Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Entity Registrant Name | BROADCOM CORP |
Entity Central Index Key | 1054374 |
Document Type | 10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Common Class A | |
Shares outstanding | 518 |
Common Class B | |
Shares outstanding | 50 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,524 | $1,617 |
Short-term marketable securities | 880 | 757 |
Accounts receivable, net | 852 | 740 |
Inventory | 541 | 527 |
Prepaid expenses and other current assets | 130 | 140 |
Total current assets | 3,927 | 3,781 |
Property and equipment, net | 535 | 485 |
Long-term marketable securities | 1,940 | 1,348 |
Goodwill | 3,743 | 3,726 |
Purchased intangible assets, net | 1,112 | 1,786 |
Other assets | 88 | 82 |
Total assets | 11,345 | 11,208 |
Current liabilities: | ||
Current portion of long-term debt | 300 | 300 |
Accounts payable | 520 | 549 |
Wages and related benefits | 219 | 241 |
Deferred revenue and income | 22 | 22 |
Accrued liabilities | 740 | 570 |
Total current liabilities | 1,801 | 1,682 |
Long-term debt | 1,394 | 1,393 |
Other long-term liabilities | 233 | 294 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 12,207 | 12,403 |
Accumulated deficit | -4,275 | -4,531 |
Accumulated other comprehensive loss | -15 | -33 |
Total shareholders’ equity | 7,917 | 7,839 |
Total liabilities and shareholders’ equity | $11,345 | $11,208 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net revenue: | ||||
Product revenue | $2,146 | $2,085 | $6,155 | $5,783 |
Income from Qualcomm Agreement | 0 | 43 | 86 | 143 |
Total net revenue | 2,146 | 2,128 | 6,241 | 5,926 |
Costs and expenses: | ||||
Cost of product revenue | 1,044 | 1,063 | 3,062 | 3,002 |
Research and development | 609 | 600 | 1,843 | 1,728 |
Selling, general and administrative | 181 | 174 | 534 | 524 |
Amortization of purchased intangible assets | 14 | 32 | 43 | 82 |
Impairments of long-lived assets | 0 | 48 | 511 | 85 |
Restructuring costs | 12 | 2 | 12 | 6 |
Settlement costs (gains) | -75 | -2 | -75 | 86 |
Charitable contribution | 25 | 0 | 25 | 0 |
Total operating costs and expenses | 1,810 | 1,917 | 5,955 | 5,513 |
Income from operations | 336 | 211 | 286 | 413 |
Interest expense, net | -7 | -8 | -24 | -21 |
Other income (expense), net | -4 | 8 | 2 | 14 |
Income before income taxes | 325 | 211 | 264 | 406 |
Provision for (benefit of) income taxes | 9 | -9 | 8 | -62 |
Net income | $316 | $220 | $256 | $468 |
Net income per share (basic) (usd per share) | $0.55 | $0.39 | $0.45 | $0.84 |
Net income per share (diluted) (usd per share) | $0.55 | $0.38 | $0.44 | $0.82 |
Weighted average shares (basic) (shares) | 571 | 561 | 573 | 555 |
Weighted average shares (diluted) (shares) | 578 | 579 | 585 | 574 |
Dividends per share (usd per share) | $0.11 | $0.10 | $0.33 | $0.30 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements of Operations (Stock-based Compensation Expense) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cost of product revenue | ||||
Details of total stock-based compensation expense by statement functional line | ||||
Stock-based compensation expense | $6 | $6 | $19 | $21 |
Research and development | ||||
Details of total stock-based compensation expense by statement functional line | ||||
Stock-based compensation expense | 86 | 89 | 280 | 278 |
Selling, general and administrative | ||||
Details of total stock-based compensation expense by statement functional line | ||||
Stock-based compensation expense | $33 | $33 | $102 | $116 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $316 | $220 | $256 | $468 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments, net of $0 tax in 2013 and 2012 | 18 | 10 | 19 | -15 |
Unrealized gains (losses) on marketable securities, net of $0 tax in 2013 and 2012 | 4 | 2 | -1 | 4 |
Other comprehensive income (loss) | 22 | 12 | 18 | -11 |
Comprehensive income | $338 | $232 | $274 | $457 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $0 | $0 | $0 | $0 |
Unrealized gains (losses) on marketable securities, tax | $0 | $0 | $0 | $0 |
Unaudited_Condensed_Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ||
Net income | $256 | $468 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 122 | 95 |
Stock-based compensation expense | 401 | 415 |
Acquisition-related items: | ||
Amortization of purchased intangible assets | 172 | 230 |
Impairments of long-lived assets | 511 | 85 |
Gain on strategic investments and other | 2 | 12 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | -112 | -140 |
Inventory | -14 | -35 |
Prepaid expenses and other assets | 3 | -8 |
Accounts payable | -20 | 125 |
Deferred revenue and income | -11 | 39 |
Accrued settlement costs | -38 | 51 |
Other accrued and long-term liabilities | 126 | 25 |
Net cash provided by operating activities | 1,394 | 1,338 |
Investing activities | ||
Net purchases of property and equipment | -172 | -189 |
Net cash paid for acquired companies | 0 | -3,582 |
Sales of strategic investments | 0 | 13 |
Purchases of marketable securities | -2,214 | -1,854 |
Proceeds from sales and maturities of marketable securities | 1,496 | 1,192 |
Net cash used in investing activities | -890 | -4,420 |
Financing activities | ||
Issuance of long-term debt, net | 0 | 492 |
Repurchases of Class A common stock | -595 | -1 |
Dividends paid | -190 | -167 |
Payment of assumed contingent consideration and debt | 0 | -57 |
Proceeds from issuance of common stock | 292 | 209 |
Minimum tax withholding paid on behalf of employees for restricted stock units | -104 | -124 |
Net cash provided by (used in) financing activities | -597 | 352 |
Decrease in cash and cash equivalents | -93 | -2,730 |
Cash and cash equivalents at beginning of period | 1,617 | 4,146 |
Cash and cash equivalents at end of period | $1,524 | $1,416 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Our Company | |
Broadcom Corporation (including our subsidiaries, referred to collectively in this Report as “Broadcom,” “we,” “our” and “us”) is a global leader and innovator in semiconductor solutions for wired and wireless communications. Broadcom® products seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. We provide the industry’s broadest portfolio of state-of-the-art system-on-a-chip, or SoC, and embedded software solutions. | |
Basis of Presentation | |
The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and with the instructions to Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2012, included in our 2012 Annual Report on Form 10-K filed with the SEC on January 30, 2013, referred to as our 2012 Annual Report. | |
The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our results of operations and financial position for the interim periods. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for future quarters or the full year. Certain amounts previously reported as licensing revenue have been reclassified to product revenue to conform to the current period presentation. Such reclassifications had an impact of $7 million and $18 million in the three and nine months ended September 30, 2012, respectively, and did not affect net income, shareholders' equity or cash flows. | |
For a complete summary of our significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” in Part IV, Item 15 of our 2012 Annual Report. There have been no material changes to our significant accounting policies during the nine months ended September 30, 2013. | |
Use of Estimates | |
The preparation of financial statements in accordance with United States generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of total net revenue and expenses in the reporting periods. We regularly evaluate estimates and assumptions related to revenue recognition, rebates, allowances for doubtful accounts, sales returns and allowances, warranty obligations, inventory valuation, stock-based compensation expense, goodwill and purchased intangible asset valuations, strategic investments, deferred income tax asset valuation allowances, uncertain tax positions, tax contingencies, self-insurance, restructuring costs or reversals, litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results we experience may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and actual results, our future results of operations will be affected. |
Supplemental_Financial_Informa
Supplemental Financial Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Supplemental Financial Information | Supplemental Financial Information | |||||||||||||||
Inventory | ||||||||||||||||
The following table presents details of our inventory: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Work in process | $ | 211 | $ | 187 | ||||||||||||
Finished goods | 330 | 340 | ||||||||||||||
$ | 541 | $ | 527 | |||||||||||||
Accrued Liabilities | ||||||||||||||||
The following table presents details of our accrued liabilities included in current liabilities: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Accrued rebates | $ | 522 | $ | 383 | ||||||||||||
Accrued royalties | 17 | 21 | ||||||||||||||
Accrued settlement charges | 60 | 68 | ||||||||||||||
Accrued legal costs | 18 | 15 | ||||||||||||||
Accrued taxes | 22 | 16 | ||||||||||||||
Warranty reserve | 11 | 13 | ||||||||||||||
Restructuring liabilities | 12 | — | ||||||||||||||
Other | 78 | 54 | ||||||||||||||
$ | 740 | $ | 570 | |||||||||||||
Other Long-Term Liabilities | ||||||||||||||||
The following table presents details of our other long-term liabilities: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Deferred rent | $ | 48 | $ | 54 | ||||||||||||
Accrued taxes | 65 | 67 | ||||||||||||||
Deferred tax liabilities | 35 | 45 | ||||||||||||||
Accrued settlement charges | 28 | 58 | ||||||||||||||
Deferred revenue | 36 | 47 | ||||||||||||||
Other long-term liabilities | 21 | 23 | ||||||||||||||
$ | 233 | $ | 294 | |||||||||||||
Accrued Rebate Activity | ||||||||||||||||
The following table summarizes the activity related to accrued rebates: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 383 | $ | 317 | ||||||||||||
Charged as a reduction of revenue | 617 | 512 | ||||||||||||||
Reversal of unclaimed rebates | (15 | ) | (8 | ) | ||||||||||||
Payments | (463 | ) | (441 | ) | ||||||||||||
Ending balance | $ | 522 | $ | 380 | ||||||||||||
We recorded customer rebates of $264 million and $216 million in the three months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
Charitable Contribution | ||||||||||||||||
In April 2009 we established the Broadcom Foundation to support science, technology, engineering and mathematics programs, as well as a broad range of community services. In September 2013 we contributed $25 million to the Broadcom Foundation. This payment was recorded as an operating expense in our unaudited statement of income in the three months ended September 30, 2013. | ||||||||||||||||
Computation of Net Income Per Share | ||||||||||||||||
Net income per share (basic) is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Net income per share (diluted) is calculated by adjusting outstanding shares, assuming any dilutive effects of stock options and restricted stock units calculated using the treasury stock method. Under the treasury stock method, an increase in the fair market value of our Class A common stock results in a greater dilutive effect from outstanding stock options, stock purchase rights and restricted stock units. Additionally, the exercise of employee stock options and stock purchase rights and the vesting of restricted stock units results in a further dilutive effect on net income per share. | ||||||||||||||||
The following table presents the computation of net income per share: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Numerator: Net income | $ | 316 | $ | 220 | $ | 256 | $ | 468 | ||||||||
Denominator for net income per share (basic) | 571 | 561 | 573 | 555 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock awards | 7 | 18 | 12 | 19 | ||||||||||||
Denominator for net income per share (diluted) | 578 | 579 | 585 | 574 | ||||||||||||
Net income per share (basic) | $ | 0.55 | $ | 0.39 | $ | 0.45 | $ | 0.84 | ||||||||
Net income per share (diluted) | $ | 0.55 | $ | 0.38 | $ | 0.44 | $ | 0.82 | ||||||||
Net income per share (diluted) does not include the effect of anti-dilutive common share equivalents resulting from outstanding equity awards. There were 47 million and 26 million anti-dilutive common share equivalents in the three months ended September 30, 2013 and 2012, respectively, and 39 million and 23 million anti-dilutive common share equivalents in the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
Income from the Qualcomm Agreement | ||||||||||||||||
