($ in millions)

Non-GAAP

QSI

Share-Based Compensation

Acquisition- Related Items

GAAP

Third quarter fiscal 2012

$ 832

$ 1

$ 141

$ –

$ 974

As % of revenues

18%

21%

Third quarter fiscal 2011

$ 661

$ 1

$ 95

$ –

$ 757

As % of revenues

18%

21%

Year-over-year change ($)

26%

N/M

48%

N/M

29%

N/M – Not Meaningful

($ in millions)

Non-GAAP

QSI

Share-Based Compensation

Acquisition-Related Items

GAAP

Third quarter fiscal 2012

$ 423

$ 10

$ 104

$ 7

$ 544

As % of revenues

9%

12%

Third quarter fiscal 2011

$ 365

$ 8

$ 84

$ 18

$ 475

As % of revenues

10%

13%

Year-over-year change ($)

16%

N/M

24%

N/M

15%

N/M – Not Meaningful

Qualcomm’s Business Outlook Summary

FOURTH FISCAL QUARTER

Q4 FY11

Current Guidance

Results

Q4 FY12 Estimates

Revenues

$4.12B

$4.45B – $4.85B

Year-over-year change

increase 8% – 18%

Non-GAAP Diluted earnings per share (EPS)

$0.80

$0.78 – $0.84

Year-over-year change

decrease 3% – increase 5%

Diluted EPS attributable to QSI

($0.01)

$0.01

Diluted EPS attributable to share-based compensation

($0.12)

($0.13)

Diluted EPS attributable to acquisition-related items

($0.07)

($0.04)

Diluted EPS attributable to tax items

$0.02

n/a

GAAP Diluted EPS

$0.62

$0.62 – $0.68

Year-over-year change

even – increase 10%

Metrics

MSM chip shipments

127M

134M – 142M

Year-over-year change

increase 6% – 12%

Total reported device sales (1)

approx. $39.1B*

approx. $43.5B – $47.5B*

Year-over-year change

increase 11% – 21%

*Est. sales in June quarter, reported in September quarter

FISCAL YEAR

FY 2011

Prior Guidance

Current Guidance

Results

FY 2012 Estimates (2)

FY 2012 Estimates (2)

Revenues

$14.96B

$18.7B – $19.7B

$18.7B – $19.1B

Year-over-year change

increase 25% – 32%

increase 25% – 28%

Non-GAAP Diluted EPS

$3.20

$3.61 – $3.76

$3.61 – $3.67

Year-over-year change

increase 13% – 18%

increase 13% – 15%

Diluted EPS attributable to QSI

($0.23)

$0.39

$0.40

Diluted EPS attributable to share-based compensation

($0.37)

($0.46)

($0.47)

Diluted EPS attributable to acquisition-related items

($0.12)

($0.13)

($0.13)

Diluted EPS attributable to tax items

$0.04

n/a

n/a

GAAP Diluted EPS

$2.52

$3.41 – $3.56

$3.41 – $3.47

Year-over-year change

increase 35% – 41%

increase 35% – 38%

Metrics

Est. fiscal year* 3G/4G device average selling price range (1)

approx. $203 – $209

approx. $207 – $217

approx. $216 – $222

*Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters

CALENDAR YEAR Device Estimates (1)

Calendar 2011
Estimates

Prior Guidance
Calendar 2012
Estimates

Current Guidance
Calendar 2012
Estimates

Est. 3G/4G device shipments

March quarter

approx. 170M – 174M

not provided

approx. 206M – 211M

June quarter

approx. 187M – 191M

not provided

not provided

September quarter

approx. 191M – 195M

not provided

not provided

December quarter

approx. 239M – 243M

not provided

not provided

Est. calendar year range (approx.)

