Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Entity Registrant Name | 'BROADCOM CORP |
Entity Central Index Key | '0001054374 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-14 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Common Class A | ' |
Shares outstanding | 542 |
Common Class B | ' |
Shares outstanding | 50 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $2,254 | $1,657 |
Short-term marketable securities | 1,068 | 775 |
Accounts receivable, net | 938 | 795 |
Inventory | 624 | 525 |
Prepaid expenses and other current assets | 140 | 163 |
Total current assets | 5,024 | 3,915 |
Property and equipment, net | 503 | 593 |
Long-term marketable securities | 2,098 | 1,939 |
Goodwill | 3,734 | 3,793 |
Purchased intangible assets, net | 711 | 1,144 |
Other assets | 145 | 111 |
Total assets | 12,215 | 11,495 |
Current liabilities: | ' | ' |
Accounts payable | 673 | 585 |
Wages and related benefits | 244 | 243 |
Deferred revenue and income | 39 | 21 |
Accrued liabilities | 755 | 647 |
Total current liabilities | 1,711 | 1,496 |
Long-term debt | 1,593 | 1,394 |
Other long-term liabilities | 288 | 234 |
Commitments and contingencies | ' | ' |
Shareholders’ equity: | ' | ' |
Common stock | 0 | 0 |
Additional paid-in capital | 12,510 | 12,475 |
Accumulated deficit | -3,845 | -4,107 |
Accumulated other comprehensive income | -42 | 3 |
Total shareholders’ equity | 8,623 | 8,371 |
Total liabilities and shareholders’ equity | $12,215 | $11,495 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net revenue: | ' | ' | ' | ' |
Product revenue | $2,260 | $2,146 | $6,285 | $6,155 |
Income from Qualcomm Agreement | 0 | 0 | 0 | 86 |
Total net revenue | 2,260 | 2,146 | 6,285 | 6,241 |
Costs and expenses: | ' | ' | ' | ' |
Cost of product revenue | 1,077 | 1,044 | 3,086 | 3,062 |
Research and development | 573 | 609 | 1,843 | 1,843 |
Selling, general and administrative | 176 | 181 | 543 | 534 |
Amortization of purchased intangible assets | 8 | 14 | 26 | 43 |
Impairments of long-lived assets | 200 | 0 | 390 | 511 |
Restructuring costs, net | 114 | 12 | 142 | 12 |
Settlement costs (gains) | 2 | -75 | 20 | -75 |
Other charges (gains), net | -1 | 25 | -60 | 25 |
Total operating costs and expenses | 2,149 | 1,810 | 5,990 | 5,955 |
Income from operations | 111 | 336 | 295 | 286 |
Interest expense, net | -17 | -7 | -27 | -24 |
Other income (expense), net | 9 | -4 | 4 | 2 |
Income before income taxes | 103 | 325 | 272 | 264 |
Provision for income taxes | 5 | 9 | 10 | 8 |
Net income | $98 | $316 | $262 | $256 |
Net income per share (basic) (usd per share) | $0.17 | $0.55 | $0.45 | $0.45 |
Net income per share (diluted) (usd per share) | $0.16 | $0.55 | $0.44 | $0.44 |
Weighted average shares (basic) (shares) | 591 | 571 | 587 | 573 |
Weighted average shares (diluted) (shares) | 607 | 578 | 598 | 585 |
Dividends per share (usd per share) | $0.12 | $0.11 | $0.36 | $0.33 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cost of product revenue | ' | ' | ' | ' |
Details of total stock-based compensation expense by statement functional line | ' | ' | ' | ' |
Stock-based compensation expense | $6 | $6 | $17 | $19 |
Research and development | ' | ' | ' | ' |
Details of total stock-based compensation expense by statement functional line | ' | ' | ' | ' |
Stock-based compensation expense | 73 | 86 | 237 | 280 |
Selling, general and administrative | ' | ' | ' | ' |
Details of total stock-based compensation expense by statement functional line | ' | ' | ' | ' |
Stock-based compensation expense | $28 | $33 | $86 | $102 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Income (loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $98 | $316 | $262 | $256 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments, net of $0 tax in 2014 and 2013 | -56 | 18 | -43 | 19 |
Unrealized gains (losses) on marketable securities, net of $0 tax in 2014 and 2013 | -3 | 4 | -2 | -1 |
Other comprehensive income (loss) | -59 | 22 | -45 | 18 |
Comprehensive income | $39 | $338 | $217 | $274 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Comprehensive Income (loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
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, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net income | $262 | $256 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 141 | 122 |
Stock-based compensation expense | 340 | 401 |
Acquisition-related items: | ' | ' |
Amortization of purchased intangible assets | 169 | 172 |
Impairments of long-lived assets | 390 | 511 |
Gain on sale of assets and other | -44 | -2 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable, net | -143 | -112 |
Inventory | -100 | -14 |
Prepaid expenses and other assets | 7 | 3 |
Accounts payable | 97 | -20 |
Deferred revenue | 98 | -11 |
Other accrued and long-term liabilities | 75 | 88 |
Net cash provided by operating activities | 1,292 | 1,394 |
Investing activities | ' | ' |
Net purchases of property and equipment | -214 | -172 |
Net cash paid for acquired companies | -9 | 0 |
Proceeds from sale of certain assets and other | 90 | 0 |
Purchases of marketable securities | -1,868 | -2,214 |
Proceeds from sales and maturities of marketable securities | 1,417 | 1,496 |
Net cash used in investing activities | -584 | -890 |
Financing activities | ' | ' |
Issuance of long-term debt, net | 592 | 0 |
Payments of long-term debt | -400 | 0 |
Repurchases of Class A common stock | -418 | -595 |
Dividends paid | -211 | -190 |
Proceeds from issuance of common stock | 419 | 292 |
Minimum tax withholding paid on behalf of employees for restricted stock units | -93 | -104 |
Net cash used in financing activities | -111 | -597 |
Increase (decrease) in cash and cash equivalents | 597 | -93 |
Cash and cash equivalents at beginning of period | 1,657 | 1,617 |
Cash and cash equivalents at end of period | $2,254 | $1,524 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
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 solutions, or SoCs. | |
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, 2013, included in our 2013 Annual Report on Form 10-K filed with the SEC on January 30, 2014, referred to as our 2013 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, 2014 are not necessarily indicative of the results to be expected for future quarters or the full year. | |
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 2013 Annual Report. There have been no material changes to our significant accounting policies during the nine months ended September 30, 2014. | |
Use of Estimates | |
The preparation of financial statements in accordance with 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, long-lived 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. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accountings Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Supplemental_Financial_Informa
Supplemental Financial Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Supplemental Financial Information | ' | |||||||||||||||
Supplemental Financial Information | ||||||||||||||||
The following tables present details of our condensed consolidated financial statements: | ||||||||||||||||
Inventory | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Work in process | $ | 282 | $ | 202 | ||||||||||||
Finished goods | 342 | 323 | ||||||||||||||
$ | 624 | $ | 525 | |||||||||||||
Accrued Liabilities | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Accrued rebates | $ | 494 | $ | 409 | ||||||||||||
Accrued royalties | 21 | 15 | ||||||||||||||
Accrued settlement charges | 25 | 66 | ||||||||||||||
Accrued legal costs | 9 | 15 | ||||||||||||||
Accrued taxes | 22 | 20 | ||||||||||||||
Warranty reserve | 8 | 19 | ||||||||||||||
Restructuring liabilities | 72 | 17 | ||||||||||||||
Other | 104 | 86 | ||||||||||||||
$ | 755 | $ | 647 | |||||||||||||
Other Long-Term Liabilities | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Deferred rent | $ | 41 | $ | 46 | ||||||||||||
Accrued taxes | 73 | 72 | ||||||||||||||
Deferred tax liabilities | 25 | 35 | ||||||||||||||
Accrued settlement charges | 18 | 25 | ||||||||||||||
Deferred revenue | 113 | 33 | ||||||||||||||
Other long-term liabilities | 18 | 23 | ||||||||||||||
$ | 288 | $ | 234 | |||||||||||||
Accrued Rebate Activity | ||||||||||||||||
The following table summarizes activity related to accrued rebates: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 409 | $ | 383 | ||||||||||||
Charged as a reduction of revenue | 615 | 617 | ||||||||||||||
Reversal of unclaimed rebates | (28 | ) | (15 | ) | ||||||||||||
Payments | (502 | ) | (463 | ) | ||||||||||||
Ending balance | $ | 494 | $ | 522 | ||||||||||||
We recorded customer rebates of $251 million and $264 million in the three months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
Income from the Qualcomm Agreement | ||||||||||||||||
For a discussion of income from our April 2009 agreement with Qualcomm Incorporated, or the Qualcomm Agreement, | ||||||||||||||||
please refer to Note 1, “Summary of Significant Accounting Policies,” in Part IV, Item 15 of our 2013 Annual Report. The | ||||||||||||||||
income from the Qualcomm Agreement terminated in April 2013. | ||||||||||||||||
Other Charges (Gains), Net | ||||||||||||||||
In March 2014 we sold certain Ethernet controller-related assets and provided non-exclusive licenses to intellectual property, including a non-exclusive patent license, to QLogic Corporation for a total of $209 million, referred to as the QLogic Transaction. The transaction was accounted for as a multiple element arrangement, which primarily included (i) the sale of certain assets (constituting a business for accounting purposes), (ii) the licensing of certain intellectual property and (iii) a long-term supply agreement. In connection with the transaction, we recorded a gain on the sale of assets of $48 million (net of a goodwill adjustment of $37 million) and deferred revenue of $120 million. The revenue related to the license agreement ($76 million) and the supply agreement ($44 million) will be amortized over approximately seven years. The operating gain was recorded in “Other charges (gains), net” included in our unaudited condensed consolidated statements of income for the nine months ended September 30, 2014. | ||||||||||||||||
In determining the fair value of the license agreement we used the relief from royalty income approach, as well as a market approach utilizing another transaction that we had previously entered into for the same intellectual property, adjusted for changes in the market and other assumptions since that transaction. The supply agreement was valued utilizing the cost savings income approach. The relief from royalty income and cost saving income approaches employ significant unobservable inputs categorized as Level 3 inputs. The key unobservable inputs utilized include discount rates of approximately 13% to 15%, a market participant tax rate of 17%, and estimated level of future volumes and pricing based on current product and market data. | ||||||||||||||||
The adjustment to goodwill due to the QLogic Transaction was calculated by determining the value of the business sold in relation to the value of the Infrastructure and Networking reportable segment. The value of the business sold was determined utilizing the residual method. | ||||||||||||||||
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 in “Other charges (gains), net” in our unaudited statement of income in the three and nine 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, stock purchase rights 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, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Numerator: Net income | $ | 98 | $ | 316 | $ | 262 | $ | 256 | ||||||||
