of record as of the close of business on June 1, 2023.
Earnings Per Common Share. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed by dividing net income by the combination of the weighted-average number of common shares outstanding and the weighted-average number of dilutive common share equivalents, comprised of shares issuable under our share-based compensation plans, during the reporting period. The following table provides information about the diluted earnings per share calculation (in millions):
 Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Dilutive common share equivalents included in diluted shares7 16 8 17 
Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period5 — 5 — 
v3.23.1
Debt
 6 Months Ended
Mar. 26, 2023
Debt Disclosure [Abstract]  
Debt Disclosure Debt
Long-term Debt. In November 2022, we issued unsecured fixed-rate notes, consisting of $700 million of fixed-rate 5.40% notes and $1.2 billion of fixed-rate 6.00% notes (collectively, November 2022 Notes) that mature on May 20, 2033 and May 20, 2053, respectively. The net proceeds from the November 2022 Notes were used to repay $946 million of fixed-rate notes and $500 million of floating-rate notes that matured in January 2023 and the excess will be used for general corporate purposes.
At March 26, 2023, the aggregate fair value of our outstanding floating- and fixed-rate notes, based on Level 2 inputs, was approximately $15.1 billion.
Interest Rate Swaps. At September 25, 2022, we had outstanding forward-starting interest rate swaps with an aggregate notional amount, denominated in U.S. dollars, of $1.6 billion. During the first quarter of fiscal 2023, in connection with the issuance of the November 2022 Notes, we terminated these swaps, and the related gains of $334 million, included within accumulated comprehensive income, are being recorded as a reduction to interest expense over the hedged portions of the related debt.
Commercial Paper Program. We have an unsecured commercial paper program, which provides for the issuance of up to $4.5 billion of commercial paper. At March 26, 2023 and September 25, 2022, we had $499 million of outstanding commercial paper recorded as short-term debt.
v3.23.1
Commitments and Contingencies
 6 Months Ended
Mar. 26, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal and Regulatory Proceedings.
Consolidated Securities Class Action Lawsuit: On January 23, 2017 and January 26, 2017, securities class action complaints were filed by purported stockholders of us in the United States District Court for the Southern District of California against us and certain of our then current and former officers and directors. The complaints alleged, among other things, that we violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, by making false and misleading statements and omissions of material fact in connection with certain allegations that we are or were engaged in anticompetitive conduct. The complaints sought unspecified damages, interest, fees and costs. On May 4, 2017, the court consolidated the two actions, and on July 3, 2017, the plaintiffs filed a consolidated amended complaint asserting the same basic theories of liability and requesting the same basic relief. On May 23, 2022, the plaintiffs filed a motion for class certification, and a hearing on the motion was held on October 19, 2022. On March 20, 2023, the court issued an order granting in part and denying in part the plaintiffs’ motion for class certification. The order denied class certification on the basis of alleged misrepresentations relating to our chip-level licensing practices, but certified a class on the basis of alleged misrepresentations relating to the separate operations of QCT and QTL. No trial date has been set.
On April 3, 2023, we filed a petition with the United States Court of Appeals for the Ninth Circuit (Ninth Circuit) seeking permission to appeal the district court’s class certification order. We believe the plaintiffs’ claims are without merit.
Consumer Class Action Lawsuits: Beginning in January 2017, a number of consumer class action complaints were filed against us in the United States District Courts for the Southern and Northern Districts of California, each on behalf of a putative class of purchasers of cellular phones and other cellular devices. In April 2017, the Judicial Panel on Multidistrict Litigation transferred the cases that had been filed in the Southern District of California to the Northern District of California. On July 11, 2017, the plaintiffs filed a consolidated amended complaint alleging that we violated California and federal antitrust and unfair competition laws by, among other things, refusing to license standard-essential patents to our competitors, conditioning the supply of certain of our baseband chipsets on the purchaser first agreeing to license our entire patent portfolio, entering into exclusive deals with companies, including Apple Inc., and charging unreasonably high royalties that do not comply with our commitments to standard setting organizations. The complaint sought unspecified damages and disgorgement and/or restitution, as well as an order that we be enjoined from further unlawful conduct. On July 5, 2018, the plaintiffs filed a motion for class certification, and on September 27, 2018, the court granted that motion. We appealed the district court’s class certification order to the Ninth Circuit. On September 29, 2021, the Ninth Circuit vacated the class certification order, ruling that the district court had failed to correctly assess the propriety of applying California law to a nationwide class, and remanded the case to the district court. On June 10, 2022, the plaintiffs filed an amended complaint, limiting the proposed class to California residents rather than a nationwide class. On August 1, 2022, we filed a motion to dismiss the amended complaint, and on November 15, 2022, the court held a hearing on our motion. On January 6, 2023, the court issued an order granting in part and denying in part our motion to dismiss. The order preserved the plaintiffs’ claims related to exclusive dealing under California antitrust and unfair competition laws and dismissed the remainder of the plaintiffs’ claims, which were related to our licensing practices. On April 7, 2023, we filed a motion for summary judgment on the plaintiffs’ remaining claims. A hearing on our motion is scheduled for July 20, 2023. We believe the plaintiffs’ claims are without merit.
Since November 2017, several other consumer class action complaints have been filed against us in Canada (in the Supreme Court of British Columbia and the Quebec Superior Court), Israel (in the Haifa District Court) and the United Kingdom (in the Competition Appeal Tribunal), each on behalf of a putative class of purchasers of cellular phones and other cellular devices, alleging violations of certain of those countries’ competition and consumer protection laws. The claims in these complaints are similar to those in the U.S. consumer class action complaints. The complaints seek damages. We believe the plaintiffs’ claims are without merit.