787M – 803M

885M – 945M

875M – 935M

Est. calendar year midpoint (approx.) (3)

795M

915M

905M

(1)

Total reported device sales is the sum of all reported sales in U.S. dollars (as reported to us by our licensees) of all licensed CDMA-based, OFDMA-based and multimode CDMA/OFDMA subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period (collectively, 3G/4G devices). The reported quarterly estimated ranges of average selling prices (ASPs) and unit shipments are determined based on the information as reported to us by our licensees during the relevant period and our own estimates of the selling prices and unit shipments for licensees that do not provide such information. Not all licensees report sales, selling prices and/or unit shipments the same way (e.g., some licensees report selling prices net of permitted deductions, such as transportation, insurance and packing costs, while other licensees report selling prices and then identify the amount of permitted deductions in their reports), and the way in which licensees report such information may change from time to time. Total reported device sales, estimated unit shipments and estimated ASPs for a particular period may include prior period activity that was not reported by the licensee until such particular period.

(2)

Fiscal 2012 guidance for QSI and GAAP includes $0.44 diluted earnings per share related to a $1.2 billion gain associated with the sale of substantially all of our 700 MHz spectrum, which was recognized in discontinued operations in the second quarter of fiscal 2012 and was excluded from Non-GAAP results.

(3)

The midpoints of the estimated calendar year ranges are identified for comparison purposes only and do not indicate a higher degree of confidence in the midpoints.

Sums may not equal totals due to rounding.

SEGMENTS

QCT

QTL

QWI

Non-GAAP Reconciling Items (1)

Non-GAAP (2)

QSI (2)

Share-Based
Compensation (2)

Acquisition- Related Items (2) (3)

Tax Items

GAAP

Q3 – FISCAL 2012

Revenues

$2,869

$1,593

$160

$4

$4,626

$ –

$ –

$ –

$ –

$4,626

Change from prior year

31%

27%

(2%)

N/M

28%

28%

Change from prior quarter

(6%)

(8%)

1%

N/M

(6%)

(6%)

Operating income (loss)

$1,718

($11)

($264)

($61)

$ –

$1,382

Change from prior year

23%

(10%)

(37%)

21%

24%

Change from prior quarter

(10%)

88%

(10%)

(7%)

(9%)

EBT

$472

$1,407

($6)

$49

$1,922

($16)

($264)

($61)

$ –

$1,581

Change from prior year

10%

29%

N/M

N/M

22%

47%

(37%)

21%

24%

Change from prior quarter

(21%)

(9%)

N/M

N/M

(10%)

84%

(10%)

(7%)

(9%)

EBT as % of revenues

16%

88%

N/M

N/M

42%

34%

Discontinued operations, net of tax (4)

$ –

($3)

$ –

$ –

$ –

($3)

Net income (loss)

$1,486

($11)

($210)

($58)

$ –

$1,207

Change from prior year

20%

N/M

(43%)

21%

N/M

17%

Change from prior quarter

(16%)

N/M

(14%)

(12%)

N/A

(46%)

Diluted EPS

$0.85

($0.01)

($0.12)

($0.03)

$ –

$0.69

Change from prior year

16%

N/M

(33%)

25%

N/M

13%

Change from prior quarter

(16%)

N/M

(9%)

0%

N/A

(46%)

Diluted shares used

1,758

1,758

1,758

1,758

1,758

1,758

Q2 – FISCAL 2012

Revenues

$3,059

$1,723

$159

$2

$4,943

$ –

$ –

$ –

$ –

$4,943

Operating income (loss)

1,900

(89)

(240)

(57)

–

1,514

EBT

$599

$1,540

($10)

$1

2,130

(99)

(240)

(57)

–

1,734

Discontinued operations, net of tax (4)

–

761

–

–

–

761

Net income (loss)

1,759

707

(184)

(52)

–

2,230

Diluted EPS

$1.01

$0.41

($0.11)

($0.03)

