Table of Contents Principal Amount by Expected Maturity Average Interest Rates (Dollars in millions)
## Table 0 ##
Cash and cash equivalents and available-for-sale securities are recorded at fair value.
The loan payable to banks approximates fair value.
Equity Price Risk.
We have a diversified marketable securities portfolio that includes equity securities held by mutual and exchange-traded fund shares that are subject to equity price risk.
We have made investments in marketable equity securities of companies of varying size, style, industry and geography, and changes in investment allocations may affect the price volatility of our investments.
A 10% decrease in the market price of our marketable equity securities and equity mutual fund and exchange-traded fund shares at September 26, 2010 would cause a decrease in the carrying amounts of these securities of $270 million.
At September 26, 2010, gross unrealized losses of our marketable equity securities and equity mutual and exchange-traded fund shares were $11 million.
Although we consider these unrealized losses to be temporary, there is a risk that we may incur net other-than-temporary impairment charges or realized losses on the values of these securities if they do not recover in value within a reasonable period.
Foreign Exchange Risk.
We manage our exposure to foreign exchange market risks, when deemed appropriate, through the use of derivative financial instruments, including foreign currency forward and option contracts with financial counterparties.
Such derivative financial instruments are viewed as hedging or risk management tools and are not used for speculative or trading purposes.
Counterparties to our derivative contracts are all major institutions.
In the event of the financial insolvency or distress of a counterparty to our derivative financial instruments, we may be unable to settle transactions if the counterparty does not provide us with sufficient collateral to secure its net settlement obligations to us, which could have a negative impact on our results.
At September 26, 2010, we had a net liability of $13 million related to foreign currency option contracts that were designated as hedges of foreign currency risk on royalties earned from certain international licensees on their sales of CDMA-based devices and a net liability of $2 million related to foreign currency option contracts that have been rendered ineffective as a result of changes in our forecast of royalty revenues.
If our forecasted royalty revenues were to decline by 50% and foreign exchange rates were to change unfavorably by 20% in each of our hedged foreign currencies, we would incur a loss of approximately $16 million resulting from a decrease in the fair value of the portion of our hedges that would be rendered ineffective.
In addition, we are subject to market risk on foreign currency option contracts that have been deemed ineffective.
If foreign exchange rates relevant to those contracts were to change unfavorably by 20%, we would incur a loss of $20 million resulting from a decrease in the fair value of our hedges.
See “Notes to Consolidated Financial Statements, Note 1 — The Company and Its Significant Accounting Policies” for a description of our foreign currency accounting policies.
Table of Contents QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Weighted-average amortization periods for finite-lived intangible assets, by class, were as follows at September 26, 2010 and September 27, 2009:
## Table 1 ##
Impairment of Long-Lived and Intangible Assets.
The Company assesses potential impairments to its long-lived assets or asset groups when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recovered.
An impairment loss is recognized when the carrying amount of the long-lived asset or asset group is not recoverable and exceeds its fair value.
The carrying amount of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group.
Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset or asset group exceeds its fair value and is recorded as a reduction in the carrying value of the related asset or asset group and a charge to operating results.
Intangible assets with indefinite lives are tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired.
Securities Lending.
The Company may engage in transactions in which certain fixed-income and equity securities are loaned to selected broker-dealers.
At September 26, 2010 and September 27, 2009, there were no securities loaned under the Company’s securities lending program.
Cash collateral is held and invested by one or more securities lending agents on behalf of the Company.
The Company monitors the fair value of securities loaned and the collateral received and obtains additional collateral as necessary .
Litigation.
The Company is currently involved in certain legal proceedings.
The Company records its best estimate of a loss related to pending litigation when the loss is considered probable and the amount can be reasonably estimated.
Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability related to the claim.
As additional information becomes available, the Company assesses the potential liability related to the Company’s pending litigation and revises its estimates.
The Company’s policy is to expense legal costs associated with defending itself as incurred.
Share-Based Compensation.
Share-based compensation expense for equity-classified awards, principally related to stock options and restricted stock units (RSUs), is measured at the grant date, based on the estimated fair value of the award and is recognized over the employee’s requisite service period.
The grant-date fair values of employee stock options are estimated using the lattice binomial option-pricing model.
The weighted-average estimated fair values of employee stock options granted during fiscal 2010, 2009 and 2008 were $12.40, $14.27 and $15.97 per share, respectively.
The following table presents the weighted-average assumptions (annualized percentages) used to estimate the fair values of employee stock options granted in the periods presented:
## Table 2 ##
The Company uses the implied volatility of market-traded options in the Company’s stock to determine the expected volatility.
The term structure of volatility is used up to approximately two years, and the Company uses the implied volatility of the option with the longest time to maturity for periods beyond two years.
The risk-free interest rate is based upon observed interest rates appropriate for the terms of the Company’s employee stock options.
The Company does not target a specific dividend yield for its dividend payments but is required to assume a dividend yield as an input to the binomial model.
The dividend yield is based on the Company’s history and expectation of future dividend payouts and may be subject to substantial change in the future.