ParkerVision, Inc. v. QUALCOMM Incorporated: On May 1, 2014, ParkerVision filed a complaint against us in the United States District Court for the Middle District of Florida alleging that certain of our products infringed seven ParkerVision patents. On August 21, 2014, ParkerVision amended the complaint, alleging that we infringed 11 ParkerVision patents and sought damages and injunctive and other relief. ParkerVision subsequently reduced the number of patents asserted to three. The asserted patents are now expired, and injunctive relief is no longer available. ParkerVision continues to seek damages related to the sale of many of our radio frequency (RF) products sold between 2008 and 2018. On March 23, 2022, the court entered judgment in our favor on all claims and closed the case. On April 20, 2022, ParkerVision filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. We believe that ParkerVision’s claims are without merit.
Arm Ltd. v. QUALCOMM Incorporated: On August 31, 2022, Arm Ltd. (ARM) filed a complaint against us in the United States District Court for the District of Delaware. Our subsidiaries Qualcomm Technologies, Inc. and NuVia, Inc. (Nuvia) are also named in the complaint. The complaint alleges that following our acquisition of Nuvia, we and Nuvia breached Nuvia’s Architecture License Agreement with ARM (the Nuvia ALA) by failing to comply with the termination obligations under the Nuvia ALA. The complaint seeks specific performance, including that we cease all use of and destroy any technology that was developed under the Nuvia ALA, including processor core technology. ARM also contends that we violated the Lanham Act through trademark infringement and false designation of origin through unauthorized use of ARM’s trademarks and seeks associated injunctive and declaratory relief. ARM further seeks exemplary or punitive damages, costs, expenses and reasonable attorney’s fees, and equitable relief addressing any infringement occurring after entry of judgment. We believe ARM’s claims are without merit.
On September 30, 2022, we filed our Answer and Counterclaim in response to ARM’s complaint denying ARM’s claims. Our counterclaim seeks a declaratory judgment that we did not breach the Nuvia ALA or the Technology License Agreement between Nuvia and ARM and that, following the acquisition of Nuvia, our architected cores (including all further developments, iterations or instantiations of the technology we acquired from Nuvia), server System-on-Chip (SoC) and
compute SoC are fully licensed under our existing Architecture License Agreement and Technology License Agreement with ARM (the ARM-Qualcomm Agreements). We further seek an order enjoining ARM from making any claim that our products are not licensed under the ARM-Qualcomm Agreements, are not ARM-compliant or that we are prohibited from using ARM’s marks in the marketing of any such products. On October 26, 2022, we filed an Amended Counterclaim seeking additional declaratory relief that certain statements ARM is making in the marketplace concerning our rights under the ARM-Qualcomm Agreements are false, and that ARM has no right to prevent us from shipping our products, which are validly licensed. Trial is scheduled to begin on September 23, 2024.
Korea Fair Trade Commission (KFTC) Investigation (2015): On March 17, 2015, the KFTC notified us that it was conducting an investigation of us relating to the Korean Monopoly Regulation and Fair Trade Act (MRFTA). On December 27, 2016, the KFTC announced that it had reached a decision in the investigation, finding that we violated provisions of the MRFTA. On January 22, 2017, we received the KFTC’s formal written decision, which found that the following conducts violate the MRFTA: (i) refusing to license, or imposing restrictions on licenses for, cellular communications standard-essential patents with competing modem chipset makers; (ii) conditioning the supply of modem chipsets to handset suppliers on their execution and performance of license agreements with us; and (iii) coercing agreement terms including portfolio license terms, royalty terms and free cross-grant terms in executing patent license agreements with handset makers. The KFTC’s decision orders us to: (a) upon request by modem chipset companies, engage in good-faith negotiations for patent license agreements, without offering unjustifiable conditions, and if necessary submit to a determination of terms by an independent third party; (b) not demand that handset companies execute and perform under patent license agreements as a precondition for purchasing modem chipsets; (c) not demand unjustifiable conditions in our license agreements with handset companies and, upon request, renegotiate existing patent license agreements; and (d) notify modem chipset companies and handset companies of the decision and order imposed on us and report to the KFTC new or amended agreements. According to the KFTC’s decision, the foregoing will apply to transactions between us and the following enterprises: (1) handset manufacturers headquartered in Korea and their affiliate companies; (2) enterprises that sell handsets in or to Korea and their affiliate companies; (3) enterprises that supply handsets to companies referred to in (2) above and the affiliate companies of such enterprises; (4) modem chipset manufacturers headquartered in Korea and their affiliate companies; and (5) enterprises that supply modem chipsets to companies referred to in (1), (2) or (3) above and the affiliate companies of such enterprises. The KFTC’s decision also imposed a fine of 1.03 trillion Korean won (approximately $927 million), which we paid on March 30, 2017.
On February 21, 2017, we filed an action in the Seoul High Court to cancel the KFTC’s decision. The Seoul High Court held hearings concluding on August 14, 2019, and on December 4, 2019, announced its judgment affirming certain portions of the KFTC’s decision and finding other portions of the KFTC’s decision unlawful. The Seoul High Court cancelled the KFTC’s remedial orders described in (c) above, and solely insofar as they correspond thereto, the Seoul High Court cancelled the KFTC’s remedial orders described in (d) above. The Seoul High Court dismissed the remainder of our action to cancel the KFTC’s decision. On December 19, 2019, we filed a notice of appeal to the Korea Supreme Court challenging those portions of the Seoul High Court decision that are not in our favor. The KFTC filed a notice of appeal to the Korea Supreme Court challenging the portions of the Seoul High Court decision that are not in its favor. On April 12, 2023, the Korea Supreme Court delivered its judgment, which dismissed all appeals by both Qualcomm and the KFTC, affirming the judgment of the Seoul High Court. The Korea Supreme Court judgment concludes the appeal process.
