QUALCOMM INC/DE, 10-Q filed on 7/28/2021
Quarterly Report
v3.21.2
Cover Page - shares
shares in Millions
9 Months Ended
Jun. 27, 2021
Jul. 26, 2021
Cover [Abstract]    
Entity Registrant Name QUALCOMM INC/DE  
Entity Central Index Key 0000804328  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Current Fiscal Year End Date --09-26  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 27, 2021  
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, $0.0001 par value  
Trading Symbol QCOM  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,128
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
shares in Millions, $ in Millions
Jun. 27, 2021
Sep. 27, 2020
Current assets:    
Cash and cash equivalents $ 7,399 $ 6,707
Marketable securities 5,508 4,507
Accounts receivable, net 2,952 4,003
Inventories 3,133 2,598
Other current assets 701 704
Total current assets 19,693 18,519
Deferred tax assets 1,450 1,351
Property, plant and equipment, net 4,424 3,711
Goodwill 7,229 6,323
Other intangible assets, net 1,542 1,653
Other assets 4,431 4,037
Total assets 38,769 35,594
Current liabilities:    
Trade accounts payable 2,709 2,248
Payroll and other benefits related liabilities 1,503 1,053
Unearned revenues 618 568
Short-term debt 2,045 500
Other current liabilities 4,585 4,303
Total current liabilities 11,460 8,672
Unearned revenues 475 761
Income taxes payable 1,714 1,872
Long-term debt 13,695 15,226
Other liabilities 3,248 2,986
Total liabilities 30,592 29,517
Commitments and contingencies (Note 5)
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; 1,128 and 1,131 shares issued and outstanding, respectively $ 0 $ 586
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 6,000 6,000
Common stock, shares, issued 1,128 1,131
Common stock, shares, outstanding 1,128 1,131
Retained earnings $ 7,993 $ 5,284
Accumulated other comprehensive income 184 207
Total stockholders’ equity 8,177 6,077
Total liabilities and stockholders’ equity $ 38,769 $ 35,594
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Revenues:        
Equipment and services $ 6,428 $ 3,794 $ 19,109 $ 11,376
Licensing 1,632 1,099 5,121 3,809
Total revenues 8,060 4,893 24,230 15,185
Costs and expenses:        
Cost of revenues 3,404 2,080 10,325 6,489
Research and development 1,864 1,520 5,297 4,393
Selling, general and administrative 597 511 1,721 1,523
Other 0 0 0 (23)
Total costs and expenses 5,865 4,111 17,343 12,382
Operating income 2,195 782 6,887 2,803
Interest expense (138) (143) (421) (436)
Investment and other income, net 200 229 523 46
Income before income taxes 2,257 868 6,989 2,413
Income tax expense (230) (23) (744) (175)
Net income $ 2,027 $ 845 $ 6,245 $ 2,238
Basic earnings per share $ 1.80 $ 0.75 $ 5.52 $ 1.97
Diluted earnings per share $ 1.77 $ 0.74 $ 5.43 $ 1.95
Shares used in per share calculations:        
Basic 1,129 1,127 1,132 1,137
Diluted 1,145 1,139 1,151 1,150
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Statement of Comprehensive Income [Abstract]        
Net income $ 2,027 $ 845 $ 6,245 $ 2,238
Other comprehensive (loss) income, net of income taxes:        
Foreign currency translation gains (losses) 10 8 64 (5)
Net unrealized gains (losses) on available-for-sale debt securities 2 22 (4) 17
Net unrealized (losses) gains on derivative instruments (91) 30 (45) 2
Other (losses) gains 0 0 (3) 7
Certain reclassifications included in net income (18) (3) (35) (9)
Total other comprehensive (loss) income (97) 57 (23) 12
Comprehensive income $ 1,930 $ 902 $ 6,222 $ 2,250
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Operating Activities:    
Net income $ 6,245 $ 2,238
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 1,157 1,054
Income tax provision less than income tax payments (358) (459)
Share-based compensation expense 1,238 899
Net gains on marketable securities and other investments (487) (269)
Impairment losses on other investments 24 349
Other items, net (73) (108)
Changes in assets and liabilities:    
Accounts receivable, net 1,052 622
Inventories (509) (938)
Other assets 39 (139)
Trade accounts payable 449 745
Payroll, benefits and other liabilities 805 277
Unearned revenues (123) (198)
Net cash provided by operating activities 9,459 4,073
Investing Activities:    
Capital expenditures (1,458) (1,059)
Purchases of debt and equity marketable securities (5,458) (4,818)
Proceeds from sales and maturities of debt and equity marketable securities 4,482 1,011
Acquisitions and other investments, net of cash acquired (1,284) (159)
Proceeds from other investments 234 58
Other items, net 78 42
Net cash used by investing activities (3,406) (4,925)
Financing Activities:    
Proceeds from short-term debt 2,185 2,286
Repayment of short-term debt (2,185) (2,285)
Proceeds from long-term debt 0 1,989
Repayment of long-term debt 0 (2,000)
Proceeds from issuance of common stock 174 176
Repurchases and retirements of common stock (2,595) (2,450)
Dividends paid (2,240) (2,148)
Payments of tax withholdings related to vesting of share-based awards (710) (329)
Other items, net (25) (110)
Net cash used by financing activities (5,396) (4,871)
Effect of exchange rate changes on cash and cash equivalents 35 4
Net increase (decrease) in total cash and cash equivalents 692 (5,719)
Total cash and cash equivalents at beginning of period 6,707 11,839
Total cash and cash equivalents at end of period $ 7,399 $ 6,120
v3.21.2
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. 29, 2019 $ 4,909 $ 343 $ 4,466 $ 100
Common stock issued under employee benefit plans   174    
Repurchases and retirements of common stock   (1,042) (1,408)  
Share-based compensation   967    
Tax withholdings related to vesting of share-based payments   (329)    
Stock awards assumed in acquisition   0    
Net income 2,238   2,238  
Dividends     (2,215)  
Other comprehensive (loss) income       12
Balance at end of period at Jun. 28, 2020 $ 3,306 113 3,081 112
Dividends per share announced $ 1.89      
Balance at beginning of period at Mar. 29, 2020 $ 3,045 0 2,990 55
Common stock issued under employee benefit plans   0    
Repurchases and retirements of common stock   (110) 0  
Share-based compensation   317    
Tax withholdings related to vesting of share-based payments   (94)    
Stock awards assumed in acquisition   0    
Net income 845   845  
Dividends     (754)  
Other comprehensive (loss) income       57
Balance at end of period at Jun. 28, 2020 $ 3,306 113 3,081 112
Dividends per share announced $ 0.65      
Balance at beginning of period at Sep. 27, 2020 $ 6,077 586 5,284 207
Common stock issued under employee benefit plans   174    
Repurchases and retirements of common stock   (1,369) (1,226)  
Share-based compensation   1,309    
Tax withholdings related to vesting of share-based payments   (710)    
Stock awards assumed in acquisition   10    
Net income 6,245   6,245  
Dividends     (2,310)  
Other comprehensive (loss) income       (23)
Balance at end of period at Jun. 27, 2021 $ 8,177 0 7,993 184
Dividends per share announced $ 1.98      
Balance at beginning of period at Mar. 28, 2021 $ 7,424 0 7,143 281
Common stock issued under employee benefit plans   0    
Repurchases and retirements of common stock   (240) (390)  
Share-based compensation   449    
Tax withholdings related to vesting of share-based payments   (209)    
Stock awards assumed in acquisition   0    
Net income 2,027   2,027  
Dividends     (787)  
Other comprehensive (loss) income       (97)
Balance at end of period at Jun. 27, 2021 $ 8,177 $ 0 $ 7,993 $ 184
Dividends per share announced $ 0.68      
v3.21.2
Basis of Presentation and Significant Accounting Policies Update (Notes)
9 Months Ended
Jun. 27, 2021
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 27, 2020. 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 nine months ended June 27, 2021 and June 28, 2020 included 13 weeks and 39 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.
