QUALCOMM INC/DE, 10-Q filed on 7/20/2016
Quarterly Report
v3.5.0.2
Document and Entity Information Document - shares
9 Months Ended
Jun. 26, 2016
Jul. 18, 2016
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 --09-25  
Entity Filer Category Large Accelerated Filer  
Document Type 10-Q  
Document Period End Date Jun. 26, 2016  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   1,473,648,385
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
v3.5.0.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 26, 2016
Sep. 27, 2015
Current assets:    
Cash and cash equivalents $ 5,885 $ 7,560
Marketable securities 11,225 9,761
Accounts receivable, net 1,939 1,964
Inventories 1,338 1,492
Deferred tax assets 0 635
Other current assets 592 687
Total current assets 20,979 22,099
Marketable securities 13,922 13,626
Deferred tax assets 2,075 1,453
Property, plant and equipment, net 2,341 2,534
Goodwill 5,657 5,479
Other intangible assets, net 3,669 3,742
Other assets 2,143 1,863
Total assets 50,786 50,796
Current liabilities:    
Trade accounts payable 1,572 1,300
Payroll and other benefits related liabilities 874 861
Unearned revenues 535 583
Short-term debt 1,749 1,000
Other current liabilities 2,113 2,356
Total current liabilities 6,843 6,100
Unearned revenues 2,426 2,496
Long-term debt 10,024 9,969
Other liabilities 855 817
Total liabilities 20,148 19,382
Commitments and contingencies (Note 7)
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; 1,473 and 1,524 shares issued and outstanding, respectively 169 0
Retained earnings 30,134 31,226
Accumulated other comprehensive income 344 195
Total Qualcomm stockholders' equity 30,647 31,421
Noncontrolling interests (9) (7)
Total stockholders' equity 30,638 31,414
Total liabilities and stockholders' equity $ 50,786 $ 50,796
v3.5.0.2
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS - $ / shares
shares in Millions
Jun. 26, 2016
Sep. 27, 2015
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 8 8
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 6,000 6,000
Common stock, shares issued 1,473 1,524
Common stock, shares outstanding 1,473 1,524
v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Revenues:        
Equipment and services $ 3,875 $ 3,840 $ 11,311 $ 13,459
Licensing 2,169 1,992 6,059 6,366
Total revenues 6,044 5,832 17,370 19,825
Costs and expenses:        
Cost of equipment and services revenues 2,534 2,451 7,210 8,126
Research and development 1,268 1,407 3,922 4,133
Selling, general and administrative 620 621 1,817 1,749
Other (Note 2) 30 118 (270) 1,181
Total costs and expenses 4,452 4,597 12,679 15,189
Operating income 1,592 1,235 4,691 4,636
Interest expense (75) (32) (221) (34)
Investment income, net (Note 2) 176 195 403 634
Income before income taxes 1,693 1,398 4,873 5,236
Income tax expense (250) (215) (770) (1,029)
Net income 1,443 1,183 4,103 4,207
Net loss attributable to noncontrolling interests 1 1 3 2
Net income attributable to Qualcomm $ 1,444 $ 1,184 $ 4,106 $ 4,209
Basic earnings per share attributable to Qualcomm $ 0.98 $ 0.74 $ 2.76 $ 2.57
Diluted earnings per share attributable to Qualcomm $ 0.97 $ 0.73 $ 2.74 $ 2.53
Shares used in per share calculations:        
Basic 1,471 1,608 1,487 1,638
Diluted 1,486 1,629 1,500 1,661
Dividends per share announced $ 0.53 $ 0.48 $ 1.49 $ 1.32
v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Net income $ 1,443 $ 1,183 $ 4,103 $ 4,207
Other comprehensive income (loss), net of income taxes:        
Foreign currency translation gains (losses) 5 7 (6) (25)
Reclassification of foreign currency translation losses included in net income 15 0 21 0
Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities 1 (9) (49) (19)
Reclassification of other-than-temporary losses on available-for-sale securities included in net income 27 31 128 92
Net unrealized gains on other available-for-sale securities 176 20 135 14
Reclassification of net realized gains on available-for-sale securities included in net income (35) (76) (76) (251)
Net unrealized (losses) gains on derivative instruments (4) 58 (4) 58
Reclassification of net realized gains on derivative instruments included in net income (1) 0 0 0
Total other comprehensive income (loss) 184 31 149 (131)
Total comprehensive income 1,627 1,214 4,252 4,076
Comprehensive loss attributable to noncontrolling interests 1 1 3 2
Comprehensive income attributable to Qualcomm $ 1,628 $ 1,215 $ 4,255 $ 4,078
v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Operating Activities:    
Net income $ 4,103 $ 4,207
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 1,092 888
Indefinite and long-lived asset impairment charges 94 304
Income tax provision (less than) in excess of income tax payments (236) 159
Gain on sale of wireless spectrum (380) 0
Non-cash portion of share-based compensation expense 730 793
Incremental tax benefits from share-based compensation (3) (98)
Net realized gains on marketable securities and other investments (142) (399)
Impairment losses on marketable securities and other investments 138 161
Other items, net 0 (29)
Changes in assets and liabilities:    
Accounts receivable, net 39 438
Inventories 169 (122)
Other assets 153 (897)
Trade accounts payable 263 (769)
Payroll, benefits and other liabilities (434) (406)
Unearned revenues (270) (408)
Net cash provided by operating activities 5,316 3,822
Investing Activities:    
Capital expenditures (389) (815)
Purchases of available-for-sale securities (12,960) (13,118)
Proceeds from sales and maturities of available-for-sale securities 10,303 11,897
Purchases of trading securities (177) (1,034)
Proceeds from sales and maturities of trading securities 779 1,008
Proceeds from sales of other marketable securities 450 0
Proceeds from sales of property, plant and equipment 15 161
Acquisitions and other investments, net of cash acquired (663) (325)
Proceeds from sale of wireless spectrum 232 0
Other items, net 181 6
Net cash used by investing activities (2,229) (2,220)
Financing Activities:    
Proceeds from short-term debt 6,633 2,813
Proceeds from long-term debt 0 9,937
Repayment of short-term debt (5,885) (1,814)
Proceeds from issuance of common stock 422 571
Repurchases and retirements of common stock (3,698) (9,016)
Dividends paid (2,208) (2,142)
Incremental tax benefits from share-based compensation 3 98
Other items, net (32) 41
Net cash (used) provided by financing activities (4,765) 488
Effect of exchange rate changes on cash and cash equivalents 3 (10)
Net (decrease) increase in cash and cash equivalents (1,675) 2,080
Cash and cash equivalents at beginning of period 7,560 7,907
Cash and cash equivalents at end of period $ 5,885 $ 9,987
v3.5.0.2
Basis of Presentation (Notes)
9 Months Ended
Jun. 26, 2016
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 27, 2015. 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 nine-month periods ended June 26, 2016 and June 28, 2015 included 13 weeks and 39 weeks, respectively.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation.
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 sum of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and shares subject to written put options and/or accelerated share repurchase agreements, if any, and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost for future service that the Company has not yet recognized, if any, and the estimated tax benefits that would be recorded in paid-in capital when an award is settled, if any, are assumed to be used to repurchase shares in the current period. The dilutive common share equivalents, calculated using the treasury stock method, for the three and nine months ended June 26, 2016 were 14,812,000 and 13,325,000, respectively, and 20,749,000 and 22,447,000 for the three and nine months ended June 28, 2015, 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 1,378,000 and 3,150,000 during the three and nine months ended June 26, 2016, respectively, and 16,711,000 and 6,067,000 during the three and nine months ended June 28, 2015, 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
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Cost of equipment and services revenues
$
10

 
$
10

 
$
31

 
$
33

Research and development
152

 
176

 
478

 
508

Selling, general and administrative
73

 
85

 
221

 
252

Share-based compensation expense before income taxes
235

 
271

 
730

 
793

Related income tax benefit
(38
)
 
(58
)
 
(126
)
 
(145
)
 
$
197

 
$
213

 
$
604

 
$
648


The Company recorded $170 million and $173 million in share-based compensation expense during the nine months ended June 26, 2016 and June 28, 2015, respectively, related to share-based awards granted during those periods. At June 26, 2016, total unrecognized compensation expense related to non-vested restricted stock units granted prior to that date was $1.2 billion, which is expected to be recognized over a weighted-average period of 2.0 years. During the nine months ended June 26, 2016 and June 28, 2015, net share-based awards granted, after forfeitures and cancellations, represented 0.7% and 0.8%, respectively, of outstanding shares as of the beginning of each fiscal period, and total share-based awards granted represented 1.0% and 0.9%, respectively, of outstanding shares as of the end of each fiscal period.
Recent Accounting Pronouncements. In November 2015, the Financial Accounting Standards Board (FASB) issued new guidance related to accounting for income taxes, which requires all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. The Company early adopted the new guidance prospectively in the second quarter of fiscal 2016. Prior period amounts have not been adjusted.
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 upon transfer of goods or services 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 and is in the process of determining the adoption method as well as the effects the adoption will have on its consolidated financial statements.
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 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 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 in the income statement 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 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 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.
v3.5.0.2
Composition of Certain Financial Statement Items (Notes)
9 Months Ended
Jun. 26, 2016
Notes to Financial Statements [Abstract]  
Composition of Certain Financial Statement Items
Composition of Certain Financial Statement Items
Inventories (in millions)
 
 
 
 
June 26,
2016
 
September 27,
2015
Raw materials
$
3

 
$
1

Work-in-process
694

 
550

Finished goods
641

 
941

 
$
1,338

 
$
1,492


Other Current Liabilities (in millions)
 
 
 
 
June 26,
2016
 
September 27,
2015
Customer incentives and other customer-related liabilities
$
1,685

 
$
1,894

Other
428

 
462

 
$
2,113

 
$
2,356


Other Income, Costs and Expenses. Other expenses in the three months ended June 26, 2016 consisted of restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan (Note 10). Other income in the nine months ended June 26, 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 Initiatives) 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 nine months ended June 26, 2016 also included $158 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.
Other expenses in the three months ended June 28, 2015 consisted of $151 million and $11 million in impairment charges on goodwill and intangible assets, respectively, related to the Company’s content services business and one of our display businesses, partially offset by a $44 million gain on the sale of certain property, plant and equipment. Other expenses in the nine months ended June 28, 2015 included a $975 million charge resulting from the resolution reached with the China National Development and Reform Commission (NDRC) in the second quarter of fiscal 2015 regarding the NDRC’s investigation of the Company relating to China’s Anti-Monopoly Law. Other expenses in the nine months ended June 28, 2015 also included $255 million and $11 million in impairment charges on goodwill and intangible assets, respectively, related to the Company’s content and push-to-talk services and display businesses, partially offset by $60 million in gains on sales of certain property, plant and equipment.
Investment Income, Net (in millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Interest and dividend income
$
156

 
$
128

 
$
451

 
$
400

Net realized gains on marketable securities
56

 
117

 
99

 
381

Net realized gains on other investments
13

 
5

 
43

 
18

Impairment losses on marketable securities
(20
)
 
(42
)
 
(109
)
 
(131
)
Impairment losses on other investments
(13
)
 
(13
)
 
(29
)
 
(30
)
Equity in net losses of investees
(18
)
 
(10
)
 
(49
)
 
(23
)
Other
2

 
10

 
(3
)
 
