QUALCOMM INC/DE, 10-Q filed on 4/19/2017
Quarterly Report
v3.7.0.1
Document and Entity Information Document - shares
 6 Months Ended
Mar. 26, 2017
Apr. 17, 2017
Document Information [Line Items]    
Entity Registrant Name QUALCOMM INC/DE  
Entity Registrant State of Incorporation Delaware  
Entity Address 5775 Morehouse Dr.  
Entity City San Diego  
Entity State California  
Entity Zip Code 92121-1714  
Entity Phone Number (858) 587-1121  
Entity Employer ID 953685934  
Entity Central Index Key 0000804328  
Current Fiscal Year End Date --09-24  
Entity Filer Category Large Accelerated Filer  
Document Type 10-Q  
Document Period End Date Mar. 26, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   1,477,436,517
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 26, 2017
Sep. 25, 2016
Current assets:    
Cash and cash equivalents $ 7,124 $ 5,946
Marketable securities 2,858 12,702
Accounts receivable, net 4,201 2,219
Inventories 2,066 1,556
Other current assets 659 558
Total current assets 16,908 22,981
Marketable securities 18,876 13,702
Deferred tax assets 2,458 2,030
Property, plant and equipment, net 3,065 2,306
Goodwill 6,497 5,679
Other intangible assets, net 4,084 3,500
Other assets 4,191 2,161
Total assets 56,079 52,359
Current liabilities:    
Trade accounts payable 1,289 1,858
Payroll and other benefits related liabilities 895 934
Unearned revenues 513 509
Short-term debt 1,998 1,749
Other current liabilities 5,450 2,261
Total current liabilities 10,145 7,311
Unearned revenues 2,220 2,377
Long-term debt 9,939 10,008
Other liabilities 2,441 895
Total liabilities 24,745 20,591
Commitments and contingencies (Note 6)
Qualcomm stockholders’ equity:    
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding 0 0
Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,477 and 1,476 shares issued and outstanding, respectively 346 414
Retained earnings 30,768 30,936
Accumulated other comprehensive income 230 428
Total Qualcomm stockholders' equity 31,344 31,778
Noncontrolling interests (10) (10)
Total stockholders' equity 31,334 31,768
Total liabilities and stockholders' equity $ 56,079 $ 52,359
v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS - $ / shares
Mar. 26, 2017
Sep. 25, 2016
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 8,000,000 8,000,000
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 6,000,000,000 6,000,000,000
Common stock, shares issued 1,477,000,000 1,476,000,000
Common stock, shares outstanding 1,477,000,000 1,476,000,000
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Revenues:        
Equipment and services $ 3,689 $ 3,349 $ 7,828 $ 7,436
Licensing 1,327 2,202 3,187 3,890
Total revenues 5,016 5,551 11,015 11,326
Costs and expenses:        
Cost of revenues 2,208 2,141 4,651 4,675
Research and development 1,386 1,301 2,697 2,653
Selling, general and administrative 615 619 1,206 1,198
Other (Note 2) 78 75 954 (299)
Total costs and expenses 4,287 4,136 9,508 8,227
Operating income 729 1,415 1,507 3,099
Interest expense (107) (72) (197) (145)
Investment income, net (Note 2) 235 127 417 226
Income before income taxes 857 1,470 1,727 3,180
Income tax expense (108) (306) (296) (520)
Net income 749 1,164 1,431 2,660
Net loss attributable to noncontrolling interests 0 0   2
Net income attributable to Qualcomm $ 749 $ 1,164 $ 1,431 $ 2,662
Basic earnings per share attributable to Qualcomm $ 0.51 $ 0.78 $ 0.97 $ 1.78
Diluted earnings per share attributable to Qualcomm $ 0.50 $ 0.78 $ 0.96 $ 1.77
Shares used in per share calculations:        
Basic 1,477 1,487 1,478 1,495
Diluted 1,489 1,498 1,492 1,507
Dividends per share announced $ 0.53 $ 0.48 $ 1.06 $ 0.96
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Net income $ 749 $ 1,164 $ 1,431 $ 2,660
Other comprehensive income (loss), net of income taxes:        
Foreign currency translation gains (losses) 16 3 (10) (11)
Reclassification of foreign currency translation losses included in net income 0 5 0 6
Noncredit other-than-temporary impairment losses related to certain available-for-sale debt securities and subsequent changes in fair value 0 (24) 6 (51)
Reclassification of net other-than-temporary losses on available-for-sale securities included in net income 2 54 81 101
Net unrealized gains (losses) on other available-for-sale securities 69 67 (141) (41)
Reclassification of net realized gains on available-for-sale securities included in net income (37) (15) (129) (40)
Net unrealized losses on derivative instruments (5) 0 (3) 0
Reclassification of net realized (gains) losses on derivative instruments (2) 1 (2) 1
Total other comprehensive income (loss) 43 91 (198) (35)
Total comprehensive income 792 1,255 1,233 2,625
Comprehensive loss attributable to noncontrolling interests 0 0 0 2
Comprehensive income attributable to Qualcomm $ 792 $ 1,255 $ 1,233 $ 2,627
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Operating Activities:    
Net income $ 1,431 $ 2,660
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 671 736
Indefinite and long-lived asset impairment charges 34 47
Income tax provision less than income tax payments (230) (189)
Gain on sale of wireless spectrum 0 (380)
Non-cash portion of share-based compensation expense 485 494
Incremental tax benefits from share-based compensation (37) (2)
Net realized gains on marketable securities and other investments (236) (73)
Impairment losses on marketable securities and other investments 148 106
Other items, net 97 47
Changes in assets and liabilities:    
Accounts receivable, net (1,691) 254
Inventories (245) 79
Other assets 107 121
Trade accounts payable (677) 137
Payroll, benefits and other liabilities 2,417 (610)
Unearned revenues (80) 49
Net cash provided by operating activities 2,194 3,476
Investing Activities:    
Capital expenditures (251) (253)
Purchases of available-for-sale marketable securities (8,802) (7,775)
Proceeds from sales and maturities of available-for-sale marketable securities 13,146 5,806
Purchases of trading securities 0 (177)
Proceeds from sales and maturities of trading securities 0 756
Proceeds from sales of other marketable securities 0 450
Deposit of investments designated as collateral (2,000) 0
Acquisitions and other investments, net of cash acquired (1,382) (623)
Proceeds from sale of wireless spectrum 0 232
Other items, net 49 149
Net cash provided (used) by investing activities 760 (1,435)
Financing Activities:    
Proceeds from short-term debt 5,113 4,328
Repayment of short-term debt (4,864) (3,380)
Proceeds from issuance of common stock 290 271
Repurchases and retirements of common stock (727) (3,598)
Dividends paid (1,567) (1,427)
Incremental tax benefits from share-based compensation 37 2
Other items, net (52) (18)
Net cash used by financing activities (1,770) (3,822)
Effect of exchange rate changes on cash and cash equivalents (6) (4)
Net increase (decrease) in cash and cash equivalents 1,178 (1,785)
Cash and cash equivalents at beginning of period 5,946 7,560
Cash and cash equivalents at end of period $ 7,124 $ 5,775
v3.7.0.1
Basis of Presentation (Notes)
 6 Months Ended
Mar. 26, 2017
Basis of Presentation [Abstract]  
Basis of Presentation
Basis of Presentation
Financial Statement Preparation. These condensed consolidated financial statements have been prepared by QUALCOMM Incorporated (collectively with its subsidiaries, the Company or Qualcomm) 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 the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2016. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three-month and six-month periods ended March 26, 2017 and March 27, 2016 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 the Company’s condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.
Earnings Per Common Share. Basic earnings per common share are computed by dividing net income attributable to Qualcomm by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share are computed by dividing net income attributable to Qualcomm by the combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. The dilutive common share equivalents, calculated using the treasury stock method, in the three and six months ended March 26, 2017 were 11,284,000 and 14,156,000, respectively, and in the three and six months ended March 27, 2016 were 10,734,000 and 12,582,000, respectively. Shares of common stock equivalents outstanding that were not included in the computation of diluted earnings per common share, because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period, were 10,823,000 and 5,443,000 in the three and six months ended March 26, 2017, respectively, and 6,899,000 and 4,036,000 in the three and six months ended March 27, 2016, respectively.
Share-Based Compensation. Total share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Cost of equipment and services revenues
$
10

 
$
10

 
$
20

 
$
20

Research and development
155

 
161

 
308

 
326

Selling, general and administrative
81

 
76

 
157

 
148

Share-based compensation expense before income taxes
246

 
247

 
485

 
494

Related income tax benefit
(36
)
 
(27
)
 
(84
)
 
(87
)
 
$
210

 
$
220

 
$
401

 
$
407


At March 26, 2017, total unrecognized compensation expense related to nonvested restricted stock units granted prior to that date was $1.3 billion, which is expected to be recognized over a weighted-average period of 1.9 years.
Recent Accounting Pronouncements. In May 2014, the FASB issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The new guidance will be effective for the Company starting in the first quarter of fiscal 2019. Adoption one year early is permitted. Two methods of adoption are permitted: (a) full retrospective adoption, meaning the standard is applied to all periods presented or (b) modified retrospective adoption, meaning the cumulative effect of applying the new guidance is recognized as an adjustment to the opening retained earnings balance. The Company does not intend to adopt the new guidance early. The Company currently expects the adoption of this new guidance to most significantly impact its licensing business. Specifically, the Company expects a change in the timing of revenues recognized from sales-based royalties. The Company currently recognizes sales-based royalties as revenues in the period in which such royalties are reported by licensees, which is after the conclusion of the quarter in which the licensees’ sales occur. Under the new guidance, the Company will be required to estimate and recognize sales-based royalties in the period in which the associated sales occur, resulting in an acceleration of revenue recognition compared to the current method. Upon adoption of the new guidance, licenses to use portions of the Company’s intellectual property portfolio will be considered one performance obligation, and license fees will be recognized as revenues on a straight-line basis over the term of the license agreement. The Company currently accounts for customer incentive arrangements in its licensing and chip businesses, including volume-related and other pricing rebates or cost reimbursements for marketing and other activities involving certain of the Company’s products and technologies, based on the maximum potential liability. Under the new guidance, the Company expects to estimate the amount of the customer incentive. The Company does not otherwise expect the adoption of the new guidance will have a material impact on its businesses and is in the process of determining the adoption method.
In January 2016, the FASB issued new guidance on classifying and measuring financial instruments, which requires that (i) all equity investments, other than equity-method investments, in unconsolidated entities generally be measured at fair value through earnings and (ii) when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk be recognized separately in other comprehensive income. Additionally, it changes the disclosure requirements for financial instruments. The new guidance will be effective for the Company starting in the first quarter of fiscal 2019. Early adoption is permitted for certain provisions. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt certain provisions early.
In February 2016, the FASB issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of fiscal 2020. Early adoption is permitted. The Company does not intend to adopt the new guidance early and is in the process of determining the effects the adoption will have on its consolidated financial statements.
In March 2016, the FASB issued new guidance that changes the accounting for share-based payments. Under the new guidance, excess tax benefits associated with share-based payment awards will be recognized through earnings when the awards vest or settle, rather than in stockholders’ equity. In addition, it will increase the number of shares an employer can withhold to cover income taxes on share-based payment awards and still qualify for the exemption to liability classification. The new guidance will be effective for the Company starting in the first quarter of fiscal 2018. Early adoption is permitted in any annual or interim period. The Company does not intend to adopt the new guidance early and is in the process of determining the effects the adoption will have on its consolidated financial statements.
In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new guidance will be effective for the Company starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt the new guidance early.
In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments on the statement of cash flows. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019 on a retrospective basis, and early adoption is permitted. The Company does not intend to adopt the new guidance early and is in the process of determining the effects the adoption will have on its consolidated financial statements.
In October 2016, the FASB issued new guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The new guidance will be effective for the Company starting in the first quarter of fiscal 2019 on a modified retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements as well as whether to adopt the new guidance early.
v3.7.0.1
Composition of Certain Financial Statement Items (Notes)
 6 Months Ended
Mar. 26, 2017
Balance Sheet Related Disclosures [Abstract]  
Composition of Certain Financial Statement Items
Composition of Certain Financial Statement Items
Accounts Receivable (in millions)
 
 
 
 
March 26,
2017
 
September 25,
2016
Trade, net of allowances for doubtful accounts of $1 and $1, respectively
$
4,177

 
$
2,194

Long-term contracts
12

 
20

Other
12

 
5

 
$
4,201

 
$
2,219


Approximately half of the increase in accounts receivable was due to the underpayment of royalties reported by and deemed collectible from certain of the Company’s licensees that manufacture products for Apple. This same amount is recorded in customer-related liabilities for Apple, since the Company does not have the contractual right to offset these amounts. The remaining increase in accounts receivable resulted from the timing of the collection of payments from certain of the Company’s other licensees, the acquisition of receivables in connection with the RF360 Holdings joint venture (Note 8) and the timing of integrated circuit shipments.
Inventories (in millions)
 
 
 
 
March 26,
2017
 
September 25,
2016
Raw materials
$
73

 
$
1

Work-in-process
1,018

 
847

Finished goods
975

 
708

 
$
2,066

 
$
1,556


Other Current Liabilities (in millions)
 
 
 
 
March 26,
2017
 
September 25,
2016
Customer incentives and other customer-related liabilities
$
2,665

 
$
1,710

Accrual for BlackBerry arbitration decision (Note 6)
974

 
—

Accrual for KFTC decision (Note 6)
921

 
—

Other
890

 
551

 
$
5,450

 
$
2,261


Other Income, Costs and Expenses. Other expenses in the three months ended March 26, 2017 consisted of $53 million in foreign currency losses related to the fine imposed by the Korea Fair Trade Commission (KFTC), which was accrued in the first quarter of fiscal 2017 (Note 6), and $25 million in restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan, which was substantially implemented in fiscal 2016. Other expenses in the six months ended March 26, 2017 consisted of a $921 million charge related to the KFTC fine, including related foreign currency losses, and $33 million in restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan.
Other expenses in the three months ended March 27, 2016 consisted of restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan. Other income in the six months ended March 27, 2016 included a gain of $380 million on the sale of wireless spectrum in the United Kingdom that was held by the QSI (Qualcomm Strategic Initiative) segment in the first quarter of fiscal 2016 for $232 million in cash and $275 million in deferred payments due in 2020 to 2023, which were recorded at their present values in other assets. Other income in the six months ended March 27, 2016 also included $129 million in restructuring and restructuring-related charges, which were partially offset by a $48 million gain on the sale of the Company’s business that provided augmented reality applications, both of which related to the Company’s Strategic Realignment Plan.
Investment Income, Net (in millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Interest and dividend income
$
153

 
$
158

 
$
320

 
$
295

Net realized gains on marketable securities
67

 
1

 
206

 
43

Net realized gains on other investments
21

 
23

 
30

 
30

Impairment losses on marketable securities
(3
)
 
(41
)
 
(125
)
 
(90
)
Impairment losses on other investments
(2
)
 
(2
)
 
(23
)
 
(16
)
Equity in net losses of investees
(14
)
 
(11
)
 
(11
)
 
(31
)
Net gains (losses) on derivative investments
13

 
(1
)
 
20

 
(5
)
 