Recently Adopted Accounting Guidance.
Financial Assets: In June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance that changed the accounting for recognizing impairments of financial assets. Under the new accounting guidance, credit losses for financial assets held at amortized cost (such as accounts receivable) are estimated based on expected losses rather than the previous incurred loss impairment model. The new accounting guidance also eliminated the concept of other-than-temporary impairment with credit losses related to available-for-sale debt securities recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. We adopted the new accounting guidance in the first quarter of fiscal 2021 under the modified retrospective transition method, except for certain available-for-sale debt securities where the prospective transition method was required, and as a result, prior period results have not been restated. The impact upon adoption was not material to our condensed consolidated financial statements. The future impact of such accounting guidance will largely depend on the future composition and credit quality of our investment portfolio and accounts receivable, as well as future economic conditions.
Accounting Policy Update.
Marketable Securities: As a result of the adoption of the new accounting guidance described above, we revised our accounting policy beginning in fiscal 2021 as follows.
Marketable securities include marketable equity securities, available-for-sale debt securities and, from time-to-time, certain time deposits. We classify marketable securities as current or noncurrent based on the nature of the securities and their availability for use in current operations. Marketable securities are stated at fair value with all realized and unrealized gains and losses on investments in marketable equity securities and realized gains and losses on available-for-sale debt securities recognized in investment and other income, net. Debt securities are classified as available for sale or held to maturity at the time of purchase and reevaluated at each balance sheet date. The realized and unrealized gains and losses on marketable securities are determined using the specific identification method.
If a debt security has an unrealized loss and we either intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, we record an impairment charge to investment and other income, net for the entire amount of the unrealized loss and adjust the amortized cost basis of the security. For the remaining debt securities, if an unrealized loss exists, we separate the impairment into the portion of the loss related to credit factors and the portion of the loss that is not related to credit factors. Unrealized gains or unrealized losses that are not related to credit factors on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income, net of income taxes. Unrealized losses that are related to credit loss factors on available-for-sale debt securities and subsequent adjustments to the credit loss are recorded as an allowance for credit losses, which is included in investment and other income, net. In evaluating whether a credit loss exists, we consider a variety of factors, including the significance of the decline in value as compared to the cost basis; underlying factors contributing to a decline in the prices of securities in a single asset class; the security’s relative performance versus its peers, sector or asset class; the market and economy in general; views of external investment managers; news or financial information that has been released specific to the investee; and the outlook for the overall industry in which the investee operates.
v3.21.2
Composition of Certain Financial Statement Items (Notes)
9 Months Ended
Jun. 27, 2021
Balance Sheet Related Disclosures [Abstract]  
Composition of Certain Financial Statement Items Composition of Certain Financial Statement Items
Inventories (in millions)
June 27,
2021
September 27,
2020
Raw materials$231 $94 
Work-in-process1,422 1,155 
Finished goods1,480 1,349 
$3,133 $2,598 
Short-term Debt (in millions)
June 27,
2021
September 27,
2020
Commercial paper$500 $500 
Current portion of long-term debt1,545 — 
$2,045 $500 
Revolving Credit Facility. On December 8, 2020, we entered into a Revolving Credit Facility replacing our prior Amended and Restated Revolving Credit Facility. There were no outstanding borrowings under the Amended and Restated Revolving Credit Facility at the time of termination. The Revolving Credit Facility provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $4.5 billion, which expires on December 8, 2025. At June 27, 2021, no amounts were outstanding under the Revolving Credit Facility. The Revolving Credit Facility requires that we comply with certain financial covenants, including that we maintain an interest coverage ratio, as defined in the agreement. At June 27, 2021, we were in compliance with the applicable covenants under the Revolving Credit Facility.
Interest Rate Swaps. During the nine months ended June 27, 2021, we entered into forward-starting interest rate swaps to hedge the variability of forecasted interest payments on anticipated debt issuances through 2025. At June 27, 2021, the notional amount of the forward-starting interest rate swaps outstanding, which are denominated in U.S. dollars, was $2.6 billion. The fair values of the forward-starting interest rate swaps recorded in other current liabilities and other noncurrent liabilities were $38 million and $38 million, respectively, at June 27, 2021.
Revenues. We disaggregate our revenues by segment (Note 6) and type of 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 industry segment and application in which our products are sold (as presented below). In certain cases, the determination of QCT revenues by industry segment 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 EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Handsets (1)$3,863 $2,457 $12,144 $7,461 
RFFE (2) 957 447 2,921 1,509 
Automotive (3)253 138 705 456 
IoT (internet of things) (4)1,399 765 3,517 2,100 
Total QCT revenues$6,472 $3,807 $19,287 $11,526 
(1) Includes revenues from products sold for use in mobile handsets, excluding RFFE (radio frequency front-end) components.
(2) Includes all revenues from sales of 4G, 5G sub-6 and 5G millimeter wave RFFE products (a substantial portion of which are sold for use in handsets) and excludes radio frequency transceiver components.
(3) Includes revenues from products sold for use in automobiles, including telematics, connectivity and infotainment (also known as digital cockpit).
(4) Primarily includes products sold for use in the following industry segments and applications: consumer (including computing, voice and music and XR), industrial (including handhelds, retail, transportation and logistics, and utilities) and edge networking (including mobile broadband and wireless access points).
Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were $170 million and $258 million for the three and nine months ended June 27, 2021, respectively, and primarily related to certain QCT customer incentives, the release of a variable constraint against revenues not previously allocated to our segment results (Note 6), 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). Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were $141 million and $258 million for the three and nine months ended June 28, 2020, respectively, and primarily related to 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 certain QCT customer incentives.
Unearned revenues (which are considered contract liabilities) consist primarily of license fees for intellectual property with continuing performance obligations. In the nine months ended June 27, 2021 and June 28, 2020, we recognized revenues of $437 million and $424 million, respectively, that were recorded as unearned revenues at September 27, 2020 and September 29, 2019, respectively.
Remaining performance obligations, substantially all of which are included in unearned revenues, 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. Our remaining performance obligations are primarily comprised of certain customer contracts for which QTL received license fees upfront. At June 27, 2021, we had $1.1 billion of remaining performance obligations, of which $143 million, $567 million, $274 million, $88 million and $31 million was expected to be recognized as revenues for the remainder of fiscal 2021 and each of the subsequent four years from fiscal 2022 through 2025, respectively, and $2 million thereafter.
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/licensees 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 EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Customer/licensee (v)16 %*22 %*
Customer/licensee (w)16 14 %14 15 %
Customer/licensee (x)13 17 14 20 
Customer/licensee (y)10 11 10 10 
Customer/licensee (z)*10 **
* Less than 10%
Accounts receivable at September 27, 2020 included approximately $1.3 billion, excluding the impact of foreign withholding taxes, from Huawei related to the remaining amounts due under the previously disclosed settlement agreement and estimated royalties for sales made in the September 2020 quarter. Since September 27, 2020 and subsequent to June 27, 2021, Huawei paid all such amounts, including the final installment under the settlement agreement in accordance with the agreed upon payment schedule.
