Qualcomm (QCOM) Enters $5B of Accelerated Buyback Agreements

Qualcomm (NASDAQ: QCOM) announced that it has entered into accelerated share repurchase agreements (ASR Agreements) with two financial institutions to repurchase an aggregate of $5.0 billion of Qualcomm's common stock, with an initial delivery of approximately 57.7 million shares. The final number of shares to be repurchased will be based on the volume-weighted average stock price of Qualcomm's common stock during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements. The Company is funding the accelerated share repurchase with proceeds from its recently completed $10.0 billion debt offering.

"We are pleased to initiate this accelerated share repurchase as we continue to execute on our enhanced capital return program," said Steve Mollenkopf, CEO of Qualcomm Incorporated. "These repurchases represent a significant step towards meeting our goal of repurchasing $10 billion of common stock by March 2016, in addition to our commitment to return a minimum of 75 percent of free cash flow to stockholders through dividends and repurchases. The Board and the management team remain committed to returning capital to stockholders and believe we can continue to do so as we invest to create longer term stockholder value."

Qualcomm plans to implement the remaining portion of its stock repurchase program through various means, which may include but are not limited to open market purchases, one or more Rule 10b5-1 plans, privately negotiated transactions, the use of derivative instruments and/or additional accelerated share repurchase programs.

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