For a discussion of income from our April 2009 agreement with Qualcomm Incorporated, or the Qualcomm Agreement, please see our 2012 Annual Report. The income from the Qualcomm Agreement terminated in April 2013. | ||||||||||||||||
Supplemental Cash Flow Information | ||||||||||||||||
In the nine months ended September 30, 2013, we paid $27 million for capital equipment that was accrued as of December 31, 2012 and had billings of $18 million for capital equipment that were accrued but not yet paid as of September 30, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||
Our financial instruments consist principally of cash and cash equivalents, short- and long-term marketable securities, accounts receivable, accounts payable and long-term debt. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | ||||||||||||||||||||||||||||
Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||||||||||||||
Level 2:Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. | ||||||||||||||||||||||||||||
Level 3:Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. | ||||||||||||||||||||||||||||
The fair value of the majority of our cash equivalents and marketable securities was determined based on “Level 1” inputs. The fair value of certain marketable securities and our long-term debt were determined based on “Level 2” inputs. The valuation techniques used to measure the fair value of our “Level 2” instruments were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. We do not have any marketable securities in the “Level 3” category. We believe that the recorded values of all our other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. | ||||||||||||||||||||||||||||
Instruments Measured at Fair Value on a Recurring Basis. The following tables present our cash and marketable securities’ costs, gross unrealized gains, gross unrealized losses and fair value by major security type recorded as cash and cash equivalents or short-term or long-term marketable securities: | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 418 | $ | — | $ | — | $ | 418 | $ | 418 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 620 | — | — | 620 | 620 | — | — | |||||||||||||||||||||
Money market funds | 340 | — | — | 340 | 340 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,084 | 1 | (1 | ) | 1,084 | — | 191 | 893 | ||||||||||||||||||||
Subtotal | 2,044 | 1 | (1 | ) | 2,044 | 960 | 191 | 893 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 252 | — | — | 252 | 146 | 106 | — | |||||||||||||||||||||
Corporate bonds | 1,575 | 2 | (1 | ) | 1,576 | — | 559 | 1,017 | ||||||||||||||||||||
Asset-backed securities and other | 54 | — | — | 54 | — | 24 | 30 | |||||||||||||||||||||
Subtotal | 1,881 | 2 | (1 | ) | 1,882 | 146 | 689 | 1,047 | ||||||||||||||||||||
Total | $ | 4,343 | $ | 3 | $ | (2 | ) | $ | 4,344 | $ | 1,524 | $ | 880 | $ | 1,940 | |||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 213 | $ | — | $ | — | $ | 213 | $ | 213 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 904 | — | — | 904 | 884 | 20 | — | |||||||||||||||||||||
Money market funds | 250 | — | — | 250 | 250 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 936 | 1 | — | 937 | — | 201 | 736 | |||||||||||||||||||||
Corporate bonds | 1 | — | — | 1 | — | 1 | — | |||||||||||||||||||||
Subtotal | 2,091 | 1 | — | 2,092 | 1,134 | 222 | 736 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 432 | — | — | 432 | 270 | 162 | — | |||||||||||||||||||||
Corporate bonds | 921 | 2 | (1 | ) | 922 | — | 351 | 571 | ||||||||||||||||||||
Asset-backed securities and other | 63 | — | — | 63 | — | 22 | 41 | |||||||||||||||||||||
Subtotal | 1,416 | 2 | (1 | ) | 1,417 | 270 | 535 | 612 | ||||||||||||||||||||
Total | $ | 3,720 | $ | 3 | $ | (1 | ) | $ | 3,722 | $ | 1,617 | $ | 757 | $ | 1,348 | |||||||||||||
There were no transfers between Level 1, Level 2 or Level 3 securities in the nine months ended September 30, 2013. All of our long-term marketable securities had maturities of between one and three years in duration at September 30, 2013. Our cash, cash equivalents and marketable securities at September 30, 2013 consisted of $2.09 billion held domestically, with the remaining balance of $2.25 billion held by our foreign subsidiaries. | ||||||||||||||||||||||||||||
At September 30, 2013 we had 161 investments with a fair value of $919 million that were in an unrealized loss position for less than 12 months. Our gross unrealized losses of $2 million for these investments at September 30, 2013 were due to changes in market rates. We have determined that the gross unrealized losses on these investments at September 30, 2013 are temporary in nature. We evaluate securities for other-than-temporary impairment on a quarterly basis. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment in order to allow for an anticipated recovery in fair value. | ||||||||||||||||||||||||||||
Instruments Not Recorded at Fair Value on a Recurring Basis. We measure the fair value of our long-term debt carried at amortized cost quarterly for disclosure purposes. The estimated fair value of long-term debt is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. Based on the market prices, the fair value of our long-term debt was $1.68 billion and $1.75 billion as of September 30, 2013 and December 31, 2012, respectively. The recorded values of all our accounts receivable and accounts payable approximate their current fair values because of their nature and respective relatively short maturity dates or durations. | ||||||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis. We measure the fair value of our cost method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a business acquisition, and goodwill and other long lived assets when they are held for sale or determined to be impaired. See Note 9 for discussion on fair value measurements of certain assets and liabilities recorded at fair value on a non-recurring basis. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Taxes | Income Taxes | |||||||||||||
The following table presents details of the provision for (benefit of) income taxes and our effective tax rates: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In millions, except percentages) | ||||||||||||||
Provision for (benefit of) income taxes | $ | 9 | $ | (9 | ) | 8 | (62 | ) | ||||||
Effective tax rates | 2.8 | % | (4.3 | )% | 3 | % | (15.3 | )% | ||||||
The differences between our effective tax rates and the 35% federal statutory rate resulted primarily from foreign earnings taxed at substantially lower rates than the federal statutory rate, and domestic tax losses recorded without tax benefits. In determining our annualized effective tax rates, the tax effects of a $75 million settlement gain for the three and nine months ended September 30, 2013, and the impairments of purchased intangible assets of $48 million for the three months ended September 30, 2012, and $511 million and $85 million for the nine months ended September 30, 2013 and 2012, respectively, were treated as discrete items. As a result, we recorded discrete tax benefits for the impairments of purchased intangible assets of $12 million for the three and nine months ended September 30, 2012, and $10 million for the nine months ended September 30, 2013. We recorded a discrete tax provision of $3 million for the three and nine months ended September 30, 2013, resulting from changes to foreign statutory tax rates. We also recorded discrete tax benefits of $9 million and $7 million for the nine months ended September 30, 2013 and 2012, respectively, resulting primarily from the expiration of statutes of limitations for the assessment of taxes in various foreign jurisdictions. In addition, we recorded tax benefits resulting from reductions in our U.S. valuation allowance on certain deferred tax assets due to recording net deferred tax liabilities for identifiable intangible assets under purchase accounting of $51 million for the nine months ended September 30, 2012. | ||||||||||||||
As a result of our cumulative tax losses in the U.S. and certain foreign jurisdictions, and the full utilization of our loss carryback opportunities, we have concluded that a full valuation allowance should be recorded in such jurisdictions. In certain other foreign jurisdictions where we do not have cumulative losses, we had net deferred tax liabilities of $17 million and $29 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||
We operate under tax incentives in Singapore, which are effective through March 2014. The tax incentives are conditional upon our meeting certain employment and investment thresholds. We are in discussions with the Singapore Economic Development Board with respect to tax incentives for periods after March 31, 2014. | ||||||||||||||
Our income tax returns for the 2007, 2008 and 2009 tax years are currently under examination by the Internal Revenue Service. We do not believe the audit will have a material impact on our financial position, operating results, or cash flows. However, our deferred tax assets could be reduced, with a corresponding reduction in the valuation allowance related to such deferred tax assets. |
Debt_and_Credit_Facility
Debt and Credit Facility | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Debt Disclosure [Abstract] | ||||
Debt and Credit Facility | Debt and Credit Facility | |||
Senior Notes | ||||
The following table presents details of our senior notes, or Notes: | ||||
September 30, | ||||
2013 | ||||
(In millions) | ||||
1.500% fixed-rate notes, due 2013 | $ | 300 | ||
2.375% fixed-rate notes, due 2015 | 400 | |||
2.700% fixed-rate notes, due 2018 | 500 | |||
2.500% fixed-rate notes, due 2022 | 500 | |||
$ | 1,700 | |||
Unaccreted discount | (6 | ) | ||
Less current portion of long-term debt | (300 | ) | ||
$ | 1,394 | |||
In connection with the Notes issued in August 2012 and due in 2022, or the 2022 Notes, we entered into a registration rights agreement pursuant to which we agreed to use our reasonable commercial efforts to file with the SEC an exchange offer registration statement to issue registered notes with substantially identical terms as the 2022 Notes in exchange for any outstanding 2022 Notes, or, under certain circumstances, a shelf registration statement to register the 2022 Notes. In the three months ended June 30, 2013 we commenced and completed an exchange offer to issue registered notes with substantially identical terms as the original 2022 Notes. Substantially all of the original notes were exchanged. | ||||
The Notes contain a number of customary representations, warranties and restrictive covenants, including, but not limited to, restrictions on our ability to grant liens on assets; enter into sale and lease-back transactions; or merge, consolidate or sell assets. Failure to comply with these covenants, or any other event of default, could result in acceleration of the principal amount and accrued but unpaid interest on the Notes. | ||||
Relative to our overall indebtedness, the Notes rank in right of payment (i) equal with all of our other existing and future senior unsecured indebtedness (ii) senior to all of our existing and future subordinated indebtedness, and (iii) effectively subordinated to all of our subsidiaries' existing and future indebtedness and other obligations (including secured and unsecured obligations) and subordinated to our existing and future secured indebtedness and other obligations, to the extent of the assets securing such indebtedness and other obligations. | ||||
Credit Facility | ||||
In November 2010 we entered into a credit facility with certain institutional lenders that provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $500 million. We amended this credit facility in October 2011 primarily to extend the maturity date by two years to November 19, 2016, at which time all outstanding revolving facility loans (if any) and accrued and unpaid interest must be repaid. The amendment to the credit facility also decreased the interest rate margins applicable to loans made under the credit facility and the commitment fee paid on the amount of the unused commitments. We have not drawn on our credit facility to date. | ||||
The credit facility contains customary representations, warranties and covenants. Financial covenants require us to maintain a consolidated leverage ratio of no more than 3.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity |
Quarterly Dividend | |
In January 2013 our Board of Directors adopted an amendment to the existing dividend policy pursuant to which we increased the quarterly cash dividend by 10.0% to $0.11 per share ($0.44 per share on an annual basis) payable to holders of our common stock. In the three and nine months ended September 30, 2013 and 2012 we paid $63 million, $190 million, $56 million and $167 million, respectively, in dividends to holders of our Class A and Class B common stock. | |