Other Income, Costs and Expenses. Other income in the nine months ended June 28, 2020 consisted of a $23 million gain related to a favorable legal settlement.
Investment and Other Income, Net (in millions)
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Interest and dividend income$21 $30 $63 $135 
Net gains on marketable securities53 117 86 183 
Net gains on other investments97 48 307 84 
Net gains on deferred compensation plan assets38 57 115 16 
Impairment losses on other investments(7)(12)(24)(349)
Net gains (losses) on derivative investments — (7)
Equity in net earnings (losses) of investees(6)12 (21)
Net losses on foreign currency transactions(3)(6)(29)(4)
$200 $229 $523 $46 
v3.21.2
Income Taxes (Notes)
9 Months Ended
Jun. 27, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We estimate our annual effective income tax rate to be 11% for fiscal 2021, which is lower than the U.S. federal statutory rate, primarily due to a significant portion of our income qualifying for preferential treatment as foreign-derived intangible income (FDII) at a 13% effective tax rate, excess tax benefits associated with share-based awards and benefits from our federal research and development tax credit. The effective tax rate of 10% for the third quarter of fiscal 2021 was lower than the estimated annual effective tax rate of 11% primarily due to $64 million of discrete net tax benefits recorded in the third quarter of fiscal 2021, which principally related to excess tax benefits associated with share-based awards that vested in the third fiscal quarter. The effective tax rate of 3% for the third quarter of fiscal 2020 included benefits recorded in the third quarter of fiscal 2020, which principally related to certain releases of our valuation allowance on capital losses, a higher FDII deduction and foreign tax credit utilization.
Unrecognized tax benefits were $2.0 billion and $1.9 billion at June 27, 2021 and September 27, 2020, respectively, and primarily related to our refund claim of Korean withholding tax. If successful, the refund will result in a corresponding reduction in U.S. foreign tax credits. We expect that the total amount of unrecognized tax benefits at June 27, 2021 will increase in the next 12 months as licensees in Korea continue to withhold taxes on future payments due under their licensing agreements at a rate higher than we believe is owed; such increase is not expected to have a significant impact on our income tax provision.
v3.21.2
Capital Stock (Notes)
9 Months Ended
Jun. 27, 2021
Stockholders' Equity Attributable to Parent [Abstract]  
Capital Stock Capital Stock
Stock Repurchase Program. On July 26, 2018, we announced a stock repurchase program authorizing us to repurchase up to $30 billion of our common stock. The stock repurchase program has no expiration date.
In the nine months ended June 27, 2021 and June 28, 2020, we repurchased and retired 18 million and 31 million shares, respectively, for $2.6 billion and $2.5 billion, respectively, before commissions. To reflect share repurchases in the consolidated balance sheet, we (i) reduce common stock for the par value of the shares, (ii) reduce paid-in capital for the amount in excess of par to zero during the quarter in which the shares are repurchased and (iii) record the residual amount, if any, to retained earnings. At June 27, 2021, $2.0 billion remained authorized for repurchase under our stock repurchase program.
Dividends. On July 14, 2021, we announced a cash dividend of $0.68 per share on our common stock, payable on September 23, 2021 to stockholders of record as of the close of business on September 2, 2021.
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 dilutive common share equivalents, comprised of shares issuable under our share-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. The following table provides information about the diluted earnings per share calculation (in millions):
 Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Dilutive common share equivalents included in diluted shares16 12 19 13 
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— — 
v3.21.2
Commitments and Contingencies (Notes)
9 Months Ended
Jun. 27, 2021
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 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 appointed lead plaintiffs. On July 3, 2017, the lead plaintiffs filed a consolidated amended complaint asserting the same basic theories of liability and requesting the same basic relief. On September 1, 2017, we filed a motion to dismiss the consolidated amended complaint. On March 18, 2019, the court denied our motion to dismiss. On January 15, 2020, we filed a motion for judgment on the pleadings. The court has not yet ruled on our motion. We believe the plaintiffs’ claims are without merit.
In re Qualcomm/Broadcom Merger Securities Litigation: On June 8, 2018 and June 26, 2018, 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 two of our then current officers. 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 failing to disclose that we had submitted a notice to the Committee on Foreign Investment in the United States (CFIUS) in January 2018. The complaints sought unspecified damages, interest, fees and costs. On January 22, 2019, the court appointed the lead plaintiff in the action. On March 18, 2019, the plaintiffs filed a consolidated complaint asserting the same basic theories of liability and requesting the same basic relief. On May 10, 2019, we filed a motion to dismiss the consolidated complaint, and on March 10, 2020, the court granted our motion. On May 11, 2020, the plaintiffs filed a second amended complaint, and on October 8, 2020, the court granted our motion to dismiss the case with prejudice. On November 7, 2020, the plaintiffs filed a notice of appeal. No hearing date has been set. We believe the plaintiffs’ claims are without merit.
Consumer Class Action Lawsuits: Since January 18, 2017, a number of consumer class action complaints have been 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 May 15, 2017, the court entered an order appointing the plaintiffs’ co-lead counsel. 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 seeks unspecified damages and disgorgement and/or restitution, as well as an order that we be enjoined from further unlawful conduct. On August 11, 2017, we filed a motion to dismiss the consolidated amended complaint. On November 10, 2017, the court denied our motion, except to the extent that certain claims seek damages under the Sherman Antitrust Act. On July 5, 2018, the plaintiffs filed a motion for class certification, and the court granted that motion on September 27, 2018. On January 23, 2019, the United States Court of Appeals for the Ninth Circuit (Ninth Circuit) granted us permission to appeal the court’s class certification order. On January 24, 2019, the court stayed the case pending our appeal. On December 2, 2019, a hearing on our appeal of the class certification order was held before the Ninth Circuit. The Ninth Circuit has not yet ruled on our appeal. 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 Ontario Superior Court of Justice, 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, then captioned ParkerVision, Inc. v. QUALCOMM Incorporated, Qualcomm Atheros, Inc., HTC Corporation, HTC America, Inc., Samsung Electronics Co., LTD., Samsung Electronics America, Inc. and Samsung Telecommunications America, LLC, broadening the allegations. ParkerVision alleged that we infringed 11 ParkerVision patents and sought damages and injunctive and other relief. ParkerVision has subsequently reduced the number of patents asserted to four, granted covenants not to sue on the other patents and dismissed the Samsung and HTC entities from the case. 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 26, 2021, the court issued an order stating that trial is extremely unlikely to occur before November or December 2021, if then. We believe that ParkerVision’s claims are without merit.
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. Both we and the KFTC have filed briefs on the merits. The Korea Supreme Court has not yet ruled on our appeal or that of the KFTC. We believe that our business practices do not violate the MRFTA.
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 has not provided a formal notice on the scope of their investigation, but we believe it concerns our business practices in connection with our sale of radio frequency front-end (RFFE) components. We continue to cooperate with the KFTC as it conducts its investigation. If a violation is found, a broad range of remedies is potentially available to the KFTC, including imposing a fine (of up to 3% of our sales in the relevant markets during the alleged period of violation) and/or injunctive relief prohibiting or restricting certain business practices. It is difficult to predict the outcome of this matter or what remedies, if any, may be imposed by the KFTC. We believe that our business practices do not violate the MRFTA.
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 confirming their preliminary view 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. The court has not yet ruled on our appeal. 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 this 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. In the fourth quarter of fiscal 2019, we designated the liability as a hedge of our net investment in certain foreign subsidiaries, with gains and losses recorded in accumulated other comprehensive income as a component of the foreign currency translation adjustment. At June 27, 2021, the liability, including related foreign currency losses and accrued interest (which, to the extent they were not related to the net investment hedge, were recorded in investment and other income, net), was $296 million and included in other current liabilities.
