20 unchanged sentences
Other Information
+Added: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
+Added: Not applicable.
Directors, Executive Officers and Corporate Governance
The information required by this item regarding directors is incorporated by reference to our 2023 Proxy Statement to be filed with the SEC in connection with our 2023 Annual Meeting of Stockholders (2023 Proxy Statement) in “Proposal 1:
−Removed: Election of Directors” under the subheading “Nominees for Election.” Certain information required by this item regarding executive officers is set forth in Item 1 of Part I of this Report under the heading “Information about our Executive Officers.” The information required by this item regarding corporate governance is incorporated by reference to our 2022 Proxy Statement in the section titled “Corporate Governance” under the headings “Code of Ethics and Corporate Governance Principles and Practices” and “Board Meetings, Committees and Attendance” and in the section titled “Stock Ownership of Certain Beneficial Owners and Management” under the heading “Delinquent Section 16(a) Reports.”
+Added: Election of Directors” under the heading “Nominees for Election.” Certain information required by this item regarding executive officers is set forth in Item 1 of Part I of this Annual Report under the heading “Information about our Executive Officers.” The information required by this item regarding corporate governance is incorporated by reference to our 2023 Proxy Statement in the section titled “Corporate Governance” under the headings “Code of Ethics and Corporate Governance Principles and Practices” and “Board Meetings, Committees and Attendance.”
Executive Compensation
−Removed: The information required by this item is incorporated by reference to our 2022 Proxy Statement in the sections titled “Executive Compensation and Related Information,” “Compensation Discussion and Analysis,” “HR and Compensation Committee Report,” “Compensation Tables and Narrative Disclosures” and “Director Compensation,” and in the section titled “Stock Ownership of Certain Beneficial Owners and Management” under the subheading “Compensation Committee Interlocks and Insider Participation.”
+Added: The information required by this item is incorporated by reference to our 2023 Proxy Statement in the section titled “Executive Compensation and Related Information” under the headings “Compensation Discussion and Analysis,” “HR and Compensation Committee Report” and “Compensation Tables and Narrative Disclosures,” in the section titled “Director Compensation” and in the section titled “Stock Ownership of Certain Beneficial Owners and Management” under the heading “Compensation Committee Interlocks and Insider Participation.”
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
−Removed: The information required by this item is incorporated by reference to our 2022 Proxy Statement in the section titled “Stock Ownership of Certain Beneficial Owners and Management” including under the subheading “Equity Compensation Plan Information.”
+Added: The information required by this item is incorporated by reference to our 2023 Proxy Statement in the section titled “Stock Ownership of Certain Beneficial Owners and Management” and in “Proposal 3” under the heading “Equity Compensation Plan Information.”
Certain Relationships and Related Transactions, and Director Independence
−Removed: The information required by this item is incorporated by reference to our 2022 Proxy Statement in the section titled “Certain Relationships and Related-Person Transactions,” and in the section titled “Corporate Governance” under the subheadings “Director Independence” and “Board Meetings, Committees and Attendance.”
+Added: The information required by this item is incorporated by reference to our 2023 Proxy Statement in the section titled “Certain Relationships and Related-Person Transactions” and in the section titled “Corporate Governance” under the headings “Director Independence” and “Board Meetings, Committees and Attendance.”
Principal Accounting Fees and Services
4 unchanged sentences
(a) Financial Statements:
−Removed: (1) Report of Independent Registered Public Accounting Firm F-1
+Added: (1) Report of Independent Registered Public Accounting Firm (PCAOB ID:
Consolidated Balance Sheets at September 25, 2022 and September 26, 2021
16 unchanged sentences
4.1 Indenture, dated May 20, 2015, between the Company and U.S.
+Added: Bank Trust Company, National Association (as successor in interest to U.S.
Bank, National Association), as trustee.
8 unchanged sentences
8-K 5/21/2015 4.10
−Removed: 4.6 Form of 4.800% Notes due 2045.
−Removed: 8-K 5/21/2015 4.10
4.6 Officers’ Certificate, dated May 26, 2017, for the Floating Rate Notes due 2019, the Floating Rate Notes due 2020, the Floating Rate Notes due 2023, the 1.850% Notes due 2019, the 2.100% Notes due 2020, the 2.600% Notes due 2023, the 2.900% Notes due 2024, the 3.250% Notes due 2027 and the 4.300% Notes due 2047.
22 unchanged sentences
8-K 8/18/2020 4.5
−Removed: 4.19 Registration Rights Agreement, dated as of August 14, 2020.
−Removed: 8-K 8/18/2020 4.7
4.18 Officers’ Certificate, dated January 6, 2021, for the 1.300% Notes due 2028 and the 1.650% Notes due 2032.
10-Q 2/3/2021 4.23
−Removed: Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith
4.19 Form of 1.300% Notes due 2028.
10-Q 2/3/2021 4.24
+Added: Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith
4.20 Form of 1.650% Notes due 2032.
10-Q 2/3/2021 4.25
−Removed: 4.23 Description of regi strant’s securities.
+Added: 4.21 Officers’ Certificate, dated May 9, 2022, for the 4.250% Notes due 2032 and the 4.500% Notes due 2052.
8-K 5/9/2022 4.2
−Removed: 10.1 Form of Indemnity Agreement between the Company and its directors and officers.
+Added: 4.22 Form of 4.250% Notes due 2032.
8-K 5/9/2022 4.3
−Removed: 10.2 Amended and Restated 2016 Long-Term Incentive Plan.
−Removed: 10-Q 4/29/2020 10.7
−Removed: 10.3 Form of Non-Employee Director Deferred Stock Unit Grant Notices and Non-Employee Director Deferred Stock Unit Agreements under the 2016 Long-Term Incentive Plan for non-employee directors residing in the United States ( 2016 Form ) .
−Removed: 10-Q 4/20/2016 10.32
−Removed: 10.4 Forms of Non-Employee Director Deferred Stock Unit Grant Notices and Non-Employee Director Deferred Stock Unit Agreements under the 2016 Long-Term Incentive Plan for Non-Employee Directors in Hong Kong.
+Added: 4.23 Form of 4.500% Notes due 2052.
+Added: 8-K 5/9/2022 4.4
+Added: 4.24 Description of registrant’s securities.
+Added: 10-K 11/6/2019 4.15
+Added: 10.1 Credit Agreement , dated as of December 8, 2020, among QUALCOMM Incorporated, the lenders party thereto, the letter of credit issuers party thereto and Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer .
+Added: 8-K 12/10/2020 10.1
+Added: 10.2 LIBOR Transition Amendment to Credit Agreement, dated as of December 21, 2021, by and between QUALCOMM Incorporated and Bank of America, N.A., as administrative agent.
10-Q 2/2/2022 10.25
−Removed: 10.5 Credit Agreement among QUALCOMM Incorporated, the lenders party thereto, the letter of credit issuers party thereto and Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer, dated as of December 8, 2020.
+Added: 10.3 Investment and Separation Matters Agreement, dated as of October 4, 2021, by and among QUALCOMM Incorporated, SSW HoldCo LP and SSW Merger Sub Corp.
8-K 10/4/2021 10.1
−Removed: 10.6 Qualcomm Incorporated Non-Executive Officer Change in Control Severance Plan (as amended and restated).
−Removed: 7/28/2021 10.7
−Removed: 10.7 Forms of Non-Employee Director Deferred Stock Unit Grant Notices and Non-Employee Director Deferred Stock Unit Agreements under the 2016 Long-Term Incentive Plan for Non-Employee Directors in Singapore.
+Added: 10.4 Letter Agreement, dated as of January 24, 2022, by and among QUALCOMM Incorporated, SSW HoldCo LP and SSW Merger Sub Corp and SSW Investors LP.
10-Q 4/27/2022 10.27
−Removed: 10.8 Form of 2016 Long-Term Incentive Plan Non-Employee Director Deferred Stock Unit Grant Notice and Non-Employee Director Deferred Stock Unit Agreement ( 2018 Form ) .
+Added: 10.5 Form of Indemnity Agreement between the Company and its directors and officers.
+Added: 10-K 11/4/2015 10.1
+Added: 10.6 Amended and Restated 2016 Long-Term Incentive Plan.
10-Q 4/29/2020 10.7
1 unchanged sentence
10-Q 4/25/2018 10.62
−Removed: 10.10 Qualcomm Incorporated Executive Officer Change in Control Severance Plan (as amended and restated).
−Removed: 10-Q 7/28/2021 10.11
−Removed: 10.11 Qualcomm Incorporated Executive Officer Severance Plan (as amended and restated).
−Removed: 10-Q 7/28/2021 10.12
−Removed: 10.12 Qualcomm Incorporated 2016 Long-Term Incentive Plan CEO Performance Stock Option Grant Notice and CEO Performance Stock Option Agreement.
+Added: 10.8 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award RTSR Shares Grant Notice and ROIC Shares Grant Notice, and Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award Agreement (September 30, 2019 - September 25, 2022 Performance Period).
10-K 11/6/2019 10.29
1 unchanged sentence
10-K 11/4/2020 10.21
−Removed: 10.14 QUALCOMM Incorporated Non-Qualified Deferred Compensation Plan, as amended and restated effective J an uary 1, 2021 .
+Added: 10.10 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Restricted Stock Unit Grant Notice and Executive Restricted Stock Unit Agreement (2020 Form).
10-Q 2/3/2021 10.20
−Removed: 10.15 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award RTSR Shares Grant Notice and ROIC Shares Grant Notice, and Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award Agreement (September 30, 2019 - September 25, 2022 Performance Period).
+Added: 10.11 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award Grant Notices and Executive Performance Stock Unit Award Agreement (2021 Form).
10-K 11/3/2021 10.22
−Removed: 10.16 Qualcomm Incorporated 202 1 Director Compensation Plan.
+Added: 10.12 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Restricted Stock Unit Award Grant Notice and Executive Restricted Stock Unit Award Agreement (2021 Form).
10-K 11/3/2021 10.23
1 unchanged sentence
10-Q 2/2/2022 10.26
−Removed: Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith
−Removed: 10.18 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Restricted Stock Unit Grant Notice and Executive Restricted Stock Unit Agreement (2020 Form).
+Added: 10.14 Qualcomm Incorporated Executive Officer Change in Control Severance Plan (as amended and restated).
10-Q 7/28/2021 10.11
−Removed: 10.19 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award Grant Notice and Executive Performance Stock Unit Award Agreement (2020 Form).
−Removed: 10-K 11/4/2020 10.21
−Removed: 10.20 Special Advisor Employment Agreement between the Company and Steven M.
−Removed: Mollenkopf dated as of January 4, 2021.
+Added: 10.15 Qualcomm Incorporated Executive Officer Severance Plan (as amended and restated).
10-Q 7/28/2021 10.12
−Removed: 10.21 Investment and Separation Matters Agreement, dated as of October 4, 2021, by and among QUALCOMM Incorporated, SSW HoldCo LP and SSW Merger Sub Corp (1)
+Added: Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith
+Added: 10.16 Qualcomm Incorporated Non-Executive Officer Change in Control Severance Plan (as amended and restated).
+Added: 7/28/2021 10.7
+Added: 10.17 QUALCOMM Incorporated Non-Qualified Deferred Compensation Plan, as amended and restated effective January 1, 2021.
+Added: 10-Q 2/3/2021 10.16
+Added: 10.18 Qualcomm Incorporated 2022 Director Compensation Plan.
10-K 11/3/2021 10.24
−Removed: 10.22 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award Grant Notices and Executive Performance Stock Unit Award Agreement (2021 Form).
−Removed: 10.23 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Restricted Stock Unit Award Grant Notice and Executive Restricted Stock Unit Award Agreement (2021 Form).
10.19 Qualcomm Incorporated 2023 Director Compensation Plan.
+Added: 10.20 Form of Non-Employee Director Deferred Stock Unit Grant Notices and Non-Employee Director Deferred Stock Unit Agreements under the 2016 Long-Term Incentive Plan for non-employee directors residing in the United States (2016 Form).
+Added: 10-Q 4/20/2016 10.32
+Added: 10.21 Forms of Non-Employee Director Deferred Stock Unit Grant Notices and Non-Employee Director Deferred Stock Unit Agreements under the 2016 Long-Term Incentive Plan for Non-Employee Directors in Hong Kong.
+Added: 10-Q 4/28/21 10.4
+Added: 10.22 Form of 2016 Long-Term Incentive Plan Non-Employee Director Deferred Stock Unit Grant Notice and Non-Employee Director Deferred Stock Unit Agreement (2018 Form).
+Added: 10-Q 4/25/2018 10.60
21 Subsidiaries of the Company.
38 unchanged sentences
Livermore Director November 2, 2022
−Removed: /s/ Harish Manwani Director November 3, 2021
−Removed: Harish Manwani
McLaughlin Chair of the Board November 2, 2022
Miller Director November 2, 2022
−Removed: Director November 3, 2021
Rosenfeld Director November 2, 2022
12 unchanged sentences
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 25, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
−Removed: Changes in Accounting Principles
−Removed: As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for leases in fiscal 2020 and the manner in which it accounts for revenues from contracts with customers and income tax effects of intra-entity transfers of assets other than inventory in fiscal 2019.
Basis for Opinions
20 unchanged sentences
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.
−Removed: The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
+Added: The communication of critical audit matters does not alter in any way our opinion on the consolidated
+Added: financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Revenue Recognition – Qualcomm CDMA Technologies (QCT) Customer Incentive Arrangements
5 unchanged sentences
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.
−Removed: These procedures included testing the effectiveness of controls relating to management’s review of and accounting for customer incentive arrangements as well as controls relating to management’s review over the completeness and accuracy of reductions to revenues in fiscal 2021 and accruals for customer incentive arrangements as of the balance sheet date.
−Removed: These procedures also included, among others, testing the completeness and accuracy of customer incentive arrangement reductions to revenues and customer incentive arrangement accruals recorded in the consolidated financial statements, and recalculating, on a test basis, reductions to revenues and accruals for customer incentive arrangements based upon customer-specific contractual terms.
+Added: These procedures included testing the effectiveness of controls relating to management’s review of and accounting for QCT customer incentive arrangements as well as controls relating to management’s review over the completeness and accuracy of reductions to revenues in fiscal 2022 and accruals for customer incentive arrangements as of the balance sheet date.