$
235

 
$
127

 
$
417

 
$
226
v3.7.0.1
Income Taxes (Notes)
 6 Months Ended
Mar. 26, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company estimates its annual effective income tax rate to be approximately 17% for fiscal 2017, which is equal to its 17% effective income tax rate for fiscal 2016. Tax benefits from foreign income taxed at rates lower than rates in the United States are expected to be approximately 21% in fiscal 2017, compared to 16% in fiscal 2016. In the six months ended March 26, 2017, the Company recorded a charge of $921 million related to the KFTC fine (Note 6), which is not deductible for tax purposes and is attributable to both the United States and a foreign jurisdiction. The estimated annual effective tax rate of 17% for fiscal 2017 also reflects the increase in the Company’s Singapore tax rate as a result of the expiration of its tax exemption in March 2017, which is partially offset by tax benefits resulting from the increase in the Singapore tax rate that will be in effect when certain deferred tax assets are scheduled to reverse. The annual effective tax rate of 17% for fiscal 2016 reflected a $101 million tax benefit recorded discretely in the third quarter of fiscal 2016 resulting from a worthless stock deduction on a domestic subsidiary of one of the Company’s former display businesses and a $79 million benefit recorded discretely in the first quarter of fiscal 2016 related to fiscal 2015 resulting from the retroactive and permanent reinstatement of the United States federal research and development tax credit.
The effective tax rate of 13% for the second quarter of fiscal 2017 was less than the estimated annual effective tax rate of 17% primarily resulting from the reduction to the Company’s United States revenues related to the BlackBerry arbitration decision (Note 6).
Unrecognized tax benefits were $279 million and $271 million at March 26, 2017 and September 25, 2016, respectively. The Company believes that it is reasonably possible that the total amounts of unrecognized tax benefits at March 26, 2017 may increase or decrease in the next 12 months.
v3.7.0.1
Stockholders' Equity (Notes)
 6 Months Ended
Mar. 26, 2017
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity
Stockholders’ Equity
Changes in stockholders’ equity in the six months ended March 26, 2017 were as follows (in millions):
 
Qualcomm Stockholders’ Equity
 
Noncontrolling Interests
 
Total Stockholders’ Equity
Balance at September 25, 2016
$
31,778

 
$
(10
)
 
$
31,768

Net income
1,431

 
—

 
1,431

Other comprehensive loss
(198
)
 
—

 
(198
)
Common stock issued under employee benefit plans and related tax benefits
320

 
—

 
320

Share-based compensation
515

 
—

 
515

Tax withholdings related to vesting of share-based payments
(175
)
 
—

 
(175
)
Dividends
(1,599
)
 
—

 
(1,599
)
Stock repurchases
(727
)
 
—

 
(727
)
Other
(1
)
 
—

 
(1
)
Balance at March 26, 2017
$
31,344

 
$
(10
)
 
$
31,334


Accumulated Other Comprehensive Income. Changes in the components of accumulated other comprehensive income, net of income taxes, in Qualcomm stockholders’ equity in the six months ended March 26, 2017 were as follows (in millions):
 
Foreign Currency Translation Adjustment
 
Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities
 
Net Unrealized Gain (Loss) on Other Available-for-Sale Securities
 
Net Unrealized Gain (Loss) on Derivative Instruments
 
Total Accumulated Other Comprehensive Income
Balance at September 25, 2016
$
(161
)
 
$
6

 
$
532

 
$
51

 
$
428

Other comprehensive (loss) income before reclassifications
(10
)
 
6

 
(141
)
 
(3
)
 
(148
)
Reclassifications from accumulated other comprehensive income (loss)
—

 
11

 
(59
)
 
(2
)
 
(50
)
Other comprehensive (loss) income
(10
)
 
17

 
(200
)
 
(5
)
 
(198
)
Balance at March 26, 2017
$
(171
)
 
$
23

 
$
332

 
$
46

 
$
230


Reclassifications from accumulated other comprehensive income related to available-for-sale securities of $35 million and $48 million in the three and six months ended March 26, 2017, respectively, and $11 million and $18 million in the three and six months ended March 27, 2016, respectively, were recorded in investment income, net (Note 2). Reclassifications from accumulated other comprehensive income related to foreign currency translation losses were negligible in the three and six months ended March 27, 2016 and were recorded in selling, general and administrative expenses and other operating expenses.
Stock Repurchase Program. On March 9, 2015, the Company announced a stock repurchase program authorizing it to repurchase up to $15 billion of the Company’s common stock. The stock repurchase program has no expiration date. In the six months ended March 26, 2017 and March 27, 2016, the Company repurchased and retired 11,488,000 and 68,335,000 shares for $727 million and $3.6 billion, respectively, before commissions. At March 26, 2017, $2.3 billion remained authorized for repurchase under the Company’s stock repurchase program.
Dividends. On March 7, 2017, the Company announced a 7.5% increase in its quarterly cash dividend from $0.53 to $0.57 per share of common stock, which is effective for dividends payable after March 22, 2017. On April 12, 2017, the Company announced a cash dividend of $0.57 per share on the Company’s common stock, payable on June 21, 2017 to stockholders of record as of the close of business on May 31, 2017. In the six months ended March 26, 2017 and March 27, 2016, dividends charged to retained earnings were as follows (in millions, except per share data):
 
2017
 
2016
 
Per Share
 
Total
 
Per Share
 
Total
First quarter
$
0.53

 
$
801

 
$
0.48

 
$
730

Second quarter
0.53

 
798

 
0.48

 
726

 
$
1.06

 
$
1,599

 
$
0.96

 
$
1,456
v3.7.0.1
Debt (Notes)
 6 Months Ended
Mar. 26, 2017
Debt Disclosure [Abstract]  
Debt
Debt
Revolving Credit Facility. In November 2016, the Company amended and restated its existing Revolving Credit Facility that provides for unsecured revolving facility loans, swing line loans and letters of credit (Amended and Restated Revolving Credit Facility) to increase the aggregate amount available to $5.0 billion, of which $530 million and $4.47 billion will expire in February 2020 and November 2021, respectively. The Company had not previously borrowed any funds under the existing Revolving Credit Facility. Proceeds from the Amended and Restated Revolving Credit Facility are expected to be used for general corporate purposes. Loans under the Amended and Restated Revolving Credit Facility will bear interest, at the option of the Company, at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the Amended and Restated Revolving Credit Facility) or the Base Rate (determined in accordance with the Amended and Restated Revolving Credit Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate will be 0.70% and 0.00% per annum, respectively. The Amended and Restated Revolving Credit Facility has a facility fee, which initially accrues at a rate of 0.05% per annum. At March 26, 2017, the Company had not borrowed any funds under the Amended and Restated Revolving Credit Facility.
Commercial Paper Program. The Company has an unsecured commercial paper program, which provides for the issuance of up to $5.0 billion of commercial paper. Net proceeds from this program are used for general corporate purposes. Maturities of commercial paper can range from 1 day to up to 397 days. At March 26, 2017 and September 25, 2016, the Company had $2.0 billion and $1.7 billion, respectively, of outstanding commercial paper recorded as short-term debt with weighted-average interest rates of 0.82% and 0.52%, respectively, which included fees paid to the commercial paper dealers and weighted-average remaining days to maturity of 39 days and 36 days, respectively. The carrying value of the outstanding commercial paper approximated its estimated fair value at March 26, 2017 and September 25, 2016.
Bridge Loan Facility. In October 2016, the Company entered into commitment letters pursuant to which the Company received commitments for senior unsecured bridge facility loans in an aggregate principal amount up to $13.6 billion (Bridge Loan Facility). Subsequently, the commitments available under the Bridge Loan Facility were reduced to $7.1 billion upon the Company entering into a $4.0 billion Term Loan Facility, described below, and the sale of certain assets by NXP Semiconductors N.V. for estimated net cash proceeds of $2.5 billion in February 2017. Proceeds from the Bridge Loan Facility, if drawn, will be used to finance, in part, the proposed acquisition of NXP by Qualcomm River Holdings B.V., a wholly owned subsidiary of the Company (Qualcomm River Holdings) (Note 8). Loans under the Bridge Loan Facility will only be available on the closing date of the proposed acquisition of NXP. The commitments available under the Bridge Loan Facility will be reduced on a dollar-for-dollar basis by the net cash proceeds of certain issuances of debt or equity securities and the incurrence of certain indebtedness by the Company, and the sales of certain assets by the Company. Commitments under the Bridge Loan Facility will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the Bridge Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP and (iii) October 27, 2017 (unless such date is extended in accordance with the NXP purchase agreement).
Loans drawn under the Bridge Loan Facility will mature 364 days after the date on which the Bridge Loan Facility is funded and will bear interest at either the reserve-adjusted Eurodollar Rate (determined in accordance with the Bridge Loan Facility) or the Base Rate (determined in accordance with the Bridge Loan Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurodollar Rate and the Base Rate will be 0.75% and 0.00% per annum, respectively, and will adjust 90 days, 180 days and 270 days after the Bridge Loan Facility is funded to 1.00% and 0.00%, respectively, 1.25% and 0.25%, respectively, and 1.50% and 0.50%, respectively. Loans outstanding under the Bridge Loan Facility will also incur duration fees equal to 0.50%, 0.75% and 1.00% of the outstanding principal amount of Bridge Loan Facility loans on the dates that are 90 days, 180 days and 270 days after the funding date, respectively. The Bridge Loan Facility also has a ticking fee, which initially accrues at a rate of 0.05% per annum commencing on December 26, 2016. At March 26, 2017, no amounts were outstanding under the Bridge Loan Facility.
Term Loan Facility. In November 2016, the Company entered into a Credit Agreement that provides for senior unsecured delayed-draw term facility loans in an aggregate amount of $4.0 billion (Term Loan Facility). Proceeds from the Term Loan Facility, if drawn, will be used to finance the proposed acquisition of NXP. Commitments under the Term Loan Facility will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the Term Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP and (iii) October 27, 2017 (unless such date is extended in accordance with the NXP purchase agreement). Loans under the Term Loan Facility will mature on the third anniversary of the date on which they are funded and will bear interest at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the Term Loan Facility) or the Base Rate (determined in accordance with the Term Loan Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate will be 0.875% and 0.00% per annum, respectively. The Term Loan Facility has a ticking fee, which initially accrues at a rate of 0.05% per annum commencing on December 26, 2016. At March 26, 2017, the Company had not borrowed any funds under the Term Loan Facility.
Long-term Debt. The following table provides a summary of the Company’s long-term debt (in millions except percentages):
 
March 26, 2017
 
September 25, 2016
 
Amount
 
Effective
Rate
 
Amount
 
Effective
Rate
Floating-rate notes due May 18, 2018
$
250

 
1.38%
 
$
250

 
1.14%
Floating-rate notes due May 20, 2020
250

 
1.66%
 
250

 
1.42%
Fixed-rate 1.40% notes due May 18, 2018
1,250

 
1.59%
 
1,250

 
0.93%
Fixed-rate 2.25% notes due May 20, 2020
1,750

 
2.10%
 
1,750

 
1.69%
Fixed-rate 3.00% notes due May 20, 2022
2,000

 
2.58%
 
2,000

 
2.04%
Fixed-rate 3.45% notes due May 20, 2025
2,000

 
3.46%
 
2,000

 
3.46%
Fixed-rate 4.65% notes due May 20, 2035
1,000

 
4.74%
 
1,000

 
4.74%
Fixed-rate 4.80% notes due May 20, 2045
1,500

 
4.71%
 
1,500

 
4.71%
Total principal
10,000

 
 
 
10,000

 
 
Unamortized discount, including debt issuance costs
(53
)
 
 
 
(57
)
 
 
Hedge accounting fair value adjustments
(8
)
 
 
 
65

 
 
Total long-term debt
$
9,939

 
 
 
$
10,008

 
 