European Commission (EC) Investigation: On October 15, 2014, the EC notified us that it was conducting an investigation of us relating to Articles 101 and/or 102 of the Treaty on the Functioning of the European Union (TFEU). On July 16, 2015, the EC announced that it had initiated formal proceedings in this matter. On January 24, 2018, the EC issued a decision finding that pursuant to an agreement with Apple Inc. we paid significant amounts to Apple on the condition that it exclusively use our baseband chipsets in its smartphones and tablets, reducing Apple’s incentives to source baseband chipsets from our competitors and harming competition and innovation for certain baseband chipsets, and imposed a fine of 997 million euros. On April 6, 2018, we filed an appeal of the EC’s decision with the General Court of the European Union. From May 4, 2021 to May 6, 2021, a hearing on our appeal was held before the court. The court has not yet issued a ruling. We believe that our business practices do not violate the EU competition rules.
In the first quarter of fiscal 2018, we recorded a charge of $1.2 billion to other expenses related to this EC fine. We provided financial guarantees in the third quarter of fiscal 2018 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. In the first quarter of fiscal 2019, we designated the liability as a hedge of our net investment in certain foreign subsidiaries, with gains and losses recorded in accumulated other comprehensive income as a component of the foreign currency translation adjustment. At June 27, 2021, the liability, including related foreign currency losses and accrued interest (which, to the extent they were
not related to the net investment hedge, were recorded in investment and other income, net), was $1.2 billion and included in other current liabilities.
Contingent losses and other considerations: We will continue to vigorously defend ourselves in the foregoing matters. However, litigation and investigations are inherently uncertain, and we face difficulties in evaluating or estimating likely outcomes or ranges of possible loss in antitrust and trade regulation investigations in particular. Other than with respect to the EC fines, we have not recorded any accrual at June 27, 2021 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.
Long-term Capacity Commitments. In the third quarter of fiscal 2021, we entered into several multi-year capacity purchase commitments with certain suppliers of our integrated circuit products. Failure to meet future minimum purchase volumes may result in incremental fees or the loss of amounts paid in advance. We currently expect to meet all future minimum purchase volume commitments in addition to other requirements related to advance and/or ongoing payment obligations. As a result of these arrangements, our future purchase obligation commitments have increased materially since September 27, 2020.
v3.21.2
Segment Information (Notes)
9 Months Ended
Jun. 27, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
We are organized on the basis of products and services and have three reportable segments. Our operating segments reflect the way our businesses and management/reporting structure are organized internally and the way our Chief Operating Decision Maker (CODM), who is our CEO, reviews financial information, makes operating decisions and assesses business performance. We also consider, among other items, the way budgets and forecasts are prepared and reviewed and the basis on which executive compensation is determined, as well as the similarity of business activities within our operating segments, such as the nature of products, the level of shared products, technology and other resources, production processes and customer base. 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 for use in mobile devices, wireless networks, devices used in IoT, broadband gateway equipment, consumer electronic devices and automotive systems for telematics and infotainment. 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, sale or use of certain wireless products. Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments and includes revenues and related costs associated with development contracts with an investee. We also have nonreportable segments, including QGOV (Qualcomm Government Technologies), our cloud AI inference processing initiative and other technology and service initiatives.
Our CODM allocates resources to and evaluates the performance of our segments based on revenues and earnings (loss) before income taxes (EBT). 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 our management reports because they are not considered in evaluating the segments’ operating performance. Unallocated income and charges include certain interest expense, certain net investment income, certain share-based compensation, gains and losses on our deferred compensation plan liabilities and related assets 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 and property, plant and equipment to fair value, amortization of certain intangible assets and certain other acquisition-related charges, third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, goodwill and long-lived asset impairment charges and awards, settlements and/or damages arising from legal or regulatory matters.
The table below presents revenues and EBT for reportable segments (in millions):
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Revenues
QCT$6,472 $3,807 $19,287 $11,526 
QTL1,489 1,044 4,762 3,520 
QSI11 30 33 
Reconciling items88 39 151 106 
Total$8,060 $4,893 $24,230 $15,185 
EBT
QCT$1,795 $603 $5,299 $1,748 
QTL1,053 646 3,514 2,335 
QSI156 153 412 (58)
Reconciling items(747)(534)(2,236)(1,612)
Total$2,257 $868 $6,989 $2,413 
Reconciling items for revenues and EBT in the previous table were as follows (in millions):
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Revenues
Nonreportable segments$34 $39 $97 $106 
Unallocated revenues (Note 2)54 — 54 — 
$88 $39 $151 $106 
EBT
Unallocated revenues (Note 2)$54 $— $54 $— 
Unallocated cost of revenues(73)(87)(220)(262)
Unallocated research and development expenses(505)(271)(1,325)(746)
Unallocated selling, general and administrative expenses(125)(103)(418)(275)
Unallocated other income (Note 2)— — — 23 
Unallocated interest expense(138)(142)(420)(434)
Unallocated investment and other income, net55 76 140 129 
Nonreportable segments(15)(7)(47)(47)
$(747)$(534)$(2,236)$(1,612)
v3.21.2
Acquisitions
9 Months Ended
Jun. 27, 2021
Business Combinations [Abstract]  
Acquisitions Acquisitions
On March 16, 2021 (the Closing Date), we completed the acquisition of NuVia, Inc. (NUVIA) for $1.1 billion (net of cash acquired), substantially all of which was paid in cash. In connection with the acquisition, we assumed or replaced unvested NUVIA stock awards with Qualcomm stock awards with an estimated fair value of $258 million, for which $10 million was attributable to pre-acquisition services and included in the purchase price, and the remaining amount is recognized as compensation expense over the related post-acquisition requisite service period of up to four years.
NUVIA has certain in-process technologies and is comprised of a CPU (central processing unit) and technology design team with expertise in high performance processors, SoC (system-on-chip) and power management for compute-intensive devices and applications. Upon completion of development, NUVIA’s technologies are expected to be integrated into certain QCT products.
We have not finalized the purchase price allocation. Accordingly, the preliminary purchase price allocation shown below could change as the fair values of the assets acquired and liabilities assumed, and the related income tax effects, are finalized during the remainder of the measurement period (which will not exceed 12 months from the Closing Date). The preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
Cash$174 
In-process research and development (IPR&D)247 
Goodwill887 
Other assets25 
Total assets1,333 
Liabilities(69)
Net assets acquired$1,264 
Goodwill recognized in this transaction is not deductible for tax purposes and was allocated to our QCT segment for annual impairment testing purposes. Goodwill is primarily attributable to assembled workforce and certain revenue and cost synergies expected to arise after the acquisition. IPR&D is related to a single project, which is expected to be completed in fiscal 2023 and, upon completion, will be amortized over its useful life, which is expected to be seven years. The estimated fair value of the IPR&D asset acquired was determined using an income approach based on significant inputs that were not observable.