Denominator for net income per share (basic) | 591 | 571 | 587 | 573 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock awards | 16 | 7 | 11 | 12 | ||||||||||||
Denominator for net income per share (diluted) | 607 | 578 | 598 | 585 | ||||||||||||
Net income per share (basic) | $ | 0.17 | $ | 0.55 | $ | 0.45 | $ | 0.45 | ||||||||
Net income per share (diluted) | $ | 0.16 | $ | 0.55 | $ | 0.44 | $ | 0.44 | ||||||||
Net income per share (diluted) does not include the effect of anti-dilutive potential common shares resulting from outstanding equity awards. There were 8 million and 47 million anti-dilutive potential common shares in the three months ended September 30, 2014 and 2013, respectively and 13 million and 39 million anti-dilutive potential common shares in the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
Supplemental Cash Flow Information | ||||||||||||||||
In the nine months ended September 30, 2014, we paid $29 million for capital equipment that was accrued as of December 31, 2013 and had billings of $16 million for capital equipment that were accrued but not yet paid as of September 30, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
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, 2014 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 549 | $ | — | $ | — | $ | 549 | $ | 549 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 963 | — | — | 963 | 963 | — | — | |||||||||||||||||||||
Money market funds | 200 | — | — | 200 | 200 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,252 | 1 | (1 | ) | 1,252 | 1 | 136 | 1,115 | ||||||||||||||||||||
Subtotal | 2,415 | 1 | (1 | ) | 2,415 | 1,164 | 136 | 1,115 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 638 | — | — | 638 | 525 | 113 | — | |||||||||||||||||||||
Corporate bonds | 1,693 | 2 | (1 | ) | 1,694 | — | 783 | 911 | ||||||||||||||||||||
Asset-backed securities and other | 124 | — | — | 124 | 16 | 36 | 72 | |||||||||||||||||||||
Subtotal | 2,455 | 2 | (1 | ) | 2,456 | 541 | 932 | 983 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 5,419 | $ | 3 | $ | (2 | ) | $ | 5,420 | $ | 2,254 | $ | 1,068 | $ | 2,098 | |||||||||||||
December 31, 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 | $ | 307 | $ | — | $ | — | $ | 307 | $ | 307 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 474 | — | — | 474 | 474 | — | — | |||||||||||||||||||||
Money market funds | 277 | — | — | 277 | 277 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,005 | 1 | — | 1,006 | — | 205 | 801 | |||||||||||||||||||||
Subtotal | 1,756 | 1 | — | 1,757 | 751 | 205 | 801 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 690 | — | — | 690 | 599 | 91 | — | |||||||||||||||||||||
Corporate bonds | 1,591 | 3 | (1 | ) | 1,593 | — | 477 | 1,116 | ||||||||||||||||||||
Asset-backed securities and other | 24 | — | — | 24 | — | 2 | 22 | |||||||||||||||||||||
Subtotal | 2,305 | 3 | (1 | ) | 2,307 | 599 | 570 | 1,138 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 4,368 | $ | 4 | $ | (1 | ) | $ | 4,371 | $ | 1,657 | $ | 775 | $ | 1,939 | |||||||||||||
There were no transfers between Level 1, Level 2 or Level 3 securities in the nine months ended September 30, 2014. All of our long-term marketable securities had maturities of between one and three years in duration at September 30, 2014. Our cash, cash equivalents and marketable securities at September 30, 2014 consisted of $2.72 billion held domestically, with the remaining balance of $2.70 billion held by our foreign subsidiaries. | ||||||||||||||||||||||||||||
At September 30, 2014 we had 153 investments with a fair value of $1.37 billion that were in an unrealized loss position for less than twelve months. Our gross unrealized losses of $2 million for these investments at September 30, 2014 were due to changes in market rates. We have determined that the gross unrealized losses on these investments at September 30, 2014 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 $1.59 billion and $1.37 billion as of September 30, 2014 and December 31, 2013, 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, goodwill and other long lived assets when they are held for sale or determined to be impaired, and for license and settlement agreements when they are part of a multiple element arrangement. See Notes 2, 9 and 10 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, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ||||||||||||||
The following table presents details of the provision for income taxes and our effective tax rates: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In millions, except percentages) | ||||||||||||||
Provision for income taxes | $ | 5 | $ | 9 | 10 | 8 | ||||||||
Effective tax rates | 4.9 | % | 2.8 | % | 3.7 | % | 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 the impairments of long-lived assets, restructuring costs, and settlement gains of significant portion of assets within a trade or business, were treated as discrete items and resulted in the recording of discrete tax benefits of $5 million and $10 million for the nine months ended September 30, 2014 and 2013, respectively. We also recorded discrete tax benefits for audit settlements and expirations of the statutes of limitations for the assessment of taxes in various foreign jurisdictions of $4 million, $13 million, $3 million and $9 million in the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
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 $6 million and $24 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
In the three months ended September 30, 2014, we completed the Internal Revenue Service examination of our income tax returns for the 2007, 2008 and 2009 tax years. The results of the audit had no material effect on our unaudited condensed consolidated financial statements. |
Debt_and_Credit_Facility
Debt and Credit Facility | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Debt and Credit Facility | ' | |||||||||||||||||||
Debt and Credit Facility | ||||||||||||||||||||
Senior Notes | ||||||||||||||||||||
The following table presents details of our senior notes, or the Notes, as of the dates listed below: | ||||||||||||||||||||
Date | Maturity | Interest | Effective | Issuance | September 30, | December 31, | ||||||||||||||
Issued | Date | Rate | Yield | Price | 2014 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||||||
Nov-10 | Nov-15 | 2.375 | % | 2.494 | % | 99.444 | % | $ | — | $ | 400 | |||||||||
Nov-11 | Nov-18 | 2.7 | 2.762 | 99.609 | 500 | 500 | ||||||||||||||
Aug-12 | Aug-22 | 2.5 | 2.585 | 99.255 | 500 | 500 | ||||||||||||||
Jul-14 | Aug-24 | 3.5 | 3.546 | 99.615 | 350 | — | ||||||||||||||
Jul-14 | Aug-34 | 4.5 | 4.546 | 99.4 | 250 | — | ||||||||||||||
1,600 | 1,400 | |||||||||||||||||||
Unaccreted discount | (7 | ) | (6 | ) | ||||||||||||||||
Long-term debt | $ | 1,593 | $ | 1,394 | ||||||||||||||||
In July 2014 we issued senior unsecured notes in an aggregate principal amount of $600 million. In August 2014 we redeemed $400 million principal aggregate amount of our senior notes that were due November 2015, or the 2015 Notes. We used a portion of the net proceeds from the senior unsecured notes issued in July 2014 to redeem the 2015 Notes and intend to use the remaining net proceeds for general corporate purposes. In the three and nine months ended September 30, 2014, we recorded $11 million of interest expense, which stemmed from $10 million of premium paid upon redemption of the 2015 Notes and $1 million related to the write-off of related debt issuance costs. | ||||||||||||||||||||
We may redeem the above outstanding Notes at any time prior to their maturity, subject to a specified make-whole premium as defined in the indenture governing the Notes. In the event of a change of control triggering event, each holder of Notes will have the right to require us to purchase for cash all or a portion of their Notes at a redemption price of 101% of the aggregate principal amount of such Notes plus accrued and unpaid interest. Default can be triggered by any missed interest or principal payment, breach of covenant, or in certain events of bankruptcy, insolvency or reorganization. | ||||||||||||||||||||
The outstanding 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. | ||||||||||||||||||||
The outstanding Notes are recorded net of original issue discount. The discount and debt issuance costs associated with the issuance of the Notes are amortized to interest expense over their respective terms. The effective rates for the fixed-rate debt include the interest on the notes and the accretion of the original issue discount. | ||||||||||||||||||||
Relative to our overall indebtedness, the outstanding 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 July 2014 primarily to extend the maturity date to July 31, 2019, at which time all outstanding revolving facility loans (if any) and accrued and unpaid interest must be repaid. The July 2014 amendment to the credit facility also removed the consolidated interest coverage ratio financial covenant, removed the negative covenants restricting investments and restricted payments, and removed the highest pricing in the pricing grid for determining 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. The financial covenant in the credit facility requires us to maintain a consolidated leverage ratio of no more than 3.25:1.00. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
Shareholders’ Equity | |
Quarterly Dividend | |
In January 2014 our Board of Directors adopted an amendment to the existing dividend policy pursuant to which we increased the quarterly cash dividend by 9% to $0.12 per share ($0.48 per share on an annual basis) payable to holders of our common stock. In the three and nine months ended September 30, 2014 and 2013 we paid $71 million, $63 million, $211 million and $190 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 6.0 million and 12.2 million shares of our Class A common stock at a weighted average price of $37.86 and $34.26 in the three and nine months ended September 30, 2014, 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, 2014 | ||||||||||||||||||||||||
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, 2013 | 24 | $ | 34.91 | |||||||||||||||||||||
Restricted stock units granted | 14 | 30.1 | ||||||||||||||||||||||
Restricted stock units cancelled | (5 | ) | 32.66 | |||||||||||||||||||||
Restricted stock units vested | (9 | ) | 34.97 | |||||||||||||||||||||
Balance at September 30, 2014 | 24 | $ | 32.52 | |||||||||||||||||||||
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, 2013 | 39 | $ | 30.39 | |||||||||||||||||||||
Options cancelled | (1 | ) | 37.32 | |||||||||||||||||||||
Options exercised | (14 | ) | 24.95 | |||||||||||||||||||||
Balance at September 30, 2014 | 24 | $ | 33.09 | |||||||||||||||||||||
The following table presents details of unearned stock-based compensation currently estimated to be expensed in the remainder of 2014 through 2018 related to unvested share-based payment awards: | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Unearned stock-based compensation | $ | 98 | $ | 298 | $ | 191 | $ | 98 | $ | 16 | $ | 701 | ||||||||||||
If there are any modifications or cancellations of the underlying unvested awards, including the cancellation of awards held by employees impacted by our current restructuring plan, 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, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