The interest rate on the floating rate notes due in 2018 and 2020 for a particular interest period will be a per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.27% and 0.55%, respectively. Interest is payable in arrears quarterly for the floating-rate notes and semi-annually for the fixed-rate notes. The Company may redeem the fixed-rate notes at any time in whole, or from time to time in part, at specified make-whole premiums as defined in the applicable form of note. The Company may not redeem the floating-rate notes prior to maturity. The Company is not subject to any financial covenants under the notes nor any covenants that would prohibit the Company from incurring additional indebtedness ranking equal to the notes, paying dividends, issuing securities or repurchasing securities issued by it or its subsidiaries. At March 26, 2017 and September 25, 2016, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $10.1 billion and $10.6 billion, respectively.
In fiscal 2015, the Company entered into interest rate swaps with an aggregate notional amount of $3.0 billion, which effectively converted all of the fixed-rate notes due in 2018 and approximately 43% and 50% of the fixed-rate notes due in 2020 and 2022, respectively, into floating-rate notes. The net gains and losses on the interest rate swaps, as well as the offsetting gains or losses on the related fixed-rate notes attributable to the hedged risks, are recognized in earnings in interest expense in the current period.
The effective interest rates for the notes include the interest on the notes, amortization of the discount, which includes debt issuance costs, and if applicable, adjustments related to hedging. Cash interest paid related to the Company’s commercial paper program and long-term debt, net of cash received from the related interest rate swaps, was $150 million and $137 million in the six months ended March 26, 2017 and March 27, 2016.
Debt Covenants. The Amended and Restated Revolving Credit Facility, the Bridge Loan Facility and the Term Loan Facility require, and the prior Revolving Credit Facility required, that the Company comply with certain covenants, including one financial covenant to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter. At March 26, 2017 and September 25, 2016, the Company was in compliance with the applicable covenants under each facility outstanding at such time.
v3.7.0.1
Commitments and Contingencies (Notes)
 6 Months Ended
Mar. 26, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Legal Proceedings. ParkerVision, Inc. v. QUALCOMM Incorporated: On May 1, 2014, ParkerVision filed a complaint against the Company in the United States District Court for the Middle District of Florida alleging that certain of the Company’s products infringe certain ParkerVision patents. On August 21, 2014, ParkerVision amended the complaint, now 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 the Company infringes 11 ParkerVision patents and seeks damages and injunctive and other relief. On September 25, 2015, ParkerVision filed a motion with the court to sever some claims against the Company and all other defendants into a separate lawsuit. In addition, on December 3, 2015, ParkerVision dismissed six patents from the lawsuit and granted the Company and all other defendants a covenant not to assert those patents against any existing products. On February 2, 2016, after agreement among the parties, the District Court stayed the remainder of the case pending the resolution of the complaint filed by ParkerVision against the Company and other parties with the United States International Trade Commission (ITC) described below.
On December 14, 2015, ParkerVision filed another complaint against the Company in the United States District Court for the Middle District of Florida alleging patent infringement. Apple Inc., Samsung Electronics Co., LTD., Samsung Electronics America, Inc., Samsung Telecommunications America, LLC, Samsung Semiconductor, Inc., LG Electronics, Inc., LG Electronics U.S.A., Inc. and LG Electronics MobileComm U.S.A., Inc. were also named defendants. The complaint asserts that certain of the Company’s products infringe four additional ParkerVision patents and seeks damages and other relief. On December 15, 2015, ParkerVision filed a complaint with the ITC pursuant to Section 337 of the Tariff Act of 1930 against the same parties asserting the same four patents. The complaint seeks an exclusion order barring the importation of products that use either of two Company transceivers or one Samsung transceiver and a cease and desist order preventing the Company and the other defendants from carrying out commercial activities within the United States related to such products. On January 13, 2016, the Company served its answer to the District Court complaint. On January 15, 2016, the ITC instituted an investigation. The District Court case was stayed on February 12, 2016 pending completion of the ITC investigation. Subsequently, ParkerVision announced that it had reached a settlement with Samsung which dismissed the Samsung entities from the ITC investigation and related District Court case. On February 2, 2017, the ITC granted ParkerVision’s motion to drop all but one patent and one accused product from the ITC investigation. On March 12, 2017, one day before the ITC hearing was scheduled to begin, ParkerVision moved to withdraw its ITC complaint in its entirety. The Company and the other defendants did not oppose the withdrawal of the complaint. The ITC is expected to formally close the investigation in the coming weeks. ParkerVision has asserted in public statements that it plans to proceed with the related District Court case once the stay is lifted.
The Company believes ParkerVision’s claims are without merit.
BlackBerry Limited (BlackBerry) Arbitration: On April 20, 2016, the Company and BlackBerry entered into an agreement to arbitrate BlackBerry’s allegation that it overpaid royalties on certain past sales of subscriber units based on the alleged effect of specific provisions in its license agreement. The arbitration hearing was held during the week of February 27, 2017 by a three-judge panel under the rules of the Judicial Arbitration and Mediation Services in San Diego, California. On April 11, 2017, the panel provided its decision, finding that the Company must pay to BlackBerry $815 million, plus interest at a rate of 10% from June 2015. The decision was limited to prepayment provisions unique to BlackBerry’s license agreement with the Company and has no impact on agreements with any other licensee. The decision is binding and is not subject to appeal. BlackBerry is also entitled to recover its reasonable attorneys’ fees to be determined by the panel. A hearing regarding attorneys’ fees is scheduled for May 30, 2017. As a result, the Company recorded a reduction to licensing revenues of $974 million in the second quarter of fiscal 2017.
QUALCOMM Incorporated v. Meizu Technology Co., Ltd. et al: On June 23, 2016 and June 29, 2016, the Company filed a series of actions against Meizu Technology Co., Ltd., aka Zhuhai Meizu Technology Co., Ltd. (Meizu) and certain of its distributors in the Intellectual Property Courts in Beijing and Shanghai (China). The first complaint, filed in Beijing on June 23, 2016, requested rulings that the terms of a patent license offered by the Company to Meizu comply with China’s Anti-Monopoly Law and the Company’s applicable fair, reasonable and non-discriminatory licensing commitment. The complaint also sought a ruling that the offered patent license terms should form the basis for a patent license with Meizu for the Company’s fundamental mobile device technologies patented in China, including those relating to 3G (WCDMA and CDMA2000) and 4G (LTE) wireless communications standards, and sought damages for Meizu’s past use of the Company’s patented inventions. On June 29, 2016, the Company filed patent infringement complaints in the Intellectual Property Courts in Beijing and Shanghai alleging infringement of 17 patents by Meizu. The patent infringement actions concerned a broad range of features and technologies used in smartphones, including features relating to 3G (WCDMA and CDMA2000) and 4G (LTE) wireless communications standards, and sought to enjoin Meizu from manufacturing, selling and offering for sale mobile devices that infringe the asserted patents. Meizu also filed actions before China’s Patent Reexamination Board challenging the validity of each of the asserted patents. 
On October 14, 2016, the Company filed patent infringement complaints against Meizu in the United States ITC and the Mannheim Regional Court in Germany. The ITC complaint sought an exclusion order enjoining Meizu and certain of its distributors from the importation, sale for importation and sale after importation of Meizu mobile devices that infringe certain of the Company’s patents related to semiconductor, radio frequency and digital camera technologies. The German complaint sought damages and to enjoin Meizu from offering, putting into circulation, using, possessing or importing into Germany mobile devices that infringe one of the Company’s patents related to wireless messaging technology. On the same day, the Company also initiated a seizure action in France pursuant to orders from the Paris District Court to obtain evidence for a possible future infringement action in that country.
On December 26, 2016, the Company and Meizu entered into several agreements whereby the Company granted Meizu a worldwide royalty-bearing patent license to develop, manufacture and sell CDMA2000, WCDMA and 4G LTE (including “3-mode” GSM, TD-SCDMA and LTE-TDD) complete devices. These agreements resolved all of the patent disputes between the Company and Meizu in China, Germany, France and the United States. Accordingly, the Company and Meizu took appropriate steps to terminate or withdraw the foregoing complaints and actions, which had all been formally dismissed by the respective tribunals as of March 14, 2017.
Apple Inc. (Apple) v. Qualcomm Incorporated: On January 20, 2017, Apple filed a complaint against the Company in the United States District Court for the Southern District of California seeking declarations with respect to several of the Company’s patents and alleging that the Company breached certain agreements and violated federal antitrust and California state unfair competition laws. In particular, Apple seeks declaratory judgments of non-infringement by Apple of nine of the Company’s patents, or in the alternative, a declaration of royalties Apple must pay for the patents. Apple further seeks a declaration that the Company’s sale of baseband chipsets exhausts the Company’s patent rights for patents embodied in those chipsets. Separately, Apple seeks to enjoin the Company from seeking excessive royalties from Apple and to disgorge royalties paid by Apple’s contract manufacturers that the court finds were not fair, reasonable and non-discriminatory (FRAND). Apple also claims that the Company’s refusal to make certain payments to Apple under a Business Cooperation and Patent Agreement (Cooperation Agreement) constitutes a breach of contract in violation of California law and seeks damages in the amount of the unpaid payments, alleged to be approximately $1 billion. In addition, Apple claims that the Company has refused to deal with competitors in contravention of the Company’s agreements with applicable standard setting organizations, has used its market position to impose contractual obligations on Apple that prevented Apple from challenging the Company’s licensing practices, has tied the purchase of the Company’s CDMA-enabled and premium LTE-enabled chipsets to licensing certain of the Company’s patents and has required Apple to purchase baseband chipsets exclusively from the Company as a condition of the Company’s payment to Apple of certain rebates, in violation of Section 2 of the Sherman Act and the California Unfair Competition Law. Apple seeks injunctive relief with respect to these claims and a judgment awarding its expenses, costs and attorneys’ fees.
On April 10, 2017, the Company filed its Answer and Counterclaims in response to Apple’s complaint denying Apple’s claims and asserting claims against Apple. The counterclaims against Apple include tortious interference with the Company’s long-standing Subscriber Unit License Agreements (SULAs) with third-party contract manufacturers of Apple devices, causing those contract manufacturers to withhold certain royalty payments owed to the Company; breach of contract and the implied covenant of good faith and fair dealing relating to the parties’ Cooperation Agreement; unjust enrichment and declaratory relief relating to the Cooperation Agreement; breach of contract based on Apple’s failure to pay amounts owed to the Company under a Statement of Work relating to a high-speed feature of the Company’s chipsets; breach of the parties’ software agreement; and violation of California Unfair Competition Law based on (i) Apple’s falsely claiming that there was “no discernible difference” between iPhones using the Company’s chipsets and iPhones using Intel Corp.’s chipsets, and (ii) Apple’s threatening the Company to prevent it from promoting the superior performance of the Company’s own chipsets. The Company also seeks declaratory judgments that the Company has satisfied its FRAND commitments with respect to Apple, and that the Company’s SULAs with the contract manufacturers do not violate either competition law or the Company’s FRAND commitments.
On January 23, 2017, an Apple subsidiary in China filed two complaints against the Company in the Beijing Intellectual Property Court. On April 1, 2017, the court informed the Company that it had preliminarily granted an application by Apple Inc. to join the actions as a plaintiff, and Apple amended the complaints. One of the complaints alleges a violation of China’s Anti-Monopoly Law (AML complaint); the other complaint requests a determination of the terms of a patent license between the Company and Apple (FRAND complaint). In particular, the AML complaint alleges that (i) the Company has abused its dominant position in communication standard-essential patents licensing markets and certain global baseband chipset markets by charging and offering royalty terms that were excessively high; (ii) the Company refused to license certain implementers of standardized technologies, including Apple and baseband chipset manufacturers; (iii) the Company forced Apple to use only the Company’s products and services; and (iv) the Company bundled licenses to standard-essential patents with licenses to non-standard-essential patents and imposed other unreasonable or discriminatory trading terms on Apple in violation of the AML. The AML complaint seeks a decree that the Company cease the alleged abuse of dominance, as well as damages in the amount of 1 billion Chinese Renminbi (approximately $145 million based on the exchange rate on March 26, 2017). The FRAND complaint makes allegations similar to the AML complaint and further alleges that the Company refused to offer licensing terms for the Company’s cellular standard-essential patents consistent with the Company’s FRAND licensing commitments and failed to provide to Apple certain information about the Company’s patents. The FRAND complaint seeks (i) a declaration that the license terms offered to Apple by the Company for its mobile communication standard essential patents are not compliant with FRAND; (ii) an order that the Company cease its actions that allegedly violate the Company’s FRAND obligations, including pricing on unfair, unreasonable and excessive terms, refusing to deal, imposing unreasonable trade conditions and failing to provide information on the Company’s patents; and (iii) a determination of FRAND-compliant license terms for the Company’s Chinese standard-essential patents. Apple also seeks its expenses in each of the cases. On March 3, 2017, the Company filed objections to the court’s jurisdiction in these cases. On April 17, 2017, the Company filed (i) new jurisdictional objections to the April 1, 2017 complaints; and (ii) opinions on Apple Inc.’s application to join the suits as a plaintiff.
On February 16, 2017, Apple and one of its Japanese subsidiaries filed three complaints against the Company in the Tokyo District Court. In the complaints, Apple seeks declaratory judgment of non-infringement by Apple of three of the Company’s patents. Apple further seeks a declaration that the Company’s patent rights with respect to those three patents are exhausted by the Company’s SULAs with the contract manufacturers of Apple’s devices as well as the Company’s sale of baseband chipsets. Finally, Apple seeks an award of fees. 
On March 2, 2017, the Company learned that Apple and certain of its European subsidiaries issued a Claim Form against the Company in the UK High Court of Justice, Chancery Division, Patents Court on January 23, 2017. The Claim Form alleges several European competition law claims, including refusal to license competing chipmakers, failure to offer Apple a direct license to the Company’s standard-essential patents on FRAND terms, demanding excessive royalties for the Company’s standard-essential patents, and demanding excessive license fees for the use of the Company’s standard-essential patents in connection with chipsets purchased from the Company. Apple also seeks declarations that it is a willing licensee and that commercial activity in relation to its iPhones and iPads attributable to, implemented by, or using the Company’s chipsets does not infringe any of the Company’s patents because the Company either exhausted its patent rights or granted Apple an implied license.
The Company believes Apple’s claims in the above matters are without merit.
3226701 Canada, Inc. v. QUALCOMM Incorporated et al: On November 30, 2015, plaintiffs filed a securities class action complaint against the Company and certain of its current and former officers in the United States District Court for the Southern District of California. On April 29, 2016, plaintiffs filed an amended complaint. On January 27, 2017, the Court dismissed the amended complaint in its entirety, granting leave to amend. On March 17, 2017, plaintiffs filed a second amended complaint, alleging that the Company and certain of its current and former officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, by making false and misleading statements regarding the Company’s business outlook and product development between November 19, 2014 and July 22, 2015. The Company intends to move to dismiss that complaint. The second amended complaint seeks unspecified damages, interest, attorneys’ fees and other costs. The Company believes the plaintiffs’ claims are without merit.
Securities Class Action Lawsuits: On January 23 and 26, 2017, respectively, two securities class action complaints were filed by purported stockholders of the Company in the United States District Court for the Southern District of California against the Company and certain of its current and former officers and directors. The complaints allege that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, by making false and misleading statements and omissions of material fact in connection with certain allegations that the Company is or was engaged in anticompetitive conduct and in connection with the Company’s internal control over financial reporting. The complaints seek unspecified damages, interest, attorneys’ fees and other costs. On March 24, 2017, four sets of plaintiffs filed motions to consolidate the actions and to be appointed lead plaintiff. The Company believes the plaintiffs’ claims are without merit.
Consumer Class Action Lawsuits: Since January 18, 2017, more than thirty consumer class action complaints have been filed against the Company 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. Although the complaints contain certain differences, in general they all allege that the Company violated various federal and state antitrust and consumer protection laws by, among other things, refusing to license standard-essential patents to its competitors, conditioning the supply of certain of its baseband chipsets on the purchaser first agreeing to license the Company’s entire patent portfolio, entering into exclusive deals with companies including Apple Inc., and charging unreasonably high royalties that do not comply with the Company’s commitments to standard setting organizations. The complaints further allege that the Company was unjustly enriched by the foregoing alleged conduct. The complaints seek unspecified damages, interest, attorneys’ fees and other costs, as well as an order that the Company be enjoined from further unlawful conduct. On April 5, 2017, the Judicial Panel on Multidistrict Litigation (the Judicial Panel) issued a transfer order transferring two of these cases from the Southern District of California to the Northern District of California. On April 7, 2017, the Judicial Panel issued a conditional transfer order that is expected to result in the transfer of the rest of these cases in the Southern District of California to the Northern District of California. The Company believes the plaintiffs’ claims are without merit. 
Japan Fair Trade Commission (JFTC) Complaint: The JFTC received unspecified complaints alleging that the Company’s business practices are, in some way, a violation of Japanese law. On September 29, 2009, the JFTC issued a cease and desist order concluding that the Company’s Japanese licensees were forced to cross-license patents to the Company on a royalty-free basis and were forced to accept a provision under which they agreed not to assert their essential patents against the Company’s other licensees who made a similar commitment in their license agreements with the Company. The cease and desist order seeks to require the Company to modify its existing license agreements with Japanese companies to eliminate these provisions while preserving the license of the Company’s patents to those companies. The Company disagrees with the conclusions that it forced its Japanese licensees to agree to any provision in the parties’ agreements and that those provisions violate the Japanese Antimonopoly Act. The Company has invoked its right under Japanese law to an administrative hearing before the JFTC. In February 2010, the Tokyo High Court granted the Company’s motion and issued a stay of the cease and desist order pending the administrative hearing before the JFTC. The JFTC has held hearings on 34 different dates, with the next hearing scheduled for April 24, 2017.
Korea Fair Trade Commission (KFTC) Complaint: On January 4, 2010, the KFTC issued a written decision finding that the Company had violated Korean law by offering certain discounts and rebates for purchases of its CDMA chipsets and for including in certain agreements language requiring the continued payment of royalties after all licensed patents have expired. The KFTC levied a fine, which the Company paid and recorded as an expense in fiscal 2010. The Company appealed to the Seoul High Court, and on June 19, 2013, the Seoul High Court affirmed the KFTC’s decision. On July 4, 2013, the Company filed an appeal with the Korea Supreme Court. There have been no material developments since then with respect to this matter.
Korea Fair Trade Commission (KFTC) Investigation: On March 17, 2015, the KFTC notified the Company that it was conducting an investigation of the Company 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 the Company has violated provisions of the MRFTA. On January 22, 2017, the Company received the KFTC’s formal written decision, which finds 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 the Company; 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 the Company to: (i) 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; (ii) not demand that handset companies execute and perform under patent license agreements as a precondition for purchasing modem chips; (iii) not demand unjustifiable conditions in the Company’s license agreements with handset companies, and upon request renegotiate existing patent license agreements; and (iv) notify modem chipset companies and handset companies of the decision and order imposed on the Company and report to the KFTC new or amended agreements. According to the KFTC’s decision, the foregoing will apply to transactions between the Company and the following enterprises: (i) handset manufacturers headquartered in Korea and their affiliate companies; (ii) enterprises that sell handsets in or to Korea and their affiliate companies; (iii) enterprises that supply handsets to companies referred in (ii) above and the affiliate companies of such enterprises; (iv) modem chipset manufacturers headquartered in Korea and their affiliate companies; and (v) enterprises that supply modem chipsets to companies referred in (i), (ii) or (iii) above and the affiliate companies of such enterprises. The KFTC’s decision also imposes a fine of approximately 1.03 trillion Korean Won (approximately $927 million), which was paid on March 30, 2017. The Company believes that its business practices do not violate the MRFTA, and on February 21, 2017 filed an action in the Seoul High Court to cancel the KFTC’s decision. On the same day, the Company filed an application with the Seoul High Court to stay the decision’s remedial order pending the Seoul High Court’s final judgment on the Company’s action to cancel the KFTC’s decision. The Seoul High Court has not ruled on the Company’s action to cancel the KFTC’s decision or its application to stay the decision’s remedial order.
Icera Complaint to the European Commission (Commission): On June 7, 2010, the Commission notified and provided the Company with a redacted copy of a complaint filed with the Commission by Icera, Inc. (subsequently acquired by Nvidia Corporation) alleging that the Company has engaged in anticompetitive activity. The Company was asked by the Commission to submit a preliminary response to the portions of the complaint disclosed to it, and the Company submitted its response in July 2010. Subsequently, the Company provided additional documents and information as requested by the Commission. On July 16, 2015, the Commission announced that it had initiated formal proceedings in this matter. On December 8, 2015, the Commission announced that it had issued a Statement of Objections expressing its preliminary view that between 2009 and 2011, the Company engaged in predatory pricing by selling certain baseband chipsets to two customers at prices below cost, with the intention of hindering competition. A Statement of Objections informs the subject of the investigation of the allegations against it and provides an opportunity to respond to such allegations. It is not a determination of the final outcome of the investigation. On August 15, 2016, the Company submitted its response to the Statement of Objections. If a violation is found, a broad range of remedies is potentially available to the Commission, including imposing a fine 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 Commission. The Company believes that its business practices do not violate the EU competition rules.
European Commission (Commission) Investigation: On October 15, 2014, the Commission notified the Company that it is conducting an investigation of the Company relating to Articles 101 and/or 102 of the Treaty on the Functioning of the European Union (TFEU). On July 16, 2015, the Commission announced that it had initiated formal proceedings in this matter. On December 8, 2015, the Commission announced that it had issued a Statement of Objections expressing its preliminary view that since 2011 the Company has paid significant amounts to a customer on condition that it exclusively use the Company’s baseband chipsets in its smartphones and tablets. This conduct has allegedly reduced the customer’s incentives to source chipsets from the Company’s competitors and harmed competition and innovation for certain baseband chipsets. A Statement of Objections informs the subject of the investigation of the allegations against it and provides an opportunity to respond to such allegations. It is not a determination of the final outcome of the investigation. On June 27, 2016, the Company submitted its response to the Statement of Objections. If a violation is found, a broad range of remedies is potentially available to the Commission, including imposing a fine 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 Commission. The Company believes that its business practices do not violate the EU competition rules.
United States Federal Trade Commission (FTC) v. QUALCOMM Incorporated: On September 17, 2014, the FTC notified the Company that it was conducting an investigation of the Company relating to Section 5 of the Federal Trade Commission Act (FTCA). On January 17, 2017, the FTC filed a complaint against the Company in the United States District Court for the Northern District of California alleging that the Company engaged in anticompetitive conduct and unfair methods of competition in violation of Section 5 of the FTCA by conditioning the supply of baseband processors on the purchaser first agreeing to a license to the Company’s standard-essential patents, paying incentives to purchasers of baseband processors to induce them to accept certain license terms, refusing to license its standard-essential patents to the Company’s competitors and entering into alleged exclusive dealing arrangements with Apple Inc. The complaint seeks a permanent injunction against the Company’s alleged violations of the FTCA and other unspecified ancillary equitable relief. The Company filed a motion to dismiss the FTC’s complaint on April 3, 2017, which is pending. On April 19, 2017, the court set a trial date for January 4, 2019. The Company believes the FTC’s claims are without merit.
Taiwan Fair Trade Commission (TFTC) Investigation: On December 4, 2015, the TFTC notified the Company that it is conducting an investigation into whether the Company’s patent licensing arrangements violate the Taiwan Fair Trade Act (TFTA). On April 27, 2016, the TFTC specified that the allegations under investigation include whether: (i) the Company jointly licensed its patents rather than separately licensing standard-essential patents and non-standard-essential patents; (ii) the Company’s royalty charges are unreasonable; (iii) the Company unreasonably required licensees to grant it cross-licenses; (iv) the Company failed to provide lists of licensed patents to licensees; (v) the Company violated a FRAND licensing commitment by declining to grant licenses to chipset makers; (vi) the Company declined to sell chipsets to unlicensed potential customers; and (vii) the Company provided royalty rebates to certain companies in exchange for their exclusive use of the Company’s chipsets. If a violation is found, a broad range of remedies is potentially available to the TFTC, including imposing a fine or requiring modifications to the Company’s business practices. At this stage of the investigation, it is difficult to predict the outcome of this matter or what remedies, if any, may be imposed by the TFTC. The Company believes that its business practices do not violate the TFTA. The Company continues to cooperate with the TFTC as it conducts its investigation.
The Company will continue to vigorously defend itself in the foregoing matters. However, litigation and investigations are inherently uncertain. Accordingly, the Company cannot predict the outcome of these matters. Other than with respect to the BlackBerry Arbitration and the KFTC Investigation, the Company has not recorded any accrual at March 26, 2017 for contingent losses associated with these matters based on its belief that losses, while possible, are not probable. Further, any possible 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 the Company’s business, results of operations, financial condition or cash flows. The Company is engaged in numerous other legal actions not described above arising in the ordinary course of its business and, while there can be no assurance, believes that the ultimate outcome of these other legal actions will not have a material adverse effect on its business, results of operations, financial condition or cash flows.
Indemnifications. The Company generally does not indemnify its customers and licensees for losses sustained from infringement of third-party intellectual property rights. However, the Company is contingently liable under certain product sales, services, license and other agreements to indemnify certain customers against certain types of liability and/or damages arising from qualifying claims of patent, copyright, trademark or trade secret infringement by products or services sold or provided by the Company. The Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by the Company.
Through March 26, 2017, the Company has received a number of claims from its direct and indirect customers and other third parties for indemnification under such agreements with respect to alleged infringement of third-party intellectual property rights by its products. Reimbursements under indemnification arrangements have not been material to the Company’s consolidated financial statements. The Company has not recorded any accrual for contingent liabilities at March 26, 2017 associated with these indemnification arrangements based on the Company’s belief that additional liabilities, while possible, are not probable. Further, any possible range of loss cannot be reasonably estimated at this time.
Purchase Obligations. The Company has agreements with suppliers and other parties to purchase inventory, other goods and services and long-lived assets. Obligations under these agreements at March 26, 2017 for the remainder of fiscal 2017 and for each of the subsequent four years from fiscal 2018 through 2021 were $4.0 billion, $1.2 billion, $955 million, $356 million and $117 million, respectively, and $29 million thereafter. Of these amounts, for the remainder of fiscal 2017 and for each of the subsequent four years from fiscal 2018 through 2021, commitments to purchase integrated circuit product inventories comprised $3.3 billion, $918 million, $829 million, $281 million, $76 million, respectively, and there were $28 million purchase commitments thereafter. Integrated circuit product inventory obligations represent purchase commitments for raw materials, semiconductor die, finished goods and manufacturing services, such as wafer bump, probe, assembly and final test. Under the Company’s manufacturing relationships with its foundry suppliers and assembly and test service providers, cancelation of outstanding purchase commitments is generally allowed but requires payment of costs incurred through the date of cancelation, and in some cases, incremental fees related to capacity underutilization.
Operating Leases. The Company leases certain of its land, facilities and equipment under noncancelable operating leases, with terms ranging from less than one year to 21 years and with provisions in certain leases for cost-of-living increases. Future minimum lease payments at March 26, 2017 for the remainder of fiscal 2017 and for each of the subsequent four years from fiscal 2018 through 2021 were $61 million, $107 million, $93 million, $68 million and $53 million, respectively, and $63 million thereafter.
Other Commitments. At March 26, 2017, the Company was committed to fund certain strategic investments up to $305 million. Of this amount, $73 million is expected to be funded in the remainder of fiscal 2017. The remaining commitments represent the maximum amounts that do not have fixed funding dates and/or are subject to certain conditions. Actual funding may be in lesser amounts or not at all.
v3.7.0.1
Segment Information (Notes)
 6 Months Ended
Mar. 26, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company is organized on the basis of products and services. The Company conducts business primarily through two reportable segments, QCT (Qualcomm CDMA Technologies) and QTL (Qualcomm Technology Licensing), and its QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments and includes revenues and related costs associated with development contracts with an equity method investee. QCT develops and supplies integrated circuits and system software for use in mobile devices, wireless networks, broadband gateway equipment and consumer electronic devices. QTL grants licenses to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. The Company also has nonreportable segments, including its mobile health, data center, small cell and other wireless technology and service initiatives.
The Company evaluates the performance of its segments based on 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 the Company’s 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; and certain research and development expenses, selling, general and administrative expenses and other expenses or income that were deemed to be not directly related to the businesses of the segments. Additionally, unallocated charges include recognition of the step-up of inventories to fair value, amortization 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 litigation settlements and/or damages. Additionally, starting with acquisitions in the second quarter of fiscal 2017, unallocated charges include recognition of the depreciation related to the step-up of property, plant and equipment to fair value. Such changes related to acquisitions that were completed prior to the second quarter of fiscal 2017 continue to be allocated to the respective segment, and such amounts are not material. All of the costs related to the initial research of 5G technology are included in unallocated corporate research and development expenses, whereas initial costs related to the research of 3G and 4G technology were recorded in both the QCT segment and unallocated corporate research and development expenses based on the nature of the activity. Fiscal 2016 results have not been revised as such costs were incurred prior to fiscal 2014.
Segment assets are comprised of accounts receivable and inventories for all reportable segments other than QSI. QSI segment assets are comprised primarily of certain non-marketable equity instruments and other investments and a receivable from the sale of wireless spectrum in fiscal 2016 (Note 2). The increase in QCT segment assets resulted primarily from our recently formed RF360 Holdings joint venture in the second quarter of fiscal 2017 (Note 8). The increase in QTL segment assets was due to an increase in accounts receivable (Note 2). Total segment assets differ from total assets on a consolidated basis as a result of unallocated corporate assets primarily comprised of certain cash, cash equivalents, marketable securities, property, plant and equipment, deferred tax assets, intangible assets and assets of nonreportable segments.
The table below presents revenues, EBT and total assets for reportable segments (in millions):
 
