Segment Information We are organized on the basis of products and services and have three reportable segments. We conduct business primarily through our QCT (Qualcomm CDMA Technologies) semiconductor business and our QTL (Qualcomm Technology Licensing) licensing business. QCT develops and supplies integrated circuits and system software based on CDMA, OFDMA and other technologies for use in mobile devices, wireless networks, devices used in the Internet of Things (IoT), broadband gateway equipment, consumer electronic devices and automotive telematics and infotainment systems. QTL grants licenses to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments and includes revenues and related costs associated with development contracts with an equity method investee. We also have nonreportable segments, including our cyber security solutions, mobile health and other wireless technology and service initiatives. We evaluate the performance of our segments based on earnings (loss) before income taxes (EBT). In fiscal 2018, all of the costs related to pre-commercial research and development of 5G technologies, of which $100 million was recorded in the first quarter of fiscal 2018, were included in unallocated corporate research and development expenses. Beginning in the first quarter of fiscal 2019, all research and development costs associated with 5G technologies are included in segment results. Additionally, beginning in the first quarter of fiscal 2019, certain research and development costs associated with early research and development that have historically been included in our QCT segment are allocated to our QTL segment. The net effect of these changes negatively impacted QTLs EBT by $122 million and did not have a significant impact on QCT EBT in the first quarter of fiscal 2019. During the first quarter of fiscal 2019, we combined our Small Cells business, which sells products designed for the implementation of small cells to address the challenge of meeting the increased demand for mobile data, into our QCT segment. Revenues and operating results related to the Small Cells business were included in nonreportable segments through the end of fiscal 2018. Prior period segment information has not been adjusted to conform to the new segment presentation as such adjustments are insignificant. The table below presents revenues, EBT and total assets for reportable segments (in millions): Three Months Ended December 30, 2018 December 24, 2017 Revenues QCT $ 3,739 $ 4,651 QTL 1,018 1,266 QSI 27 30 Reconciling items 58 88 Total $ 4,842 $ 6,035 EBT QCT $ 598 $ 955 QTL 590 854 QSI 8 11 Reconciling items (637 ) (1,880 ) Total $ 559 $ (60 ) December 30, 2018 September 30, 2018 Assets QCT $ 2,684 $ 3,041 QTL 2,405 1,472 QSI 1,296 1,279 Reconciling items 27,861 26,926 Total $ 34,246 $ 32,718 Reconciling items for revenues and EBT in the previous table were as follows (in millions): Three Months Ended December 30, 2018 December 24, 2017 Revenues Nonreportable segments $ 58 $ 88 $ 58 $ 88 EBT Unallocated cost of revenues $ (114 ) $ (117 ) Unallocated research and development expenses (147 ) (280 ) Unallocated selling, general and administrative expenses (64 ) (161 ) Unallocated other expenses (Note 2) (149 ) (1,183 ) Unallocated interest expense (153 ) (170 ) Unallocated investment and other income, net 20 124 Nonreportable segments (30 ) (93 ) $ (637 ) $ (1,880 ) Unallocated other expenses in the three months ended December 30, 2018 were comprised of the charges related to our Cost Plan, partially offset by a benefit related to a favorable legal settlement (Note 2). Unallocated other expenses in the three months ended December 24, 2017 were comprised of the EC fine (Note 6). Unallocated acquisition-related expenses were comprised as follows (in millions): Three Months Ended December 30, 2018 December 24, 2017 Cost of revenues $ 103 $ 106 Research and development expenses 1 2 Selling, general and administrative expenses 7 76