Our results of operations for the three and nine months ended June 27, 2021 included the operating results of NUVIA since the Closing Date, the amounts of which were not material. Pro forma results of operations have not been presented because the effects of this acquisition were not material to our condensed consolidated results of operations.
v3.21.2
Fair Value Measurements (Notes)
9 Months Ended
Jun. 27, 2021
Fair Value Measurements [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at June 27, 2021 (in millions):
Level 1Level 2Level 3Total
Assets    
Cash equivalents$3,147 $3,022 $— $6,169 
Marketable securities:    
Corporate bonds and notes— 5,035 — 5,035 
Equity securities303 — — 303 
Mortgage- and asset-backed securities— 160 — 160 
U.S. Treasury securities and government-related securities— 10 — 10 
Total marketable securities303 5,205 — 5,508 
Derivative instruments— 40 — 40 
Other investments664 — 673 
Total assets measured at fair value$4,114 $8,267 $$12,390 
Liabilities    
Derivative instruments$— $88 $— $88 
Other liabilities664 — — 664 
Total liabilities measured at fair value$664 $88 $— $752 
Activity within Level 3 of the Fair Value Hierarchy. Other investments included in Level 3 at June 27, 2021 were comprised of non-marketable debt instruments. Activity for marketable securities and other investments classified within Level 3 was insignificant during the nine months ended June 27, 2021 (primarily related to sales of auction rate securities and settlements of non-marketable debt instruments) and the nine months ended June 28, 2020 (primarily related to impairments of certain non-marketable debt instruments and purchases of non-marketable debt instruments). Activity for other liabilities
classified within Level 3 was insignificant during the nine months ended June 28, 2020 (primarily related to payments of contingent consideration related to a certain business acquisition).
Assets Measured and Recorded at Fair Value on a Nonrecurring Basis. We measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities include equity method and non-marketable equity investments, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. During the nine months ended June 27, 2021 and June 28, 2020, certain of our non-marketable equity investments were written down to their estimated fair values, which was recorded as a component of impairment losses on other investments in investment and other income, net (Note 2), and certain other non-marketable equity investments were remeasured to their estimated fair values based on observable price changes in orderly transactions for identical or similar securities, which is recorded as a component of net gains on other investments in investment and other income, net (Note 2). The estimation of fair value used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3.
Long-term Debt. At June 27, 2021 and September 27, 2020, the aggregate fair value of our outstanding floating- and fixed-rate notes, based on Level 2 inputs, was approximately $17.0 billion and $17.5 billion, respectively.
v3.21.2
Marketable Securities (Notes)
9 Months Ended
Jun. 27, 2021
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities Marketable Securities
Our marketable securities were comprised as follows (in millions):
CurrentNoncurrent (1)
June 27,
2021
September 27,
2020
June 27,
2021
September 27,
2020
Available-for-sale debt securities:    
Corporate bonds and notes$5,035 $4,049 $— $— 
Mortgage- and asset-backed and auction rate securities160 66 — 35 
U.S. Treasury securities and government-related securities10 10 — — 
Total available-for-sale debt securities5,205 4,125 — 35 
Equity securities
303 352 — — 
 Time deposit (2)— 30 — — 
Total marketable securities$5,508 $4,507 $— $35 
(1) Noncurrent marketable securities were included in other assets.
(2) At September 27, 2020, marketable securities also included a time deposit with an original maturity of greater than 90 days.
The contractual maturities of available-for-sale debt securities were as follows (in millions):
June 27,
2021
Years to Maturity
Less than one year$1,938 
One to five years3,107 
No single maturity date160 
Total$5,205 
Debt securities with no single maturity date included mortgage- and asset-backed securities.
v3.21.2
Basis of Presentation and Significant Accounting Policies Update (Policies)
9 Months Ended
Jun. 27, 2021
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 nine months ended June 27, 2021 and June 28, 2020 included 13 weeks and 39 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.
Recent Accounting Pronouncements, Policy
Recently Adopted Accounting Guidance.
Financial Assets: In June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance that changed the accounting for recognizing impairments of financial assets. Under the new accounting guidance, credit losses for financial assets held at amortized cost (such as accounts receivable) are estimated based on expected losses rather than the previous incurred loss impairment model. The new accounting guidance also eliminated the concept of other-than-temporary impairment with credit losses related to available-for-sale debt securities recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. We adopted the new accounting guidance in the first quarter of fiscal 2021 under the modified retrospective transition method, except for certain available-for-sale debt securities where the prospective transition method was required, and as a result, prior period results have not been restated. The impact upon adoption was not material to our condensed consolidated financial statements. The future impact of such accounting guidance will largely depend on the future composition and credit quality of our investment portfolio and accounts receivable, as well as future economic conditions.
Accounting Policy Update.
Marketable Securities: As a result of the adoption of the new accounting guidance described above, we revised our accounting policy beginning in fiscal 2021 as follows.
Marketable securities include marketable equity securities, available-for-sale debt securities and, from time-to-time, certain time deposits. We classify marketable securities as current or noncurrent based on the nature of the securities and their availability for use in current operations. Marketable securities are stated at fair value with all realized and unrealized gains and losses on investments in marketable equity securities and realized gains and losses on available-for-sale debt securities recognized in investment and other income, net. Debt securities are classified as available for sale or held to maturity at the time of purchase and reevaluated at each balance sheet date. The realized and unrealized gains and losses on marketable securities are determined using the specific identification method.
If a debt security has an unrealized loss and we either intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, we record an impairment charge to investment and other income, net for the entire amount of the unrealized loss and adjust the amortized cost basis of the security. For the remaining debt securities, if an unrealized loss exists, we separate the impairment into the portion of the loss related to credit factors and the portion of the loss that is not related to credit factors. Unrealized gains or unrealized losses that are not related to credit factors on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income, net of income taxes. Unrealized losses that are related to credit loss factors on available-for-sale debt securities and subsequent adjustments to the credit loss are recorded as an allowance for credit losses, which is included in investment and other income, net. In evaluating whether a credit loss exists, we consider a variety of factors, including the significance of the decline in value as compared to the cost basis; underlying factors contributing to a decline in the prices of securities in a single asset class; the security’s relative performance versus its peers, sector or asset class; the market and economy in general; views of external investment managers; news or financial information that has been released specific to the investee; and the outlook for the overall industry in which the investee operates.
Revenue Recognition We disaggregate our revenues by segment (Note 6) and type of 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 industry segment and application in which our products are sold (as presented below). In certain cases, the determination of QCT revenues by industry segment 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.
Stockholders' equity policy, Stock repurchases To reflect share repurchases in the consolidated balance sheet, we (i) reduce common stock for the par value of the shares, (ii) reduce paid-in capital for the amount in excess of par to zero during the quarter in which the shares are repurchased and (iii) record the residual amount, if any, to retained earnings
Segment Reporting Policy We are organized on the basis of products and services and have three reportable segments.
Segment Reporting EBT Policy Our CODM allocates resources to and evaluates the performance of our segments based on revenues and earnings (loss) before income taxes (EBT). 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 our management reports because they are not considered in evaluating the segments’ operating performance. Unallocated income and charges include certain interest expense, certain net investment income, certain share-based compensation, gains and losses on our deferred compensation plan liabilities and related assets 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 and property, plant and equipment to fair value, amortization of certain intangible assets and certain other acquisition-related charges, third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, goodwill and long-lived asset impairment charges and awards, settlements and/or damages arising from legal or regulatory matters.
v3.21.2
Composition of Certain Financial Statement Items (Tables)
9 Months Ended
Jun. 27, 2021
Balance Sheet Related Disclosures [Abstract]  
Inventories
Inventories (in millions)
June 27,
2021
September 27,
2020
Raw materials$231 $94 
Work-in-process1,422 1,155 
Finished goods1,480 1,349 
$3,133 $2,598 
Short-term Debt
Short-term Debt (in millions)
June 27,
2021
September 27,
2020
Commercial paper$500 $500 
Current portion of long-term debt1,545 — 
$2,045 $500 
QCT Revenues Disaggregated QCT revenue streams were as follows (in millions):
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Handsets (1)$3,863 $2,457 $12,144 $7,461 
RFFE (2) 957 447 2,921 1,509 
Automotive (3)253 138 705 456 
IoT (internet of things) (4)1,399 765 3,517 2,100 
Total QCT revenues$6,472 $3,807 $19,287 $11,526 
(1) Includes revenues from products sold for use in mobile handsets, excluding RFFE (radio frequency front-end) components.