19

 
$
176

 
$
195

 
$
403

 
$
634


Net impairment losses on marketable securities related to the noncredit portion of losses on debt securities recognized in other comprehensive income were negligible in the three months ended June 26, 2016 and June 28, 2015 and $37 million and $10 million in the nine months ended June 26, 2016 and June 28, 2015, respectively.
v3.5.0.2
Income Taxes (Notes)
9 Months Ended
Jun. 26, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company estimates its annual effective income tax rate to be approximately 17% for fiscal 2016, which is less than its 19% effective income tax rate for fiscal 2015. Tax benefits from foreign income taxed at rates lower than rates in the United States are expected to be approximately 15% in fiscal 2016, compared to 14% in fiscal 2015. The annual effective tax rate for fiscal 2016 reflects a tax benefit of $101 million from a worthless stock deduction on a domestic subsidiary of the Company’s former QMT division, which was accounted for discretely during the third quarter. During the first quarter of fiscal 2016, the United States government permanently reinstated the federal research and development tax credit retroactively to January 1, 2015. As a result of the reinstatement, the Company recorded a tax benefit of $79 million in the first quarter of fiscal 2016 related to fiscal 2015. The annual effective tax rate for fiscal 2015 reflected the fine imposed by the NDRC of $975 million (Note 2), which was not deductible for tax purposes and was substantially attributable to a foreign jurisdiction, and a $61 million tax benefit as a result of a favorable tax audit settlement with the Internal Revenue Service, both of which were accounted for discretely in the second quarter of fiscal 2015. During the first quarter of fiscal 2015, the United States government reinstated the federal research and development tax credit retroactively to January 1, 2014 through December 31, 2014. As a result of the reinstatement, the annual effective tax rate for fiscal 2015 also reflected a tax benefit of $101 million recorded in the first quarter of fiscal 2015 related to fiscal 2014.
The effective tax rate of 15% for the third quarter of fiscal 2016 was less than the estimated annual effective tax rate of 17% primarily due to a $101 million tax benefit recorded discretely in the third quarter resulting from a worthless stock deduction on a domestic subsidiary of the Company’s former QMT division, partially offset by changes in the Company’s estimates related to foreign earnings taxed at rates that are less than the United States federal tax rate and the benefit of the retroactive reinstatement of the United States federal research and development credit recorded discretely during the first quarter of fiscal 2016 related to fiscal 2015.
Unrecognized tax benefits were $210 million and $40 million at June 26, 2016 and September 27, 2015, respectively. Certain of the Company’s existing tax positions are expected to continue to generate an increase in unrecognized tax benefits through fiscal 2016. The Company believes that it is reasonably possible that the total amounts of unrecognized tax benefits at June 26, 2016 may increase or decrease in the next 12 months.
v3.5.0.2
Stockholders' Equity (Notes)
9 Months Ended
Jun. 26, 2016
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity
Stockholders’ Equity
Changes in stockholders’ equity for the nine months ended June 26, 2016 were as follows (in millions):
 
Qualcomm Stockholders’ Equity
 
Noncontrolling Interests
 
Total Stockholders’ Equity
Balance at September 27, 2015
$
31,421

 
$
(7
)
 
$
31,414

Net income (loss)
4,106

 
(3
)
 
4,103

Other comprehensive income
149

 

 
149

Common stock issued under employee benefit plans and related tax benefits
364

 

 
364

Share-based compensation
771

 

 
771

Tax withholdings related to vesting of share-based payments
(216
)
 

 
(216
)
Dividends
(2,250
)
 

 
(2,250
)
Stock repurchases
(3,699
)
 

 
(3,699
)
Other
1

 
1

 
2

Balance at June 26, 2016
$
30,647

 
$
(9
)
 
$
30,638


Accumulated Other Comprehensive Income. Changes in the components of accumulated other comprehensive income, net of income taxes, in Qualcomm stockholders’ equity during the nine months ended June 26, 2016 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 27, 2015
$
(160
)
 
$
4

 
$
297

 
$
54

 
$
195

Other comprehensive (loss) income before reclassifications
(6
)
 
8

 
135

 
(4
)
 
133

Reclassifications from accumulated other comprehensive income (loss)
21

 
(11
)
 
6

 

 
16

Other comprehensive income (loss)
15

 
(3
)
 
141

 
(4
)
 
149

Balance at June 26, 2016
$
(145
)
 
$
1

 
$
438

 
$
50

 
$
344


Reclassifications from accumulated other comprehensive income related to net gains on available-for-sale securities of $22 million and $5 million for the three and nine months ended June 26, 2016, respectively, and $48 million and $166 million for the three and nine months ended June 28, 2015, respectively, were recorded in investment income, net (Note 2). Reclassifications from accumulated other comprehensive income related to foreign currency translation losses of $15 million and $21 million for the three and nine months ended June 26, 2016, respectively, were recorded in selling, general and administrative expenses and other operating expenses. Reclassifications from accumulated other comprehensive income related to foreign currency translation adjustments during the three and nine months ended June 28, 2015 were negligible.
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 May 2015, the Company entered into two accelerated share repurchase agreements (ASR Agreements) with two financial institutions under which the Company paid an aggregate of $5.0 billion upfront to the financial institutions and received from them an initial delivery of 57,737,000 shares of the Company’s common stock, which were retired. The ASR Agreements were settled in the fourth quarter of fiscal 2015. During the nine months ended June 28, 2015, the Company repurchased and retired an additional 56,652,000 shares of common stock for $4.0 billion, before commissions. During the nine months ended June 26, 2016, the Company repurchased and retired 70,168,000 shares of common stock for $3.7 billion, before commissions. At June 26, 2016, $3.2 billion remained authorized for repurchase under the Company’s stock repurchase program.
Dividends. On July 12, 2016, the Company announced a cash dividend of $0.53 per share on the Company’s common stock, payable on September 21, 2016 to stockholders of record as of the close of business on August 31, 2016. During the nine months ended June 26, 2016 and June 28, 2015, dividends charged to retained earnings were as follows (in millions, except per share data):
 
2016
 
2015
 
Per Share
 
Total
 
Per Share
 
Total
First quarter
$
0.48

 
$
730

 
$
0.42

 
$
710

Second quarter
0.48

 
726

 
0.42

 
702

Third quarter
0.53

 
794

 
0.48

 
771

 
$
1.49

 
$
2,250

 
$
1.32

 
$
2,183

v3.5.0.2
Employee Benefit Plans (Notes)
9 Months Ended
Jun. 26, 2016
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
Equity Compensation Plans. On March 8, 2016, the Company’s stockholders approved the Qualcomm Incorporated 2016 Long-Term Incentive Plan (the 2016 Plan), which replaced the Qualcomm Incorporated 2006 Long-Term Incentive Plan (the Prior Plan). Effective on and after that date, no new awards will be granted under the Prior Plan, although all outstanding awards under the Prior Plan will remain outstanding according to their terms and the terms of the Prior Plan. The 2016 Plan provides for the grant of incentive and nonstatutory stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance units, performance shares, deferred compensation awards and other stock-based awards. The share reserve under the 2016 Plan is equal to 90,000,000 shares, plus approximately 20,120,000 shares that were available for future grant under the Prior Plan on March 8, 2016, for a total of approximately 110,120,000 shares available for grant under the 2016 Plan on that date. This share reserve is automatically increased as provided in the 2016 Plan by the number of shares subject to stock options granted under the Prior Plan and outstanding as of March 8, 2016, which after that date expire or for any reason are forfeited, canceled or terminated, and by two times the number of shares subject to any awards other than stock options granted under the Prior Plan and outstanding as of March 8, 2016, which after that date expire, are forfeited, canceled or terminated, fail to vest, are not earned due to any performance goal that is not met, are otherwise reacquired without having become vested, or are paid in cash, exchanged by a participant or withheld by the Company to satisfy any tax withholding or tax payment obligations related to such award. The Board of Directors of the Company may amend or terminate the 2016 Plan at any time. Certain amendments, including an increase in the share reserve, require stockholder approval.
v3.5.0.2
Debt (Notes)
9 Months Ended
Jun. 26, 2016
Debt Disclosure [Abstract]  
Debt
Debt
Revolving Credit Facility. The Company has a Revolving Credit Facility that provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $4.0 billion, expiring in February 2020. The Revolving Credit Facility requires 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 the Revolving Credit Facility, of not less than three to one at the end of each fiscal quarter. At June 26, 2016 and September 27, 2015, the Company was in compliance with the covenants, and the Company had not borrowed any funds under the Revolving Credit Facility.
Commercial Paper Program. The Company has an unsecured commercial paper program, which provides for the issuance of up to $4.0 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 June 26, 2016 and September 27, 2015, the Company had $1.7 billion and $1.0 billion, respectively, of outstanding commercial paper recorded as short-term debt with weighted-average interest rates of 0.50% and 0.19%, respectively, which included fees paid to the commercial paper dealers, and weighted-average remaining days to maturity of 37 days and 38 days, respectively. The carrying value of the outstanding commercial paper approximated its estimated fair value at June 26, 2016 and September 27, 2015.
Long-term Debt. The following table provides a summary of the Company’s long-term debt (in millions except percentages):
 
June 26, 2016
 
September 27, 2015
 
Amount
 
Effective
Rate
 
Amount
 
Effective
Rate
Floating-rate notes due May 18, 2018
$
250

 
0.97%
 
$
250

 
0.66%
Floating-rate notes due May 20, 2020
250

 
1.24%
 
250

 
0.94%
Fixed-rate 1.40% notes due May 18, 2018
1,250

 
0.53%
 
1,250

 
0.43%
Fixed-rate 2.25% notes due May 20, 2020
1,750

 
1.55%
 
1,750

 
1.62%
Fixed-rate 3.00% notes due May 20, 2022
2,000

 
1.91%
 
2,000

 
2.08%
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
(59
)
 
 
 
(63
)
 
 
Hedge accounting fair value adjustments
83

 
 
 
32

 
 
Total long-term debt
$
10,024

 
 
 
$
9,969

 
 