We and certain of our subsidiaries are involved in various intellectual property and other proceedings, claims and litigation arising in the ordinary course of our business. 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. We will disclose the nature of any such matter if we believe it to be material, along with (i) any accrual for loss contingencies associated with such legal proceedings; (ii) any determination by us that an unfavorable outcome is probable or reasonably possible; and (iii) the amount or range of any possible loss or a statement that we cannot reasonably estimate an amount or a range of possible loss. | |
Particularly in the early stages of intellectual property proceedings, an assessment of materiality may be complicated by limited information, including, for example, 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 the intellectual property proceedings may involve, for example, “non-practicing entities” asserting claims against 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 discussions 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 or results of operations. | |
The results of legal proceedings are inherently uncertain, and material adverse outcomes are possible. | |
Settlement Costs | |
From time to time we may enter into confidential discussions regarding the potential settlement of pending intellectual property or proceedings, claims or litigation; 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 amount is reasonably estimable we may record settlement costs, notwithstanding not having reached a final settlement agreement. 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. In light of the numerous factors that go into a settlement decision, it is difficult to predict whether a settlement is possible, the appropriate terms of a settlement or the opportune time to settle a matter. 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. | |
We recorded settlement costs of $2 million and $20 million in the three and nine months ended September 30, 2014, respectively, related to the settlement of patent infringement claims. We recorded settlement gains of $75 million in the three and nine months ended September 30, 2013. |
Exit_of_Cellular_Baseband_Busi
Exit of Cellular Baseband Business | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Exit of Cellular Baseband Business [Text Block] | ' | |||||||||||
Exit of Cellular Baseband Business | ||||||||||||
Restructuring Costs | ||||||||||||
On June 2, 2014, we announced that we were exploring strategic alternatives, including a potential sale and/or wind-down, for our cellular baseband business, previously included in our former Mobile and Wireless reportable segment. See Note 11 for a discussion of our reportable segments. We reached this decision based on our conclusion that the commercial and economic opportunity in this business was not sufficiently compelling to justify the continued investment, especially when compared to other opportunities within our product portfolio. On June 26, 2014, the Audit Committee of our Board of Directors approved a global restructuring plan, or the 2014 Plan, that focuses on cost reductions and operating efficiencies and better aligns our resources to areas of strategic focus. | ||||||||||||
As of June 30, 2014 we had not made a determination as to whether we would exit the cellular baseband business through a sale or wind-down. Therefore, the restructuring plan relating to cellular baseband employees (who were primarily engaged in research and development) was subject to significant change and uncertainty since the plan was dependent upon the outcome of our effort to sell the business. In July 2014 we decided to pursue a wind-down of the cellular baseband business. As a result, we have begun to (i) reduce our worldwide headcount by approximately 2,300 employees, (ii) close or consolidate up to 18 locations and (iii) terminate certain contracts. Communications to impacted employees began in July 2014. The restructuring charges related to the cellular baseband business were considered a non-recognizable subsequent event for financial reporting purposes for the three months ended June 30, 2014. | ||||||||||||
In the nine months ended September 30, 2014, we recorded $136 million in restructuring charges. These charges are comprised of (i) $18 million recognized in the three months ended June 30, 2014 for ongoing termination benefits for employees performing selling, general and administrative and other corporate functions, (ii) $108 million recognized in the three months ended September 30, 2014 for termination benefits primarily for employees performing research and development and marketing functions in the cellular baseband business and (iii) $5 million in each of the three months ended June 30, 2014 and September 30, 2014, respectively, primarily for certain non-cancelable contract costs. We expect to record additional restructuring charges of approximately $60 million over the next twelve months for costs associated with certain non-cancelable contract and facilities costs. | ||||||||||||
As described in our 2013 Annual Report, we implemented a restructuring plan in the third quarter of 2013. The plan focused primarily on workforce reductions and included employees from our transaction with Renesas Electronics Corporation. | ||||||||||||
Restructuring costs are primarily comprised of cash-based termination benefits and contract costs to be incurred without economic benefit. Due to various complexities in our international locations, some employee terminations may not be in effect for some time. We anticipate most of the expenses associated with this plan will be recognized within the next twelve months. | ||||||||||||
The following table summarizes activity related to our restructuring liabilities: | ||||||||||||
2014 Plan | 2013 Plan | Total | ||||||||||
(In millions) | ||||||||||||
Balance at December 31, 2013 | $ | — | $ | 17 | 17 | |||||||
Charged to expense | 136 | 6 | 142 | |||||||||
Cash payments | (66 | ) | (21 | ) | (87 | ) | ||||||
Balance at September 30, 2014 | $ | 70 | $ | 2 | $ | 72 | ||||||
Impairment Charges | ||||||||||||
In connection with our decision to exit the cellular baseband business, previously included in our former Mobile and Wireless reportable segment, we recorded $130 million of non-cash charges for the impairment of certain long-lived assets and $34 million of inventory charges in the three months ending June 30, 2014. We wrote down the value of property and equipment related to the cellular baseband business by $104 million to reflect the fair value of these assets on an in-exchange basis. In determining the fair value of the assets, we used a market based approach to estimate the value we could receive in the open market, and subtracted the cost to sell those assets. We also performed a detailed analysis of our electronic design automation, or EDA, tools and technology licenses that relate to our cellular baseband business. Because the majority of these EDA tools and technology licenses are not transferable and will have no useful applications for our remaining operations, we recorded an impairment charge of $19 million related to these licenses. We also recorded impairment charges of purchased intangible assets of $2 million and other assets of $5 million. The impairment charges were recorded in “Impairment of Long-Lived Assets” and the inventory charge was recorded in “Cost of Product Revenue” included in our unaudited condensed consolidated statements of income for the nine months ended September 30, 2014. |
Goodwill_and_Other_Purchased_I
Goodwill and Other Purchased Intangible Assets (Notes) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Goodwill and Other Purchased Intangible Assets | ' | |||||||||||||||||||||||||||
Goodwill and Purchased Intangible Assets | ||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
The following table summarizes the activity related to the carrying value of our goodwill: | ||||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Foreign | Consolidated | |||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Goodwill | $ | 1,823 | $ | 3,778 | $ | 21 | $ | 5,622 | ||||||||||||||||||||
Accumulated impairment losses | (543 | ) | (1,286 | ) | — | (1,829 | ) | |||||||||||||||||||||
Goodwill at December 31, 2013 | $ | 1,280 | $ | 2,492 | $ | 21 | $ | 3,793 | ||||||||||||||||||||
Goodwill recorded in connection with acquisitions | 5 | — | — | 5 | ||||||||||||||||||||||||
Transfer due to reorganization (Note 11) | (26 | ) | 26 | — | — | |||||||||||||||||||||||
Adjustment due to sale of certain assets (Note 2) | — | (37 | ) | — | (37 | ) | ||||||||||||||||||||||
Effects of foreign currency translation | — | — | (27 | ) | (27 | ) | ||||||||||||||||||||||
Goodwill at September 30, 2014 | $ | 1,259 | $ | 2,481 | $ | (6 | ) | $ | 3,734 | |||||||||||||||||||
As discussed in Notes 9 and 11, in connection with the wind-down of our cellular baseband business, we underwent certain organizational changes that resulted in the elimination of our former Mobile and Wireless reportable segment and combined our Broadband Communications reportable segment with substantially all of the remaining portion of our Mobile and Wireless reportable segment. The new combined segment is the Broadband and Connectivity reportable segment. Goodwill of $515 million in the former Mobile and Wireless reportable segment was allocated between the Broadband and Connectivity, and Infrastructure and Networking reportable segments, in the amounts of $489 million and $26 million, respectively, based on relative fair value. We also tested goodwill for impairment before and after the organizational changes, and concluded that goodwill was not impaired. | ||||||||||||||||||||||||||||
Purchased Intangible Assets | ||||||||||||||||||||||||||||
The following table presents details of our purchased intangible assets: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Developed technology | $ | 1,258 | $ | (583 | ) | $ | 675 | $ | 1,492 | $ | (539 | ) | $ | 953 | ||||||||||||||
In-process research and development | 18 | — | 18 | 130 | — | 130 | ||||||||||||||||||||||
Customer relationships | 178 | (162 | ) | 16 | 232 | (176 | ) | 56 | ||||||||||||||||||||
Other | 33 | (31 | ) | 2 | 34 | (29 | ) | 5 | ||||||||||||||||||||
$ | 1,487 | $ | (776 | ) | $ | 711 | $ | 1,888 | $ | (744 | ) | $ | 1,144 | |||||||||||||||
In the nine months ended September 30, 2014 we reclassified $78 million of in-process research and development, or IPR&D costs, to developed technology primarily related to knowledge-based processors from our acquisition of NetLogic Microsystems, Inc., or NetLogic. | ||||||||||||||||||||||||||||
Impairment of Purchased Intangible Assets | ||||||||||||||||||||||||||||
In the three months ended March 31, 2014 we recorded impairment charges primarily for developed technology of $25 million, of which $19 million was related to our acquisition of SC Square Ltd., or SC Square, and $5 million related to the purchase of LTE-related assets from affiliates of Renesas Electronics Corporation, or the Renesas Transaction, each included in our former Mobile and Wireless reportable segment. The primary factors contributing to these impairment charges were (i) for SC Square, the discontinuation of certain security solutions and (ii) for the Renesas Transaction, a reduction in revenue expectations related to an acquired legacy LTE modem product and an associated decrease to the respective estimated cash flows. | ||||||||||||||||||||||||||||
