Document and Entity Information Document

6 Months Ended

Mar. 29, 2015

Apr. 20, 2015

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

--09-27

Entity Filer Category

Large Accelerated Filer

Document Type

10-Q

Document Period End Date

Mar. 29, 2015

Document Fiscal Year Focus

2015

Document Fiscal Period Focus

Q2

Amendment Flag

false

Entity Common Stock, Shares Outstanding

1,629,569,117

Entity Well-known Seasoned Issuer

Yes

Entity Voluntary Filers

No

Entity Current Reporting Status

Yes

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)

In Millions, unless otherwise specified

Mar. 29, 2015

Sep. 28, 2014

Current assets:

Cash and cash equivalents

$ 5,492

$ 7,907

Marketable securities

10,063

9,658

Accounts receivable, net

2,058

2,412

Inventories

1,861

1,458

Deferred tax assets

533

577

Other current assets

733

401

Total current assets

20,740

22,413

Marketable securities

14,055

14,457

Deferred tax assets

1,049

1,174

Property, plant and equipment, net

2,523

2,487

Goodwill

4,388

4,488

Other intangible assets, net

2,482

2,580

Other assets

1,936

975

Total assets

47,173

48,574

Current liabilities:

Trade accounts payable

1,683

2,183

Payroll and other benefits related liabilities

744

802

Unearned revenues

778

785

Short-term debt

1,096

0

Other current liabilities

1,868

2,243

Total current liabilities

6,169

6,013

Unearned revenues

2,667

2,967

Other liabilities

503

428

Total liabilities

9,339

9,408

Commitments and contingencies (Note 7)

Qualcomm stockholders' equity:

Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding

0

Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,633 and 1,669 shares issued and outstanding, respectively

4,956

7,736

Retained earnings

32,411

30,799

Accumulated other comprehensive income

472

634

Total Qualcomm stockholders' equity

37,839

39,169

Noncontrolling interests

(5)

(3)

Total stockholders' equity

37,834

39,166

Total liabilities and stockholders' equity

$ 47,173

$ 48,574

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $)

In Millions, except Per Share data, unless otherwise specified

Mar. 29, 2015

Sep. 28, 2014

Preferred stock, par value

$ 0.0001

Preferred stock, shares authorized

8

Preferred stock, shares outstanding

0

Common stock, par value

$ 0.0001

Common stock, shares authorized

6,000

Common stock, shares issued

1,633

1,669

Common stock, shares outstanding

1,633

1,669

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Revenues:

Equipment and services

$ 4,403

$ 4,229

$ 9,619

$ 8,881

Licensing

2,491

2,138

4,374

4,108

Total revenues

6,894

6,367

13,993

12,989

Costs and expenses:

Cost of equipment and services revenues

2,628

2,482

5,676

5,189

Research and development

1,375

1,356

2,726

2,683

Selling, general and administrative

545

539

1,112

1,162

Other

1,010

0

1,079

472

Total costs and expenses

5,558

4,377

10,593

9,506

Operating income

1,336

1,990

3,400

3,483

Investment income, net (Note 3)

203

282

437

546

Income from continuing operations before income taxes

1,539

2,272

3,837

4,029

Income tax expense

(487)

(314)

(814)

(626)

Income from continuing operations

1,052

1,958

3,023

3,403

Discontinued operations, net of income taxes (Note 10)

0

430

Net income

1,052

1,958

3,023

3,833

Net loss attributable to noncontrolling interests

1

2

Net income attributable to Qualcomm

$ 1,053

$ 1,959

$ 3,025

$ 3,835

Basic earnings per share attributable to Qualcomm:

Continuing operations

$ 0.64

$ 1.16

$ 1.83

$ 2.02

Discontinued operations

$ 0.00

$ 0.25

Net income

$ 0.64

$ 1.16

$ 1.83

$ 2.27

Diluted earnings per share attributable to Qualcomm:

Continuing operations

$ 0.63

$ 1.14

$ 1.80

$ 1.98

Discontinued operations

$ 0.00

$ 0.25

Net income

$ 0.63

$ 1.14

$ 1.80

$ 2.23

Shares used in per share calculations:

Basic

1,645

1,688

1,653

1,688

Diluted

1,667

1,719

1,677

1,721

Dividends per share announced

$ 0.42

$ 0.35

$ 0.84

$ 0.70

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Net income

$ 1,052

$ 1,958

$ 3,023

$ 3,833

Other comprehensive income (loss), net of income taxes:

Foreign currency translation (losses) gains

(10)

0

(31)

6

Reclassification of foreign currency translation losses included in net income

0

1

Noncredit other-than-temporary impairment losses and subsequent changes in fair value related to certain available-for-sale debt securities

(1)

1

(10)

1

Reclassification of other-than-temporary losses on available-for-sale securities included in net income

19

72

60

92

Net unrealized gains (losses) on other available-for-sale marketable securities

98

102

(6)

179

Reclassification of net realized gains on available-for-sale securities included in net income

(64)

(144)

(175)

(217)

Net unrealized gains on derivative instruments

2

1

0

8

Reclassification of net realized gains on derivative instruments included in net income

0

(7)

0

(13)

Total other comprehensive income (loss)

44

25

(162)

57

Total comprehensive income

1,096

1,983

2,861

3,890

Comprehensive loss attributable to noncontrolling interests

1

2

Comprehensive income attributable to Qualcomm

$ 1,097

$ 1,984

$ 2,863

$ 3,892

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Operating Activities:

Net income

$ 3,023

$ 3,833

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

591

561

Gain on sale of discontinued operations

0

(665)

Long-lived asset and goodwill impairment charges

138

479

Income tax provision in excess of income tax payments

73

268

Non-cash portion of share-based compensation expense

522

532

Incremental tax benefits from share-based compensation

(78)

(169)

Net realized gains on marketable securities and other investments

(277)

(388)

Impairment losses on marketable securities and other investments

106

159

Other items, net

(30)

(20)

Changes in assets and liabilities:

Accounts receivable, net

338

(96)

Inventories

(403)

153

Other assets

(1,138)

127

Trade accounts payable

(508)

35

Payroll, benefits and other liabilities

(405)

(102)

Unearned revenues

(246)

(112)

Net cash provided by operating activities

1,706

4,595

Investing Activities:

Capital expenditures

(449)

(797)

Purchases of available-for-sale securities

(8,758)

(7,827)

Proceeds from sales and maturities of available-for-sale securities

8,631

5,684

Purchases of trading securities

(695)

(1,814)

Proceeds from sales and maturities of trading securities

710

1,793

Proceeds from sale of discontinued operations, net of cash sold

0

788

Acquisitions and other investments, net of cash acquired

(178)

(347)

Other items, net

49

62

Net cash used by investing activities

(690)

(2,458)

Financing Activities:

Proceeds from issuance of common stock

417

953

Repurchases and retirements of common stock

(3,611)

(2,004)

Dividends paid

(1,385)

(1,179)

Proceeds from short-term debt

1,095

0

Incremental tax benefits from share-based compensation

78

169

Change in obligations under securities lending

(2)

123

Other items, net

(8)

(3)

Net cash used by financing activities

(3,416)

(1,941)

Effect of exchange rate changes on cash and cash equivalents

(15)

(1)

Net (decrease) increase in cash and cash equivalents

(2,415)

195

Cash and cash equivalents at beginning of period

7,907

6,142

Cash and cash equivalents at end of period

$ 5,492

$ 6,337

Basis of Presentation

Note 1 — 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 28, 2014. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three-month and six-month periods ended March 29, 2015 and March 30, 2014 included 13 weeks and 26 weeks, respectively.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. 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 combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and shares subject to written put options, 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 six months ended March 29, 2015 were 21,588,000 and 23,295,000, respectively. The dilutive common share equivalents, calculated using the treasury stock method, for the three and six months ended March 30, 2014 were 30,989,000 and 32,656,000, respectively. Shares of common stock equivalents outstanding that were not included in the computation of diluted earnings per common share because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period were 18,000 and 744,000 during the three and six months ended March 29, 2015, respectively, and 12,000 and 413,000 during the three and six months ended March 30, 2014, respectively.

Share-Based Compensation. Total share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):



	Three Months Ended						Six Months Ended
	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014
Cost of equipment and services revenues	$	11		$	13		$	23		$	25
Research and development	158			163			333			336
Selling, general and administrative	80			75			166			171
Share-based compensation expense before income taxes	249			251			522			532
Related income tax benefit	(43		)	(53		)	(86		)	(109		)
	$	206		$	198		$	436		$	423

The Company recorded $81 million and $82 million in share-based compensation expense during the six months ended March 29, 2015 and March 30, 2014, respectively, related to share-based awards granted during those periods. At March 29, 2015, total unrecognized compensation expense related to non-vested restricted stock units granted prior to that date was $1.3 billion, which is expected to be recognized over a weighted-average period of 1.8 years. During the six months ended March 29, 2015 and March 30, 2014, net share-based awards granted, after forfeitures and cancelations, represented 0.4% of outstanding shares as of the beginning of each fiscal period, and total share-based awards granted represented 0.5% of outstanding shares as of the end of each fiscal period.

Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new standard 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. ASU 2014-09 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 ASU as currently issued will be effective for the Company starting in the first quarter of fiscal 2018. On April 1, 2015, the FASB voted to propose a one-year deferral to the effective date, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date). The proposal will be subject to the FASB’s due process requirement, which includes a period for public comments. The new standard allows for two methods of adoption: (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 standard is recognized as an adjustment to the opening retained earnings balance. The Company is in the process of determining the adoption method as well as the effects the adoption will have on its consolidated financial statements.

