Stockholders' Equity

9 Months Ended

Jun. 26, 2011

Notes to Financial Statements [Abstract]

Note 7 - Stockholders' Equity

Note 7 — Stockholders’ Equity

Changes in stockholders’ equity for the nine months ended June 26, 2011 were as follows (in millions):

	QUALCOMM Stockholders’ Equity			Noncontrolling Interests			Total Stockholders’ Equity
Balance at September 26, 2010	$	20,858		$	—		$	20,858
Issuance of subsidiary shares to noncontrolling interests	16			40			56
Net income (loss)(1)	3,204			(10		)	3,194
Other comprehensive income	47			—			47
Common stock issued under employee benefit plans	2,355			—			2,355
Share-based compensation	587			—			587
Tax benefit from exercise of stock options	110			—			110
Dividends	(993		)	—			(993		)
Value of stock awards assumed in acquisition	106			—			106
Other	(19		)	—			(19		)
Balance at June 26, 2011	$	26,271		$	30		$	26,301

⁽¹⁾ Loss from discontinued operations, net of income taxes (Note 10), was attributable to QUALCOMM.

Noncontrolling Interests. In June 2010, the Company won a 20 MHz slot of Broadband Wireless Access (BWA) spectrum in four telecom circles in India as a result of the completion of the BWA spectrum auction. Assignment of licenses to operate wireless networks on this spectrum, with an initial license period of 20 years, is pending approval by the Indian government. At June 26, 2011 and September 26, 2010, the Company had a $1.1 billion advance payment included in noncurrent other assets related to this spectrum. The Company will amortize the spectrum licenses over the remaining license period commencing upon the commercial launch of wireless services in India, which is expected to occur within five years of the assignment date. The Company’s goal is to attract one or more operator partners into a venture (or ventures) for construction of an LTE network in compliance with the Indian government’s rollout requirement for the BWA spectrum and then to exit the venture(s). The manner and timing of such exit will be dependent upon a number of factors, such as market conditions and regulatory considerations, among others.

During the second quarter of fiscal 2011, in connection with the India BWA spectrum purchase, certain of the Company’s subsidiaries in India issued noncontrolling interests to two third-party Indian investors for $62 million, such that the Company now holds a 74% interest in each of those subsidiaries, the maximum interest permitted under applicable Indian Foreign Direct Investment regulations. In addition, the third parties representing the noncontrolling interests in the subsidiaries hold put rights that provide them with options to sell their ownership interests in the subsidiaries to QUALCOMM Incorporated or its nominee (subject to applicable regulatory approvals) after July 29, 2014, or earlier if certain events occur, at a price equal to their original capital contribution. The aggregate fair value of these put rights, which are accounted for as freestanding financial instruments classified in other liabilities, was $8 million at June 26, 2011.

Stock Repurchase Program. The Company did not repurchase any shares during the three and nine months ended June 26, 2011. During the three and nine months ended June 27, 2010, the Company repurchased and retired 32,388,000 and 76,259,000 shares of the Company’s common stock, respectively, for $1.2 billion and $2.9 billion, respectively. At June 26, 2011, approximately $1.7 billion remained authorized for repurchase under the Company’s stock repurchase program. The stock repurchase program has no expiration date.

Dividends. On March 8, 2011, the Company announced an increase in its quarterly cash dividend per share of common stock from $0.190 to $0.215, which is effective for dividends payable after March 25, 2011. On July 13, 2011, the Company announced a cash dividend of $0.215 per share on the Company’s common stock, payable on September 23, 2011 to stockholders of record as of August 26, 2011. During the nine months ended June 26, 2011 and June 27, 2010, dividends charged to retained earnings were as follows (in millions, except per share data):

	2011				2010
	Per Share		Total		Per Share		Total
First Quarter	$	0.190	$	314	$	0.170	$	284
Second Quarter	0.190		319		0.170		279
Third Quarter	0.215		360		0.190		309
	$	0.595	$	993	$	0.530	$	872