Composition of Certain Financial Statement Items

6 Months Ended

Mar. 30, 2025

Condensed Financial Information Disclosure [Abstract]

Composition of Certain Financial Statement Items

Note 2. Composition of Certain Financial Statement Items

Inventories (in millions)
	March 30, 2025		September 29, 2024
Raw materials	$	298	$	340
Work-in-process	3,750		3,497
Finished goods	2,148		2,586
	$	6,196	$	6,423

We have multi-year capacity purchase commitments with certain suppliers of our integrated circuit products. Total advance payments related to multi-year capacity purchase commitments recorded on our condensed consolidated balance sheets at March 30, 2025 and September 29, 2024 were $2.7 billion and $3.0 billion, respectively, of which $1.6 billion and $765 million were recorded in other current assets, respectively, and $1.1 billion and $2.2 billion were recorded in other assets, respectively.

Revenues. We disaggregate our revenues by segment (Note 6), by products and services (as presented on our condensed consolidated statements of operations), and for our QCT (Qualcomm CDMA Technologies) segment, by revenue stream, which is based on the industry and application in which our products are sold (as presented below). In certain cases, the determination of QCT revenues by industry and application requires the use of certain assumptions. Substantially all of QCT’s revenues consist of equipment revenues that are recognized at a point in time, and substantially all of QTL’s (Qualcomm Technology Licensing) revenues represent licensing revenues that are recognized over time and are principally from royalties generated through our licensees’ sales of mobile handsets.

QCT revenue streams were as follows (in millions):

	Three Months Ended				Six Months Ended
	March 30, 2025		March 24, 2024		March 30, 2025		March 24, 2024
Handsets (1)	$	6,929	$	6,180	$	14,503	$	12,867
Automotive (2)	959		603		1,920		1,201
IoT (internet of things) (3)	1,581		1,243		3,130		2,381
Total QCT revenues	$	9,469	$	8,026	$	19,553	$	16,449

(1) Includes revenues from products sold for use in mobile handsets.

(2) Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and advanced driver assistance systems (ADAS) and automated driving (AD).

(3) Primarily includes products sold for use in the following industries and applications: consumer (including personal computers (PCs), tablets, voice and music and extended reality (XR)), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, tracking and logistics and utilities).

Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods generally include certain sales-based royalty revenues related to system software, certain amounts related to customer incentives and licensing revenues recognized related to devices sold in prior periods (including revenues resulting from certain settlements and adjustments to prior period royalty estimates, which include the impact of the reporting by our licensees of actual royalties due) and were as follows (in millions):

	Three Months Ended				Six Months Ended
	March 30, 2025		March 24, 2024		March 30, 2025		March 24, 2024
Revenues recognized from previously satisfied performance obligations	$	285	$	55	$	526	$	206

Remaining performance obligations, which are primarily included in unearned revenues (as presented on our condensed consolidated balance sheets), 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. Our patent license agreements with key OEMs are generally long-term, with remaining terms expiring between fiscal 2027 and 2031.

Concentrations. A significant portion of our revenues are concentrated with a small number of customers/licensees of our QCT and QTL segments. The comparability of customer/licensee concentrations for the periods presented are impacted by the timing of customer/licensee 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:

	Three Months Ended				Six Months Ended
	March 30, 2025		March 24, 2024		March 30, 2025		March 24, 2024
Customer/licensee (x)	27	%	24	%	21	%	21	%
Customer/licensee (y)	18		19		21		22
Customer/licensee (z)	10		14		12		14

Investment and Other Income, Net (in millions)
	Three Months Ended				Six Months Ended
	March 30, 2025		March 24, 2024		March 30, 2025		March 24, 2024
Interest and dividend income	$	167	$	160	$	336	$	312
Net gains (losses) on marketable securities	18		(3)		37		8
Net (losses) gains on other investments	(5)		155		26		159
Net (losses) gains on deferred compensation plan assets	(34)		62		(20)		126
Impairment losses on other investments	(16)		(50)		(41)		(62)
Other	18		6		53		(1)
	$	148	$	330	$	391	$	542

Discontinued Operations. On June 1, 2023, SSW Partners completed the sale of Veoneer’s Active Safety business to Magna International Inc. for net cash proceeds of $1.5 billion. On March 1, 2024, SSW Partners completed the sale of Veoneer’s Restraint Control Systems business (collectively with the Active Safety business, the Non-Arriver businesses) to American Industrial Partners Capital Fund VII. Through the date of disposition by SSW Partners, the results of operations and cash flows of Veoneer’s Non-Arriver businesses are presented as discontinued operations. Cash flows from investing and financing activities from discontinued operations reported for the periods presented were not material.