+Added: These procedures also included, among others, testing the completeness and accuracy of reductions to revenues and accruals for QCT customer incentive arrangements recorded in the consolidated financial statements, and recalculating, on a test basis, reductions to revenues and accruals for QCT customer incentive arrangements based upon customer-specific contractual terms.
/s/ PricewaterhouseCoopers LLP
12 unchanged sentences
Inventories 6,341 3,228
+Added: Held for sale assets 733 —
Other current assets 1,625 854
4 unchanged sentences
Other intangible assets, net 1,882 1,458
+Added: Held for sale assets 1,200 —
Other assets 7,729 6,311
6 unchanged sentences
Short-term debt 1,945 2,044
+Added: Held for sale liabilities 581 —
Other current liabilities 3,689 5,014
3 unchanged sentences
Long-term debt 13,537 13,701
+Added: Held for sale liabilities 119 —
Other liabilities 3,863 3,561
9 unchanged sentences
Retained earnings 17,840 9,822
−Removed: Accumulated other comprehensive income 128 207
+Added: Accumulated other comprehensive (loss) income ( 22 ) 128
Total stockholders’ equity 18,013 9,950
14 unchanged sentences
Selling, general and administrative 2,570 2,339 2,074
−Removed: Other — ( 28 ) 414
+Added: Other (Note 2) ( 1,059 ) — ( 28 )
Total costs and expenses 28,340 23,777 17,276
1 unchanged sentence
Interest expense ( 490 ) ( 559 ) ( 602 )
−Removed: Investment and other income, net 1,044 66 441
−Removed: Income before income taxes 10,274 5,719 7,481
+Added: Investment and other (expense) income, net ( 372 ) 1,044 66
+Added: Income from continuing operations before income taxes 14,998 10,274 5,719
Income tax expense ( 2,012 ) ( 1,231 ) ( 521 )
+Added: Income from continuing operations 12,986 9,043 5,198
+Added: Discontinued operations, net of income taxes (Note 9) ( 50 ) — —
Net income $ 12,936 $ 9,043 $ 5,198
−Removed: Basic earnings per share $ 7.99 $ 4.58 $ 3.63
−Removed: Diluted earnings per share $ 7.87 $ 4.52 $ 3.59
+Added: Basic earnings (loss) per share:
+Added: Continuing operations $ 11.56 $ 7.99 $ 4.58
+Added: Discontinued operations ( 0.04 ) — —
+Added: Net income $ 11.52 $ 7.99 $ 4.58
+Added: Diluted earnings (loss) per share:
+Added: Continuing operations $ 11.41 $ 7.87 $ 4.52
+Added: Discontinued operations ( 0.04 ) — —
+Added: Net income $ 11.37 $ 7.87 $ 4.52
Shares used in per share calculations:
10 unchanged sentences
Other comprehensive (loss) income, net of income taxes:
−Removed: Foreign currency translation gains (losses) 40 60 ( 110 )
+Added: Foreign currency translation (losses) gains ( 433 ) 40 60
Net unrealized (losses) gains on certain available-for-sale securities ( 113 ) ( 5 ) 22
−Removed: Net unrealized (losses) gains on derivative instruments ( 53 ) 29 26
−Removed: Other (losses) gains ( 2 ) 7 ( 19 )
+Added: Net unrealized gains (losses) on derivative instruments 361 ( 53 ) 29
+Added: Other gains (losses) 35 ( 2 ) 7
Other reclassifications included in net income — ( 59 ) ( 11 )
9 unchanged sentences
Operating Activities:
−Removed: Net income $ 9,043 $ 5,198 $ 4,386
+Added: Net income from continuing operations $ 12,986 $ 9,043 $ 5,198
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense 1,762 1,582 1,393
−Removed: Income tax provision (less than) in excess of income tax payments ( 245 ) ( 309 ) 1,976
+Added: Income tax provision less than income tax payments ( 138 ) ( 245 ) ( 309 )
Share-based compensation expense 2,031 1,663 1,212
−Removed: Net gains on marketable securities and other investments ( 1,002 ) ( 336 ) ( 356 )
−Removed: Indefinite and long-lived asset impairment charges 5 — 203
+Added: Net losses (gains) on marketable securities and other investments 432 ( 1,002 ) ( 336 )
Impairment losses on marketable securities and other investments 47 33 405
7 unchanged sentences
Unearned revenues ( 324 ) ( 202 ) ( 246 )
+Added: Net cash used by operating activities from discontinued operations ( 170 ) — —
Net cash provided by operating activities 9,096 10,536 5,814
10 unchanged sentences
Repayment of short-term debt ( 7,003 ) ( 2,885 ) ( 2,846 )
+Added: Repayment of debt of acquired company ( 349 ) — —
Proceeds from long-term debt 1,477 — 1,988
4 unchanged sentences
Payments of tax withholdings related to vesting of share-based awards ( 766 ) ( 737 ) ( 347 )
−Removed: Payment of purchase consideration related to RF360 Holdings ( 16 ) ( 55 ) ( 1,163 )
Other items, net ( 30 ) ( 35 ) ( 128 )
1 unchanged sentence
Effect of exchange rate changes on cash and cash equivalents ( 113 ) 27 24
−Removed: Net increase (decrease) in total cash and cash equivalents 409 ( 5,132 ) 62
+Added: Net (decrease) increase in total cash and cash equivalents ( 4,017 ) 409 ( 5,132 )
Total cash and cash equivalents at beginning of period 7,116 6,707 11,839
−Removed: Total cash and cash equivalents at end of period $ 7,116 $ 6,707 $ 11,839
+Added: Total cash and cash equivalents at end of period (including $ 326 million classified as held for sale at September 25, 2022)
+Added: $ 3,099 $ 7,116 $ 6,707
See accompanying notes.
21 unchanged sentences
9,822 5,284 4,466
−Removed: Cumulative effect of accounting changes — — 3,455
Net income 12,936 9,043 5,198
4 unchanged sentences
17,840 9,822 5,284
−Removed: Accumulated other comprehensive income:
+Added: Accumulated other comprehensive (loss) income:
Balance at beginning of period
−Removed: Cumulative effect of accounting changes — — ( 51 )
Other comprehensive (loss) income ( 150 ) ( 79 ) 107
Balance at end of period
+Added: ( 22 ) 128 207
Total stockholders’ equity, ending balance
7 unchanged sentences
We are a global leader in the development and commercialization of foundational technologies for the wireless industry.
−Removed: Our technologies and products are used in mobile devices and other wireless products, including those used in the internet of things (IoT) and automotive systems for telematics, connectivity and digital cockpit (also known as infotainment).
+Added: Our technologies and products are used in mobile devices and other wireless products, including those used in the internet of things (IoT) and automotive systems for connectivity, digital cockpit and advanced driver assistance and automated driving (ADAS/AD).
We derive revenues principally from sales of integrated circuit products and through the licensing of our intellectual property, including patents and other rights.
Principles of Consolidation.
−Removed: The consolidated financial statements include the assets, liabilities and operating results of Qualcomm and its subsidiaries.
+Added: The consolidated financial statements include the assets, liabilities and operating results of Qualcomm, its subsidiaries and any variable interest entities for which we are deemed to be the primary beneficiary (Note 9).
Intercompany transactions and balances have been eliminated.
5 unchanged sentences
the valuation of inventories;
−Removed: the impairment of goodwill and long-lived assets;
+Added: the impairment of goodwill, other indefinite-lived assets and long-lived assets;
the recognition, measurement and disclosure of loss contingencies related to legal and regulatory proceedings;
3 unchanged sentences
We operate and report using a 52-53 week fiscal year ending on the last Sunday in September.
−Removed: The fiscal years ended September 26, 2021, September 27, 2020 and September 29, 2019 each included 52 weeks.
−Removed: Recently Adopted Accounting Pronouncements.
−Removed: Financial Assets:
−Removed: In June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance that changed the accounting for recognizing impairments of financial assets (ASC 326).
−Removed: Under the new accounting guidance, credit losses for financial assets held at amortized cost (such as accounts receivable) are estimated based on expected losses rather than the previous incurred loss impairment model.
−Removed: The new accounting guidance also eliminated the concept of other-than-temporary impairment with credit losses related to available-for-sale debt securities recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities.
−Removed: We adopted the new accounting guidance in the first quarter of fiscal 2021 under the modified retrospective transition method, except for certain available-for-sale debt securities where the prospective transition method was required, and as a result, prior period results have not been restated.
−Removed: The impact upon adoption was not material to our consolidated financial statements.
−Removed: The future impact of such accounting guidance will largely depend on the future composition and credit quality of our investment portfolio and accounts receivable, as well as future economic conditions.
−Removed: In February 2016, the FASB issued new accounting guidance related to leases that outlines a new comprehensive lease accounting model and requires expanded disclosures (ASC 842).
−Removed: Under the new accounting guidance, we are required to recognize right-of-use assets and corresponding lease liabilities on the consolidated balance sheet.
−Removed: We adopted ASC 842 in the first quarter of fiscal 2020 using the modified retrospective approach, with the cumulative effect of initial adoption recorded as an adjustment to our opening consolidated balance sheet at September 30, 2019.
−Removed: We elected to not record leases with a term of 12 months or less on our consolidated balance sheet.
−Removed: In addition, we applied the package of practical expedients permitted under the transition guidance, which among other things, does not require reassessment of lease classification upon adoption.
−Removed: Finance leases were not material for all periods presented.
−Removed: Adoption of the new accounting guidance did not have a material impact on our consolidated statements of operations or cash flows.
−Removed: Results for fiscal 2019 have not been restated and continue to be reported in accordance with the accounting guidance in effect for those periods.
−Removed: Revenue Recognition:
−Removed: In May 2014, the FASB issued new accounting guidance related to revenue recognition (ASC 606).
−Removed: We adopted ASC 606 in the first quarter of fiscal 2019 using the modified retrospective transition method only to those contracts that were not completed as of October 1, 2018.
−Removed: We recognized the cumulative effect of initially applying the new revenue accounting guidance as an adjustment to opening retained earnings.
−Removed: Income Taxes:
−Removed: In October 2016, the FASB issued new accounting guidance that changes the accounting for the income tax effects of intra-entity transfers of assets other than inventory.
−Removed: We adopted the new accounting guidance in the first quarter of fiscal 2019 using the modified retrospective transition method, with the cumulative effect of applying the new accounting guidance recognized as an adjustment to opening retained earnings of $ 2.6 billion, primarily as the result of establishing a deferred tax asset on the basis difference of certain intellectual property distributed from one of our foreign subsidiaries to a subsidiary in the United States in fiscal 2018.
+Added: The fiscal years presented each included 52 weeks.
Cash Equivalents.
2 unchanged sentences
The carrying amounts approximate fair value due to the short maturities of these instruments.
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Marketable Securities.
−Removed: As a result of the adoption of ASC 326, we revised our accounting policy beginning in fiscal 2021 as follows.
Marketable securities include marketable equity securities, available-for-sale debt securities and, from time-to-time, certain time deposits.
We classify marketable securities as current or noncurrent based on the nature of the securities and their availability for use in current operations.
−Removed: Marketable securities are stated at fair value with all realized and unrealized gains and losses on investments in marketable equity securities and realized gains and losses on available-for-sale debt securities recognized in investment and other income, net.
+Added: Marketable securities are stated at fair value with all realized and unrealized gains and losses on investments in marketable equity securities and realized gains and losses on available-for-sale debt securities recognized in investment and other income (expense), net.
Debt securities are classified as available for sale or held to maturity at the time of purchase and reevaluated at each balance sheet date.
The realized and unrealized gains and losses on marketable securities are determined using the specific identification method.
−Removed: If a debt security has an unrealized loss and we either intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, we record an impairment charge to investment and other income, net for the entire amount of the unrealized loss and adjust the amortized cost basis of the security.
+Added: If a debt security has an unrealized loss and we either intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, we record an impairment charge to investment and other income (expense), net for the entire amount of the unrealized loss and adjust the amortized cost basis of the security.
For the remaining debt securities, if an unrealized loss exists, we separate the impairment into the portion of the loss related to credit factors and the portion of the loss that is not related to credit factors.
−Removed: Unrealized gains or unrealized losses that are not related to credit factors on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income, net of income taxes.
−Removed: Unrealized losses that are related to credit loss factors on available-for-sale debt securities and subsequent adjustments to the credit loss are recorded as an allowance for credit losses, which is included in investment and other income, net.
+Added: Unrealized gains or unrealized losses that are not related to credit factors on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (loss), net of income taxes.
+Added: Unrealized losses that are related to credit loss factors on available-for-sale debt securities and subsequent adjustments to the credit loss are recorded as an allowance for credit losses, which is included in investment and other income (expense), net.
In evaluating whether a credit loss exists, we consider a variety of factors, including the significance of the decline in value as compared to the cost basis;
7 unchanged sentences
Equity investments for which we have significant influence, but not control, over the investee and are not the primary beneficiary of the investee’s activities are accounted for under the equity method.
−Removed: Our share of gains and losses in equity method investments are recorded in investment and other income, net.
−Removed: We eliminate unrealized profit or loss related to transactions with equity method investees in relation to our ownership interest in the investee, which is recorded as a component of equity in net earnings (losses) in investees in investment and other income, net.
+Added: Our share of gains and losses in equity method investments are recorded in investment and other income (expense), net.
+Added: We eliminate unrealized profit or loss related to transactions with equity method investees in relation to our ownership interest in the investee, which is recorded as a component of equity in net earnings (losses) in investees in investment and other income (expense), net.
Non-marketable equity investments (for which we do not have significant influence or control) are investments without readily determinable fair values that are recorded based on initial cost minus impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar securities, if any.
−Removed: All gains and losses on investments in non-marketable equity securities, realized and unrealized, are recognized in investment and other income, net.
−Removed: We monitor equity method and non-marketable equity investments for events or circumstances that could indicate the investments are impaired, such as a deterioration in the investee’s financial condition and business forecasts and lower valuations in recently completed or anticipated financings, and recognize a charge to investment and other income, net for the difference between the estimated fair value and the carrying value.
−Removed: For equity method investments, we record impairment losses in earnings only when impairments are considered other-than-temporary.
−Removed: Our primary objectives for holding derivative instruments are to manage foreign exchange risk for certain foreign currency revenues, operating expenses, receivables and payables and to manage interest rate risk on our long-term debt.
−Removed: Derivative instruments are recorded at fair value and included in other current or noncurrent assets or other current or noncurrent liabilities based on their maturity dates.