Korea Fair Trade Commission (KFTC) Investigation (2020): On June 8, 2020, the KFTC informed us that it was conducting an investigation of us relating to the MRFTA. The KFTC did not provide a formal notice on the scope of its investigation, but we believe it concerned our business practices in connection with our sale of RFFE components. On April 18, 2023, the KFTC informed us that it had closed its investigation without finding any violation.
Icera Complaint to the European Commission (EC): On June 7, 2010, the EC notified and provided us with a redacted copy of a complaint filed with the EC by Icera, Inc. (subsequently acquired by Nvidia Corporation) alleging that we were engaged in anticompetitive activity. On July 16, 2015, the EC announced that it had initiated formal proceedings in this matter. On July 18, 2019, the EC issued a decision finding that between 2009 and 2011, we engaged in predatory pricing by selling certain baseband chipsets to two customers at prices below cost with the intention of hindering competition and imposed a fine of approximately 242 million euros. On October 1, 2019, we filed an appeal of the EC’s decision with the General Court of the European Union. From March 13, 2023 to March 15, 2023, the court held a hearing on our appeal. The court has not yet issued a ruling. We believe that our business practices do not violate the European Union (EU) competition rules.
In the third quarter of fiscal 2019, we recorded a charge of $275 million to other expenses related to the EC fine. We provided a financial guarantee in the first quarter of fiscal 2020 to satisfy the obligation in lieu of cash payment while we appeal the EC’s decision. The fine is accruing interest at a rate of 1.50% per annum while it is outstanding and included in other current liabilities.
Contingent Losses and Other Considerations: We will continue to vigorously defend ourselves in the pending matters described above. However, litigation and investigations are inherently uncertain, and we face difficulties in evaluating or estimating likely outcomes or ranges of possible loss, particularly in antitrust and trade regulation investigations. Other than with respect to the EC fine related to the Icera Complaint to the European Commission, we have not recorded any accrual at March 26, 2023 for contingent losses associated with these matters based on our belief that losses, while reasonably possible, are not probable. Further, any possible amount or range of loss cannot be reasonably estimated at this time. The unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows. We are engaged in numerous other legal actions not described above arising in the ordinary course of our business (for example, proceedings relating to employment matters or the initiation or defense of proceedings relating to intellectual property rights) and, while there can be no assurance, we believe that the ultimate outcome of these other legal actions will not have a material adverse effect on our business, results of operations, financial condition or cash flows.
v3.23.1
Segment Information
 6 Months Ended
Mar. 26, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
We are organized on the basis of products and services and have three reportable segments. We conduct business primarily through our QCT semiconductor business and our QTL licensing business. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including RFFE, for use in mobile devices; automotive systems for connectivity, digital cockpit and ADAS/AD; and IoT including consumer electronic devices; industrial devices; and edge networking products. QTL grants licenses or otherwise provides rights to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments. We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our cloud AI inference processing initiative.
The table below presents revenues and EBT for reportable segments (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Revenues
QCT$7,942 $9,548 $15,834 $18,395 
QTL1,290 1,580 2,814 3,398 
QSI7 6 13 14 
Reconciling items36 30 77 61 
Total$9,275 $11,164 $18,738 $21,868 
EBT
QCT$2,107 $3,340 $4,291 $6,455 
QTL871 1,154 1,988 2,560 
QSI(53)(269)(61)(147)
Reconciling items(1,030)(802)(1,952)(1,579)
Total$1,895 $3,423 $4,266 $7,289 
Reconciling items for revenues and EBT in the previous table were as follows (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Revenues
Nonreportable segments$36 $30 $77 $61 
EBT
Unallocated cost of revenues$(47)$(53)$(112)$(106)
Unallocated research and development expenses(494)(433)(1,018)(886)
Unallocated selling, general and administrative expenses(126)(138)(292)(292)
Unallocated other expenses (Note 2)(208)— (288)— 
Unallocated interest expense(178)(137)(348)(275)
Unallocated investment and other income (expense), net36 (34)123 (11)
Nonreportable segments(13)(7)(17)(9)
$(1,030)$(802)$(1,952)$(1,579)
v3.23.1
Acquisitions
 6 Months Ended
Mar. 26, 2023
Business Combinations [Abstract]  
Acquisitions Acquisitions
Veoneer. On October 4, 2021, we and SSW Partners, a New York-based investment partnership, entered into a definitive agreement to acquire Veoneer, Inc. (Veoneer). The transaction closed on April 1, 2022 (the Closing Date). Total cash consideration paid in the transaction was $4.7 billion, consisting of (i) $4.6 billion paid in respect of Veoneer’s outstanding capital stock and equity awards and amounts paid to settle Veoneer’s convertible senior notes (which were converted at the election of the note holders and settled in cash in the third quarter of fiscal 2022) and (ii) a $110 million termination fee paid to Magna International Inc. (Magna) in the first quarter of fiscal 2022. We funded substantially all of the cash consideration payable in the transaction in exchange for (i) the Arriver business (which SSW transferred to us shortly after the Closing Date) and (ii) the right to receive a majority of the proceeds upon the sale of the Non-Arriver businesses by SSW Partners. We intend to incorporate Arriver’s computer vision, drive policy and driver assistance technologies into our Snapdragon automotive platform to deliver an integrated software SoC ADAS platform for automakers and Tier-1 automotive suppliers. SSW Partners retained Veoneer’s Tier-1 automotive supplier businesses, primarily consisting of the Active Safety and the Restraint Control Systems businesses (the Non-Arriver businesses), which it intends to sell in multiple transactions.
