hi Maurice Winn,
as a follow-up on
QUALCOMM ships a lot of the dollars home as profits, pays taxes to USS Enterprise to maintain the system
i thought you might like to see the following figures from QCOM's SEC filings... the item "Tax benefit from option exercise" is the tax credits QCOM received for these respective years. i.e., these are dollars that QCOM does not pay to the "USS Enterprise to maintain the system". adding up just those amounts for the years 97-99 gives more than $525 million of money QCOM did not have to pay to the "USS Enteprise to maintain the system". i am not sure whether these items are classified by QCOM as income. i am pretty sure they do classify the tax benefits as income, because looking at the cash flow statement we see the tax provision fluctuates under the operating heading. but first let's look at the income statement...
(BTW, you can review this 10-K filing at freeedgar>> freeedgar.com )
FY1997:
Exercise of stock options 10,317 1 32,147 - - 32,148
Tax benefit from exercise of stock options - - 17,125 - - 17,125
Issuance for Employee Stock Purchase and
Executive Retirement Plans 3,774 - 19,408 - - 19,408
FY1998
Exercise of stock options 48,994 5 205,223 - - 205,228
Tax benefit from exercise of stock options - - 290,817 - - 290,817
Issuance for Employee Stock Purchase and
Executive Retirement Plans 4,994 1 31,570 - - 31,571
Stock based compensation expense - - 8,613 - - 8,613
FY1999:
Exercise of stock options and warrants 22,101 2 109,825 - - 109,827
Tax benefit from exercise of stock options - - 217,846 - - 217,846
Issuance for Employee Stock Purchase and
Executive Retirement Plans 749 - 31,186 - - 31,186
Stock based compensation expense - - 25,400 - - 25,400
so the tax benefit is some 525 million, and we can see it reflected in the income statement thusly (see the bold line at the bottom)>>
YEARS ENDED SEPTEMBER 30,
-----------------------------------------------
2000 1999 1998
------------- ----------------- ------------
OPERATING ACTIVITIES:
Net income $ 670,211 $ 200,879 $ 108,532
Depreciation and amortization 243,842 158,429 141,892
Purchased in-process technology 60,030 - 6,976
Restructuring, impairments and other non-cash charges and credits 88,953 269,449 25,000
Gain on sale of available-for-sale securities (270,132) (5,663) -
Minority interest in income of consolidated subsidiaries 6,264 13,066 48,366
Equity in losses of investees 15,117 15,140 20,731
Non-cash income tax provision (benefit) 481,621 (96,595) (55,581)
i'm a little disappointed in QCOM for including the tax credits under operating cash flows. if you add up the last three years (2000-98), it is 481,621 - 96,595 - 55,581 = $334,445 million. that is a nice addition to the bottom line, if in fact QCOM did that. but unfortunately that is funds which did not flow to the USS Enterprise. |