+Added: All gains and losses on investments in non-marketable equity securities, realized and unrealized, are recognized in investment and other income (expense), net.
+Added: We monitor equity method and non-marketable equity investments for events or circumstances that could indicate the investments are impaired, such as a deterioration in the investee’s financial condition and business forecasts and lower valuations in recently completed or anticipated financings, and recognize a charge to investment and other income (expense), net for the difference between the estimated fair value and the carrying value.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: equity method investments, we record impairment losses in earnings only when impairments are considered other-than-temporary.
+Added: Our primary objectives for holding derivative instruments are to manage foreign exchange risk for certain foreign currency revenues, operating expenses, receivables and payables and to manage interest rate risk associated with our cash equivalents, marketable securities and long-term debt.
+Added: Derivative instruments are recorded at fair value and included in other current or noncurrent assets or liabilities based on their maturity dates.
Counterparties to these derivative instruments are all major banking institutions.
+Added: At September 25, 2022, the aggregate fair value of our derivative instruments recorded in total assets and in total liabilities were $ 271 million and $ 346 million, respectively.
+Added: At September 26, 2021, the aggregate fair value of our derivative instruments recorded in total assets and in total liabilities were $ 42 million and $ 111 million, respectively.
Foreign Currency Hedges:
We manage our exposure to foreign exchange market risks, when deemed appropriate, through the use of derivative instruments, including foreign currency forward and option contracts with financial counterparties, that may or may not be designated as hedging instruments.
−Removed: At September 26, 2021, these derivative instruments have maturity dates between one and 21 months.
−Removed: Gains and losses arising from such contracts that are designated as cash flow hedging instruments are recorded as a component of accumulated other comprehensive income as gains and losses on derivative instruments, net of income taxes.
−Removed: The hedging gains and losses in accumulated other comprehensive income are subsequently reclassified to revenues or costs and expenses, as applicable, in the consolidated statements of operations in the same period in which the underlying transactions affect our earnings.
+Added: At September 25, 2022 and September 26, 2021, these derivative instruments had maturity dates between one and 21 months.
+Added: Gains and losses arising from such contracts that are designated as cash flow hedging instruments are recorded as a component of accumulated other comprehensive income (loss) as gains and losses on derivative instruments, net of income taxes.
+Added: The hedging gains and losses in accumulated other comprehensive income (loss) are subsequently reclassified to revenues or costs and expenses, as applicable, in the consolidated statements of operations in the same period in which the underlying transactions affect our earnings.
The cash flows associated with derivative instruments designated as cash flow hedging instruments are classified as cash flows from operating activities in the consolidated statements of cash flows, which is the same category as the hedged transaction.
−Removed: The fair values of our foreign currency forward and option contracts used to hedge foreign currency risk designated as cash flow hedges recorded in total assets and in total liabilities were $ 42 million and negligible, respectively, at September 26, 2021.
−Removed: The fair values of our foreign currency forward and option contracts used to hedge foreign currency risk designated as cash flow hedges recorded in total assets and in total liabilities were $ 51 million and negligible, respectively, at September 27, 2020.
−Removed: For foreign currency forward and option contracts not designated as hedging instruments, the changes in fair value are recorded in investment and other income, net in the period of change.
+Added: For foreign currency forward contracts not designated as hedging instruments, the changes in fair value are recorded in investment and other income (expense) , net in the period of change.
The cash flows associated with such derivative instruments not designated as hedging instruments are classified as cash flows from operating activities in the consolidated statements of cash flows, which is the same category as the hedged transaction.
−Removed: The fair values of our foreign currency
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: forward and option contracts not designated as hedging instruments were negligible at September 26, 2021 and September 27, 2020.
Interest Rate Swaps:
−Removed: From time to time, we manage our exposure to certain interest rate risks related to our long-term debt through the use of interest rate swaps.
−Removed: Such swaps allow us to effectively convert fixed-rate payments into floating-rate payments based on LIBOR.
+Added: From time to time, we enter into interest rate swap agreements that allow us to effectively convert fixed-rate payments into floating-rate payments on portions of our outstanding long-term debt.
+Added: We enter into these agreements, in part, to manage interest rate risk associated with our cash equivalents and marketable securities, in addition to changes in the fair value of our outstanding debt.
These transactions are designated as fair value hedges, and the gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to changes in the market interest rates.
−Removed: The net gains and losses on the interest rate swaps, as well as the offsetting gains or losses on the related fixed-rate debt attributable to the hedged risks, are recognized in earnings as interest expense in the current period.
+Added: The net gains and losses on the interest rate swaps, as well as the offsetting gains or losses on the related fixed-rate debt attributable to the hedged risks, are recognized as interest expense in the current period.
The interest settlement payments associated with the interest rate swap agreements are classified as cash flows from operating activities in the consolidated statements of cash flows.
−Removed: There were no outstanding interest rate swaps related to long-term debt at September 26, 2021 and September 27, 2020.
−Removed: During fiscal 2021, we entered into forward-starting interest rate swaps to hedge the variability of forecasted interest payments on anticipated debt issuances through 2025.
−Removed: These transactions are designated as cash flow hedges of a forecasted transaction.
−Removed: The gains and losses arising from such contracts are recorded as a component in accumulated other comprehensive income as gains and losses on derivative instruments, net of taxes.
−Removed: When the anticipated debt issuances are completed, the hedging gains and losses in accumulated other comprehensive income are reclassified as interest expense over the terms of the related debt issued.
−Removed: The fair values of our forward-starting interest rate swaps recorded in total liabilities were $ 105 million at September 26, 2021.
+Added: During fiscal 2021, we entered into forward-starting interest rate swaps to hedge the variability of forecasted interest payments on certain anticipated debt issuances.
+Added: These have been designated as cash flow hedges of forecasted transactions.
+Added: The gains and losses arising from such contracts are recorded as a component in accumulated other comprehensive income (loss) as gains and losses on derivative instruments.
+Added: When the anticipated debt issuances are completed, the hedging gains and losses in accumulated other comprehensive income (loss) are reclassified as interest expense over the terms of the related debt issued.
Gross Notional Amounts:
6 unchanged sentences
$ 7,707 $ 5,919
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The gross notional amounts of our derivatives by currency were as follows (in millions):
1 unchanged sentence
2022 September 26,
+Added: British pound sterling $ 172 $ 83
Chinese renminbi 1,920 1,627
Indian rupee 1,657 1,262
−Removed: British pound sterling 83 —
Japanese yen 8 27
2 unchanged sentences
Other Hedging Activities.
−Removed: We have designated $ 1.5 billion of foreign currency-denominated liabilities, excluding accrued interest, related to the fines imposed by the European Commission as hedges of our net investment in certain foreign subsidiaries at September 26, 2021 and September 27, 2020.
−Removed: Gains and losses arising from the portion of these balances that are designated as net investment hedges are recorded as a component of accumulated other comprehensive income as foreign currency translation adjustment.
+Added: At September 25, 2022 and September 26, 2021, we designated $ 235 million and $ 1.5 billion, respectively, of foreign currency-denominated liabilities, excluding accrued interest, related to the fine(s) imposed by the European Commission as hedges of our net investment in certain foreign subsidiary(ies).
+Added: Gains and losses arising from the portion of these balances that are designated as net investment hedges are recorded as a component of accumulated other comprehensive income (loss) as foreign currency translation adjustments.
+Added: During fiscal 2022, we discontinued the net investment hedge related to one of the fines previously recorded related to the European Commission (EC) Investigation (Note 7).
+Added: The associated foreign currency gains related to this fine previously recorded will remain in accumulated other comprehensive income (loss) until the foreign subsidiaries are sold or substantially liquidated, at which point it will be reclassified into earnings.
Fair Value Measurements.
7 unchanged sentences
• Level 3 includes financial instruments for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including our own assumptions.
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Assets and liabilities measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement.
3 unchanged sentences
Cash Equivalents and Marketable Securities:
−Removed: With the exception of auction rate securities, we obtain pricing information from quoted market prices, pricing vendors or quotes from brokers/dealers.
+Added: We obtain pricing information from quoted market prices, pricing vendors or quotes from brokers/dealers.
We conduct reviews of our primary pricing vendors to determine whether the inputs used in the vendor’s pricing processes are deemed to be observable.
+Added: Contractual sale restrictions are not considered in measuring the fair value of marketable equity securities.
The fair value for interest-bearing securities includes accrued interest.
2 unchanged sentences
The fair value of mortgage- and asset-backed securities is derived from the use of matrix pricing (prices for similar securities) or, in some cases, cash flow pricing models with observable inputs, such as contractual terms, maturity, credit rating and/or securitization structure to determine the timing and amount of future cash flows.
−Removed: The fair value of auction rate securities is estimated using a discounted cash flow model that incorporates transaction details, such as contractual terms, maturity and timing and amount of future cash flows, as well as assumptions related to liquidity, default likelihood and recovery, the future state of the auction rate market and credit valuation adjustments of market participants.
−Removed: Though most of the securities we held were pools of student loans guaranteed by the United States government, prepayment speeds and illiquidity discounts are considered significant unobservable inputs, and therefore, auction rate securities were included in Level 3.
−Removed: During fiscal 2021, we sold all of our investments held in auction rate securities.
Derivative Instruments:
3 unchanged sentences
Other investments and other liabilities included in Level 1 are comprised of our deferred compensation plan liabilities and related assets, which consist of mutual funds and are included in other current assets and other assets.
−Removed: Gains and losses on the revaluation of our deferred compensation plan assets are recorded in investment and other income, net and are not allocated to our segments.
−Removed: Corresponding offsetting amounts related to the revaluation of our deferred compensation plan liabilities are included in unallocated operating expenses.
−Removed: Other investments included in Level 3 are comprised of contingently issuable equity instruments and warrants issued in connection with certain mergers and initial public offerings of our non-marketable equity investees and convertible debt instruments issued by private companies.
+Added: Gains and losses on the revaluation of our deferred compensation plan assets are recorded in investment and other income (expense), net.
+Added: Corresponding offsetting amounts related to the revaluation of our deferred compensation plan liabilities are included in operating expenses.
+Added: Other investments included in Level 3 are comprised of contingently issuable equity instruments and warrants issued in connection with certain mergers and initial public offerings of
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: our non-marketable equity investees and convertible debt instruments issued by private companies.
The inputs we use to estimate the fair values of these instruments are generally unobservable, and therefore, they are included in Level 3.
4 unchanged sentences
Recoverability of inventories is assessed based on review of future customer demand that considers multiple factors, including committed purchase orders from customers as well as purchase commitment projections provided by customers and our own forecasts of customer demand, among other factors.
−Removed: This valuation also requires us to make judgments and assumptions based on information currently available about market conditions, including competition, product pricing, product life cycle, development plans and other broader market conditions that may impact customer demand, such as the impact of certain c apacity constraints experienced across the semiconductor industry in fiscal 2021 and the impacts of COVID-19 in fiscal 2020.
−Removed: As we move to smaller geometry process technologies, the manufacturing lead-time increases, resulting in an increased reliance on our own forecasts of customer demand, rather than our customers’ forecasts.
−Removed: If we overestimate demand for our products, the amount of our loss will be impacted by our contractual ability to reduce inventory purchases from our suppliers, including those under our multi-year capacity purchase commitments.
+Added: This valuation also requires us to make judgments and assumptions based on information currently available about market conditions, including competition, anticipated technological changes, internal product life cycle and development plans, product pricing and other broader market conditions that may impact customer demand, such as the impact of certain capacity constraints experienced across the semiconductor industry through the third quarter of fiscal 2022 and in fiscal 2021, as well as the impact of the macroeconomic environment in fiscal 2022.
+Added: We generally place binding purchase orders with our suppliers in advance of receiving contractually binding forecasts and/or purchase orders from our customers.
+Added: The time period between placing purchase orders with our suppliers and receiving contractually binding forecasts and/or purchase orders from our customers has increased and may continue to increase as a result of extended manufacturing lead-times, driven in part by a continued transition to leading-edge technologies and/or increased complexity in the manufacturing process of our products.
+Added: If we overestimate demand for our products, the amount of our loss will be impacted by our contractual ability to reduce inventory purchases from our suppliers.
+Added: Our manufacturing relationships generally allow for cancellation of outstanding purchase commitments, but in some cases may require incremental fees and/or the loss of amounts paid in advance related to capacity underutilization.
+Added: Further, if our customers cancel purchase orders or alter forecasts this may result in excess inventory on hand.
Our assumptions of future product demand are inherently uncertain, and changes in our estimates and assumptions may cause us to record additional write-downs in the future if demand forecasted for specific products is greater than actual demand.
4 unchanged sentences
Leasehold improvements and buildings on leased land are amortized over the shorter of their estimated useful lives, not to exceed 15 years and 30 years, respectively, or the remaining term of the related lease.
−Removed: Other property, plant and equipment
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: have useful lives ranging from 2 to 25 years.
+Added: Other property, plant and equipment have useful lives ranging from 2 to 15 years.
Maintenance, repairs and minor renewals or betterments are charged to expense as incurred.
18 unchanged sentences
If goodwill is quantitatively assessed for impairment and a reporting unit’s carrying value exceeds its fair value, the difference is recorded as an impairment.
−Removed: Other indefinite-lived intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: indefinite-lived intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values.
If the carrying value exceeds the fair value, the difference is recorded as an impairment.
−Removed: Our judgments regarding the existence of impairment indicators and future cash flows related to goodwill and long-lived assets may be based on operational performance of our businesses, market conditions, expected selling price and/or other factors.
+Added: Our judgments regarding the existence of impairment indicators and future cash flows related to goodwill, other indefinite-lived assets and long-lived assets may be based on operational performance of our businesses, market conditions, expected selling price and/or other factors.
Although there are inherent uncertainties in this assessment process, the estimates and assumptions we use, including estimates of future cash flows and discount rates, are consistent with our internal planning, when appropriate.
−Removed: If these estimates or their related assumptions change in the future, we may be required to record an impairment charge on a portion or all of our goodwill and/or long-lived assets.
+Added: If these estimates or their related assumptions change in the future, we may be required to record an impairment charge on a portion or all of such assets.
Furthermore, we cannot predict the occurrence of future impairment-triggering events nor the impact such events might have on our reported asset values.
−Removed: Future events could cause us to conclude that impairment indicators exist, and that goodwill associated with our acquired businesses are impaired.