The post-vest forfeiture rate and
Table of Contents QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS because they are deemed to be similar to product warranties in that they relate to claims and/or other actions that could impair the ability of the Company’s direct or indirect customers to use the Company’s products or services.
Accordingly, the Company records liabilities resulting from the arrangements when they are probable and can be reasonably estimated.
Reimbursements under indemnification arrangements have not been material to the Company’s consolidated financial statements.
The Company has not recorded any accrual for contingent liabilities at September 26, 2010 associated with these indemnification arrangements, other than negligible amounts for reimbursement of legal costs, based on the Company’s belief that additional liabilities, while possible, are not probable.
Further, any possible range of loss cannot be estimated at this time.
Purchase Obligations.
The Company has agreements with suppliers and other parties to purchase inventory, other goods, services and long-lived assets.
Noncancelable obligations under these agreements at September 26, 2010 for fiscal 2011 through 2015 to be $1.4 billion, $162 million, $60 million, $19 million and $48 million, respectively, and $39 million thereafter.
Of these amounts, for fiscal 2011 and fiscal 2012, commitments to purchase integrated circuit product inventories comprised $1.2 billion and $15 million, respectively.
Leases.
The Company leases certain of its facilities and equipment under noncancelable operating leases, with terms ranging from less than one year to 35 years and with provisions in certain leases for cost-of-living increases.
Rental expense for fiscal 2010, 2009 and 2008 was $85 million, $80 million and $75 million, respectively.
The Company leases certain property under capital lease agreements that expire at various dates through 2043.
Capital lease obligations are included in other liabilities.
The future minimum lease payments for all capital leases and operating leases at September 26, 2010 were as follows (in millions):

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>2011</td><td>2012</td><td>2013</td><td>2014</td><td>2015</td><td>Thereafter</td><td>No Single Maturity</td><td> Total</td></tr><tr><td>Fixed interest-bearing securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$698</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$698</td></tr><tr><td>Interest rate</td><td>0.3%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Time deposits</td><td>$400</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$400</td></tr><tr><td>Interest rate</td><td>0.6%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Available-for-sale securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Investment grade</td><td>$1,299</td><td>$672</td><td>$695</td><td>$558</td><td>$162</td><td>$229</td><td>$1,818</td><td>$5,433</td></tr><tr><td>Interest rate</td><td>2.2%</td><td>3.3%</td><td>2.7%</td><td>3.9%</td><td>3.7%</td><td>7.9%</td><td>1.3%</td><td></td></tr><tr><td>Non-investment grade</td><td>$11</td><td>$25</td><td>$45</td><td>$107</td><td>$234</td><td>$836</td><td>$20</td><td>$1,278</td></tr><tr><td>Interest rate</td><td>12.6%</td><td>8.7%</td><td>9.7%</td><td>9.6%</td><td>10.3%</td><td>8.7%</td><td>0.7%</td><td></td></tr><tr><td>Floating interest-bearing securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$2,488</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$2,488</td></tr><tr><td>Interest rate</td><td>0.2%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Available-for-sale securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Investment grade</td><td>$785</td><td>$499</td><td>$225</td><td>$35</td><td>$29</td><td>$465</td><td>$451</td><td>$2,489</td></tr><tr><td>Interest rate</td><td>1.0%</td><td>0.8%</td><td>0.9%</td><td>1.7%</td><td>1.0%</td><td>8.7%</td><td>2.8%</td><td></td></tr><tr><td>Non-investment grade</td><td>$5</td><td>$39</td><td>$137</td><td>$317</td><td>$146</td><td>$372</td><td>$1,071</td><td>$2,087</td></tr><tr><td>Interest rate</td><td>7.6%</td><td>5.7%</td><td>6.5%</td><td>6.6%</td><td>6.4%</td><td>7.0%</td><td>4.1%</td><td></td></tr><tr><td>Loan payable to banks</td><td>$1,086</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$1,086</td></tr><tr><td>Fixed interest rate</td><td>6.8%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
<table><tr><td>Wireless licenses</td><td>5 years</td></tr><tr><td>Marketing-related</td><td>18 years</td></tr><tr><td>Technology-based</td><td>14 years</td></tr><tr><td>Customer-related</td><td>5 years</td></tr><tr><td>Other</td><td>22 years</td></tr><tr><td>Total intangible assets</td><td>14 years</td></tr></table>
<table><tr><td></td><td>2010</td><td>2009</td><td> 2008</td></tr><tr><td>Volatility</td><td>33.8%</td><td>42.7%</td><td>41.1%</td></tr><tr><td>Risk-free interest rate</td><td>2.5%</td><td>2.6%</td><td>3.8%</td></tr><tr><td>Dividend yield</td><td>1.5%</td><td>1.5%</td><td>1.3%</td></tr><tr><td>Post-vest forfeiture rate</td><td>9.8%</td><td>9.2%</td><td>8.0%</td></tr><tr><td>Suboptimal exercise factor</td><td>1.8</td><td>1.9</td><td>1.9</td></tr></table>

Question: What is the sum of Cash and cash equivalents in 2011 and Suboptimal exercise factor in 2010?
Answer: 699.8
Reasoning program: add(698,1.8)