At March 26, 2023, we had agreed to provide certain funding of approximately $300 million to the Non-Arriver businesses while SSW Partners sells these businesses, of which approximately $50 million of funding remained available to the Non-Arriver businesses. Such amounts, along with cash retained in the Non-Arriver businesses, are expected to be used to fund working and other near-term capital needs, as well as certain costs incurred in connection with the close of the acquisition.
Although we do not own or operate the Non-Arriver businesses, we are the primary beneficiary, within the meaning of the Financial Accounting Standards Board (FASB) accounting guidance related to consolidation (ASC 810), of these businesses under the variable interest model. Factors considered in reaching this conclusion included, among others: (i) our involvement in the design of and our funding of substantially all of the total cash consideration payable in the transaction and (ii) our obligations to absorb losses and rights to receive returns from the Non-Arriver businesses.
In December 2022, Magna entered into a definitive agreement to acquire the Active Safety business from SSW Partners for approximately $1.5 billion in cash, subject to working capital and other purchase price adjustments. The sale is subject to certain regulatory approvals and other customary closing conditions. We expect that SSW Partners will complete the sale of both Non-Arriver businesses within fiscal 2023, subject to any required regulatory approvals and other closing conditions being met. Accordingly, the assets and liabilities of the Non-Arriver businesses (the majority of which relate to the Active Safety business) are consolidated and presented as held for sale on our condensed consolidated balance sheet, and the operating results are presented as discontinued operations.
Our accounting purchase price was approximately $4.3 billion, substantially all of which relates to our share of cash consideration at close for the outstanding common shares of Veoneer and the Magna termination fee and excludes Veoneer’s convertible senior notes that are reflected as an assumed liability.
The allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
Cash$30 
Current held for sale assets, net of costs to sell (1)626 
Completed technology-based intangible assets349 
In-process research and development (IPR&D)298 
Goodwill2,793 
Noncurrent held for sale assets (1)1,186 
Other assets326 
Total assets5,608 
Current held for sale liabilities (1)(677)
Convertible senior notes(352)
Noncurrent held for sale liabilities (1)(128)
Other liabilities(200)
Total liabilities(1,357)
Net assets acquired$4,251 
(1) Held for sale assets and liabilities relate to the Non-Arriver businesses and were measured at fair value less costs to sell (including SSW Partners’ estimated return with respect to the sale proceeds of the Non-Arriver businesses), which was estimated using a market approach based on significant inputs that were not observable. The Non-Arriver businesses’ assets are not available to be used to settle our obligations, and the Non-Arriver businesses’ creditors do not have recourse to us. SSW Partners owns and operates the Non-Arriver businesses, and its funding of the purchase price for Veoneer was recorded as a component of held for sale liabilities. The underlying classes of assets and liabilities held for sale have not been presented because such amounts are not material.
Goodwill related to this transaction was allocated to our QCT segment, $471 million of which is expected to be deductible for tax purposes. Goodwill is primarily attributable to assembled workforce and certain synergies expected to arise after the acquisition. Completed technology-based intangible assets will be amortized on a straight-line basis over the weighted-average useful life of nine years. IPR&D relates to a single project that is expected to be completed in fiscal 2025. Upon completion, we expect the IPR&D to be amortized over its useful life of seven years. We valued the completed technology and IPR&D using an income approach based on significant unobservable inputs.
The Non-Arriver businesses are presented as discontinued operations on a one quarter reporting lag. Pro forma results of operations have not been presented because the effects of this acquisition were not material to our consolidated results of operations. The cash flows used by the Non-Arriver businesses are reflected as discontinued operations and are classified as operating, investing and financing activities in the consolidated statements of cash flows.
v3.23.1
Fair Value Measurements
 6 Months Ended
Mar. 26, 2023
Fair Value Measurements [Abstract]  
Fair Value Measurements Fair Value Measurements and Marketable Securities
The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 26, 2023 (in millions):
Level 1Level 2Level 3Total
Assets    
Cash equivalents$1,779 $367 $— $2,146 
Marketable securities:    
Corporate bonds and notes— 2,943 — 2,943 
Equity securities145 — — 145 
Mortgage- and asset-backed securities— 84 — 84 
U.S. Treasury securities and government-related securities— 16 — 16 
Total marketable securities145 3,043 — 3,188 
Derivative instruments— 37 — 37 
Other investments731 — 20 751 
Total assets measured at fair value$2,655 $3,447 $20 $6,122 
Liabilities    
Derivative instruments$— $210 $— $210 
Other liabilities730 — — 730 
Total liabilities measured at fair value$730 $210 $— $940 
At March 26, 2023 and September 25, 2022, our marketable securities were all classified as current and were primarily comprised of available-for-sale debt securities (substantially all of which were corporate bonds and notes).
The contractual maturities of available-for-sale debt securities were as follows (in millions):
March 26,
2023
Years to Maturity
Less than one year$1,463 
One to five years1,496 
No single maturity date84 
Total$3,043 
Debt securities with no single maturity date included mortgage- and asset-backed securities.
v3.23.1
Basis of Presentation and Significant Accounting Policies Update (Policies)
 6 Months Ended
Mar. 26, 2023
Basis of Presentation [Abstract]  
Fiscal Period, Policy We operate and report using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three and six months ended March 26, 2023 and March 27, 2022 included 13 weeks and 26 weeks, respectively.