In the three months ended June 30, 2014 and September 30, 2014, we recorded impairment charges of $35 million and $200 million, respectively, primarily related to our acquisition of NetLogic, included in our Infrastructure and Networking reportable segment. Impairment charges related to developed technology of our embedded processor products were $35 million and $115 million in the three months ended June 30, 2014 and September 30, 2014, respectively, and $12 million in the three months ended September 30, 2014 for IPR&D of our embedded processor products. We have seen continued reduction in customer design activity for MIPS-based embedded processors, which negatively impacts our previous forecast, primarily due to customers increasingly selecting alternative solutions for next generation core network architectures. The remaining impairment charges in the three months ended September 30, 2014 were comprised of $37 million and $20 million related to developed technology and IPR&D, respectively, of our knowledge-based processor, or KBP, products and $16 million of customer relationships. The primary factor driving the impairment of our KBP assets was a long term reduction in demand for KBPs in edge and core routers, which negatively impacted our previous forecast. | ||||||||||||||||||||||||||||
In the three months ended June 30, 2013 we recorded impairment charges of $501 million, of which $461 million also 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, there was 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 developed technology, $88 million of IPR&D and $48 million of customer relationships related to our embedded processor and KBP products. We also impaired $87 million of developed 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 developed technology in the three months ended June 30, 2013 and the charge taken in the three months ended March 31, 2013, primarily for IPR&D of $10 million, was the continued reduction in revenue outlook for certain products and the resulting decrease to the estimated cash flows identified with impaired assets. | ||||||||||||||||||||||||||||
Valuation Information | ||||||||||||||||||||||||||||
In determining the amount of the impairment charges we calculated fair values as of the impairment dates for acquired intangible assets. We used several variations of the income approach to compute the fair values, including the multiple period excess earnings, relief from royalty, and incremental cash flow methods. These methods employ significant unobservable inputs categorized as Level 3 inputs. The key unobservable inputs utilized include discount rates ranging from 16% to 22%, a market participant tax rate of 17%, and estimated level of future cash flows based on current product and market data. | ||||||||||||||||||||||||||||
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, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 46 | $ | 42 | $ | 143 | $ | 129 | ||||||||||||||||||||
Other operating expenses | 8 | 14 | 26 | 43 | ||||||||||||||||||||||||
$ | 54 | $ | 56 | $ | 169 | $ | 172 | |||||||||||||||||||||
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 2014 and thereafter: | ||||||||||||||||||||||||||||
Purchased Intangible Asset Amortization by Year | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 42 | $ | 145 | $ | 117 | $ | 99 | $ | 84 | $ | 206 | $ | 693 | ||||||||||||||
Other operating expenses | 3 | 4 | 4 | 2 | 2 | 3 | 18 | |||||||||||||||||||||
$ | 45 | $ | 149 | $ | 121 | $ | 101 | $ | 86 | $ | 209 | $ | 711 | |||||||||||||||
Reportable_Segments_Significan
Reportable Segments, Significant Customer and Geographical Information | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Business Enterprise Segments, Significant Customer and Geographical Information | ' | |||||||||||||||||||||||
Reportable Segments, Significant Customer and Geographical Information | ||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Our net revenue is generated principally from sales of integrated circuit products. While we derive some revenue from other sources, such revenue is not material as it represents approximately 1% of our total net revenue and is classified under product revenue for reporting purposes. | ||||||||||||||||||||||||
With respect to the sales of integrated circuit products, we have over 550 products that are grouped into over 70 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; | |||||||||||||||||||||||
• | all of our integrated circuits are manufactured, assembled and tested using the same or similar group of independent, third-party subcontractors; and | |||||||||||||||||||||||
• | all of our integrated circuits are sold through a centralized sales force and common wholesale distributors. | |||||||||||||||||||||||
Historically, Broadcom had three reportable segments, which were consistent with our target markets. These former segments were: Broadband Communications, Mobile and Wireless, and Infrastructure and Networking. As discussed in Notes 9 and 10, we decided to pursue a wind-down of our cellular baseband business, which business was previously included, along with the Connectivity and Voice over Internet Protocol, or VoIP, businesses, in our former Mobile and Wireless reportable segment. In connection with the wind-down, we underwent certain organizational changes that resulted in the elimination of the Mobile and Wireless reportable segment. We reassigned the responsibilities for the Connectivity and VoIP businesses as follows: the executive vice president, or EVP, responsible for the former Broadband Communications reportable segment now also manages our Connectivity business and the EVP responsible for the former Infrastructure and Networking reportable segment now also manages the VoIP business. Also, as part of this reorganization, certain research and development functions have been merged, streamlined and consolidated within the former Broadband Communications and Infrastructure and Networking reportable segments. Based on these organizational changes and the streamlining of research and development activities, and consistent with how our Chief Executive Officer, who is our chief operating decision maker, or CODM, currently reviews financial information for purposes of allocating resources and assessing performance of these businesses, we determined that we now have two operating segments, which are also our reportable segments: (i) Broadband and Connectivity and (ii) Infrastructure and Networking. | ||||||||||||||||||||||||
The “Cellular Baseband” category shown in the tables below represents the operations of the cellular baseband business that is currently winding down. As the CODM no longer reviews the financial information for purposes of allocating resources and assessing performance of Cellular Baseband, it does not qualify as an operating and reportable segment. In addition, as Cellular Baseband has not completely ceased operations and will continue to generate revenue, albeit declining, and expenses for the foreseeable future, it does not currently meet the requirements for "discontinued operations" under applicable accounting standards. We have included Cellular Baseband net revenue and operating income (loss) in the below tables as if it did meet the requirements of a reportable segment because we believe this information is useful to users of our financial statements. | ||||||||||||||||||||||||
We also report an “All Other” category, which included income from the Qualcomm Agreement in prior periods, since it was principally the result of corporate efforts, and also includes operating expenses that we do not allocate to our reportable 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, certain inventory charges relating to our decision to exit our cellular baseband business, 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, gain (loss) on sale of assets, 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 a segment basis. The accounting policies for segment reporting are the same as for Broadcom as a whole. | ||||||||||||||||||||||||
All prior-period amounts have been adjusted retrospectively to reflect our reportable segment changes. In addition, certain shared operating expenses have been reallocated to our (i) Broadband and Connectivity and (ii) Infrastructure and Networking reportable segments, which expenses represent corporate allocations not expected to be eliminated from the consolidated amounts once we complete the wind-down of Cellular Baseband. | ||||||||||||||||||||||||
The following tables present details of our reportable segments and the “Cellular Baseband” and “All Other” categories: | ||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Total Reportable Segments | Cellular Baseband | All Other | Consolidated | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||
Net revenue | $ | 1,512 | $ | 651 | $ | 2,163 | $ | 97 | $ | — | $ | 2,260 | ||||||||||||
Operating income (loss) | 398 | 213 | 611 | (35 | ) | (465 | ) | 111 | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
Net revenue | $ | 1,403 | $ | 587 | $ | 1,990 | $ | 156 | $ | — | $ | 2,146 | ||||||||||||
Operating income (loss) | 336 | 194 | 530 | (62 | ) | (132 | ) | 336 | ||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Total Reportable Segments | Cellular Baseband | All Other | Consolidated | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Net revenue | $ | 4,060 | $ | 1,900 | $ | 5,960 | $ | 325 | $ | — | $ | 6,285 | ||||||||||||
Operating income (loss) | 940 | 647 | 1,587 | (281 | ) | (1,011 | ) | 295 | ||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Net revenue | $ | 4,107 | $ | 1,563 | $ | 5,670 | $ | 485 | $ | 86 | $ | 6,241 | ||||||||||||
Operating income (loss) | 966 | 416 | 1,382 | (179 | ) | (917 | ) | 286 | ||||||||||||||||
Included In All Other Category: | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | — | $ | 86 | ||||||||||||||||
Stock-based compensation | $ | 107 | $ | 125 | $ | 340 | $ | 401 | ||||||||||||||||
Amortization of purchased intangible assets | 54 | 56 | 169 | 172 | ||||||||||||||||||||
Amortization of acquired inventory step-up and inventory charges related to the exit of the cellular baseband business | (7 | ) | — | 27 | 1 | |||||||||||||||||||
Impairments of long-lived assets | 200 | — | 390 | 511 | ||||||||||||||||||||
Settlement costs (gains) | 2 | (75 | ) | 20 | (75 | ) | ||||||||||||||||||
Restructuring costs, net | 114 | 12 | 142 | 12 | ||||||||||||||||||||
Other charges (gains), net | (1 | ) | 25 | (60 | ) | 25 | ||||||||||||||||||
Employer payroll tax on certain stock option exercises | 1 | 1 | 5 | 4 | ||||||||||||||||||||
Miscellaneous corporate allocation variances | (5 | ) | (12 | ) | (22 | ) | (48 | ) | ||||||||||||||||
Total other operating costs and expenses | $ | 465 | $ | 132 | $ | 1,011 | $ | 1,003 | ||||||||||||||||
Total operating loss for the “All Other” category | $ | (465 | ) | $ | (132 | ) | $ | (1,011 | ) | $ | (917 | ) | ||||||||||||
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, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Two largest customers | 29.9 | % | 34.9 | % | 28.2 | % | 34.6 | % | ||||||||||||||||
Five largest customers as a group | 45.4 | 49.1 | 44.6 | 48.3 | ||||||||||||||||||||
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, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
China (exclusive of Hong Kong) | 24.7 | % | 25 | % | 23.2 | % | 22.9 | % | ||||||||||||||||
Hong Kong | 31.6 | 26.9 | 30.6 | 26.9 | ||||||||||||||||||||
Singapore, Taiwan, Thailand and Japan | 28.8 | 32.6 | 30.9 | 35.8 | ||||||||||||||||||||
United States | 3.9 | 4.2 | 4.4 | 3.5 | ||||||||||||||||||||
Europe | 2 | 1.8 | 2 | 1.8 | ||||||||||||||||||||
Other | 9 | 9.5 | 8.9 | 9.1 | ||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
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 solutions, or SoCs. | ||