Share Repurchase Programs | |
In February 2010 we announced that our Board of Directors had authorized an evergreen share repurchase program intended to offset dilution of incremental grants of stock awards associated with our stock incentive plans. The maximum number of shares of our Class A common stock that may be repurchased in any one year under this program (including under an accelerated share repurchase agreement or similar arrangement) is equal to the total number of shares issued pursuant to our equity awards in the previous year and the current year. This program does not have an expiration date and may be suspended at any time at the discretion of the Board of Directors. It may also be complemented with one or more additional share repurchase programs in the future. Under the evergreen program we repurchased 13.6 million and 20.1 million shares of our Class A common stock at a weighted average price of $27.70 and $29.60 in the three and nine months ended September 30, 2013, respectively. | |
Repurchases under our share repurchase programs were and are intended to be made in open market or privately negotiated transactions in compliance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. Our share repurchase programs do not obligate us to acquire any particular amount of our stock and may be suspended at any time at our discretion. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||||||||||||||
Combined Incentive Plan Activity | ||||||||||||||||||||||||
Restricted stock unit activity is set forth below: | ||||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||
Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2012 | 25 | $ | 35.55 | |||||||||||||||||||||
Restricted stock units granted | 14 | 33.42 | ||||||||||||||||||||||
Restricted stock units cancelled | (2 | ) | 35.22 | |||||||||||||||||||||
Restricted stock units vested | (10 | ) | 33.85 | |||||||||||||||||||||
Balance at September 30, 2013 | 27 | $ | 35.14 | |||||||||||||||||||||
Stock option activity is set forth below: | ||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Exercise | ||||||||||||||||||||||||
Price | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2012 | 58 | $ | 28.11 | |||||||||||||||||||||
Options cancelled | (1 | ) | 40.36 | |||||||||||||||||||||
Options exercised | (10 | ) | 22.16 | |||||||||||||||||||||
Balance at September 30, 2013 | 47 | $ | 29.23 | |||||||||||||||||||||
The following table presents details of unearned stock-based compensation currently estimated to be expensed in the remainder of 2013 through 2017 related to unvested share-based payment awards: | ||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Unearned stock-based compensation | $ | 119 | $ | 374 | $ | 236 | $ | 124 | $ | 19 | $ | 872 | ||||||||||||
If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional equity awards or assume unvested equity awards in connection with acquisitions. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Litigation | |
We and certain of our subsidiaries are currently parties to various legal proceedings, including those noted in this section. Unless otherwise noted below, during the periods presented we have not: recorded any accrual for loss contingencies associated with such legal proceedings; determined that an unfavorable outcome is probable or reasonably possible; or determined that the amount or range of any possible loss is reasonably estimable. We are engaged in numerous other legal actions not described below arising in the ordinary course of our business and, while there can be no assurance, we believe that the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position. | |
From time to time we may conclude it is in the best interests of our shareholders, employees, and customers to settle one or more litigation matters, and any such settlement could include substantial payments; however, other than as noted below, we have not reached this conclusion with respect to any particular matter at this time. There are a variety of factors that influence our decisions to settle and the amount we may choose to pay, including the strength of our case, developments in the litigation, the behavior of other interested parties, the demand on management time and the possible distraction of our employees associated with the case and/or the possibility that we may be subject to an injunction or other equitable remedy. It is difficult to predict whether a settlement is possible, the amount of an appropriate settlement or when is the opportune time to settle a matter in light of the numerous factors that go into the settlement decision. | |
Intellectual Property Proceedings | |
In August 2010, we filed a motion to intervene (i.e., to be added as a party) in U.S. Ethernet Innovations, LLC v. Acer, Inc., Case No. 10-cv-03724-JW (N.D. Cal.). In this case, U.S. Ethernet Innovations, LLC, or USEI, filed a patent infringement complaint alleging that numerous companies, including certain of our customers, infringe patents relating generally to Ethernet technology. USEI seeks monetary damages, attorney’s fees, and an injunction. Defendants have filed answers denying the allegations in USEI’s complaint and asserting counterclaims for declaratory judgment that USEI’s patents are invalid, unenforceable, and not infringed. We contend that we have a license related to USEI’s patents and are seeking to assert this license as a defense. In December 2010, the Court granted our motion to intervene. Trial has been set for January 2015. | |
In March 2013, NXP B.V. sued Nintendo, our customer, in the U.S. District Court for the District of Nevada, asserting five patents against the Wii U, a Nintendo product. In October 2013, NXP B.V. withdrew its complaint against Nintendo and filed a new complaint against us, Case No. 2-13-cv-01883 (D. Nev.), asserting the same five patents against our near field communications (NFC) products. NXP B.V. has not yet served the complaint on Broadcom. No trial date has been set. | |
In May 2013, we sued NXP Semiconductors N.V., NXP B.V., and NXP Semiconductors USA, Inc. for patent infringement in the U.S. District Court for the Central District of California, Case No. SACV13-829-MRP-MAN (C.D. Cal.). The complaint accuses the NXP entities of infringing five of our patents and identifies certain NXP NFC and Secure Element products as representative accused products. No trial date has been set. | |
We and our subsidiaries are also involved in other intellectual property proceedings, claims and litigation. We will disclose the nature of any such matter if we believe it to be material. Particularly in the early stages of such proceedings, an assessment of materiality may be complicated by limited information, including, without limitation, limited information about the patents-in-suit and Broadcom products against which the patents are being asserted. Accordingly, our assessment of materiality may change in the future based upon availability of discovery and further developments in the proceedings at issue. Some of these intellectual property proceedings may involve, for example, “non-practicing entities” asserting claims addressing certain of our products. The resolution of intellectual property litigation can include, among other things, payment of damages, royalties, or other amounts, which could adversely, impact our product gross margins in future periods, or could prevent us from manufacturing or selling some of our products or limit or restrict the type of work that employees may perform for us. In addition, from time to time we are approached by holders of intellectual property, including non-practicing entities, to engage in discussions about our obtaining licenses to their intellectual property. We will disclose the nature of any such discussion if we determine that (i) it is probable an intellectual property holder will assert a claim of infringement, (ii) there is a reasonable possibility the outcome (assuming assertion) will be unfavorable, and (iii) the resulting liability would be material to our financial condition. | |
Other Proceedings | |
In April 2008 we delivered a Notice of Arbitration and Arbitration Claim to our former independent registered public accounting firm Ernst & Young LLP, or EY, and certain related parties. The arbitration relates to the issues that led to the restatement of our financial statements for the periods from 1998 through March 31, 2006 as disclosed in an amended Annual Report on Form 10-K/A for the year ended December 31, 2005 and an amended Quarterly Report on Form 10-Q/A for the three months ended March 31, 2006, each filed with the SEC on January 23, 2007. In May 2008 EY delivered a Notice of Defense and Counterclaim. The arbitration hearing occurred in January 2013. In July 2013 we entered into a confidential settlement agreement with EY pursuant to which the parties mutually dismissed all claims, deny liability and EY paid a settlement amount to Broadcom. | |
In September 2013 the State Administration for Industry and Commerce, a Chinese regulatory agency, commenced an informal review of our compliance with China’s antitrust laws. We are fully cooperating with this review. | |
General | |
We and our subsidiaries are also involved in other legal proceedings, claims and litigation arising in the ordinary course of business. We will disclose the nature of any such matter if we believe it to be material. | |
The pending proceedings described above involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to prosecute and defend. The results of legal proceedings are inherently uncertain, and material adverse outcomes are possible. From time to time we may enter into confidential discussions regarding the potential settlement of pending intellectual property or other litigation or other proceedings; however, there can be no assurance that any such discussions will occur or will result in a settlement. In the course of such settlement discussions, if we conclude that a settlement loss is probable and the settlement amount is estimable we may record settlement costs, notwithstanding not having reached a final settlement agreement. The settlement of any pending litigation or other proceedings could require us to incur substantial settlement payments and costs. Furthermore, the settlement of any intellectual property proceeding may require us to grant a license to certain of our intellectual property rights to the other party under a cross-license agreement. If any of those events were to occur, our business, financial condition and results of operations could be materially and adversely affected. | |
Settlement Costs and Other Related Items | |
In the three and nine months ended September 30, 2013 we received a payment of $75 million, net of contingent legal fees, related to Other Proceedings, and recorded this as a gain on settlement. In three months ended September 30, 2012 we recognized a gain on settlement of patent infringement claims of $2 million. In the nine months ended September 30, 2012 we recorded settlement costs of $88 million related to the settlement of patent infringement claims. |
Goodwill_and_Other_Purchased_I
Goodwill and Other Purchased Intangible Assets | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||
Goodwill and Other Purchased Intangible Assets | Goodwill and Other Purchased Intangible Assets | |||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
The following table summarizes the activity related to the carrying value of our goodwill: | ||||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Broadband | Mobile and | Infrastructure | Foreign | Consolidated | ||||||||||||||||||||||||
Communications | Wireless | and Networking | Currency | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Goodwill | $ | 770 | $ | 1,013 | $ | 3,778 | $ | (6 | ) | $ | 5,555 | |||||||||||||||||
Accumulated impairment losses | — | (543 | ) | (1,286 | ) | — | (1,829 | ) | ||||||||||||||||||||
Goodwill at December 31, 2012 | $ | 770 | $ | 470 | $ | 2,492 | $ | (6 | ) | $ | 3,726 | |||||||||||||||||
Effects of foreign currency translation | — | — | — | 17 | 17 | |||||||||||||||||||||||
Goodwill at September 30, 2013 | $ | 770 | $ | 470 | $ | 2,492 | $ | 11 | $ | 3,743 | ||||||||||||||||||
Purchased Intangible Assets | ||||||||||||||||||||||||||||
The following table presents details of our purchased intangible assets: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Developed technology | $ | 1,403 | $ | (495 | ) | $ | 908 | $ | 1,748 | $ | (443 | ) | $ | 1,305 | ||||||||||||||