Composition of Certain Financial Statement Items

Note 2 — Composition of Certain Financial Statement Items



Accounts Receivable (in millions)
	March 29, 2015		September 28, 2014
Trade, net of allowances for doubtful accounts of $5 and $5, respectively	$	2,040	$	2,362
Long-term contracts	11		17
Other	7		33
	$	2,058	$	2,412



Inventories (in millions)
	March 29, 2015		September 28, 2014
Raw materials	$	1	$	1
Work-in-process	903		656
Finished goods	957		801
	$	1,861	$	1,458



Other Current Liabilities (in millions)
	March 29, 2015		September 28, 2014
Customer incentives and other customer-related liabilities	$	1,452	$	1,777
Other	416		466
	$	1,868	$	2,243

Investment Income, Net

Investment Income, Net (in millions)

Note 3 — Investment Income, Net (in millions)



	Three Months Ended						Six Months Ended
	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014
Interest and dividend income	$	138		$	167		$	272		$	322
Interest expense	(1		)	(3		)	(2		)	(5		)
Net realized gains on marketable securities	108			243			264			371
Net realized gains on other investments	3			—			13			17
Impairment losses on marketable securities	(27		)	(112		)	(89		)	(141		)
Impairment losses on other investments	(14		)	(11		)	(17		)	(18		)
Net gains on derivative instruments	2			—			6			4
Equity in net losses of investees	(9		)	(4		)	(13		)	(5		)
Net gains on deconsolidation of subsidiaries	3			2			3			1
	$	203		$	282		$	437		$	546

Income Taxes

Note 4 — Income Taxes

The Company estimates its annual effective income tax rate for continuing operations to be approximately 21% for fiscal 2015, which is greater than its 14% effective income tax rate for fiscal 2014. Tax benefits from foreign income taxed at rates lower than rates in the United States are expected to be approximately 17% in fiscal 2015, compared to 20% in fiscal 2014.

During the second quarter of fiscal 2015, the China National Development and Reform Commission (NDRC) imposed a $975 million fine on the Company (Note 7). The fine is not deductible for tax purposes. Given the significant unusual nature of the fine, it was accounted for discretely in the second quarter of fiscal 2015. Also, during the second quarter of fiscal 2015, the Company recorded a $61 million tax benefit as a result of a favorable tax audit settlement with the Internal Revenue Service related to Qualcomm Atheros, Inc.’s pre-acquisition 2010 and 2011 tax returns.

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 Company recorded a tax benefit of $101 million related to fiscal 2014 in the first quarter of fiscal 2015. Additionally, the estimated annual effective tax rate for fiscal 2015 reflects the United States federal research and development tax credit generated through December 31, 2014, the date on which the credit expired. The annual effective tax rate for fiscal 2014 reflected the tax benefit from the credit generated through December 31, 2013, the date on which the credit previously expired.

The effective tax rate of 32% for the second quarter of fiscal 2015 was greater than the estimated annual effective tax rate of 21% primarily as a result of the NDRC fine, partially offset by the favorable tax audit settlement.

Stockholders' Equity

Note 5 — Stockholders’ Equity

Changes in stockholders’ equity for the six months ended March 29, 2015 were as follows (in millions):



	Qualcomm Stockholders’ Equity			Noncontrolling Interests			Total Stockholders’ Equity
Balance at September 28, 2014	$	39,169		$	(3	)	$	39,166
Net income (loss)	3,025			(2		)	3,023
Other comprehensive loss	(162		)	—			(162		)
Common stock issued under employee benefit plans and related tax benefits	476			—			476
Share-based compensation	548			—			548
Tax withholding related to vesting of restricted stock units	(193		)	—			(193		)
Dividends	(1,412		)	—			(1,412		)
Stock repurchases	(3,611		)	—			(3,611		)
Other	(1		)	—			(1		)
Balance at March 29, 2015	$	37,839		$	(5	)	$	37,834

Accumulated Other Comprehensive Income. Changes in the components of accumulated other comprehensive income, net of income taxes, in Qualcomm stockholders’ equity during the six months ended March 29, 2015 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			Total Accumulated Other Comprehensive Income
Balance at September 28, 2014	$	(113	)	$	24		$	723		$	634
Other comprehensive loss before reclassifications	(31		)	(7		)	(6		)	(44		)
Reclassifications from accumulated other comprehensive income	—			4			(122		)	(118		)
Other comprehensive loss	(31		)	(3		)	(128		)	(162		)
Balance at March 29, 2015	$	(144	)	$	21		$	595		$	472

Reclassifications from accumulated other comprehensive income related to available-for-sale securities and foreign currency translation adjustment of $47 million and $118 million for the three and six months ended March 29, 2015, respectively, and $71 million and $124 million for the three and six months ended March 30, 2014, respectively, were recorded in investment income, net (Note 3). Reclassifications from accumulated other comprehensive income related to derivative instruments of $7 million and $13 million for the three and six months ended March 30, 2014, respectively, were recorded in revenues, cost of equipment and services revenues, research and development expenses and selling, general and administrative expenses.

Stock Repurchase Program. On March 9, 2015, the Company announced a stock repurchase program authorizing it to repurchase up to $15 billion of the Company’s common stock. The stock repurchase program has no expiration date. The $15 billion stock repurchase program replaced a $7.8 billion stock repurchase program announced on March 4, 2014, of which $2.1 billion remained authorized for repurchase. During the six months ended March 29, 2015 and March 30, 2014, the Company repurchased and retired 50,699,000 and 27,586,000 shares of common stock, respectively, for $3.6 billion and $2.0 billion, respectively, before commissions. At March 29, 2015, approximately $14.5 billion remained authorized for repurchase under the Company’s stock repurchase program. Since March 29, 2015, the Company repurchased and retired 5,061,000 shares of common stock for $345 million.

Dividends. On March 9, 2015, the Company announced a 14% increase in its quarterly cash dividend per share of common stock from $0.42 to $0.48, which is effective for dividends payable after March 25, 2015. On April 8, 2015, the Company announced a cash dividend of $0.48 per share on the Company’s common stock, payable on June 24, 2015 to stockholders of record as of the close of business on June 3, 2015. During the six months ended March 29, 2015 and March 30, 2014, dividends charged to retained earnings were as follows (in millions, except per share data):



	2015				2014
	Per Share		Total		Per Share		Total
First quarter	$	0.42	$	710	$	0.35	$	599
Second quarter	0.42		702		0.35		599
	$	0.84	$	1,412	$	0.70	$	1,198

Debt

Debt Disclosure [Text Block]

Note 6 — Debt

In February 2015, the Company entered into 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. Proceeds from the Revolving Credit Facility will be used for general corporate purposes. Loans under the Revolving Credit Facility bear interest, at the option of the Company, at either LIBOR (determined in accordance with the Revolving Credit Facility) plus a margin of 0.7% per annum or the Base Rate (determined in accordance with the Revolving Credit Facility), plus an initial margin of 0% per annum. The Revolving Credit Facility has a facility fee, which initially accrues at a rate of 0.05% per annum. 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 March 29, 2015, the Company was in compliance with the financial covenant, and the Company had not borrowed any funds under the Revolving Credit Facility.

In March 2015, the Company began 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 March 29, 2015, the Company had $1.1 billion of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 0.14%, which included fees paid to the commercial paper dealers, and weighted-average remaining days to maturity of 58 days. The carrying value of the outstanding commercial paper approximated its estimated fair value at March 29, 2015.

Commitments and Contingencies

Note 7 — 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 infringe 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 are invalid. On October 24, 2013, the jury returned a separate verdict assessing total past damages of approximately $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. Post-verdict motions, including the Company’s motions for judgment as a matter of law and a new trial on invalidity and non-infringement and ParkerVision’s motions for injunctive relief and ongoing royalties, were filed by January 24, 2014. A hearing on these motions was held on May 1, 2014. 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 the remaining motions 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 will hear the appeal on May 8, 2015 and issue a decision sometime thereafter. 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 compliant, 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 now alleges that the Company infringes 11 additional patents and seeks damages and injunctive and other relief. The Company was served with the complaint in this second action on August 28, 2014 and answered on November 17, 2014. The judge’s schedule sets the claim construction hearing for August 12, 2015, the close of discovery for January 2016 and the trial for August 2016.

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 United States International Trade Commission (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 seeks an exclusion order barring the importation of certain consumer electronics and display device products, including some that incorporate the Company’s chip 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 of Delaware complaint, Nvidia is seeking an award of damages for the infringement of the asserted patents, a finding that such infringement is 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. On April 2, 2015, the Administrative Law Judge in the ITC investigation issued a claim construction order construing seven claim terms from five of the seven asserted patents. The evidentiary hearing for the investigation is set for June 22 to June 26, 2015. The Initial Determination of the Administrative Law Judge is due October 9, 2015, and the target date for completion of the investigation by the ITC is set for February 10, 2016. The district court case was stayed on October 23, 2014 pending completion of the ITC investigation including appeals.

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 has provided and continues to provide additional documents and information as requested by the Commission. The Company continues to cooperate with the Commission’s preliminary investigation.

Korea Fair Trade Commission (KFTC) Complaint: On January 4, 2010, the KFTC issued a written decision finding that the Company had violated South Korean law by offering certain discounts and rebates for purchases of its CDMA chips 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 2015 with respect to this matter.

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 26 different dates, with the next hearing scheduled for May 25, 2015.

Securities and Exchange Commission (SEC) Formal Order of Private Investigation and Department of Justice Investigation: On September 8, 2010, the Company was notified by the SEC’s Los Angeles Regional office of a formal order of private investigation. The Company understands that the investigation arose from a “whistleblower’s” allegations made in December 2009 to the audit committee of the Company’s Board of Directors and to the SEC. In 2010, the audit committee completed an internal review of the allegations with the assistance of independent counsel and independent forensic accountants. This internal review into the whistleblower’s allegations and related accounting practices did not identify any errors in the Company’s financial statements. On January 27, 2012, the Company learned that the U.S. Attorney’s Office for the Southern District of California/Department of Justice (collectively, DOJ) had begun an investigation regarding the Company’s compliance with the Foreign Corrupt Practices Act (FCPA). As discussed below, FCPA compliance is also the focus of the SEC investigation. The audit committee conducted an internal review of the Company’s compliance with the FCPA and its related policies and procedures with the assistance of independent counsel and independent forensic accountants. The audit committee has completed this comprehensive review, made findings consistent with the Company’s findings described below and suggested enhancements to the Company’s overall FCPA compliance program. In part as a result of the audit committee’s review, the Company has made and continues to make enhancements to its FCPA compliance program, including implementation of the audit committee’s recommendations.

