San Diego, CA-Based QualComm Dec 2017 Quarter Earnings: What a Mess To Attempt To Decipher .................................................................................... Dec 2017 Quarter Revenues Up Only 1% Over the Dec 2016 Quarter ................................................................................... Dec 2017 Operating Income was Only $29 Mil But It Included a $1,200 Mil EC Fine and Dec 2016 Operating Income Was $778 Mil But Included a $868 Mil KFTC Charge: Any Way You Look At It, Not Good ................................................................................... Dec 2017 Quarter Net Loss Was $5.953 Bil But Also Included $5.9 Bil Trump Tax Bill Income Tax Expense Charge, $5.3 Bil of Which Was the Tax Cost of Mandatory Foreign Earnings Repatriation and $562 Mil DTA Value Decline Charge ................................................................................... The One Good Item to Qualcomm Relates to the Mandatory Foreign Earnings Repatriation. In Its Sept 2017 Annual Report, at Sept 30, 2017, QualComm Had $39 Bil of Cumulative Undistributed Foreign Earnings Which Were Indefinitely Invested Outside the US and the Related Total Income Tax Then Was $13.7 Bil, For an Income Tax Rate of 35.1%. With the Trump Tax Bill, the Income Tax Rate Now Is a Much Lower 13.6% Based on QualComm’s $5.3 Bil Tax Cost and the Same $39 Bil of Undistributed Foreign Earnings. Also, QualComm Expects to Pay a Lower Amount of $3.3 Bil Due to the Expected Availability of Federal Tax Credits.