In-process research and development | 129 | — | 129 | 311 | — | 311 | ||||||||||||||||||||||
Customer relationships | 232 | (164 | ) | 68 | 380 | (222 | ) | 158 | ||||||||||||||||||||
Other | 33 | (26 | ) | 7 | 37 | (25 | ) | 12 | ||||||||||||||||||||
$ | 1,797 | $ | (685 | ) | $ | 1,112 | $ | 2,476 | $ | (690 | ) | $ | 1,786 | |||||||||||||||
In the nine months ended September 30, 2013 we reclassified $83 million of in-process research and development, or | ||||||||||||||||||||||||||||
IPR&D, costs to developed technology primarily related to digital front end (DFE) processors from our acquisition of NetLogic Microsystems, Inc., or NetLogic. These purchased intangible assets were subsequently impaired as discussed below. | ||||||||||||||||||||||||||||
Impairment of Purchased Intangible Assets | ||||||||||||||||||||||||||||
In the three months ended June 30, 2013 we recorded impairment charges of $501 million, of which $461 million related to our acquisition of NetLogic. The remaining $40 million of the impairment is primarily related to our acquisition of Provigent, Inc. Both of these acquisitions are included in our Infrastructure and Networking reportable segment. Based on our impairment analysis, as further detailed below, we impaired $358 million of completed technology, $91 million of IPR&D, $50 million of customer relationships, and $2 million of other purchased intangible assets. | ||||||||||||||||||||||||||||
During the six months ended June 30, 2013 we had a steady reduction in near-term sales forecasts for NetLogic products sold into the service provider market, which caused us to review our long-term forecasts. In addition, we downwardly revised our longer-term expectations of the size of the addressable market for these products. As a result of these triggering events, we performed a detailed impairment analysis of the long-lived assets associated with these products during the three months ended June 30, 2013. Based on our analysis, we determined certain assets acquired from NetLogic were not recoverable and impaired, requiring us to reduce the associated carrying value to fair value. Specifically, we impaired $238 million of completed technology, $88 million of IPR&D and $48 million of customer relationships related to our embedded and knowledge-based processor products. We also impaired $87 million of completed technology related to our DFE processor products. For DFE, one of our smaller product lines, our customers indicated that they prefer custom solutions as opposed to standard merchant solutions. In response, we have decided to redirect our efforts by focusing on developing customized solutions, and have consequently fully impaired the assets related to the acquired DFE merchant product line. | ||||||||||||||||||||||||||||
The primary factor contributing to the Provigent impairment for completed technology in the three months ended June 30, 2013 (discussed above) and the charges of $10 million for IPR&D and $48 million for developed technology taken in the three months ended March 31, 2013 and September 30 2012, respectively, was the continued reduction in revenue outlook for certain products and the resulting decrease to the estimated cash flows identified with impaired assets. | ||||||||||||||||||||||||||||
As discussed in our 2012 Annual Report, based on our annual asset impairment testing and the increased balance of goodwill due to our recent acquisitions, including our acquisition of NetLogic, we determined there was a risk of our Infrastructure and Networking reporting unit failing the first step of the goodwill impairment test in future periods. The level of excess fair value over carrying value for this reporting unit was approximately 19% as of October 1, 2012. In light of the reduction in estimated future cash flows that resulted in the significant impairment of purchased intangible assets related to our Infrastructure and Networking reporting unit in the three months ended June 30, 2013 (as discussed above), and as a result of our recent stock price decline in the three months ended September 30, 2013, we determined our goodwill had potentially been impaired. Accordingly, we performed the first step of the quantitative goodwill impairment assessment for each of our reporting units for recoverability of goodwill at September 1, 2013 but determined no impairment was indicated as the estimated fair value of each of the reporting units exceeded its respective carrying value by greater than 20%. | ||||||||||||||||||||||||||||
Consistent with our annual goodwill impairment assessment, we estimated the fair values of our reporting units using a combination of the income and market approaches. Please refer to Note 10, "Impairment of Goodwill and Long-lived Assets", in our 2012 Annual Report. These techniques utilized several unobservable inputs categorized as Level 3 inputs. The key unobservable inputs utilized in the model include discount rates of 10% to 14%, perpetual growth rates of 3% to 4%, a market participant tax rate of 15%, and estimated future cash flows. | ||||||||||||||||||||||||||||
In the three months ended June 30, 2012 we recorded impairment charges for developed technology of $6 million, primarily related to our 2010 acquisition of Beceem Communications, Inc., or Beceem, included in our Mobile and Wireless reportable segment. The primary factor contributing to this impairment charge was the continued reduction in the forecasted cash flows derived from the acquired WiMAX products as wireless service providers have accelerated their adoption of Long Term Evolution (LTE) products. In the three months ended March 31, 2012 we recorded impairment charges for developed technology of $28 million, primarily related to our acquisitions of Dune Networks, Inc. and Percello Ltd. included in our Infrastructure and Networking, and Broadband Communications reportable segments, respectively. The primary factor contributing to these impairment charges was the reduction in the revenue outlook for certain products and the resulting decrease to the estimated cash flows identified with the impaired assets. In addition, we recorded an impairment charge of $3 million related to certain computer software and equipment in the three months ended June 30, 2012. | ||||||||||||||||||||||||||||
In determining the amount of the impairment charges we calculated fair values as of the impairment date for acquired intangible assets. We used several variations of the income approach to compute the fair values, including the multiple period excess earnings method, relief from royalty method, and incremental cash flow method. These methods employ significant unobservable inputs categorized as Level 3 inputs. The key unobservable inputs utilized in the model include discount rates ranging from 15% to 24%, a market participant tax rate of 15%, and estimated level of future cash flows based on current product and market data. | ||||||||||||||||||||||||||||
The following table presents details of the amortization of purchased intangible assets included in the cost of product revenue and other operating expense categories: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 42 | $ | 55 | $ | 129 | $ | 148 | ||||||||||||||||||||
Other operating expenses | 14 | 32 | 43 | 82 | ||||||||||||||||||||||||
$ | 56 | $ | 87 | $ | 172 | $ | 230 | |||||||||||||||||||||
The following table presents details of the amortization of existing purchased intangible assets (including IPR&D), which is currently estimated to be expensed in the remainder of 2013 and thereafter: | ||||||||||||||||||||||||||||
Purchased Intangible Asset Amortization by Year | ||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 41 | $ | 180 | $ | 172 | $ | 151 | $ | 131 | $ | 362 | $ | 1,037 | ||||||||||||||
Other operating expenses | 14 | 34 | 13 | 6 | 2 | 6 | 75 | |||||||||||||||||||||
$ | 55 | $ | 214 | $ | 185 | $ | 157 | $ | 133 | $ | 368 | $ | 1,112 | |||||||||||||||
Business_Enterprise_Segments_S
Business Enterprise Segments, Significant Customer and Geographical Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Business Enterprise Segments, Significant Customer and Geographical Information | Business Enterprise Segments, Significant Customer and Geographical Information | |||||||||||||||||||
Business Enterprise Segments | ||||||||||||||||||||
Broadcom has three reportable segments consistent with our target markets. Our three reportable segments are: Broadband Communications (Home), Mobile and Wireless (Hand), and Infrastructure and Networking (Infrastructure). Our Chief Executive Officer, who is our chief operating decision maker, or CODM, reviews financial information at the reportable segment level. | ||||||||||||||||||||
Our net revenue is generated principally from sales of integrated circuit products, the income we receive from the Qualcomm Agreement, and other licensing revenue. While we derive some revenue from other sources, that revenue is not material as it represents approximately 1% of our total net revenue. Such revenue is classified under product revenue for reporting purposes. We group our net revenue consistent with our three target markets which comprise our reportable segments, as discussed above. | ||||||||||||||||||||
With respect to the sales of integrated circuit products, we have approximately 600 products that are grouped into approximately 60 product lines. We have concluded that these products constitute a group of similar products within each reportable segment in each of the following respects: | ||||||||||||||||||||
• | the integrated circuits marketed by each of our reportable segments are sold to one type of customer: manufacturers of wired and wireless communications equipment, which incorporate our integrated circuits into their electronic products; | |||||||||||||||||||
• | the integrated circuits sold by each of our reportable segments use the same standard CMOS manufacturing processes; and | |||||||||||||||||||
• | all of our integrated circuits are sold through a centralized sales force and common wholesale distributors. | |||||||||||||||||||
We also report an “All Other” category, which is income from the Qualcomm Agreement, since it was principally the result of corporate efforts, and also includes operating expenses that we do not allocate to our other operating segments as these expenses are not included in the segment operating performance measures evaluated by our CODM. Operating costs and expenses that are not allocated include stock-based compensation, amortization of purchased intangible assets, amortization of acquired inventory valuation step-up, impairment of goodwill and other long-lived assets, net settlement costs (gains), net restructuring costs, charitable contributions, non-recurring legal fees, change in contingent earnout liability, employer payroll tax on certain stock option exercises, and other miscellaneous expenses related to corporate allocations that were either over or under the original projections at the beginning of the year. We include stock-based compensation and acquisition-related items in the “All Other” category as decisions regarding equity compensation are made at the corporate level and our CODM reviews reportable segment performance exclusive of these charges. Our CODM does not review information regarding total assets, interest income or income taxes on an operating segment basis. The accounting policies for segment reporting are the same as for Broadcom as a whole. | ||||||||||||||||||||
The following tables present details of our reportable segments and the “All Other” category: | ||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||
Broadband Communications | Mobile and Wireless | Infrastructure and Networking | All Other | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Net revenue | $ | 567 | $ | 1,015 | $ | 564 | $ | — | $ | 2,146 | ||||||||||
Operating income (loss) | 148 | 114 | 205 | (131 | ) | 336 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Net revenue | $ | 557 | $ | 1,023 | $ | 505 | $ | 43 | $ | 2,128 | ||||||||||
Operating income (loss) | 131 | 157 | 140 | (217 | ) | 211 | ||||||||||||||
Reportable Segments | ||||||||||||||||||||
Broadband Communications | Mobile and Wireless | Infrastructure and Networking | All Other | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Net revenue | $ | 1,672 | $ | 2,979 | $ | 1,504 | $ | 86 | $ | 6,241 | ||||||||||
Operating income (loss) | 409 | 333 | 454 | (910 | ) | 286 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Net revenue | $ | 1,594 | $ | 2,798 | $ | 1,391 | $ | 143 | $ | 5,926 | ||||||||||