$ –

$1.28

Diluted shares used

1,743

1,743

1,743

1,743

1,743

1,743

Q3 – FISCAL 2011

Revenues

$2,194

$1,257

$164

$8

$3,623

$ –

$ –

$ –

$ –

$3,623

Operating income (loss)

1,393

(10)

(193)

(77)

–

1,113

EBT

$430

$1,092

($13)

$65

1,574

(30)

(193)

(77)

–

1,274

Discontinued operations, net of tax (4)

–

44

–

–

–

44

Net income (loss)

1,240

19

(147)

(73)

(4)

1,035

Diluted EPS

$0.73

$0.01

($0.09)

($0.04)

$0.00

$0.61

Diluted shares used

1,709

1,709

1,709

1,709

1,709

1,709

Q4 – FISCAL 2011

Revenues

$2,587

$1,361

$163

$6

$4,117

$ –

$ –

$ –

$ –

$4,117

Operating income (loss)

1,624

(9)

(252)

(125)

–

1,238

EBT

$569

$1,193

($5)

($20)

1,737

(34)

(252)

(125)

–

1,326

Discontinued operations, net of tax (4)

–

(5)

(1)

–

–

(6)

Net income (loss)

1,372

(22)

(214)

(120)

40

1,056

Diluted EPS

$0.80

($0.01)

($0.12)

($0.07)

$0.02

$0.62

Diluted shares used

1,716

1,716

1,716

1,716

1,716

1,716

SEGMENTS

QCT

QTL

QWI

Non-GAAP Reconciling Items (1)

Non-GAAP (2)

QSI (2)

Share-Based
Compensation (2)

Acquisition- Related Items (2) (3)

Tax Items

GAAP

9 MONTHS – FISCAL 2012

Revenues

$9,012

$4,755

$471

$13

$14,251

$ –

$ –

$ –

$ –

$14,251

Change from prior year

44%

17%

(4%)

N/M

31%

31%

Operating income (loss)

$5,489

($112)

($751)

($178)

$ –

$4,448

Change from prior year

23%

N/M

(34%)

N/M

17%

EBT

$1,810

$4,215

($15)

$105

$6,115

($149)

($751)

($178)

–

$5,037

Change from prior year

22%

18%

N/M

N/M

20%

(54%)

(34%)

N/M

15%

EBT as % of revenues

20%

89%

N/M

N/M

43%

35%

Discontinued operations, net of tax (4)

$ –

$754

$(1)

$ –

$ –

$753

Net income (loss)

$4,917

$675

($589)

($165)

$ –

$4,838

Change from prior year

22%

N/M

(44%)

N/M

N/M

51%

Diluted EPS

$2.83

$0.39

($0.34)

($0.09)

$ –

$2.78

Change from prior year

18%

N/M

(42%)

N/M

N/M

46%

Diluted shares used

1,740

1,740

1,740

1,740

1,740

1,740

9 MONTHS – FISCAL 2011

Revenues

$6,272

$4,061

$493

$14

$10,840

$ –

$ –

$ –

$ –

$10,840

Operating income (loss)

4,461

(28)

(561)

(83)

–

3,789

EBT

$1,487

$3,559

($147)

$205

5,104

(97)

(561)

(83)

–

4,363

Discontinued operations, net of tax (4)

–

(303)

(4)

–

–

(307)

Net income (loss)

4,036

(364)

(410)

(79)

21

3,204

Diluted EPS

$2.40

($0.22)

($0.24)

($0.05)

$0.01

$1.90

Diluted shares used

1,682

1,682

1,682

1,682

1,682

1,682

12 MONTHS – FISCAL 2011

Revenues

$8,859

$5,422

$656

$20

$14,957

$ –

$ –

$ –

$ –

$14,957

Operating income (loss)

6,084

(37)

(813)

(208)

–

5,026

EBT

$2,056

$4,753

($152)

$183

6,840

(132)

(813)

(208)

–

5,687

Discontinued operations, net of tax (4)

–

(308)

(5)