(2) Includes all revenues from sales of 4G, 5G sub-6 and 5G millimeter wave RFFE products (a substantial portion of which are sold for use in handsets) and excludes radio frequency transceiver components.
(3) Includes revenues from products sold for use in automobiles, including telematics, connectivity and infotainment (also known as digital cockpit).
(4) Primarily includes products sold for use in the following industry segments and applications: consumer (including computing, voice and music and XR), industrial (including handhelds, retail, transportation and logistics, and utilities) and edge networking (including mobile broadband and wireless access points).
Customer Concentrations - Revenues Revenues from each customer/licensee that were 10% or greater of total revenues were as follows:
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Customer/licensee (v)16 %*22 %*
Customer/licensee (w)16 14 %14 15 %
Customer/licensee (x)13 17 14 20 
Customer/licensee (y)10 11 10 10 
Customer/licensee (z)*10 **
Investment and Other Income, Net
Investment and Other Income, Net (in millions)
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Interest and dividend income$21 $30 $63 $135 
Net gains on marketable securities53 117 86 183 
Net gains on other investments97 48 307 84 
Net gains on deferred compensation plan assets38 57 115 16 
Impairment losses on other investments(7)(12)(24)(349)
Net gains (losses) on derivative investments — (7)
Equity in net earnings (losses) of investees(6)12 (21)
Net losses on foreign currency transactions(3)(6)(29)(4)
$200 $229 $523 $46 
v3.21.2
Capital Stock Earnings per Common Share (Tables)
9 Months Ended
Jun. 27, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The following table provides information about the diluted earnings per share calculation (in millions):
 Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Dilutive common share equivalents included in diluted shares16 12 19 13 
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— — 
v3.21.2
Segment Information (Tables)
9 Months Ended
Jun. 27, 2021
Segment Reporting [Abstract]  
Revenues, EBT, and Assets for reportable segments
The table below presents revenues and EBT for reportable segments (in millions):
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Revenues
QCT$6,472 $3,807 $19,287 $11,526 
QTL1,489 1,044 4,762 3,520 
QSI11 30 33 
Reconciling items88 39 151 106 
Total$8,060 $4,893 $24,230 $15,185 
EBT
QCT$1,795 $603 $5,299 $1,748 
QTL1,053 646 3,514 2,335 
QSI156 153 412 (58)
Reconciling items(747)(534)(2,236)(1,612)
Total$2,257 $868 $6,989 $2,413 
Reconciling items for reportable segments - revenues
Reconciling items for revenues and EBT in the previous table were as follows (in millions):
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Revenues
Nonreportable segments$34 $39 $97 $106 
Unallocated revenues (Note 2)54 — 54 — 
$88 $39 $151 $106 
EBT
Unallocated revenues (Note 2)$54 $— $54 $— 
Unallocated cost of revenues(73)(87)(220)(262)
Unallocated research and development expenses(505)(271)(1,325)(746)
Unallocated selling, general and administrative expenses(125)(103)(418)(275)
Unallocated other income (Note 2)— — — 23 
Unallocated interest expense(138)(142)(420)(434)
Unallocated investment and other income, net55 76 140 129 
Nonreportable segments(15)(7)(47)(47)
$(747)$(534)$(2,236)$(1,612)
Reconciling items for reportable segments - EBT
Reconciling items for revenues and EBT in the previous table were as follows (in millions):
Three Months EndedNine Months Ended
June 27,
2021
June 28,
2020
June 27,
2021
June 28,
2020
Revenues
Nonreportable segments$34 $39 $97 $106 
Unallocated revenues (Note 2)54 — 54 — 
$88 $39 $151 $106 
EBT
Unallocated revenues (Note 2)$54 $— $54 $— 
Unallocated cost of revenues(73)(87)(220)(262)
Unallocated research and development expenses(505)(271)(1,325)(746)
Unallocated selling, general and administrative expenses(125)(103)(418)(275)
Unallocated other income (Note 2)— — — 23 
Unallocated interest expense(138)(142)(420)(434)
Unallocated investment and other income, net55 76 140 129 
Nonreportable segments(15)(7)(47)(47)
$(747)$(534)$(2,236)$(1,612)
v3.21.2
Acquisitions (Tables)
9 Months Ended
Jun. 27, 2021
Business Combinations [Abstract]  
Preliminary allocation of purchase price The preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
Cash$174 
In-process research and development (IPR&D)247 
Goodwill887 
Other assets25 
Total assets1,333 
Liabilities(69)
Net assets acquired$1,264 
v3.21.2
Fair Value Measurements (Tables)
9 Months Ended
Jun. 27, 2021
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 June 27, 2021 (in millions):
Level 1Level 2Level 3Total
Assets    
Cash equivalents$3,147 $3,022 $— $6,169 
Marketable securities:    
Corporate bonds and notes— 5,035 — 5,035 
Equity securities303 — — 303 
Mortgage- and asset-backed securities— 160 — 160 
U.S. Treasury securities and government-related securities— 10 — 10 
Total marketable securities303 5,205 — 5,508 
Derivative instruments— 40 — 40 
Other investments664 — 673 
Total assets measured at fair value$4,114 $8,267 $$12,390 
Liabilities    
Derivative instruments$— $88 $— $88 
Other liabilities664 — — 664 
Total liabilities measured at fair value$664 $88 $— $752 
v3.21.2
Marketable Securities (Tables)
9 Months Ended
Jun. 27, 2021
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
Our marketable securities were comprised as follows (in millions):
CurrentNoncurrent (1)
June 27,
2021
September 27,
2020
June 27,
2021
September 27,
2020
Available-for-sale debt securities:    
Corporate bonds and notes$5,035 $4,049 $— $— 
Mortgage- and asset-backed and auction rate securities160 66 — 35 
U.S. Treasury securities and government-related securities10 10 — — 
Total available-for-sale debt securities5,205 4,125 — 35 
Equity securities
303 352 — — 
 Time deposit (2)— 30 — — 
Total marketable securities$5,508 $4,507 $— $35 
(1) Noncurrent marketable securities were included in other assets.
(2) At September 27, 2020, marketable securities also included a time deposit with an original maturity of greater than 90 days.