As previously disclosed, the Company discovered, and as a part of its cooperation with these investigations informed the SEC and the DOJ of, instances in which special hiring consideration, gifts or other benefits (collectively, benefits) were provided to several individuals associated with Chinese state-owned companies or agencies. Based on the facts currently known, the Company believes the aggregate monetary value of the benefits in question to be less than $250,000, excluding employment compensation.

On March 13, 2014, the Company received a Wells Notice from the SEC’s Los Angeles Regional Office indicating that the staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company for violations of the anti-bribery, books and records and internal control provisions of the FCPA. The bribery allegations relate to benefits offered or provided to individuals associated with Chinese state-owned companies or agencies. The Wells Notice indicated that the recommendation could involve a civil injunctive action and could seek remedies that include disgorgement of profits, the retention of an independent compliance monitor to review the Company’s FCPA policies and procedures, an injunction, civil monetary penalties and prejudgment interest.

A Wells Notice is not a formal allegation or finding by the SEC of wrongdoing or violation of law. Rather, the purpose of a Wells Notice is to give the recipient an opportunity to make a “Wells submission” setting forth reasons why the proposed enforcement action should not be filed and/or bringing additional facts to the SEC’s attention before any decision is made by the SEC as to whether to commence a proceeding. On April 4, 2014 and May 29, 2014, the Company made Wells submissions to the staff of the Los Angeles Regional Office explaining why the Company believes it has not violated the FCPA and therefore enforcement action is not warranted.

The Company is continuing to cooperate with the SEC and the DOJ, but is unable to predict the outcome of their investigations or any actions that the SEC or DOJ may decide to file.

China National Development and Reform Commission (NDRC) Investigation: In November 2013, the NDRC notified the Company that it had commenced an investigation of the Company relating to China’s Anti-Monopoly Law (AML). The investigation concerned primarily the Company’s licensing business and certain interactions between the Company’s licensing business and its chipset business. On February 9, 2015, the Company announced that it had reached a resolution with the NDRC regarding the investigation. The NDRC issued an Administrative Sanction Decision finding that the Company had violated the AML, and the Company agreed to implement a rectification plan that modifies certain of its business practices in China. The NDRC has reviewed that plan and stated that it satisfies their decision. The Company will not pursue further legal proceedings contesting the NDRC’s findings.

The key terms of the rectification plan provide that the Company will offer licenses for devices under its current 3G and 4G essential Chinese patents separately from licenses to its other patents and will provide patent lists during the negotiation process. If the Company seeks a cross license from a Chinese licensee as part of such offer, it will negotiate with the licensee in good faith and provide fair consideration for such rights. For licenses of the Company’s 3G and 4G essential Chinese patents for branded devices sold for use in China starting on January 1, 2015, the Company will charge running royalties of 5% for 3G CDMA or WCDMA devices (including multimode 3G/4G devices) and 3.5% for 4G devices that do not implement CDMA or WCDMA (including 3-mode LTE-TDD devices), in each case using a royalty base of 65% of the net selling price of the device. Consistent with the plan, the Company has offered its existing licensees the revised terms for sales of devices for use in China. The plan also provides that the Company will not condition the sale of baseband chipsets on the chipset customer signing a license agreement with terms that the NDRC found to be unreasonable or on the chipset customer not challenging unreasonable terms in its license agreement. The rectification plan does not require the Company to sell chipsets to any entity that is not a patent licensee of the Company.

In addition, the NDRC imposed a fine on the Company of 6.088 billion Chinese Yuan Renminbi (approximately $975 million), which the Company has paid. The Company recorded the amount of the fine in the second quarter of fiscal 2015 as a charge in other expenses.

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. 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 continues to cooperate with the FTC as it conducts its investigation.

European Commission (Commission) Investigation: On October 15, 2014, the Commission notified the Company that it is conducting an investigation of the Company relating to Article 101 and/or 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 and/or 54 of the Agreement for the European Economic Area (EEA Agreement). The Company understands that the investigation concerns the sale and/or marketing of the Company’s baseband chipsets, including alleged conditions relating to the provision by the Company of rebates and/or other financial incentives. 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. Given that this investigation is in its early stages, it is difficult to predict the outcome or what remedies, if any, may be imposed by the Commission. The Company continues to cooperate with the Commission as it conducts its investigation.

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). The Company understands that this investigation concerns primarily its licensing business. If a violation of the MRFTA is found, a broad range of remedies is potentially available to the KFTC, including imposing a fine or requiring modifications to the Company’s licensing practices. Given that this investigation is in its early stages, it is difficult to predict the outcome of this matter or what remedies, if any, may be imposed by the KFTC. The Company continues to cooperate with the KFTC as it conducts its investigation.

With the exception of the NDRC matter, which has been resolved, the Company will continue to vigorously defend itself in the foregoing matters. However, litigation and investigations are inherently uncertain. Accordingly, the Company cannot predict the outcome of these matters. The Company has not recorded any accrual at March 29, 2015 for contingent losses associated with these matters based on its belief that losses, while possible, are not probable. Further, any possible range of loss cannot be reasonably estimated at this time. The unfavorable resolution of one or more of these matters could have a material adverse effect on the Company’s business, results of operations, financial condition or cash flows. The Company is engaged in numerous other legal actions not described above arising in the ordinary course of its business and, while there can be no assurance, believes that the ultimate outcome of these other legal actions will not have a material adverse effect on its business, results of operations, financial condition or cash flows.

Indemnifications. The Company generally does not indemnify its customers and licensees for losses sustained from infringement of third-party intellectual property rights. However, the Company is contingently liable under certain product sales, services, license and other agreements to indemnify certain customers against certain types of liability and/or damages arising from qualifying claims of patent, copyright, trademark or trade secret infringement by products or services sold or provided by the Company. The Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by the Company. Through March 29, 2015, 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.

These indemnification arrangements are not initially measured and recognized at fair value because they are deemed to be similar to product warranties in that they relate to claims and/or other actions that could impair the ability of the Company’s direct or indirect customers to use the Company’s products or services. Accordingly, the Company records liabilities resulting from the arrangements when they are probable and can be reasonably estimated. Reimbursements under indemnification arrangements have not been material to the Company’s consolidated financial statements. The Company has not recorded any accrual for contingent liabilities at March 29, 2015 associated with these indemnification arrangements, other than insignificant 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 March 29, 2015 for the remainder of fiscal 2015 and for each of the subsequent four years from fiscal 2016 through 2019 were approximately $3.2 billion, $1.2 billion, $941 million, $797 million and $733 million, respectively, and $208 million thereafter. Of these amounts, for the remainder of fiscal 2015 and for each of the subsequent four years from fiscal 2016 through 2019, commitments to purchase integrated circuit product inventories comprised $2.5 billion, $994 million, $794 million, $715 million and $665 million, respectively, and $185 million thereafter. Integrated circuit product inventory obligations represent purchase commitments for wafers, die, finished goods and manufacturing services, such as wafer bump, probe, assembly and final test. Under the Company’s manufacturing relationships with its foundry suppliers and assembly and test service providers, cancelation of outstanding purchase commitments is generally allowed but requires payment of costs incurred through the date of cancelation, and in some cases, incremental fees related to capacity underutilization.

Operating Leases. The Company leases certain of its land, facilities and equipment under noncancelable operating leases, with terms ranging from less than one year to 20 years and with provisions in certain leases for cost-of-living increases. Future minimum lease payments for the remainder of fiscal 2015 and for each of the subsequent four years from fiscal 2016 through 2019 are $45 million, $80 million, $61 million, $33 million and $21 million, respectively, and $21 million thereafter.

Segment Information

Note 8 — 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. The Company also has nonreportable segments, including its QMT (Qualcomm MEMS Technologies), Pixtronix and Small Cells divisions 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 net investment income; certain share-based compensation; and certain research and development expenses, selling, general and administrative expenses and other expenses or income that were deemed to be not directly related to the businesses of the segments. Additionally, unallocated charges include recognition of the step-up of inventories to fair value, amortization and impairment of certain intangible assets and certain other acquisition-related charges, and beginning in the first quarter of fiscal 2015, 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. The table below presents revenues and EBT for reportable segments (in millions):



	QCT		QTL		QSI			Reconciling Items			Total
For the three months ended
March 29, 2015
Revenues	$	4,434	$	2,414	$	—		$	46		$	6,894
EBT	750		2,162		(32		)	(1,341		)	1,539
March 30, 2014
Revenues	$	4,243	$	2,071	$	—		$	53		$	6,367
EBT	740		1,834		(39		)	(263		)	2,272

For the six months ended
March 29, 2015
Revenues	$	9,676	$	4,230	$	—		$	87		$	13,993
EBT	1,896		3,741		(33		)	(1,767		)	3,837
March 30, 2014
Revenues	$	8,859	$	3,971	$	—		$	159		$	12,989
EBT	1,646		3,504		(35		)	(1,086		)	4,029

Intersegment revenues included in QCT revenues were negligible in all periods presented. All other revenues for reportable segments were from external customers for all periods presented.

Reconciling items in the previous table were as follows (in millions):



	Three Months Ended						Six Months Ended
	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014
Revenues
Nonreportable segments	$	47		$	53		$	90		$	162
Intersegment eliminations	(1		)	—			(3		)	(3		)
	$	46		$	53		$	87		$	159
EBT
Unallocated cost of equipment and services revenues	$	(74	)	$	(75	)	$	(152	)	$	(148	)
Unallocated research and development expenses	(226		)	(217		)	(437		)	(434		)
Unallocated selling, general and administrative expenses	(100		)	(85		)	(249		)	(210		)
Unallocated other expense	(1,010		)	—			(1,079		)	(12		)
Unallocated investment income, net	232			314			462			571
Nonreportable segments	(163		)	(200		)	(311		)	(853		)
Intersegment eliminations	—			—			(1		)	—
	$	(1,341	)	$	(263	)	$	(1,767	)	$	(1,086	)

Unallocated other expense for the six months ended March 29, 2015 included a $975 million charge related to the resolution reached with the NDRC (Note 7) and $104 million in goodwill impairment charges related to two of the Company’s nonreportable segments (Note 11). Nonreportable segments EBT for the six months ended March 30, 2014 included $444 million in impairment charges related to property, plant and equipment (Note 11).

