SAN JOSE, Calif., Dec. 6, 2018 /PRNewswire/ -- Broadcom Inc.
(Nasdaq: AVGO), a global technology leader that designs, develops
and supplies semiconductor and infrastructure software solutions,
today reported financial results for the fourth fiscal quarter and
fiscal year ended November 4, 2018,
and provided guidance for its fiscal year 2019. The Company
completed its acquisition of CA Technologies on November 5, 2018. The financial results provided
below do not include any contribution from CA Technologies.
"Strong operating performance in the fiscal fourth quarter caps
a year of solid results that continues to reinforce the
sustainability of our business model. Revenues grew 18% to nearly
$21 billion on the back of strong
demand for our networking, enterprise storage, wireless and
industrial products while operating margin continued to
progressively expand to 50%," said Hock Tan, President and CEO of
Broadcom Inc. "Looking forward to fiscal year 2019, we expect
another year of double digit revenue growth. Sustained demand
within our semiconductor segment will be augmented by the newly
acquired mainframe and enterprise software businesses to our
infrastructure software segment. We also expect operating margin to
hit another record in fiscal year 2019 driven by improved operating
leverage."
"Free cash flow from operations grew 50% in fiscal year 2018 to
$8.2 billion. As a result, we are
raising our target dividend by 51 percent to $2.65 per share per quarter for fiscal year
2019," said Tom Krause, CFO of
Broadcom Inc. "Looking ahead for the year, we expect sustained
revenue growth and improving operating leverage to accelerate cash
generation from operations. Our capital allocation strategy remains
unchanged for fiscal year 2019. We plan to return 50% of our prior
fiscal year free cash flows to stockholders in the form of
dividends and use the balance of our free cash flows to buy back
stock and support additional acquisitions, while remaining focused
on maintaining our investment grade credit rating."
Fourth Quarter Fiscal Year 2018 GAAP Results from Continuing
Operations
Net revenue was $5,444 million, an
increase of 8 percent from $5,063
million in the previous quarter and an increase of 12
percent from $4,844 million in the
same quarter last year.
Gross margin was $2,935 million,
or 53.9 percent of net revenue. This compares with gross margin of
$2,619 million, or 51.7 percent of
net revenue, in the prior quarter, and gross margin of $2,383 million, or 49.2 percent of net revenue,
in the same quarter last year.
Operating expenses were $1,283
million. This compares with $1,280
million in the prior quarter and $1,628 million in the same quarter last year.
Operating income was $1,652
million, or 30.3 percent of net revenue. This compares with
operating income of $1,339 million,
or 26.4 percent of net revenue, in the prior quarter, and operating
income of $755 million, or 15.6
percent of net revenue, in the same quarter last year.
Net income, which includes the impact of discontinued
operations, was $1,115 million, or
$2.64 per diluted share. This
compares with net income of $1,196
million, or $2.71 per diluted
share, in the prior quarter, and net income of $561 million, or $1.25 per diluted share, in the same quarter last
year.
Fourth Quarter Fiscal
Year 2018 GAAP Results
|
|
|
|
|
|
|
|
Change
|
(Dollars in millions,
except per share
data)
|
|
Q4 18
|
|
Q3 18
|
|
Q4 17
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
|
$
5,444
|
|
$
5,063
|
|
$
4,844
|
|
+8%
|
|
+12%
|
Gross
margin
|
|
53.9%
|
|
51.7%
|
|
49.2%
|
|
+220bps
|
|
+470bps
|
Operating
expenses
|
|
$
1,283
|
|
$
1,280
|
|
$
1,628
|
|
+$
3
|
|
-$
345
|
Net income
|
|
$
1,115
|
|
$
1,196
|
|
$
561
|
|
-$
81
|
|
+$
554
|
Net income
attributable to noncontrolling interest
|
|
$
-
|
|
$
-
|
|
$
29
|
|
$
-
|
|
-$
29
|
Net income
attributable to common stock
|
|
$
1,115
|
|
$
1,196
|
|
$
532
|
|
-$
81
|
|
+$
583
|
Earnings per share -
diluted
|
|
$
2.64
|
|
$
2.71
|
|
$
1.25
|
|
-$ 0.07
|
|
+$
1.39
|
The Company's cash and cash equivalents at the end of the fourth
fiscal quarter were $4,292 million,
compared to $4,136 million at the end
of the prior quarter.