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 June 26, 2016 and September 27, 2015, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $10.4 billion and $9.6 billion, respectively.
The Company has 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 as 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 $270 million during the nine months ended June 26, 2016. Cash interest paid related to the Company’s commercial paper program and long-term debt was negligible in the nine months ended June 28, 2015.
v3.5.0.2
Commitments and Contingencies (Notes)
9 Months Ended
Jun. 26, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Legal Proceedings. ParkerVision, Inc. v. QUALCOMM Incorporated: On July 20, 2011, 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 infringed seven of its patents alleged to cover direct down-conversion receivers. ParkerVision’s complaint sought damages and injunctive and other relief. Subsequently, ParkerVision narrowed its allegations to assert only four patents. On October 17, 2013, the jury returned a verdict finding all asserted claims of the four at-issue patents to be infringed and finding that none of the asserted claims were invalid. On October 24, 2013, the jury returned a separate verdict assessing total past damages of $173 million and finding that the Company’s infringement was not willful. The Company recorded the verdict amount in fiscal 2013 as a charge in other expenses. On June 20, 2014, the court granted the Company’s motion to overturn the infringement verdict, denied the Company’s motion to overturn the invalidity verdict and denied ParkerVision’s motions for injunctive relief and ongoing royalties as moot. The court then entered judgment in the Company’s favor. As a result of the court’s judgment, the Company is not liable for any damages to ParkerVision, and therefore, the Company reversed all recorded amounts related to the damages verdict in fiscal 2014. On June 25, 2014, ParkerVision filed a notice of appeal with the court. The Court of Appeals for the Federal Circuit heard the appeal on May 8, 2015 and issued a decision on July 31, 2015. The decision affirmed the District Court’s finding of non-infringement and granted in part the Company’s cross-appeal, holding 10 of the 11 asserted claims invalid. A subsequent Petition for Rehearing by ParkerVision was denied on October 2, 2015. On February 29, 2016, ParkerVision filed a petition for certiorari with the United States Supreme Court asking for review of the Federal Circuit’s decision. On March 28, 2016, the United States Supreme Court denied ParkerVision’s petition. No further appeals are available to ParkerVision in this matter.
On May 1, 2014, ParkerVision filed another complaint against the Company in the United States District Court for the Middle District of Florida alleging patent infringement. 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 additional 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 a third 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. are also named defendants. The complaint asserts four additional 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 ITC scheduled a hearing to begin on August 24, 2016. The ITC’s target date for completion of the investigation is April 21, 2017. The District Court case was stayed on February 12, 2016 pending completion of the ITC investigation. The Company believes ParkerVision’s claims in the above matters are without merit.
Nvidia Corporation v. QUALCOMM Incorporated: On September 4, 2014, Nvidia filed a complaint in the United States District Court for the District of Delaware and also with the ITC pursuant to Section 337 of the Tariff Act of 1930 against the Company, Samsung Electronics Co., Ltd. and other Samsung entities, alleging infringement of seven patents related to graphics processing. In the ITC complaint, Nvidia sought an exclusion order barring the importation of certain consumer electronics and display device products, including some that incorporate the Company’s chipset products, that infringe, induce infringement and/or contribute to the infringement of at least one of the seven asserted graphics processing patents as well as a cease and desist order preventing the Company from carrying out commercial activities within the United States related to such products. In the District Court complaint, Nvidia sought an award of damages for the infringement of the asserted patents, a finding that such infringement was willful and treble damages for such willful infringement, and an order permanently enjoining the Company from infringing the asserted patents. The ITC instituted an investigation into Nvidia’s allegations on October 6, 2014. Nvidia later narrowed the ITC case to three asserted patents. On October 9, 2015, the Administrative Law Judge in the ITC case issued an Initial Determination finding no violation of Section 337 because none of the three patents were both valid and infringed. On October 26, 2015, Nvidia filed a petition requesting the ITC to review the Initial Determination as to two of the asserted patents, but was no longer pursuing infringement allegations with respect to the third patent. On December 14, 2015, the ITC issued its decision not to review the Initial Determination of the Administrative Law Judge. This made final the determination that the Company did not violate Section 337. Therefore, neither an exclusion order nor a cease and desist order were issued. On February 17, 2016, Nvidia filed a notice of appeal of the ITC’s determination to the United States Court of Appeals for the Federal Circuit. The District Court case was stayed on October 23, 2014 pending completion of the ITC investigation, including appeals. Nvidia has since entered into a confidential settlement agreement with Samsung and dismissed the above actions against Samsung and the Company, including its appeal of the ITC’s determination (dismissed May 11, 2016) and the District Court case (dismissed May 12, 2016).
LG Electronics, Inc. (LGE) Arbitration: In December 2015, LGE filed an arbitration demand with the International Chamber of Commerce (ICC) alleging that it overpaid royalties on certain CDMA (including WCDMA) subscriber units based on the alleged effect of specific provisions in its license agreement, and that the Company breached its license agreement with LGE, as well as certain implied covenants. The arbitration demand sought determination and return of the overpayment and determination of the ongoing royalties owed by LGE. On April 16, 2016, the parties entered into agreements pursuant to which the parties agreed to settle the disputes raised by LGE in its arbitration demand, and LGE agreed to dismiss the arbitration with prejudice and release all claims brought in the arbitration against the Company. On April 18, 2016, the parties jointly moved for dismissal of the arbitration, and on April 19, 2016, the ICC acknowledged the motion for dismissal and the withdrawal of all claims. Although the Company believed LGE’s claims were without merit, it deferred the recognition of revenue related to CDMA subscriber unit royalties reported and paid by LGE in the first and second quarters of fiscal 2016 because, among other reasons, the matter was submitted to arbitration for resolution. As a result of the settlement, commencing with the third quarter of fiscal 2016, the Company is no longer deferring royalty revenues reported by LGE and recorded $235 million of revenues related to prior periods.
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, which is scheduled to begin on February 27, 2017, is being conducted under the rules of the Judicial Arbitration and Mediation Services in San Diego, California. Blackberry seeks the return of the alleged overpayment. The Company believes Blackberry’s claims 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 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 April 7, 2014 and July 22, 2015. The amended complaint seeks unspecified damages, interest, attorneys’ fees and other costs. On June 28, 2016, the Company filed a Motion to Dismiss. The Company believes the plaintiffs’ claims are without merit.
QUALCOMM Incorporated v. Meizu Technology Co., Ltd.: On June 23, 2016 and June 29, 2016, the Company filed a series of actions against Meizu Technology Co., Ltd. et al. (Meizu) in the Intellectual Property Courts in Beijing and Shanghai (China). The first complaint, filed in Beijing on June 23, 2016, requests 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 seeks 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 seeks 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 Zhuhai Meizu Technology Co., Ltd. et al. (Zhuhai Meizu). The patent infringement actions concern 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 seek to enjoin Zhuhai Meizu from manufacturing, selling and offering for sale mobile devices that infringe the asserted patents. No schedules have yet been set by the courts.
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 33 different dates, with the next hearing scheduled for January 17, 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 during fiscal 2016 with respect to this matter.
Korea Fair Trade Commission (KFTC) Investigation: On March 17, 2015, the KFTC notified the Company that it is conducting an investigation of the Company relating to the Korean Monopoly Regulation and Fair Trade Act (MRFTA). On November 13, 2015, the Company received a case Examiner’s Report (ER) prepared by the KFTC’s investigative staff. The ER alleges, among other things, that the Company is in violation of Korean competition law by licensing its patents exhaustively only to device manufacturers and requiring that its chipset customers be licensed to the Company’s intellectual property. The ER also alleges that the Company obtains certain terms, including royalty terms, that are unfair or unreasonable in its license agreements through negotiations that do not conform to Korean competition law. The ER proposes remedies including modifications to certain business practices and monetary penalties. On May 27, 2016, the Company submitted a written response to the ER. The KFTC is holding hearings, which commenced on July 20, 2016. It remains difficult to predict the outcome of this matter. The Company believes that its business practices do not violate the MRFTA. The Company continues to cooperate with the KFTC as it conducts its investigation.
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. 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.
Federal Trade Commission (FTC) Investigation: On September 17, 2014, the FTC notified the Company that it is conducting an investigation of the Company relating to Section 5 of the Federal Trade Commission Act (FTCA). The FTC has notified the Company that it is investigating conduct related to standard essential patents and pricing and contracting practices with respect to baseband processors and related products. If a violation of Section 5 is found, a broad range of remedies is potentially available to the FTC, 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 FTC. The Company believes that its business practices do not violate the FTCA. The Company continues to cooperate with the FTC as it conducts its investigation.
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 in which it is a defendant and which remain outstanding. However, litigation and investigations are inherently uncertain. Accordingly, the Company cannot predict the outcome of these matters. The Company has not recorded any accrual at June 26, 2016 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 June 26, 2016, 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 June 26, 2016 associated with these indemnification arrangements, other than nominal amounts, 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 June 26, 2016 for the remainder of fiscal 2016 and for each of the subsequent four years from fiscal 2017 through 2020 were $3.0 billion, $1.2 billion, $782 million, $702 million and $206 million, respectively, and $50 million thereafter. Of these amounts, for the remainder of fiscal 2016 and for each of the subsequent four years from fiscal 2017 through 2020, commitments to purchase integrated circuit product inventories comprised $2.6 billion, $979 million, $700 million, $647 million and $157 million, respectively, and there were no purchase commitments thereafter. Integrated circuit product inventory obligations represent purchase commitments for 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, cancellation of outstanding purchase commitments is generally allowed but requires payment of costs incurred through the date of cancellation, 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 June 26, 2016 for the remainder of fiscal 2016 and for each of the subsequent four years from fiscal 2017 through 2020 were $23 million, $89 million, $64 million, $50 million and $38 million, respectively, and $90 million thereafter.
Other Commitments. At June 26, 2016, the Company was committed to fund certain strategic investments up to $316 million. Of this amount, $85 million is expected to be funded in the remainder of fiscal 2016. 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.
v3.5.0.2
Segment Information (Notes)
9 Months Ended
Jun. 26, 2016
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. The Company also has nonreportable segments, including its small cells, data center and other wireless technology and service initiatives.
The Company evaluates the performance of its segments based on earnings (loss) before income taxes (EBT) from continuing operations. 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 amortization of certain intangible assets, recognition of the step-up of inventories to fair value 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.
Segment assets are comprised of accounts receivable and inventories for all reportable segments other than QSI. QSI segment assets include certain marketable securities, notes receivable, other investments and all assets of consolidated subsidiaries included in QSI. The increase in QSI assets was primarily a result of a receivable that was recorded in connection with the sale of wireless spectrum during the first quarter of fiscal 2016 (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
 
 
 
 
 
 
 
 
 
June 26, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
3,853

 
$
2,038

 
$
12

 
$
141

 
$
6,044

EBT
365

 
1,749

 
(5
)
 
(416
)
 
1,693

June 28, 2015
 
 
 
 
 
 
 
 
 
Revenues
$
3,853

 
$
1,931

 
$

 
$
48

 
$
5,832

EBT
289

 
1,654

 
(49
)
 
(496
)
 
1,398

 
 
 
 
 
 
 
 
 
 
For the nine months ended
 
 
 
 
 
 
 
 
 
June 26, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
11,285

 
$
5,780

 
$
33

 
$
272

 
$
17,370

EBT
1,125

 
4,945

 
400

 
(1,597
)
 
4,873

June 28, 2015
 
 
 
 
 
 
 
 
 
Revenues
$
13,529

 
$
6,162

 
$

 
$
134

 
$
19,825

EBT
2,185

 
5,395

 
(82
)
 
(2,262
)
 
5,236

 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
 
 
 
June 26, 2016
$
2,620

 
$
548

 
$
937

 
$
46,681

 
$
50,786

September 27, 2015
2,923

 
438

 
812

 
46,623

 
$
50,796


Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Revenues
 
 
 
 
 
 
 
Nonreportable segments
$
142

 
$
49

 
$
274

 
$
138

Intersegment eliminations
(1
)
 
(1
)
 
(2
)
 
(4
)
 
$
141

 
$
48

 
$
272

 
$
134

EBT
 
 
 
 
 
 
 
Unallocated cost of equipment and services revenues
$
(130
)
 
$
(65
)
 
$
(397
)
 
$
(217
)
Unallocated research and development expenses
(199
)
 
(188
)
 
(602
)
 
(624
)
Unallocated selling, general and administrative expenses
(121
)
 
(137
)
 
(373
)
 
(402
)
Unallocated other expense, net
(30
)
 
(98
)
 
(110
)
 
(1,161
)
Unallocated interest expense
(74
)
 

 
(217
)
 

Unallocated investment income, net
185

 
193

 
388

 
655

Nonreportable segments
(47
)
 
(201
)
 
(286
)
 
(512
)
Intersegment eliminations

 

 

 
(1
)
 
$
(416
)
 
$
(496
)
 
$
(1,597
)
 
$
(2,262
)