Unallocated acquisition-related expenses were comprised as follows (in millions):



	Three Months Ended				Six Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
Cost of equipment and services revenues	$	63	$	62	$	129	$	123
Research and development expenses	3		22		8		23
Selling, general and administrative expenses	13		6		25		13

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, wireless spectrum, other investments and all assets of consolidated subsidiaries included in QSI. 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, goodwill, other intangible assets and assets of nonreportable segments. Segment assets and reconciling items were as follows (in millions):



	March 29, 2015		September 28, 2014
QCT	$	3,412	$	3,639
QTL	475		161
QSI	614		484
Reconciling items	42,672		44,290
Total consolidated assets	$	47,173	$	48,574

Acquisitions

Note 9 — Acquisitions

In October 2014, the Company announced that it had reached agreement with CSR plc on the terms of a recommended cash offer to acquire the entire issued and to be issued ordinary share capital of CSR for £9.00 per ordinary share, which values the entire issued and to be issued share capital of CSR at approximately £1.6 billion (approximately $2.3 billion based upon an exchange rate of USD: GBP 1.4929). CSR is an innovator in the development of multifunction semiconductor platforms and technologies for the automotive, consumer and voice and music market categories. The acquisition complements the Company’s current offerings by adding products, channels and customers in the growth categories of the Internet of Everything and automotive infotainment, accelerating the Company’s presence and path to leadership. The acquisition has received approval of CSR’s shareholders, and every required regulatory agency has either provided approval or declined to exercise jurisdiction, except for the Ministry of Commerce in China. The completion of the acquisition remains subject to satisfaction of additional conditions. Subject to the satisfaction of these conditions, the acquisition is expected to close by the end of the summer of 2015. In connection with the pending acquisition, the Company agreed to set aside certain cash, cash equivalents and marketable securities (Note 12).

Discontinued Operations

Note 10 — Discontinued Operations

On November 25, 2013, the Company completed its sale of the North and Latin America operations of its Omnitracs division to a U.S.-based private equity firm for cash consideration of $788 million (net of cash sold). As a result, the Company recorded a gain in discontinued operations of $665 million ($430 million net of income tax expense) during fiscal 2014. The revenues and operating results of the North and Latin America operations of the Omnitracs division, which comprised substantially all of the Omnitracs division, were not presented as discontinued operations in any fiscal period because they were immaterial.

Fair Value Measurements

Note 11 — Fair Value Measurements

The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 29, 2015 (in millions):



	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	2,453	$	2,751	$	—	$	5,204
Marketable securities (a)
U.S. Treasury securities and government-related securities	252		1,209		—		1,461
Corporate bonds and notes	—		15,440		—		15,440
Mortgage- and asset-backed securities	—		1,355		181		1,536
Auction rate securities	—		—		47		47
Common and preferred stock	676		715		—		1,391
Equity funds	646		—		—		646
Debt funds	—		3,597		—		3,597
Total marketable securities	1,574		22,316		228		24,118
Derivative instruments	1		6		—		7
Other investments (a)	318		—		—		318
Total assets measured at fair value	$	4,346	$	25,073	$	228	$	29,647
Liabilities
Derivative instruments	$	2	$	4	$	—	$	6
Other liabilities	294		—		—		294
Total liabilities measured at fair value	$	296	$	4	$	—	$	300

(a) Included amounts that are restricted (Note 12).

Activity between Levels of the Fair Value Hierarchy. There were no significant transfers between Level 1 and Level 2 during the six months ended March 29, 2015 or March 30, 2014. 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 marketable securities classified within Level 3 of the valuation hierarchy (in millions):



	Six Months Ended March 29, 2015						Six Months Ended March 30, 2014
	Auction Rate Securities			Mortgage- and Asset-Backed Securities			Auction Rate Securities		Mortgage- and Asset-Backed Securities
Beginning balance of Level 3	$	83		$	186		$	83	$	239
Total realized and unrealized gains or losses:
Included in investment income, net	—			3			—		3
Included in other comprehensive income	—			(4		)	—		1
Purchases	—			50			—		49
Sales	—			(41		)	—		(18		)
Settlements	(36		)	(13		)	—		(22		)
Transfers out of Level 3	—			—			—		(2		)
Ending balance of Level 3	$	47		$	181		$	83	$	250

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. There were no transfers in or out of Level 3 during the six months ended March 29, 2015. Transfers out of Level 3 during the six months ended March 30, 2014 primarily consisted of debt securities with significant upgrades in credit ratings.

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 six months ended March 29, 2015, the Company updated the business plans and related internal forecasts related to the Company’s push-to-talk services business and its display businesses, resulting in impairment charges of $104 million related to goodwill and $27 million related to in-process research and development (IPR&D). During the six months ended March 30, 2014, the Company recorded impairment charges of $444 million to write down certain property, plant and equipment related to one of the Company’s display businesses and $16 million related to goodwill in its former QRS division. The IPR&D impairment charge was recorded in research and development expenses, and the other impairment charges were recorded in other operating expenses. The Company determined the fair values using cost, income and market approaches. 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 six months ended March 29, 2015 and March 30, 2014, 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.

Marketable Securities

Note 12 — Marketable Securities

Marketable securities were comprised as follows (in millions):



	Current				Noncurrent
	March 29, 2015		September 28, 2014		March 29, 2015		September 28, 2014
Trading:
U.S. Treasury securities and government-related securities	$	338	$	320	$	23	$	38
Corporate bonds and notes	177		191		345		367
Mortgage- and asset-backed securities	—		—		240		237
Total trading	515		511		608		642
Available-for-sale:
U.S. Treasury securities and government-related securities	385		805		715		392
Corporate bonds and notes	7,250		6,274		7,668		7,649
Mortgage- and asset-backed securities	1,091		1,063		205		195
Auction rate securities	—		—		47		83
Common and preferred stock	572		192		819		1,605
Equity funds	—		—		646		541
Debt funds	250		813		2,559		2,560
Total available-for-sale	9,548		9,147		12,659		13,025
Fair value option:
Debt fund	—		—		788		790
Total marketable securities	$	10,063	$	9,658	$	14,055	$	14,457

In connection with the pending acquisition of CSR (Note 9), the Company agreed to set aside certain cash, cash equivalents and marketable securities to be held for purposes of satisfying payment of the consideration to effect the acquisition, which is expected to close by the end of the summer of 2015. At March 29, 2015, the fair values of the marketable securities that were set aside were $2.9 billion of corporate bonds and notes, $717 million of mortgage- and asset-backed securities and $140 million in U.S. Treasury securities and government-related securities. Additionally, $24 million in cash equivalents, which were recorded as other current assets, were set aside. If the combined fair values fall below approximately £1.9 billion (approximately $2.8 billion using an exchange rate of 1.4929), the Company may be required to set aside additional amounts. Additionally, if certain conditions are met, such as a reduction in the liquidity of any of the securities that are set aside, the Company may be required to liquidate the securities and transfer the cash to a third party until the acquisition closes.

The Company holds an investment in a debt fund for which the Company elected the fair value option because the Company is able to redeem its shares at net asset value, which is determined daily. The investment would have otherwise been recorded using the equity method. The debt fund has no single maturity date. At March 29, 2015, the Company had an effective ownership interest in the debt fund of 27%. Changes in fair value associated with this investment are recognized in net investment income. During the three and six months ended March 29, 2015, the changes in fair value associated with this investment were negligible. During the three and six months ended March 30, 2014, net increases in fair value associated with this investment were $12 million and $18 million, respectively.

The Company classifies certain portfolios of debt securities that utilize derivative instruments to acquire or reduce foreign exchange, interest rate and/or equity, prepayment and credit risks as trading. Net gains recognized on debt securities classified as trading held at March 29, 2015 were $14 million and negligible for the three and six months ended March 29, 2015, respectively. Net gains recognized on debt securities classified as trading held at March 30, 2014 were negligible for both the three and six months ended March 30, 2014.

At March 29, 2015, 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
$	2,818	$	11,245	$	1,363	$	592	$	4,152	$	20,170

Debt securities with no single maturity date included debt funds, mortgage- and asset-backed securities, auction rate securities and corporate bonds and notes.

The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions):



	Gross Realized Gains		Gross Realized Losses			Net Realized Gains
For the three months ended
March 29, 2015	$	128	$	(30	)	$	98
March 30, 2014	227		(5		)	222

For the six months ended
March 29, 2015	$	308	$	(37	)	$	271
March 30, 2014	343		(8		)	335

Available-for-sale securities were comprised as follows (in millions):



	Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 29, 2015
Equity securities	$	1,654	$	383	$	—		$	2,037
Debt securities (including debt funds)	19,940		311		(81		)	20,170
	$	21,594	$	694	$	(81	)	$	22,207
September 28, 2014
Equity securities	$	1,769	$	575	$	(6	)	$	2,338
Debt securities (including debt funds)	19,582		312		(60		)	19,834
	$	21,351	$	887	$	(66	)	$	22,172

The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that are classified as available-for-sale and have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category (in millions):



	March 29, 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	$	395	$	(3	)	$	—	$	—
Corporate bonds and notes	4,211		(58		)	201		(10		)
Mortgage- and asset-backed securities	535		(1		)	26		—
Auction rate securities	—		—			47		(1		)
Common and preferred stock	13		—			12		—
Debt funds	784		(7		)	38		(1		)
	$	5,938	$	(69	)	$	324	$	(12	)



	September 28, 2014
	Less than 12 months					More than 12 months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities and government-related securities	$	279	$	(2	)	$	—	$	—
Corporate bonds and notes	4,924		(31		)	104		(4		)
Mortgage- and asset-backed securities	484		(1		)	52		(1		)
Auction rate securities	—		—			83		(1		)
Common and preferred stock	86		(3		)	52		(3		)
Debt funds	133		(1		)	384		(19		)
	$	5,906	$	(38	)	$	675	$	(28	)

At March 29, 2015, 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 does not have the intent to sell, nor is 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 negligible at March 29, 2015 and March 30, 2014.