Long-lived assets, such as property, plant and equipment and intangible assets subject to amortization, are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.
12 unchanged sentences
Sales-based royalties are generally based upon a percentage of the wholesale (i.e., licensee’s) selling price of complete licensed products, net of certain permissible deductions (including transportation, insurance, packing costs and other items).
−Removed: We broadly provide per unit royalty caps that apply to certain
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: categories of complete wireless devices, namely smartphones, tablets, laptops and smartwatches, and provide for a maximum royalty amount payable per device.
+Added: We broadly provide per unit royalty caps that apply to certain categories of complete wireless devices, such as smartphones, tablets, laptops and smartwatches, and provide for a maximum royalty amount payable per device.
We estimate and recognize sales-based royalties on such licensed products in the period in which the associated sales occur, considering all relevant information (historical, current and forecasted) that is reasonably available to us.
Our estimates of sales-based royalties are based largely on preliminary royalty estimates provided by our licensees and, to a lesser extent, an assessment of the volume of devices supplied into the market that incorporate or use our licensed intellectual property, combined with an estimate of the mix of such sales on a licensee-by-licensee basis, as well as the licensees’ average wholesale prices of such products.
−Removed: We have recognized immaterial differences between preliminary royalty estimates provided to us by licensees and actual amounts reported and paid by licensees, which are generally received the following quarter, as licensees have not completed their royalty reporting process at the time estimates are provided to us, and in certain cases, they do not provide all necessary information in order for us to calculate an estimate of royalties due, which requires us to independently estimate certain information.
+Added: In the periods presented, we have recognized immaterial differences between preliminary royalty estimates provided to us by licensees and actual amounts reported and paid by licensees, which are generally received the following quarter, as licensees have not completed their royalty reporting process at the time estimates are provided to us, and in certain cases, they do not provide all necessary information in order for us to calculate an estimate of royalties due, which requires us to independently estimate certain information.
We also consider in our estimates of sales-based royalties any changes in pricing we plan or expect to make and certain constraints on our ability to estimate such royalties.
2 unchanged sentences
Since we expect to expend efforts to develop and transfer updates to our licensed portfolio on an even basis, license fees are recognized as revenues on a straight-line basis over the estimated period of benefit of the license to the licensee.
−Removed: We account for a contract with a customer/licensee when it is legally enforceable, the parties are committed to perform their respective obligations, the rights of the parties regarding the goods and/or services to be transferred are identified, payment terms are identified, the contract has commercial substance and collectability of substantially all of the consideration is probable.
−Removed: If all such conditions are not met, revenues and any associated receivables are generally not recognized until such time that the required conditions are met.
+Added: We account for a contract with a customer/licensee when it is legally enforceable, the parties are committed to perform their respective obligations, the rights of the parties regarding the goods and/or services to be transferred are identified, payment terms are identified, the contract has commercial substance and collectability of substantially all of the consideration is probable, which for product sales, is generally when a customer purchase order is executed and for licensing revenues, is generally upon execution of a license agreement.
+Added: If all such conditions are not met, revenues and any associated receivables
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: are generally not recognized until such time that the required conditions are met.
Cash collected from customers prior to a contract existing is recorded to other customer-related liabilities in other current liabilities.
12 unchanged sentences
For certain QCT (Qualcomm CDMA Technologies) customer incentive arrangements, there is complexity in applying certain contractual terms to determine the amount recorded as a reduction to revenues.
−Removed: No significant reversals of revenues have been made related to such amounts previously recorded.
+Added: For the periods presented, no significant reversals of revenues have been made related to such amounts previously recorded.
The amounts accrued for customer incentive arrangements are recorded as a reduction to accounts receivable, net or as other current liabilities based on whether we have the intent and contractual right of offset.
−Removed: Certain amounts recorded as a reduction to revenues for customer incentive arrangements are considered variable
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: consideration and are included in the transaction price primarily based on estimating the most likely amount expected to be provided to the customer/licensee.
−Removed: Adjustments made to revenues in subsequent periods to reflect changes in estimates as new information becomes available are included in our disclosure of revenues recognized from previously satisfied performance obligations.
+Added: Certain amounts recorded as a reduction to revenues for customer incentive arrangements are considered variable consideration and are included in the transaction price primarily based on estimating the most likely amount expected to be provided to the customer/licensee.
+Added: Adjustments made to revenues in subsequent periods to reflect changes in estimates as new information becomes available are included in our disclosure of revenues recognized from previously satisfied performance obligations (Note 2).
Revenues recognized from sales of our products and sales-based royalties are generally included in accounts receivable, net (including unbilled receivables) based on our unconditional right to payment for satisfied or partially satisfied performance obligations.
Concentrations.
−Removed: A significant portion of our revenues are concentrated with a small number of customers/licensees of our QCT (Qualcomm CDMA Technologies) and QTL (Qualcomm Technology Licensing) segments.
−Removed: The comparability of customer/licensee concentrations for the periods presented are impacted by the timing of customer/licensees device launches and/or innovation cycles, among other fluctuations in demand.
+Added: A significant portion of our revenues are concentrated with a small number of customers/licensees of our QCT and QTL (Qualcomm Technology Licensing) segments.
+Added: The comparability of customer/licensee concentrations for the periods presented are impacted by the timing of customer/licensees device launches and/or innovation cycles and other seasonal trends, among other fluctuations in demand.
Revenues from each customer/licensee that were 10% or greater of total revenues were as follows:
7 unchanged sentences
* Less than 10%
−Removed: We rely on sole- or limited-source suppliers for some products, particularly products in the QCT segment, subjecting us to possible shortages of raw materials or manufacturing capacity.
+Added: We rely on sole- or limited-source suppliers for some products, particularly products in our QCT segment, subjecting us to possible shortages of raw materials or manufacturing capacity.
The loss of a supplier or the inability of a supplier to meet performance or quality specifications or delivery schedules could harm our ability to meet our delivery obligations and/or negatively impact our revenues, business operations and ability to compete for future business.
1 unchanged sentence
Share-based compensation expense for equity-classified awards, principally related to restricted stock units (RSUs), is measured at the grant date, or at the acquisition date for awards assumed in business combinations, based on the estimated fair value of the award and is recognized over the employee’s requisite service period.
−Removed: The fair values of RSUs are estimated based on the fair market values of the underlying stock on the dates of grant or dates the RSUs are assumed.
+Added: The fair values of RSUs are estimated based on the fair market values of the underlying stock on the dates of grant or dates
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: the RSUs are assumed.
Share-based compensation expense is adjusted to exclude amounts related to share-based awards that are expected to be forfeited.
8 unchanged sentences
Accordingly, we may have little or no idea what an agency’s intent is with respect to liability, penalties or the timing of a decision.
−Removed: In many cases the agencies are given significant discretion, and any available precedent may have limited, if any, predictive value in their jurisdictions, much less in other jurisdictions.
+Added: In many cases the agencies are given significant discretion, and any available precedent may have limited, if any, predictive value in their jurisdictions or other jurisdictions.
Accordingly, we cannot predict the outcome of these matters.
9 unchanged sentences
Certain foreign subsidiaries use a local currency as the functional currency.
−Removed: Resulting translation gains or losses are recorded as a component of accumulated other comprehensive income.
−Removed: Transaction gains or losses related
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: to balances denominated in a currency other than the functional currency are recognized in the consolidated statements of operations.
+Added: Resulting translation gains or losses are recorded as a component of accumulated other comprehensive income (loss).
+Added: Transaction gains or losses related to balances denominated in a currency other than the functional currency of the entity involved are recognized in the consolidated statements of operations.
Income Taxes.
4 unchanged sentences
We classify all deferred tax assets and liabilities as noncurrent in the consolidated balance sheets.
+Added: We recognize excess tax benefits and shortfall tax detriments associated with share-based awards in the consolidated statements of operations, as a component of income tax expense, when realized.
Our income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service (IRS) and other tax authorities.
5 unchanged sentences
We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.
−Removed: We recognize excess tax benefits and shortfall tax detriments associated with share-based awards in the consolidated statements of operations, as a component of income tax expense, when realized.
We are subject to income taxes in the United States and numerous foreign jurisdictions, and the assessment of our income tax positions involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions.
4 unchanged sentences
Therefore, the actual liability for U.S.
−Removed: or foreign taxes may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities.
−Removed: We are participating in the IRS Compliance Assurance Process program whereby we endeavor to agree with the IRS on the treatment of all issues prior to filing our federal return.
−Removed: A benefit of participation in this program is that post-filing adjustments by the IRS are less likely to occur.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: taxes may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities.
+Added: For tax years prior to fiscal 2021, we are participating in the IRS Compliance Assurance Process program whereby we endeavor to agree with the IRS on the treatment of all issues prior to filing our federal return.
Stock Repurchases.
To reflect share repurchases in the consolidated balance sheet, we (i) reduce common stock for the par value of the shares, (ii) reduce paid-in capital for the amount in excess of par to zero during the quarter in which the shares are repurchased and (iii) record the residual amount, if any, to retained earnings .
+Added: In August 2022, the Inflation Reduction Act was enacted in the United States, which included, among other items, a 1% excise tax on certain net stock repurchases after December 31, 2022.
+Added: Any such excise tax on our stock repurchases will be recorded as a component of stockholders’ equity.
Earnings (Loss) Per Share.
5 unchanged sentences
Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period 1 — 1
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Composition of Certain Financial Statement Items
5 unchanged sentences
$ 5,643 $ 3,579
−Removed: In July 2020, we entered into a settlement agreement with Huawei to resolve our prior dispute related to the license agreement that expired on December 31, 2019.
−Removed: We also entered into a new long-term, global patent license agreement that applies to sales of certain wireless products by Huawei beginning on January 1, 2020.
−Removed: As a result, we recorded revenues of $ 1.8 billion in the fourth quarter of fiscal 2020 related to the full amount due from Huawei under the settlement agreement and amounts paid for the March 2020 and June 2020 quarters under the new global patent license agreement.
−Removed: Accounts receivable at September 27, 2020 included approximately $ 1.3 billion, excluding the impact of foreign withholding taxes, from Huawei related to the remaining amounts due under the settlement agreement and estimated royalties for sales made in the September 2020 quarter.
−Removed: Since September 27, 2020, Huawei paid all such amounts, including the final installment under the settlement agreement in accordance with the agreed upon payment schedule.
Inventories (in millions)
5 unchanged sentences
$ 6,341 $ 3,228
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Property, Plant and Equipment (in millions)
8 unchanged sentences
Construction in progress 330 269
+Added: 11,770 10,454
Less accumulated depreciation and amortization ( 6,602 ) ( 5,895 )
$ 5,168 $ 4,559
−Removed: Depreciation and amortization expense related to property, plant and equipment for fiscal 2021, 2020 and 2019 was $ 1.0 billion, $ 772 million and $ 674 million, respectively.
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: Depreciation and amortization expense related to property, plant and equipment for fiscal 2022, 2021 and 2020 was $ 1.3 billion, $ 1.0 billion and $ 772 million, respectively.
Goodwill and Other Intangible Assets.
We allocate goodwill to our reporting units for impairment testing purposes.
−Removed: The following table presents the goodwill allocated to our reportable and nonreportable segments, as described in Note 8, as well as the changes in the carrying amounts of goodwill during fiscal 2021 and 2020 (in millions):
−Removed: QCT QTL Nonreportable Segments Total
+Added: The following table presents the goodwill allocated to our segments, as described in Note 8, as well as the changes in the carrying amounts of goodwill during fiscal 2022 and 2021 (in millions):
+Added: QCT QTL Total
Balance at September 27, 2020 $ 5,605 $ 718 $ 6,323
+Added: Acquisitions 912 5 917
Foreign currency translation adjustments 6 — 6
15 unchanged sentences
$ 5,607 $ ( 3,725 ) 10 $ 5,478 $ ( 4,020 ) 11
−Removed: All of these intangible assets are subject to amortization, other than acquired in-process research and development which had a carrying value of $ 247 million at September 26, 2021.
−Removed: At September 27, 2020, there was no in-process research and development.
+Added: All of these intangible assets are subject to amortization, other than acquired in-process research and development which had a carrying value of $ 546 million and $ 247 million at September 25, 2022 and September 26, 2021, respectively.
Amortization expense related to these intangible assets was $ 482 million, $ 537 million and $ 621 million for fiscal 2022, 2021 and 2020, respectively.
−Removed: Amortization expense related to these intangible assets and acquired in-process research and development, beginning upon the completion of the underlying projects, is expected to be $ 449 million, $ 340 million, $ 186 million, $ 153 million and $ 132 million for each of the five years from fiscal 2022 through 2026, respectively, and $ 198 million thereafter.
+Added: At September 25, 2022, amortization expense related to other intangible assets, including acquired in-process research and development beginning upon the completion of the underlying projects, is expected to be $ 429 million, $ 275 million, $ 245 million, $ 246 million and $ 168 million for each of the five years from fiscal 2023 through 2027, respectively, and $ 519 million thereafter.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Equity Method and Non-marketable Equity Investments.
13 unchanged sentences
$ 3,689 $ 5,014
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
We disaggregate our revenues by segment (Note 8), by product and service (as presented on our consolidated statements of operations), and for our QCT segment, by revenue stream, which is based on the industry and application in which our products are sold (as presented below).
10 unchanged sentences
(2) Includes all revenues from sales of 4G, 5G sub-6 and 5G millimeter wave RFFE products (a substantial portion of which are sold for use in mobile handsets) and excludes radio frequency transceiver components.
−Removed: (3) Includes revenues from products sold for use in automobiles, including telematics, connectivity and digital cockpit.
+Added: (3) Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and advanced driver assistance and automated driving.
(4) Primarily includes products sold for use in the following industries and applications:
−Removed: consumer (including computing, voice and music and XR), industrial (including handhelds, retail, transportation and logistics and utilities) and edge networking (including mobile broadband and wireless access points).
+Added: consumer (including computing, voice and music and XR), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, transportation and logistics and utilities).
Revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods were as follows (in millions):
2 unchanged sentences
$ 788 $ 283 $ 1,480
−Removed: (1) Primarily related to certain QCT customer incentives, QTL revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalty due) and the release of a variable constraint against revenues not previously allocated to our segment results (Note 8).
+Added: (1) Primarily related to certain QCT sales-based royalty revenues related to system software, certain QCT customer incentives and, to a lesser extent, QTL royalty revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due).