Operating income (loss) | 365 | 404 | 363 | (719 | ) | 413 | ||||||||||||||
Included In All Other Category: | Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Net revenue | $ | — | $ | 43 | $ | 86 | $ | 143 | ||||||||||||
Stock-based compensation | $ | 125 | $ | 128 | $ | 401 | $ | 415 | ||||||||||||
Amortization of purchased intangible assets | 56 | 87 | 172 | 230 | ||||||||||||||||
Amortization of acquired inventory valuation step-up | — | 7 | 1 | 72 | ||||||||||||||||
Impairments of long-lived assets | — | 48 | 511 | 85 | ||||||||||||||||
Settlement costs (gains) | (75 | ) | (2 | ) | (75 | ) | 86 | |||||||||||||
Restructuring costs, net | 12 | 2 | 12 | 6 | ||||||||||||||||
Charitable contribution | 25 | — | 25 | — | ||||||||||||||||
Employer payroll tax on certain stock option exercises | 1 | 4 | 4 | 8 | ||||||||||||||||
Miscellaneous corporate allocation variances | (13 | ) | (14 | ) | (55 | ) | (40 | ) | ||||||||||||
Total other operating costs and expenses | $ | 131 | $ | 260 | $ | 996 | $ | 862 | ||||||||||||
Total operating loss for the “All Other” category | $ | (131 | ) | $ | (217 | ) | $ | (910 | ) | $ | (719 | ) | ||||||||
Significant Customer and Geographical Information | ||||||||||||||||||||
Sales to our significant customers, including sales to their manufacturing subcontractors, as a percentage of net revenue were as follows: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Two largest customers | 34.9 | % | 31.8 | % | 34.6 | % | 31.3 | % | ||||||||||||
Five largest customers as a group | 49.1 | 45.1 | 48.3 | 46.3 | ||||||||||||||||
The geographical distribution of our shipments, as a percentage of product revenue was as follows: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
China (exclusive of Hong Kong) | 25 | % | 28.6 | % | 22.9 | % | 29.3 | % | ||||||||||||
Hong Kong | 26.9 | 27.1 | 26.9 | 26.2 | ||||||||||||||||
Singapore, Taiwan, Thailand and Japan | 32.6 | 31.9 | 35.8 | 31.3 | ||||||||||||||||
United States | 4.2 | 3.3 | 3.5 | 3.6 | ||||||||||||||||
Europe | 1.8 | 2 | 1.8 | 1.7 | ||||||||||||||||
Other | 9.5 | 7.1 | 9.1 | 7.9 | ||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Restructuring_Costs
Restructuring Costs | 9 Months Ended | |
Sep. 30, 2013 | ||
Restructuring and Related Activities [Abstract] | ||
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Costs | |
On September 25, 2013 our Board of Directors approved and we initiated a global restructuring plan to reduce our expenses and better align our resources to areas of strategic focus. The plan focuses on cost reductions and operating efficiencies, including a reduction in our worldwide headcount and certain lease terminations. In addition, due to the purchase of the LTE-related assets from affiliates of Renesas Electronics Corporation, or REC, in October 2013, the Renesas Transaction (discussed in Note 12, “Subsequent Events”), we assumed certain restructuring liabilities (based on REC's previously announced winding down of certain affiliates of REC in June 2013). In connection with the closing of the Renesas Transaction, we determined that additional terminations of various Broadcom employees whose positions were expected to become redundant and additional lease terminations would be necessary. Notification to impacted employees was substantially complete on October 21, 2013. | ||
In connection with the restructuring plan we expect to record total costs of approximately $32 million. The following are details of each component of the restructuring plan: | ||
(i) | Up to 375 employees are expected to be terminated from across all business functions and geographical regions, for which we recorded $12 million of restructuring charges related to ongoing termination benefits in the three months ended September 30, 2013 as such expenses were probable and reasonably estimable. We expect to record approximately an additional $8 million of restructuring charges in the three months ending December 31, 2013 related to one-time termination benefits, which charges were precluded from being recorded until employee communication occurred in October 2013. | |
(ii) | Up to 350 individuals who became employees upon the closing of the Renesas Transaction will also be terminated. We will pay severance benefits to impacted employees, however REC is required to reimburse us up to $21 million for these benefits related to employees terminated prior to June 30, 2014. In the event additional severance benefits are given, we will record those as restructuring costs at that time. We expect to finalize the fair value of these restructuring liabilities and related indemnification receivable in the three months ending December 31, 2013. | |
(iii) | Up to 425 additional Broadcom employees will be terminated related to the elimination of certain redundant positions due to the Renesas Transaction, for which we expect to record approximately $12 million related to ongoing and one-time termination benefits in the three months ending December 31, 2013. Such charges were not recorded in the three months ended September 30, 2013, as those costs were contingent upon the closing of the Renesas Transaction. These employees are in our Mobile and Wireless reportable segment. | |
Restructuring costs are primarily comprised of cash-based severance. We expect to be substantially complete with the restructuring actions by December 31, 2013, however, due to various complexities in our international locations, including consulting with works councils or employee representatives in certain of our European sites, some employee terminations could be finalized after December 31, 2013. We anticipate most of the expenses to be paid by March 31, 2014. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events |
On October 1, 2013 we completed our acquisition of LTE-related assets from affiliates of REC. In connection with the acquisition we paid approximately $164 million in cash, subject to certain adjustments. In addition, as discussed in Note 11, under certain circumstances REC is required to reimburse us up to $21 million for severance benefits paid to acquired employees prior to June 30, 2014. We will allocate the purchase price to tangible assets, liabilities and identifiable intangible assets acquired based on estimated fair values during the three months ending December 31, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ||
Our Company | Our Company | |
Broadcom Corporation (including our subsidiaries, referred to collectively in this Report as “Broadcom,” “we,” “our” and “us”) is a global leader and innovator in semiconductor solutions for wired and wireless communications. Broadcom® products seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. We provide the industry’s broadest portfolio of state-of-the-art system-on-a-chip, or SoC, and embedded software solutions. | ||
Basis of Presentation | Basis of Presentation | |
The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and with the instructions to Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2012, included in our 2012 Annual Report on Form 10-K filed with the SEC on January 30, 2013, referred to as our 2012 Annual Report. | ||
The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our results of operations and financial position for the interim periods. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for future quarters or the full year. Certain amounts previously reported as licensing revenue have been reclassified to product revenue to conform to the current period presentation. Such reclassifications had an impact of $7 million and $18 million in the three and nine months ended September 30, 2012, respectively, and did not affect net income, shareholders' equity or cash flows. | ||
For a complete summary of our significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” in Part IV, Item 15 of our 2012 Annual Report. There have been no material changes to our significant accounting policies during the nine months ended September 30, 2013. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in accordance with United States generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of total net revenue and expenses in the reporting periods. We regularly evaluate estimates and assumptions related to revenue recognition, rebates, allowances for doubtful accounts, sales returns and allowances, warranty obligations, inventory valuation, stock-based compensation expense, goodwill and purchased intangible asset valuations, strategic investments, deferred income tax asset valuation allowances, uncertain tax positions, tax contingencies, self-insurance, restructuring costs or reversals, litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results we experience may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and actual results, our future results of operations will be affected. | ||
Segment Reporting, Policy | Broadcom has three reportable segments consistent with our target markets. Our three reportable segments are: Broadband Communications (Home), Mobile and Wireless (Hand), and Infrastructure and Networking (Infrastructure). Our Chief Executive Officer, who is our chief operating decision maker, or CODM, reviews financial information at the reportable segment level. | |
Our net revenue is generated principally from sales of integrated circuit products, the income we receive from the Qualcomm Agreement, and other licensing revenue. While we derive some revenue from other sources, that revenue is not material as it represents approximately 1% of our total net revenue. Such revenue is classified under product revenue for reporting purposes. We group our net revenue consistent with our three target markets which comprise our reportable segments, as discussed above. | ||
With respect to the sales of integrated circuit products, we have approximately 600 products that are grouped into approximately 60 product lines. We have concluded that these products constitute a group of similar products within each reportable segment in each of the following respects: | ||
• | the integrated circuits marketed by each of our reportable segments are sold to one type of customer: manufacturers of wired and wireless communications equipment, which incorporate our integrated circuits into their electronic products; | |
• | the integrated circuits sold by each of our reportable segments use the same standard CMOS manufacturing processes; and | |
• | all of our integrated circuits are sold through a centralized sales force and common wholesale distributors. | |
We also report an “All Other” category, which is income from the Qualcomm Agreement, since it was principally the result of corporate efforts, and also includes operating expenses that we do not allocate to our other operating segments as these expenses are not included in the segment operating performance measures evaluated by our CODM. Operating costs and expenses that are not allocated include stock-based compensation, amortization of purchased intangible assets, amortization of acquired inventory valuation step-up, impairment of goodwill and other long-lived assets, net settlement costs (gains), net restructuring costs, charitable contributions, non-recurring legal fees, change in contingent earnout liability, employer payroll tax on certain stock option exercises, and other miscellaneous expenses related to corporate allocations that were either over or under the original projections at the beginning of the year. We include stock-based compensation and acquisition-related items in the “All Other” category as decisions regarding equity compensation are made at the corporate level and our CODM reviews reportable segment performance exclusive of these charges. Our CODM does not review information regarding total assets, interest income or income taxes on an operating segment basis. The accounting policies for segment reporting are the same as for Broadcom as a whole. | ||
Earnings Per Share | Net income per share (basic) is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Net income per share (diluted) is calculated by adjusting outstanding shares, assuming any dilutive effects of stock options and restricted stock units calculated using the treasury stock method. Under the treasury stock method, an increase in the fair market value of our Class A common stock results in a greater dilutive effect from outstanding stock options, stock purchase rights and restricted stock units. Additionally, the exercise of employee stock options and stock purchase rights and the vesting of restricted stock units results in a further dilutive effect on net income per share. | |
