Qualcomm

Financial, Market and Other Stockholder Information Selected Financial Data Management’s Discussion and Analysis Market Risk Controls and Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets

Consolidated Statements of Operations Consolidated Statements of Cash Flows Consolidated Statements of Stockholders’ Equity Notes to Consolidated Financial Statements Financial Highlights Notes and Safe Harbor Statement Note Regarding Use of Non-GAAP Financial Measures Reconciliation of Non-GAAP Financial Measures

In this document, the words “the Company,” “we,” “our,” “ours” and “us” refer only to Qualcomm Incorporated and not any other person or entity.

FINANCIAL INFORMATION
The following is certain financial information of the Company that was originally filed with the Securities and Exchange Commission (SEC) on November 2, 2005 as part of the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2005. The Company has not undertaken any updates or revision to such information since the date it was originally filed with the SEC. Accordingly, you are encouraged to review such financial information together with subsequent information filed by the Company with the SEC, if any, and other publicly available information.

We operate and report using a 52-53 week fiscal year ending the last Sunday in September. Our 52-week fiscal years consist of four equal quarters of 13 weeks each, and our 53-week fiscal years consist of three 13-week fiscal quarters and one 14-week fiscal quarter. The financial results for our 53-week fiscal years and our 14-week fiscal quarters will not be exactly comparable to our 52-week fiscal years and our 13-week fiscal quarters. Each of the fiscal years ended September 25, 2005, September 26, 2004, September 28, 2003 and September 29, 2002 included 52 weeks. The fiscal year ended September 30, 2001 included 53 weeks.

Market for Registrant’s Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities
On July 13, 2004, we announced a two-for-one stock split in the form of a stock dividend. Stock was distributed on August 13, 2004 to stockholders of record as of July 23, 2004. All references in this Annual Report to number of shares and per share amounts reflect the stock split.

Market Information
Our common stock is traded on the NASDAQ National Market under the symbol “QCOM.” The following table sets forth the range of high and low sales prices on the National Market of the common stock for the periods indicated, as reported by NASDAQ. Such quotations represent inter-dealer prices without retail markup, markdown or commission and may not necessarily represent actual transactions.

As of October 31, 2005, there were 10,595 holders of record of our common stock. On October 31, 2005, the last sale price reported on the NASDAQ National Market for our common stock was $39.76 per share.

Dividends
On March 2, 2004, we announced an increase in our quarterly dividend from $0.035 to $0.050 per share on our common stock. On July 13, 2004, we announced an increase in our quarterly dividend from $0.050 to $0.070 per share on our common stock. On March 8, 2005, we announced an increase in our quarterly dividend from $0.070 to $0.090 per share on our common stock. Cash dividends announced in fiscal 2004 and 2005 were as follows (in millions, except per share data):

On October 10, 2005, we announced a cash dividend of $0.09 per share on our common stock, payable on January 4, 2006 to stockholders of record as of December 7, 2005. We intend to continue to pay quarterly dividends subject to capital availability and periodic determinations that cash dividends are in the best interests of our stockholders. Future dividends may be affected by, among other items, our views on potential future capital requirements, including those relating to research and development, creation and expansion of sales distribution channels and investments and acquisitions, legal risks, stock repurchase programs, changes in federal income tax law and changes to our business model.

Stock Options
Our stock option plans are part of a broad-based, long-term retention program that is intended to attract and retain talented employees and directors and align stockholder and employee interests.

Pursuant to our 2001 Stock Option Plan (2001 Plan), we may grant options to selected employees, directors and consultants to purchase shares of our common stock at a price not less than the fair market value of the stock at the date of grant. The 2001 Plan provides for the grant of both incentive stock options and non-qualified stock options. Generally, options outstanding vest over five years and are exercisable for up to 10 years from the grant date. We also may grant options pursuant to our 2001 Non-Employee Directors’ Stock Option Plan (the 2001 Directors’ Plan). This plan provides for non-qualified stock options to be granted to non-employee directors at an exercise price of not less than fair market value of the stock at the date of grant, vesting over periods not exceeding five years and exercisable for up to 10 years from the grant date. The Board of Directors may terminate the 2001 Plan and/or the 2001 Directors’ Plan at any time though it must, nevertheless, honor any stock options previously granted pursuant to the plans.

Additional information regarding our stock option plans and plan activity for fiscal 2005, 2004 and 2003 is provided in our consolidated financial statements in this Annual Report in “Notes to Consolidated Financial Statements, Note 8—Employee Benefit Plans” and in our 2006 Proxy Statement under the heading “Equity Compensation Plan Information.”

Issuer Purchases of Equity Securities
On March 8, 2005, we authorized the repurchase of up to $2 billion of the Company’s common stock with no expiration date. During fiscal 2005, we repurchased and retired 27,083,000 shares of our common stock for $953 million. In connection with this stock repurchase program, we have two put options outstanding at September 25, 2005, with expiration dates of December 7, 2005 and March 21, 2006, that may require us to repurchase 11,500,000 shares for $411 million (net of the option premiums received). At September 25, 2005, $636 million remained authorized for repurchases under our stock repurchase program.