Use of Estimates, Policy The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.
Revenue Recognition, Policy We disaggregate our revenues by segment (Note 7), by products and services (as presented on our condensed consolidated statement of operations), and for our QCT (Qualcomm CDMA Technologies) segment, by revenue stream, which is based on the industry and application in which our products are sold (as presented below). Beginning in the first quarter of fiscal 2023, QCT RFFE (radio frequency front-end) revenues, which were previously presented as a separate revenue stream, are now included within our Handset, Automotive and internet of things (IoT) revenue streams, as applicable, based on the industry and application in which the related RFFE products are sold. Prior period information has been recast to reflect this change. RFFE revenues include revenues from the sale of 4G, 5G sub 6 and 5G millimeter wave RFFE products (a substantial portion of which relate to mobile handsets) and exclude radio frequency transceiver components. This change aligns with changes made to our internal reporting of revenues. We believe this change provides a more meaningful presentation in understanding QCT revenues going forward, as we expect RFFE revenues to correspond with trends in Handsets, Automotive and IoT (as applicable) and is more consistent with how our revenue diversification is viewed externally. In certain cases, the determination of QCT revenues by industry and application requires the use of certain assumptions. Substantially all of QCT’s revenues consist of equipment revenues that are recognized at a point in time, and substantially all of QTL’s (Qualcomm Technology Licensing) revenues represent licensing revenues that are recognized over time and are principally from royalties generated through our licensees’ sales of mobile handsets.
Earnings Per Common Share, Policy Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed by dividing net income by the combination of the weighted-average number of common shares outstanding and the weighted-average number of dilutive common share equivalents, comprised of shares issuable under our share-based compensation plans, during the reporting period.
Segment Reporting Policy We are organized on the basis of products and services and have three reportable segments.
v3.23.1
Composition of Certain Financial Statement Items (Tables)
 6 Months Ended
Mar. 26, 2023
Condensed Financial Information Disclosure [Abstract]  
Inventories
Inventories (in millions)
March 26,
2023		September 25,
2022
Raw materials$219 $221 
Work-in-process4,248 3,329 
Finished goods2,391 2,791 
$6,858 $6,341 
QCT Revenues Disaggregated
QCT revenue streams were as follows (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Handsets (1)$6,105 $7,349 $11,860 $14,338 
Automotive (2)447 371 903 659 
IoT (3)1,390 1,828 3,071 3,398 
Total QCT revenues$7,942 $9,548 $15,834 $18,395 
(1) Includes revenues from products sold for use in mobile handsets.
(2) Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and advanced driver assistance systems (ADAS) and automated driving (AD).
(3) Primarily includes products sold for use in the following industries and applications: consumer (including computing, voice and music and extended reality (XR)), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, transportation and logistics and utilities).
Revenue recognized from performance obligations satisfied in previous periods
Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods generally include certain QCT sales-based royalty revenues related to system software, certain amounts related to QCT customer incentives and QTL royalty revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due) and were as follows (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Revenues recognized from previously satisfied performance obligations$170 $185 $337 $367 
Customer Concentrations - Revenues Revenues from each customer/licensee that were 10% or greater of total revenues were as follows:
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Customer/licensee (x)27 %19 %31 %22 %
Customer/licensee (y)25 19 19 19 
Customer/licensee (z)*10 **
*Less than 10%
Investment and Other Income, Net
Investment and Other (Expense) Income, Net (in millions)
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Interest and dividend income$59 $20 $114 $37 
Net gains (losses) on marketable securities9 (240)20 (223)
Net (losses) gains on other investments— (21)— 73 
Net gains (losses) on deferred compensation plan assets21 (43)47 (30)
Impairment losses on other investments(87)(20)(101)(21)
Other(18)6 (20)6 
$(16)$(298)$60 $(158)
v3.23.1
Capital Stock Earnings per Common Share (Tables)
 6 Months Ended
Mar. 26, 2023
Earnings Per Share [Abstract]  
Schedule of Capital Units
Shares Outstanding. Shares of common stock outstanding at March 26, 2023 were as follows (in millions):
Balance at September 25, 2022
1,121 
Issued11 
Repurchased(18)
Balance at March 26, 2023
1,114 
Schedule of Earnings Per Share, Basic and Diluted The following table provides information about the diluted earnings per share calculation (in millions):
 Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Dilutive common share equivalents included in diluted shares7 16 8 17 
Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period5 — 5 — 
v3.23.1
Segment Information (Tables)
 6 Months Ended
Mar. 26, 2023
Segment Reporting [Abstract]  
Revenues and EBT for reportable segments
The table below presents revenues and EBT for reportable segments (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Revenues
QCT$7,942 $9,548 $15,834 $18,395 