Fair Value Measurements | Our financial instruments consist principally of cash and cash equivalents, short- and long-term marketable securities, accounts receivable, accounts payable and long-term debt. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | |
Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. | ||
Level 2:Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. | ||
Level 3:Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. | ||
The fair value of the majority of our cash equivalents and marketable securities was determined based on “Level 1” inputs. The fair value of certain marketable securities and our long-term debt were determined based on “Level 2” inputs. The valuation techniques used to measure the fair value of our “Level 2” instruments were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. We do not have any marketable securities in the “Level 3” category. We believe that the recorded values of all our other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Inventory | The following table presents details of our inventory: | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Work in process | $ | 211 | $ | 187 | ||||||||||||
Finished goods | 330 | 340 | ||||||||||||||
$ | 541 | $ | 527 | |||||||||||||
Accrued Liabilities | The following table presents details of our accrued liabilities included in current liabilities: | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Accrued rebates | $ | 522 | $ | 383 | ||||||||||||
Accrued royalties | 17 | 21 | ||||||||||||||
Accrued settlement charges | 60 | 68 | ||||||||||||||
Accrued legal costs | 18 | 15 | ||||||||||||||
Accrued taxes | 22 | 16 | ||||||||||||||
Warranty reserve | 11 | 13 | ||||||||||||||
Restructuring liabilities | 12 | — | ||||||||||||||
Other | 78 | 54 | ||||||||||||||
$ | 740 | $ | 570 | |||||||||||||
Other Long-Term Liabilities | The following table presents details of our other long-term liabilities: | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Deferred rent | $ | 48 | $ | 54 | ||||||||||||
Accrued taxes | 65 | 67 | ||||||||||||||
Deferred tax liabilities | 35 | 45 | ||||||||||||||
Accrued settlement charges | 28 | 58 | ||||||||||||||
Deferred revenue | 36 | 47 | ||||||||||||||
Other long-term liabilities | 21 | 23 | ||||||||||||||
$ | 233 | $ | 294 | |||||||||||||
Accrued Rebate Activity | The following table summarizes the activity related to accrued rebates: | |||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 383 | $ | 317 | ||||||||||||
Charged as a reduction of revenue | 617 | 512 | ||||||||||||||
Reversal of unclaimed rebates | (15 | ) | (8 | ) | ||||||||||||
Payments | (463 | ) | (441 | ) | ||||||||||||
Ending balance | $ | 522 | $ | 380 | ||||||||||||
Computation of Net Income Per Share | The following table presents the computation of net income per share: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Numerator: Net income | $ | 316 | $ | 220 | $ | 256 | $ | 468 | ||||||||
Denominator for net income per share (basic) | 571 | 561 | 573 | 555 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock awards | 7 | 18 | 12 | 19 | ||||||||||||
Denominator for net income per share (diluted) | 578 | 579 | 585 | 574 | ||||||||||||
Net income per share (basic) | $ | 0.55 | $ | 0.39 | $ | 0.45 | $ | 0.84 | ||||||||
Net income per share (diluted) | $ | 0.55 | $ | 0.38 | $ | 0.44 | $ | 0.82 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Cash and cash equivalents or short-term or long-term marketable securities | The following tables present our cash and marketable securities’ costs, gross unrealized gains, gross unrealized losses and fair value by major security type recorded as cash and cash equivalents or short-term or long-term marketable securities: | |||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 418 | $ | — | $ | — | $ | 418 | $ | 418 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 620 | — | — | 620 | 620 | — | — | |||||||||||||||||||||
Money market funds | 340 | — | — | 340 | 340 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,084 | 1 | (1 | ) | 1,084 | — | 191 | 893 | ||||||||||||||||||||
Subtotal | 2,044 | 1 | (1 | ) | 2,044 | 960 | 191 | 893 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 252 | — | — | 252 | 146 | 106 | — | |||||||||||||||||||||
Corporate bonds | 1,575 | 2 | (1 | ) | 1,576 | — | 559 | 1,017 | ||||||||||||||||||||
Asset-backed securities and other | 54 | — | — | 54 | — | 24 | 30 | |||||||||||||||||||||
Subtotal | 1,881 | 2 | (1 | ) | 1,882 | 146 | 689 | 1,047 | ||||||||||||||||||||
Total | $ | 4,343 | $ | 3 | $ | (2 | ) | $ | 4,344 | $ | 1,524 | $ | 880 | $ | 1,940 | |||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 213 | $ | — | $ | — | $ | 213 | $ | 213 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 904 | — | — | 904 | 884 | 20 | — | |||||||||||||||||||||
Money market funds | 250 | — | — | 250 | 250 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 936 | 1 | — | 937 | — | 201 | 736 | |||||||||||||||||||||
Corporate bonds | 1 | — | — | 1 | — | 1 | — | |||||||||||||||||||||
Subtotal | 2,091 | 1 | — | 2,092 | 1,134 | 222 | 736 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 432 | — | — | 432 | 270 | 162 | — | |||||||||||||||||||||
Corporate bonds | 921 | 2 | (1 | ) | 922 | — | 351 | 571 | ||||||||||||||||||||
Asset-backed securities and other | 63 | — | — | 63 | — | 22 | 41 | |||||||||||||||||||||
Subtotal | 1,416 | 2 | (1 | ) | 1,417 | 270 | 535 | 612 | ||||||||||||||||||||
Total | $ | 3,720 | $ | 3 | $ | (1 | ) | $ | 3,722 | $ | 1,617 | $ | 757 | $ | 1,348 | |||||||||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Tax Provision [Table Text Block] | The following table presents details of the provision for (benefit of) income taxes and our effective tax rates: | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In millions, except percentages) | ||||||||||||||
Provision for (benefit of) income taxes | $ | 9 | $ | (9 | ) | 8 | (62 | ) | ||||||
Effective tax rates | 2.8 | % | (4.3 | )% | 3 | % | (15.3 | )% |
Debt_and_Credit_Facility_Table
Debt and Credit Facility (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Debt Disclosure [Abstract] | ||||
Summary of debt | The following table presents details of our senior notes, or Notes: | |||
September 30, | ||||
2013 | ||||
(In millions) | ||||
1.500% fixed-rate notes, due 2013 | $ | 300 | ||
2.375% fixed-rate notes, due 2015 | 400 | |||
2.700% fixed-rate notes, due 2018 | 500 | |||
2.500% fixed-rate notes, due 2022 | 500 | |||
$ | 1,700 | |||
Unaccreted discount | (6 | ) | ||
Less current portion of long-term debt | (300 | ) | ||
$ | 1,394 | |||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Restricted stock unit activity | Restricted stock unit activity is set forth below: | |||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||
Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2012 | 25 | $ | 35.55 | |||||||||||||||||||||
Restricted stock units granted | 14 | 33.42 | ||||||||||||||||||||||
Restricted stock units cancelled | (2 | ) | 35.22 | |||||||||||||||||||||
Restricted stock units vested | (10 | ) | 33.85 | |||||||||||||||||||||
Balance at September 30, 2013 | 27 | $ | 35.14 | |||||||||||||||||||||
Activity under all stock option incentive plans | Stock option activity is set forth below: | |||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Exercise | ||||||||||||||||||||||||
Price | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2012 | 58 | $ | 28.11 | |||||||||||||||||||||
Options cancelled | (1 | ) | 40.36 | |||||||||||||||||||||
Options exercised | (10 | ) | 22.16 | |||||||||||||||||||||
Balance at September 30, 2013 | 47 | $ | 29.23 | |||||||||||||||||||||
Unearned stock-based compensation estimated to be expensed related to unvested share-based payment awards | The following table presents details of unearned stock-based compensation currently estimated to be expensed in the remainder of 2013 through 2017 related to unvested share-based payment awards: | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Unearned stock-based compensation | $ | 119 | $ | 374 | $ | 236 | $ | 124 | $ | 19 | $ | 872 | ||||||||||||
Goodwill_and_Other_Purchased_I1
Goodwill and Other Purchased Intangible Assets Goodwill and Other Purchased Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||
Goodwill | The following table summarizes the activity related to the carrying value of our goodwill: | |||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Broadband | Mobile and | Infrastructure | Foreign | Consolidated | ||||||||||||||||||||||||
Communications | Wireless | and Networking | Currency | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Goodwill | $ | 770 | $ | 1,013 | $ | 3,778 | $ | (6 | ) | $ | 5,555 | |||||||||||||||||
Accumulated impairment losses | — | (543 | ) | (1,286 | ) | — | (1,829 | ) | ||||||||||||||||||||
Goodwill at December 31, 2012 | $ | 770 | $ | 470 | $ | 2,492 | $ | (6 | ) | $ | 3,726 | |||||||||||||||||
Effects of foreign currency translation | — | — | — | 17 | 17 | |||||||||||||||||||||||
Goodwill at September 30, 2013 | $ | 770 | $ | 470 | $ | 2,492 | $ | 11 | $ | 3,743 | ||||||||||||||||||
Purchased Intangible Assets | The following table presents details of our purchased intangible assets: | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Developed technology | $ | 1,403 | $ | (495 | ) | $ | 908 | $ | 1,748 | $ | (443 | ) | $ | 1,305 | ||||||||||||||
In-process research and development | 129 | — | 129 | 311 | — | 311 | ||||||||||||||||||||||
Customer relationships | 232 | (164 | ) | 68 | 380 | (222 | ) | 158 | ||||||||||||||||||||
Other | 33 | (26 | ) | 7 | 37 | (25 | ) | 12 | ||||||||||||||||||||
$ | 1,797 | $ | (685 | ) | $ | 1,112 | $ | 2,476 | $ | (690 | ) | $ | 1,786 | |||||||||||||||
Amortization of Purchased Intangible Assets | The following table presents details of the amortization of purchased intangible assets included in the cost of product revenue and other operating expense categories: | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 42 | $ | 55 | $ | 129 | $ | 148 | ||||||||||||||||||||
Other operating expenses | 14 | 32 | 43 | 82 | ||||||||||||||||||||||||
$ | 56 | $ | 87 | $ | 172 | $ | 230 | |||||||||||||||||||||
Amortization of Existing Purchased Intangible Assets | The following table presents details of the amortization of existing purchased intangible assets (including IPR&D), which is currently estimated to be expensed in the remainder of 2013 and thereafter: | |||||||||||||||||||||||||||
Purchased Intangible Asset Amortization by Year | ||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 41 | $ | 180 | $ | 172 | $ | 151 | $ | 131 | $ | 362 | $ | 1,037 | ||||||||||||||
Other operating expenses | 14 | 34 | 13 | 6 | 2 | 6 | 75 | |||||||||||||||||||||
$ | 55 | $ | 214 | $ | 185 | $ | 157 | $ | 133 | $ | 368 | $ | 1,112 | |||||||||||||||
Business_Enterprise_Segments_S1
Business Enterprise Segments, Significant Customer and Geographical Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Reportable segments and the All Other category | The following tables present details of our reportable segments and the “All Other” category: | |||||||||||||||||||
Reportable Segments | ||||||||||||||||||||
Broadband Communications | Mobile and Wireless | Infrastructure and Networking | All Other | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Net revenue | $ | 567 | $ | 1,015 | $ | 564 | $ | — | $ | 2,146 | ||||||||||
Operating income (loss) | 148 | 114 | 205 | (131 | ) | 336 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Net revenue | $ | 557 | $ | 1,023 | $ | 505 | $ | 43 | $ | 2,128 | ||||||||||
Operating income (loss) | 131 | 157 | 140 | (217 | ) | 211 | ||||||||||||||
Reportable Segments | ||||||||||||||||||||
Broadband Communications | Mobile and Wireless | Infrastructure and Networking | All Other | Consolidated | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Net revenue | $ | 1,672 | $ | 2,979 | $ | 1,504 | $ | 86 | $ | 6,241 | ||||||||||
Operating income (loss) | 409 | 333 | 454 | (910 | ) | 286 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Net revenue | $ | 1,594 | $ | 2,798 | $ | 1,391 | $ | 143 | $ | 5,926 | ||||||||||
Operating income (loss) | 365 | 404 | 363 | (719 | ) | 413 | ||||||||||||||
All other category included | ||||||||||||||||||||
Included In All Other Category: | Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Net revenue | $ | — | $ | 43 | $ | 86 | $ | 143 | ||||||||||||
Stock-based compensation | $ | 125 | $ | 128 | $ | 401 | $ | 415 | ||||||||||||
Amortization of purchased intangible assets | 56 | 87 | 172 | 230 | ||||||||||||||||
Amortization of acquired inventory valuation step-up | — | 7 | 1 | 72 | ||||||||||||||||
Impairments of long-lived assets | — | 48 | 511 | 85 | ||||||||||||||||