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, 2013, included in our 2013 Annual Report on Form 10-K filed with the SEC on January 30, 2014, referred to as our 2013 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, 2014 are not necessarily indicative of the results to be expected for future quarters or the full year. | ||
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 2013 Annual Report. There have been no material changes to our significant accounting policies during the nine months ended September 30, 2014. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in accordance with 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, long-lived 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. | ||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |
Recent Accounting Pronouncements | ||
In May 2014, the Financial Accountings Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | ||
Earnings Per Share | ' | |
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, stock purchase rights 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 | ' | |
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. | ||
Segment Reporting, Policy | ' | |
Reportable Segments | ||
Our net revenue is generated principally from sales of integrated circuit products. While we derive some revenue from other sources, such revenue is not material as it represents approximately 1% of our total net revenue and is classified under product revenue for reporting purposes. | ||
With respect to the sales of integrated circuit products, we have over 550 products that are grouped into over 70 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; | |
• | all of our integrated circuits are manufactured, assembled and tested using the same or similar group of independent, third-party subcontractors; and | |
• | all of our integrated circuits are sold through a centralized sales force and common wholesale distributors. | |
Historically, Broadcom had three reportable segments, which were consistent with our target markets. These former segments were: Broadband Communications, Mobile and Wireless, and Infrastructure and Networking. As discussed in Notes 9 and 10, we decided to pursue a wind-down of our cellular baseband business, which business was previously included, along with the Connectivity and Voice over Internet Protocol, or VoIP, businesses, in our former Mobile and Wireless reportable segment. In connection with the wind-down, we underwent certain organizational changes that resulted in the elimination of the Mobile and Wireless reportable segment. We reassigned the responsibilities for the Connectivity and VoIP businesses as follows: the executive vice president, or EVP, responsible for the former Broadband Communications reportable segment now also manages our Connectivity business and the EVP responsible for the former Infrastructure and Networking reportable segment now also manages the VoIP business. Also, as part of this reorganization, certain research and development functions have been merged, streamlined and consolidated within the former Broadband Communications and Infrastructure and Networking reportable segments. Based on these organizational changes and the streamlining of research and development activities, and consistent with how our Chief Executive Officer, who is our chief operating decision maker, or CODM, currently reviews financial information for purposes of allocating resources and assessing performance of these businesses, we determined that we now have two operating segments, which are also our reportable segments: (i) Broadband and Connectivity and (ii) Infrastructure and Networking. | ||
The “Cellular Baseband” category shown in the tables below represents the operations of the cellular baseband business that is currently winding down. As the CODM no longer reviews the financial information for purposes of allocating resources and assessing performance of Cellular Baseband, it does not qualify as an operating and reportable segment. In addition, as Cellular Baseband has not completely ceased operations and will continue to generate revenue, albeit declining, and expenses for the foreseeable future, it does not currently meet the requirements for "discontinued operations" under applicable accounting standards. We have included Cellular Baseband net revenue and operating income (loss) in the below tables as if it did meet the requirements of a reportable segment because we believe this information is useful to users of our financial statements. | ||
We also report an “All Other” category, which included income from the Qualcomm Agreement in prior periods, since it was principally the result of corporate efforts, and also includes operating expenses that we do not allocate to our reportable 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, certain inventory charges relating to our decision to exit our cellular baseband business, 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, gain (loss) on sale of assets, 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 a segment basis. The accounting policies for segment reporting are the same as for Broadcom as a whole. |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Inventory | ' | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Work in process | $ | 282 | $ | 202 | ||||||||||||
Finished goods | 342 | 323 | ||||||||||||||
$ | 624 | $ | 525 | |||||||||||||
Accrued Liabilities | ' | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Accrued rebates | $ | 494 | $ | 409 | ||||||||||||
Accrued royalties | 21 | 15 | ||||||||||||||
Accrued settlement charges | 25 | 66 | ||||||||||||||
Accrued legal costs | 9 | 15 | ||||||||||||||
Accrued taxes | 22 | 20 | ||||||||||||||
Warranty reserve | 8 | 19 | ||||||||||||||
Restructuring liabilities | 72 | 17 | ||||||||||||||
Other | 104 | 86 | ||||||||||||||
$ | 755 | $ | 647 | |||||||||||||
Other Long-Term Liabilities | ' | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Deferred rent | $ | 41 | $ | 46 | ||||||||||||
Accrued taxes | 73 | 72 | ||||||||||||||
Deferred tax liabilities | 25 | 35 | ||||||||||||||
Accrued settlement charges | 18 | 25 | ||||||||||||||
Deferred revenue | 113 | 33 | ||||||||||||||
Other long-term liabilities | 18 | 23 | ||||||||||||||
$ | 288 | $ | 234 | |||||||||||||
Accrued Rebate Activity | ' | |||||||||||||||
The following table summarizes activity related to accrued rebates: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 409 | $ | 383 | ||||||||||||
Charged as a reduction of revenue | 615 | 617 | ||||||||||||||
Reversal of unclaimed rebates | (28 | ) | (15 | ) | ||||||||||||
Payments | (502 | ) | (463 | ) | ||||||||||||
Ending balance | $ | 494 | $ | 522 | ||||||||||||
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, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Numerator: Net income | $ | 98 | $ | 316 | $ | 262 | $ | 256 | ||||||||
Denominator for net income per share (basic) | 591 | 571 | 587 | 573 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock awards | 16 | 7 | 11 | 12 | ||||||||||||
Denominator for net income per share (diluted) | 607 | 578 | 598 | 585 | ||||||||||||
Net income per share (basic) | $ | 0.17 | $ | 0.55 | $ | 0.45 | $ | 0.45 | ||||||||
Net income per share (diluted) | $ | 0.16 | $ | 0.55 | $ | 0.44 | $ | 0.44 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
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, 2014 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 549 | $ | — | $ | — | $ | 549 | $ | 549 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 963 | — | — | 963 | 963 | — | — | |||||||||||||||||||||
Money market funds | 200 | — | — | 200 | 200 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,252 | 1 | (1 | ) | 1,252 | 1 | 136 | 1,115 | ||||||||||||||||||||
Subtotal | 2,415 | 1 | (1 | ) | 2,415 | 1,164 | 136 | 1,115 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 638 | — | — | 638 | 525 | 113 | — | |||||||||||||||||||||
Corporate bonds | 1,693 | 2 | (1 | ) | 1,694 | — | 783 | 911 | ||||||||||||||||||||
Asset-backed securities and other | 124 | — | — | 124 | 16 | 36 | 72 | |||||||||||||||||||||
Subtotal | 2,455 | 2 | (1 | ) | 2,456 | 541 | 932 | 983 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 5,419 | $ | 3 | $ | (2 | ) | $ | 5,420 | $ | 2,254 | $ | 1,068 | $ | 2,098 | |||||||||||||
December 31, 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 | $ | 307 | $ | — | $ | — | $ | 307 | $ | 307 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 474 | — | — | 474 | 474 | — | — | |||||||||||||||||||||
Money market funds | 277 | — | — | 277 | 277 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,005 | 1 | — | 1,006 | — | 205 | 801 | |||||||||||||||||||||
Subtotal | 1,756 | 1 | — | 1,757 | 751 | 205 | 801 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 690 | — | — | 690 | 599 | 91 | — | |||||||||||||||||||||
Corporate bonds | 1,591 | 3 | (1 | ) | 1,593 | — | 477 | 1,116 | ||||||||||||||||||||
Asset-backed securities and other | 24 | — | — | 24 | — | 2 | 22 | |||||||||||||||||||||
Subtotal | 2,305 | 3 | (1 | ) | 2,307 | 599 | 570 | 1,138 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 4,368 | $ | 4 | $ | (1 | ) | $ | 4,371 | $ | 1,657 | $ | 775 | $ | 1,939 | |||||||||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||
Income Tax Provision [Table Text Block] | ' | |||||||||||||
The following table presents details of the provision for income taxes and our effective tax rates: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In millions, except percentages) | ||||||||||||||
Provision for income taxes | $ | 5 | $ | 9 | 10 | 8 | ||||||||
Effective tax rates | 4.9 | % | 2.8 | % | 3.7 | % | 3 | % |
Debt_and_Credit_Facility_Table
Debt and Credit Facility (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Summary of debt | ' | |||||||||||||||||||
The following table presents details of our senior notes, or the Notes, as of the dates listed below: | ||||||||||||||||||||
Date | Maturity | Interest | Effective | Issuance | September 30, | December 31, | ||||||||||||||
Issued | Date | Rate | Yield | Price | 2014 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||||||
Nov-10 | Nov-15 | 2.375 | % | 2.494 | % | 99.444 | % | $ | — | $ | 400 | |||||||||
Nov-11 | Nov-18 | 2.7 | 2.762 | 99.609 | 500 | 500 | ||||||||||||||
Aug-12 | Aug-22 | 2.5 | 2.585 | 99.255 | 500 | 500 | ||||||||||||||
Jul-14 | Aug-24 | 3.5 | 3.546 | 99.615 | 350 | — | ||||||||||||||
Jul-14 | Aug-34 | 4.5 | 4.546 | 99.4 | 250 | — | ||||||||||||||
1,600 | 1,400 | |||||||||||||||||||
Unaccreted discount | (7 | ) | (6 | ) | ||||||||||||||||
Long-term debt | $ | 1,593 | $ | 1,394 | ||||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
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, 2013 | 24 | $ | 34.91 | |||||||||||||||||||||
Restricted stock units granted | 14 | 30.1 | ||||||||||||||||||||||
Restricted stock units cancelled | (5 | ) | 32.66 | |||||||||||||||||||||
Restricted stock units vested | (9 | ) | 34.97 | |||||||||||||||||||||
Balance at September 30, 2014 | 24 | $ | 32.52 | |||||||||||||||||||||
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, 2013 | 39 | $ | 30.39 | |||||||||||||||||||||
Options cancelled | (1 | ) | 37.32 | |||||||||||||||||||||
Options exercised | (14 | ) | 24.95 | |||||||||||||||||||||
Balance at September 30, 2014 | 24 | $ | 33.09 | |||||||||||||||||||||
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 2014 through 2018 related to unvested share-based payment awards: | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Unearned stock-based compensation | $ | 98 | $ | 298 | $ | 191 | $ | 98 | $ | 16 | $ | 701 | ||||||||||||