During the fourth fiscal quarter, the Company generated
$2,635 million in cash from
operations and spent $1,533 million
repurchasing an aggregate of 6.4 million shares and $106 million in capital expenditures.
On September 28, 2018, the Company
paid a cash dividend of $1.75 per
share of common stock, totaling $723
million.
Fourth Quarter Fiscal Year 2018 Non-GAAP Results From
Continuing Operations
The differences between the Company's GAAP and non-GAAP results
are described generally under "Non-GAAP Financial Measures" below,
and presented in detail in the financial reconciliation tables
attached to this release.
Net revenue from continuing operations was $5,448 million, an increase of 8 percent from
$5,066 million in the previous
quarter, and an increase of 12 percent from $4,848 million in the same quarter last year.
Gross margin from continuing operations was $3,725 million, or 68.4 percent of net revenue.
This compares with gross margin from continuing operations of
$3,410 million, or 67.3 percent of
net revenue, in the prior quarter, and $3,068 million, or 63.3 percent of net revenue,
in the same quarter last year.
Operating income from continuing operations was $2,862 million, or 52.5 percent of net revenue.
This compares with operating income from continuing operations of
$2,536 million, or 50.1 percent of
net revenue, in the prior quarter, and $2,293 million, or 47.3 percent of net revenue,
in the same quarter last year.
Net income from continuing operations was $2,546 million, or $5.85 per diluted share. This compares with net
income of $2,257 million, or
$4.98 per diluted share, in the prior
quarter, and net income of $2,091
million, or $4.59 per diluted
share, in the same quarter last year.
Free cash flow from operations, defined as cash from operations
less capital expenditures, was $2,529
million in the quarter, compared to $1,726 million in the same quarter last year.
Fourth Quarter Fiscal
Year 2018 Non-GAAP Results
|
|
|
|
|
|
|
|
Change
|
(Dollars in millions,
except per share
data)
|
|
Q4 18
|
|
Q3 18
|
|
Q4 17
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
|
$
5,448
|
|
$
5,066
|
|
$
4,848
|
|
+8%
|
|
+12%
|
Gross
margin
|
|
68.4%
|
|
67.3%
|
|
63.3%
|
|
+110bps
|
|
+510bps
|
Operating
expenses
|
|
$
863
|
|
$
874
|
|
$
775
|
|
-$
11
|
|
+$
88
|
Net income
|
|
$
2,546
|
|
$
2,257
|
|
$
2,091
|
|
+$
289
|
|
+$
455
|
Earnings per share -
diluted
|
|
$
5.85
|
|
$
4.98
|
|
$
4.59
|
|
+$
0.87
|
|
+$
1.26
|
Other Quarterly
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue by
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
(Dollars in
millions)
|
|
Q4 18
|
|
Q3 18
|
|
Q4 17
|
|
Q/Q
|
|
Y/Y
|
Wired
infrastructure
|
|
$
2,208
|
|
41%
|
|
|
$
2,297
|
|
45%
|
|
|
$
2,146
|
|
45%
|
|
|
-4%
|
|
3%
|
Wireless
communications
|
|
1,698
|
|
31
|
|
|
1,288
|
|
25
|
|
|
1,796
|
|
37
|
|
|
32%
|
|
-5%
|
Enterprise storage
|
|
1,266
|
|
23
|
|
|
1,253
|
|
25
|
|
|
645
|
|
13
|
|
|
1%
|
|
96%
|
Industrial & other
|
|
272
|
|
5
|
|
|
225
|
|
5
|
|
|
257
|
|
5
|
|
|
21%
|
|
6%
|
Total