+Added: (2) Primarily related to certain QCT customer incentives, QTL revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due) and the release of a variable constraint against revenues not previously allocated to our segment results (Note 8).
(3) Primarily related to licensing revenues recognized in the fourth quarter of fiscal 2020 (a portion of which was attributable to fiscal 2020) resulting from the settlement with Huawei and, to a lesser extent, QTL royalties recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due) and certain QCT customer incentives .
−Removed: (3) Primarily related to licensing revenues recognized in the third quarter of fiscal 2019 (a portion of which was attributable to fiscal 2019) resulting from the settlement with Apple and its contract manufacturers in April 2019.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unearned revenues (which are considered contract liabilities) consist primarily of license fees for intellectual property with continuing performance obligations.
1 unchanged sentence
Remaining performance obligations, substantially all of which are included in unearned revenues, represent the aggregate amount of the transaction price of certain customer contracts yet to be recognized as revenues as of the end of the reporting period and exclude revenues related to (a) contracts that have an original expected duration of one year or less and (b) sales-based royalties (i.e., future royalty revenues) pursuant to our license agreements.
−Removed: Our remaining performance obligations are primarily comprised of certain customer contracts for which QTL received license fees upfront.
−Removed: At September 26, 2021, we had $ 1.1 billion of remaining performance obligations, of which $ 653 million, $ 308 million, $ 84 million, $ 31 million and $ 2 million is expected to be recognized as revenues for each of the subsequent five years from fiscal 2022 through 2026, respectively, and no amounts expected thereafter.
+Added: Our remaining performance obligations are primarily comprised of certain customer contracts for which QTL received license fees upfront and certain customer contracts for which QCT received upfront fees for licensing system software.
+Added: At September 25, 2022, we had $ 690 million of remaining performance obligations, of which $ 451 million, $ 173 million, $ 57 million, $ 5 million and $ 1 million is expected to be recognized as revenues for each of the subsequent five years from fiscal 2023 through 2027, respectively, and $ 3 million expected thereafter.
Share-based Compensation Expense.
7 unchanged sentences
$ 1,572 $ 1,235 $ 974
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Income, Costs and Expenses.
+Added: In the third quarter of fiscal 2022, the General Court of the European Union issued a ruling annulling a decision made by the EC in fiscal 2018 (Note 7).
+Added: As a result of the court’s decision, we recorded a $ 1.1 billion benefit to other income in fiscal 2022.
Other expenses in fiscal 2020 consisted of $ 28 million in gains related to a favorable legal settlement.
−Removed: Other expenses in fiscal 2019 consisted of a $ 275 million charge related to a fine imposed by the European Commission (EC) related to the Icera complaint (2019 EC fine) (Note 7) and $ 213 million in net charges related to our Cost Plan that concluded in fiscal 2019 (primarily related to certain asset impairment charges and also included a $ 52 million net gain from the sale of certain assets related to wireless electric vehicle charging applications and the sale of our mobile health nonreportable segment), partially offset by a $ 43 million gain due to the partial recovery of a fine imposed in 2009 resulting from our appeal of the Korea Fair Trade Commission (KFTC) decision and a $ 31 million gain related to a favorable legal settlement.
−Removed: Investment and Other Income, Net (in millions)
+Added: Investment and Other (Expense) Income, Net (in millions)
2022 2021 2020
Interest and dividend income $ 91 $ 83 $ 156
−Removed: Net gains on marketable securities 427 198 295
+Added: Net (losses) gains on marketable securities ( 363 ) 427 198
Net gains on other investments 113 470 108
−Removed: Net gains on deferred compensation plan assets 130 47 9
+Added: Net (losses) gains on deferred compensation plan assets ( 141 ) 130 47
Impairment losses on other investments ( 47 ) ( 33 ) ( 405 )
Net (losses) gains on derivative instruments ( 37 ) ( 14 ) 8
−Removed: Equity in net earnings (losses) of investees 13 ( 21 ) ( 93 )
−Removed: Net (losses) gains on foreign currency transactions ( 32 ) ( 25 ) 11
+Added: Equity in net (losses) earnings of investees ( 7 ) 13 ( 21 )
+Added: Net gains (losses) on foreign currency transactions 19 ( 32 ) ( 25 )
$ ( 372 ) $ 1,044 $ 66
−Removed: I n fiscal 2020, the rapid, global spread of COVID-19 and associated containment and mitigation measures negatively impacted the condition of economies and financial markets globally, which negatively impacted certain companies in which we hold non-marketable equity investments, including those accounted for under the equity method and, to a lesser extent, non-marketable debt securities.
−Removed: As a result, certain of our investments were impaired and written down to their estimated fair values in fiscal 2020 (a significant portion of which related to the full impairment of our investment in OneWeb, who filed for bankruptcy in the second quarter of fiscal 2020).
−Removed: The components of the income tax provision were as follows (in millions):
+Added: In fiscal 2020, in part due to the impact of COVID-19, certain of our investments were impaired and written down to their estimated fair values (a significant portion of which related to the full impairment of our investment in OneWeb, who filed for bankruptcy in the second quarter of fiscal 2020).
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: The components of the income tax provision from continuing operations were as follows (in millions):
2022 2021 2020
−Removed: Current provision (benefit):
+Added: Current provision:
Federal $ 1,114 $ 942 $ 210
7 unchanged sentences
(1) The foreign component of the income tax provision included foreign withholding taxes on royalty revenues included in U.S.
−Removed: The components of income before income taxes by U.S.
+Added: The components of income from continuing operations before income taxes by U.S.
and foreign jurisdictions were as follows (in millions):
3 unchanged sentences
$ 14,998 $ 10,274 $ 5,719
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The following is a reconciliation of the expected statutory federal income tax provision to our actual income tax provision (in millions, except percentages).
−Removed: Substantially all of our income is in the U.S., of which a significant portion qualifies for preferential treatment as FDII at a 13 % effective tax rate.
+Added: The following is a reconciliation of the expected statutory federal income tax provision to our actual income tax provision from continuing operations (in millions, except percentages).
+Added: Substantially all of our income from continuing operations is in the U.S., of which a significant portion qualifies for preferential treatment as FDII at a 13 % effective tax rate.
2022 2021 2020
2 unchanged sentences
Excess tax benefit associated with share-based awards ( 257 ) ( 265 ) ( 83 )
+Added: Foreign currency losses (gains) related to Korean withholding tax receivable 243 12 ( 37 )
+Added: Nontaxable reversal of 2018 EC fine ( 224 ) — —
Benefit related to research and development tax credits ( 224 ) ( 195 ) ( 125 )
−Removed: Derecognition of deferred tax asset on distributed intellectual property — — 2,472
−Removed: Benefit from establishing new U.S.
−Removed: net deferred tax assets — — ( 570 )
Other 77 71 ( 54 )
1 unchanged sentence
Effective tax rate 13 % 12 % 9 %
−Removed: In fiscal 2019, several of our foreign subsidiaries made elections to be treated as U.S.
−Removed: branches for federal income tax purposes (commonly referred to as “check-the-box” elections) effective beginning in fiscal 2018 and 2019.
−Removed: As a result of making these check-the-box elections, we recorded a tax benefit of $ 570 million in the first quarter of fiscal 2019 due to establishing new U.S.
−Removed: net deferred tax assets resulting from the difference between the GAAP basis and the U.S.
−Removed: federal tax carryover basis of the existing assets and liabilities of those foreign subsidiaries, primarily related to customer incentive liabilities that have not been deducted for tax purposes.
−Removed: Additionally, during fiscal 2018, one of our foreign subsidiaries distributed certain intellectual property to a U.S.
−Removed: subsidiary resulting in a difference between the GAAP basis and the U.S.
−Removed: federal tax basis of the distributed intellectual property.
−Removed: Upon adoption of new accounting guidance in the first quarter of fiscal 2019, which changed the accounting for the income tax effects of intra-entity transfers of assets other than inventory, we recorded a deferred tax asset of approximately $ 2.6 billion primarily related to the distributed intellectual property, with an adjustment to opening retained earnings.
−Removed: During the third quarter of fiscal 2019, the United States Treasury Department issued new temporary regulations that resulted in a change to the deductibility of dividend income received by a U.S.
−Removed: stockholder from a foreign corporation.
−Removed: As a result of this change, pursuant to an agreement with the IRS, we relinquished the federal tax basis step-up of intellectual property that was distributed in fiscal 2018 by one of our foreign subsidiaries to a U.S.
−Removed: Therefore, the related deferred tax asset was derecognized, resulting in a $ 2.5 billion charge to income tax expense in fiscal 2019.
−Removed: In fiscal 2019, as a result of certain court rulings in Korea, among other factors, we decided to apply for a partial refund claim for taxes previously withheld from licensees in Korea on payments due under their license agreements to which we have claimed a foreign tax credit in the United States.
+Added: Beginning in fiscal 2019, as a result of certain court rulings in Korea, among other factors, we decided to apply for a partial refund claim for taxes previously withheld from licensees in Korea on payments due under their license agreements to which we have claimed a foreign tax credit in the United States.
As a result, $ 1.7 billion and $ 1.9 billion was recorded as a noncurrent income taxes receivable (recorded in other assets) at September 25, 2022 and September 26, 2021, respectively, and $ 2.1 billion and $ 1.9 billion was recorded as a noncurrent liability for uncertain tax benefits (recorded in other liabilities) at September 25, 2022 and September 26, 2021, respectively.
−Removed: At September 26, 2021, we estimated remaining future payments of $ 1.9 billion for a one-time repatriation tax accrued in fiscal 2018, after application of certain tax credits, which is payable in installments over the next five years.
−Removed: At September 26, 2021, $ 196 million was recorded in other current liabilities, reflecting the next installment due in January 2022.
+Added: At September 25, 2022, we estimated remaining future payments of $ 1.7 billion for a one-time repatriation tax accrued in fiscal 2018, after application of certain tax credits, which is payable in installments over the next four years.
+Added: At September 25, 2022, $ 207 million was recorded in other current liabilities, reflecting the next installment due in January 2023, with the remaining noncurrent portion presented as income taxes payable on our balance sheet.
We continue to assert that certain of our foreign earnings are not indefinitely reinvested.
−Removed: At September 26, 2021, we had not recorded a deferred tax liability of approximately $ 63 million related to foreign withholding taxes on approximately $ 761 million of undistributed earnings of certain subsidiaries that we continue to consider to be indefinitely reinvested outside the United States.
−Removed: Should we decide to no longer indefinitely reinvest such earnings outside the U.S., we would have to adjust the income tax provision in the period we make such determination.
−Removed: We have tax incentives in Singapore that require we meet specified employment and other criteria.
−Removed: Although our profit in Singapore has declined as a result of our 2018 restructuring and such tax incentives were not significant for all periods presented, failure to meet these incentive requirements through March 2022 could require us to refund previously realized material tax benefits for 2017 and 2018.
+Added: At September 25, 2022, we had not recorded a deferred tax liability of approximately $ 70 million related to foreign withholding taxes on approximately $ 851 million of undistributed earnings of certain subsidiaries that we continue to consider to be indefinitely reinvested outside the
QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: United States.
+Added: Should we decide to no longer indefinitely reinvest such earnings outside the U.S., we would have to adjust the income tax provision in the period we make such determination.
+Added: We have tax incentives in Singapore that require we meet specified employment and other criteria.
+Added: Although our profit in Singapore declined as a result of restructuring our operations in 2018, we were required to meet (and did meet) certain incentive requirements through March 2022.
+Added: Failure to meet such requirements could have required us to refund previously realized material tax benefits for 2017 and 2018.
We had deferred tax assets and deferred tax liabilities as follows (in millions):
2 unchanged sentences
Unused tax credits $ 1,624 $ 1,504
−Removed: Customer incentives 762 537
Unused net operating losses 887 663
+Added: Customer incentives 807 762
Accrued liabilities and reserves 264 483
−Removed: Operating lease liabilities 188 107
−Removed: Unearned revenues 181 262
Share-based compensation 225 175
+Added: Operating lease liabilities 202 188
Unrealized losses on other investments and marketable securities 197 106
+Added: Unearned revenues 100 181
Other 335 165
2 unchanged sentences
Total net deferred tax assets 2,418 2,301
−Removed: Unrealized gains on other investments and marketable securities ( 215 ) ( 97 )
Intangible assets ( 315 ) ( 198 )
1 unchanged sentence
Property, plant and equipment ( 101 ) ( 111 )
+Added: Unrealized gains on other investments and marketable securities ( 84 ) ( 215 )
+Added: Accrued withholding taxes ( 62 ) ( 42 )
Other ( 36 ) ( 34 )
8 unchanged sentences
We do not expect our federal net operating loss carryforwards to expire unused.
−Removed: At September 26, 2021, we have provided a valuation allowance on certain state tax credits, foreign deferred tax assets and state net operating losses of $ 1.3 billion, $ 607 million and $ 13 million, respectively.
−Removed: The valuation allowance reflects the uncertainties surrounding our ability to generate sufficient future taxable income in certain foreign and state tax jurisdictions to utilize our net operating losses.
+Added: At September 25, 2022, we have provided a valuation allowance on certain state tax credits, foreign deferred tax assets, state net operating losses and federal tax credits of $ 1.5 billion, $ 673 million, $ 42 million and $ 4 million, respectively.
+Added: The valuation allowance reflects the uncertainties surrounding our ability to generate sufficient future taxable income in certain tax jurisdictions to utilize our net operating losses.
We believe, more likely than not, that we will have sufficient taxable income after deductions related to share-based awards to utilize our remaining deferred tax assets.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2022, 2021 and 2020 follows (in millions):
6 unchanged sentences
Ending balance of unrecognized tax benefits $ 2,191 $ 2,136 $ 1,901
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Of the $ 2.2 billion of unrecognized tax benefits, $ 2.0 billion has been recorded to other liabilities.
2 unchanged sentences
The unrecognized tax benefits differ from the amount that would affect our effective tax rate primarily because the unrecognized tax benefits were included on a gross basis and did not reflect related receivables or secondary impacts, such as the federal deduction for state taxes, adjustments to deferred tax assets and the valuation allowance that might be required if our tax positions are sustained.
−Removed: The increase in unrecognized tax benefits for all periods presented was primarily due to expected refunds of Korean withholding tax previously paid (which had an insignificant impact to our income tax provision).