Exit_of_Cellular_Baseband_Busi1
Exit of Cellular Baseband Business (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Schedule of Restructuring Reserve [Table Text Block] | ' | |||||||||||
The following table summarizes activity related to our restructuring liabilities: | ||||||||||||
2014 Plan | 2013 Plan | Total | ||||||||||
(In millions) | ||||||||||||
Balance at December 31, 2013 | $ | — | $ | 17 | 17 | |||||||
Charged to expense | 136 | 6 | 142 | |||||||||
Cash payments | (66 | ) | (21 | ) | (87 | ) | ||||||
Balance at September 30, 2014 | $ | 70 | $ | 2 | $ | 72 | ||||||
Goodwill_and_Other_Purchased_I1
Goodwill and Other Purchased Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Goodwill | ' | |||||||||||||||||||||||||||
The following table summarizes the activity related to the carrying value of our goodwill: | ||||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Foreign | Consolidated | |||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Goodwill | $ | 1,823 | $ | 3,778 | $ | 21 | $ | 5,622 | ||||||||||||||||||||
Accumulated impairment losses | (543 | ) | (1,286 | ) | — | (1,829 | ) | |||||||||||||||||||||
Goodwill at December 31, 2013 | $ | 1,280 | $ | 2,492 | $ | 21 | $ | 3,793 | ||||||||||||||||||||
Goodwill recorded in connection with acquisitions | 5 | — | — | 5 | ||||||||||||||||||||||||
Transfer due to reorganization (Note 11) | (26 | ) | 26 | — | — | |||||||||||||||||||||||
Adjustment due to sale of certain assets (Note 2) | — | (37 | ) | — | (37 | ) | ||||||||||||||||||||||
Effects of foreign currency translation | — | — | (27 | ) | (27 | ) | ||||||||||||||||||||||
Goodwill at September 30, 2014 | $ | 1,259 | $ | 2,481 | $ | (6 | ) | $ | 3,734 | |||||||||||||||||||
Purchased Intangible Assets | ' | |||||||||||||||||||||||||||
The following table presents details of our purchased intangible assets: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Developed technology | $ | 1,258 | $ | (583 | ) | $ | 675 | $ | 1,492 | $ | (539 | ) | $ | 953 | ||||||||||||||
In-process research and development | 18 | — | 18 | 130 | — | 130 | ||||||||||||||||||||||
Customer relationships | 178 | (162 | ) | 16 | 232 | (176 | ) | 56 | ||||||||||||||||||||
Other | 33 | (31 | ) | 2 | 34 | (29 | ) | 5 | ||||||||||||||||||||
$ | 1,487 | $ | (776 | ) | $ | 711 | $ | 1,888 | $ | (744 | ) | $ | 1,144 | |||||||||||||||
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, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 46 | $ | 42 | $ | 143 | $ | 129 | ||||||||||||||||||||
Other operating expenses | 8 | 14 | 26 | 43 | ||||||||||||||||||||||||
$ | 54 | $ | 56 | $ | 169 | $ | 172 | |||||||||||||||||||||
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 2014 and thereafter: | ||||||||||||||||||||||||||||
Purchased Intangible Asset Amortization by Year | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of product revenue | $ | 42 | $ | 145 | $ | 117 | $ | 99 | $ | 84 | $ | 206 | $ | 693 | ||||||||||||||
Other operating expenses | 3 | 4 | 4 | 2 | 2 | 3 | 18 | |||||||||||||||||||||
$ | 45 | $ | 149 | $ | 121 | $ | 101 | $ | 86 | $ | 209 | $ | 711 | |||||||||||||||
Reportable_Segments_Significan1
Reportable Segments, Significant Customer and Geographical Information (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Reportable segments and the All Other category | ' | |||||||||||||||||||||||
The following tables present details of our reportable segments and the “Cellular Baseband” and “All Other” categories: | ||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Total Reportable Segments | Cellular Baseband | All Other | Consolidated | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||
Net revenue | $ | 1,512 | $ | 651 | $ | 2,163 | $ | 97 | $ | — | $ | 2,260 | ||||||||||||
Operating income (loss) | 398 | 213 | 611 | (35 | ) | (465 | ) | 111 | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
Net revenue | $ | 1,403 | $ | 587 | $ | 1,990 | $ | 156 | $ | — | $ | 2,146 | ||||||||||||
Operating income (loss) | 336 | 194 | 530 | (62 | ) | (132 | ) | 336 | ||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Total Reportable Segments | Cellular Baseband | All Other | Consolidated | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Net revenue | $ | 4,060 | $ | 1,900 | $ | 5,960 | $ | 325 | $ | — | $ | 6,285 | ||||||||||||
Operating income (loss) | 940 | 647 | 1,587 | (281 | ) | (1,011 | ) | 295 | ||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Net revenue | $ | 4,107 | $ | 1,563 | $ | 5,670 | $ | 485 | $ | 86 | $ | 6,241 | ||||||||||||
Operating income (loss) | 966 | 416 | 1,382 | (179 | ) | (917 | ) | 286 | ||||||||||||||||
Included In All Other Category: | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | — | $ | 86 | ||||||||||||||||
Stock-based compensation | $ | 107 | $ | 125 | $ | 340 | $ | 401 | ||||||||||||||||
Amortization of purchased intangible assets | 54 | 56 | 169 | 172 | ||||||||||||||||||||
Amortization of acquired inventory step-up and inventory charges related to the exit of the cellular baseband business | (7 | ) | — | 27 | 1 | |||||||||||||||||||
Impairments of long-lived assets | 200 | — | 390 | 511 | ||||||||||||||||||||
Settlement costs (gains) | 2 | (75 | ) | 20 | (75 | ) | ||||||||||||||||||
Restructuring costs, net | 114 | 12 | 142 | 12 | ||||||||||||||||||||
Other charges (gains), net | (1 | ) | 25 | (60 | ) | 25 | ||||||||||||||||||
Employer payroll tax on certain stock option exercises | 1 | 1 | 5 | 4 | ||||||||||||||||||||
Miscellaneous corporate allocation variances | (5 | ) | (12 | ) | (22 | ) | (48 | ) | ||||||||||||||||
Total other operating costs and expenses | $ | 465 | $ | 132 | $ | 1,011 | $ | 1,003 | ||||||||||||||||
Total operating loss for the “All Other” category | $ | (465 | ) | $ | (132 | ) | $ | (1,011 | ) | $ | (917 | ) | ||||||||||||
All other category included | ' | |||||||||||||||||||||||
Included In All Other Category: | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | — | $ | 86 | ||||||||||||||||
Stock-based compensation | $ | 107 | $ | 125 | $ | 340 | $ | 401 | ||||||||||||||||
Amortization of purchased intangible assets | 54 | 56 | 169 | 172 | ||||||||||||||||||||
Amortization of acquired inventory step-up and inventory charges related to the exit of the cellular baseband business | (7 | ) | — | 27 | 1 | |||||||||||||||||||
Impairments of long-lived assets | 200 | — | 390 | 511 | ||||||||||||||||||||
Settlement costs (gains) | 2 | (75 | ) | 20 | (75 | ) | ||||||||||||||||||
Restructuring costs, net | 114 | 12 | 142 | 12 | ||||||||||||||||||||
Other charges (gains), net | (1 | ) | 25 | (60 | ) | 25 | ||||||||||||||||||
Employer payroll tax on certain stock option exercises | 1 | 1 | 5 | 4 | ||||||||||||||||||||
Miscellaneous corporate allocation variances | (5 | ) | (12 | ) | (22 | ) | (48 | ) | ||||||||||||||||
Total other operating costs and expenses | $ | 465 | $ | 132 | $ | 1,011 | $ | 1,003 | ||||||||||||||||
Total operating loss for the “All Other” category | $ | (465 | ) | $ | (132 | ) | $ | (1,011 | ) | $ | (917 | ) | ||||||||||||
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, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Two largest customers | 29.9 | % | 34.9 | % | 28.2 | % | 34.6 | % | ||||||||||||||||
Five largest customers as a group | 45.4 | 49.1 | 44.6 | 48.3 | ||||||||||||||||||||
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, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
China (exclusive of Hong Kong) | 24.7 | % | 25 | % | 23.2 | % | 22.9 | % | ||||||||||||||||
Hong Kong | 31.6 | 26.9 | 30.6 | 26.9 | ||||||||||||||||||||
Singapore, Taiwan, Thailand and Japan | 28.8 | 32.6 | 30.9 | 35.8 | ||||||||||||||||||||
United States | 3.9 | 4.2 | 4.4 | 3.5 | ||||||||||||||||||||
Europe | 2 | 1.8 | 2 | 1.8 | ||||||||||||||||||||
Other | 9 | 9.5 | 8.9 | 9.1 | ||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Supplemental_Financial_Informa2
Supplemental Financial Information (Inventory) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory | ' | ' |
Work in process | $282 | $202 |
Finished goods | 342 | 323 |
Inventory, net | $624 | $525 |
Supplemental_Financial_Informa3
Supplemental Financial Information (Accrued Liabilities) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Accrued Liabilities, Current [Abstract] | ' | ' | ' | ' | ' |
Accrued rebates | $494 | $522 | $494 | $522 | ' |
Accrued royalties | 21 | ' | 21 | ' | 15 |
Accrued settlement charges | 25 | ' | 25 | ' | 66 |
Accrued legal costs | 9 | ' | 9 | ' | 15 |
Accrued taxes | 22 | ' | 22 | ' | 20 |
Warranty reserve | 8 | ' | 8 | ' | 19 |
Restructuring liabilities | 72 | ' | 72 | ' | 17 |
Other | 104 | ' | 104 | ' | 86 |
Accrued liabilities | 755 | ' | 755 | ' | 647 |
Other Liabilities, Noncurrent [Abstract] | ' | ' | ' | ' | ' |
Deferred rent | 41 | ' | 41 | ' | 46 |
Accrued taxes | 73 | ' | 73 | ' | 72 |
Deferred tax liabilities | 25 | ' | 25 | ' | 35 |
Accrued settlement charges | 18 | ' | 18 | ' | 25 |
Deferred revenue | 113 | ' | 113 | ' | 33 |
Other long-term liabilities | 18 | ' | 18 | ' | 23 |
Other long-term liabilities, Total | 288 | ' | 288 | ' | 234 |
Accrued Rebate Activity [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | 409 | 383 | ' |
Charged as a reduction of revenue | 251 | 264 | 615 | 617 | ' |
Reversal of unclaimed rebates | ' | ' | -28 | -15 | ' |
Payments | ' | ' | -502 | -463 | ' |
Ending balance | $494 | $522 | $494 | $522 | ' |
Supplemental_Financial_Informa4
Supplemental Financial Information (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Numerator: Net income | $98 | $316 | $262 | $256 |
Denominator for net income per share (basic) (shares) | 591 | 571 | 587 | 573 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock awards (shares) | 16 | 7 | 11 | 12 |
Denominator for net income per share (diluted) (shares) | 607 | 578 | 598 | 585 |
Net income per share (basic) (usd per share) | $0.17 | $0.55 | $0.45 | $0.45 |
Net income per share (diluted) (usd per share) | $0.16 | $0.55 | $0.44 | $0.44 |
Anti-dilutive common share equivalents (shares) | 8 | 47 | 13 | 39 |
Supplemental_Financial_Informa5
Supplemental Financial Information (Other Information) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' |
Proceeds from Sale of business and license agreement | $209 | ' | ' | ' | ' | ' |
Gain on Disposition of Asset Group | 48 | ' | ' | ' | ' | ' |
Decrease in Goodwill due to sale | 37 | ' | ' | ' | 37 | ' |
Term Of Deferred Revenue | ' | ' | '7 years | ' | ' | ' |
Other charges (gains), net | ' | -1 | ' | 25 | -60 | 25 |
Payments related to capital equipment purchase | ' | ' | ' | ' | 29 | ' |
Capital equipment that were accrued but not yet paid | ' | ' | ' | ' | 16 | ' |
Fair Value, Inputs, Level 3 [Member] | Liability [Member] | ' | ' | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' |
Tax rate | 17.00% | ' | ' | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Liability [Member] | ' | ' | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value inputs, discount rate | 13.00% | ' | ' | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Liability [Member] | ' | ' | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value inputs, discount rate | 15.00% | ' | ' | ' | ' | ' |
QLogic [Member] | ' | ' | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' |
Deferred Revenue | 120 | ' | 120 | ' | ' | ' |
Nonsoftware License Arrangement [Member] | ' | ' | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' |
Deferred Revenue | 76 | ' | 76 | ' | ' | ' |
Up-front Payment Arrangement [Member] | ' | ' | ' | ' | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' |
Deferred Revenue | $44 | ' | 44 | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
