Qualcomm Inc (QCOM)
QUALCOMM Incorporated, a Delaware corporation, and its subsidiaries develop, design, manufacture, have manufactured on its behalf and market digital communications products and services. The Company is a leading developer and supplier of integrated circuits and system software based on CDMA (Code Division Multiple Access), OFDMA (Orthogonal Frequency Division Multiple Access) and other technologies for use in voice and data communications, networking, application processing, multimedia and global positioning system products to device and infrastructure manufacturers.
Common stock is traded on the NASDAQ Global Select Market under the symbol “QCOM.”
Qualcomm, Snapdragon, MSM, Adreno and Wireless Reach are trademarks of Qualcomm Incorporated, registered in the United States and other countries. MuLTEfire and Qualcomm Haven are trademarks of Qualcomm Incorporated. CSR is a trademark of Qualcomm Technologies International, Ltd., registered in the United States and other countries.
On August 13, 2015, the Company acquired CSR plc, which was renamed CSR Limited (CSR), for total cash consideration of $2.3 billion (net of $176 million of cash acquired). In addition, $28 million of third-party acquisition and integration services costs were included in selling, general and administrative expenses in fiscal 2015. CSR is an innovator in the development of multifunction semiconductor platforms and technologies for the automotive, consumer and voice and music categories. The acquisition complements the Company’s current offerings by adding products, channels and customers in the growth categories of the Internet of Things and automotive infotainment.
On November 25, 2013, the Company completed its sale of the North and Latin America operations of its Omnitracs division to a U.S.-based private equity firm for cash consideration of $788 million (net of cash sold). As a result, the Company recorded a gain in discontinued operations of $665 million ( $430 million net of income tax expense) during fiscal 2014.
Summary (from latest annual report 2015)
• Market Capital: $94,830,200,712 (last share price is $63.09. There were 1,503,094,004 shares of common stock outstanding as of November 2, 2015).
• Total stockholders’ equity: $31,421,000,000 down by $7,748,000,000 or -20% from 2014 (2014: $39,169,000,000) primarily due to stock repurchase program in amount of $11,246,000,000 (172,435,000 shares) according to accelerated share repurchase agreements (ASR Agreements) with two financial institutions under which the Company paid an aggregate of $5,000,000,000 upfront to the financial institutions and additionally the Company repurchased and retired 94,159,000 shares of common stock for $6,200,000,000. The decrease was partially offset thanks to increased of comprehensive income by $4,832,000,000.
• Current liabilities: $6,100,000,000 or 12% out of total liabilities and equity is up by $87,000,000 or 0% from 2014 (2014: $6,013,000,000). The issuance of unsecured commercial paper for $1,000,000,000 with a weighted-average interest rate of 0.19% and weighted-average remaining days to maturity of 38 days, was partially offset by decrease of trade accounts payable by $883,000,000.
• Non-current liabilities: $13,275,000,000 or 26% out of total liabilities and equity is up by $9,883,000,000 or 290% from 2014 (2014: $3,392,000,000) due to issuance of an aggregate principal amount of $10,000,000,000 of unsecured floating- and fixed-rate notes with maturity dates in 2018 through 2045 and effective interest rates between 0.43% and 4.74%. The proceeds from the notes of $9,969,000,000, net of underwriting discounts and offering expenses, were used to fund the ASR Agreements and are also being used for other general corporate purposes.
• Net sales: $25,281,000,000 down by $1,206,000,000 or 0% from 2014 (2014: $26,487,000,000) due to QCT segment (Qualcomm CDMA Technologies) primarily due to the effects of a shift in share among customers within the premium tier, which reduced sales of integrated Snapdragon processors and skewed product mix towards lower-margin modem chipsets in this tier, a decline in share at a large customer and the competitive environment in China.
• Net income: $5,271,000,000 down by $2,696,000,000 or -30% from 2014 (2014: $7,967,000,000). Despite decrease of net sales and the same level of selling, general and administrative expenses and research and development expenses, net income was affected by $975,000,000 fine imposed by the China National Development and Reform Commission (NDRC) for violation of China’s Anti-Monopoly Law (AML).
• Cash and cash equivalents: $7,560,000,000 down by $347,000,000 or 0% from 2014 (2014: $7,907,000,000).
o $5,506,000,000 provided by operating activities: decreased by -$3,381,000,000 or -40% compared to fiscal 2014 primarily due to decrease of net income by $2,696,000,000.
o -$3,572,000,000 used in investing activities: decreased by $1,933,000,000 or 120% compared to fiscal 2014 (-$1,639,000,000) primarily due to acquisition of CSR plc for $2,300,000,000.
o -$2,261,000,000 provided by (used in) financing activities: increased by $3,219,000,000 or 60% compared to fiscal 2014 (-$5,480,000,000) due to proceeds from short- and long-term debt ($14,020,000,000), partially offset by repurchases and retirements of common stock ($11,246,000,000).
Subsidiaries of Qualcomm Incorporated
1. Qualcomm Technologies, Inc. Delaware
2. Qualcomm Global Trading Pte. Ltd. Singapore
3. Qualcomm CDMA Technologies Asia-Pacific Pte. Ltd. Singapore
4. Qualcomm Asia Pacific Pte. Ltd. Singapore
5. Qualcomm Atheros, Inc. (3.2 billion dollars acquired in 2011) Delaware
6. Qualcomm Technologies International, Ltd. United Kingdom
Other acquisitions
1. HP patents (all of palm related patents ) worth 1 billion dollars
2, CSR ? as written above specializes in bluetooth technology , worth 2.5 billion dollars.
The names of other subsidiaries are omitted. Such subsidiaries would not, if considered in the aggregate as a single subsidiary, constitute a significant subsidiary within the meaning of Item 601(b)(21)(ii) of Regulation S-K.