Unallocated other expense for the nine months ended June 26, 2016 was comprised of net restructuring and restructuring-related charges related to the Company’s Strategic Realignment Plan (Note 10). Unallocated other expense for the nine months ended June 28, 2015 was comprised of a charge related to the resolution reached with the NDRC and goodwill and intangible asset impairment charges related to three of the Company’s nonreportable segments, partially offset by a gain on the sale of certain property, plant and equipment (Note 2).
Unallocated acquisition-related expenses were comprised as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Cost of equipment and services revenues
$
99

 
$
55

 
$
345

 
$
184

Research and development expenses
2

 
3

 
7

 
11

Selling, general and administrative expenses
23

 
20

 
79

 
45

v3.5.0.2
Acquisitions (Notes)
9 Months Ended
Jun. 26, 2016
Acquisitions [Abstract]  
Acquisitions
Acquisitions
During the nine months ended June 26, 2016, the Company acquired four businesses for total cash consideration of $392 million, net of cash acquired. Technology-based intangible assets of $257 million were recognized with a weighted-average useful life of four years. The Company recognized $171 million in goodwill related to these transactions, all of which was assigned to the Company’s QCT segment and of which $24 million is expected to be deductible for tax purposes.
In January 2016, the Company announced that it had reached agreement with TDK Corporation to form a joint venture, under the name RF360 Holdings Singapore Pte. Ltd., to enable delivery of radio frequency front-end (RFFE) modules and RF filters into fully integrated products for mobile devices and Internet of Things (IoT) applications, among others. The joint venture will initially be owned 51% by the Company and 49% by TDK. Certain intellectual property, patents and filter and module design and manufacturing assets will be carved out of existing TDK businesses and be acquired by the joint venture, with certain assets acquired by the Company. The purchase price of the Company’s interest in the joint venture and the assets to be transferred to the Company is $1.2 billion, to be adjusted for working capital, outstanding indebtedness and certain capital expenditures, among other things. Additionally, the Company has the option to acquire (and TDK has an option to sell) TDK’s interest in the joint venture for $1.15 billion 30 months after the closing date. TDK 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 any right of TDK to receive any profit sharing, distributions, dividends or other payments of any kind or nature. The transaction is subject to receipt of regulatory approvals and other closing conditions and is expected to close by early calendar 2017.
v3.5.0.2
Strategic Realignment Plan (Notes)
9 Months Ended
Jun. 26, 2016
Strategic Realignment Plan [Abstract]  
Strategic Realignment Plan
Strategic Realignment Plan
On July 22, 2015, the Company announced a Strategic Realignment Plan designed to improve execution, enhance financial performance and drive profitable growth as the Company works to create sustainable long-term value for stockholders. As part of this, among other actions, the Company is implementing a cost reduction plan, which includes a series of targeted reductions across the Company’s businesses, particularly in QCT, and a reduction to its annual share-based compensation grants. The Company expects these cost reduction initiatives to be substantially implemented by the end of fiscal 2016. During the nine months ended June 26, 2016, the Company recorded restructuring charges of $105 million, including consulting costs of $60 million and severance costs of $41 million, restructuring-related charges of $53 million, which primarily consisted of asset impairments, and a $48 million gain on the sale of the Company’s business that provided augmented reality applications, since such sale was executed in connection with the Strategic Realignment Plan, all of which were included in other income (Note 2) in reconciling items (Note 8). Restructuring activities were initiated in the fourth quarter of fiscal 2015, and a total of $300 million in net restructuring and restructuring-related charges were incurred through the third quarter of fiscal 2016. In connection with this plan, the Company expects to incur additional restructuring and restructuring-related charges of approximately $25 million to $100 million, which primarily consist of severance and consulting costs. The remaining costs are expected to be incurred in fiscal 2016 and 2017, and the majority are expected to be settled in cash.
The restructuring accrual, a portion of which is included in payroll and other benefits related liabilities with the remainder included in other current liabilities, is expected to be substantially paid within the next 12 months. Changes in the restructuring accrual during the nine months ended June 26, 2016 were as follows (in millions):
 
Severance Costs
 
Other
Costs
 
Total
Beginning balance of restructuring accrual
$
122

 
$
31

 
$
153

Additional costs
50

 
67

 
117

Cash payments
(143
)
 
(80
)
 
(223
)
Adjustments
(9
)
 
(3
)
 
(12
)
Ending balance of restructuring accrual
$
20

 
$
15

 
$
35

v3.5.0.2
Fair Value Measurements (Notes)
9 Months Ended
Jun. 26, 2016
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 June 26, 2016 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
3,698

 
$
1,538

 
$

 
$
5,236

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
853

 
1,295

 

 
2,148

Corporate bonds and notes

 
17,159

 

 
17,159

Mortgage- and asset-backed and auction rate securities

 
1,999

 
60

 
2,059

Equity and preferred securities and equity funds
1,106

 
459

 

 
1,565

Debt funds

 
2,216

 

 
2,216

Total marketable securities
1,959

 
23,128

 
60

 
25,147

Derivative instruments

 
88

 

 
88

Other investments
295

 

 

 
295

Total assets measured at fair value
$
5,952

 
$
24,754

 
$
60

 
$
30,766

Liabilities
 
 
 
 
 
 
 
Derivative instruments
$

 
$
11

 
$

 
$
11

Other liabilities
295

 

 

 
295

Total liabilities measured at fair value
$
295

 
$
11

 
$

 
$
306


Activity between Levels of the Fair Value Hierarchy. There were no significant transfers between Level 1 and Level 2 during the nine months ended June 26, 2016 and June 28, 2015. 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 following table includes the activity for mortgage- and asset-backed and auction rate securities classified within Level 3 of the valuation hierarchy (in millions):
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
Beginning balance of Level 3
$
224

 
$
269

Total realized and unrealized gains or losses:
 
 
 
Included in investment income, net
(3
)
 
3

Included in other comprehensive income (loss)
(2
)
 
(4
)
Purchases
2

 
62

Sales
(103
)
 
(46
)
Settlements
(41
)
 
(57
)
Transfers out of Level 3
(17
)
 

Ending balance of Level 3
$
60

 
$
227


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 out of Level 3 during the nine months ended June 26, 2016 primarily consisted of debt securities with significant upgrades in credit ratings or for which there were observable inputs. There were no transfers into or out of Level 3 during the nine months ended June 28, 2015.
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. During the nine months ended June 26, 2016, the Company updated the business plan and related internal forecast related to one of the Company’s businesses, resulting in impairment charges of $44 million to write down intangible assets, which were recorded in cost of equipment and services revenues, research and development expenses and selling, general and administrative expenses. The estimation of fair value and cash flows used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3. During the nine months ended June 28, 2015, the Company updated the business plans and related internal forecasts related to certain of the Company’s businesses, resulting in impairment charges to write down goodwill and intangible assets (Note 2). The Company determined the fair values using an income approach. The estimation of fair value and cash flows used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3. During the nine months ended June 26, 2016 and June 28, 2015, the Company did not have any other significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.
v3.5.0.2
Marketable Securities (Notes)
9 Months Ended
Jun. 26, 2016
Marketable Securities [Abstract]  
Marketable Securities
Marketable Securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
June 26,
2016
 
September 27,
2015
 
June 26,
2016
 
September 27,
2015
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$

 
$

 
$

 
$
12

Corporate bonds and notes

 

 

 
364

Mortgage- and asset-backed and auction rate securities

 

 

 
242

Total trading

 

 

 
618

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
217

 
156

 
1,931

 
691

Corporate bonds and notes
9,381

 
7,926

 
7,778

 
7,112

Mortgage- and asset-backed and auction rate securities
1,521

 
1,302

 
538

 
263

Equity and preferred securities and equity funds
106

 
377

 
1,459

 
1,253

Debt funds

 

 
2,216

 
2,909

Total available-for-sale
11,225

 
9,761

 
13,922

 
12,228

Fair value option:
 
 
 
 
 
 
 
Debt fund

 

 

 
780

Total marketable securities
$
11,225

 
$
9,761

 
$
13,922

 
$
13,626


In the second quarter of fiscal 2016, the Company exited an investment in a debt fund for which the Company elected the fair value option. The investment would have otherwise been recorded using the equity method. Changes in fair value associated with this investment were recognized in net investment income and were negligible for all periods presented.
The Company classifies certain portfolios of debt securities that utilize derivative instruments to acquire or reduce foreign exchange, interest rate and/or equity, prepayment and credit risks as trading. Net gains or net losses recognized on debt securities classified as trading held at June 28, 2015 were negligible during the three and nine months ended June 28, 2015, respectively.
At June 26, 2016, 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
$
3,987

 
$
12,341

 
$
2,103

 
$
788

 
$
4,363

 
$
23,582


Debt securities with no single maturity date included debt funds, corporate bonds and notes, 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
 
 
 
 
 
June 26, 2016
$
62

 
$
(8
)
 
$
54

June 28, 2015
126

 
(10
)
 
116

 
 
 
 
 
 
For the nine months ended
 
 
 
 
 
June 26, 2016
$
146

 
$
(30
)
 
$
116

June 28, 2015
434

 
(48
)
 
386


Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
June 26, 2016
 
 
 
 
 
 
 
Equity securities
$
1,355

 
$
254

 
$
(44
)
 
$
1,565

Debt securities (including debt funds)
23,461

 
292

 
(171
)
 
23,582

 
$
24,816

 
$
546

 
$
(215
)
 
$
25,147

September 27, 2015
 
 
 
 
 
 
 
Equity securities
$
1,394

 
$
264

 
$
(28
)
 
$
1,630

Debt securities (including debt funds)
20,459

 
185

 
(285
)
 
20,359

 
$
21,853

 
$
449

 
$
(313
)
 
$
21,989


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):
 
June 26, 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
$
421

 
$
(2
)
 
$
35

 
$
(1
)
Corporate bonds and notes
3,054

 
(36
)
 
1,488

 
(82
)
Mortgage- and asset-backed and auction rate securities
537

 
(5
)
 
265

 
(2
)
Equity and preferred securities and equity funds
447

 
(43
)
 
5

 
(1
)
Debt funds
318

 
(4
)
 
863

 
(39
)
 
$
4,777

 
$
(90
)
 
$
2,656

 
$
(125
)
 
September 27, 2015
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
304

 
$
(4
)
 
$

 
$

Corporate bonds and notes
7,656

 
(93
)
 
368

 
(62
)
Mortgage- and asset-backed and auction rate securities
862

 
(3
)
 
108

 
(1
)
Equity and preferred securities and equity funds
392

 
(28
)
 
17

 

Debt funds
1,792

 
(117
)
 
124

 
(5
)
 
$
11,006

 
$
(245
)
 
$
617

 
$
(68
)