investment | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Gross Unrealized Losses | ($2,000,000) | ' |
Short-term marketable securities | 1,068,000,000 | 775,000,000 |
Long-term marketable securities | 2,098,000,000 | 1,939,000,000 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | ' |
Number of investments in unrealized loss position | 153 | ' |
Fair market value of investments in an unrealized loss position for less than 12 months (less than) | 1,370,000,000 | ' |
Fair Value Measurements, Valuation Techniques | 'based primarily on quoted market prices for the same or similar issues | ' |
Long-term Debt, Fair Value | 1,590,000,000 | 1,370,000,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 5,419,000,000 | 4,368,000,000 |
Gross Unrealized Gains | 3,000,000 | 4,000,000 |
Gross Unrealized Losses | -2,000,000 | -1,000,000 |
Fair Value | 5,420,000,000 | 4,371,000,000 |
Cash and cash equivalents | 2,254,000,000 | 1,657,000,000 |
Short-term marketable securities | 1,068,000,000 | 775,000,000 |
Long-term marketable securities | 2,098,000,000 | 1,939,000,000 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 2,415,000,000 | 1,756,000,000 |
Gross Unrealized Gains | 1,000,000 | 1,000,000 |
Gross Unrealized Losses | -1,000,000 | 0 |
Fair Value | 2,415,000,000 | 1,757,000,000 |
Cash and cash equivalents | 1,164,000,000 | 751,000,000 |
Short-term marketable securities | 136,000,000 | 205,000,000 |
Long-term marketable securities | 1,115,000,000 | 801,000,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 2,455,000,000 | 2,305,000,000 |
Gross Unrealized Gains | 2,000,000 | 3,000,000 |
Gross Unrealized Losses | -1,000,000 | -1,000,000 |
Fair Value | 2,456,000,000 | 2,307,000,000 |
Cash and cash equivalents | 541,000,000 | 599,000,000 |
Short-term marketable securities | 932,000,000 | 570,000,000 |
Long-term marketable securities | 983,000,000 | 1,138,000,000 |
Fair Value, Measurements, Recurring [Member] | Cash | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 549,000,000 | 307,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 549,000,000 | 307,000,000 |
Cash and cash equivalents | 549,000,000 | 307,000,000 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Bank and time deposits | Level 1 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 963,000,000 | 474,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 963,000,000 | 474,000,000 |
Cash and cash equivalents | 963,000,000 | 474,000,000 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Money market funds | Level 1 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 200,000,000 | 277,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 200,000,000 | 277,000,000 |
Cash and cash equivalents | 200,000,000 | 277,000,000 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. treasury and agency obligations | Level 1 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 1,252,000,000 | 1,005,000,000 |
Gross Unrealized Gains | 1,000,000 | 1,000,000 |
Gross Unrealized Losses | -1,000,000 | 0 |
Fair Value | 1,252,000,000 | 1,006,000,000 |
Cash and cash equivalents | 1,000,000 | 0 |
Short-term marketable securities | 136,000,000 | 205,000,000 |
Long-term marketable securities | 1,115,000,000 | 801,000,000 |
Fair Value, Measurements, Recurring [Member] | Commercial paper | Level 2 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 638,000,000 | 690,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 638,000,000 | 690,000,000 |
Cash and cash equivalents | 525,000,000 | 599,000,000 |
Short-term marketable securities | 113,000,000 | 91,000,000 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate bonds | Level 2 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 1,693,000,000 | 1,591,000,000 |
Gross Unrealized Gains | 2,000,000 | 3,000,000 |
Gross Unrealized Losses | -1,000,000 | -1,000,000 |
Fair Value | 1,694,000,000 | 1,593,000,000 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable securities | 783,000,000 | 477,000,000 |
Long-term marketable securities | 911,000,000 | 1,116,000,000 |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities and other | Level 2 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 124,000,000 | 24,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 124,000,000 | 24,000,000 |
Cash and cash equivalents | 16,000,000 | 0 |
Short-term marketable securities | 36,000,000 | 2,000,000 |
Long-term marketable securities | 72,000,000 | 22,000,000 |
Fair Value, Measurements, Recurring [Member] | None [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Cost | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
UNITED STATES | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Investments and Cash | 2,720,000,000 | ' |
Foreign Countries [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Investments and Cash | $2,700,000,000 | ' |
Minimum [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Available for Sale Debt maturities date | '1 year | ' |
Maximum [Member] | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' |
Available for Sale Debt maturities date | '3 years | ' |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Provision for income taxes | $5 | $9 | $10 | $8 | ' |
Effective tax rates | 4.90% | 2.80% | 3.70% | 3.00% | ' |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ' |
Deferred tax benefit from intangible asset impairment | ' | ' | 5 | 10 | ' |
Tax benefit from the expiration of statutes of limitations | 4 | 3 | 13 | 9 | ' |
Net deferred tax liabilities | $6 | ' | $6 | ' | $24 |
Debt_and_Credit_Facility_Detai
Debt and Credit Facility (Details) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Nov. 01, 2010 | Jul. 29, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Senior Notes [Member] | 2.375% fixed-rate notes, due November 2015 | 2.375% fixed-rate notes, due November 2015 | 2.375% fixed-rate notes, due November 2015 | 2.375% fixed-rate notes, due November 2015 | 2.700% fixed-rate notes, due November 2018 | 2.700% fixed-rate notes, due November 2018 | 2.700% fixed-rate notes, due November 2018 | 2.500% fixed-rate notes, due August 2022 | 2.500% fixed-rate notes, due August 2022 | 2.500% fixed-rate notes, due August 2022 | 3.500% fixed-rate notes, due August 2024 | 3.500% fixed-rate notes, due August 2024 | 3.500% fixed-rate notes, due August 2024 | 4.500% fixed-rate notes, due August 2034 | 4.500% fixed-rate notes, due August 2034 | 4.500% fixed-rate notes, due August 2034 | ||||
Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Issuance Date | ' | ' | ' | ' | 30-Nov-10 | ' | ' | ' | 30-Nov-11 | ' | ' | 31-Aug-12 | ' | ' | 29-Jul-14 | ' | ' | 29-Jul-14 | ' | ' |
Debt Instrument, Maturity Date | ' | ' | ' | ' | 30-Nov-15 | ' | ' | ' | 30-Nov-18 | ' | ' | 31-Aug-22 | ' | ' | 1-Aug-24 | ' | ' | 1-Aug-34 | ' | ' |
Fixed interest rate on senior note | ' | ' | ' | ' | 2.38% | ' | ' | ' | 2.70% | ' | ' | 2.50% | ' | ' | 3.50% | ' | ' | 4.50% | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | 2.49% | ' | ' | ' | 2.76% | ' | ' | 2.59% | ' | ' | 3.55% | ' | ' | 4.55% | ' | ' |
Percent Discount | ' | ' | ' | ' | 99.44% | ' | ' | ' | 99.61% | ' | ' | 99.26% | ' | ' | 99.62% | ' | ' | 99.40% | ' | ' |
Long-term Debt, Gross | $1,600,000,000 | $1,400,000,000 | ' | ' | ' | ' | $0 | $400,000,000 | ' | $500,000,000 | $500,000,000 | ' | $500,000,000 | $500,000,000 | ' | $350,000,000 | $0 | ' | $250,000,000 | $0 |
Unaccreted discount | -7,000,000 | -6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 1,593,000,000 | 1,394,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Extinguishment Principle Balance | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (Losses) on Extinguishment of Debt, before Write off of Deferred Debt Issuance Cost | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of Deferred Debt Issuance Cost | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured revolving facility loans aggregate available amount to be drawn | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding on line of credit facility | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Terms | 'The credit facility contains customary representations, warranties and covenants. The financial covenant in the credit facility requires us to maintain a consolidated leverage ratio of no more than 3.25:1.00. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 |
Equity [Abstract] | ' | ' | ' | ' | ' | ' |
Percentage increase in cash dividend | 9.00% | ' | ' | ' | ' | ' |
Dividend declared per share (usd per share) | ' | $0.12 | $0.11 | $0.36 | $0.33 | $0.48 |
Dividends paid | ' | $71 | $63 | $211 | $190 | ' |
Stock Repurchased and Retired During Period, Shares | ' | 6 | ' | 12.2 | ' | ' |
Weighted Average Repurchase Price | ' | $37.86 | ' | $34.26 | ' | ' |
Employee_Benefit_Plans_RSU_Act
Employee Benefit Plans (RSU Activity) (Details) (Restricted Stock Unit [Member], USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Restricted Stock Unit [Member] | ' |
Restricted stock unit activity, Number of shares | ' |
Balance at December 31, 2013, Number of Shares | 24 |
Restricted stock units granted, Number of Shares | 14 |
Restricted stock units cancelled, Number of Shares | -5 |
Restricted stock units vested, Number of Shares | -9 |
Balance at September 30, 2014, Number of Shares | 24 |
Restricted stock unit activity, Weighted average grant-date fair value per share | ' |
Balance at December 31, 2013, Weighted Average Grant-Date Fair Value per Share (usd per share) | $34.91 |
Restricted stock units granted, Weighted Average Grant Date Fair Value per share (usd per share) | $30.10 |
Restricted stock units cancelled, Weighted Average Grant-date Fair Value per Share (usd per share) | $32.66 |
Restricted stock units vested, Weighted Average Grant-Date Fair Value per Share (usd per share) | $34.97 |
Balance at September 30, 2014, Weighted Average Grant-Date Fair Value per Share (usd per share) | $32.52 |
Employee_Benefit_Plans_Option_
Employee Benefit Plans (Option Activity) (Details) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Activity under stock option incentive plans | ' |
Balance at December 31, 2013, Number of Shares | 39 |
Options cancelled, Number of Shares | -1 |
Options exercised, Number of Shares | -14 |
Balance at September 30, 2014, Number of Shares | 24 |
Stock option activity, Weighted average exercise price per share | ' |
Balance at December 31, 2013, Weighted Average Exercise Price per Share (usd per share) | $30.39 |
Options cancelled, Weighted Average Exercise Price per Share (usd per share) | $37.32 |
Options exercised, Weighted Average Exercise Price per Share (usd per share) | $24.95 |
Balance at September 30, Weighted Average Exercise Price per Share (usd per share) | $33.09 |
Employee_Benefit_Plans_Unearne
Employee Benefit Plans Unearned Stock Based Compensation) (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Unearned stock-based compensation estimated to be expensed related to unvested share-based payment awards | ' |
2014 | $98 |
2015 | 298 |
2016 | 191 |
2017 | 98 |
2018 | 16 |
Total | $701 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Gain (Loss) Related to Litigation Settlement | ($2) | $75 | ($20) | $75 |
Exit_of_Cellular_Baseband_Busi2
Exit of Cellular Baseband Business (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets Held-for-use | $200 | $130 | $0 | ' | $390 | $511 |
Inventory Write-down | ' | 34 | ' | ' | ' | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | ' | ' | 501 | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | ' | ' | 17 | ' |
Charged to expense | 114 | ' | 12 | ' | 142 | 12 |
Cash payments | ' | ' | ' | ' | -87 | ' |
Balance at September 30, 2014 | 72 | ' | ' | ' | 72 | ' |