Settlement costs (gains) | (75 | ) | (2 | ) | (75 | ) | 86 | |||||||||||||
Restructuring costs, net | 12 | 2 | 12 | 6 | ||||||||||||||||
Charitable contribution | 25 | — | 25 | — | ||||||||||||||||
Employer payroll tax on certain stock option exercises | 1 | 4 | 4 | 8 | ||||||||||||||||
Miscellaneous corporate allocation variances | (13 | ) | (14 | ) | (55 | ) | (40 | ) | ||||||||||||
Total other operating costs and expenses | $ | 131 | $ | 260 | $ | 996 | $ | 862 | ||||||||||||
Total operating loss for the “All Other” category | $ | (131 | ) | $ | (217 | ) | $ | (910 | ) | $ | (719 | ) | ||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Sales to our significant customers, including sales to their manufacturing subcontractors, as a percentage of net revenue were as follows: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Two largest customers | 34.9 | % | 31.8 | % | 34.6 | % | 31.3 | % | ||||||||||||
Five largest customers as a group | 49.1 | 45.1 | 48.3 | 46.3 | ||||||||||||||||
Percentage of product revenue from shipments by geographic region | The geographical distribution of our shipments, as a percentage of product revenue was as follows: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
China (exclusive of Hong Kong) | 25 | % | 28.6 | % | 22.9 | % | 29.3 | % | ||||||||||||
Hong Kong | 26.9 | 27.1 | 26.9 | 26.2 | ||||||||||||||||
Singapore, Taiwan, Thailand and Japan | 32.6 | 31.9 | 35.8 | 31.3 | ||||||||||||||||
United States | 4.2 | 3.3 | 3.5 | 3.6 | ||||||||||||||||
Europe | 1.8 | 2 | 1.8 | 1.7 | ||||||||||||||||
Other | 9.5 | 7.1 | 9.1 | 7.9 | ||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prior Period Reclassification Adjustment | $7 | $18 |
Supplemental_Financial_Informa2
Supplemental Financial Information (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory | ||
Work in process | $211 | $187 |
Finished goods | 330 | 340 |
Inventory, net | $541 | $527 |
Supplemental_Financial_Informa3
Supplemental Financial Information (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Accrued Liabilities, Current [Abstract] | ||||
Accrued rebates | $522 | $383 | $380 | $317 |
Accrued royalties | 17 | 21 | ||
Accrued settlement charges | 60 | 68 | ||
Accrued legal costs | 18 | 15 | ||
Accrued taxes | 22 | 16 | ||
Warranty reserve | 11 | 13 | ||
Restructuring liabilities | 12 | 0 | ||
Other | 78 | 54 | ||
Accrued liabilities | 740 | 570 | ||
Other Liabilities, Noncurrent [Abstract] | ||||
Deferred rent | 48 | 54 | ||
Accrued taxes | 65 | 67 | ||
Deferred tax liabilities | 35 | 45 | ||
Accrued settlement charges | 28 | 58 | ||
Deferred revenue | 36 | 47 | ||
Other long-term liabilities | 21 | 23 | ||
Other long-term liabilities, Total | $233 | $294 |
Supplemental_Financial_Informa4
Supplemental Financial Information (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accrued Rebate Activity | ||||
Beginning balance | $383 | $317 | ||
Charged as a reduction of revenue | 264 | 216 | 617 | 512 |
Reversal of unclaimed rebates | -15 | -8 | ||
Payments | -463 | -441 | ||
Ending balance | $522 | $380 | $522 | $380 |
Supplemental_Financial_Informa5
Supplemental Financial Information (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ||||
Numerator: Net income | $316 | $220 | $256 | $468 |
Denominator for net income per share (basic) (shares) | 571 | 561 | 573 | 555 |
Effect of dilutive securities: | ||||
Stock awards (shares) | 7 | 18 | 12 | 19 |
Denominator for net income per share (diluted) (shares) | 578 | 579 | 585 | 574 |
Net income per share (basic) (usd per share) | $0.55 | $0.39 | $0.45 | $0.84 |
Net income per share (diluted) (usd per share) | $0.55 | $0.38 | $0.44 | $0.82 |
Supplemental_Financial_Informa6
Supplemental Financial Information (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Rebates Charged as reduction of revenue | $264 | $216 | $617 | $512 |
Anti-dilutive common share equivalents (shares) | 47 | 26 | 39 | 23 |
Payments related to capital equipment purchase | 27 | |||
Capital equipment that were accrued but not yet paid | 18 | |||
Charitable Contribution | $25 | $0 | $25 | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross Unrealized Losses | ($2) | |||
Cash and cash equivalents | 1,524 | 1,617 | 1,416 | 4,146 |
Short-term marketable securities | 880 | 757 | ||
Long-term marketable securities | 1,940 | 1,348 | ||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 4,343 | 3,720 | ||
Gross Unrealized Gains | 3 | 3 | ||
Gross Unrealized Losses | -2 | -1 | ||
Fair Value | 4,344 | 3,722 | ||
Cash and cash equivalents | 1,524 | 1,617 | ||
Short-term marketable securities | 880 | 757 | ||
Long-term marketable securities | 1,940 | 1,348 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 2,044 | 2,091 | ||
Gross Unrealized Gains | 1 | 1 | ||
Gross Unrealized Losses | -1 | 0 | ||
Fair Value | 2,044 | 2,092 | ||
Cash and cash equivalents | 960 | 1,134 | ||
Short-term marketable securities | 191 | 222 | ||
Long-term marketable securities | 893 | 736 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 1,881 | 1,416 | ||
Gross Unrealized Gains | 2 | 2 | ||
Gross Unrealized Losses | -1 | -1 | ||
Fair Value | 1,882 | 1,417 | ||
Cash and cash equivalents | 146 | 270 | ||
Short-term marketable securities | 689 | 535 | ||
Long-term marketable securities | 1,047 | 612 | ||
Fair Value, Measurements, Recurring [Member] | Asset-backed securities and other [Member] | Level 2 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 54 | 63 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 54 | 63 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable securities | 24 | 22 | ||
Long-term marketable securities | 30 | 41 | ||
Fair Value, Measurements, Recurring [Member] | Cash [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 418 | 213 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 418 | 213 | ||
Cash and cash equivalents | 418 | 213 | ||
Short-term marketable securities | 0 | 0 | ||
Long-term marketable securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Bank and time deposits [Member] | Level 1 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 620 | 904 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 620 | 904 | ||
Cash and cash equivalents | 620 | 884 | ||
Short-term marketable securities | 0 | 20 | ||
Long-term marketable securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Level 1 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 340 | 250 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 340 | 250 | ||
Cash and cash equivalents | 340 | 250 | ||
Short-term marketable securities | 0 | 0 | ||
Long-term marketable securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | U.S. treasury and agency obligations [Member] | Level 1 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 1,084 | 936 | ||
Gross Unrealized Gains | 1 | 1 | ||
Gross Unrealized Losses | -1 | 0 | ||
Fair Value | 1,084 | 937 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable securities | 191 | 201 | ||
Long-term marketable securities | 893 | 736 | ||
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Level 1 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 1 | |||
Gross Unrealized Gains | 0 | |||
Gross Unrealized Losses | 0 | |||
Fair Value | 1 | |||
Cash and cash equivalents | 0 | |||
Short-term marketable securities | 1 | |||
Long-term marketable securities | 0 | |||
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Level 2 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 1,575 | 921 | ||
Gross Unrealized Gains | 2 | 2 | ||
Gross Unrealized Losses | -1 | -1 | ||
Fair Value | 1,576 | 922 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable securities | 559 | 351 | ||
Long-term marketable securities | 1,017 | 571 | ||
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Level 2 [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Cost | 252 | 432 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 252 | 432 | ||
Cash and cash equivalents | 146 | 270 | ||
Short-term marketable securities | 106 | 162 | ||
Long-term marketable securities | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
investment | ||
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | |
Available for Sale Debt maturities min date | 1 year | |
Available for sale securities max maturity | 3 years | |
Cash, cash equivalents and short term investments held domestically | 2,090,000,000 | |
Cash, cash equivalents and short-term investments held by our foreign subsidiaries | 2,250,000,000 | |
Number of investments in unrealized loss position | 161 | |
Fair market value of investments | 919,000,000 | |
Period for unrealized loss position | less than 12 months | |
Gross unrealized losses on available-for-sale securities | 2,000,000 | |
Fair Value Measurements, Valuation Techniques | based primarily on quoted market prices for the same or similar issues | |
Long-term Debt, Fair Value | $1,680,000,000 | $1,750,000,000 |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit of) income taxes | $9 | ($9) | $8 | ($62) |
Effective tax rates | 2.80% | -4.30% | 3.00% | -15.30% |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ||||||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ||
Gain (Loss) Related to Litigation Settlement | $75 | $2 | $75 | ($86) | ||
Impairment of Intangible Assets (Excluding Goodwill) | 501 | |||||
Impairments of long-lived assets | 0 | 48 | 511 | 85 | ||
Deferred tax benefit from inangible asset impairment | 12 | 10 | 12 | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 3 | 3 | ||||
Tax benefit from the expiration of statutes of limitations | 9 | 7 | ||||
Tax benefit from reductions in our US valuation allowance on deferred tax assets | 51 | |||||
Net deferred tax liabilities | $17 | $17 | $29 |
Debt_and_Credit_Facility_Detai
Debt and Credit Facility (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of debt | ||
Total | $1,700 | |
Unaccreted discount | -6 | |
Less current portion of long-term debt | -300 | -300 |
Total | 1,394 | 1,393 |
1.500% Fixed Rate Notes Due 2013 [Member] | ||
Summary of debt | ||
Total | 300 | |
Fixed interest rate on senior note | 1.50% | |
2.375% Fixed Rate Notes Due 2015 [Member] | ||
Summary of debt | ||
Total | 400 | |
Fixed interest rate on senior note | 2.38% | |
2.700% Fixed Rate Notes Due 2018 [Member] | ||
Summary of debt | ||
Total | 500 | |
Fixed interest rate on senior note | 2.70% | |
2.500% Fixed Rate Notes Due 2022 [Member] | ||
Summary of debt | ||
Total | $500 | |
Fixed interest rate on senior note | 2.50% |
Debt_and_Credit_Facility_Detai1
Debt and Credit Facility (Details Textual) (USD $) | 1 Months Ended | 9 Months Ended | |
Nov. 30, 2011 | Sep. 30, 2013 | Nov. 01, 2010 | |
Debt Disclosure [Abstract] | |||
Interest cover ratio | 300.00% | ||
Leverage ratio | 3.25 | ||
Line of Credit Facility, Covenant Terms | The credit facility contains customary representations, warranties and covenants. Financial covenants require us to maintain a consolidated leverage ratio of no more than 3.25Â to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. | ||
Credit Facitlity Extension | 2 years | ||
Unsecured revolving facility loans aggregate available amount to be drawn | $500,000,000 | ||
Amount outstanding on line of credit facility | $0 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 |
Equity [Abstract] | ||||||
Percentage increase in cash dividend | 10.00% | |||||
Dividend declared per share (usd per share) | $0.11 | $0.11 | $0.10 | $0.33 | $0.30 | $0.44 |
Dividends paid | ($63) | ($56) | ($190) | ($167) | ||
Stock repurchased during period (shares) | 13.6 | 20.1 | ||||
Weighted average repurchase price (usd per share) | $27.70 | $29.60 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (Restricted Stock Unit [Member], USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Restricted Stock Unit [Member] | |
Restricted stock unit activity, Number of shares | |
Balance at December 31, 2012, Number of Shares | 25 |
Restricted stock units granted, Number of Shares | 14 |
Restricted stock units cancelled, Number of Shares | -2 |
Restricted stock units vested, Number of Shares | -10 |
Balance at September 30, 2013, Number of Shares | 27 |
Restricted stock unit activity, Weighted average grant-date fair value per share | |
Balance at December 31, 2012, Weighted Average Grant-Date Fair Value per Share (usd per share) | $35.55 |
Restricted stock units granted, Weighted Average Grant Date Fair Value per share (usd per share) | $33.42 |
Restricted stock units cancelled, Weighted Average Grant-date Fair Value per Share (usd per share) | $35.22 |
Restricted stock units vested, Weighted Average Grant-Date Fair Value per Share (usd per share) | $33.85 |