–

–

(313)

Net income (loss)

5,407

(385)

(624)

(200)

62

4,260

Diluted EPS

$3.20

($0.23)

($0.37)

($0.12)

$0.04

$2.52

Diluted shares used

1,691

1,691

1,691

1,691

1,691

1,691

(1)

Non-GAAP reconciling items related to revenues consist primarily of other nonreportable segment revenues less intersegment eliminations. Non-GAAP reconciling items related to earnings before taxes consist primarily of certain costs of equipment and services revenues, research and development expenses, sales and marketing expenses, other operating expenses and certain investment income or losses and interest expense that are not allocated to the segments for management reporting purposes; nonreportable segment results; and the elimination of intersegment profit.

(2)

At fiscal year end, the sum of the quarterly tax provisions (benefits) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and starting in fiscal 2012, this difference is allocated to tax provisions (benefits) among the columns. In interim quarters of prior years, it was included in QSI because variability in QSI results was considered the primary driver of the difference.

(3)

In addition to our historical practice of excluding acquired in-process research and development expenses, starting with acquisitions completed in the third quarter of fiscal 2011, Non-GAAP results also exclude other items related to acquisitions. During fiscal 2012, acquisition-related items consisted of amortization of certain intangible assets.

(4)

During fiscal 2011, we shut down the FLO TV business and network. The results of FLO TV are presented as discontinued operations.

N/M – Not Meaningful

N/A – Not Applicable

Sums may not equal totals due to rounding.

Qualcomm Incorporated

Supplemental Information for the Three Months Ended June 24, 2012

(Unaudited)

Acquisition-

Non-GAAP

Share-Based

Related

GAAP

Results

QSI

Compensation

Items (a)

Results

($ in millions, except per share data)

Cost of equipment and services revenues

$ 1,646

$ –

$ 19

$ 54

$ 1,719

R&D

832

1

141

–

974

SG&A

423

10

104

7

544

Other operating expenses

7

–

–

–

7

Operating income (loss)

1,718

(11)

(264)

(61)

1,382

Investment income (loss), net

$ 204

(b)

$ (5)

(c)

$ –

$ –

$ 199

Tax rate

23%

25%

20%

5%

24%

Net income (loss)

$ 1,486

$ (11)

$ (210)

$ (58)

$ 1,207

Diluted earnings (loss) per share (EPS)

$ 0.85

$ (0.01)

$ (0.12)

$ (0.03)

$ 0.69

Operating cash flow

$ 972

$ (21)

$ (29)

$ –

$ 922

Operating cash flow as % of revenues

21%

N/A

N/A

N/A

20%

Free cash flow(d)

$ 658

$ (106)

$ (29)

$ –

$ 523

Free cash flow as % of revenues

14%

N/A

N/A

N/A

11%

(a)

During the third quarter of fiscal 2012, acquisition-related items consisted of amortization of certain intangible assets.

(b)

Included $149 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of our strategic investments, $68 million in net realized gains on investments and $9 million in gains on derivatives, partially offset by $19 million in other-than-temporary losses on investments and $3 million in interest expense.

(c)

Included $15 million in interest expense, $2 million in other-than-temporary losses on investments and $1 million of equity in losses of investees, partially offset by $7 million in interest and dividend income related to cash, cash equivalents and marketable securities, $4 million in gains on derivatives and $2 million in net realized gains on investments.

(d)

Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the “Reconciliation of Non-GAAP Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and Other Supplemental Disclosures” for the three months ended June 24, 2012 included herein.

N/A – Not Applicable

Sums may not equal totals due to rounding.