At June 26, 2016, the Company concluded that the unrealized losses on its available-for-sale securities were temporary. Further, for common stock and for equity and debt funds with unrealized losses, the Company has the ability and the intent to hold such securities until they recover, which is expected to be within a reasonable period of time. 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 will be required to sell, such securities before recovery or maturity.
The ending balance of the credit loss portion of other-than-temporary impairments on debt securities held by the Company was $61 million and negligible at June 26, 2016 and June 28, 2015, respectively.
v3.5.0.2
Basis of Presentation (Policies)
9 Months Ended
Jun. 26, 2016
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 nine-month periods ended June 26, 2016 and June 28, 2015 included 13 weeks and 39 weeks, respectively.
Use of Estimates, Policy
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation.
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 sum of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and shares subject to written put options and/or accelerated share repurchase agreements, if any, and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost for future service that the Company has not yet recognized, if any, and the estimated tax benefits that would be recorded in paid-in capital when an award is settled, if any, are assumed to be used to repurchase shares in the current period. The dilutive common share equivalents, calculated using the treasury stock method, for the three and nine months ended June 26, 2016 were 14,812,000 and 13,325,000, respectively, and 20,749,000 and 22,447,000 for the three and nine months ended June 28, 2015, 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 1,378,000 and 3,150,000 during the three and nine months ended June 26, 2016, respectively, and 16,711,000 and 6,067,000 during the three and nine months ended June 28, 2015, respectively.
Recent Accounting Pronouncements, Policy
Recent Accounting Pronouncements. In November 2015, the Financial Accounting Standards Board (FASB) issued new guidance related to accounting for income taxes, which requires all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. The Company early adopted the new guidance prospectively in the second quarter of fiscal 2016. Prior period amounts have not been adjusted.
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 upon transfer of goods or services 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 and is in the process of determining the adoption method as well as the effects the adoption will have on its consolidated financial statements.
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 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 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 in the income statement 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 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 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.
v3.5.0.2
Marketable Securities (Policies)
9 Months Ended
Jun. 26, 2016
Marketable Securities [Abstract]  
Marketable Securities, Trading Securities
The Company classifies certain portfolios of debt securities that utilize derivative instruments to acquire or reduce foreign exchange, interest rate and/or equity, prepayment and credit risks as trading.
v3.5.0.2
Basis of Presentation (Tables)
9 Months Ended
Jun. 26, 2016
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
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Cost of equipment and services revenues
$
10

 
$
10

 
$
31

 
$
33

Research and development
152

 
176

 
478

 
508

Selling, general and administrative
73

 
85

 
221

 
252

Share-based compensation expense before income taxes
235

 
271

 
730

 
793

Related income tax benefit
(38
)
 
(58
)
 
(126
)
 
(145
)
 
$
197

 
$
213

 
$
604

 
$
648

v3.5.0.2
Composition of Certain Financial Statement Items (Tables)
9 Months Ended
Jun. 26, 2016
Notes to Financial Statements [Abstract]  
Inventories
Inventories (in millions)
 
 
 
 
June 26,
2016
 
September 27,
2015
Raw materials
$
3

 
$
1

Work-in-process
694

 
550

Finished goods
641

 
941

 
$
1,338

 
$
1,492

Other Current Liabilities
Other Current Liabilities (in millions)
 
 
 
 
June 26,
2016
 
September 27,
2015
Customer incentives and other customer-related liabilities
$
1,685

 
$
1,894

Other
428

 
462

 
$
2,113

 
$
2,356

Investment Income, net
Investment Income, Net (in millions)
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Interest and dividend income
$
156

 
$
128

 
$
451

 
$
400

Net realized gains on marketable securities
56

 
117

 
99

 
381

Net realized gains on other investments
13

 
5

 
43

 
18

Impairment losses on marketable securities
(20
)
 
(42
)
 
(109
)
 
(131
)
Impairment losses on other investments
(13
)
 
(13
)
 
(29
)
 
(30
)
Equity in net losses of investees
(18
)
 
(10
)
 
(49
)
 
(23
)
Other
2

 
10

 
(3
)
 
19

 
$
176

 
$
195

 
$
403

 
$
634

v3.5.0.2
Stockholders' Equity (Tables)
9 Months Ended
Jun. 26, 2016
Stockholders' Equity Attributable to Parent [Abstract]  
Changes in Stockholders Equity
Changes in stockholders’ equity for the nine months ended June 26, 2016 were as follows (in millions):
 
Qualcomm Stockholders’ Equity
 
Noncontrolling Interests
 
Total Stockholders’ Equity
Balance at September 27, 2015
$
31,421

 
$
(7
)
 
$
31,414

Net income (loss)
4,106

 
(3
)
 
4,103

Other comprehensive income
149

 

 
149

Common stock issued under employee benefit plans and related tax benefits
364

 

 
364

Share-based compensation
771

 

 
771

Tax withholdings related to vesting of share-based payments
(216
)
 

 
(216
)
Dividends
(2,250
)
 

 
(2,250
)
Stock repurchases
(3,699
)
 

 
(3,699
)
Other
1

 
1

 
2

Balance at June 26, 2016
$
30,647

 
$
(9
)
 
$
30,638

Accumulated Other Comprehensive Income
Changes in the components of accumulated other comprehensive income, net of income taxes, in Qualcomm stockholders’ equity during the nine months ended June 26, 2016 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 27, 2015
$
(160
)
 
$
4

 
$
297

 
$
54

 
$
195

Other comprehensive (loss) income before reclassifications
(6
)
 
8

 
135

 
(4
)
 
133

Reclassifications from accumulated other comprehensive income (loss)
21

 
(11
)
 
6

 

 
16

Other comprehensive income (loss)
15

 
(3
)
 
141

 
(4
)
 
149

Balance at June 26, 2016
$
(145
)
 
$
1

 
$
438

 
$
50

 
$
344

Dividends Declared
During the nine months ended June 26, 2016 and June 28, 2015, dividends charged to retained earnings were as follows (in millions, except per share data):
 
2016
 
2015
 
Per Share
 
Total
 
Per Share
 
Total
First quarter
$
0.48

 
$
730

 
$
0.42

 
$
710

Second quarter
0.48

 
726

 
0.42

 
702

Third quarter
0.53

 
794

 
0.48

 
771

 
$
1.49

 
$
2,250

 
$
1.32

 
$
2,183

v3.5.0.2
Debt (Tables)
9 Months Ended
Jun. 26, 2016
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):
 
June 26, 2016
 
September 27, 2015
 
Amount
 
Effective
Rate
 
Amount
 
Effective
Rate
Floating-rate notes due May 18, 2018
$
250

 
0.97%
 
$
250

 
0.66%
Floating-rate notes due May 20, 2020
250

 
1.24%
 
250

 
0.94%
Fixed-rate 1.40% notes due May 18, 2018
1,250

 
0.53%
 
1,250

 
0.43%
Fixed-rate 2.25% notes due May 20, 2020
1,750

 
1.55%
 
1,750

 
1.62%
Fixed-rate 3.00% notes due May 20, 2022
2,000

 
1.91%
 
2,000

 
2.08%
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
(59
)
 
 
 
(63
)
 
 
Hedge accounting fair value adjustments
83

 
 
 
32

 
 
Total long-term debt
$
10,024

 
 
 
$
9,969

 
 
v3.5.0.2
Segment Information (Tables)
9 Months Ended
Jun. 26, 2016
Segment Reporting [Abstract]  
Revenues and EBT 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
 
 
 
 
 
 
 
 
 
June 26, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
3,853

 
$
2,038

 
$
12

 
$
141

 
$
6,044

EBT
365

 
1,749

 
(5
)
 
(416
)
 
1,693

June 28, 2015
 
 
 
 
 
 
 
 
 
Revenues
$
3,853

 
$
1,931

 
$

 
$
48

 
$
5,832

EBT
289

 
1,654

 
(49
)
 
(496
)
 
1,398

 
 
 
 
 
 
 
 
 
 
For the nine months ended
 
 
 
 
 
 
 
 
 
June 26, 2016
 
 
 
 
 
 
 
 
 
Revenues
$
11,285

 
$
5,780

 
$
33

 
$
272

 
$
17,370

EBT
1,125

 
4,945

 
400

 
(1,597
)
 
4,873

June 28, 2015
 
 
 
 
 
 
 
 
 
Revenues
$
13,529

 
$
6,162

 
$

 
$
134

 
$
19,825

EBT
2,185

 
5,395

 
(82
)
 
(2,262
)
 
5,236

 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
 
 
 
June 26, 2016
$
2,620

 
$
548

 
$
937

 
$
46,681

 
$
50,786

September 27, 2015
2,923

 
438

 
812

 
46,623

 
$
50,796

Reconciling items for reportable segments - revenues
Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Revenues
 
 
 
 
 
 
 
Nonreportable segments
$
142

 
$
49

 
$
274

 
$
138

Intersegment eliminations
(1
)
 
(1
)
 
(2
)
 
(4
)
 
$
141

 
$
48

 
$
272

 
$
134

EBT
 
 
 
 
 
 
 
Unallocated cost of equipment and services revenues
$
(130
)
 
$
(65
)
 
$
(397
)
 
$
(217
)
Unallocated research and development expenses
(199
)
 
(188
)
 
(602
)
 
(624
)
Unallocated selling, general and administrative expenses
(121
)
 
(137
)
 
(373
)
 
(402
)
Unallocated other expense, net
(30
)
 
(98
)
 
(110
)
 
(1,161
)
Unallocated interest expense
(74
)
 

 
(217
)
 

Unallocated investment income, net
185

 
193

 
388

 
655

Nonreportable segments
(47
)
 
(201
)
 
(286
)
 
(512
)
Intersegment eliminations

 

 

 
(1
)
 
$
(416
)
 
$
(496
)
 
$
(1,597
)
 
$
(2,262
)
Reconciling items for reportable segments - EBT
Reconciling items in the previous table were as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Revenues
 
 
 
 
 
 
 
Nonreportable segments
$
142

 
$
49

 
$
274

 
$
138

Intersegment eliminations
(1
)
 
(1
)
 
(2
)
 
(4
)
 
$
141

 
$
48

 
$
272

 
$
134

EBT
 
 
 
 
 
 
 
Unallocated cost of equipment and services revenues
$
(130
)
 
$
(65
)
 
$
(397
)
 
$
(217
)
Unallocated research and development expenses
(199
)
 
(188
)
 
(602
)
 
(624
)
Unallocated selling, general and administrative expenses
(121
)
 
(137
)
 
(373
)
 
(402
)
Unallocated other expense, net
(30
)
 
(98
)
 
(110
)
 
(1,161
)
Unallocated interest expense
(74
)
 

 
(217
)
 

Unallocated investment income, net
185

 
193

 
388

 
655

Nonreportable segments
(47
)
 
(201
)
 
(286
)
 
(512
)
Intersegment eliminations

 

 

 
(1
)
 
$
(416
)
 
$
(496
)
 
$
(1,597
)
 
$
(2,262
)
Unallocated acquisition-related expenses were comprised as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
 
June 26,
2016
 
June 28,
2015
Cost of equipment and services revenues
$
99

 
$
55

 
$
345

 
$
184

Research and development expenses
2

 
3

 
7

 
11

Selling, general and administrative expenses
23

 
20

 
79

 
45

v3.5.0.2
Strategic Realignment Plan (Tables)
9 Months Ended
Jun. 26, 2016
Strategic Realignment Plan [Abstract]  
Restructuring and Related Costs
The restructuring accrual, a portion of which is included in payroll and other benefits related liabilities with the remainder included in other current liabilities, is expected to be substantially paid within the next 12 months. Changes in the restructuring accrual during the nine months ended June 26, 2016 were as follows (in millions):
 
Severance Costs
 
Other
Costs
 
Total
Beginning balance of restructuring accrual
$
122

 
$
31

 
$
153

Additional costs
50

 
67

 
117

Cash payments
(143
)
 
(80
)
 
(223
)
Adjustments
(9
)
 
(3
)
 
(12
)
Ending balance of restructuring accrual
$
20

 
$
15

 
$
35

v3.5.0.2
Fair Value Measurements (Tables)
9 Months Ended
Jun. 26, 2016
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 June 26, 2016 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
3,698

 
$
1,538

 
$

 
$
5,236

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
853

 
1,295

 