Basis of Presentation (Policies)

Fiscal Period, Policy

The Company operates and reports using a 52-53 week fiscal year ending on the last Sunday in September. Each of the three-month and six-month periods ended March 29, 2015 and March 30, 2014 included 13 weeks and 26 weeks, respectively.

Earnings Per Common Share

Basic earnings per common share are computed by dividing net income attributable to Qualcomm by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share are computed by dividing net income attributable to Qualcomm by the combination of dilutive common share equivalents, comprised of shares issuable under the Company’s share-based compensation plans and shares subject to written put options, 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 six months ended March 29, 2015 were 21,588,000 and 23,295,000, respectively. The dilutive common share equivalents, calculated using the treasury stock method, for the three and six months ended March 30, 2014 were 30,989,000 and 32,656,000, respectively. Shares of common stock equivalents outstanding that were not included in the computation of diluted earnings per common share because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period were 18,000 and 744,000 during the three and six months ended March 29, 2015, respectively, and 12,000 and 413,000 during the three and six months ended March 30, 2014, respectively

Recent Accounting Pronouncements

Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new standard 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. ASU 2014-09 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 ASU as currently issued will be effective for the Company starting in the first quarter of fiscal 2018. On April 1, 2015, the FASB voted to propose a one-year deferral to the effective date, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date). The proposal will be subject to the FASB’s due process requirement, which includes a period for public comments. The new standard allows for two methods of adoption: (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 standard is recognized as an adjustment to the opening retained earnings balance. The Company is in the process of determining the adoption method as well as the effects the adoption will have on its consolidated financial statements.

Marketable Securities (Policies)

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

Basis of Presentation (Tables)

Share-based compensation expense, related to all share-based awards

Total share-based compensation expense, related to all of the Company’s share-based awards, was comprised as follows (in millions):



	Three Months Ended						Six Months Ended
	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014
Cost of equipment and services revenues	$	11		$	13		$	23		$	25
Research and development	158			163			333			336
Selling, general and administrative	80			75			166			171
Share-based compensation expense before income taxes	249			251			522			532
Related income tax benefit	(43		)	(53		)	(86		)	(109		)
	$	206		$	198		$	436		$	423

Composition of Certain Financial Statement Items (Tables)

Accounts Receivable



Accounts Receivable (in millions)
	March 29, 2015		September 28, 2014
Trade, net of allowances for doubtful accounts of $5 and $5, respectively	$	2,040	$	2,362
Long-term contracts	11		17
Other	7		33
	$	2,058	$	2,412

Inventories



Inventories (in millions)
	March 29, 2015		September 28, 2014
Raw materials	$	1	$	1
Work-in-process	903		656
Finished goods	957		801
	$	1,861	$	1,458

Other Current Liabilities



Other Current Liabilities (in millions)
	March 29, 2015		September 28, 2014
Customer incentives and other customer-related liabilities	$	1,452	$	1,777
Other	416		466
	$	1,868	$	2,243

Investment Income, Net (Tables)

Investment Income, Net

Investment Income, Net (in millions)



	Three Months Ended						Six Months Ended
	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014
Interest and dividend income	$	138		$	167		$	272		$	322
Interest expense	(1		)	(3		)	(2		)	(5		)
Net realized gains on marketable securities	108			243			264			371
Net realized gains on other investments	3			—			13			17
Impairment losses on marketable securities	(27		)	(112		)	(89		)	(141		)
Impairment losses on other investments	(14		)	(11		)	(17		)	(18		)
Net gains on derivative instruments	2			—			6			4
Equity in net losses of investees	(9		)	(4		)	(13		)	(5		)
Net gains on deconsolidation of subsidiaries	3			2			3			1
	$	203		$	282		$	437		$	546

Stockholders' Equity (Tables)

Changes in stockholders' equity

Changes in stockholders’ equity for the six months ended March 29, 2015 were as follows (in millions):



	Qualcomm Stockholders’ Equity			Noncontrolling Interests			Total Stockholders’ Equity
Balance at September 28, 2014	$	39,169		$	(3	)	$	39,166
Net income (loss)	3,025			(2		)	3,023
Other comprehensive loss	(162		)	—			(162		)
Common stock issued under employee benefit plans and related tax benefits	476			—			476
Share-based compensation	548			—			548
Tax withholding related to vesting of restricted stock units	(193		)	—			(193		)
Dividends	(1,412		)	—			(1,412		)
Stock repurchases	(3,611		)	—			(3,611		)
Other	(1		)	—			(1		)
Balance at March 29, 2015	$	37,839		$	(5	)	$	37,834

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income. Changes in the components of accumulated other comprehensive income, net of income taxes, in Qualcomm stockholders’ equity during the six months ended March 29, 2015 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			Total Accumulated Other Comprehensive Income
Balance at September 28, 2014	$	(113	)	$	24		$	723		$	634
Other comprehensive loss before reclassifications	(31		)	(7		)	(6		)	(44		)
Reclassifications from accumulated other comprehensive income	—			4			(122		)	(118		)
Other comprehensive loss	(31		)	(3		)	(128		)	(162		)
Balance at March 29, 2015	$	(144	)	$	21		$	595		$	472

Dividends Declared

During the six months ended March 29, 2015 and March 30, 2014, dividends charged to retained earnings were as follows (in millions, except per share data):



	2015				2014
	Per Share		Total		Per Share		Total
First quarter	$	0.42	$	710	$	0.35	$	599
Second quarter	0.42		702		0.35		599
	$	0.84	$	1,412	$	0.70	$	1,198

Segment Information (Tables)

Revenues and EBT for reportable segments

The table below presents revenues and EBT for reportable segments (in millions):



	QCT		QTL		QSI			Reconciling Items			Total
For the three months ended
March 29, 2015
Revenues	$	4,434	$	2,414	$	—		$	46		$	6,894
EBT	750		2,162		(32		)	(1,341		)	1,539
March 30, 2014
Revenues	$	4,243	$	2,071	$	—		$	53		$	6,367
EBT	740		1,834		(39		)	(263		)	2,272

For the six months ended
March 29, 2015
Revenues	$	9,676	$	4,230	$	—		$	87		$	13,993
EBT	1,896		3,741		(33		)	(1,767		)	3,837
March 30, 2014
Revenues	$	8,859	$	3,971	$	—		$	159		$	12,989
EBT	1,646		3,504		(35		)	(1,086		)	4,029

Reconciling items for reportable segments - revenues

Reconciling items in the previous table were as follows (in millions):



	Three Months Ended						Six Months Ended
	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014
Revenues
Nonreportable segments	$	47		$	53		$	90		$	162
Intersegment eliminations	(1		)	—			(3		)	(3		)
	$	46		$	53		$	87		$	159
EBT
Unallocated cost of equipment and services revenues	$	(74	)	$	(75	)	$	(152	)	$	(148	)
Unallocated research and development expenses	(226		)	(217		)	(437		)	(434		)
Unallocated selling, general and administrative expenses	(100		)	(85		)	(249		)	(210		)
Unallocated other expense	(1,010		)	—			(1,079		)	(12		)
Unallocated investment income, net	232			314			462			571
Nonreportable segments	(163		)	(200		)	(311		)	(853		)
Intersegment eliminations	—			—			(1		)	—
	$	(1,341	)	$	(263	)	$	(1,767	)	$	(1,086	)

Reconciling items for reportable segments - EBT

Reconciling items in the previous table were as follows (in millions):



	Three Months Ended						Six Months Ended
	March 29, 2015			March 30, 2014			March 29, 2015			March 30, 2014
Revenues
Nonreportable segments	$	47		$	53		$	90		$	162
Intersegment eliminations	(1		)	—			(3		)	(3		)
	$	46		$	53		$	87		$	159
EBT
Unallocated cost of equipment and services revenues	$	(74	)	$	(75	)	$	(152	)	$	(148	)
Unallocated research and development expenses	(226		)	(217		)	(437		)	(434		)
Unallocated selling, general and administrative expenses	(100		)	(85		)	(249		)	(210		)
Unallocated other expense	(1,010		)	—			(1,079		)	(12		)
Unallocated investment income, net	232			314			462			571
Nonreportable segments	(163		)	(200		)	(311		)	(853		)
Intersegment eliminations	—			—			(1		)	—
	$	(1,341	)	$	(263	)	$	(1,767	)	$	(1,086	)

Unallocated acquisition-related expenses were comprised as follows (in millions):



	Three Months Ended				Six Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
Cost of equipment and services revenues	$	63	$	62	$	129	$	123
Research and development expenses	3		22		8		23
Selling, general and administrative expenses	13		6		25		13

Segment assets and reconciling items

Segment assets and reconciling items were as follows (in millions):



	March 29, 2015		September 28, 2014
QCT	$	3,412	$	3,639
QTL	475		161
QSI	614		484
Reconciling items	42,672		44,290
Total consolidated assets	$	47,173	$	48,574

Fair Value Measurements (Tables)

Fair value hierarchy for assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at March 29, 2015 (in millions):



	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	2,453	$	2,751	$	—	$	5,204
Marketable securities (a)
U.S. Treasury securities and government-related securities	252		1,209		—		1,461
Corporate bonds and notes	—		15,440		—		15,440
Mortgage- and asset-backed securities	—		1,355		181		1,536
Auction rate securities	—		—		47		47
Common and preferred stock	676		715		—		1,391
Equity funds	646		—		—		646
Debt funds	—		3,597		—		3,597
Total marketable securities	1,574		22,316		228		24,118
Derivative instruments	1		6		—		7
Other investments (a)	318		—		—		318
Total assets measured at fair value	$	4,346	$	25,073	$	228	$	29,647
Liabilities
Derivative instruments	$	2	$	4	$	—	$	6
Other liabilities	294		—		—		294
Total liabilities measured at fair value	$	296	$	4	$	—	$	300

(a) Included amounts that are restricted (Note 12).

