Qualcomm Incorporated

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)

(Unaudited)

March 29,
2015

September 28,
2014

ASSETS

Current assets:

Cash and cash equivalents

$

5,492

$

7,907

Marketable securities

10,063

9,658

Accounts receivable, net

2,058

2,412

Inventories

1,861

1,458

Deferred tax assets

533

577

Other current assets

733

401

Total current assets

20,740

22,413

Marketable securities

14,055

14,457

Deferred tax assets

1,049

1,174

Property, plant and equipment, net

2,523

2,487

Goodwill

4,388

4,488

Other intangible assets, net

2,482

2,580

Other assets

1,936

975

Total assets

$

47,173

$

48,574

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Trade accounts payable

$

1,683

$

2,183

Payroll and other benefits related liabilities

744

802

Unearned revenues

778

785

Short-term debt

1,096

—

Other current liabilities

1,868

2,243

Total current liabilities

6,169

6,013

Unearned revenues

2,667

2,967

Other liabilities

503

428

Total liabilities

9,339

9,408

Stockholders' equity:

Qualcomm stockholders' equity:

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

—

—

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

4,956

7,736

Retained earnings

32,411

30,799

Accumulated other comprehensive income

472

634

Total Qualcomm stockholders' equity

37,839

39,169

Noncontrolling interests

(5)

(3)

Total stockholders' equity

37,834

39,166

$

47,173

$

48,574

Qualcomm Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

March 29,
2015

March 30,
2014

March 29,
2015

March 30,
2014

Revenues:

Equipment and services

$

4,403

$

4,229

$

9,619

$

8,881

Licensing

2,491

2,138

4,374

4,108

Total revenues

6,894

6,367

13,993

12,989

Costs and expenses:

Cost of equipment and services revenues

2,628

2,482

5,676

5,189

Research and development

1,375

1,356

2,726

2,683

Selling, general and administrative

545

539

1,112

1,162

Other

1,010

—

1,079

472

Total costs and expenses

5,558

4,377

10,593

9,506

Operating income

1,336

1,990

3,400

3,483

Investment income, net

203

282

437

546

Income from continuing operations before income taxes

1,539

2,272

3,837

4,029

Income tax expense

(487)

(314)

(814)

(626)

Income from continuing operations

1,052

1,958

3,023

3,403

Discontinued operations, net of income taxes

—

—

—

430

Net income

1,052

1,958

3,023

3,833

Net loss attributable to noncontrolling interests

1

1

2

2

Net income attributable to Qualcomm

$

1,053

$

1,959

$

3,025

$

3,835

Basic earnings per share attributable to Qualcomm:

Continuing operations

$

0.64

$

1.16

$

1.83

$

2.02

Discontinued operations

—

—

—

0.25

Net income

$

0.64

$

1.16

$

1.83

$

2.27

Diluted earnings per share attributable to Qualcomm:

Continuing operations

$

0.63

$

1.14

$

1.80

$

1.98

Discontinued operations

—

—

—

0.25

Net income

$

0.63

$

1.14

$

1.80

$

2.23

Shares used in per share calculations:

Basic

1,645

1,688

1,653

1,688

Diluted

1,667

1,719

1,677

1,721

Dividends per share announced

$

0.42

$

0.35

$

0.84

$

0.70

Qualcomm Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Three Months Ended

Six Months Ended

March 29,
2015

March 30,
2014

March 29,
2015

March 30,
2014

Operating Activities:

Net income

$

1,052

$

1,958

$

3,023

$

3,833

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

  Depreciation and amortization expense

304

289

591

561

  Gain on sale of discontinued operations

—

—

—

(665)

  Long-lived asset and goodwill impairment charges

63

19

138

479

  Income tax provision in excess of income tax payments

80

10

73

268

  Non-cash portion of share-based compensation expense

249

251

522

532

  Incremental tax benefits from share-based compensation

(30)

(70)

(78)

(169)

  Net realized gains on marketable securities and other investments

(111)

(243)

(277)

(388)

  Impairment losses on marketable securities and other investments

41

123

106

159

  Other items, net

1

(23)

(30)

(20)

Changes in assets and liabilities:

  Accounts receivable, net

165

(884)

338

(96)

  Inventories

(100)

(84)

(403)

153

  Other assets

(998)

58

(1,138)

127

  Trade accounts payable

(776)

183

(508)

35

  Payroll, benefits and other liabilities

(425)

240

(405)

(102)

  Unearned revenues

(173)

(13)

(246)

(112)

  Net cash (used) provided by operating activities

(658)

1,814

1,706

4,595

Investing Activities:

Capital expenditures

(196)

(587)

(449)

(797)

Purchases of available-for-sale securities

(2,792)

(5,772)

(8,758)

(7,827)

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

4,053

3,516

8,631

5,684

Purchases of trading securities

(393)

(1,029)

(695)

(1,814)

Proceeds from sales and maturities of trading securities

414

1,020

710

1,793

Proceeds from sale of discontinued operations, net of cash sold

—

—

—

788

Acquisitions and other investments, net of cash acquired

(80)

(32)

(178)

(347)

Other items, net

40

(19)

49

62

Net cash provided (used) by investing activities

1,046

(2,903)

(690)

(2,458)

Financing Activities:

Proceeds from issuance of common stock

301

512

417

953

Repurchases and retirements of common stock

(1,947)

(1,002)

(3,611)

(2,004)

Dividends paid

(689)

(589)

(1,385)

(1,179)

Proceeds from short-term debt

1,095

—

1,095

—

Incremental tax benefits from share-based compensation

30

70

78

169

Change in obligations under securities lending

—

142

(2)

123

Other items, net

(3)

(1)

(8)

(3)

Net cash used by financing activities

(1,213)

(868)

(3,416)

(1,941)

Changes in cash and cash equivalents held for sale

—

4

—

Effect of exchange rate changes on cash and cash equivalents

(8)

(2)

(15)

(1)

Net (decrease) increase in cash and cash equivalents

(833)

(1,955)

(2,415)

195

Cash and cash equivalents at beginning of period

6,325

8,292

7,907

6,142

Cash and cash equivalents at end of period

$

5,492

$

6,337

$

5,492

$

6,337