Qualcomm Incorporated

Supplemental Information for the Nine Months Ended June 24, 2012

(Unaudited)

Acquisition-

Non-GAAP

Share-Based

Related

GAAP

Results

QSI

Compensation

Items (a)

Results

($ in millions, except per share data)

Cost of equipment and services revenues

$ 5,043

$ –

$ 55

$ 157

$ 5,255

R&D

2,401

6

394

–

2,801

SG&A

1,295

25

302

21

1,643

Other operating expenses

23

81

(b)

–

–

104

Operating income (loss)

5,489

(112)

(751)

(178)

4,448

Investment income (loss), net

$ 626

(c)

$ (37)

(d)

$ –

$ –

$ 589

Tax rate

20%

19%

22%

7%

20%

Net income (loss)

$ 4,917

$ 675

$ (589)

$ (165)

$ 4,838

Diluted earnings (loss) per share (EPS)

$ 2.83

$ 0.39

$ (0.34)

$ (0.09)

$ 2.78

Operating cash flow

$ 4,906

$ (190)

$ (127)

$ –

$ 4,589

Operating cash flow as % of revenues

34%

N/A

N/A

N/A

32%

Free cash flow(e)

$ 3,957

$ (275)

$ (127)

$ –

$ 3,555

Free cash flow as % of revenues

28%

N/A

N/A

N/A

25%

(a)

During fiscal 2012, acquisition-related items consisted of amortization of certain intangible assets.

(b)

QSI results for the first nine months of fiscal 2012 included $81 million in other operating expenses associated with a payment made to the Indian government in connection with the issuance of the BWA spectrum license.

(c)

Included $413 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of our strategic investments, $185 million in net realized gains on investments, $79 million in gains on derivatives (primarily due to gains from put options sold as part of our stock repurchase program) and $1 million of equity in earnings of investees, partially offset by $44 million in other-than-temporary losses on investments and $8 million in interest expense.

(d)

Included $66 million in interest expense, $20 million in other-than-temporary losses on investments and $6 million of equity in losses of investees, partially offset by $29 million in net realized gains on investments, $18 million in interest and dividend income related to cash, cash equivalents and marketable securities and $8 million in gains on derivatives.

(e)

Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the “Reconciliation of Non-GAAP Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and Other Supplemental Disclosures” for the nine months ended June 24, 2012, included herein.

N/A – Not Applicable

Sums may not equal totals due to rounding.

Qualcomm Incorporated

Reconciliation of Non-GAAP Free Cash Flows to

Net Cash Provided by Operating Activities (GAAP)

and Other Supplemental Disclosures

(In millions)

(Unaudited)

Three Months Ended June 24, 2012

Share-Based

Non-GAAP

QSI

Compensation

GAAP

Net cash provided (used) by operating activities

$ 972

$ (21)

$ (29)

(a)

$ 922

Less: capital expenditures

(314)

(85)

–

(399)

Free cash flow

$ 658

$ (106)

$ (29)

$ 523

Revenues

$ 4,626

$ –

$ –

$ 4,626

Free cash flow as % of revenues

14%

N/A

N/A

11%

Other supplemental cash disclosures:

Cash transfers from QSI (b)

$ 132

$ (132)

$ –

$ –

Cash transfers to QSI (c)

(137)

137

–

–

Net cash transfers

$ (5)

$ 5

$ –

$ –

Nine Months Ended June 24, 2012

Share-Based

Non-GAAP

QSI

Compensation

GAAP

Net cash provided (used) by operating activities

$ 4,906

$ (190)

$ (127)

(a)

$ 4,589

Less: capital expenditures

(949)

(85)

–

(1,034)

Free cash flow

$ 3,957

$ (275)

$ (127)

$ 3,555

Revenues

$ 14,251

$ –

$ –

$ 14,251

Free cash flow as % of revenues

28%

N/A

N/A

25%

Other supplemental cash disclosures:

Cash transfers from QSI (d)

$ 2,098

$ (2,098)

$ –

$ –

Cash transfers to QSI (c)

(355)

355

–

–

Net cash transfers

$ 1,743

$ (1,743)