+Added: The increase in unrecognized tax benefits for all periods presented was primarily due to expected refunds of Korean withholding tax previously paid (which such increase had an insignificant impact to our income tax provision).
If successful, the refund will result in a corresponding reduction in U.S.
5 unchanged sentences
federal jurisdiction and various state and foreign jurisdictions.
−Removed: We are currently a participant in the IRS Compliance Assurance Process (CAP) Program, whereby we and the IRS endeavor to agree on the treatment of all tax issues prior to the tax return being filed.
+Added: For tax years prior to fiscal 2021, we are a participant in the IRS Compliance Assurance Process (CAP) Program, whereby we and the IRS endeavor to agree on the treatment of all tax issues prior to the tax return being filed.
We are no longer subject to U.S.
6 unchanged sentences
However, the final determination of tax audits and any related legal proceedings could materially differ from amounts reflected in our income tax provision and the related accruals.
−Removed: Cash amounts paid for income taxes, net of refunds received, were $ 1.5 billion, $ 830 million and $ 1.1 billion for fiscal 2021, 2020 and 2019, respectively.
+Added: Cash amounts paid for income taxes, net of refunds received, were $ 2.1 billion, $ 1.5 billion and $ 0.8 billion for fiscal 2022, 2021 and 2020, respectively.
Capital Stock
Stock Repurchase Program.
−Removed: On July 26, 2018, we announced a stock repurchase program authorizing us to repurchase up to $ 30.0 billion of our common stock.
−Removed: On October 12, 2021, we announced a new $ 10.0 billion stock repurchase authorization, which is in addition to the remaining repurchase authority of $ 0.9 billion under the aforementioned program.
−Removed: The stock repurchase programs have no expiration date.
−Removed: Since September 26, 2021, we repurchased and retired 5.4 million shares of common stock for $ 703 million.
+Added: On October 12, 2021, we announced a $ 10.0 billion stock repurchase program.
+Added: The stock repurchase program has no expiration date.
+Added: At September 25, 2022, $ 8.1 billion remained authorized for repurchase under our stock repurchase program.
Shares Outstanding.
7 unchanged sentences
The 2016 Plan provides for the grant of RSUs and other stock-based awards.
−Removed: The Board of Directors may amend or terminate the 2016 Plan at any time.
−Removed: Certain amendments, including an increase in the share reserve, require stockholder approval.
−Removed: At September 26, 2021, approximately 71 million shares were available for future grant under the 2016 Plan.
+Added: The RSUs generally include dividend-equivalent rights and vest over three years from the date of grant.
+Added: The Board of Directors may amend or terminate the 2016
QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: RSUs are share awards that entitle the holder to receive shares of our common stock upon vesting.
−Removed: The RSUs generally include dividend-equivalent rights and vest over three years from the date of grant.
−Removed: A summary of RSU transactions under our 2016 Plan that contain only service requirements to vest follows:
+Added: Plan at any time.
+Added: Certain amendments, including an increase in the share reserve, require stockholder approval.
+Added: At September 25, 2022, approximately 43 million shares were available for future grant under the 2016 Plan.
+Added: The following is a summary of employee RSU transactions under our 2016 Plan that contain only service requirements to vest:
Number of Shares
3 unchanged sentences
RSUs granted 20 136.09
−Removed: RSUs assumed in acquisition 1 133.65
RSUs canceled/forfeited ( 2 ) 120.94
7 unchanged sentences
At September 25, 2022, total unrecognized compensation expense related to such non-vested RSUs granted prior to that date was $ 2.6 billion, which is expected to be recognized over a weighted-average period of 1.8 years.
−Removed: The total vest-date fair value of such RSUs that vested during fiscal 2021, 2020 and 2019 was $ 2.6 billion, $ 1.3 billion and $ 977 million, respectively.
−Removed: The total shares withheld to satisfy statutory tax withholding requirements related to all share-based awards were 5 million in fiscal 2021 and 4 million in fiscal 2020 and 2019, and were based on the value of the awards on their vesting dates as determined by our closing stock price.
+Added: The total vest-date fair value of such RSUs that vested during fiscal 2022, 2021 and 2020 was $ 2.9 billion, $ 2.6 billion and $ 1.3 billion, respectively.
+Added: The total shares withheld to satisfy statutory tax withholding requirements related to all share-based awards were 5 million, 5 million and 4 million in fiscal 2022, 2021 and 2020, respectively and were based on the value of the awards on their vesting dates as determined by our closing stock price.
The total tax benefits realized, including the excess tax benefits, related to share-based awards during fiscal 2022, 2021 and 2020 were $ 627 million, $ 567 million and $ 273 million, respectively.
10 unchanged sentences
Long-term Debt.
+Added: In May 2022, we issued unsecured fixed-rate notes, consisting of $ 500 million of fixed-rate 4.25 % notes and $ 1.0 billion of fixed-rate 4.50 % notes (May 2022 Notes) that mature on May 20, 2032 and May 20, 2052, respectively.
+Added: The net proceeds from the May 2022 Notes, together with cash on hand, were used to repay $ 1.5 billion of fixed-rate notes that matured in May 2022.
The following table provides a summary of our long-term debt and current portion of long-term debt:
15 unchanged sentences
2,207 1.98 % - 2.66 %
+Added: May 2022 Notes 2032 - 2052
+Added: 1,500 3.13 % - 4.26 %
Total principal 15,432 15,472
5 unchanged sentences
Total $ 14,983 $ 15,245
−Removed: At September 26, 2021, future principal payments were $ 1.5 billion in fiscal 2022, $ 1.5 billion in fiscal 2023, $ 914 million in fiscal 2024, $ 1.4 billion in fiscal 2025 and $ 10.2 billion after fiscal 2026.
+Added: At September 25, 2022, future principal payments were $ 1.4 billion in fiscal 2023, $ 914 million in fiscal 2024, $ 1.4 billion in fiscal 2025, $ 2.0 billion in fiscal 2027 and $ 9.7 billion after fiscal 2027;
+Added: no principal payments are due in fiscal 2026.
At September 25, 2022, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $ 14.0 billion.
6 unchanged sentences
Cash interest paid related to our commercial paper program and long-term debt, net of cash received from the related interest rate swaps, was $ 491 million, $ 477 million and $ 507 million during fiscal 2022, 2021 and 2020, respectively.
+Added: Interest Rate Swaps.
+Added: At September 25, 2022 and September 26, 2021, we had outstanding forward-starting interest rate swaps with an aggregate notional amount of $ 1.6 billion and $ 2.6 billion, respectively.
+Added: During the third quarter of fiscal 2022, we terminated $ 1 billion of swaps associated with our May 2022 Notes, and the related gains of $ 123 million are being reclassified from accumulated comprehensive income as a reduction to interest expense over the terms of the related debt.
+Added: At September 25, 2022, we had outstanding interest rate swaps with an aggregate notional amount of $ 2.1 billion that are designated as fair value hedges and allow us to effectively convert fixed-rate payments into floating-rate payments on a portion of our outstanding long-term debt.
Commercial Paper Program .
We have an unsecured commercial paper program, which provides for the issuance of up to $ 4.5 billion.
−Removed: Net proceeds from this program are used for general corporate purposes.
+Added: Net proceeds from this program are for general corporate purposes.
Maturities of commercial paper can range from 1 to up to 397 days.
−Removed: At September 26, 2021 and September 27, 2020, we had $ 500 million of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 0.13 % and 0.21 %, respectively, which included fees paid to the commercial paper dealers.
+Added: At September 25, 2022 and September 26, 2021, we had $ 499 million and $ 500 million, respectively, of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 2.69 % and 0.13 %, respectively, which included fees paid to the commercial paper dealers.
At September 25, 2022 and September 26, 2021, the weighted-average remaining days to maturity were 27 days and 39 days, respectively.
1 unchanged sentence
Revolving Credit Facility.
−Removed: On December 8, 2020, we entered into a Revolving Credit Facility replacing our prior Amended and Restated Revolving Credit Facility.
−Removed: There were no outstanding borrowings under the Amended and Restated Revolving Credit Facility at the time of termination and September 27, 2020.
−Removed: The Revolving Credit Facility provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $ 4.5 billion, which expires on December 8, 2025.
+Added: We have 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 $ 4.5 billion, which expires on December 8, 2025.
At September 25, 2022, no amounts were outstanding under the Revolving Credit Facility.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Debt Covenants.
The Revolving Credit Facility requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement.
−Removed: We are not subject to any financial covenants under the notes nor any covenants that would prohibit us from incurring additional indebtedness ranking equal to the notes, paying dividends, issuing securities or repurchasing securities issued by us or our subsidiaries.
+Added: We are not subject to any financial covenants under the notes nor any covenants that would prohibit us from incurring additional indebtedness ranking equal to the notes, paying dividends or issuing securities or repurchasing securities issued by us or our subsidiaries.
At September 25, 2022, we were in compliance with the applicable covenants under the Revolving Credit Facility.
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Commitments and Contingencies
1 unchanged sentence
Consolidated Securities Class Action Lawsuit:
−Removed: On January 23, 2017 and January 26, 2017, securities class action complaints were filed by purported stockholders of us in the United States District Court for the Southern District of California against us and certain of our current and former officers and directors.
+Added: On January 23, 2017 and January 26, 2017, securities class action complaints were filed by purported stockholders of us in the United States District Court for the Southern District of California against us and certain of our then current and former officers and directors.
The complaints alleged, among other things, that we violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, by making false and misleading statements and omissions of material fact in connection with certain allegations that we are or were engaged in anticompetitive conduct.
3 unchanged sentences
On September 1, 2017, we filed a motion to dismiss the consolidated amended complaint, and on March 18, 2019, the court denied our motion.
−Removed: On January 15, 2020, we filed a motion for judgment on the pleadings.
−Removed: The court has not yet ruled on our motion.
−Removed: We believe the plaintiffs’ claims are without merit.
−Removed: In re Qualcomm/Broadcom Merger Securities Litigation:
−Removed: On June 8, 2018 and June 26, 2018, securities class action complaints were filed by purported stockholders of us in the United States District Court for the Southern District of California against us and two of our then current officers.
−Removed: The complaints alleged, among other things, that we violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, by failing to disclose that we had submitted a notice to the Committee on Foreign Investment in the United States (CFIUS) in January 2018.
−Removed: The complaints sought unspecified damages, interest, fees and costs.
−Removed: On March 18, 2019, the plaintiffs filed a consolidated complaint asserting the same basic theories of liability and requesting the same basic relief.
−Removed: On May 10, 2019, we filed a motion to dismiss the consolidated complaint, and on March 10, 2020, the court granted our motion.
−Removed: On May 11, 2020, the plaintiffs filed a second amended complaint, and on October 8, 2020, the court granted our motion to dismiss the case with prejudice.
−Removed: On November 7, 2020, the plaintiffs filed a notice of appeal with the United States Court of Appeals for the Ninth Circuit (Ninth Circuit).
−Removed: A hearing on the appeal is scheduled for November 16, 2021.
+Added: On January 15, 2020, we filed a motion for judgment on the pleadings, which the court denied on February 3, 2022.
+Added: On May 23, 2022, the plaintiffs filed a motion for class certification, and a hearing on the motion was held on October 19, 2022.
+Added: The court has not yet ruled on the motion.
We believe the plaintiffs’ claims are without merit.
Consumer Class Action Lawsuits:
−Removed: Since January 18, 2017, a number of consumer class action complaints have been filed against us in the United States District Courts for the Southern and Northern Districts of California, each on behalf of a putative class of purchasers of cellular phones and other cellular devices.
+Added: Beginning in January 2017, a number of consumer class action complaints were filed against us in the United States District Courts for the Southern and Northern Districts of California, each on behalf of a putative class of purchasers of cellular phones and other cellular devices.
In April 2017, the Judicial Panel on Multidistrict Litigation transferred the cases that had been filed in the Southern District of California to the Northern District of California.
On July 11, 2017, the plaintiffs filed a consolidated amended complaint alleging that we violated California and federal antitrust and unfair competition laws by, among other things, refusing to license standard-essential patents to our competitors, conditioning the supply of certain of our baseband chipsets on the purchaser first agreeing to license our entire patent portfolio, entering into exclusive deals with companies, including Apple Inc., and charging unreasonably high royalties that do not comply with our commitments to standard setting organizations.
−Removed: The complaint seeks unspecified damages and disgorgement and/or restitution, as well as an order that we be enjoined from further unlawful conduct.
−Removed: On August 11, 2017, we filed a motion to dismiss the consolidated amended complaint.
−Removed: On November 10, 2017, the court denied our motion, except to the extent that certain claims seek damages under the Sherman Antitrust Act.
+Added: The complaint sought unspecified damages and disgorgement and/or restitution, as well as an order that we be enjoined from further unlawful conduct.
On July 5, 2018, the plaintiffs filed a motion for class certification, and on September 27, 2018, the court granted that motion.
−Removed: On January 23, 2019, the Ninth Circuit granted us permission to appeal the court’s class certification order, and on January 24, 2019, the court stayed the case pending our appeal.
−Removed: On December 2, 2019, a hearing on our appeal of the class certification order was held before the Ninth Circuit.
−Removed: On September 29, 2021, the Ninth Circuit vacated the district court’s class certification order, ruling that the court had failed to correctly assess the propriety of applying California law to a nationwide class.
+Added: We appealed the district court’s class certification order to the United States Court of Appeals for the Ninth Circuit (Ninth Circuit), and on September 29, 2021, the Ninth Circuit vacated the class certification order, ruling that the district court had failed to correctly assess the propriety of applying California law to a nationwide class.
The Ninth Circuit remanded the case to the district court and instructed the court to consider the effect of United States Federal Trade Commission (FTC) v.
QUALCOMM Incorporated (which the Ninth Circuit decided in favor of Qualcomm in August 2020) on this case.
+Added: On June 10, 2022, the plaintiffs filed an amended complaint, limiting the proposed class to California residents rather than a nationwide class, and on August 1, 2022, we filed a motion to dismiss the amended complaint.
+Added: A hearing on our motion is scheduled for November 15, 2022.
We believe the plaintiffs’ claims are without merit.
−Removed: Since November 2017, several other consumer class action complaints have been filed against us in Canada (in the Ontario Superior Court of Justice, the Supreme Court of British Columbia and the Quebec Superior Court), Israel (in the Haifa District Court) and the United Kingdom (in the Competition Appeal Tribunal), each on behalf of a putative class of purchasers of cellular phones and other cellular devices, alleging violations of certain of those countries’ competition and consumer protection laws.