QTL1,290 1,580 2,814 3,398 
QSI7 6 13 14 
Reconciling items36 30 77 61 
Total$9,275 $11,164 $18,738 $21,868 
EBT
QCT$2,107 $3,340 $4,291 $6,455 
QTL871 1,154 1,988 2,560 
QSI(53)(269)(61)(147)
Reconciling items(1,030)(802)(1,952)(1,579)
Total$1,895 $3,423 $4,266 $7,289 
Reconciling items for reportable segments - revenues Reconciling items for revenues and EBT in the previous table were as follows (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Revenues
Nonreportable segments$36 $30 $77 $61 
EBT
Unallocated cost of revenues$(47)$(53)$(112)$(106)
Unallocated research and development expenses(494)(433)(1,018)(886)
Unallocated selling, general and administrative expenses(126)(138)(292)(292)
Unallocated other expenses (Note 2)(208)— (288)— 
Unallocated interest expense(178)(137)(348)(275)
Unallocated investment and other income (expense), net36 (34)123 (11)
Nonreportable segments(13)(7)(17)(9)
$(1,030)$(802)$(1,952)$(1,579)
Reconciling items for reportable segments - EBT Reconciling items for revenues and EBT in the previous table were as follows (in millions):
Three Months EndedSix Months Ended
March 26,
2023		March 27,
2022		March 26,
2023		March 27,
2022
Revenues
Nonreportable segments$36 $30 $77 $61 
EBT
Unallocated cost of revenues$(47)$(53)$(112)$(106)
Unallocated research and development expenses(494)(433)(1,018)(886)
Unallocated selling, general and administrative expenses(126)(138)(292)(292)
Unallocated other expenses (Note 2)(208)— (288)— 
Unallocated interest expense(178)(137)(348)(275)
Unallocated investment and other income (expense), net36 (34)123 (11)
Nonreportable segments(13)(7)(17)(9)
$(1,030)$(802)$(1,952)$(1,579)
v3.23.1
Business Combinations and Asset Acquisitions (Tables)
 6 Months Ended
Mar. 26, 2023
Business Combinations [Abstract]  
Allocation of purchase price
The allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
Cash$30 
Current held for sale assets, net of costs to sell (1)626 
Completed technology-based intangible assets349 
In-process research and development (IPR&D)298 
Goodwill2,793 
Noncurrent held for sale assets (1)1,186 
Other assets326 
Total assets5,608 
Current held for sale liabilities (1)(677)
Convertible senior notes(352)
Noncurrent held for sale liabilities (1)(128)
Other liabilities(200)
Total liabilities(1,357)
Net assets acquired$4,251 
(1) Held for sale assets and liabilities relate to the Non-Arriver businesses and were measured at fair value less costs to sell (including SSW Partners’ estimated return with respect to the sale proceeds of the Non-Arriver businesses), which was estimated using a market approach based on significant inputs that were not observable. The Non-Arriver businesses’ assets are not available to be used to settle our obligations, and the Non-Arriver businesses’ creditors do not have recourse to us. SSW Partners owns and operates the Non-Arriver businesses, and its funding of the purchase price for Veoneer was recorded as a component of held for sale liabilities. The underlying classes of assets and liabilities held for sale have not been presented because such amounts are not material.
v3.23.1
Fair Value Measurements (Tables)
 6 Months Ended
Mar. 26, 2023
Fair Value Measurements [Abstract]  
Fair value hierarchy for assets and liabilities measured at fair value on a recurring basis
The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 26, 2023 (in millions):
Level 1Level 2Level 3Total
Assets    
Cash equivalents$1,779 $367 $— $2,146 
Marketable securities:    
Corporate bonds and notes— 2,943 — 2,943 
Equity securities145 — — 145 
Mortgage- and asset-backed securities— 84 — 84 
U.S. Treasury securities and government-related securities— 16 — 16 
Total marketable securities145 3,043 — 3,188 
Derivative instruments— 37 — 37 
Other investments731 — 20 751 
Total assets measured at fair value$2,655 $3,447 $20 $6,122 
Liabilities    
Derivative instruments$— $210 $— $210 
Other liabilities730 — — 730 
Total liabilities measured at fair value$730 $210 $— $940 
Investments Classified by Contractual Maturity Date
The contractual maturities of available-for-sale debt securities were as follows (in millions):
March 26,
2023
Years to Maturity
Less than one year$1,463 
One to five years1,496 
No single maturity date84 
Total$3,043 
v3.23.1
Composition of Certain Financial Statement Items Inventories (Details) - USD ($)
$ in Millions
Mar. 26, 2023
Sep. 25, 2022
Inventory, Net [Abstract]    
Raw materials $ 219 $ 221
Work-in-process 4,248 3,329
Finished goods 2,391 2,791
Inventories $ 6,858 $ 6,341
v3.23.1
Composition of Certain Financial Statement Items Revenues (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Revenue        
Revenues $ 9,275 $ 11,164 $ 18,738 $ 21,868
Contract with Customer, Performance Obligation Satisfied in Previous Period 170 185 337 367
Contract with Customer, Liability, Revenue Recognized     241 340
QCT        
Revenue        
Revenues 7,942 9,548 15,834 18,395
Handsets | QCT        
Revenue        
Revenues [1] 6,105 7,349 11,860 14,338
Automotive | QCT        
Revenue        
Revenues [2] 447 371 903 659
IoT | QCT        
Revenue        
Revenues [3] $ 1,390 $ 1,828 $ 3,071 $ 3,398
[1] Includes revenues from products sold for use in mobile handsets.
[2] Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and advanced driver assistance systems (ADAS) and automated driving (AD).
[3] Primarily includes products sold for use in the following industries and applications: consumer (including computing, voice and music and extended reality (XR)), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, transportation and logistics and utilities).