$ –

$ –

Three Months Ended June 26, 2011

Share-Based

Non-GAAP

QSI

Compensation

GAAP

Net cash provided (used) by operating activities

$ 1,379

$ (80)

$ (35)

(a)

$ 1,264

Less: capital expenditures

(219)

–

–

(219)

Free cash flow

$ 1,160

$ (80)

$ (35)

$ 1,045

Nine Months Ended June 26, 2011

Share-Based

Non-GAAP

QSI

Compensation

GAAP

Net cash provided (used) by operating activities

$ 3,532

$ (285)

$ (167)

(a)

$ 3,080

Less: capital expenditures

(394)

(6)

–

(400)

Free cash flow

$ 3,138

$ (291)

$ (167)

$ 2,680

(a) Incremental tax benefits from stock options exercised during the period.

(b) Primarily cash from issuance of subsidiary shares to noncontrolling interest and borrowings under loans and debentures.

(c) Primarily funding for strategic debt and equity investments, other investing activities and QSI operating and capital expenditures.

(d) Primarily cash from sale of wireless spectrum, issuance of subsidiary shares to noncontrolling interest, borrowings under loans and debentures and sale of equity securities.

N/A – Not Applicable

Qualcomm Incorporated

Reconciliation of Non-GAAP Tax Rates to GAAP Tax Rates (a)

(in millions)

(Unaudited)

Three Months Ended June 24, 2012

Acquisition-

Non-GAAP

Share-Based

Related

GAAP

Results

QSI

Compensation

Items

Results

Income (loss) from continuing operations

before income taxes

$ 1,922

$ (16)

$ (264)

$ (61)

$ 1,581

Income tax (expense) benefit

(436)

4

54

3

(375)

Income (loss) from continuing operations

$ 1,486

$ (12)

$ (210)

$ (58)

$ 1,206

Tax rate

23%

25%

20%

5%

24%

Nine Months Ended June 24, 2012

Acquisition-

Non-GAAP

Share-Based

Related

GAAP

Results

QSI

Compensation

Items

Results

Income (loss) from continuing operations

before income taxes

$ 6,115

$ (149)

$ (751)

$ (178)

$ 5,037

Income tax (expense) benefit

(1,198)

29

163

13

(993)

Income (loss) from continuing operations

$ 4,917

$ (120)

$ (588)

$ (165)

$ 4,044

Tax rate

20%

19%

22%

7%

20%

(a)

At fiscal year end, the sum of the quarterly tax provisions (benefits) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and this difference is allocated to tax provisions (benefits) among the columns.

Sums may not equal totals due to rounding.

Qualcomm Incorporated

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)

(Unaudited)

ASSETS

June 24,

September 25,

2012

2011

Current assets:

Cash and cash equivalents

$ 3,412

$ 5,462

Marketable securities

9,983

6,190

Accounts receivable, net

1,250

993

Inventories

820

765

Deferred tax assets

512

537

Other current assets

400

346

Total current assets

16,377

14,293

Marketable securities

13,152

9,261

Deferred tax assets

1,677

1,703

Assets held for sale

–

746

Property, plant and equipment, net

2,888

2,414

Goodwill

3,843

3,432

Other intangible assets, net

3,845

3,099

Other assets

663

1,474

Total assets

$ 42,445

$ 36,422

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Trade accounts payable

$ 1,116

$ 969

Payroll and other benefits related liabilities

608

644

Unearned revenues

547

610

Loans and debentures

968

994

Other current liabilities

2,277

2,072

Total current liabilities

5,516

5,289

Unearned revenues

3,809

3,541

Other liabilities

515

620

Total liabilities

9,840

9,450

Stockholders’ equity:

Qualcomm stockholders’ equity:

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

–

–

Common stock, $0.0001 par value; 6,000 shares authorized; 1,712

and 1,681 shares issued and outstanding, respectively

–

–

Paid-in capital

12,096

10,394

Retained earnings

19,868

16,204

Accumulated other comprehensive income

620

353

Total Qualcomm stockholders’ equity

32,584

26,951

Noncontrolling interests

21

21

Total stockholders’ equity

32,605

26,972

Total liabilities and stockholders’ equity

$ 42,445

$ 36,422

Qualcomm Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

June 24,

June 26,

June 24,

June 26,

2012

2011

2012

2011

Revenues:

Equipment and services

$ 2,948

$ 2,297

$ 9,253

$ 6,550

Licensing

1,678

1,326

4,998

4,290

Total revenues

4,626

3,623

14,251

10,840

Operating expenses:

Cost of equipment and services revenues

1,719

1,278

5,255

3,380

Research and development

974

757

2,801

2,144

Selling, general and administrative

544

475

1,643

1,413

Other

7

–

104

114

Total operating expenses

3,244

2,510

9,803

7,051

Operating income

1,382

1,113

4,448

3,789

Investment income, net

199

161

589

574

Income from continuing operations before income taxes

1,581

1,274

5,037

4,363

Income tax expense

(375)

(289)

(993)

(862)

Income from continuing operations

1,206

985

4,044

3,501

Discontinued operations, net of income taxes

(3)

44

753

(307)

Net income

1,203

1,029

4,797

3,194

Net loss attributable to noncontrolling interests

4

6

41

10

Net income attributable to Qualcomm

$ 1,207

$ 1,035

$ 4,838

$ 3,204

Basic earnings (loss) per share attributable to Qualcomm:

Continuing operations

$ 0.70

$ 0.59

$ 2.40

$ 2.13

Discontinued operations

–

0.03

0.45

(0.19)

Net income

$ 0.70

$ 0.62

$ 2.85

$ 1.94

Diluted earnings (loss) per share attributable to Qualcomm:

Continuing operations

$ 0.69

$ 0.58

$ 2.35

$ 2.09

Discontinued operations

–

0.03

0.43

(0.19)

Net income

$ 0.69

$ 0.61

$ 2.78

$ 1.90

Shares used in per share calculations:

Basic

1,715

1,673

1,699

1,650

Diluted

1,758

1,709

1,740

1,682

Dividends per share announced

$ 0.250

$ 0.215

$ 0.680

$ 0.595

Qualcomm Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Three Months Ended

Nine Months Ended

June 24,
2012

June 26,
2011

June 24,
2012

June 26,
2011

Operating Activities:

Net income

$ 1,203

$ 1,029

$ 4,797

$ 3,194

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation and amortization

221

185

640

820

Gain on sale of spectrum

–

–

(1,179)

–

Goodwill impairment

7

–

23

114

Revenues related to non-monetary exchanges

(31)

(31)

(92)

(93)

Income tax provision (less than) in excess of income tax payments

(261)

116

239

(1,218)

Non-cash portion of share-based compensation expense

264

193

752

568

Incremental tax benefit from stock options exercised

(29)

(35)

(127)

(167)

Net realized gains on marketable securities and other investments

(70)

(73)

(214)

(304)

Gains on derivative instruments

(13)

(1)

(87)

(1)

Other items, net

44

16

90

50

Changes in assets and liabilities, net of effects of acquisitions:

Accounts receivable, net

(54)

(2)

(249)

21

Inventories

(32)

38

(53)

(43)

Other assets

(21)

(17)

(31)

(36)

Trade accounts payable

(90)

(46)

197

(191)

Payroll, benefits and other liabilities

(151)

(59)

(412)

210

Unearned revenues

(65)

(49)

295

156

Net cash provided by operating activities

922

1,264

4,589

3,080

Investing Activities:

Capital expenditures

(399)

(219)

(1,034)

(400)

Purchases of available-for-sale securities

(4,768)

(2,426)

(11,804)

(8,271)

Proceeds from sale of available-for-sale securities

2,231

3,888

5,774

9,355

Purchase of trading securities

(641)