 
2,148

Corporate bonds and notes

 
17,159

 

 
17,159

Mortgage- and asset-backed and auction rate securities

 
1,999

 
60

 
2,059

Equity and preferred securities and equity funds
1,106

 
459

 

 
1,565

Debt funds

 
2,216

 

 
2,216

Total marketable securities
1,959

 
23,128

 
60

 
25,147

Derivative instruments

 
88

 

 
88

Other investments
295

 

 

 
295

Total assets measured at fair value
$
5,952

 
$
24,754

 
$
60

 
$
30,766

Liabilities
 
 
 
 
 
 
 
Derivative instruments
$

 
$
11

 
$

 
$
11

Other liabilities
295

 

 

 
295

Total liabilities measured at fair value
$
295

 
$
11

 
$

 
$
306


Activity for marketable securities classified within Level 3 of the valuation hierarchy
The following table includes the activity for mortgage- and asset-backed and auction rate securities classified within Level 3 of the valuation hierarchy (in millions):
 
Nine Months Ended
 
June 26,
2016
 
June 28,
2015
Beginning balance of Level 3
$
224

 
$
269

Total realized and unrealized gains or losses:
 
 
 
Included in investment income, net
(3
)
 
3

Included in other comprehensive income (loss)
(2
)
 
(4
)
Purchases
2

 
62

Sales
(103
)
 
(46
)
Settlements
(41
)
 
(57
)
Transfers out of Level 3
(17
)
 

Ending balance of Level 3
$
60

 
$
227


v3.5.0.2
Marketable Securities (Tables)
9 Months Ended
Jun. 26, 2016
Marketable Securities [Abstract]  
Composition of marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
June 26,
2016
 
September 27,
2015
 
June 26,
2016
 
September 27,
2015
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$

 
$

 
$

 
$
12

Corporate bonds and notes

 

 

 
364

Mortgage- and asset-backed and auction rate securities

 

 

 
242

Total trading

 

 

 
618

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
217

 
156

 
1,931

 
691

Corporate bonds and notes
9,381

 
7,926

 
7,778

 
7,112

Mortgage- and asset-backed and auction rate securities
1,521

 
1,302

 
538

 
263

Equity and preferred securities and equity funds
106

 
377

 
1,459

 
1,253

Debt funds

 

 
2,216

 
2,909

Total available-for-sale
11,225

 
9,761

 
13,922

 
12,228

Fair value option:
 
 
 
 
 
 
 
Debt fund

 

 

 
780

Total marketable securities
$
11,225

 
$
9,761

 
$
13,922

 
$
13,626

Contractual maturities of available-for-sale debt securities
At June 26, 2016, 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
$
3,987

 
$
12,341

 
$
2,103

 
$
788

 
$
4,363

 
$
23,582

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
 
 
 
 
 
June 26, 2016
$
62

 
$
(8
)
 
$
54

June 28, 2015
126

 
(10
)
 
116

 
 
 
 
 
 
For the nine months ended
 
 
 
 
 
June 26, 2016
$
146

 
$
(30
)
 
$
116

June 28, 2015
434

 
(48
)
 
386

Composition of available-for-sale securities
Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
June 26, 2016
 
 
 
 
 
 
 
Equity securities
$
1,355

 
$
254

 
$
(44
)
 
$
1,565

Debt securities (including debt funds)
23,461

 
292

 
(171
)
 
23,582

 
$
24,816

 
$
546

 
$
(215
)
 
$
25,147

September 27, 2015
 
 
 
 
 
 
 
Equity securities
$
1,394

 
$
264

 
$
(28
)
 
$
1,630

Debt securities (including debt funds)
20,459

 
185

 
(285
)
 
20,359

 
$
21,853

 
$
449

 
$
(313
)
 
$
21,989

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):
 
June 26, 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
$
421

 
$
(2
)
 
$
35

 
$
(1
)
Corporate bonds and notes
3,054

 
(36
)
 
1,488

 
(82
)
Mortgage- and asset-backed and auction rate securities
537

 
(5
)
 
265

 
(2
)
Equity and preferred securities and equity funds
447

 
(43
)
 
5

 
(1
)
Debt funds
318

 
(4
)
 
863

 
(39
)
 
$
4,777

 
$
(90
)
 
$
2,656

 
$
(125
)
 
September 27, 2015
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
304

 
$
(4
)
 
$

 
$

Corporate bonds and notes
7,656

 
(93
)
 
368

 
(62
)
Mortgage- and asset-backed and auction rate securities
862

 
(3
)
 
108

 
(1
)
Equity and preferred securities and equity funds
392

 
(28
)
 
17

 

Debt funds
1,792

 
(117
)
 
124

 
(5
)
 
$
11,006

 
$
(245
)
 