QCT
 
QTL
 
QSI
 
Reconciling
Items
 
Total
For the three months ended
 
 
 
 
 
 
 
 
 
March 26, 2017
 
 
 
 
 
 
 
 
 
Revenues
$
3,676

 
$
2,249

 
$
—

 
$
(909
)
 
$
5,016

EBT
475

 
1,959

 
—

 
(1,577
)
 
857

March 27, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
3,337

 
$
2,135

 
$
12

 
$
67

 
$
5,551

EBT
170

 
1,857

 
46

 
(603
)
 
1,470

 
 
 
 
 
 
 
 
 
 
For the six months ended
 
 
 
 
 
 
 
 
 
March 26, 2017
 
 
 
 
 
 
 
 
 
Revenues
$
7,777

 
$
4,060

 
$
14

 
$
(836
)
 
$
11,015

EBT
1,199

 
3,492

 
(17
)
 
(2,947
)
 
1,727

March 27, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
7,433

 
$
3,742

 
$
21

 
$
130

 
$
11,326

EBT
760

 
3,195

 
405

 
(1,180
)
 
3,180

 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
 
 
 
March 26, 2017
$
3,969

 
$
2,232

 
$
1,014

 
$
48,864

 
$
56,079

September 25, 2016
2,995

 
644

 
910

 
47,810

 
52,359


Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Revenues
 
 
 
 
 
 
 
Nonreportable segments
$
65

 
$
68

 
$
138

 
$
132

Reduction to revenues related to BlackBerry arbitration decision
(974
)
 
—

 
(974
)
 
—

Intersegment eliminations
—

 
(1
)
 
—

 
(2
)
 
$
(909
)
 
$
67

 
$
(836
)
 
$
130

EBT
 
 
 
 
 
 
 
Reduction to revenues related to BlackBerry arbitration decision
$
(974
)
 
$
—

 
$
(974
)
 
$
—

Unallocated cost of revenues
(119
)
 
(115
)
 
(213
)
 
(266
)
Unallocated research and development expenses
(277
)
 
(186
)
 
(546
)
 
(402
)
Unallocated selling, general and administrative expenses
(138
)
 
(125
)
 
(283
)
 
(252
)
Unallocated other expenses, net
(78
)
 
(75
)
 
(954
)
 
(81
)
Unallocated interest expense
(106
)
 
(71
)
 
(195
)
 
(143
)
Unallocated investment income, net
223

 
89

 
407

 
203

Nonreportable segments
(108
)
 
(117
)
 
(189
)
 
(239
)
Intersegment eliminations
—

 
(3
)
 
—

 
—

 
$
(1,577
)
 
$
(603
)

$
(2,947
)

$
(1,180
)

The reduction to revenues related to the BlackBerry arbitration decision (Note 6) was not allocated to QTL in the Company’s management reports because it will not be considered in evaluating segment results. Unallocated other expense in the six months ended March 26, 2017 was comprised of the fine imposed by the KFTC (Note 6) and restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan, which was substantially implemented in fiscal 2016 (Note 2). Unallocated other expense in the six months ended March 27, 2016 was comprised of net restructuring and restructuring-related charges associated with the Company’s Strategic Realignment Plan.
Unallocated acquisition-related expenses were comprised as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Cost of revenues
$
106

 
$
105

 
$
191

 
$
246

Research and development expenses
12

 
2

 
14

 
5

Selling, general and administrative expenses
57

 
28

 
118

 
57
v3.7.0.1
Acquisitions (Notes)
 6 Months Ended
Mar. 26, 2017
Acquisitions [Abstract]  
Acquisitions
Acquisitions
RF360 Holdings. On February 3, 2017 (the Closing Date), the Company and TDK Corporation (TDK) completed the formation of a joint venture, under the name RF360 Holdings Singapore Pte. Ltd. (RF360 Holdings), to enable delivery of radio frequency front-end (RFFE) modules and radio frequency (RF) filters into fully integrated products for mobile devices and Internet of Things (IoT) applications, among others. The joint venture is initially owned 51% by Qualcomm Global Trading Pte. Ltd. (Qualcomm Global Trading), a Singapore corporation and wholly-owned subsidiary of the Company, and 49% by EPCOS AG (EPCOS), a German wholly-owned subsidiary of TDK. Certain intellectual property, patents and filter and module design and manufacturing assets were carved out of existing TDK businesses and are owned by the joint venture, and certain assets were acquired directly by affiliates of the Company. Qualcomm Global Trading has the option to acquire (and EPCOS has an option to sell) EPCOS’s interest in the joint venture for $1.15 billion (Settlement Amount) 30 months after the Closing Date (the Put and Call Option).
EPCOS will be entitled to up to a total of $200 million in payments based on sales of RF filter functions over the three-year period after the Closing Date, which is a substitute for and in lieu of the right of EPCOS to receive any profit sharing, distributions, dividends or other payments of any kind or nature. Such contingent consideration was recorded as a liability at fair value at close, with future changes in fair value recorded in earnings.
RF360 Holdings is a variable interest entity, and its results of operations and statement of financial position are included in the Company’s consolidated financial statements (on a one-month reporting lag) as the governance structure of RF360 Holdings provides the Company with the power to direct the activities of the joint venture that most significantly impact its economic performance, such as operating decisions related to research and development, manufacturing and sales and marketing of its products. Since the Put and Call Option is considered a financing of the Company’s purchase of EPCOS’s interest in RF360 Holdings, noncontrolling interest is not recorded in the Company’s consolidated financial statements. Therefore, the Put and Call Option was recorded as a liability at fair value at close and included in other noncurrent liabilities. The liability is being accreted to the Settlement Amount, with the offset recorded as interest expense. The carrying value of the Put and Call Option approximated its estimated fair value at March 26, 2017.
The total purchase price consisted of the following (in millions):
Cash paid to TDK
$
1,463

Fair value of Put and Call Option
1,112

Fair value of contingent consideration and other deferred payments
492

Total purchase price
$
3,067


The Company has not finalized the purchase price allocation. Accordingly, the preliminary purchase price allocation shown below could change as the fair values of the tangible and intangible 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 and cash equivalents
$
306

Accounts receivable
303

Inventories
261

Intangible assets subject to amortization:
 
Technology-based intangible assets
738

Customer-related intangible assets
87

Marketing-related intangible assets
8

In-process research and development (IPR&D)
75

Property, plant and equipment
838

Goodwill
808

Other assets
42

Total assets
$
3,466

Liabilities
(399
)
 
$
3,067


The Company recognized $808 million in goodwill related to this transaction, of which $269 million is expected to be deductible for tax purposes. The goodwill recognized was allocated to the QCT segment for annual impairment testing purposes. The goodwill is primarily attributable to the assembled workforce and synergies expected to arise after the acquisition. Each category of intangible assets acquired will be amortized on a straight-line basis over the weighted-average useful lives of seven years for technology-based intangible assets, nine years for customer-related intangible assets and one year for marketing-related intangible assets. On the acquisition date, IPR&D consisted of two projects. Upon completion, the IPR&D projects will be amortized over their useful lives of six years. The estimated fair values of the intangible assets and the property, plant and equipment acquired were primarily determined using the income approach and cost approach, respectively, both of which were based on significant inputs that were not observable.
The Company’s results of operations for the three and six months ended March 26, 2017 included the operating results of RF360 Holdings on a one-month reporting lag since the date of acquisition, the amounts of which were not material. The following table presents the unaudited pro forma results for the three and six months ended March 26, 2017 and March 27, 2016. The unaudited pro forma financial information combines the results of operations of Qualcomm and RF360 Holdings as though the companies had been combined as of the beginning of fiscal 2016. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at such time. The unaudited pro forma results presented below include adjustments for the step-up of inventories to fair value, amortization and depreciation of identified intangible assets and property, plant and equipment, adjustments for certain acquisition-related charges, interest expense related to the Put and Call Option and related tax effects (in millions):
 
(Unaudited)
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Revenues
$
6,108