Investments Classified by Contractual Maturity Date
The contractual maturities of available-for-sale debt securities were as follows (in millions):
June 27,
2021
Years to Maturity
Less than one year$1,938 
One to five years3,107 
No single maturity date160 
Total$5,205 
v3.21.2
Composition of Certain Financial Statement Items Inventories (Details) - USD ($)
$ in Millions
Jun. 27, 2021
Sep. 27, 2020
Inventory, Net [Abstract]    
Raw materials $ 231 $ 94
Work-in-process 1,422 1,155
Finished goods 1,480 1,349
Inventories $ 3,133 $ 2,598
v3.21.2
Composition of Certain Financial Statement Items Short-term Debt (Details) - USD ($)
$ in Millions
Jun. 27, 2021
Sep. 27, 2020
Short-term Debt [Abstract]    
Commercial paper $ 500 $ 500
Current portion of long-term debt 1,545 0
Short-term debt $ 2,045 $ 500
v3.21.2
Composition of Certain Financial Statement Items Revolving Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($)
$ in Millions
9 Months Ended
Jun. 27, 2021
Dec. 08, 2020
Line of Credit Facility [Line Items]    
Line of Credit Facility, Fair Value of Amount Outstanding $ 0 $ 0
Line of Credit Facility, Maximum Borrowing Capacity $ 4,500  
Line of Credit Facility, Covenant Compliance we were in compliance with the applicable covenants under the Revolving Credit Facility  
v3.21.2
Composition of Certain Financial Statement Items Interest Rate Swaps (Details) - Interest Rate Swap
$ in Millions
Jun. 27, 2021
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative, Notional Amount $ 2,600
Other Current Liabilities  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative, Fair Value, Net 38
Other Noncurrent Liabilities  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative, Fair Value, Net $ 38
v3.21.2
Composition of Certain Financial Statement Items Revenues (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Revenue        
Revenues $ 8,060 $ 4,893 $ 24,230 $ 15,185
Contract with Customer, Performance Obligation Satisfied in Previous Period 170 141 258 258
Contract with Customer, Liability, Revenue Recognized     437 424
Revenue, Remaining Performance Obligation, Amount 1,100   1,100  
QCT        
Revenue        
Revenues 6,472 3,807 19,287 11,526
Handsets | QCT        
Revenue        
Revenues [1] 3,863 2,457 12,144 7,461
RFFE | QCT        
Revenue        
Revenues [2] 957 447 2,921 1,509
Automotive | QCT        
Revenue        
Revenues [3] 253 138 705 456
IoT | QCT        
Revenue        
Revenues [4] 1,399 $ 765 3,517 $ 2,100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-28        
Revenue        
Revenue, Remaining Performance Obligation, Amount $ 143   $ 143  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 3 months   3 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-27        
Revenue        
Revenue, Remaining Performance Obligation, Amount $ 567   $ 567  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year   1 year  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-26        
Revenue        
Revenue, Remaining Performance Obligation, Amount $ 274   $ 274  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year   1 year  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-09-25        
Revenue        
Revenue, Remaining Performance Obligation, Amount $ 88   $ 88  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year   1 year  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-30        
Revenue        
Revenue, Remaining Performance Obligation, Amount $ 31   $ 31  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year   1 year  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-29        
Revenue        
Revenue, Remaining Performance Obligation, Amount $ 2   $ 2  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year   1 year  
[1] Includes revenues from products sold for use in mobile handsets, excluding RFFE (radio frequency front-end) components.
[2] Includes all revenues from sales of 4G, 5G sub-6 and 5G millimeter wave RFFE products (a substantial portion of which are sold for use in handsets) and excludes radio frequency transceiver components.
[3] Includes revenues from products sold for use in automobiles, including telematics, connectivity and infotainment (also known as digital cockpit).
[4] Primarily includes products sold for use in the following industry segments and applications: consumer (including computing, voice and music and XR), industrial (including handhelds, retail, transportation and logistics, and utilities) and edge networking (including mobile broadband and wireless access points).
v3.21.2
Composition of Certain Financial Statement Items Concentrations (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Sep. 27, 2020
Customer/licensee (v) | Sales | Customer Concentration Risk          
Concentration Risk [Line Items]          
Concentration Risk, Percentage 16.00%   22.00%    
Customer/licensee (w) | Sales | Customer Concentration Risk          
Concentration Risk [Line Items]          
Concentration Risk, Percentage 16.00% 14.00% 14.00% 15.00%  
Customer/licensee (x) | Sales | Customer Concentration Risk          
Concentration Risk [Line Items]          
Concentration Risk, Percentage 13.00% 17.00% 14.00% 20.00%  
Customer/licensee (y) | Sales | Customer Concentration Risk          
Concentration Risk [Line Items]          
Concentration Risk, Percentage 10.00% 11.00% 10.00% 10.00%  
Customer/ licensee (z) | Sales | Customer Concentration Risk          
Concentration Risk [Line Items]          
Concentration Risk, Percentage   10.00%      
Huawei          
Concentration Risk [Line Items]          
Accounts Receivable, after Allowance for Credit Loss, Current         $ 1,300
v3.21.2
Composition of Certain Financial Statement Items Other Income, Costs and Expenses (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 28, 2020
Jun. 28, 2020
Text Block [Abstract]    
Gain (Loss) Related to Litigation Settlement $ 23 $ 23
v3.21.2
Composition of Certain Financial Statement Items Investment and Other Income (Expense), Net (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Investment Income, Net [Abstract]        
Interest and dividend income $ 21 $ 30 $ 63 $ 135
Net gains on marketable securities 53 117 86 183
Net gains on other investments 97 48 307 84
Net gains on deferred compensation plan assets 38 57 115 16
Impairment losses on other investments (7) (12) (24) (349)
Net gains (losses) on derivative investments 0 1 (7) 2
Equity in net earnings (losses) of investees 1 (6) 12 (21)
Net losses on foreign currency transactions (3) (6) (29) (4)
Investment and other income, net $ 200 $ 229 $ 523 $ 46
v3.21.2
Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Sep. 26, 2021
Sep. 27, 2020
Income Taxes [Line Items]            
Effective income tax rate (benefit) 10.00% 3.00%        
Income Tax Expense (Benefit) $ 230 $ 23 $ 744 $ 175    
Unrecognized tax benefits 2,000   $ 2,000     $ 1,900
Internal Revenue Service (IRS)            
Income Taxes [Line Items]            
Income Tax Expense (Benefit) $ 64          
Forecast            
Income Taxes [Line Items]            
Effective income tax rate (benefit)         11.00%  
Forecast | FDII Effective Tax Rate            
Income Taxes [Line Items]            
Effective income tax rate (benefit)         13.00%  
v3.21.2
Capital Stock Share Repurchase Program (Details) - USD ($)
shares in Millions, $ in Millions
9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jul. 26, 2018
$30B stock repurchase program announced July 26, 2018      
Equity, Class of Treasury Stock [Line Items]      
Authorized amount     $ 30,000
Remaining authorized amount $ 2,000    
Open Market Repurchases      
Equity, Class of Treasury Stock [Line Items]      
Stock repurchases and retired during the period, shares 18 31  
Stock repurchased and retired during period, value $ 2,600 $ 2,500  
v3.21.2
Capital Stock Dividends (Details) - $ / shares
3 Months Ended 9 Months Ended
Sep. 23, 2021
Sep. 02, 2021
Jul. 14, 2021
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Subsequent Event [Line Items]              