v3.23.1
Composition of Certain Financial Statement Items Concentrations (Details) - Sales - Customer Concentration Risk
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Customer/licensee (x)        
Concentration Risk        
Concentration Risk, Percentage 27.00% 19.00% 31.00% 22.00%
Customer/licensee (y)        
Concentration Risk        
Concentration Risk, Percentage 25.00% 19.00% 19.00% 19.00%
Customer/licensee (z)        
Concentration Risk        
Concentration Risk, Percentage   10.00%    
v3.23.1
Composition of Certain Financial Statement Items Other Income, Costs and Expenses (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 26, 2023
Restructuring and Restructuring Related Costs    
Restructuring and restructuring-related charges $ 208 $ 288
v3.23.1
Composition of Certain Financial Statement Items Investment and Other (Expense) Income, Net (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Investment Income, Net [Abstract]        
Interest and dividend income $ 59 $ 20 $ 114 $ 37
Net gains (losses) on marketable securities 9 (240) 20 (223)
Net (losses) gains on other investments 0 (21) 0 73
Net gains (losses) on deferred compensation plan assets 21 (43) 47 (30)
Impairment losses on other investments (87) (20) (101) (21)
Other (18) 6 (20) 6
Investment and other (expense) income, net $ (16) $ (298) $ 60 $ (158)
v3.23.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 26, 2023
Sep. 24, 2023
Sep. 25, 2022
Income Taxes      
Effective income tax rate (benefit) 10.00%    
Other Current Liabilities      
Income Taxes      
Accrued Income Taxes, Current $ 1,300   $ 634
Forecast      
Income Taxes      
Effective income tax rate (benefit)   8.00%  
Effective Income Tax Rate, at Federal Statutory Income Tax Rate, Percent   21.00%  
Forecast | FDII Effective Tax Rate      
Income Taxes      
Effective income tax rate (benefit)   13.00%  
Forecast | FDII Tax Rate Effective 2027      
Income Taxes      
Effective income tax rate (benefit)   16.00%  
v3.23.1
Capital Stock Share Repurchase Program (Details) - $10B stock repurchase program announced October 12, 2021 - USD ($)
$ in Billions
Mar. 26, 2023
Oct. 12, 2021
Stock Repurchase Program    
Authorized amount   $ 10.0
Remaining authorized amount $ 5.9  
v3.23.1
Capital Stock Shares Outstanding (Details)
shares in Millions
 6 Months Ended
Mar. 26, 2023
shares
Shares Outstanding [Abstract]  
Balance at September 25, 2022 1,121
Issued 11
Repurchased (18)
Balance at March 26, 2023 1,114
v3.23.1
Capital Stock Dividends (Details) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 22, 2023
Jun. 01, 2023
Apr. 12, 2023
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Mar. 08, 2023
Capital Stock Dividends                
Percentage Increase In Common Stock Dividend Per Share Announced               7.00%
Dividends per share announced       $ 0.75 $ 0.68 $ 1.50 $ 1.36  
Amount Of Increased Common Stock Dividends Per Share Announced               $ 0.80
Subsequent Event                
Capital Stock Dividends                
Dividends per share announced     $ 0.80          
Dividends Payable, Date Declared     Apr. 12, 2023          
Dividends Payable, Date to be Paid Jun. 22, 2023              
Dividends Payable, Date of Record   Jun. 01, 2023            
v3.23.1
Capital Stock Earnings per Common Share (Details) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Earnings Per Share [Abstract]        
Dilutive common share equivalents included in diluted shares 7 16 8 17
Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period 5 0 5 0
v3.23.1
Debt (Details)
$ in Millions
Mar. 26, 2023
USD ($)
Debt Instrument  
Long-term Debt, Fair Value $ 15,100
Fixed rate 5.40% due May 2033  
Debt Instrument  
Long-term debt, principal amount $ 700
Debt Instrument, Interest Rate, Stated Percentage 5.40%
Fixed rate 6.0% due May 2053  
Debt Instrument  
Long-term debt, principal amount $ 1,200
Debt Instrument, Interest Rate, Stated Percentage 6.00%
Fixed rate notes due January 2023  
Debt Instrument  
Long-term debt, principal amount $ 946
Floating rate notes due January 2023  
Debt Instrument  
Long-term debt, principal amount $ 500
v3.23.1
Interest Rate Swap (Details) - Forward-starting Interest Rate Swap - USD ($)
$ in Millions
 6 Months Ended
Mar. 26, 2023
Sep. 25, 2022
Derivative Instruments and Hedging Activities Disclosures    
Derivative, Notional Amount   $ 1,600
Derivative, Gain on Derivative $ 334  
v3.23.1
Commercial Paper (Details) - Commercial Paper [Member] - USD ($)
$ in Millions
Mar. 26, 2023
Sep. 25, 2022
Short-term Debt    
Line of Credit Facility, Maximum Borrowing Capacity $ 4,500  
Commercial Paper $ 499 $ 499
v3.23.1
Commitments and Contingencies Legal and Regulatory Proceedings (Details)
€ in Millions, $ in Millions, ₩ in Billions
 3 Months Ended
Jul. 18, 2019
EUR (€)
Mar. 30, 2017
KRW (₩)
Mar. 30, 2017
USD ($)
Sep. 29, 2019
USD ($)
Mar. 26, 2023
USD ($)
Loss Contingencies [Line Items]          
Loss Contingency Accrual         $ 0
KFTC Complaint          
Loss Contingencies [Line Items]          
Loss contingency, loss in period     $ 927    
KFTC Complaint | Korea (South), Won          
Loss Contingencies [Line Items]          
Loss contingency, loss in period | ₩   ₩ 1,030      
Icera Complaint to EC          
Loss Contingencies [Line Items]          
Loss contingency, loss in period       $ 275  
Per annum interest rate for outstanding fines         1.50%
Icera Complaint to EC | Euro Member Countries, Euro          
Loss Contingencies [Line Items]          
Loss contingency, loss in period | € € 242        
v3.23.1
Segment Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2023