 
$
5,799

 
$
12,504

 
$
11,810

Net income attributable to Qualcomm
1,481

 
1,182

 
2,236

 
2,651


NXP. On October 27, 2016, the Company announced a definitive agreement under which Qualcomm River Holdings, B.V. (Qualcomm River Holdings), an indirect, wholly owned subsidiary of QUALCOMM Incorporated, will acquire NXP Semiconductors N.V. Pursuant to the definitive agreement, Qualcomm River Holdings has commenced a tender offer to acquire all of the issued and outstanding common shares of NXP for $110 per share in cash, for estimated total cash consideration of $38 billion. NXP is a leader in high-performance, mixed-signal semiconductor electronics in automotive, broad-based microcontrollers, secure identification, network processing and RF power products.
The transaction is expected to close by the end of calendar 2017 and is subject to receipt of regulatory approvals in various jurisdictions and other closing conditions, including the tender of at least 80% of the issued and outstanding common shares of NXP in the offer (provided that the minimum tender threshold may be reduced to a percentage not less than 70% with the prior written consent of NXP). At an Extraordinary General Meeting of NXP’s shareholders held on January 27, 2017, NXP’s shareholders approved certain matters relating to the transaction, including the appointment of designees of Qualcomm River Holdings to NXP’s board of directors (effective upon the closing of the transaction) and certain transactions that are intended to be consummated after the completion of the tender offer. In addition, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States, as amended, expired on April 3, 2017.
The tender offer is not subject to any financing condition; however, the Company intends to fund the transaction with cash held by foreign entities and new debt. As a result, the Company has secured $11.1 billion in committed financing through a $7.1 billion Bridge Loan Facility and $4.0 billion Term Loan Facility (Note 5). The Company expects to issue additional debt, including accessing the public debt markets in fiscal 2017, in lieu of drawing on the Bridge Loan Facility at close of the NXP transaction.
Qualcomm River Holdings and NXP may terminate the definitive agreement under certain circumstances. If the definitive agreement is terminated by NXP in certain circumstances, NXP will be required to pay Qualcomm River Holdings a termination fee of $1.25 billion. If the definitive agreement is terminated by Qualcomm River Holdings under certain circumstances involving the failure to obtain the required regulatory approvals or the failure of NXP to complete certain pre-closing reorganization steps in all material respects, Qualcomm River Holdings will be required to pay NXP a termination fee of $2.0 billion. In November 2016, as required by the definitive agreement, Qualcomm River Holdings entered into four letters of credit for an aggregate amount of $2.0 billion related to the potential termination fee payable to NXP. Pursuant to the terms of each letter of credit, NXP will have the right to draw amounts to fund certain termination compensation owed by Qualcomm River Holdings to NXP if the definitive agreement is terminated under certain circumstances. The letters of credit expire on June 30, 2018 or if drawn on by NXP or surrendered by Qualcomm River Holdings. Each letter of credit is required to be fully cash collateralized in an amount equal to 100% of its face value through deposits with the issuers of the letters of credit. Qualcomm River Holdings is restricted from using the funds deposited as collateral while the letters of credit are outstanding. At March 26, 2017, the letters of credit were fully collateralized through bank time deposits and money market funds, which were recorded as other noncurrent assets.
v3.7.0.1
Fair Value Measurements (Notes)
 6 Months Ended
Mar. 26, 2017
Notes to Financial Statements [Abstract]  
Fair Value Measurements
Fair Value Measurements
The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 26, 2017 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
3,270

 
$
2,939

 
$
—

 
$
6,209

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
319

 
772

 
—

 
1,091

Corporate bonds and notes
—

 
18,330

 
—

 
18,330

Mortgage- and asset-backed and auction rate securities
—

 
1,411

 
41

 
1,452

Equity and preferred securities and equity funds
70

 
176

 
—

 
246

Debt funds
—

 
615

 
—

 
615

Total marketable securities
389

 
21,304

 
41

 
21,734

Derivative instruments
—

 
24

 
—

 
24

Other investments
338

 
—

 
130

 
468

Total assets measured at fair value
$
3,997

 
$
24,267

 
$
171

 
$
28,435

Liabilities
 
 
 
 
 
 
 
Derivative instruments
—

 
28

 
—

 
28

Other liabilities
337

 
—

 
193

 
530

Total liabilities measured at fair value
$
337

 
$
28

 
$
193

 
$
558


Activity between Levels of the Fair Value Hierarchy. There were no significant transfers between Level 1 and Level 2 in the six months ended March 26, 2017 and March 27, 2016. The Company recognizes transfers into and out of levels within the fair value hierarchy at the end of the fiscal month in which the actual event or change in circumstances that caused the transfer occurs. Transfers of marketable securities out of Level 3 in the six months ended March 27, 2016 primarily consisted of debt securities with significant upgrades in credit ratings or for which there were observable inputs.
Other investments and other liabilities included in Level 3 at March 26, 2017 were comprised of convertible debt instruments issued by private companies and contingent consideration related to business combinations, respectively, in the six months ended March 26, 2017. There were no transfers of convertible debt instruments or contingent consideration amounts into or out of Level 3 during the six months ended March 26, 2017. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. The fair value of convertible debt instruments is estimated by the Company based on the estimated timing and amount of future cash flows, as well as assumptions related to liquidity, default likelihood and recovery. The fair value of contingent consideration related to business combinations is estimated by the Company using a real options approach, which includes inputs, such as projected financial information, market volatility, discount rates and timing of contractual payments. The inputs used by the Company to estimate the fair values of the convertible debt instruments and contingent consideration are generally unobservable, and therefore, they are included in Level 3.
Nonrecurring Fair Value Measurements. The Company measures certain assets at fair value on a nonrecurring basis. These assets include cost and equity method investments when they are deemed to be other-than-temporarily impaired, 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. In the six months ended March 26, 2017 and March 27, 2016, the Company did not have any significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.
v3.7.0.1
Marketable Securities (Notes)
 6 Months Ended
Mar. 26, 2017
Marketable Securities [Abstract]  
Marketable Securities
Marketable Securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
March 26,
2017
 
September 25,
2016
 
March 26,
2017
 
September 25,
2016
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
255

 
$
1,116

 
$
836

 
$
1,099

Corporate bonds and notes
2,273

 
10,159

 
16,057

 
8,584

Mortgage- and asset-backed and auction rate securities
156

 
1,363

 
1,296

 
534

Equity and preferred securities and equity funds
70

 
64

 
176

 
1,682

Debt funds
104

 
—

 
511

 
1,803

 
$
2,858

 
$
12,702

 
$
18,876

 
$
13,702


At March 26, 2017, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
 
 
 
Less Than
One Year
 
One to
Five Years
 
Five to
Ten Years
 
Greater Than
Ten Years
 
No Single
Maturity
Date
 
Total
$
6,979

 
$
10,513

 
$
1,396

 
$
533

 
$
2,067

 
$
21,488


Debt securities with no single maturity date included debt funds, mortgage- and asset-backed securities and auction rate securities.
The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
For the three months ended
 
 
 
 
 
March 26, 2017
$
57

 
$
—

 
$
57

March 27, 2016
34

 
(11
)
 
23

 
 
 
 
 
 
For the six months ended
 
 
 
 
 
March 26, 2017
$
303

 
$
(107
)
 
$
196

March 27, 2016
84

 
(22
)
 
62


Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
March 26, 2017
 
 
 
 
 
 
 
Equity securities
$
171

 
$
75

 
$
—

 
$
246

Debt securities (including debt funds)
21,360

 
156

 
(28
)
 
21,488

 
$
21,531

 
$
231

 
$
(28
)
 
$
21,734

September 25, 2016
 
 
 
 
 
 
 
Equity securities
$
1,554

 
$
204

 
$
(12
)
 
$
1,746

Debt securities (including debt funds)
24,363

 
388

 
(93
)
 
24,658

 
$
25,917

 
$
592

 
$
(105
)
 
$
26,404


The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that are classified as available-for-sale and have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category (in millions):
 
March 26, 2017
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
366

 
$
(8
)
 
$
3

 
$
—

Corporate bonds and notes
2,141

 
(18
)
 
25

 
—

Mortgage- and asset-backed and auction rate securities
69

 
(1
)
 
55

 
(1
)
 
$
2,576

 
$
(27
)
 
$
83

 
$
(1
)
 
September 25, 2016
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
444

 
$
(5
)
 
$
16

 
$
—

Corporate bonds and notes
2,775

 
(12
)
 
1,033

 
(65
)
Mortgage- and asset-backed and auction rate securities
337

 
(3
)
 
211

 
(2
)
Equity and preferred securities and equity funds
312

 
(4
)
 
130

 
(8
)
Debt funds
—

 
—

 
309

 
(6
)
 
$
3,868

 
$
(24
)
 
$
1,699

 
$
(81
)

In the first quarter of fiscal 2017, the Company announced that it entered into an agreement to acquire NXP Semiconductors N.V. (Note 8). As a result, prior to the closing, the Company has begun, and expects to continue, to divest a substantial portion of its marketable securities portfolio in order to finance, in part, that transaction. Marketable securities that were expected to be used to finance the NXP transaction were classified as noncurrent at March 26, 2017 as they are not considered available for current operations. Given the change in the Company’s intention to sell certain marketable securities, the Company recognized other-than-temporary impairment losses in the six months ended March 26, 2017 for certain marketable securities (Note 2) and may recognize additional losses prior to the sale of such marketable securities. For the remaining available-for-sale securities, which are not expected to be sold to finance the NXP transaction, the Company concluded that the unrealized losses were temporary at March 26, 2017. Further, for debt securities and preferred stock with unrealized losses, the Company did not have the intent to sell, nor was it more likely than not that the Company would be required to sell, such securities before recovery or maturity.
v3.7.0.1
Basis of Presentation (Policies)
 6 Months Ended
Mar. 26, 2017
Basis of Presentation [Abstract]  
Fiscal Period, Policy
The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three-month and six-month periods ended March 26, 2017 and March 27, 2016 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 the Company’s condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.
Earnings Per Share, Policy
Earnings Per Common Share. Basic earnings per common share are computed by dividing net income attributable to Qualcomm by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share are computed by dividing net income attributable to Qualcomm by the combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. The dilutive common share equivalents, calculated using the treasury stock method, in the three and six months ended March 26, 2017 were 11,284,000 and 14,156,000, respectively, and in the three and six months ended March 27, 2016 were 10,734,000 and 12,582,000, respectively. Shares of common stock equivalents outstanding that were not included in the computation of diluted earnings per common share, because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period, were 10,823,000 and 5,443,000 in the three and six months ended March 26, 2017, respectively, and 6,899,000 and 4,036,000 in the three and six months ended March 27, 2016, respectively.
Recent Accounting Pronouncements, Policy
Recent Accounting Pronouncements. In May 2014, the FASB issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The new guidance will be effective for the Company starting in the first quarter of fiscal 2019. Adoption one year early is permitted. Two methods of adoption are permitted: (a) full retrospective adoption, meaning the standard is applied to all periods presented or (b) modified retrospective adoption, meaning the cumulative effect of applying the new guidance is recognized as an adjustment to the opening retained earnings balance. The Company does not intend to adopt the new guidance early. The Company currently expects the adoption of this new guidance to most significantly impact its licensing business. Specifically, the Company expects a change in the timing of revenues recognized from sales-based royalties. The Company currently recognizes sales-based royalties as revenues in the period in which such royalties are reported by licensees, which is after the conclusion of the quarter in which the licensees’ sales occur. Under the new guidance, the Company will be required to estimate and recognize sales-based royalties in the period in which the associated sales occur, resulting in an acceleration of revenue recognition compared to the current method. Upon adoption of the new guidance, licenses to use portions of the Company’s intellectual property portfolio will be considered one performance obligation, and license fees will be recognized as revenues on a straight-line basis over the term of the license agreement. The Company currently accounts for customer incentive arrangements in its licensing and chip businesses, including volume-related and other pricing rebates or cost reimbursements for marketing and other activities involving certain of the Company’s products and technologies, based on the maximum potential liability. Under the new guidance, the Company expects to estimate the amount of the customer incentive. The Company does not otherwise expect the adoption of the new guidance will have a material impact on its businesses and is in the process of determining the adoption method.
In January 2016, the FASB issued new guidance on classifying and measuring financial instruments, which requires that (i) all equity investments, other than equity-method investments, in unconsolidated entities generally be measured at fair value through earnings and (ii) when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk be recognized separately in other comprehensive income. Additionally, it changes the disclosure requirements for financial instruments. The new guidance will be effective for the Company starting in the first quarter of fiscal 2019. Early adoption is permitted for certain provisions. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt certain provisions early.
In February 2016, the FASB issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of fiscal 2020. Early adoption is permitted. The Company does not intend to adopt the new guidance early and is in the process of determining the effects the adoption will have on its consolidated financial statements.
In March 2016, the FASB issued new guidance that changes the accounting for share-based payments. Under the new guidance, excess tax benefits associated with share-based payment awards will be recognized through earnings when the awards vest or settle, rather than in stockholders’ equity. In addition, it will increase the number of shares an employer can withhold to cover income taxes on share-based payment awards and still qualify for the exemption to liability classification. The new guidance will be effective for the Company starting in the first quarter of fiscal 2018. Early adoption is permitted in any annual or interim period. The Company does not intend to adopt the new guidance early and is in the process of determining the effects the adoption will have on its consolidated financial statements.
In June 2016, the FASB issued new guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new guidance will be effective for the Company starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt the new guidance early.
In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments on the statement of cash flows. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019 on a retrospective basis, and early adoption is permitted. The Company does not intend to adopt the new guidance early and is in the process of determining the effects the adoption will have on its consolidated financial statements.
In October 2016, the FASB issued new guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The new guidance will be effective for the Company starting in the first quarter of fiscal 2019 on a modified retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements as well as whether to adopt the new guidance early.
Segment Reporting, Policy
The Company evaluates the performance of its segments based on 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 the Company’s 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; and certain research and development expenses, selling, general and administrative expenses and other expenses or income that were deemed to be not directly related to the businesses of the segments. Additionally, unallocated charges include recognition of the step-up of inventories to fair value, amortization 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 litigation settlements and/or damages. Additionally, starting with acquisitions in the second quarter of fiscal 2017, unallocated charges include recognition of the depreciation related to the step-up of property, plant and equipment to fair value.
v3.7.0.1
Basis of Presentation (Tables)
 6 Months Ended
Mar. 26, 2017
Basis of Presentation [Abstract]  
Share-based compensation expense related to all share-based awards
Total share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Cost of equipment and services revenues
$
10

 
$
10

 
$
20

 
$
20

Research and development
155

 
161

 
308

 
326

Selling, general and administrative
81

 
76

 
157

 
148

Share-based compensation expense before income taxes
246

 
247

 
485

 
494

Related income tax benefit
(36
)
 
(27
)
 
(84
)
 
(87
)
 
$
210

 
$
220

 
$
401

 
$
407
v3.7.0.1
Composition of Certain Financial Statement Items (Tables)
 6 Months Ended
Mar. 26, 2017
Balance Sheet Related Disclosures [Abstract]  
Accounts Receivable
Accounts Receivable (in millions)
 
 
 
 
March 26,
2017
 
September 25,
2016
Trade, net of allowances for doubtful accounts of $1 and $1, respectively
$
4,177

 
$
2,194

Long-term contracts
12

 
20

Other
12

 
5

 
$
4,201

 
$
2,219
Inventories
Inventories (in millions)
 
 
 
 
March 26,
2017
 
September 25,
2016
Raw materials
$
73

 
$
1

Work-in-process
1,018

 
847

Finished goods
975

 
708

 
$
2,066

 
$
1,556
Other Current Liabilities
Other Current Liabilities (in millions)
 
 
 
 
March 26,
2017
 
September 25,
2016
Customer incentives and other customer-related liabilities
$
2,665

 
$
1,710

Accrual for BlackBerry arbitration decision (Note 6)
974

 
—

Accrual for KFTC decision (Note 6)
921

 
—

Other
890

 
551

 
$
5,450

 
$
2,261
Investment Income
Investment Income, Net (in millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Interest and dividend income
$
153

 
$
158

 
$
320

 
$
295

Net realized gains on marketable securities
67

 
1

 
206

 
43

Net realized gains on other investments
21

 
23

 
30

 
30

Impairment losses on marketable securities
(3
)
 