Activity for marketable securities classified within Level 3 of the valuation hierarchy

The following table includes the activity for marketable securities classified within Level 3 of the valuation hierarchy (in millions):



	Six Months Ended March 29, 2015						Six Months Ended March 30, 2014
	Auction Rate Securities			Mortgage- and Asset-Backed Securities			Auction Rate Securities		Mortgage- and Asset-Backed Securities
Beginning balance of Level 3	$	83		$	186		$	83	$	239
Total realized and unrealized gains or losses:
Included in investment income, net	—			3			—		3
Included in other comprehensive income	—			(4		)	—		1
Purchases	—			50			—		49
Sales	—			(41		)	—		(18		)
Settlements	(36		)	(13		)	—		(22		)
Transfers out of Level 3	—			—			—		(2		)
Ending balance of Level 3	$	47		$	181		$	83	$	250

Marketable Securities (Tables)

Composition of marketable securities

Marketable securities were comprised as follows (in millions):



	Current				Noncurrent
	March 29, 2015		September 28, 2014		March 29, 2015		September 28, 2014
Trading:
U.S. Treasury securities and government-related securities	$	338	$	320	$	23	$	38
Corporate bonds and notes	177		191		345		367
Mortgage- and asset-backed securities	—		—		240		237
Total trading	515		511		608		642
Available-for-sale:
U.S. Treasury securities and government-related securities	385		805		715		392
Corporate bonds and notes	7,250		6,274		7,668		7,649
Mortgage- and asset-backed securities	1,091		1,063		205		195
Auction rate securities	—		—		47		83
Common and preferred stock	572		192		819		1,605
Equity funds	—		—		646		541
Debt funds	250		813		2,559		2,560
Total available-for-sale	9,548		9,147		12,659		13,025
Fair value option:
Debt fund	—		—		788		790
Total marketable securities	$	10,063	$	9,658	$	14,055	$	14,457

Contractual maturities of available-for-sale debt securities

At March 29, 2015, 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
$	2,818	$	11,245	$	1,363	$	592	$	4,152	$	20,170

Realized gains and losses on sales of available-for-sale securities

The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions):



	Gross Realized Gains		Gross Realized Losses			Net Realized Gains
For the three months ended
March 29, 2015	$	128	$	(30	)	$	98
March 30, 2014	227		(5		)	222

For the six months ended
March 29, 2015	$	308	$	(37	)	$	271
March 30, 2014	343		(8		)	335

Composition of available-for-sale securities

Available-for-sale securities were comprised as follows (in millions):



	Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 29, 2015
Equity securities	$	1,654	$	383	$	—		$	2,037
Debt securities (including debt funds)	19,940		311		(81		)	20,170
	$	21,594	$	694	$	(81	)	$	22,207
September 28, 2014
Equity securities	$	1,769	$	575	$	(6	)	$	2,338
Debt securities (including debt funds)	19,582		312		(60		)	19,834
	$	21,351	$	887	$	(66	)	$	22,172

Gross unrealized losses and fair values of investments in individual securities classified as available-for-sale in a continuous unrealized loss position deemed to be temporary

The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that are classified as available-for-sale and have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category (in millions):



	March 29, 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	$	395	$	(3	)	$	—	$	—
Corporate bonds and notes	4,211		(58		)	201		(10		)
Mortgage- and asset-backed securities	535		(1		)	26		—
Auction rate securities	—		—			47		(1		)
Common and preferred stock	13		—			12		—
Debt funds	784		(7		)	38		(1		)
	$	5,938	$	(69	)	$	324	$	(12	)



	September 28, 2014
	Less than 12 months					More than 12 months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities and government-related securities	$	279	$	(2	)	$	—	$	—
Corporate bonds and notes	4,924		(31		)	104		(4		)
Mortgage- and asset-backed securities	484		(1		)	52		(1		)
Auction rate securities	—		—			83		(1		)
Common and preferred stock	86		(3		)	52		(3		)
Debt funds	133		(1		)	384		(19		)
	$	5,906	$	(38	)	$	675	$	(28	)

Basis of Presentation Earnings Per Common Share (Details)

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Incremental Dilutive Common Share Equivalents [Abstract]

Dilutive common share equivalents

21,588,000

30,989,000

23,295,000

32,656,000

Common share equivalents excluded from computation of diluted EPS

18,000

12,000

744,000

413,000

Basis of Presentation Share-Based Compensation Expense (Details) (USD $)

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Schedule Of Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Share-based compensation expense before income taxes

$ 249,000,000

$ 251,000,000

$ 522,000,000

$ 532,000,000

Related income tax benefit

(43,000,000)

(53,000,000)

(86,000,000)

(109,000,000)

Share-based compensation expense, net of income taxes

206,000,000

198,000,000

436,000,000

423,000,000

Share-based compensation expense related to share-based awards granted during period

81,000,000

82,000,000

Cost of equipment and services revenues

Schedule Of Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Share-based compensation expense before income taxes

11,000,000

13,000,000

23,000,000

25,000,000

Research and development

Schedule Of Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Share-based compensation expense before income taxes

158,000,000

163,000,000

333,000,000

336,000,000

Selling, general and administrative

Schedule Of Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Share-based compensation expense before income taxes

80,000,000

75,000,000

166,000,000

171,000,000

Restricted Stock [Member]

Schedule Of Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Unrecognized compensation costs related to non-vested restricted stock units

$ 1,300,000,000

Weighted average period over which unrecognized compensation expense related to nonvested restricted stock units is expected to be recognized

1 year 10 months

Equity Compensation Plans Consolidated [Member]

Schedule Of Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Net share based awards granted in fiscal year as percent of total outstanding stock at beginning of fiscal period

0.40%

Total share based awards granted in fiscal year as percent of total outstanding stock at end of fiscal period

0.50%

Composition of Certain Financial Statement Items Accounts Receivable (Details) (USD $)

In Millions, unless otherwise specified

Mar. 29, 2015

Sep. 28, 2014

Accounts Receivable [Abstract]

Allowance for Doubtful Accounts Receivable

$ 5

Trade, net of allowances for doubtful accounts

2,040

2,362

Long-term contracts

11

17

Other

7

33

Accounts receivable, net

$ 2,058

$ 2,412

Composition of Certain Financial Statement Items Inventories (Details) (USD $)

In Millions, unless otherwise specified

Mar. 29, 2015

Sep. 28, 2014

Inventory, Net [Abstract]

Raw materials

$ 1

Work-in-process

903

656

Finished goods

957

801

Inventories

$ 1,861

$ 1,458

Composition of Certain Financial Statement Items Other Current Liabilities (Details) (USD $)

In Millions, unless otherwise specified

Mar. 29, 2015

Sep. 28, 2014

Other Liabilities, Current [Abstract]

Customer incentives and other customer-related liabilities

$ 1,452

$ 1,777

Other

416

466

Other current liabilities

$ 1,868

$ 2,243

Investment Income, Net (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Investment Income, Net [Abstract]

Interest and dividend income

$ 138

$ 167

$ 272

$ 322

Interest expense

(1)

(3)

(2)

(5)

Net realized gains on marketable securities

108

243

264

371

Net realized gains on other investments

3

0

13

17

Impairment losses on marketable securities

(27)

(112)

(89)

(141)

Impairment losses on other investments

(14)

(11)

(17)

(18)

Net gains on derivative instruments

2

0

6

4

Equity in net losses of investees

(9)

(4)

(13)

(5)

Net gains on deconsolidation of subsidiaries

3

2

3

1

Investment income, net

$ 203

$ 282

$ 437

$ 546

Income Taxes (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

Mar. 29, 2015

Dec. 28, 2014

Sep. 28, 2014

Sep. 27, 2015

Scenario, Forecast [Member]

Mar. 29, 2015

United States of America, Dollars

Mar. 29, 2015

United States of America, Dollars

UnallocatedOtherIncome [Member]

Income Tax Disclosure [Abstract]

Effective income tax rate for continuing operations

32.00%

14.00%

21.00%

Tax benefits from foreign income taxed at rates lower than rates in the United States

20.00%

17.00%

Resolution of governmental investigation, Amount

$ 975

Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities

61

Tax Benefit Recognized In Period Related To Prior Period Attributable To Research and Development Tax Credit

$ 101

Stockholders' Equity Changes in Stockholders' Equity (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 29, 2015

Dec. 28, 2014

Mar. 30, 2014

Dec. 29, 2013

Mar. 29, 2015

Mar. 30, 2014

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Balance at beginning of period

$ 39,166

Net income attributable to Qualcomm

1,053

1,959

3,025

3,835

Net loss attributable to noncontrolling interests

(1)

(2)

Net income

1,052

1,958

3,023

3,833

Other comprehensive loss

44

25

(162)

57

Common stock issued under employee benefit plans and related tax benefits

476

Share-based compensation

548

Tax withholding related to vesting of restricted stock units

(193)

Dividends

(702)

(710)

(599)

(1,412)

(1,198)

Stock repurchases

(3,611)

Other

(1)

Balance at end of period

37,834

Qualcomm Stockholders' Equity [Member]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Balance at beginning of period

39,169

Net income attributable to Qualcomm

3,025

Other comprehensive loss attributable to Qualcomm

(162)

Common stock issued under employee benefit plans and related tax benefits

476

Share-based compensation

548

Tax withholding related to vesting of restricted stock units

(193)

Dividends

(1,412)

Stock repurchases

(3,611)

Other

(1)

Balance at end of period

37,839

Noncontrolling Interests [Member]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Balance at beginning of period

(3)

Net loss attributable to noncontrolling interests

(2)

Other comprehensive loss attributable to noncontrolling Interests

0

Common stock issued under employee benefit plans and related tax benefits

0

Share-based compensation

0

Tax withholding related to vesting of restricted stock units

0

Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders

0

Stock repurchases

0

Other

0

Balance at end of period

$ (5)

Stockholders' Equity Accumulated Other Comprehensive Income (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning balance total accumulated other comprehensive income

$ 634

Ending balance total accumulated other comprehensive income

472

Investment income, net

203

282

437

546

Reclassifications from Accumulated Other Comprehensive Income [Member]

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Investment income, net

47

71

118

124

Foreign Currency Translation Adjustment [Member]