+Added: Since November 2017, several other consumer class action complaints have been filed against us in Canada (in the Supreme Court of British Columbia and the Quebec Superior Court), Israel (in the Haifa District Court) and the United Kingdom (in the Competition Appeal Tribunal), each on behalf of a putative class of purchasers of cellular phones and other cellular devices, alleging violations of certain of those countries’ competition and consumer protection laws.
The claims in these complaints are similar to those in the U.S.
6 unchanged sentences
On August 21, 2014, ParkerVision amended the complaint, alleging that we infringed 11 ParkerVision patents and sought damages and injunctive and other relief.
−Removed: ParkerVision has subsequently reduced the number of patents asserted to three.
+Added: ParkerVision subsequently reduced the number of patents asserted to three.
The asserted patents are now expired, and injunctive relief is no longer available.
ParkerVision continues to seek damages related to the sale of many of our radio frequency (RF) products sold between 2008 and 2018.
−Removed: On March 26, 2021, the court issued an order stating that trial is extremely unlikely to occur before November or December 2021, if then.
−Removed: We believe that ParkerVision’s claims are without merit.
−Removed: Korea Fair Trade Commission (KFTC) Investigation (2015):
−Removed: On March 17, 2015, the KFTC notified us that it was conducting an investigation of us relating to the Korean Monopoly Regulation and Fair Trade Act (MRFTA).
+Added: On March 23, 2022, the court entered judgment in our favor on all claims and closed the case.
+Added: On April 20, 2022, ParkerVision filed a notice of appeal to the United States Court of Appeals for the Federal Circuit.
+Added: We believe ParkerVision’s claims are without merit.
QUALCOMM Incorporated:
+Added: On August 31, 2022, Arm Ltd.
+Added: (ARM) filed a complaint against us in the United States District Court for the District of Delaware.
+Added: Our subsidiaries, Qualcomm Technologies, Inc.
+Added: and NuVia, Inc.
+Added: (Nuvia), are also named in the complaint.
+Added: The complaint alleges that following our acquisition of Nuvia, we and Nuvia breached Nuvia’s Architecture License Agreement with ARM (the Nuvia ALA) by failing to comply with the termination obligations under the Nuvia ALA.
+Added: The complaint seeks specific performance, including that we cease all use of and destroy any technology that was developed under the Nuvia ALA, including processor core technology.
+Added: ARM also contends that we violated the Lanham Act through trademark infringement and false designation of origin through unauthorized use of ARM’s
+Added: QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: 27, 2016, the KFTC announced that it had reached a decision in the investigation, finding that we violated provisions of the MRFTA.
+Added: trademarks and seeks associated injunctive and declaratory relief.
+Added: ARM further seeks exemplary or punitive damages, costs, expenses and reasonable attorney’s fees, and equitable relief addressing any infringement occurring after entry of judgment.
+Added: We believe ARM’s claims are without merit.
+Added: On September 30, 2022, we filed our Answer and Counterclaim in response to ARM’s complaint denying ARM’s claims.
+Added: Our counterclaim seeks a declaratory judgment that we did not breach the Nuvia ALA or the Technology License Agreement between Nuvia and ARM and that, following the acquisition of Nuvia, our architected cores (including all further developments, iterations or instantiations of the technology we acquired from Nuvia), server System-on-Chip (SoC) and compute SoC are fully licensed under our existing Architecture License Agreement and Technology License Agreement with ARM (the ARM-Qualcomm Agreements).
+Added: We further seek an order enjoining ARM from making any claim that our products are not licensed under the ARM-Qualcomm Agreements, are not ARM-compliant or that we are prohibited from using ARM’s marks in the marketing of any such products.
+Added: On October 26, 2022, we filed an Amended Counterclaim seeking additional declaratory relief that certain statements ARM is making in the marketplace concerning our rights under the ARM-Qualcomm Agreements are false, and that ARM has no right to prevent us from shipping our products, which are validly licensed.
+Added: Korea Fair Trade Commission (KFTC) Investigation (2015):
+Added: On March 17, 2015, the KFTC notified us that it was conducting an investigation of us relating to the Korean Monopoly Regulation and Fair Trade Act (MRFTA).
+Added: On December 27, 2016, the KFTC announced that it had reached a decision in the investigation, finding that we violated provisions of the MRFTA.
On January 22, 2017, we received the KFTC’s formal written decision, which found that the following conducts violate the MRFTA:
21 unchanged sentences
Both we and the KFTC have filed briefs on the merits.
−Removed: The Korea Supreme Court has not yet ruled on our appeal or that of the KFTC.
+Added: T he Korea Supreme Court has not yet ruled on our appeal or that of the KFTC.
We believe that our business practices do not violate the MRFTA.
1 unchanged sentence
On June 8, 2020, the KFTC informed us that it was conducting an investigation of us relating to the MRFTA.
−Removed: The KFTC has not provided a formal notice on the scope of its investigation, but we believe it concerns our business practices in connection with our sale of radio frequency front-end (RFFE) components.
+Added: The KFTC has not provided a formal notice on the scope of its investigation, but we believe it concerns our business practices in connection with our sale of RFFE components.
We continue to cooperate with the KFTC as it conducts its investigation.
10 unchanged sentences
We believe that our business practices do not violate the European Union (EU) competition rules.
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In the third quarter of fiscal 2019, we recorded a charge of $ 275 million to other expenses related to this EC fine.
We provided a financial guarantee in the first quarter of fiscal 2020 to satisfy the obligation in lieu of cash payment while we appeal the EC’s decision.
−Removed: The fine is accruing interest at a rate of 1.50 % per annum while it is outstanding.
−Removed: In the fourth quarter of fiscal 2019, we designated the liability as a hedge of our net investment in certain foreign subsidiaries, with gains and losses recorded in accumulated other comprehensive income as a component of the foreign currency translation adjustment.
−Removed: At September 26, 2021, the liability, including related foreign currency losses and accrued interest (which, to the extent they were not related to the net investment hedge, were recorded in investment and other income, net), was $ 292 million and included in other current liabilities.
+Added: The fine is accruing interest at a rate of 1.50 % per annum while it is outstanding and included in other current liabilities.
European Commission (EC) Investigation:
4 unchanged sentences
From May 4, 2021 to May 6, 2021, a hearing on our appeal was held before the court.
−Removed: The court has not yet issued a ruling.
−Removed: We believe that our business practices do not violate the EU competition rules.
−Removed: QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: On June 15, 2022, the court issued a ruling annulling the EC’s decision in its entirety.
+Added: The deadline for the EC to appeal the General Court’s decision to the European Court of Justice expired in August 2022.
+Added: Consequently, the case is now over.
In the first quarter of fiscal 2018, we recorded a charge of $ 1.2 billion to other expenses related to this EC fine.
−Removed: We provided financial guarantees in the third quarter of fiscal 2018 to satisfy the obligation in lieu of cash payment while we appeal the EC’s decision.
−Removed: The fine is accruing interest at a rate of 1.50 % per annum while it is outstanding.
−Removed: In the first quarter of fiscal 2019, we designated the liability as a hedge of our net investment in certain foreign subsidiaries, with gains and losses recorded in accumulated other comprehensive income as a component of the foreign currency translation adjustment.
−Removed: At September 26, 2021, the liability, including related foreign currency gains and accrued interest (which, to the extent they were not related to the net investment hedge, were recorded in investment and other income, net), was $ 1.2 billion and included in other current liabilities.
+Added: We provided financial guarantees in the third quarter of fiscal 2018 to satisfy the obligation in lieu of cash payment while we appealed the EC’s decision.
+Added: The fine accrued interest at a rate of 1.50 % per annum while it was outstanding.
+Added: In the first quarter of fiscal 2019, we designated the liability as a hedge of our net investment in certain foreign subsidiaries, with gains and losses recorded in accumulated other comprehensive income (loss) as a component of the foreign currency translation adjustment.
+Added: As a result of the General Court’s ruling, in the third quarter of fiscal 2022, we recorded a $ 1.1 billion benefit in other income and a $ 62 million reduction in interest expense resulting from the reversal of the accrued fine and the associated interest previously recorded.
Contingent Losses and Other Considerations:
We will continue to vigorously defend ourselves in the foregoing matters.
−Removed: However, litigation and investigations are inherently uncertain, and we face difficulties in evaluating or estimating likely outcomes or ranges of possible loss in antitrust and trade regulation investigations in particular.
−Removed: Other than with respect to the EC fines, we have no t recorded any accrual at September 26, 2021 for contingent losses associated with these matters based on our belief that losses, while reasonably possible, are not probable.
+Added: However, litigation and investigations are inherently uncertain, and we face difficulties in evaluating or estimating likely outcomes or ranges of possible loss, particularly in antitrust and trade regulation investigations.
+Added: Other than with respect to the EC fine related to the Icera Complaint to the European Commission, we have no t recorded any accrual at September 25, 2022 for contingent losses associated with these matters based on our belief that losses, while reasonably possible, are not probable.
Further, any possible amount or range of loss cannot be reasonably estimated at this time.
10 unchanged sentences
We have agreements with suppliers and other parties to purchase inventory, other goods and services and long-lived assets.
−Removed: During fiscal 2021, we entered into several multi-year capacity purchase commitments with certain suppliers of our integrated circuit products.
+Added: Such agreements include multi-year capacity purchase commitments with certain suppliers of our integrated circuit products.
+Added: Total advance payments related to multi-year capacity commitments recorded on the consolidated balance sheets at September 25, 2022 and September 26, 2021 were $ 3.8 billion and $ 1.7 billion, respectively, of which $ 701 million and $ 90 million were recorded in other current assets, respectively, and $ 3.1 billion and $ 1.6 billion were recorded in other assets, respectively.
Integrated circuit product inventory obligations represent purchase commitments (including those under multi-year capacity purchase commitments to the extent such minimum amounts are both fixed and determinable) for raw materials, semiconductor die, finished goods and manufacturing services, such as wafer bump, probe, assembly and final test.
3 unchanged sentences
We lease certain of our land, facilities and equipment under operating leases, with terms ranging from less than one year to 20 years, some of which include options to extend for up to 20 years.
−Removed: As of September 26, 2021 and September 27, 2020, the weighted-average remaining lease term for operating leases were 7 years and 6 years, respectively.
−Removed: Operating lease expense for fiscal 2021, 2020 and 2019 was $ 203 million, $ 181 million and $ 146 million, respectively.
−Removed: At September 26, 2021, other assets included $ 513 million of operating lease assets, with corresponding lease liabilities of $ 126 million recorded in other current liabilities and $ 428 million recorded in other liabilities .
−Removed: At September 27, 2020, other assets included $ 460 million of operating lease assets, with corresponding lease liabilities of $ 134 million recorded in other current liabilities and $ 371 million recorded in other liabilities.
+Added: At September 25, 2022 and September 26, 2021, the weighted-average remaining lease term for operating leases were eight years and seven years , respectively.
+Added: Operating lease expense for fiscal 2022, 2021 and 2020 was $ 207 million, $ 203 million and $ 181 million,
QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: respectively.
+Added: At September 25, 2022, other assets included $ 631 million of operating lease assets, with corresponding lease liabilities of $ 104 million recorded in other current liabilities and $ 573 million recorded in other liabilities .
+Added: At September 26, 2021, other assets included $ 513 million of operating lease assets, with corresponding lease liabilities of $ 126 million recorded in other current liabilities and $ 428 million recorded in other liabilities.
At September 25, 2022, future lease payments under our operating leases were as follows (in millions):
7 unchanged sentences
Our operating segments reflect the way our businesses and management/reporting structure are organized internally and the way our Chief Operating Decision Maker (CODM), who is our CEO, reviews financial information, makes operating decisions and assesses business performance.
−Removed: We also consider, among other items, the way budgets and forecasts are prepared and reviewed and the basis on which executive compensation is determined, as well as the similarity of activities within our operating segments, such as the nature of products, the level of shared products, technology and other resources, production processes and customer base.
+Added: We also consider, among other items, the way budgets and forecasts are prepared and reviewed and the basis on which executive compensation is determined, as well as the similarities and the level of centralized resource planning within our operating segments, such as the nature of products, the level of shared products, technology and other resources, production processes and customer base.
We conduct business primarily through our QCT semiconductor business and our QTL licensing business.
−Removed: QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including RFFE, for use in mobile devices, automotive systems for telematics, connectivity and digital cockpit and IoT including wireless networks, broadband gateway equipment, consumer electronic devices and industrial devices.
+Added: QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including RFFE, for use in mobile devices;
+Added: automotive systems for connectivity, digital cockpit and ADAS/AD;
+Added: and IoT including consumer electronic devices;
+Added: industrial devices;
+Added: and edge networking products.
QTL grants licenses or otherwise provides rights to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
−Removed: Our QSI reportable segment makes strategic investments.
−Removed: We also have nonreportable segments, including QGOV and our cloud AI inference processing initiative and other technology and service initiatives.
+Added: Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments.
+Added: We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our cloud AI inference processing initiative.
Our CODM allocates resources to and evaluates the performance of our segments based on revenues and earnings (loss) before income taxes (EBT).
2 unchanged sentences
Unallocated income and charges include certain interest expense, certain net investment income, certain share-based compensation, gains and losses on our deferred compensation plan liabilities and related assets and certain research and development expenses, certain selling, general and administrative expenses and other expenses or income that were deemed to be not directly related to the businesses of the segments.
−Removed: Additionally, unallocated charges include recognition of the step-up of inventories and property, plant and equipment to fair value, amortization of certain intangible assets and certain other acquisition-related charges, third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, goodwill and long-lived asset impairment charges and awards, settlements and/or damages arising from legal or regulatory matters.
+Added: Additionally, unallocated charges include recognition of the step-up of inventories and property, plant and equipment to fair value, amortization of certain intangible assets and certain other acquisition-related charges, third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, asset impairment charges and awards, settlements and/or damages arising from legal or regulatory matters.
Our CODM does not evaluate our operating segments using discrete asset information.