$
617

 
$
(68
)
v3.5.0.2
Basis of Presentation Earnings Per Common Share (Details) - shares
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Basis of Presentation [Abstract]        
Dilutive common share equivalents 14,812,000 20,749,000 13,325,000 22,447,000
Common share equivalents excluded from computation of diluted EPS 1,378,000 16,711,000 3,150,000 6,067,000
v3.5.0.2
Basis of Presentation Share-Based Compensation (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense before income taxes $ 235 $ 271 $ 730 $ 793
Related income tax benefit (38) (58) (126) (145)
Share-based compensation expense, net of income taxes 197 $ 213 604 648
Share-based compensation expense related to share-based awards granted during the period     170 $ 173
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 $ 1,200   $ 1,200  
Weighted-average period over which unrecognized compensation expense related to nonvested restricted stock units is expected to be recognized     2 years  
Equity Compensation Plans Consolidated [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Net share based awards granted in fiscal year, after forfeitures and cancellations as percent of total outstanding shares at beginning of fiscal period 0.70% 0.80% 0.70% 0.80%
Total share based awards granted in fiscal year as percent of total outstanding shares at end of fiscal period 1.00% 0.90% 1.00% 0.90%
Cost of equipment and services revenues [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense before income taxes $ 10 $ 10 $ 31 $ 33
Research and development [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense before income taxes 152 176 478 508
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 $ 73 $ 85 $ 221 $ 252
v3.5.0.2
Composition of Certain Financial Statement Items Inventories (Details) - USD ($)
$ in Millions
Jun. 26, 2016
Sep. 27, 2015
Inventory, Net [Abstract]    
Raw materials $ 3 $ 1
Work-in-process 694 550
Finished goods 641 941
Inventories $ 1,338 $ 1,492
v3.5.0.2
Composition of Certain Financial Statement Items Other Current Liabilities (Details) - USD ($)
$ in Millions
Jun. 26, 2016
Sep. 27, 2015
Other Liabilities, Current [Abstract]    
Customer incentives and other customer-related liabilities $ 1,685 $ 1,894
Other 428 462
Other current liabilities $ 2,113 $ 2,356
v3.5.0.2
Composition of Certain Financial Statement Items Other Income, Costs and Expenses (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 28, 2015
Mar. 29, 2015
Jun. 26, 2016
Jun. 28, 2015
Gain on sale of wireless spectrum     $ 380 $ 0
Proceeds from sale of wireless spectrum     232 0
Deferred payments     275  
Restructuring and restructuring-related charges     158  
Resolution of governmental investigation, Amount   $ 975   975
Goodwill impairment charges $ 151     255
Impairment of Intangible Assets 11   44 11
Gains on sales of certain property plant and equipment $ 44     $ 60
Other Operating Income (Expense) [Member]        
Gain (Loss) on Disposition of Business     $ 48  
Minimum [Member]        
Deferred payments, Due date     Jan. 01, 2020  
Maximum [Member]        
Deferred payments, Due date     Dec. 31, 2023  
v3.5.0.2
Composition of Certain Financial Statement Items Investment Income, Net (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Investment Income, Net [Abstract]        
Interest and dividend income $ 156 $ 128 $ 451 $ 400
Net realized gains on marketable securities 56 117 99 381
Net realized gains on other investments 13 5 43 18
Impairment losses on marketable securities (20) (42) (109) (131)
Impairment losses on other investments (13) (13) (29) (30)
Equity in net losses of investees (18) (10) (49) (23)
Other 2 10 (3) 19
Investment income, net $ 176 $ 195 403 634
Net impairment losses on marketable securities related to the noncredit portion of losses on debt securities recognized in other comprehensive income     $ 37 $ 10
v3.5.0.2
Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Jun. 26, 2016
Dec. 27, 2015
Mar. 29, 2015
Dec. 28, 2014
Jun. 28, 2015
Sep. 25, 2016
Sep. 27, 2015
Income Taxes [Line Items]              
Effective income tax rate 15.00%           19.00%
Tax benefits from foreign income taxed at rates lower than rates in the United States             14.00%
Tax benefit from a worthless stock deduction on a domestic subsidiary $ 101            
Tax benefit recognized in period related to prior period attributable to federal research and development tax credit   $ 79   $ 101      
Resolution of governmental investigation, Amount     $ 975   $ 975    
Tax benefit as a result of a favorable tax audit settlement     $ 61        
Unrecognized Tax Benefits $ 210           $ 40
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           15.00%  
v3.5.0.2
Stockholders' Equity Changes in Stockholders' Equity (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Jun. 28, 2015
Mar. 29, 2015
Dec. 28, 2014
Jun. 26, 2016
Jun. 28, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Balance at beginning of the period     $ 31,414       $ 31,414  
Net Income attributable to Qualcomm $ 1,444     $ 1,184     4,106 $ 4,209
Net Loss attributable to noncontrolling interests (1)     (1)     (3) (2)
Net income 1,443     1,183     4,103 4,207
Other comprehensive income (loss) 184     31     149 (131)
Common stock issued under employee benefit plans and related tax benefits             364  
Share-based compensation             771  
Tax withholdings related to vesting of share-based payments             (216)  
Dividends (794) $ (726) (730) $ (771) $ (702) $ (710) (2,250) $ (2,183)
Stock repurchases             (3,699)  
Other             2  
Balance at end of the period 30,638           30,638  
Parent [Member]                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Balance at beginning of the period     31,421       31,421  
Net Income attributable to Qualcomm             4,106  
Other comprehensive loss attributable to Qualcomm             149  
Common stock issued under employee benefit plans and related tax benefits             364  
Share-based compensation             771  
Tax withholdings related to vesting of share-based payments             (216)  
Dividends             (2,250)  
Stock repurchases             (3,699)  
Other             1  
Balance at end of the period 30,647           30,647  
Noncontrolling Interest [Member]                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Balance at beginning of the period     $ (7)       (7)  
Net Loss attributable to noncontrolling interests             (3)  
Other             1  
Balance at end of the period $ (9)           $ (9)  
v3.5.0.2
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     $ 195  
Balance at end of period $ 344   344  
Reclassifications from AOCI related to net gains on AFS recorded in investment income 176 $ 195 403 $ 634
Foreign Currency Translation Adjustment [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (160)  
Other comprehensive (loss) income before reclassifications     (6)  
Reclassifications from accumulated other comprehensive income (loss)     21  
Other comprehensive income (loss)     15  
Balance at end of period (145)   (145)  
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     4  
Other comprehensive (loss) income before reclassifications     8  
Reclassifications from accumulated other comprehensive income (loss)     (11)  
Other comprehensive income (loss)     (3)  
Balance at end of period 1   1  
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     297  
Other comprehensive (loss) income before reclassifications     135  
Reclassifications from accumulated other comprehensive income (loss)     6  
Other comprehensive income (loss)     141  
Balance at end of period 438   438  
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     54  
Other comprehensive (loss) income before reclassifications     (4)  
Reclassifications from accumulated other comprehensive income (loss)     0  
Other comprehensive income (loss)     (4)  
Balance at end of period 50   50  
Total Accumulated Other Comprehensive Income [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     195  
Other comprehensive (loss) income before reclassifications     133  
Reclassifications from accumulated other comprehensive income (loss)     16  
Other comprehensive income (loss)     149  
Balance at end of period 344   344  
Reclassification out of Accumulated Other Comprehensive Income [Member]        
Accumulated Other Comprehensive Income Attributable to Parent, Net of Tax [Roll Forward]        
Reclassifications from AOCI related to net gains on AFS recorded in investment income 22 $ 48 5 $ 166
Reclassifications from AOCI related to FX losses recorded in SG&A and other operating expenses $ 15   $ 21  
v3.5.0.2
Stockholders' Equity Share Repurchase Program (Details) - USD ($)
$ in Billions
3 Months Ended 9 Months Ended
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Mar. 09, 2015
Share Repurchase Program [Line Items]        
Authorized amount       $ 15.0
Remaining authorized amount   $ 3.2    
Accelerated Share Repurchase Program [Member]        
Share Repurchase Program [Line Items]        
Upfront Payment Under Accelerated Stock Repurchase Program $ 5.0      
Stock repurchased and retired during period, shares 57,737,000      
Open Market Repurchases [Member]        
Share Repurchase Program [Line Items]        
Stock repurchased and retired during period, shares   70,168,000 56,652,000  
Stock repurchased and retired during period, before commissions   $ 3.7 $ 4.0  
v3.5.0.2
Stockholders' Equity Dividends (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 2 Months Ended 3 Months Ended 9 Months Ended
Jul. 12, 2016
Aug. 31, 2016
Sep. 21, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Jun. 28, 2015
Mar. 29, 2015
Dec. 28, 2014
Jun. 26, 2016
Jun. 28, 2015
Dividends [Line Items]                      
Dividends per share announced       $ 0.53 $ 0.48 $ 0.48 $ 0.48 $ 0.42 $ 0.42 $ 1.49 $ 1.32
Dividends charged to retained earnings       $ 794 $ 726 $ 730 $ 771 $ 702 $ 710 $ 2,250 $ 2,183
Subsequent Event [Member]                      
Dividends [Line Items]                      
Dividends per share announced $ 0.53                    
Dividends Payable, Date declared Jul. 12, 2016                    
Dividends Payable, Date to be paid     Sep. 21, 2016                
Dividends Payable, Date of record   Aug. 31, 2016                  
v3.5.0.2
Employee Benefit Plans Employee Benefit Plans (Details) - Stock Compensation Plan [Member]
2 Months Ended
Mar. 08, 2016
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares authorized under the New Plan 90,000,000
Number of shares available under the Prior Plan carried forward to the New Plan 20,120,000
Number of shares available for grant 110,120,000
v3.5.0.2
Debt (Details) - USD ($)
$ in Millions
9 Months Ended 12 Months Ended
Jun. 26, 2016
Sep. 27, 2015
Revolving Credit Facility [Abstract]    
Revolving Credit Facility, Maximum Borrowing Capacity $ 4,000  
Revolving Credit Facility, Expiration Date Feb. 18, 2020  
Revolving Credit Facility, Covenant Terms maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in the Revolving Credit Facility, of not less than three to one at the end of each fiscal quarter  
Revolving Credit Facility, Covenant Compliance the Company was in compliance with the covenants  
Commercial Paper Program [Abstract]    
Commercial Paper, Amount Outstanding $ 1,749 $ 1,000
Commercial Paper [Member]    
Commercial Paper Program [Abstract]    
Commercial Paper, Maximum Borrowing Capacity $ 4,000  
Commercial Paper, Weighted Average Interest Rate 0.50% 0.19%
Minimum [Member] | Commercial Paper [Member]    
Commercial Paper Program [Abstract]    
Commercial Paper, Term 1 day  
Maximum [Member] | Commercial Paper [Member]    
Commercial Paper Program [Abstract]    
Commercial Paper, Term 397 days  
Weighted Average [Member] | Commercial Paper [Member]    
Commercial Paper Program [Abstract]    
Commercial Paper, Weighted Average Remaining Term 37 days 38 days
v3.5.0.2
Debt Long-term Debt (Details) - USD ($)
$ in Millions
9 Months Ended 12 Months Ended
Jun. 26, 2016
Sep. 27, 2015
Long-term Debt [Abstract]    
Long-term debt, Principal amount $ 10,000 $ 10,000
Unamortized discount, including debt issuance costs (59) (63)
Hedge accounting fair value adjustments 83 32
Total long-term debt 10,024 9,969
Long-term Debt, Fair Value 10,400 $ 9,600
Interest paid related to commercial paper and long-term debt, net of cash received from the related interest rate swaps $ 270  
Floating-rate notes due May 18, 2018 [Member]    
Long-term Debt [Abstract]    
Long-term debt, Maturity date May 18, 2018 May 18, 2018
Long-term debt, Principal amount $ 250 $ 250
Long-term debt, Effective Interest Rate 0.97% 0.66%
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, Maturity date May 20, 2020 May 20, 2020
Long-term debt, Principal amount $ 250 $ 250
Long-term debt, Effective Interest Rate 1.24% 0.94%
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, Stated Interest Rate 1.40% 1.40%
Long-term debt, Maturity date May 18, 2018 May 18, 2018
Long-term debt, Principal amount $ 1,250 $ 1,250
Long-term debt, Effective Interest Rate 0.53% 0.43%
Fixed-rate 2.25% notes due May 20, 2020 [Member]    
Long-term Debt [Abstract]    
Long-term debt, Stated Interest Rate 2.25% 2.25%
Long-term debt, Maturity date May 20, 2020 May 20, 2020
Long-term debt, Principal amount $ 1,750 $ 1,750
Long-term debt, Effective Interest Rate 1.55% 1.62%
Fixed-rate 3.00% notes due May 20, 2022 [Member]    
Long-term Debt [Abstract]    
Long-term debt, Stated Interest Rate 3.00% 3.00%
Long-term debt, Maturity date May 20, 2022 May 20, 2022
Long-term debt, Principal amount $ 2,000 $ 2,000
Long-term debt, Effective Interest Rate 1.91% 2.08%
Fixed-rate 3.45% notes due May 20, 2025 [Member]    
Long-term Debt [Abstract]    
Long-term debt, Stated Interest Rate 3.45% 3.45%
Long-term debt, Maturity date May 20, 2025 May 20, 2025
Long-term debt, Principal amount $ 2,000 $ 2,000
Long-term debt, Effective Interest Rate 3.46% 3.46%
Fixed-rate 4.65% notes due May 20, 2035 [Member]    
Long-term Debt [Abstract]    
Long-term debt, Stated Interest Rate 4.65% 4.65%
Long-term debt, Maturity date May 20, 2035 May 20, 2035
Long-term debt, Principal amount $ 1,000 $ 1,000
Long-term debt, Effective Interest Rate 4.74% 4.74%
Fixed-rate 4.80% notes due May 20, 2045 [Member]    
Long-term Debt [Abstract]    
Long-term debt, Stated Interest Rate 4.80% 4.80%
Long-term debt, Maturity date May 20, 2045 May 20, 2045
Long-term debt, Principal amount $ 1,500 $ 1,500
Long-term debt, Effective Interest Rate 4.71% 4.71%
Interest Rate Swaps [Member]    
Long-term Debt [Abstract]    
Gross notional amount of Derivatives $ 3,000  
v3.5.0.2
Commitments and Contingencies Legal Proceedings (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2013
Jun. 26, 2016
Legal Proceedings [Line Items]    
ParkerVision verdict amount $ 173  
Deferred revenue recognized upon settlement   $ 235
v3.5.0.2
Commitments and Contingencies Purchase Obligations (Details)
$ in Millions
Jun. 26, 2016
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
Remainder of fiscal 2016 - Unrecorded obligations $ 3,000
Fiscal 2017 - Unrecorded obligations 1,200
Fiscal 2018 - Unrecorded obligations 782
Fiscal 2019 - Unrecorded obligations 702
Fiscal 2020 - Unrecorded obligations 206
