Qualcomm Incorporated

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Three Months Ended

Twelve Months Ended

September 29, 2013

September 30, 2012

September 29, 2013

September 30, 2012

Operating Activities:

Net income

$

1,501

$

1,263

$

6,845

$

6,059

Adjustments to reconcile net income to net cash provided by operating activities:

   Depreciation and amortization expense

273

257

1,017

897

   Gain on sale of wireless spectrum

—

—

—

(1,179)

   Goodwill and long-lived asset impairment charges

1

59

192

84

   Revenues related to non-monetary exchanges

(30)

(30)

(123)

(122)

   Income tax provision in excess of income tax payments

48

156

268

395

   Non-cash portion of share-based compensation expense

274

283

1,105

1,035

   Incremental tax benefit from share-based compensation

(53)

(41)

(231)

(168)

   Net realized gains on marketable securities and other investments

(129)

(155)

(369)

(369)

   Net impairment losses on marketable securities and other investments

36

19

85

83

Other items, net

82

10

104

(52)

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

   Accounts receivable, net

(235)

(207)

(680)

(456)

   Inventories

399

(199)

(300)

(252)

   Other assets

(98)

(209)

(209)

(240)

   Trade accounts payable

(291)

174

307

371

   Payroll, benefits and other liabilities

700

71

752

(341)

   Unearned revenues

45

(42)

15

253

   Net cash provided by operating activities

2,523

1,409

8,778

5,998

Investing Activities:

Capital expenditures

(200)

(250)

(1,048)

(1,284)

Purchases of available-for-sale securities

(1,839)

(3,707)

(13,951)

(15,511)

Proceeds from sales and maturities of available-for-sale securities

6,157

4,084

13,494

9,858

Purchases of trading securities

(654)

(1,729)

(3,312)

(4,009)

Proceeds from sales and maturities of trading securities

1,002

1,763

3,367

3,060

Proceeds from sale of wireless spectrum

—

—

—

1,925

Acquisitions and other investments, net of cash acquired

(13)

(156)

(192)

(833)

Other items, net

(4)

(7)

64

(83)

   Net cash provided (used) by investing activities

4,449

(2)

(1,578)

(6,877)

Financing Activities:

Borrowing under loans and debentures

—

—

534

710

Repayment of loans and debentures

—

—

(439)

(591)

Proceeds from issuance of common stock

561

355

1,525

1,714

Incremental tax benefit from share-based compensation

53

41

231

168

Repurchases and retirements of common stock

(3,321)

(841)

(4,610)

(1,313)

Dividends paid

(592)

(426)

(2,055)

(1,583)

Other items, net

(66)

(146)

(31)

138

   Net cash used by financing activities

(3,365)

(1,017)

(4,845)

(757)

Changes in cash and cash equivalents held for sale

—

—

(15)

—

Effect of exchange rate changes on cash

2

5

(5)

(19)

   Net increase (decrease) in cash and cash equivalents

3,609

395

2,335

(1,655)

Cash and cash equivalents at beginning of year

2,533

3,412

3,807

5,462

   Cash and cash equivalents at end of year

$

6,142

$

3,807

$

6,142

$

3,807