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning balance total accumulated other comprehensive income

(113)

Other comprehensive loss before reclassifications

(31)

Reclassifications from accumulated other comprehensive income

0

Other comprehensive loss

(31)

Ending balance total accumulated other comprehensive income

(144)

Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities [Member]

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning balance total accumulated other comprehensive income

24

Other comprehensive loss before reclassifications

(7)

Reclassifications from accumulated other comprehensive income

4

Other comprehensive loss

(3)

Ending balance total accumulated other comprehensive income

21

Net Unrealized Gain (Loss) on Other Available-for-Sale Securities [Member]

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning balance total accumulated other comprehensive income

723

Other comprehensive loss before reclassifications

(6)

Reclassifications from accumulated other comprehensive income

(122)

Other comprehensive loss

(128)

Ending balance total accumulated other comprehensive income

595

Net Unrealized Gain (Loss) on Derivative Instruments [Member] |
Reclassifications from Accumulated Other Comprehensive Income [Member]

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Revenues Costs And Expenses

7

13

Total Accumulated Other Comprehensive Income Attributable to Qualcomm [Member]

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning balance total accumulated other comprehensive income

634

Other comprehensive loss before reclassifications

(44)

Reclassifications from accumulated other comprehensive income

(118)

Other comprehensive loss

(162)

Ending balance total accumulated other comprehensive income

$ 472

Stockholders' Equity (Details) (USD $)

6 Months Ended

1 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 9, 2015

Apr. 22, 2015

Subsequent Event

Mar. 9, 2015

Prior (Replaced) [Member]

Mar. 4, 2014

Prior (Replaced) [Member]

Stock repurchase program [Abstract]

Shares repurchased and retired, shares

50,699,000

27,586,000

5,061,000

Payments for Repurchase of Common Stock, Before Commissions

$ 3,600,000,000

$ 2,000,000,000

$ 345,000,000

Stock Repurchase Program, Remaining Authorized Repurchase Amount

14,500,000,000

2,100,000,000

Authorized amount

$ 15,000,000,000

$ 7,800,000,000

Stockholders' Equity Dividends (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

0 Months Ended

Mar. 29, 2015

Dec. 28, 2014

Mar. 30, 2014

Dec. 29, 2013

Mar. 29, 2015

Mar. 30, 2014

Mar. 9, 2015

Apr. 8, 2015

Subsequent Event

Dividends

Percentage increase common stock dividend per share announced

14.00%

Dividends per share announced

$ 0.42

$ 0.35

$ 0.84

$ 0.70

$ 0.48

Dividends

$ 702

$ 710

$ 599

$ 1,412

$ 1,198

Amount of Increased Common Stock Dividends per Share Announced

$ 0.48

Dividends Payable, Date Declared

Apr. 08, 2015

Dividends Payable, Date to be Paid

Jun. 24, 2015

Dividends Payable, Date of Record

Jun. 03, 2015

Debt (Details) (USD $)

3 Months Ended

Mar. 29, 2015

Sep. 28, 2014

Short-term Debt [Line Items]

Line of Credit Facility, Initiation Date

Feb. 18, 2015

Line of Credit Facility, Maximum Borrowing Capacity

$ 4,000,000,000

Line of Credit Facility, Expiration Date

Feb. 18, 2020

Line of Credit Facility, Interest Rate During Period

at the option of the Company, at either LIBOR (determined in accordance with the Revolving Credit Facility) plus a margin of 0.7% per annum or the Base Rate (determined in accordance with the Revolving Credit Facility), plus an initial margin of 0% per annum.

Line of Credit Facility, Commitment Fee Percentage, per annum

0.05%

Line of Credit Facility, Covenant Terms

maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization to consolidated interest expense, as defined in the Revolving Credit Facility, of not less than three to one at the end of each fiscal quarter

Line of Credit Facility, Covenant Compliance

the Company was in compliance with the financial covenant

Short-term debt

1,096,000,000

0

Commercial Paper [Member]

Short-term Debt [Line Items]

Short-term debt, Maximum Borrowing Capacity

$ 4,000,000,000

Short-term debt, Weighted Average Interest Rate

0.14%

Minimum [Member] |
Commercial Paper [Member]

Short-term Debt [Line Items]

Short-term debt Instrument, Term

1 day

Maximum [Member] |
Commercial Paper [Member]

Short-term Debt [Line Items]

Short-term debt Instrument, Term

397 days

Weighted Average [Member] |
Commercial Paper [Member]

Short-term Debt [Line Items]

Short-term debt Instrument, Remaining Term

58 days

Commitments and Contingencies (Details)

In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

3 Months Ended

Mar. 29, 2015

Sep. 29, 2013

USD ($)

Mar. 29, 2015

China, Yuan Renminbi

CNY

Mar. 29, 2015

United States of America, Dollars

USD ($)

Resolution of governmental investigation [Line Items]

Resolution of governmental investigation, Amount

6,088

$ 975

Legal Proceedings [Abstract]

ParkerVision verdict amount

$ 173

Assessment of SEC and DOJ investigation

As previously disclosed, the Company discovered, and as a part of its cooperation with these investigations informed the SEC and the DOJ of, instances in which special hiring consideration, gifts or other benefits (collectively, benefits) were provided to several individuals associated with Chinese state-owned companies or agencies. Based on the facts currently known, the Company believes the aggregate monetary value of the benefits in question to be less than $250,000, excluding employment compensation.

Commitments and Contingencies Purchase Obligations (Details) (USD $)

Mar. 29, 2015

Unrecorded Unconditional Purchase Obligation [Line Items]

Unrecorded obligations for remainder of fiscal 2015

$ 3,200,000,000

Unrecorded obligations for fiscal 2016

1,200,000,000

Unrecorded obligations for fiscal 2017

941,000,000

Unrecorded obligations for fiscal 2018

797,000,000

Unrecorded obligations for fiscal 2019

733,000,000

Unrecorded obligations thereafter

208,000,000

Inventories [Member]

Unrecorded Unconditional Purchase Obligation [Line Items]

Unrecorded obligations for remainder of fiscal 2015

2,500,000,000

Unrecorded obligations for fiscal 2016

994,000,000

Unrecorded obligations for fiscal 2017

794,000,000

Unrecorded obligations for fiscal 2018

715,000,000

Unrecorded obligations for fiscal 2019

665,000,000

Unrecorded obligations thereafter

$ 185,000,000

Commitments and Contingencies Capital and Operating Leases (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 29, 2015

Capital and operating leases [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 20 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 2015 - Operating leases

$ 45

Fiscal 2016 - Operating leases

80

Fiscal 2017 - Operating leases

61

Fiscal 2018 - Operating leases

33

Fiscal 2019 - Operating leases

21

Thereafter - Operating leases

$ 21

Segment Information (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Sep. 28, 2014

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

Revenues

$ 6,894

$ 6,367

$ 13,993

$ 12,989

Earnings before taxes

1,539

2,272

3,837

4,029

Goodwill impairment charge

16

Assets

47,173

48,574

Long-lived assets impairment charges

444

QCT [Member]

Segment Reporting Information [Line Items]

Revenues

4,434

4,243

9,676

8,859

Earnings before taxes

750

740

1,896

1,646

Assets

3,412

3,639

QTL [Member]

Segment Reporting Information [Line Items]

Revenues

2,414

2,071

4,230

3,971

Earnings before taxes

2,162

1,834

3,741

3,504

Assets

475

161

QSI [Member]

Segment Reporting Information [Line Items]

Revenues

0

Earnings before taxes

(32)

(39)

(33)

(35)

Assets

614

484

Reconciling Items [Member]

Segment Reporting Information [Line Items]

Revenues

46

53

87

159

Earnings before taxes

(1,341)

(263)

(1,767)

(1,086)

Assets

42,672

44,290

Nonreportable Segments [Member]

Segment Reporting Information [Line Items]

Revenues

47

53

90

162

Earnings before taxes

(163)

(200)

(311)

(853)

Unallocated cost of equipment and services revenues [Member]

Segment Reporting Information [Line Items]

Earnings before taxes

(74)

(75)

(152)

(148)

Unallocated acquisition-related expenses

63

62

129

123

Unallocated research and development expenses [Member]

Segment Reporting Information [Line Items]

Earnings before taxes

(226)

(217)

(437)

(434)

Unallocated acquisition-related expenses

3

22

8

23

Unallocated selling, general and administrative expenses [Member]

Segment Reporting Information [Line Items]

Earnings before taxes

(100)

(85)

(249)

(210)

Unallocated acquisition-related expenses

13

6

25

13

Unallocated Other Income [Member]

Segment Reporting Information [Line Items]

Earnings before taxes

(1,010)

0

(1,079)

(12)

Goodwill impairment charge

104

Unallocated Investment Income, Net [Member]

Segment Reporting Information [Line Items]

Earnings before taxes

232

314

462

571

Intersegment Eliminations [Member]

Segment Reporting Information [Line Items]

Revenues

(1)

0

(3)

Earnings before taxes

0

(1)

0

United States of America, Dollars

Segment Reporting Information [Line Items]

Resolution of governmental investigation, Amount

975

United States of America, Dollars |
Unallocated Other Income [Member]

Segment Reporting Information [Line Items]

Resolution of governmental investigation, Amount

$ 975

Acquisitions (Details)

In Billions, except Per Share data, unless otherwise specified

Mar. 29, 2015

GBP (£)

Apr. 21, 2015

Subsequent Event

Apr. 21, 2015

United Kingdom, Pounds

Subsequent Event

GBP (£)

Apr. 21, 2015

United States of America, Dollars

Subsequent Event

USD ($)

Business Acquisition [Line Items]

Business Acquisition, Share Price

£ 9.00

Business Acquisition, Total Price

£ 1.6

$ 2.3

Foreign Currency Exchange Rate, Remeasurement

1.4929

Discontinued Operations (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

12 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Sep. 28, 2014

Discontinued Operations and Disposal Groups [Abstract]