(41
)
 
(125
)
 
(90
)
Impairment losses on other investments
(2
)
 
(2
)
 
(23
)
 
(16
)
Equity in net losses of investees
(14
)
 
(11
)
 
(11
)
 
(31
)
Net gains (losses) on derivative investments
13

 
(1
)
 
20

 
(5
)
 
$
235

 
$
127

 
$
417

 
$
226
v3.7.0.1
Stockholders' Equity (Tables)
 6 Months Ended
Mar. 26, 2017
Stockholders' Equity Attributable to Parent [Abstract]  
Changes in Stockholders Equity
Changes in stockholders’ equity in the six months ended March 26, 2017 were as follows (in millions):
 
Qualcomm Stockholders’ Equity
 
Noncontrolling Interests
 
Total Stockholders’ Equity
Balance at September 25, 2016
$
31,778

 
$
(10
)
 
$
31,768

Net income
1,431

 
—

 
1,431

Other comprehensive loss
(198
)
 
—

 
(198
)
Common stock issued under employee benefit plans and related tax benefits
320

 
—

 
320

Share-based compensation
515

 
—

 
515

Tax withholdings related to vesting of share-based payments
(175
)
 
—

 
(175
)
Dividends
(1,599
)
 
—

 
(1,599
)
Stock repurchases
(727
)
 
—

 
(727
)
Other
(1
)
 
—

 
(1
)
Balance at March 26, 2017
$
31,344

 
$
(10
)
 
$
31,334
Accumulated Other Comprehensive Income
Changes in the components of accumulated other comprehensive income, net of income taxes, in Qualcomm stockholders’ equity in the six months ended March 26, 2017 were as follows (in millions):
 
Foreign Currency Translation Adjustment
 
Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities
 
Net Unrealized Gain (Loss) on Other Available-for-Sale Securities
 
Net Unrealized Gain (Loss) on Derivative Instruments
 
Total Accumulated Other Comprehensive Income
Balance at September 25, 2016
$
(161
)
 
$
6

 
$
532

 
$
51

 
$
428

Other comprehensive (loss) income before reclassifications
(10
)
 
6

 
(141
)
 
(3
)
 
(148
)
Reclassifications from accumulated other comprehensive income (loss)
—

 
11

 
(59
)
 
(2
)
 
(50
)
Other comprehensive (loss) income
(10
)
 
17

 
(200
)
 
(5
)
 
(198
)
Balance at March 26, 2017
$
(171
)
 
$
23

 
$
332

 
$
46

 
$
230
Dividends Declared
In the six months ended March 26, 2017 and March 27, 2016, dividends charged to retained earnings were as follows (in millions, except per share data):
 
2017
 
2016
 
Per Share
 
Total
 
Per Share
 
Total
First quarter
$
0.53

 
$
801

 
$
0.48

 
$
730

Second quarter
0.53

 
798

 
0.48

 
726

 
$
1.06

 
$
1,599

 
$
0.96

 
$
1,456
v3.7.0.1
Debt (Tables)
 6 Months Ended
Mar. 26, 2017
Debt Disclosure [Abstract]  
Schedule of long-term debt
The following table provides a summary of the Company’s long-term debt (in millions except percentages):
 
March 26, 2017
 
September 25, 2016
 
Amount
 
Effective
Rate
 
Amount
 
Effective
Rate
Floating-rate notes due May 18, 2018
$
250

 
1.38%
 
$
250

 
1.14%
Floating-rate notes due May 20, 2020
250

 
1.66%
 
250

 
1.42%
Fixed-rate 1.40% notes due May 18, 2018
1,250

 
1.59%
 
1,250

 
0.93%
Fixed-rate 2.25% notes due May 20, 2020
1,750

 
2.10%
 
1,750

 
1.69%
Fixed-rate 3.00% notes due May 20, 2022
2,000

 
2.58%
 
2,000

 
2.04%
Fixed-rate 3.45% notes due May 20, 2025
2,000

 
3.46%
 
2,000

 
3.46%
Fixed-rate 4.65% notes due May 20, 2035
1,000

 
4.74%
 
1,000

 
4.74%
Fixed-rate 4.80% notes due May 20, 2045
1,500

 
4.71%
 
1,500

 
4.71%
Total principal
10,000

 
 
 
10,000

 
 
Unamortized discount, including debt issuance costs
(53
)
 
 
 
(57
)
 
 
Hedge accounting fair value adjustments
(8
)
 
 
 
65

 
 
Total long-term debt
$
9,939

 
 
 
$
10,008

 
 
v3.7.0.1
Segment Information (Tables)
 6 Months Ended
Mar. 26, 2017
Segment Reporting [Abstract]  
Revenues, EBT and Total Assets for reportable segments
The table below presents revenues, EBT and total assets for reportable segments (in millions):
 
QCT
 
QTL
 
QSI
 
Reconciling
Items
 
Total
For the three months ended
 
 
 
 
 
 
 
 
 
March 26, 2017
 
 
 
 
 
 
 
 
 
Revenues
$
3,676

 
$
2,249

 
$
—

 
$
(909
)
 
$
5,016

EBT
475

 
1,959

 
—

 
(1,577
)
 
857

March 27, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
3,337

 
$
2,135

 
$
12

 
$
67

 
$
5,551

EBT
170

 
1,857

 
46

 
(603
)
 
1,470

 
 
 
 
 
 
 
 
 
 
For the six months ended
 
 
 
 
 
 
 
 
 
March 26, 2017
 
 
 
 
 
 
 
 
 
Revenues
$
7,777

 
$
4,060

 
$
14

 
$
(836
)
 
$
11,015

EBT
1,199

 
3,492

 
(17
)
 
(2,947
)
 
1,727

March 27, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
7,433

 
$
3,742

 
$
21

 
$
130

 
$
11,326

EBT
760

 
3,195

 
405

 
(1,180
)
 
3,180

 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
 
 
 
March 26, 2017
$
3,969

 
$
2,232

 
$
1,014

 
$
48,864

 
$
56,079

September 25, 2016
2,995

 
644

 
910

 
47,810

 
52,359
Reconciling items for reportable segments - revenues
Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Revenues
 
 
 
 
 
 
 
Nonreportable segments
$
65

 
$
68

 
$
138

 
$
132

Reduction to revenues related to BlackBerry arbitration decision
(974
)
 
—

 
(974
)
 
—

Intersegment eliminations
—

 
(1
)
 
—

 
(2
)
 
$
(909
)
 
$
67

 
$
(836
)
 
$
130

EBT
 
 
 
 
 
 
 
Reduction to revenues related to BlackBerry arbitration decision
$
(974
)
 
$
—

 
$
(974
)
 
$
—

Unallocated cost of revenues
(119
)
 
(115
)
 
(213
)
 
(266
)
Unallocated research and development expenses
(277
)
 
(186
)
 
(546
)
 
(402
)
Unallocated selling, general and administrative expenses
(138
)
 
(125
)
 
(283
)
 
(252
)
Unallocated other expenses, net
(78
)
 
(75
)
 
(954
)
 
(81
)
Unallocated interest expense
(106
)
 
(71
)
 
(195
)
 
(143
)
Unallocated investment income, net
223

 
89

 
407

 
203

Nonreportable segments
(108
)
 
(117
)
 
(189
)
 
(239
)
Intersegment eliminations
—

 
(3
)
 
—

 
—

 
$
(1,577
)
 
$
(603
)

$
(2,947
)

$
(1,180
)
Reconciling items for reportable segments - Revenues and EBT
Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Revenues
 
 
 
 
 
 
 
Nonreportable segments
$
65

 
$
68

 
$
138

 
$
132

Reduction to revenues related to BlackBerry arbitration decision
(974
)
 
—

 
(974
)
 
—

Intersegment eliminations
—

 
(1
)
 
—

 
(2
)
 
$
(909
)
 
$
67

 
$
(836
)
 
$
130

EBT
 
 
 
 
 
 
 
Reduction to revenues related to BlackBerry arbitration decision
$
(974
)
 
$
—

 
$
(974
)
 
$
—

Unallocated cost of revenues
(119
)
 
(115
)
 
(213
)
 
(266
)
Unallocated research and development expenses
(277
)
 
(186
)
 
(546
)
 
(402
)
Unallocated selling, general and administrative expenses
(138
)
 
(125
)
 
(283
)
 
(252
)
Unallocated other expenses, net
(78
)
 
(75
)
 
(954
)
 
(81
)
Unallocated interest expense
(106
)
 
(71
)
 
(195
)
 
(143
)
Unallocated investment income, net
223

 
89

 
407

 
203

Nonreportable segments
(108
)
 
(117
)
 
(189
)
 
(239
)
Intersegment eliminations
—

 
(3
)
 
—

 
—

 
$
(1,577
)
 
$
(603
)

$
(2,947
)

$
(1,180
)
Unallocated acquisition-related expenses were comprised as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Cost of revenues
$
106

 
$
105

 
$
191

 
$
246

Research and development expenses
12

 
2

 
14

 
5

Selling, general and administrative expenses
57

 
28

 
118

 
57
v3.7.0.1
Acquisitions
 6 Months Ended
Mar. 26, 2017
Business Acquisition [Line Items]  
Schedule of Business Acquisitions by Acquisition [Table Text Block]
The total purchase price consisted of the following (in millions):
Cash paid to TDK
$
1,463

Fair value of Put and Call Option
1,112

Fair value of contingent consideration and other deferred payments
492

Total purchase price
$
3,067
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
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 and cash equivalents
$
306

Accounts receivable
303

Inventories
261

Intangible assets subject to amortization:
 
Technology-based intangible assets
738

Customer-related intangible assets
87

Marketing-related intangible assets
8

In-process research and development (IPR&D)
75

Property, plant and equipment
838

Goodwill
808

Other assets
42

Total assets
$
3,466

Liabilities
(399
)
 
$
3,067
Business Acquisition, Pro Forma Information [Table Text Block]
The unaudited pro forma results presented below include adjustments for the step-up of inventories to fair value, amortization and depreciation of identified intangible assets and property, plant and equipment, adjustments for certain acquisition-related charges, interest expense related to the Put and Call Option and related tax effects (in millions):
 
(Unaudited)
 
Three Months Ended
 
Six Months Ended
 
March 26,
2017
 
March 27,
2016
 
March 26,
2017
 
March 27,
2016
Revenues
$
6,108

 
$
5,799

 
$
12,504

 
$
11,810

Net income attributable to Qualcomm
1,481

 
1,182

 
2,236

 
2,651
v3.7.0.1
Fair Value Measurements (Tables)
 6 Months Ended
Mar. 26, 2017
Notes to Financial Statements [Abstract]  
Fair value hierarchy for assets and liabilities measured at fair value on a recurring basis
The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 26, 2017 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
3,270

 
$
2,939

 
$
—

 
$
6,209

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
319

 
772

 
—

 
1,091

Corporate bonds and notes
—

 
18,330

 
—

 
18,330

Mortgage- and asset-backed and auction rate securities
—

 
1,411

 
41

 
1,452

Equity and preferred securities and equity funds
70

 
176

 
—

 
246

Debt funds
—

 
615

 
—

 
615

Total marketable securities
389

 
21,304

 
41

 
21,734

Derivative instruments
—

 
24

 
—

 
24

Other investments
338

 
—

 
130

 
468

Total assets measured at fair value
$
3,997

 
$
24,267

 
$
171

 
$
28,435

Liabilities
 
 
 
 
 
 
 
Derivative instruments
—

 
28

 
—

 
28

Other liabilities
337

 
—

 
193

 
530

Total liabilities measured at fair value
$
337

 
$
28

 
$
193

 
$
558
v3.7.0.1
Marketable Securities (Tables)
 6 Months Ended
Mar. 26, 2017
Marketable Securities [Abstract]  
Composition of marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
March 26,
2017
 
September 25,
2016
 
March 26,
2017
 
September 25,
2016
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
255

 
$
1,116

 
$
836

 
$
1,099

Corporate bonds and notes
2,273

 
10,159

 
16,057

 
8,584

Mortgage- and asset-backed and auction rate securities
156

 
1,363

 
1,296

 
534

Equity and preferred securities and equity funds
70

 
64

 
176

 
1,682

Debt funds
104

 
—

 
511

 
1,803

 
$
2,858

 
$
12,702

 
$
18,876

 
$
13,702
Contractual maturities of available-for-sale debt securities
At March 26, 2017, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
 
 
 
Less Than
One Year
 
One to
Five Years
 
Five to
Ten Years
 
Greater Than
Ten Years
 
No Single
Maturity
Date
 
Total
$
6,979

 
$
10,513

 
$
1,396

 
$
533

 
$
2,067

 
$
21,488
Realized gains and losses on sales of available-for-sale securities
The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
For the three months ended
 
 
 
 
 
March 26, 2017
$
57

 
$
—

 
$
57

March 27, 2016
34

 
(11
)
 
23

 
 
 
 
 
 
For the six months ended
 
 
 
 
 
March 26, 2017
$
303

 
$
(107
)
 
$
196

March 27, 2016
84

 
(22
)
 
62
Composition of available-for-sale securities
Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
March 26, 2017
 
 
 
 
 
 
 
Equity securities
$
171

 
$
75

 
$
—

 
$
246

Debt securities (including debt funds)
21,360

 
156

 
(28
)
 
21,488

 
$
21,531

 
$
231

 
$
(28
)
 
$
21,734

September 25, 2016
 
 
 
 
 
 
 
Equity securities
$
1,554

 
$
204

 
$
(12
)
 
$
1,746

Debt securities (including debt funds)
24,363

 
388

 
(93
)
 
24,658

 
$
25,917

 
$
592

 
$
(105
)
 
$
26,404
Gross unrealized losses and fair values of investments in individual securities classified as available-for-sale in a continuous unrealized loss position deemed to be temporary
The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that are classified as available-for-sale and have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category (in millions):
 
March 26, 2017
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
366

 
$
(8
)
 
$
3

 
$
—

Corporate bonds and notes
2,141

 
(18
)
 
25

 
—

Mortgage- and asset-backed and auction rate securities
69

 
(1
)
 
55

 
(1
)
 
$
2,576

 
$
(27
)
 
$
83

 
$
(1
)
 
September 25, 2016
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
444

 
$
(5
)
 
$
16

 
$
—

Corporate bonds and notes
2,775

 
(12
)
 
1,033

 
(65
)
Mortgage- and asset-backed and auction rate securities
337

 
(3
)
 
211

 
(2
)
Equity and preferred securities and equity funds
312

 
(4
)
 
130

 
(8
)
Debt funds
—

 
—

 
309

 
(6
)
 
$
3,868

 
$
(24
)
 