Dividends per share announced       $ 0.68 $ 0.65 $ 1.98 $ 1.89
Subsequent Event              
Subsequent Event [Line Items]              
Dividends Payable, Date Declared     Jul. 14, 2021        
Dividends per share announced     $ 0.68        
Dividends Payable, Date to be Paid Sep. 23, 2021            
Dividends Payable, Date of Record   Sep. 02, 2021          
v3.21.2
Capital Stock Earnings per Common Share (Details) - shares
shares in Millions
3 Months Ended 9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Earnings Per Share [Abstract]        
Dilutive common share equivalents included in diluted shares 16 12 19 13
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 0 3 0 1
v3.21.2
Commitments and Contingencies Legal and Regulatory Proceedings (Details)
€ in Millions, $ in Millions, ₩ in Billions
3 Months Ended
Jul. 18, 2019
EUR (€)
Jan. 24, 2018
EUR (€)
Mar. 30, 2017
KRW (₩)
Mar. 30, 2017
USD ($)
Jun. 30, 2019
USD ($)
Dec. 24, 2017
USD ($)
Jun. 27, 2021
USD ($)
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%
Accrual for EC fine - other current liabilities             $ 296
Icera Complaint to EC | Euro Member Countries, Euro              
Loss Contingencies [Line Items]              
Loss contingency, loss in period | € € 242            
EC              
Loss Contingencies [Line Items]              
Loss contingency, loss in period           $ 1,200  
Per annum interest rate for outstanding fines             1.50%
Accrual for EC fine - other current liabilities             $ 1,200
EC | Euro Member Countries, Euro              
Loss Contingencies [Line Items]              
Loss contingency, loss in period | €   € 997          
v3.21.2
Commitment and Contingencies Long-term Capacity Commitments (Details)
$ in Millions
Jun. 27, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Purchase Commitment, Remaining Minimum Amount Committed $ 900
v3.21.2
Segment Information (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 27, 2021
Jun. 28, 2020
Jun. 27, 2021
Jun. 28, 2020
Segment Reporting Information [Line Items]        
Revenues $ 8,060 $ 4,893 $ 24,230 $ 15,185
EBT 2,257 868 6,989 2,413
Cost of revenues (3,404) (2,080) (10,325) (6,489)
Research and development expenses (1,864) (1,520) (5,297) (4,393)
Selling, general and administrative expenses (597) (511) (1,721) (1,523)
Other income 0 0 0 23
Interest expense (138) (143) (421) (436)
Investment and other income, net 200 229 523 46
Licensing Agreements        
Segment Reporting Information [Line Items]        
Revenues 54 0 54 0
Reconciling Items        
Segment Reporting Information [Line Items]        
Revenues 88 39 151 106
EBT (747) (534) (2,236) (1,612)
Cost of revenues (73) (87) (220) (262)
Research and development expenses (505) (271) (1,325) (746)
Selling, general and administrative expenses (125) (103) (418) (275)
Other income 0 0 0 23
Interest expense (138) (142) (420) (434)
Investment and other income, net 55 76 140 129
QCT        
Segment Reporting Information [Line Items]        
Revenues 6,472 3,807 19,287 11,526
EBT 1,795 603 5,299 1,748
QTL        
Segment Reporting Information [Line Items]        
Revenues 1,489 1,044 4,762 3,520
EBT 1,053 646 3,514 2,335
QSI        
Segment Reporting Information [Line Items]        
Revenues 11 3 30 33
EBT 156 153 412 (58)
Other Segments        
Segment Reporting Information [Line Items]        
Revenues 34 39 97 106
Other Segments | Reconciling Items        
Segment Reporting Information [Line Items]        
EBT $ (15) $ (7) $ (47) $ (47)
v3.21.2
Acquisitions (Details) - USD ($)
$ in Millions
Mar. 16, 2021
Jun. 27, 2021
Sep. 27, 2020
Business Acquisition [Line Items]      
Goodwill   $ 7,229 $ 6,323
NUVIA      
Business Acquisition [Line Items]      
Payments to Acquire Businesses, Net of Cash Acquired $ 1,100    
Fair value of stock awards assumed or replaced in connection with acquisition 258    
Value of stock awards assumed in acquisition attributable to pre-acquisition service $ 10    
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period 4 years    
Cash $ 174    
In-process research and development (IPR&D) 247    
Goodwill 887    
Other assets 25    
Total assets 1,333    
Liabilities (69)    
Net assets acquired $ 1,264    
Weighted average amortization period (years) 7 years    
v3.21.2
Fair Value Measurements Fair Value Hierarchy (Details) - Fair Value, Recurring
$ in Millions
Jun. 27, 2021
USD ($)
Assets  
Cash equivalents $ 6,169
Marketable securities 5,508
Derivative instruments 40
Other investments 673
Total assets measured at fair value 12,390
Liabilities  
Derivative instruments 88
Other liabilities 664
Total liabilities measured at fair value 752
Level 1  
Assets  
Cash equivalents 3,147
Marketable securities 303
Derivative instruments 0
Other investments 664
Total assets measured at fair value 4,114
Liabilities  
Derivative instruments 0
Other liabilities 664
Total liabilities measured at fair value 664
Level 2  
Assets  
Cash equivalents 3,022
Marketable securities 5,205
Derivative instruments 40
Other investments 0
Total assets measured at fair value 8,267
Liabilities  
Derivative instruments 88
Other liabilities 0
Total liabilities measured at fair value 88
Level 3  
Assets  
Cash equivalents 0
Marketable securities 0
Derivative instruments 0
Other investments 9
Total assets measured at fair value 9
Liabilities  
Derivative instruments 0
Other liabilities 0
Total liabilities measured at fair value 0
Corporate bonds and notes  
Assets  
Marketable securities 5,035
Corporate bonds and notes | Level 1  
Assets  
Marketable securities 0
Corporate bonds and notes | Level 2  
Assets  
Marketable securities 5,035
Corporate bonds and notes | Level 3  
Assets  
Marketable securities 0
Equity securities  
Assets  
Marketable securities 303
Equity securities | Level 1  
Assets  
Marketable securities 303
Equity securities | Level 2  
Assets  
Marketable securities 0
Equity securities | Level 3  
Assets  
Marketable securities 0
Mortgage- and asset-backed securities  
Assets  
Marketable securities 160
Mortgage- and asset-backed securities | Level 1  
Assets  
Marketable securities 0
Mortgage- and asset-backed securities | Level 2  
Assets  
Marketable securities 160
Mortgage- and asset-backed securities | Level 3  
Assets  
Marketable securities 0
US Treasury and Government-Related Securities  
Assets  
Marketable securities 10
US Treasury and Government-Related Securities | Level 1  
Assets  
Marketable securities 0
US Treasury and Government-Related Securities | Level 2  
Assets  
Marketable securities 10
US Treasury and Government-Related Securities | Level 3  
Assets  
Marketable securities $ 0
v3.21.2
Fair Value Measurements Long-term Debt (Details) - USD ($)
$ in Billions
Jun. 27, 2021
Sep. 27, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]    
Long-term Debt, Fair Value $ 17.0 $ 17.5
v3.21.2
Marketable Securities (Details) - USD ($)
$ in Millions
Jun. 27, 2021
Sep. 27, 2020
Marketable Securities [Line Items]    
Available-for-sale Securities, Current $ 5,205 $ 4,125
Marketable securities 5,508 4,507
Available-for-sale Securities, Noncurrent 0 35
Marketable Securities, Noncurrent 0 35
Less than one year 1,938  
One to five years 3,107  
No single maturity date 160  
Debt Securities, Available-for-sale 5,205  
Corporate bonds and notes    
Marketable Securities [Line Items]    
Available-for-sale Securities, Current 5,035 4,049
Available-for-sale Securities, Noncurrent 0 0
Mortgage- and asset-backed and auction rate securities    
Marketable Securities [Line Items]    
Available-for-sale Securities, Current 160 66
Available-for-sale Securities, Noncurrent 0 35
US Treasury and Government-Related Securities    
Marketable Securities [Line Items]    
Available-for-sale Securities, Current 10 10
Available-for-sale Securities, Noncurrent 0 0
Equity securities    
Marketable Securities [Line Items]    
Marketable securities 303 352
Marketable Securities, Noncurrent 0 0
Bank Time Deposits    
Marketable Securities [Line Items]    
Marketable securities 0 30
Marketable Securities, Noncurrent $ 0 $ 0