Thereafter - Unrecorded obligations 50
Inventories [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Remainder of fiscal 2016 - Unrecorded obligations 2,600
Fiscal 2017 - Unrecorded obligations 979
Fiscal 2018 - Unrecorded obligations 700
Fiscal 2019 - Unrecorded obligations 647
Fiscal 2020 - Unrecorded obligations 157
Thereafter - Unrecorded obligations $ 0
v3.5.0.2
Commitments and Contingencies Operating Leases (Details)
$ in Millions
9 Months Ended
Jun. 26, 2016
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 2016 - Operating Leases $ 23
Fiscal 2017 - Operating leases 89
Fiscal 2018 - Operating leases 64
Fiscal 2019 - Operating leases 50
Fiscal 2020 - Operating leases 38
Thereafter - Operating leases $ 90
v3.5.0.2
Commitments and Contingencies Other Commitments (Details)
$ in Millions
Jun. 26, 2016
USD ($)
Other Commitments [Abstract]  
Other Commitments $ 316
Remainder of fiscal 2016 - Other Commitments $ 85
v3.5.0.2
Segment Information (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Sep. 27, 2015
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 $ 6,044 $ 5,832 $ 17,370 $ 19,825  
Earnings before taxes 1,693 1,398 4,873 5,236  
Total assets 50,786   50,786   $ 50,796
Cost of equipment and services revenues (2,534) (2,451) (7,210) (8,126)  
Research and development expense (1,268) (1,407) (3,922) (4,133)  
Selling, general and administrative expense (620) (621) (1,817) (1,749)  
Other expenses, net (30) (118) 270 (1,181)  
Interest expense (75) (32) (221) (34)  
Investment income, net 176 195 403 634  
QCT [Member]          
Segment Reporting Information [Line Items]          
Revenues 3,853 3,853 11,285 13,529  
Earnings before taxes 365 289 1,125 2,185  
Total assets 2,620   2,620   2,923
QTL [Member]          
Segment Reporting Information [Line Items]          
Revenues 2,038 1,931 5,780 6,162  
Earnings before taxes 1,749 1,654 4,945 5,395  
Total assets 548   548   438
QSI [Member]          
Segment Reporting Information [Line Items]          
Revenues 12 0 33 0  
Earnings before taxes (5) (49) 400 (82)  
Total assets 937   937   812
Nonreportable Segments [Member]          
Segment Reporting Information [Line Items]          
Revenues 142 49 274 138  
Earnings before taxes (47) (201) (286) (512)  
Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Revenues 141 48 272 134  
Earnings before taxes (416) (496) (1,597) (2,262)  
Total assets 46,681   46,681   $ 46,623
Cost of equipment and services revenues (130) (65) (397) (217)  
Research and development expense (199) (188) (602) (624)  
Selling, general and administrative expense (121) (137) (373) (402)  
Other expenses, net (30) (98) (110) (1,161)  
Interest expense (74) 0 (217) 0  
Investment income, net 185 193 388 655  
Intersegment Eliminations [Member]          
Segment Reporting Information [Line Items]          
Revenues (1) (1) (2) (4)  
Earnings before taxes 0 0 0 (1)  
Cost of equipment and services revenues [Member] | Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Unallocated acquisition-related expenses 99 55 345 184  
Research and development expenses [Member] | Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Unallocated acquisition-related expenses 2 3 7 11  
Selling, general and administrative expenses [Member] | Reconciling Items [Member]          
Segment Reporting Information [Line Items]          
Unallocated acquisition-related expenses $ 23 $ 20 $ 79 $ 45  
v3.5.0.2
Acquisitions (Details)
$ in Millions
9 Months Ended
Jun. 26, 2016
USD ($)
businesses
Jan. 12, 2016
Sep. 27, 2015
USD ($)
Business Acquisition [Line Items]      
Goodwill $ 5,657   $ 5,479
Agreed ownership percentage by Parent upon acquisition   51.00%  
Agreed ownership percentage by non-controlling owners upon acquisition   49.00%  
Agreed acquisition purchase price 1,200    
Agreed exercise price of option to purchase/sell ownership interest $ 1,150    
Time period after which option becomes exercisable 30 months    
Maximum amount to be paid to noncontrolling owner in lieu of any profit sharing, distributions, dividends or any other payments $ 200    
Series of Individually Immaterial Business Acquisitions [Member]      
Business Acquisition [Line Items]      
Number of businesses acquired | businesses 4    
Payments to acquire businesses, net of cash acquired $ 392    
Technology-Based Intangible Assets [Member] | Series of Individually Immaterial Business Acquisitions [Member]      
Business Acquisition [Line Items]      
Technology-based intangible assets recognized $ 257    
Weighted average useful life of technology-based intangible assets 4 years    
QCT [Member] | Series of Individually Immaterial Business Acquisitions [Member]      
Business Acquisition [Line Items]      
Goodwill $ 171    
Goodwill, expected tax deductible amount $ 24    
v3.5.0.2
Strategic Realignment Plan (Details) - USD ($)
$ in Millions
9 Months Ended 12 Months Ended
Jun. 26, 2016
Sep. 25, 2016
Sep. 27, 2015
Restructuring Cost and Reserve [Line Items]      
Strategic Realignment Plan, announcement Date     Jul. 22, 2015
Restructuring Reserve [Roll Forward]      
Beginning balance of restructuring accrual $ 153 $ 153  
Additional costs 117    
Cash payments (223)    
Adjustments (12)    
Ending balance of restructuring accrual 35   $ 153
Employee Severance [Member]      
Restructuring Reserve [Roll Forward]      
Beginning balance of restructuring accrual 122 122  
Additional costs 50    
Cash payments (143)    
Adjustments (9)    
Ending balance of restructuring accrual 20   122
Other Costs [Member]      
Restructuring Reserve [Roll Forward]      
Beginning balance of restructuring accrual 31 $ 31  
Additional costs 67    
Cash payments (80)    
Adjustments (3)    
Ending balance of restructuring accrual 15   $ 31
Minimum [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring and Related Cost, Expected Cost 25    
Maximum [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring and Related Cost, Expected Cost 100    
Scenario, Forecast [Member]      
Restructuring Cost and Reserve [Line Items]      
Strategic Realignment Plan, substantial implementation period   Sep. 25, 2016  
Other Operating Income (Expense) [Member]      
Restructuring Cost and Reserve [Line Items]      
Consulting costs 60    
Severance costs 41    
Restructuring-related costs 53    
Gain (Loss) on Disposition of Business 48    
Restructuring and restructuring-related charges incurred to date 300    
Restructuring Reserve [Roll Forward]      
Additional costs $ 105    
v3.5.0.2
Fair Value Measurements Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring [Member]
$ in Millions
Jun. 26, 2016
USD ($)
Assets  
Cash equivalents $ 5,236
Marketable securities 25,147
Derivative instruments 88
Other investments 295
Total assets measured at fair value 30,766
Liabilities  
Derivative instruments 11
Other liabilities 295
Total liabilities measured at fair value 306
Level 1 [Member]  
Assets  
Cash equivalents 3,698
Marketable securities 1,959
Derivative instruments 0
Other investments 295
Total assets measured at fair value 5,952
Liabilities  
Derivative instruments 0
Other liabilities 295
Total liabilities measured at fair value 295
Level 2 [Member]  
Assets  
Cash equivalents 1,538
Marketable securities 23,128
Derivative instruments 88
Other investments 0
Total assets measured at fair value 24,754
Liabilities  
Derivative instruments 11
Other liabilities 0
Total liabilities measured at fair value 11
Level 3 [Member]  
Assets  
Cash equivalents 0
Marketable securities 60
Derivative instruments 0
Other investments 0
Total assets measured at fair value 60
Liabilities  
Derivative instruments 0
Other liabilities 0
Total liabilities measured at fair value 0
U.S. Treasury securities and government-related securities [Member]  
Assets  
Marketable securities 2,148
U.S. Treasury securities and government-related securities [Member] | Level 1 [Member]  
Assets  
Marketable securities 853
U.S. Treasury securities and government-related securities [Member] | Level 2 [Member]  
Assets  
Marketable securities 1,295
U.S. Treasury securities and government-related securities [Member] | Level 3 [Member]  
Assets  
Marketable securities 0
Corporate bonds and notes [Member]  
Assets  
Marketable securities 17,159
Corporate bonds and notes [Member] | Level 1 [Member]  
Assets  
Marketable securities 0
Corporate bonds and notes [Member] | Level 2 [Member]  
Assets  
Marketable securities 17,159
Corporate bonds and notes [Member] | Level 3 [Member]  
Assets  
Marketable securities 0
Mortgage- and asset-backed and auction rate securities [Member]  
Assets  
Marketable securities 2,059
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 1,999
Mortgage- and asset-backed and auction rate securities [Member] | Level 3 [Member]  
Assets  
Marketable securities 60
Equity and preferred securities and equity funds [Member]  
Assets  
Marketable securities 1,565
Equity and preferred securities and equity funds [Member] | Level 1 [Member]  
Assets  
Marketable securities 1,106
Equity and preferred securities and equity funds [Member] | Level 2 [Member]  
Assets  
Marketable securities 459
Equity and preferred securities and equity funds [Member] | Level 3 [Member]  
Assets  
Marketable securities 0
Debt funds [Member]  
Assets  
Marketable securities 2,216
Debt funds [Member] | Level 1 [Member]  
Assets  
Marketable securities 0
Debt funds [Member] | Level 2 [Member]  
Assets  
Marketable securities 2,216
Debt funds [Member] | Level 3 [Member]  
Assets  
Marketable securities $ 0
v3.5.0.2
Fair Value Measurements Activity Between Levels of the Fair Value Hierarchy, Assets (Details) - Mortgage- and asset-backed and auction rate securities [Member] - USD ($)
$ in Millions
9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]    
Beginning balance of Level 3 $ 224 $ 269
Total realized and unrealized gains or losses included in investment income, net (3) 3
Total realized and unrealized gains or losses included in other comprehensive income (loss) (2) (4)
Purchases 2 62
Sales (103) (46)
Settlements (41) (57)
Transfers out of Level 3 (17) 0
Ending balance of Level 3 $ 60 $ 227
v3.5.0.2
Fair Value Measurements Nonrecurring Fair Value Measurements (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Nonrecurring Fair Value Measurements [Abstract]      
Impairment of Intangible Assets $ 11 $ 44 $ 11
v3.5.0.2
Marketable Securities (Details) - USD ($)
$ in Millions
Jun. 26, 2016
Sep. 27, 2015
Schedule of Marketable Securities [Line Items]    
Total marketable securities - Current $ 11,225 $ 9,761
Total marketable securities - Noncurrent 13,922 13,626
Ending balance of the credit loss portion of other-than-temporary impairments on debt securities 61  
Trading Securities [Abstract]    
Trading - Current 0 0
Trading - Noncurrent 0 618
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 11,225 9,761
Available-for-sale - Noncurrent 13,922 12,228
U.S. Treasury securities and government-related securities [Member]    
Trading Securities [Abstract]    
Trading - Current 0 0
Trading - Noncurrent 0 12
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 217 156
Available-for-sale - Noncurrent 1,931 691
Corporate bonds and notes [Member]    
Trading Securities [Abstract]    
Trading - Current 0 0
Trading - Noncurrent 0 364
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 9,381 7,926
Available-for-sale - Noncurrent 7,778 7,112
Mortgage- and asset-backed and auction rate securities [Member]    
Trading Securities [Abstract]    
Trading - Current 0 0
Trading - Noncurrent 0 242
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 1,521 1,302
Available-for-sale - Noncurrent 538 263
Equity and preferred securities and equity funds [Member]    
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 106 377
Available-for-sale - Noncurrent 1,459 1,253
Debt funds [Member]    
Available-for-sale Securities [Abstract]    
Available-for-sale - Current 0 0
Available-for-sale - Noncurrent 2,216 2,909
Fair Value Option [Abstract]    
Fair value option - Current 0 0
Fair value option - Noncurrent $ 0 $ 780
v3.5.0.2
Marketable Securities Available-for-sale Securities (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jun. 26, 2016
Jun. 28, 2015
Jun. 26, 2016
Jun. 28, 2015
Sep. 27, 2015
Contractual maturities of available-for-sale debt securities [Abstract]          
Years to Maturity - Less Than One Year $ 3,987   $ 3,987    
Years to Maturity - One to Five Years 12,341   12,341    
Years to Maturity - Five to Ten Years 2,103   2,103    
Years to Maturity - Greater Than Ten Years 788   788    
Years to Maturity - No Single Maturity Date 4,363   4,363    
Realized Gains and Losses on Sales of Available-for-sale Securities [Abstract]          
Gross Realized Gains 62 $ 126 146 $ 434  
Gross Realized Losses (8) (10) (30) (48)  
Net Realized Gains 54 $ 116 116 $ 386  
Available-for-sale Securities [Abstract]          
Available-for-sale Equity Securities, Cost 1,355   1,355   $ 1,394
Available-for-sale Equity Securities, Unrealized Gains 254   254   264
Available-for-sale Equity Securities, Unrealized Losses (44)   (44)   (28)
Available-for-sale Securities Equity Securities, Fair Value 1,565   1,565   1,630
Available-for-sale Debt Securities (including debt funds), Cost 23,461   23,461   20,459
Available-for-sale Debt Securities (including debt funds), Unrealized Gains 292   292   185
Available-for-sale Debt Securities (including debt funds), Unrealized Losses (171)   (171)   (285)
Available-for-sale Debt Securities, Fair Value 23,582   23,582   20,359
Available-for-sale Securities, Cost 24,816   24,816   21,853
Available-for-sale Securities, Unrealized Gains 546   546   449
Available-for-sale Securities, Unrealized Losses (215)   (215)   (313)
Fair Value 25,147   25,147   21,989
Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]          
Less than 12 months - Fair Value 4,777   4,777   11,006
More than 12 months - Fair Value 2,656   2,656   617
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (90)   (90)   (245)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses (125)   (125)   (68)
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 421   421   304
More than 12 months - Fair Value 35   35   0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (2)   (2)   (4)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses (1)   (1)   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 3,054   3,054   7,656
More than 12 months - Fair Value 1,488   1,488   368
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (36)   (36)   (93)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses (82)   (82)   (62)
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 537   537   862
More than 12 months - Fair Value 265   265   108
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (5)   (5)   (3)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses (2)   (2)   (1)
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 447   447   392
More than 12 months - Fair Value 5   5   17
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (43)   (43)   (28)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses (1)   (1)   0
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 318   318   1,792
More than 12 months - Fair Value 863   863   124
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized losses (4)   (4)   (117)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized losses $ (39)   $ (39)   $ (5)