Mar. 27, 2022
Mar. 26, 2023
Mar. 27, 2022
Segment Reporting Information [Line Items]        
Revenues $ 9,275 $ 11,164 $ 18,738 $ 21,868
Cost of revenues (4,153) (4,648) (8,197) (8,951)
Research and development expenses (2,210) (2,034) (4,461) (3,963)
Selling, general and administrative expenses (614) (624) (1,238) (1,232)
Other Operating Income (Expense), Net (208) 0 (288) 0
Interest expense (179) (137) (348) (275)
EBT 1,895 3,423 4,266 7,289
Reconciling Items        
Segment Reporting Information [Line Items]        
Revenues 36 30 77 61
Cost of revenues (47) (53) (112) (106)
Research and development expenses (494) (433) (1,018) (886)
Selling, general and administrative expenses (126) (138) (292) (292)
Other Operating Income (Expense), Net (208) 0 (288) 0
Interest expense (178) (137) (348) (275)
Investment and other (expense) income, net 36 (34) 123 (11)
EBT (1,030) (802) (1,952) (1,579)
QCT        
Segment Reporting Information [Line Items]        
Revenues 7,942 9,548 15,834 18,395
EBT 2,107 3,340 4,291 6,455
QTL        
Segment Reporting Information [Line Items]        
Revenues 1,290 1,580 2,814 3,398
EBT 871 1,154 1,988 2,560
QSI        
Segment Reporting Information [Line Items]        
Revenues 7 6 13 14
EBT (53) (269) (61) (147)
Other Segments        
Segment Reporting Information [Line Items]        
Revenues 36 30 77 61
Other Segments | Reconciling Items        
Segment Reporting Information [Line Items]        
EBT $ (13) $ (7) $ (17) $ (9)
v3.23.1
Acquisitions (Details) - USD ($)
$ in Millions
 1 Months Ended
Apr. 01, 2022
Oct. 04, 2021
Dec. 25, 2022
Mar. 26, 2023
Sep. 25, 2022
Business Acquisition          
Disposal Group, Including Discontinued Operations, Consideration     $ 1,500    
Goodwill       $ 10,579 $ 10,508
Veoneer          
Business Acquisition          
Payments to acquire business including debt assumed $ 4,700        
Termination fee paid   $ 110      
Investments in and Advances to Affiliates, at Fair Value, Gross Additions 300        
Remaining advances to affiliates       $ 50  
Total purchase price 4,300        
Cash 30        
Current held for sale assets, net of costs to sell 626        
Finite-Lived Intangibles 349        
In-process research and development (IPR&D) 298        
Goodwill 2,793        
Noncurrent held for sale assets 1,186        
Other assets 326        
Total assets 5,608        
Current held for sale liabilities (677)        
Convertible senior notes (352)        
Noncurrent held for sale liabilities (128)        
Other liabilities (200)        
Liabilities (1,357)        
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net 4,251        
Business Acquisition, Goodwill, Expected Tax Deductible Amount $ 471        
Weighted average amortization period (years) 9 years        
In-Process Research and Development Estimated Useful Life Upon Completion 7 years        
Veoneer | Remainder of Payment          
Business Acquisition          
Payments to acquire business including debt assumed $ 4,600        
v3.23.1
Fair Value Measurements Fair Value Hierarchy (Details) - Fair Value, Recurring
$ in Millions
Mar. 26, 2023
USD ($)
Assets  
Cash equivalents $ 2,146
Marketable securities 3,188
Derivative instruments 37
Other investments 751
Total assets measured at fair value 6,122
Liabilities  
Derivative instruments 210
Other liabilities 730
Total liabilities measured at fair value 940
Level 1  
Assets  
Cash equivalents 1,779
Marketable securities 145
Derivative instruments 0
Other investments 731
Total assets measured at fair value 2,655
Liabilities  
Derivative instruments 0
Other liabilities 730
Total liabilities measured at fair value 730
Level 2  
Assets  
Cash equivalents 367
Marketable securities 3,043
Derivative instruments 37
Other investments 0
Total assets measured at fair value 3,447
Liabilities  
Derivative instruments 210
Other liabilities 0
Total liabilities measured at fair value 210
Level 3  
Assets  
Cash equivalents 0
Marketable securities 0
Derivative instruments 0
Other investments 20
Total assets measured at fair value 20
Liabilities  
Derivative instruments 0
Other liabilities 0
Total liabilities measured at fair value 0
Corporate bonds and notes  
Assets  
Marketable securities 2,943
Corporate bonds and notes | Level 1  
Assets  
Marketable securities 0
Corporate bonds and notes | Level 2  
Assets  
Marketable securities 2,943
Corporate bonds and notes | Level 3  
Assets  
Marketable securities 0
Equity securities  
Assets  
Marketable securities 145
Equity securities | Level 1  
Assets  
Marketable securities 145
Equity securities | Level 2  
Assets  
Marketable securities 0
Equity securities | Level 3  
Assets  
Marketable securities 0
Mortgage- and asset-backed securities  
Assets  
Marketable securities 84
Mortgage- and asset-backed securities | Level 1  
Assets  
Marketable securities 0
Mortgage- and asset-backed securities | Level 2  
Assets  
Marketable securities 84
Mortgage- and asset-backed securities | Level 3  
Assets  
Marketable securities 0
U.S. Treasury and government-related Securities  
Assets  
Marketable securities 16
U.S. Treasury and government-related Securities | Level 1  
Assets  
Marketable securities 0
U.S. Treasury and government-related Securities | Level 2  
Assets  
Marketable securities 16
U.S. Treasury and government-related Securities | Level 3  
Assets  
Marketable securities $ 0
v3.23.1
Marketable Securities (Details) - Available-for-Sale Securities [Member]
$ in Millions
Mar. 26, 2023
USD ($)
Marketable Securities  
Less than one year $ 1,463
One to five years 1,496
No single maturity date 84
Debt Securities, Available-for-sale $ 3,043