$
1,699

 
$
(81
)
v3.7.0.1
Basis of Presentation Earnings Per Common Share (Details) - shares
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Basis of Presentation [Abstract]        
Dilutive common share equivalents 11,284,000 10,734,000 14,156,000 12,582,000
Common share equivalents excluded from computation of diluted EPS 10,823,000 6,899,000 5,443,000 4,036,000
v3.7.0.1
Basis of Presentation Share-Based Compensation (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense before income taxes $ 246 $ 247 $ 485 $ 494
Related income tax benefit (36) (27) (84) (87)
Share-based compensation expense, net of income taxes 210 220 401 407
Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Unrecognized compensation costs related to non-vested restricted stock units 1,300   $ 1,300  
Weighted-average period over which unrecognized compensation expense related to nonvested restricted stock units is expected to be recognized     1 year 11 months  
Cost of equipment and service revenues [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense before income taxes 10 10 $ 20 20
Research and development [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense before income taxes 155 161 308 326
Selling, general and administrative [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense before income taxes $ 81 $ 76 $ 157 $ 148
v3.7.0.1
Composition of Certain Financial Statement Items Accounts Receivable (Details) - USD ($)
$ in Millions
Mar. 26, 2017
Sep. 25, 2016
Accounts Receivable [Abstract]    
Trade, net of allowance for doubtful accounts of $1 and $1, respectively $ 4,177 $ 2,194
Long-term contracts 12 20
Other 12 5
Accounts receivable, net 4,201 2,219
Allowance for doubtful accounts related to trade receivables $ 1 $ 1
v3.7.0.1
Composition of Certain Financial Statement Items Inventories (Details) - USD ($)
$ in Millions
Mar. 26, 2017
Sep. 25, 2016
Inventory, Net [Abstract]    
Raw materials $ 73 $ 1
Work-in-process 1,018 847
Finished goods 975 708
Inventories $ 2,066 $ 1,556
v3.7.0.1
Composition of Certain Financial Statement Items Other Current Liabilities (Details) - USD ($)
$ in Millions
Mar. 26, 2017
Sep. 25, 2016
Other Current Liabilities [Line Items]    
Customer incentives and other customer-related liabilities $ 2,665 $ 1,710
Other 890 551
Other current liabilities 5,450 2,261
Blackberry [Member]    
Other Current Liabilities [Line Items]    
Loss contingency accrual 974 0
KFTC [Member]    
Other Current Liabilities [Line Items]    
Loss contingency accrual $ 921 $ 0
v3.7.0.1
Composition of Certain Financial Statement Items Other Income, Costs and Expenses (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 26, 2017
Mar. 27, 2016
Gain on sale of wireless spectrum   $ 0 $ 380
Proceeds from sale of wireless spectrum   0 232
Deferred payments     275
Other Operating Income (Expense) [Member]      
Restructuring and restructuring-related charges $ 25 33 129
Gain on sale of wireless spectrum     380
Gain on Disposition of Business     $ 48
Other Operating Income (Expense) [Member] | KFTC [Member]      
Foreign currency losses related to KFTC accrual $ 53    
KFTC fine   $ 921  
Minimum [Member]      
Deferred payments, Due date     Jan. 01, 2020
Maximum [Member]      
Deferred payments, Due date     Dec. 31, 2023
v3.7.0.1
Composition of Certain Financial Statement Items Investment Income, Net (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Investment Income, Net [Abstract]        
Interest and dividend income $ 153 $ 158 $ 320 $ 295
Net realized gains on marketable securities 67 1 206 43
Net realized gains on other investments 21 23 30 30
Impairment losses on marketable securities (3) (41) (125) (90)
Impairment losses on other investments (2) (2) (23) (16)
Equity in net losses of investees (14) (11) (11) (31)
Net gains (losses) on derivative investments 13 (1) 20 (5)
Investment income, net $ 235 $ 127 $ 417 $ 226
v3.7.0.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 26, 2017
Mar. 26, 2017
Sep. 24, 2017
Sep. 25, 2016
Income Taxes [Line Items]        
Effective income tax rate 13.00%     17.00%
Tax benefits from foreign income taxed at rates lower than rates in the United States       16.00%
Tax benefit from a worthless stock deduction on a domestic subsidiary       $ 101
Tax benefits as a result of R&D tax credit reinstatement related to prior years       79
Unrecognized Tax Benefits $ 279 $ 279   $ 271
Scenario, Forecast [Member]        
Income Taxes [Line Items]        
Effective income tax rate     17.00%  
Tax benefits from foreign income taxed at rates lower than rates in the United States     21.00%  
KFTC [Member] | Other Operating Income (Expense) [Member]        
Income Taxes [Line Items]        
KFTC fine   $ 921    
v3.7.0.1
Stockholders' Equity Changes in Stockholders' Equity (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Dec. 25, 2016
Mar. 27, 2016
Dec. 27, 2015
Mar. 26, 2017
Mar. 27, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Balance at beginning of the period   $ 31,768     $ 31,768  
Net income attributable to Qualcomm $ 749   $ 1,164   1,431 $ 2,662
Net Loss attributable to noncontrolling interests 0   0     (2)
Net income 749   1,164   1,431 2,660
Other comprehensive loss 43   91   (198) (35)
Common stock issued under employee benefit plans and related tax benefits         320  
Share-based compensation         515  
Tax withholdings related to vesting of share-based payments         (175)  
Dividends (798) (801) $ (726) $ (730) (1,599) (1,456)
Stock repurchases         (727) $ (3,600)
Other         (1)  
Balance at end of the period 31,334       31,334  
Parent [Member]            
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Balance at beginning of the period   31,778     31,778  
Net income attributable to Qualcomm         1,431  
Other comprehensive loss attributable to Qualcomm         (198)  
Common stock issued under employee benefit plans and related tax benefits         320  
Share-based compensation         515  
Tax withholdings related to vesting of share-based payments         (175)  
Dividends         (1,599)  
Stock repurchases         (727)  
Other         (1)  
Balance at end of the period 31,344       31,344  
Noncontrolling Interests [Member]            
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Balance at beginning of the period   $ (10)     (10)  
Net Loss attributable to noncontrolling interests         0  
Other comprehensive loss attributable to noncontrolling interest         0  
Common stock issued under employee benefit plans and related tax benefits         0  
Share-based compensation         0  
Tax withholdings related to vesting of share-based payments         0  
Dividends         0  
Stock repurchases         0  
Other         0  
Balance at end of the period $ (10)       $ (10)  
v3.7.0.1
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     $ 428  
Balance at end of period $ 230   230  
Investment income, net 235 $ 127 417 $ 226
Foreign Currency Translation Adjustment [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (161)  
Other comprehensive (loss) income before reclassifications     (10)  
Reclassifications from accumulated other comprehensive (loss) income     0  
Other comprehensive (loss) income     (10)  
Balance at end of period (171)   (171)  
Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     6  
Other comprehensive (loss) income before reclassifications     6  
Reclassifications from accumulated other comprehensive (loss) income     11  
Other comprehensive (loss) income     17  
Balance at end of period 23   23  
Net Unrealized Gain (Loss) on Other Available-for-Sale Securities [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     532  
Other comprehensive (loss) income before reclassifications     (141)  
Reclassifications from accumulated other comprehensive (loss) income     (59)  
Other comprehensive (loss) income     (200)  
Balance at end of period 332   332  
Net Unrealized Gain (Loss) on Derivative Instruments [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     51  
Other comprehensive (loss) income before reclassifications     (3)  
Reclassifications from accumulated other comprehensive (loss) income     (2)  
Other comprehensive (loss) income     (5)  
Balance at end of period 46   46  
Total Accumulated Other Comprehensive Income [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     428  
Other comprehensive (loss) income before reclassifications     (148)  
Reclassifications from accumulated other comprehensive (loss) income     (50)  
Other comprehensive (loss) income     (198)  
Balance at end of period 230   230  
Reclassification out of Accumulated Other Comprehensive Income [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Investment income, net $ 35 $ 11 $ 48 $ 18
v3.7.0.1
Stockholders' Equity Share Repurchase Program (Details) - USD ($)
 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 09, 2015
Equity, Class of Treasury Stock [Line Items]      
Authorized amount     $ 15,000,000,000
Stock repurchased and retired during period, shares 11,488,000 68,335,000  
Stock repurchased and retired during period, value $ 727,000,000 $ 3,600,000,000  
Remaining authorized amount $ 2,300,000,000    
v3.7.0.1
Stockholders' Equity Dividends (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 6 Months Ended
Apr. 12, 2017
May 31, 2017
Jun. 21, 2017
Mar. 26, 2017
Dec. 25, 2016
Mar. 27, 2016
Dec. 27, 2015
Mar. 26, 2017
Mar. 27, 2016
Mar. 07, 2017
Dividends [Line Items]                    
Percentage increase common stock dividend per share announced                   7.50%
Dividends per share announced       $ 0.53 $ 0.53 $ 0.48 $ 0.48 $ 1.06 $ 0.96  
Amount of increased quarterly common stock cash dividends per share announced                   $ 0.57
Dividends charged to retained earnings       $ 798 $ 801 $ 726 $ 730 $ 1,599 $ 1,456  
Subsequent Event [Member]                    
Dividends [Line Items]                    
Dividends per share announced $ 0.57                  
Dividends Payable, Date declared Apr. 12, 2017                  
Dividends Payable, Date to be paid     Jun. 21, 2017              
Dividends Payable, Date of record   May 31, 2017                
v3.7.0.1
Credit Facilities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 26, 2017
Mar. 26, 2017
Sep. 25, 2016
Oct. 27, 2016
Line of Credit Facility [Abstract]        
Commercial Paper $ 1,998 $ 1,998 $ 1,749  
Commercial Paper [Member]        
Line of Credit Facility [Abstract]        
Credit Facility, Maximum Borrowing Capacity $ 5,000 $ 5,000    
Commercial Paper, Weighted Average Interest Rate 0.82% 0.82% 0.52%  
Commercial Paper [Member] | Minimum [Member]        
Line of Credit Facility [Abstract]        
Debt Instrument, Term   1 day    
Commercial Paper [Member] | Maximum [Member]        
Line of Credit Facility [Abstract]        
Debt Instrument, Term   397 days    
Commercial Paper [Member] | Weighted Average [Member]        
Line of Credit Facility [Abstract]        
Commercial Paper, Weighted Average Remaining Term   39 days 36 days  
Bridge Loan Facility [Member]        
Line of Credit Facility [Abstract]        
Credit Facility, Maximum Borrowing Capacity $ 7,100 $ 7,100   $ 13,600
Line of Credit Facility, Decrease 2,500      
Line of Credit Facility, Description   will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the Bridge Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP and (iii) October 27, 2017 (unless such date is extended in accordance with the NXP purchase agreement).    
Line of Credit Facility, Interest Rate Description   will bear interest at either the reserve-adjusted Eurodollar Rate (determined in accordance with the Bridge Loan Facility) or the Base Rate (determined in accordance with the Bridge Loan Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurodollar Rate and the Base Rate will be 0.75% and 0.00% per annum, respectively, and will adjust 90 days, 180 days and 270 days after the Bridge Loan Facility is funded to 1.00% and 0.00%, respectively, 1.25% and 0.25%, respectively, and 1.50% and 0.50%, respectively.    
Debt Instrument, Fee   Loans outstanding under the Bridge Loan Facility will also incur duration fees equal to 0.50%, 0.75% and 1.00% of the outstanding principal amount of Bridge Loan Facility loans on the dates that are 90 days, 180 days and 270 days after the funding date, respectively.    
Debt Instrument, Term   364 days    
Line of Credit Facility, Covenant Terms   maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter    
Line of Credit Facility, Covenant Compliance   the Company was in compliance with the applicable covenants    
Line of Credit Facility, Commitment Fee Description   The Bridge Loan Facility also has a ticking fee, which initially accrues at a rate of 0.05% per annum commencing on December 26, 2016.    
Term Loan Facility [Member]        
Line of Credit Facility [Abstract]        
Credit Facility, Maximum Borrowing Capacity 4,000 $ 4,000    
Line of Credit Facility, Description   will expire on the first to occur of (i) the consummation of the proposed acquisition of NXP without using loans under the Term Loan Facility, (ii) the termination of Qualcomm River Holdings’s obligation to consummate the proposed acquisition of NXP and (iii) October 27, 2017 (unless such date is extended in accordance with the NXP purchase agreement).    
Line of Credit Facility, Interest Rate Description   will bear interest at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the Term Loan Facility) or the Base Rate (determined in accordance with the Term Loan Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate will be 0.875% and 0.00% per annum, respectively.    
Debt Instrument, Term   3 years    
Line of Credit Facility, Covenant Terms   maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter    
Line of Credit Facility, Covenant Compliance   the Company was in compliance with the applicable covenants    
Line of Credit Facility, Commitment Fee Description   The Term Loan Facility has a ticking fee, which initially accrues at a rate of 0.05% per annum commencing on December 26, 2016.    
Revolving Credit Facility [Member]        
Line of Credit Facility [Abstract]        
Credit Facility, Maximum Borrowing Capacity 5,000 $ 5,000    
Line of Credit Facility, Interest Rate Description   Loans under the Amended and Restated Revolving Credit Facility will bear interest, at the option of the Company, at either the reserve-adjusted Eurocurrency Rate (determined in accordance with the Amended and Restated Revolving Credit Facility) or the Base Rate (determined in accordance with the Amended and Restated Revolving Credit Facility), in each case plus an applicable margin based on the Company’s long-term unsecured senior, non-credit enhanced debt ratings. The initial margins over the reserve-adjusted Eurocurrency Rate and the Base Rate will be 0.70% and 0.00% per annum, respectively    
Debt Instrument, Fee   The Amended and Restated Revolving Credit Facility has a facility fee, which initially accrues at a rate of 0.05% per annum.    
Line of Credit Facility, Covenant Terms   maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in each of the respective agreements, of not less than three to one at the end of each fiscal quarter    
Line of Credit Facility, Covenant Compliance   the Company was in compliance with the applicable covenants    
Revolving Credit Facility [Member] | February 2020 [Member]        
Line of Credit Facility [Abstract]        
Credit Facility, Maximum Borrowing Capacity 530 $ 530    
Credit Facility, Expiration Date   Feb. 18, 2020    
Revolving Credit Facility [Member] | November 2021 [Member]        
Line of Credit Facility [Abstract]        
Credit Facility, Maximum Borrowing Capacity $ 4,470 $ 4,470    
Credit Facility, Expiration Date   Nov. 08, 2021    
v3.7.0.1
Debt Long-term Debt (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Sep. 25, 2016
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 10,000   $ 10,000
Unamortized discount including debt issuance costs, Net (53)   (57)
Hedge accounting fair value adjustments (8)   65
Total long-term debt 9,939   10,008
Long-term Debt, Fair Value 10,100   10,600
Interest paid related to commercial paper and long-term debt, net of cash received from the related interest rate swaps 150 $ 137  
Floating-rate notes due May 18, 2018 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 250   $ 250
Long-term debt, Effective Interest Rate 1.38%   1.14%
Long-term debt, Maturity date May 18, 2018   May 18, 2018
Long-term debt, Interest rate terms The interest rate on the floating rate notes due in 2018 and 2020 for a particular interest period will be a per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.27% and 0.55%, respectively.    
Floating-rate notes due May 20, 2020 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 250   $ 250
Long-term debt, Effective Interest Rate 1.66%   1.42%
Long-term debt, Maturity date May 20, 2020   May 20, 2020
Long-term debt, Interest rate terms The interest rate on the floating rate notes due in 2018 and 2020 for a particular interest period will be a per annum rate equal to three-month LIBOR as determined on the interest determination date plus 0.27% and 0.55%, respectively.    
Fixed-rate 1.40% notes due May 18, 2018 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 1,250   $ 1,250
Long-term debt, Effective Interest Rate 1.59%   0.93%
Long-term debt, Stated Interest Rate 1.40%   1.40%
Long-term debt, Maturity date May 18, 2018   May 18, 2018
Fixed-rate 2.25% notes due May 20, 2020 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 1,750   $ 1,750
Long-term debt, Effective Interest Rate 2.10%   1.69%
Long-term debt, Stated Interest Rate 2.25%   2.25%
Long-term debt, Maturity date May 20, 2020   May 20, 2020
Percentage of Debt Hedged by Interest Rate Derivatives     43.00%
Fixed-rate 3.00% notes due May 20, 2022 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 2,000   $ 2,000
Long-term debt, Effective Interest Rate 2.58%   2.04%
Long-term debt, Stated Interest Rate 3.00%   3.00%
Long-term debt, Maturity date May 20, 2022   May 20, 2022
Percentage of Debt Hedged by Interest Rate Derivatives     50.00%
Fixed-rate 3.45% notes due May 20, 2025 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 2,000   $ 2,000
Long-term debt, Effective Interest Rate 3.46%   3.46%
Long-term debt, Stated Interest Rate 3.45%   3.45%