5 unchanged sentences
QTL 6,358 6,320 5,028
−Removed: QSI 45 36 152
Reconciling items 134 182 1,974
15 unchanged sentences
China (including Hong Kong) $ 28,119 $ 22,512 $ 14,001
+Added: Vietnam 6,063 3,114 2,212
South Korea 3,164 2,368 2,964
United States 1,482 1,406 1,129
−Removed: Ireland 1,160 867 2,957
Other foreign 5,372 4,166 3,225
11 unchanged sentences
Unallocated selling, general and administrative expenses ( 609 ) ( 538 ) ( 401 )
−Removed: Unallocated other income (expenses) (Note 2) — 28 ( 414 )
+Added: Unallocated other income (Note 2) 1,059 — 28
Unallocated interest expense ( 490 ) ( 559 ) ( 599 )
−Removed: Unallocated investment and other income, net 166 105 243
+Added: Unallocated investment and other (expense) income, net ( 91 ) 166 105
Nonreportable segments ( 24 ) ( 58 ) ( 63 )
2 unchanged sentences
Unallocated revenues in fiscal 2021 were comprised of the release of a variable constraint against revenues not previously allocated to our segment results.
−Removed: Unallocated revenues in fiscal 2020 were comprised of licensing revenues from Huawei resulting from the settlement agreement signed in July 2020 and royalties for sales made in the March 2020 and June 2020 quarters under the new global patent license agreement signed in July 2020.
−Removed: Unallocated revenues in fiscal 2019 were comprised of licensing revenues resulting from the settlement with Apple and its contract manufacturers in April 2019.
−Removed: On March 16, 2021 (the Closing Date), we completed the acquisition of NuVia, Inc.
−Removed: (NUVIA) for $ 1.1 billion (net of cash acquired), substantially all of which was paid in cash.
−Removed: In connection with the acquisition, we assumed or replaced unvested NUVIA stock awards with Qualcomm stock awards with an estimated fair value of $ 258 million, for which $ 10 million was attributable to pre-acquisition services and included in the purchase price, and the remaining amount is recognized as compensation expense over the related post-acquisition requisite service period of up to four years .
−Removed: NUVIA has certain in-process technologies and is comprised of a CPU (central processing unit) and technology design team with expertise in high performance processors, SoC (system-on-chip) and power management for compute-intensive devices and applications.
+Added: Unallocated revenues in fiscal 2020 were comprised of licensing revenues from Huawei resulting from the settlement agreement signed in July 2020 and royalties for sales made in the March 2020 and June 2020 quarters under a new global patent license agreement signed in July 2020.
+Added: On March 16, 2021, we completed the acquisition of Nuvia for $ 1.1 billion (net of $ 174 million cash acquired), substantially all of which was paid in cash.
+Added: In connection with the acquisition, we assumed or replaced unvested Nuvia stock awards with Qualcomm stock awards with an estimated fair value of $ 258 million, which have post-acquisition requisite service periods of up to four years .
+Added: At the time of the acquisition, Nuvia had certain in-process technologies and was comprised of a CPU (central processing unit) and technology design team with expertise in high performance processors, SoC and power management for compute-intensive devices and applications.
Upon completion of development, Nuvia’s technologies are expected to be integrated into certain QCT products.
−Removed: The allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
+Added: We recorded $ 885 million of goodwill, which is not deductible for tax purposes and was allocated to our QCT segment for annual impairment testing purposes.
+Added: Goodwill is primarily attributable to assembled workforce and certain revenue and cost synergies expected to arise after the acquisition.
+Added: We also recorded a $ 247 million in-process research and development intangible asset related to a single project, which is expected to be completed in fiscal 2023 and, upon completion, will be amortized over its useful life, which is expected to be seven years .
+Added: Our results of operations for fiscal 2021 included the operating results of Nuvia since the acquisition date, the amounts of which were not material.
+Added: On October 4, 2021, we and SSW Partners, a New York-based investment partnership, entered into a definitive agreement to acquire Veoneer, Inc.
+Added: The transaction closed on April 1, 2022 (the Closing Date).
+Added: Total cash consideration paid in the transaction was $ 4.7 billion, consisting of (i) $ 4.6 billion paid in respect of Veoneer’s outstanding capital stock and equity awards and amounts paid to settle Veoneer’s convertible senior notes (which were converted at the election of the note holders and settled in cash in the third quarter of fiscal 2022) and (ii) a $ 110 million termination fee paid to Magna International Inc.
+Added: (Magna) in the first quarter of fiscal 2022.
+Added: We funded substantially all of the cash consideration payable in the transaction in exchange for (i) the Arriver business (which SSW transferred to us shortly after the Closing Date) and (ii) the right to receive a majority of the proceeds upon the sale of the Non-Arriver businesses by SSW Partners.
+Added: We intend to incorporate Arriver’s computer vision, drive policy and driver assistance technologies into our Snapdragon automotive platform to deliver an integrated software SoC ADAS platform for automakers and Tier-1 automotive suppliers.
+Added: SSW Partners retained Veoneer’s Tier-1 automotive supplier businesses, primarily consisting of the Active Safety and Restraint Control Systems businesses (the Non-Arriver businesses), which it intends to sell in one or more transactions.
+Added: We have agreed to provide certain funding of approximately $ 300 million to the Non-Arriver businesses while SSW Partners seeks a buyer(s), of which approximately $ 150 million of funding remained available to the Non-Arriver businesses at September 25, 2022.
+Added: Such amounts, along with cash retained in the Non-Arriver business, are expected to be used to fund working and other near-term capital needs, as well as certain costs incurred in connection with the close of the acquisition.
+Added: Although we do not own or operate the Non-Arriver businesses, we have determined that we are the primary beneficiary, within the meaning of the Financial Accounting Standards Board (FASB) accounting guidance related to consolidation (ASC 810), of these businesses under the variable interest model.
+Added: Factors considered in reaching this conclusion included, among others:
+Added: (i) our involvement in the design of and our funding of substantially all of the total cash consideration payable in the
+Added: QUALCOMM Incorporated
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: transaction and (ii) our obligations to absorb losses and rights to receive returns from the Non-Arriver businesses.
+Added: We expect that SSW Partners will complete the sale of the Non-Arriver businesses within fiscal 2023, subject to any required regulatory approvals and other closing conditions being met.
+Added: Accordingly, the assets and liabilities of the Non-Arriver businesses are consolidated and presented as held for sale on our balance sheet, and the operating results are presented as discontinued operations.
+Added: Our accounting purchase price was approximately $ 4.3 billion, substantially all of which relates to our share of cash consideration at close for the outstanding common shares of Veoneer and the Magna termination fee and excludes Veoneer’s convertible senior notes that are reflected as an assumed liability.
+Added: We have finalized the purchase price allocation, except for certain tax matters.
+Added: Accordingly, the preliminary purchase price allocation shown below could change during the remainder of the measurement period (which will not exceed 12 months from the Closing Date).
+Added: The preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values was as follows (in millions):
+Added: Current held for sale assets, net of costs to sell (1) 626
+Added: Completed technology-based intangible assets 349
In-process research and development (IPR&D) 298
+Added: Goodwill 2,789
+Added: Noncurrent held for sale assets (1) 1,186
Other assets 333
Total assets 5,611
−Removed: Liabilities ( 68 )
+Added: Current held for sale liabilities (1) ( 677 )
+Added: Convertible senior notes ( 352 )
+Added: Noncurrent held for sale liabilities (1) ( 128 )
+Added: Other liabilities ( 203 )
+Added: Total liabilities ( 1,360 )
Net assets acquired $ 4,251
−Removed: Goodwill recognized in this transaction is not deductible for tax purposes and was allocated to our QCT segment for annual impairment testing purposes.
−Removed: Goodwill is primarily attributable to assembled workforce and certain revenue and cost synergies expected to arise after the acquisition.
−Removed: IPR&D is related to a single project, which is expected to be completed in fiscal 2023 and, upon completion, will be amortized over its useful life, which is expected to be seven years .
−Removed: The estimated fair value of the IPR&D asset acquired was determined using an income approach based on significant inputs that were not observable.
−Removed: Our results of operations for fiscal 2021 included the operating results of NUVIA since the Closing Date, the amounts of which were not material.
+Added: (1) Held for sale assets and liabilities relate to the Non-Arriver businesses and were measured at fair value less costs to sell (including SSW Partners’ estimated return with respect to the sale proceeds of the Non-Arriver businesses), which was estimated using a market approach based on significant inputs that were not observable.
+Added: In the fourth quarter of fiscal 2022, we finalized and adjusted the valuation of the Non-Arriver businesses by $ 229 million and recorded an offsetting adjustment to decrease goodwill for this amount.
+Added: The Non-Arriver businesses’ assets are not available to be used to settle our obligations, and the Non-Arriver businesses’ creditors do not have recourse to us.
+Added: SSW Partners owns and operates the Non-Arriver businesses, and its funding of the purchase price for Veoneer was recorded as a component of held for sale liabilities.
+Added: The underlying classes of assets and liabilities held for sale have not been presented because such amounts are not material.
+Added: Goodwill related to this transaction was allocated to our QCT segment, and $ 471 million of which is expected to be deductible for tax purposes.
+Added: Goodwill is primarily attributable to assembled workforce and certain synergies expected to arise after the acquisition.
+Added: Completed technology-based intangible assets are being amortized on a straight-line basis over the weighted-average useful life of nine years .
+Added: IPR&D relates to a single project that is expected to be completed in fiscal 2025.
+Added: Upon completion, we expect the IPR&D to be amortized over its useful life of seven years .
+Added: We valued the completed technology and IPR&D using an income approach based on significant unobservable inputs.
+Added: Since the Closing Date, the operating results of the Arriver and Non-Arriver businesses were initially reported on a one quarter lag.
+Added: During the fourth quarter of fiscal 2022, we eliminated the one-quarter reporting lag previously used to consolidate the Arriver business to provide contemporaneous reporting within our consolidated financial statements, which we believe is preferable.
+Added: The effect of this change was not material to our consolidated financial statements, and the impact of eliminating the one quarter reporting lag has been included in our operating results in the fourth quarter of fiscal 2022.
+Added: The Non-Arriver businesses are presented as discontinued operations and remain on a one quarter reporting lag.
Pro forma results of operations have not been presented because the effects of this acquisition were not material to our consolidated results of operations.
+Added: The cash flows generated from (used by) the Non-Arriver businesses are reflected as discontinued operations and are classified as operating, investing and financing activities in the consolidated statements of cash flows.
+Added: Investing and financing activities from discontinued operations reported in fiscal 2022 were not material.
+Added: During fiscal 2022, we acquired eight other businesses for a total accounting purchase price of $ 792 million.
+Added: We recognized $ 202 million of intangible assets (which primarily relate to completed technology) that will be amortized on a straight-line basis over a weighted-average useful life of six years .
+Added: Substantially all of the goodwill recognized in these transactions of $ 598 million was allocated to our QCT segment.
QUALCOMM Incorporated
17 unchanged sentences
Marketable Securities
−Removed: Our marketable securities were comprised as follows (in millions):
−Removed: Current Noncurrent (1)
−Removed: September 26,
−Removed: 2021 September 27,
+Added: Our marketable securities were all classified as current and were comprised as follows (in millions):
September 25,
2 unchanged sentences
Corporate bonds and notes $ 3,330 $ 4,459
−Removed: Mortgage- and asset-backed and auction rate securities 147 66 — 35
+Added: Mortgage- and asset-backed securities 99 147
Treasury securities and government-related securities 16 10
1 unchanged sentence
Equity securities
−Removed: Time deposit (2) — 30 — —
Total marketable securities $ 3,609 $ 5,298
−Removed: (1) Noncurrent marketable securities were included in other assets.
−Removed: (2) At September 27, 2020, marketable securities also included a time deposit with an original maturity of greater than 90 days .
The contractual maturities of available-for-sale debt securities were as follows (in millions):
3 unchanged sentences
One to five years 2,352
−Removed: Five to ten years 9
No single maturity date 99
2 unchanged sentences
QUALCOMM Incorporated
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: Subsequent Events
−Removed: In October 2021, we and SSW Partners, a New York-based investment partnership, entered into a definitive agreement (the Merger Agreement) to acquire Veoneer, Inc.
−Removed: (Veoneer) for $ 37.00 per share in cash, which values the estimated total cash consideration to be paid to Veoneer’s shareholders, inclusive of amounts expected to be paid at closing for Veoneer’s outstanding equity awards and convertible senior notes due 2024, at approximately $ 4.5 billion.
−Removed: At closing, SSW Partners will acquire all of the outstanding capital stock of Veoneer, shortly after which it will sell Veoneer’s Arriver business to Qualcomm and retain Veoneer’s Tier-1 automotive supplier businesses.
−Removed: Following close of the Arriver business sale, we intend to incorporate Arriver’s computer vision, drive policy and driver assistance technologies into our Snapdragon automotive platform to deliver an open and competitive ADAS (advanced driver assistance systems) platform for automakers and Tier-1 automotive suppliers.
−Removed: The acquisition is subject to a number of conditions, including receipt of United States and other regulatory approvals and the approval of Veoneer’s shareholders, and is not required to be completed by Qualcomm and SSW Partners prior to April 4, 2022.
−Removed: Subject to the satisfaction of these conditions, the acquisition is expected to close in 2022.
−Removed: We will fund substantially all of the cash consideration that SSW Partners will pay to Veoneer’s shareholders in exchange for (i) our right to acquire, and SSW Partners’ obligation to sell to us, Veoneer’s Arriver business and (ii) our right to receive a portion of the proceeds upon the sale of Veoneer’s Tier-1 automotive supplier businesses by SSW Partners.
−Removed: In addition, we will provide a loan facility (or guarantee amounts provided by a third party) that provides financing to Veoneer to support the Arriver business, to the extent requested by Veoneer in the event that the acquisition has not closed, for the quarter commencing April 1, 2022 and each of the two subsequent quarters, of $ 120 million per quarter (up to $ 360 million in the aggregate), which amounts may be forgiven in certain circumstances in which the Merger Agreement is terminated.
−Removed: An additional $ 120 million for the first quarter of calendar 2023 may be provided under the loan facility if the final outside date, as defined in the Merger Agreement is extended to April 4, 2023.
−Removed: In accordance with the Merger Agreement, we paid to Magna International Inc.
−Removed: (Magna) a termination fee of $ 110 million in October 2021 on behalf of Veoneer in connection with the termination of the previously announced agreement and plan of merger, dated as of July 22, 2021, by and among Magna and Veoneer.
−Removed: QUALCOMM Incorporated
VALUATION AND QUALIFYING ACCOUNTS
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.