Proceeds from sale of discontinued operations, net of cash sold

$ 0

$ 788

Gain on sale of discontinued operations

0

665

Gain on sale of discontinued operations, net of income tax expense

$ 430

Fair Value Measurements Fair Value Hierarchy (Details) (USD $)

In Millions, unless otherwise specified

Mar. 29, 2015

Assets, Fair Value Disclosure [Abstract]

Assets, Fair Value Disclosure, Recurring

$ 29,647

Liabilities, Fair Value Disclosure [Abstract]

Total liabilities measured at fair value

300

Level 1 [Member]

Assets, Fair Value Disclosure [Abstract]

Assets, Fair Value Disclosure, Recurring

4,346

Liabilities, Fair Value Disclosure [Abstract]

Total liabilities measured at fair value

296

Level 2 [Member]

Assets, Fair Value Disclosure [Abstract]

Assets, Fair Value Disclosure, Recurring

25,073

Liabilities, Fair Value Disclosure [Abstract]

Total liabilities measured at fair value

4

Level 3 [Member]

Assets, Fair Value Disclosure [Abstract]

Assets, Fair Value Disclosure, Recurring

228

Liabilities, Fair Value Disclosure [Abstract]

Total liabilities measured at fair value

0

Fair Value, Measurements, Recurring [Member]

Assets, Fair Value Disclosure [Abstract]

Cash equivalents

5,204

Marketable Securities [Abstract]

U.S. Treasury securities and government-related securities

1,461

Corporate bonds and notes

15,440

Mortgage- and asset-backed securities

1,536

Auction rate securities

47

Common and preferred stock

1,391

Equity funds

646

Debt funds

3,597

Total marketable securities

24,118

Derivative instruments

7

Other investments

318 ¹

Liabilities, Fair Value Disclosure [Abstract]

Derivative instruments

6

Other liabilities

294

Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]

Assets, Fair Value Disclosure [Abstract]

Cash equivalents

2,453

Marketable Securities [Abstract]

U.S. Treasury securities and government-related securities

252

Corporate bonds and notes

0

Mortgage- and asset-backed securities

0

Auction rate securities

0

Common and preferred stock

676

Equity funds

646

Debt funds

0

Total marketable securities

1,574

Derivative instruments

1

Other investments

318 ¹

Liabilities, Fair Value Disclosure [Abstract]

Derivative instruments

2

Other liabilities

294

Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]

Assets, Fair Value Disclosure [Abstract]

Cash equivalents

2,751

Marketable Securities [Abstract]

U.S. Treasury securities and government-related securities

1,209

Corporate bonds and notes

15,440

Mortgage- and asset-backed securities

1,355

Auction rate securities

0

Common and preferred stock

715

Equity funds

0

Debt funds

3,597

Total marketable securities

22,316

Derivative instruments

6

Other investments

0 ¹

Liabilities, Fair Value Disclosure [Abstract]

Derivative instruments

4

Other liabilities

0

Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]

Assets, Fair Value Disclosure [Abstract]

Cash equivalents

0

Marketable Securities [Abstract]

U.S. Treasury securities and government-related securities

0

Corporate bonds and notes

0

Mortgage- and asset-backed securities

181

Auction rate securities

47

Common and preferred stock

0

Equity funds

0

Debt funds

0

Total marketable securities

228

Derivative instruments

0

Other investments

0 ¹

Liabilities, Fair Value Disclosure [Abstract]

Derivative instruments

0

Other liabilities

$ 0

[1] Included amounts that are restricted (Note 12).

Fair Value Measurements Activity Between Levels of the Fair Value Hierarchy, Assets (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Auction Rate Securities [Member]

Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]

Beginning balance of Level 3

$ 83

Total realized and unrealized gains or losses included in investment income, net

0

Total realized and unrealized gains or losses included in other comprehensive income

0

Purchases

0

Sales

0

Settlements

(36)

0

Transfers out of Level 3

0

Ending balance of Level 3

47

83

Mortgage- and asset-backed securities [Member]

Activity for Marketable Securities Classified Within Level 3 of the Valuation Hierarchy [Roll Forward]

Beginning balance of Level 3

186

239

Total realized and unrealized gains or losses included in investment income, net

3

Total realized and unrealized gains or losses included in other comprehensive income

(4)

1

Purchases

50

49

Sales

(41)

(18)

Settlements

(13)

(22)

Transfers out of Level 3

0

(2)

Ending balance of Level 3

$ 181

$ 250

Fair Value Measurements Nonrecurring Fair Value Measurements (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Impaired Long-Lived Assets Held and Used [Line Items]

Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)

$ 27

Long-lived assets impairment charges

444

Goodwill, Impaired [Abstract]

Goodwill impairment charge

16

Unallocated Other Income [Member]

Goodwill, Impaired [Abstract]

Goodwill impairment charge

$ 104

Marketable Securities (Details) (USD $)

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Sep. 28, 2014

Mar. 29, 2015

U.S. Treasury securities and government-related securities [Member]

Sep. 28, 2014

U.S. Treasury securities and government-related securities [Member]

Mar. 29, 2015

Corporate bonds and notes

Sep. 28, 2014

Corporate bonds and notes

Mar. 29, 2015

Mortgage- and asset-backed securities [Member]

Sep. 28, 2014

Mortgage- and asset-backed securities [Member]

Mar. 29, 2015

Auction rate securities

Sep. 28, 2014

Auction rate securities

Mar. 29, 2015

Common and preferred stock

Sep. 28, 2014

Common and preferred stock

Mar. 29, 2015

Equity funds

Sep. 28, 2014

Equity funds

Mar. 29, 2015

Debt funds

Sep. 28, 2014

Debt funds

Apr. 21, 2015

Subsequent Event [Member]

Apr. 21, 2015

Subsequent Event [Member]

United Kingdom, Pounds

Apr. 21, 2015

Subsequent Event [Member]

United States of America, Dollars

Schedule of Marketable Securities [Line Items]

Restricted Marketable Securities

$ 140,000,000

$ 2,900,000,000

$ 717,000,000

Restricted Cash and Cash Equivalents, Current

24,000,000

Threshold To Set Aside Marketable Securities

1,900,000,000

2,800,000,000

Foreign Currency Exchange Rate, Remeasurement

1.4929

Total marketable securities - Current

10,063,000,000

9,658,000,000

Total marketable securities - Noncurrent

14,055,000,000

14,457,000,000

Trading Securities [Abstract]

Trading - Current

515,000,000

511,000,000

338,000,000

320,000,000

177,000,000

191,000,000

0

Trading - Noncurrent

608,000,000

642,000,000

23,000,000

38,000,000

345,000,000

367,000,000

240,000,000

237,000,000

Available-for-sale Securities [Abstract]

Available-for-sale - Current

9,548,000,000

9,147,000,000

385,000,000

805,000,000

7,250,000,000

6,274,000,000

1,091,000,000

1,063,000,000

0

572,000,000

192,000,000

0

250,000,000

813,000,000

Available-for-sale - Noncurrent

12,659,000,000

13,025,000,000

715,000,000

392,000,000

7,668,000,000

7,649,000,000

205,000,000

195,000,000

47,000,000

83,000,000

819,000,000

1,605,000,000

646,000,000

541,000,000

2,559,000,000

2,560,000,000

Fair Value Option [Abstract]

Fair value option - Current

0

Fair value option - Noncurrent

788,000,000

790,000,000

Effective ownership interest in debt fund (fair value option)

27.00%

(Decrease) increase in fair value recognized in investment income

12,000,000

18,000,000

Net gains recognized on debt securities classified as trading held at the end of the period

$ 14,000,000

Marketable Securities Available-for-sale Securities (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 29, 2015

Mar. 30, 2014

Mar. 29, 2015

Mar. 30, 2014

Sep. 28, 2014

Schedule of Available-for-sale Securities [Line Items]

Available-for-sale Equity Securities, Amortized Cost Basis

$ 1,654

$ 1,769

Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax

383

575

Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax

0

(6)

Available-for-sale Securities Equity Securities, Fair Value

2,037

2,338

Available-for-sale Debt Securities (including debt funds), Amortized Cost Basis

19,940

19,582

Available-for-sale Debt Securities (including debt funds), Accumulated Gross Unrealized Gain, before Tax

311

312

Available-for-sale Debt Securities (including debt funds), Accumulated Gross Unrealized Loss, before Tax

(81)

(60)

Available-for-sale Debt Securities, Fair Value

20,170

19,834

Contractual maturities of available-for-sale debt securities [Abstract]

Years to Maturity - Less Than One Year

2,818

Years to Maturity - One to Five Years

11,245

Years to Maturity - Five to Ten Years

1,363

Years to Maturity - Greater Than Ten Years

592

Years to Maturity - No Single Maturity Date

4,152

Realized Gains and Losses on Sales of Available-for-sale Securities [Abstract]

Gross Realized Gains

128

227

308

343

Gross Realized Losses

(30)

(5)

(37)

(8)

Net Realized Gains

98

222

271

335

Available-for-sale Securities [Abstract]

Cost

21,594

21,351

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

694

887

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(81)

(66)

Fair Value

22,207

22,172

Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]

Less than 12 months - Fair Value

5,938

5,906

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(69)

(38)

More than 12 months - Fair Value

324

675

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

(12)

(28)

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

395

279

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(3)

(2)

More than 12 months - Fair Value

0

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

0

Corporate bonds and notes

Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]

Less than 12 months - Fair Value

4,211

4,924

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(58)

(31)

More than 12 months - Fair Value

201

104

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

(10)

(4)

Mortgage- and asset-backed 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

535

484

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(1)

More than 12 months - Fair Value

26

52

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

0

(1)

Auction rate securities

Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]

Less than 12 months - Fair Value

0

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

0

More than 12 months - Fair Value

47

83

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

(1)

Common and preferred stock

Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]

Less than 12 months - Fair Value

13

86

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

0

(3)

More than 12 months - Fair Value

12

52

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

0

(3)

Debt funds

Investments Classified as Available-for-sale in a Continuous Unrealized Loss Position Deemed to be Temporary [Abstract]

Less than 12 months - Fair Value

784

133

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(7)

(1)

More than 12 months - Fair Value

38

384

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

$ (1)

$ (19)