Balance at September 30, 2013, Weighted Average Grant-Date Fair Value per Share (usd per share) | $35.14 |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 1) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Activity under stock option incentive plans | |
Balance at December 31, 2012, Number of Shares | 58 |
Options cancelled, Number of Shares | -1 |
Options exercised, Number of Shares | -10 |
Balance at September 30, 2013, Number of Shares | 47 |
Stock option activity, Weighted average exercise price per share | |
Balance at December 31, 2012, Weighted Average Exercise Price per Share (usd per share) | $28.11 |
Options cancelled, Weighted Average Exercise Price per Share (usd per share) | $40.36 |
Options exercised, Weighted Average Exercise Price per Share (usd per share) | $22.16 |
Balance at September 30, 2013, Weighted Average Exercise Price per Share (usd per share) | $29.23 |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 2) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Unearned stock-based compensation estimated to be expensed related to unvested share-based payment awards | |
2013 | $119 |
2014 | 374 |
2015 | 236 |
2016 | 124 |
2017 | 19 |
Total | $872 |
Commitments_and_Contingencies_
Commitments and Contingencies Settlement Costs (Gains) and Other Related Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Settlement costs (gains) | ($75) | ($2) | ($75) | $86 |
Litigation Settlement, Amount | ($88) |
Goodwill_and_Other_Purchased_I2
Goodwill and Other Purchased Intangible Assets (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ||
Goodwill | $5,555 | |
Accumulated impairment losses | -1,829 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2012 | 3,726 | |
Effects of foreign currency translation | 17 | |
Goodwill at September 30, 2013 | 3,743 | |
Broadband Communications [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 770 | |
Accumulated impairment losses | 0 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2012 | 770 | |
Effects of foreign currency translation | 0 | |
Goodwill at September 30, 2013 | 770 | |
Mobile and Wireless [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,013 | |
Accumulated impairment losses | -543 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2012 | 470 | |
Effects of foreign currency translation | 0 | |
Goodwill at September 30, 2013 | 470 | |
Infrastructure and Networking [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 3,778 | |
Accumulated impairment losses | -1,286 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2012 | 2,492 | |
Effects of foreign currency translation | 0 | |
Goodwill at September 30, 2013 | 2,492 | |
Foreign Currency [Member] | ||
Goodwill [Line Items] | ||
Goodwill | -6 | |
Accumulated impairment losses | 0 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2012 | -6 | |
Effects of foreign currency translation | 17 | |
Goodwill at September 30, 2013 | $11 |
Goodwill_and_Other_Purchased_I3
Goodwill and Other Purchased Intangible Assets (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $1,797 | $2,476 |
Accumulated Amortization | -685 | -690 |
Net | 1,112 | 1,786 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 232 | 380 |
Accumulated Amortization | -164 | -222 |
Net | 68 | 158 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,403 | 1,748 |
Accumulated Amortization | -495 | -443 |
Net | 908 | 1,305 |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 129 | 311 |
Accumulated Amortization | 0 | 0 |
Net | 129 | 311 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 33 | 37 |
Accumulated Amortization | -26 | -25 |
Net | $7 | $12 |
Goodwill_and_Other_Purchased_I4
Goodwill and Other Purchased Intangible Assets (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | $172 | $230 | ||
Cost of product revenue [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | 42 | 55 | 129 | 148 |
Other operating expense [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | 14 | 32 | 43 | 82 |
All Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | $56 | $87 | $172 | $230 |
Goodwill_and_Other_Purchased_I5
Goodwill and Other Purchased Intangible Assets (Details 3) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets Future Amortization [Line Items] | |
2013 | $55 |
2014 | 214 |
2015 | 185 |
2016 | 157 |
2017 | 133 |
Thereafter | 368 |
Total | 1,112 |
Cost of product revenue [Member] | |
Finite-Lived Intangible Assets Future Amortization [Line Items] | |
2013 | 41 |
2014 | 180 |
2015 | 172 |
2016 | 151 |
2017 | 131 |
Thereafter | 362 |
Total | 1,037 |
Other operating expense [Member] | |
Finite-Lived Intangible Assets Future Amortization [Line Items] | |
2013 | 14 |
2014 | 34 |
2015 | 13 |
2016 | 6 |
2017 | 2 |
Thereafter | 6 |
Total | $75 |
Goodwill_and_Other_Purchased_I6
Goodwill and Other Purchased Intangible Assets (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 01, 2013 | Oct. 02, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
Net Logic [Member] | Provigent [Member] | Provigent [Member] | Beceem Communications Inc [Member] | Dune Networks [Member] | Finite-Lived Intangible Assets, Major Class Name [Domain] | Finite-Lived Intangible Assets, Major Class Name [Domain] | Finite-Lived Intangible Assets, Major Class Name [Domain] | Reporting Unit [Member] | Reporting Unit [Member] | Reporting Unit [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Other Intangible Assets [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | In Process Research and Development [Member] | In Process Research and Development [Member] | |||||||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Knowledge and embedded processors [Member] | Net Logic [Member] | Knowledge and embedded processors [Member] | Digital Front End [Member] | Knowledge and embedded processors [Member] | ||||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | |||||||||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||||||||||||||||||
Reclassified intangible assets | $83 | |||||||||||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 501 | 461 | 40 | 10 | 6 | 28 | 50 | 48 | 2 | 358 | 238 | 87 | 91 | 88 | ||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 0 | 48 | 511 | 85 | ||||||||||||||||||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 20.00% | 19.00% | ||||||||||||||||||||||||||
Tangible Asset Impairment Charges | $3 | |||||||||||||||||||||||||||
Fair value measurements, valuation processes, description | multiple period excess earnings method | |||||||||||||||||||||||||||
Fair value inputs, discount rate | 15.00% | 24.00% | 10.00% | 14.00% | ||||||||||||||||||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | 3.00% | 4.00% | ||||||||||||||||||||||||||
Tax rate | 15.00% | 15.00% |
Business_Enterprise_Segments_S2
Business Enterprise Segments, Significant Customer and Geographical Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Details of reportable segments | ||||
Net revenue | $2,146 | $2,128 | $6,241 | $5,926 |
Operating income (loss) | 336 | 211 | 286 | 413 |
Operating Segments [Member] | Broadband Communications [Member] | ||||
Details of reportable segments | ||||
Net revenue | 567 | 557 | 1,672 | 1,594 |
Operating income (loss) | 148 | 131 | 409 | 365 |
Operating Segments [Member] | Mobile and Wireless [Member] | ||||
Details of reportable segments | ||||
Net revenue | 1,015 | 1,023 | 2,979 | 2,798 |
Operating income (loss) | 114 | 157 | 333 | 404 |
Operating Segments [Member] | Infrastructure and Networking [Member] | ||||
Details of reportable segments | ||||
Net revenue | 564 | 505 | 1,504 | 1,391 |
Operating income (loss) | 205 | 140 | 454 | 363 |
All Other [Member] | ||||
Details of reportable segments | ||||
Net revenue | 0 | 43 | 86 | 143 |
Operating income (loss) | ($131) | ($217) | ($910) | ($719) |
Business_Enterprise_Segments_S3
Business Enterprise Segments, Significant Customer and Geographical Information (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Net revenue | $2,146 | $2,128 | $6,241 | $5,926 |
Stock-based compensation | 401 | 415 | ||
Amortization of purchased intangible assets | 172 | 230 | ||
Impairments of long-lived assets | 0 | 48 | 511 | 85 |
Settlement costs (gains) | -75 | -2 | -75 | 86 |
Restructuring costs | 12 | 2 | 12 | 6 |
Charitable Contribution | 25 | 0 | 25 | 0 |
Income from operations | 336 | 211 | 286 | 413 |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 0 | 43 | 86 | 143 |
Stock-based compensation | 125 | 128 | 401 | 415 |
Amortization of purchased intangible assets | 56 | 87 | 172 | 230 |
Amortization of acquired inventory valuation step-up | 0 | 7 | 1 | 72 |
Impairments of long-lived assets | 0 | 48 | 511 | 85 |
Settlement costs (gains) | -75 | -2 | -75 | 86 |
Restructuring costs | 12 | 2 | 12 | 6 |
Charitable Contribution | 25 | 0 | 25 | 0 |
Employer payroll tax on certain stock option exercises | 1 | 4 | 4 | 8 |
Miscellaneous corporate allocation variances | -13 | -14 | -55 | -40 |
Total other operating costs and expenses | 131 | 260 | 996 | 862 |
Income from operations | ($131) | ($217) | ($910) | ($719) |
Business_Enterprise_Segments_S4
Business Enterprise Segments, Significant Customer and Geographical Information (Details 2) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Percentage of product revenue | ||||
Percentage of product revenue | 100.00% | 100.00% | 100.00% | 100.00% |
China (exclusive of Hong Kong) [Member] | ||||
Percentage of product revenue | ||||
Percentage of product revenue | 25.00% | 28.60% | 22.90% | 29.30% |
Hong Kong [Member] | ||||
Percentage of product revenue | ||||
Percentage of product revenue | 26.90% | 27.10% | 26.90% | 26.20% |
Singapore, Taiwan, Thailand and Japan [Member] | ||||
Percentage of product revenue | ||||
Percentage of product revenue | 32.60% | 31.90% | 35.80% | 31.30% |
United States [Member] | ||||
Percentage of product revenue | ||||
Percentage of product revenue | 4.20% | 3.30% | 3.50% | 3.60% |
Europe [Member] | ||||
Percentage of product revenue | ||||
Percentage of product revenue | 1.80% | 2.00% | 1.80% | 1.70% |
Other [Member] | ||||
Percentage of product revenue | ||||
Percentage of product revenue | 9.50% | 7.10% | 9.10% | 7.90% |
Business_Enterprise_Segments_S5
Business Enterprise Segments, Significant Customer and Geographical Information Business Enterprise Segments, Significant Customer and Geographical Informaiton (Details 3) (Sales [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Two largest customers [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of net revenue | 34.90% | 31.80% | 34.60% | 31.30% |
Five largest customers as a group [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of net revenue | 49.10% | 45.10% | 48.30% | 46.30% |
Business_Enterprise_Segments_S6
Business Enterprise Segments, Significant Customer and Geographical Information (Details Textual) | 9 Months Ended |
Sep. 30, 2013 | |
product | |
product_line | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Net revenue from other sources | 1.00% |
Number of products | 600 |
Number of product lines | 60 |
Restructuring_Costs_Details_Te
Restructuring Costs (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Oct. 01, 2013 |
2013 Cost Reduction Plan [Member] | Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | Renesas Business Acquisition [Member] | Mobile and Wireless [Member] | All Other [Member] | All Other [Member] | All Other [Member] | All Other [Member] | All Other [Member] | Subsequent Event [Member] | |||||
employees | Operating Expense [Member] | 2013 Cost Reduction Plan [Member] | MWG Reduction Plan [Member] | Renesas Reduction Plan [Member] | MWG Reduction Plan [Member] | Employee Severance [Member] | Renesas Business Acquisition [Member] | |||||||||
Operating Expense [Member] | Operating Expense [Member] | employees | employees | 2013 Cost Reduction Plan [Member] | ||||||||||||
Operating Expense [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Cost, Expected Cost | $32 | |||||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 375 | 350 | 425 | |||||||||||||
Business Combination, Indemnification Assets, Range of Outcomes, Value, High | 21 | |||||||||||||||
Restructuring Charges | 12 | 2 | 12 | 6 | 12 | 2 | 12 | 6 | 12 | |||||||
Restructuring and Related Cost, Expected Cost Remaining | $8 | $12 |
Subsequent_Events_Details
Subsequent Events (Details) (Renesas Business Acquisition [Member], Subsequent Event [Member], USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Oct. 03, 2013 | Oct. 01, 2013 |
Renesas Business Acquisition [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Subsequent Event, Date | 1-Oct-13 | |
Payments to Acquire Businesses, Gross | $164 | |
Business Combination, Indemnification Assets, Range of Outcomes, Value, High | ($21) |