Operating Expense [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Charged to expense | ' | ' | ' | ' | 142 | ' |
2014 Plan | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Number of Positions Eliminated | 2,300 | ' | ' | ' | ' | ' |
Facilities closed in connection with restructuring | 18 | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | ' | ' | 0 | ' |
Cash payments | ' | ' | ' | ' | -66 | ' |
Balance at September 30, 2014 | 70 | ' | ' | ' | 70 | ' |
2013 Plan | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | ' | ' | 17 | ' |
Cash payments | ' | ' | ' | ' | -21 | ' |
Balance at September 30, 2014 | 2 | ' | ' | ' | 2 | ' |
2013 Plan | Operating Expense [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Charged to expense | ' | ' | ' | ' | 6 | ' |
Contract Termination [Member] | 2014 Plan | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | 60 | ' | ' | ' | 60 | ' |
All Other | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets Held-for-use | 200 | ' | 0 | ' | 390 | 511 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Charged to expense | 114 | ' | 12 | ' | 142 | 12 |
All Other | 2014 Plan | Operating Expense [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Charged to expense | ' | ' | ' | ' | 136 | ' |
All Other | Employee Severance [Member] | 2014 Plan | Operating Expense [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Charged to expense | 108 | 18 | ' | ' | ' | ' |
All Other | Contract Termination [Member] | a2014 plan corporate action [Member] | Operating Expense [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Charged to expense | ' | 5 | ' | ' | ' | ' |
All Other | Contract Termination [Member] | 2014 Plan | Operating Expense [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Charged to expense | 5 | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets Held-for-use | ' | 104 | ' | ' | ' | ' |
EDA and other license [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets Held-for-use | ' | 19 | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | 2 | ' | ' | ' | ' |
Other Assets [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets Held-for-use | ' | $5 | ' | ' | ' | ' |
Goodwill_and_Other_Purchased_I2
Goodwill and Other Purchased Intangible Assets (Goodwill) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Mobile and Wireless [Member] | Broadband and Connectivity | Broadband and Connectivity | Broadband and Connectivity | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Foreign Currency [Member] | Foreign Currency [Member] | ||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | $5,622 | ' | ' | ' | $1,823 | ' | ' | $3,778 | ' | $21 |
Accumulated impairment losses | ' | ' | -1,829 | ' | ' | ' | -543 | ' | ' | -1,286 | ' | 0 |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill at December 31, 2013 | ' | 3,793 | ' | ' | ' | 1,280 | ' | ' | 2,492 | ' | 21 | ' |
Goodwill recorded in connection with acquisitions | ' | 5 | ' | ' | ' | 5 | ' | ' | 0 | ' | 0 | ' |
Transfer due to reorganization (Note 11) | ' | 0 | ' | 515 | 489 | -26 | ' | 26 | 26 | ' | 0 | ' |
Adjustment due to sale of certain assets (Note 2) | -37 | -37 | ' | ' | ' | 0 | ' | ' | -37 | ' | 0 | ' |
Effects of foreign currency translation | ' | -27 | ' | ' | ' | 0 | ' | ' | 0 | ' | -27 | ' |
Goodwill at September 30, 2014 | ' | $3,734 | ' | ' | $1,259 | $1,259 | ' | $2,481 | $2,481 | ' | ($6) | ' |
Goodwill_and_Other_Purchased_I3
Goodwill and Other Purchased Intangible Assets (Intangible Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | $1,487 | $1,888 |
Accumulated Amortization | -776 | -744 |
Net | 711 | 1,144 |
Developed technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 1,258 | 1,492 |
Accumulated Amortization | -583 | -539 |
Net | 675 | 953 |
In-process research and development | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 18 | 130 |
Accumulated Amortization | 0 | 0 |
Net | 18 | 130 |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 178 | 232 |
Accumulated Amortization | -162 | -176 |
Net | 16 | 56 |
Other | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 33 | 34 |
Accumulated Amortization | -31 | -29 |
Net | $2 | $5 |
Goodwill_and_Other_Purchased_I4
Goodwill and Other Purchased Intangible Assets (Amortization of Intangible Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization of purchased intangible assets | ' | ' | $169 | $172 |
All Other | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization of purchased intangible assets | 54 | 56 | 169 | 172 |
2014 | 45 | ' | 45 | ' |
2015 | 149 | ' | 149 | ' |
2016 | 121 | ' | 121 | ' |
2017 | 101 | ' | 101 | ' |
2018 | 86 | ' | 86 | ' |
Thereafter | 209 | ' | 209 | ' |
Total | 711 | ' | 711 | ' |
Cost of product revenue | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization of purchased intangible assets | 46 | 42 | 143 | 129 |
2014 | 42 | ' | 42 | ' |
2015 | 145 | ' | 145 | ' |
2016 | 117 | ' | 117 | ' |
2017 | 99 | ' | 99 | ' |
2018 | 84 | ' | 84 | ' |
Thereafter | 206 | ' | 206 | ' |
Total | 693 | ' | 693 | ' |
Other operating expenses | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization of purchased intangible assets | 8 | 14 | 26 | 43 |
2014 | 3 | ' | 3 | ' |
2015 | 4 | ' | 4 | ' |
2016 | 4 | ' | 4 | ' |
2017 | 2 | ' | 2 | ' |
2018 | 2 | ' | 2 | ' |
Thereafter | 3 | ' | 3 | ' |
Total | $18 | ' | $18 | ' |
Goodwill_and_Other_Purchased_I5
Goodwill and Other Purchased Intangible Assets (Impairments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Intangible Asset [Member] | Developed technology | Mobile and Wireless [Member] | Mobile and Wireless [Member] | Mobile and Wireless [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Embedded Processors [Member] | Embedded Processors [Member] | Embedded Processors [Member] | Knowledge Based Processors [Member] | Knowledge Based Processors [Member] | Knowledge and embedded processors [Member] | Knowledge and embedded processors [Member] | Knowledge and embedded processors [Member] | Knowledge and embedded processors [Member] | Digital Front End [Member] | Minimum [Member] | Maximum [Member] | |||
Fair Value, Inputs, Level 3 [Member] | Net Logic [Member] | Developed technology | Developed technology | Developed technology | Net Logic [Member] | Net Logic [Member] | Customer relationships | Other | Developed technology | Developed technology | In-process research and development | In-process research and development | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Infrastructure and Networking [Member] | Intangible Asset [Member] | Intangible Asset [Member] | |||
SC Square [Member] | Renesas Business Acquisition [Member] | Provigent [Member] | Provigent [Member] | Developed technology | Developed technology | In-process research and development | Developed technology | In-process research and development | Customer relationships | Customer relationships | Developed technology | In-process research and development | Developed technology | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | Net Logic [Member] | ||||||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified intangible assets | ' | ' | ' | $78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Intangible Assets (Excluding Goodwill) | $501 | ' | ' | ' | $25 | $19 | $5 | $200 | $461 | $50 | $2 | $358 | $40 | $91 | $10 | $115 | $35 | $12 | $37 | $20 | $16 | $48 | $238 | $88 | $87 | ' | ' |
Fair value measurements, valuation processes, description | ' | 'multiple period excess earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value inputs, discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | 22.00% |
Tax rate | ' | ' | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reportable_Segments_Significan2
Reportable Segments, Significant Customer and Geographical Information (Segments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Details of reportable segments | ' | ' | ' | ' | ' |
Net revenue | $2,260 | ' | $2,146 | $6,285 | $6,241 |
Stock-based compensation | ' | ' | ' | 340 | 401 |
Amortization of purchased intangible assets | ' | ' | ' | 169 | 172 |
Impairments of long-lived assets | 200 | 130 | 0 | 390 | 511 |
Settlement costs (gains) | 2 | ' | -75 | 20 | -75 |
Restructuring costs, net | 114 | ' | 12 | 142 | 12 |
Other charges (gains), net | -1 | ' | 25 | -60 | 25 |
Income from operations | 111 | ' | 336 | 295 | 286 |
Operating Segments [Member] | ' | ' | ' | ' | ' |
Details of reportable segments | ' | ' | ' | ' | ' |
Net revenue | 2,163 | ' | 1,990 | 5,960 | 5,670 |
Income from operations | 611 | ' | 530 | 1,587 | 1,382 |
Operating Segments [Member] | Broadband and Connectivity | ' | ' | ' | ' | ' |
Details of reportable segments | ' | ' | ' | ' | ' |
Net revenue | 1,512 | ' | 1,403 | 4,060 | 4,107 |
Income from operations | 398 | ' | 336 | 940 | 966 |
Operating Segments [Member] | Infrastructure and Networking | ' | ' | ' | ' | ' |
Details of reportable segments | ' | ' | ' | ' | ' |
Net revenue | 651 | ' | 587 | 1,900 | 1,563 |
Income from operations | 213 | ' | 194 | 647 | 416 |
Cellular Baseband [Member] | ' | ' | ' | ' | ' |
Details of reportable segments | ' | ' | ' | ' | ' |
Net revenue | 97 | ' | 156 | 325 | 485 |
Income from operations | -35 | ' | -62 | -281 | -179 |
All Other | ' | ' | ' | ' | ' |
Details of reportable segments | ' | ' | ' | ' | ' |
Net revenue | 0 | ' | 0 | 0 | 86 |
Stock-based compensation | 107 | ' | 125 | 340 | 401 |
Amortization of purchased intangible assets | 54 | ' | 56 | 169 | 172 |
Amortization of acquired inventory step-up and inventory charges related to the exit of the cellular baseband business | -7 | ' | 0 | 27 | 1 |
Impairments of long-lived assets | 200 | ' | 0 | 390 | 511 |
Settlement costs (gains) | 2 | ' | -75 | 20 | -75 |
Restructuring costs, net | 114 | ' | 12 | 142 | 12 |
Other charges (gains), net | -1 | ' | 25 | -60 | 25 |
Employer payroll tax on certain stock option exercises | 1 | ' | 1 | 5 | 4 |
Miscellaneous corporate allocation variances | -5 | ' | -12 | -22 | -48 |
Total other operating costs and expenses | 465 | ' | 132 | 1,011 | 1,003 |
Income from operations | ($465) | ' | ($132) | ($1,011) | ($917) |
Reportable_Segments_Significan3
Reportable Segments, Significant Customer and Geographical Information (Concentrations) (Details) (Sales [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 100.00% | 100.00% | 100.00% | 100.00% |
China (exclusive of Hong Kong) | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 24.70% | 25.00% | 23.20% | 22.90% |
Hong Kong | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 31.60% | 26.90% | 30.60% | 26.90% |
Singapore, Taiwan, Thailand and Japan | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 28.80% | 32.60% | 30.90% | 35.80% |
United States | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 3.90% | 4.20% | 4.40% | 3.50% |
Europe | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 2.00% | 1.80% | 2.00% | 1.80% |
Other | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 9.00% | 9.50% | 8.90% | 9.10% |
Two largest customers | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 29.90% | 34.90% | 28.20% | 34.60% |
Five largest customers as a group | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of net revenue | 45.40% | 49.10% | 44.60% | 48.30% |
Reportable_Segments_Significan4
Reportable Segments, Significant Customer and Geographical Information (Other Information) (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | |
Segment | Segment | product_line | |
product | |||
Segment Reporting [Abstract] | ' | ' | ' |
Number of reportable segments | 2 | 3 | ' |
Net revenue from other sources (less than) | ' | ' | 1.00% |
Number of products | ' | ' | 550 |
Number of product lines | ' | ' | 70 |