Long-term debt, Maturity date May 20, 2025   May 20, 2025
Fixed-rate 4.65% notes due May 20, 2035 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 1,000   $ 1,000
Long-term debt, Effective Interest Rate 4.74%   4.74%
Long-term debt, Stated Interest Rate 4.65%   4.65%
Long-term debt, Maturity date May 20, 2035   May 20, 2035
Fixed-rate 4.80% notes due May 20, 2045 [Member]      
Long-term Debt [Abstract]      
Long-term debt, Principal amount $ 1,500   $ 1,500
Long-term debt, Effective Interest Rate 4.71%   4.71%
Long-term debt, Stated Interest Rate 4.80%   4.80%
Long-term debt, Maturity date May 20, 2045   May 20, 2045
Interest Rate Swaps [Member]      
Long-term Debt [Abstract]      
Gross notional amount of Derivatives $ 3,000    
v3.7.0.1
Commitments and Contingencies Legal Proceedings (Details)
₩ in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2017
USD ($)
Mar. 26, 2017
USD ($)
Mar. 26, 2017
KRW (₩)
Blackberry [Member]      
Loss Contingencies [Line Items]      
Litigation Settlement, Amount   $ 815  
Loss Contingency, Loss in Period   $ 974  
KFTC [Member] | Korea (South), Won      
Loss Contingencies [Line Items]      
Loss Contingency, Loss in Period | ₩     ₩ 1,030,000
Subsequent Event [Member] | KFTC [Member]      
Loss Contingencies [Line Items]      
Payment of KFTC Charge $ 927    
v3.7.0.1
Commitments and Contingencies Purchase Obligations (Details)
$ in Millions
Mar. 26, 2017
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
Remainder of fiscal 2017 - Unrecorded obligations $ 4,000
Fiscal 2018 - Unrecorded obligations 1,200
Fiscal 2019 - Unrecorded obligations 955
Fiscal 2020 - Unrecorded obligations 356
Fiscal 2021 - Unrecorded obligations 117
Thereafter - Unrecorded obligations 29
Inventories [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Remainder of fiscal 2017 - Unrecorded obligations 3,300
Fiscal 2018 - Unrecorded obligations 918
Fiscal 2019 - Unrecorded obligations 829
Fiscal 2020 - Unrecorded obligations 281
Fiscal 2021 - Unrecorded obligations 76
Thereafter - Unrecorded obligations $ 28
v3.7.0.1
Commitments and Contingencies Operating Leases (Details)
$ in Millions
 6 Months Ended
Mar. 26, 2017
USD ($)
Leases, Operating [Abstract]  
Description of Leasing Arrangements, Operating Leases The Company leases certain of its land, facilities and equipment under noncancelable operating leases, with terms ranging from less than one year to 21 years and with provisions in certain leases for cost-of-living increases.
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]  
Remainder of fiscal 2017 - Operating Leases $ 61
Fiscal 2018 - Operating leases 107
Fiscal 2019 - Operating leases 93
Fiscal 2020 - Operating leases 68
Fiscal 2021 - Operating leases 53
Thereafter - Operating leases $ 63
v3.7.0.1
Commitments and Contingencies Other Commitments (Details)
$ in Millions
Mar. 26, 2017
USD ($)
Other Commitments [Abstract]  
Other Commitments $ 305
Remainder of fiscal 2017 - Other Commitments $ 73
v3.7.0.1
Segment Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Sep. 25, 2016
Segment Reporting Information [Line Items]          
Segment Reporting, Factors Used to Identify Entity's Reportable Segments     The Company is organized on the basis of products and services. The Company conducts business primarily through two reportable segments, QCT (Qualcomm CDMA Technologies) and QTL (Qualcomm Technology Licensing), and its QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments and includes revenues and related costs associated with development contracts with an equity method investee    
Revenues $ 5,016 $ 5,551 $ 11,015 $ 11,326  
Earnings before taxes 857 1,470 1,727 3,180  
Total assets 56,079   56,079   $ 52,359
Cost of revenues (2,208) (2,141) (4,651) (4,675)  
Research and development expense (1,386) (1,301) (2,697) (2,653)  
Selling, general and administrative expense (615) (619) (1,206) (1,198)  
Other expenses, net (78) (75) (954) 299  
Interest expense (107) (72) (197) (145)  
Investment income, net 235 127 417 226  
QCT [Member]          
Segment Reporting Information [Line Items]          
Revenues 3,676 3,337 7,777 7,433  
Earnings before taxes 475 170 1,199 760  
Total assets 3,969   3,969   2,995
QTL [Member]          
Segment Reporting Information [Line Items]          
Revenues 2,249 2,135 4,060 3,742  
Earnings before taxes 1,959 1,857 3,492 3,195  
Total assets 2,232   2,232   644
QSI [Member]          
Segment Reporting Information [Line Items]          
Revenues 0 12 14 21  
Earnings before taxes 0 46 (17) 405  
Total assets 1,014   1,014   910
Nonreportable Segments [Member]          
Segment Reporting Information [Line Items]          
Revenues 65 68 138 132  
Earnings before taxes (108) (117) (189) (239)  
Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Revenues (909) 67 (836) 130  
Earnings before taxes (1,577) (603) (2,947) (1,180)  
Total assets 48,864   48,864   $ 47,810
Cost of revenues (119) (115) (213) (266)  
Research and development expense (277) (186) (546) (402)  
Selling, general and administrative expense (138) (125) (283) (252)  
Other expenses, net (78) (75) (954) (81)  
Interest expense (106) (71) (195) (143)  
Investment income, net 223 89 407 203  
Intersegment Eliminations [Member]          
Segment Reporting Information [Line Items]          
Revenues 0 (1) 0 (2)  
Earnings before taxes 0 (3) 0 0  
Cost of equipment and service revenues [Member] | Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Unallocated acquisition-related expenses 106 105 191 246  
Research and development expenses [Member] | Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Unallocated acquisition-related expenses 12 2 14 5  
Selling, general and administrative expenses [Member] | Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Unallocated acquisition-related expenses 57 28 118 57  
Blackberry [Member] | Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Revenues $ (974) $ 0 $ (974) $ 0  
v3.7.0.1
Acquisitions (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended 30 Months Ended
Mar. 26, 2017
USD ($)
$ / shares
Mar. 27, 2016
USD ($)
Mar. 26, 2017
USD ($)
$ / shares
Mar. 27, 2016
USD ($)
Aug. 03, 2019
USD ($)
Feb. 03, 2017
USD ($)
projects
Oct. 27, 2016
USD ($)
Sep. 25, 2016
USD ($)
Business Acquisition [Line Items]                
Goodwill $ 6,497   $ 6,497         $ 5,679
RF360 Holdings [Member]                
Business Acquisition [Line Items]                
Business Acquisition, Percentage of Voting Interests Acquired 51.00%   51.00%          
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners 49.00%   49.00%          
Time period after which option becomes exercisable     30 months          
Maximum amount of contingent consideration $ 200   $ 200          
Cash consideration     1,463          
Fair value of put and call option to acquire noncontrolling interest 1,112   1,112          
Fair value of contingent consideration and deferred payments 492   492          
Total purchase price     3,067          
Cash and cash equivalents           $ 306    
Accounts receivable           303    
Inventories           261    
Property, plant and equipment           838    
Goodwill           808    
Other assets           42    
Total assets           3,466    
Liabilities           (399)    
Assets acquired and liabilities assumed, net           3,067    
Business Acquisition, Goodwill, Expected Tax Deductible Amount 269   269          
Pro forma revenues 6,108 $ 5,799 12,504 $ 11,810        
Pro forma net income attributable to Qualcomm $ 1,481 $ 1,182 $ 2,236 $ 2,651        
NXP [Member]                
Business Acquisition [Line Items]                
Business Acquisition, Date of Acquisition Agreement     Oct. 27, 2016          
Cash consideration     $ 38,000          
Business Acquisition, Share Price | $ / shares $ 110   $ 110          
Business Combination, Termination Fee, Specified Circumstances, Payable to Acquirer     $ 1,250          
Business Combination, Termination Fee, Specified Circumstances, Payable to Target     2,000          
Letters of Credit Outstanding, Amount $ 2,000   $ 2,000          
Minimum [Member] | NXP [Member]                
Business Acquisition [Line Items]                
Business Acquisition, Percentage of Voting Interests Acquired 80.00%   80.00%          
Minimum [Member] | Minimum subject to NXP written consent (Member) [Member]                
Business Acquisition [Line Items]                
Business Acquisition, Percentage of Voting Interests Acquired 70.00%   70.00%          
NXP Committed Financing [Member]                
Business Acquisition [Line Items]                
Line of Credit Facility, Maximum Borrowing Capacity $ 11,100   $ 11,100          
Term Loan Facility [Member]                
Business Acquisition [Line Items]                
Line of Credit Facility, Maximum Borrowing Capacity 4,000   4,000          
Bridge Loan Facility [Member]                
Business Acquisition [Line Items]                
Line of Credit Facility, Maximum Borrowing Capacity $ 7,100   $ 7,100       $ 13,600  
Technology-Based Intangible Assets [Member] | RF360 Holdings [Member]                
Business Acquisition [Line Items]                
Intangibles assets subject to amortization           738    
Weighted-average amortization period     7 years          
Customer-Related Intangible Assets [Member] | RF360 Holdings [Member]                
Business Acquisition [Line Items]                
Intangibles assets subject to amortization           87    
Weighted-average amortization period     9 years          
Marketing-Related Intangible Assets [Member] | RF360 Holdings [Member]                
Business Acquisition [Line Items]                
Intangibles assets subject to amortization           8    
Weighted-average amortization period     1 year          
Other Intangible Assets [Member] | RF360 Holdings [Member]                
Business Acquisition [Line Items]                
In-process research and development (IPR&D)           $ 75    
Number Of In-Process Research And Development Projects | projects           2    
In-Process Research and Development Estimated Useful Life Upon Completion     6 years          
Scenario, Forecast [Member] | RF360 Holdings [Member]                
Business Acquisition [Line Items]                
Exercise price of option to acquire noncontrolling interest         $ 1,150      
v3.7.0.1
Fair Value Measurements Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring [Member]
$ in Millions
Mar. 26, 2017
USD ($)
Assets  
Cash equivalents $ 6,209
Marketable securities 21,734
Derivative instruments 24
Other investments 468
Total assets measured at fair value 28,435
Liabilities  
Derivative instruments 28
Other liabilities 530
Total liabilities measured at fair value 558
Level 1 [Member]  
Assets  
Cash equivalents 3,270
Marketable securities 389
Derivative instruments 0
Other investments 338
Total assets measured at fair value 3,997
Liabilities  
Derivative instruments 0
Other liabilities 337
Total liabilities measured at fair value 337
Level 2 [Member]  
Assets  
Cash equivalents 2,939
Marketable securities 21,304
Derivative instruments 24
Other investments 0
Total assets measured at fair value 24,267
Liabilities  
Derivative instruments 28
Other liabilities 0
Total liabilities measured at fair value 28
Level 3 [Member]  
Assets  
Cash equivalents 0
Marketable securities 41
Derivative instruments 0
Other investments 130
Total assets measured at fair value 171
Liabilities  
Derivative instruments 0
Other liabilities 193
Total liabilities measured at fair value 193
U.S. Treasury securities and government-related securities [Member]  
Assets  
Marketable securities 1,091
U.S. Treasury securities and government-related securities [Member] | Level 1 [Member]  
Assets  
Marketable securities 319
U.S. Treasury securities and government-related securities [Member] | Level 2 [Member]  
Assets  
Marketable securities 772
U.S. Treasury securities and government-related securities [Member] | Level 3 [Member]  
Assets  
Marketable securities 0
Corporate bonds and notes [Member]  
Assets  
Marketable securities 18,330
Corporate bonds and notes [Member] | Level 1 [Member]  
Assets  
Marketable securities 0
Corporate bonds and notes [Member] | Level 2 [Member]  
Assets  
Marketable securities 18,330
Corporate bonds and notes [Member] | Level 3 [Member]  
Assets  
Marketable securities 0
Mortgage- and asset-backed and auction rate securities [Member]  
Assets  
Marketable securities 1,452
Mortgage- and asset-backed and auction rate securities [Member] | Level 1 [Member]  
Assets  
Marketable securities 0
Mortgage- and asset-backed and auction rate securities [Member] | Level 2 [Member]  
Assets  
Marketable securities 1,411
Mortgage- and asset-backed and auction rate securities [Member] | Level 3 [Member]  
Assets  
Marketable securities 41
Equity and preferred securities and equity funds [Member]  
Assets  
Marketable securities 246
Equity and preferred securities and equity funds [Member] | Level 1 [Member]  
Assets  
Marketable securities 70
Equity and preferred securities and equity funds [Member] | Level 2 [Member]  
Assets  
Marketable securities 176
Equity and preferred securities and equity funds [Member] | Level 3 [Member]  
Assets  
Marketable securities 0
Debt funds [Member]  
Assets  
Marketable securities 615
Debt funds [Member] | Level 1 [Member]  
Assets  
Marketable securities 0
Debt funds [Member] | Level 2 [Member]  
Assets  
Marketable securities 615
Debt funds [Member] | Level 3 [Member]  
Assets  
Marketable securities $ 0
v3.7.0.1
Marketable Securities (Details) - USD ($)
$ in Millions
Mar. 26, 2017
Sep. 25, 2016
Schedule of Marketable Securities [Line Items]    
Total marketable securities - Current $ 2,858 $ 12,702
Total marketable securities - Noncurrent 18,876 13,702
U.S. Treasury securities and government-related securities [Member]    
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 255 1,116
Available-for-sale - Noncurrent 836 1,099
Corporate bonds and notes [Member]    
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 2,273 10,159
Available-for-sale - Noncurrent 16,057 8,584
Mortgage- and asset-backed and auction rate securities [Member]    
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 156 1,363
Available-for-sale - Noncurrent 1,296 534
Equity and preferred securities and equity funds [Member]    
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 70 64
Available-for-sale - Noncurrent 176 1,682
Debt funds [Member]    
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 104 0
Available-for-sale - Noncurrent $ 511 $ 1,803
v3.7.0.1
Marketable Securities Available-for-sale Securities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 26, 2017
Mar. 27, 2016
Mar. 26, 2017
Mar. 27, 2016
Sep. 25, 2016
Contractual maturities of available-for-sale debt securities [Abstract]          
Years to Maturity - Less Than One Year $ 6,979   $ 6,979    
Years to Maturity - One to Five Years 10,513   10,513    
Years to Maturity - Five to Ten Years 1,396   1,396    
Years to Maturity - Greater Than Ten Years 533   533    
Years to Maturity - No Single Maturity Date 2,067   2,067    
Realized Gains and Losses on Sales of Available-for-sale Securities [Abstract]          
Gross Realized Gains 57 $ 34 303 $ 84  
Gross Realized Losses 0 (11) (107) (22)  
Net Realized Gains 57 $ 23 196 $ 62  
Available-for-sale Securities [Abstract]          
Available-for-sale Equity Securities, Cost 171   171   $ 1,554
Available-for-sale Equity Securities, Unrealized Gains 75   75   204
Available-for-sale Equity Securities, Unrealized Losses 0   0   (12)
Available-for-sale Securities Equity Securities, Fair Value 246   246   1,746
Available-for-sale Debt Securities (including debt funds), Cost 21,360   21,360   24,363
Available-for-sale Debt Securities (including debt funds), Unrealized Gains 156   156   388
Available-for-sale Debt Securities (including debt funds), Unrealized Losses (28)   (28)   (93)
Available-for-sale Debt Securities, Fair Value 21,488   21,488   24,658
Available-for-sale Securities, Cost 21,531   21,531   25,917
Available-for-sale Securities, Unrealized Gains 231   231   592
Available-for-sale Securities, Unrealized Losses (28)   (28)   (105)
Fair Value 21,734   21,734   26,404
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]          
Less than 12 months - Fair Value 2,576   2,576   3,868
More than 12 months - Fair Value 83   83   1,699
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (27)   (27)   (24)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses (1)   (1)   (81)
U.S. Treasury securities and government-related securities [Member]          
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]          
Less than 12 months - Fair Value 366   366   444
More than 12 months - Fair Value 3   3   16
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (8)   (8)   (5)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses 0   0   0
Corporate bonds and notes [Member]          
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]          
Less than 12 months - Fair Value 2,141   2,141   2,775
More than 12 months - Fair Value 25   25   1,033
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (18)   (18)   (12)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses 0   0   (65)
Mortgage- and asset-backed and auction rate securities [Member]          
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]          
Less than 12 months - Fair Value 69   69   337
More than 12 months - Fair Value 55   55   211
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (1)   (1)   (3)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses $ (1)   $ (1)   (2)
Equity and preferred securities and equity funds [Member]          
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]          
Less than 12 months - Fair Value         312
More than 12 months - Fair Value         130
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses         (4)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses         (8)
Debt funds [Member]          
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]          
Less than 12 months - Fair Value         0
More than 12 months - Fair Value         309
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses         0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses         $ (6)