net revenue
|
|
$
5,444
|
|
100%
|
|
|
$
5,063
|
|
100%
|
|
|
$
4,844
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net revenue
by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
(Dollars in
millions)
|
|
Q4 18
|
|
Q3 18
|
|
Q4 17
|
|
Q/Q
|
|
Y/Y
|
Wired
infrastructure(1)
|
|
$
2,212
|
|
41%
|
|
|
$
2,300
|
|
45%
|
|
|
$
2,150
|
|
45%
|
|
|
-4%
|
|
3%
|
Wireless
communications
|
|
1,698
|
|
31
|
|
|
1,288
|
|
25
|
|
|
1,796
|
|
37
|
|
|
32%
|
|
-5%
|
Enterprise storage
|
|
1,266
|
|
23
|
|
|
1,253
|
|
25
|
|
|
645
|
|
13
|
|
|
1%
|
|
96%
|
Industrial & other
|
|
272
|
|
5
|
|
|
225
|
|
5
|
|
|
257
|
|
5
|
|
|
21%
|
|
6%
|
Total
non-GAAP
net revenue
|
|
$
5,448
|
|
100%
|
|
|
$
5,066
|
|
100%
|
|
|
$
4,848
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP data
include the effect of acquisition-related purchase accounting
adjustments relating to licensing revenue.
|
|
|
Key Statistics
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
Q4 18
|
|
Q3 18
|
|
Q4 17
|
Cash
from operations
|
|
$
2,635
|
|
$
2,247
|
|
$
1,959
|
Depreciation
|
|
$
132
|
|
$
129
|
|
$
117
|
Amortization of acquisition-related intangible assets
|
|
$
829
|
|
$
830
|
|
$
1,099
|
Capital
expenditures
|
|
$
106
|
|
$
120
|
|
$
233
|
Days
sales outstanding ("DSO")
|
|
56
|
|
54
|
|
46
|
Inventory days on hand ("DOH")
|
|
59
|
|
66
|
|
73
|
Non-GAAP
DSO
|
|
56
|
|
54
|
|
46
|
Non-GAAP
Inventory DOH
|
|
59
|
|
67
|
|
74
|
Fiscal Year 2018 Financial Results From Continuing
Operations
Net revenue from continuing operations was $20,848 million, an increase of 18 percent from
$17,636 million in the prior year.
Gross margin was $10,733 million, or
51.5 percent of net revenue, versus $8,509
million, or 48.2 percent of net revenue, in the prior year.
Operating income was $5,135 million
compared with $2,383 million in the
prior year. Net income, which includes the impact from discontinued
operations, was $12,610 million, or
$28.44 per diluted share. This
compares with a net income of $1,784
million, or $4.02 per diluted
share, in fiscal year 2017.
Fiscal Year 2018 GAAP
Results
|
|
|
|
|
|
|
(Dollars in millions,
except per share
data)
|
|
2018
|
|
2017
|
|
Change
|
Net
revenue
|
|
$
20,848
|
|
$
17,636
|
|
+18%
|
Gross
margin
|
|
51.5%
|
|
48.2%
|
|
+330bps
|
Operating
expenses
|
|
$
5,598
|
|
$
6,126
|
|
-$
528
|
Net income
|
|
$
12,610
|
|
$
1,784
|
|
+$
10,826
|
Net income
attributable to noncontrolling interest
|
|
$
351
|
|
$
92
|
|
+$
259
|
Net income
attributable to common stock
|
|
$
12,259
|
|
$
1,692
|
|
+$
10,567
|
Earnings per share -
diluted
|
|
$
28.44
|
|
$
4.02
|
|
+$
24.42
|
Non-GAAP net revenue from continuing operations was $20,862
million, an increase of 18 percent from $17,665
million in the prior year. Non-GAAP gross margin
was $13,931 million, or 66.8 percent of net revenue,
versus $11,137 million, or 63.0 percent of net revenue, in the
prior year. Non-GAAP operating income from continuing operations
was $10,424 million. This compares with $8,011
million in the prior year. Non-GAAP net income was $9,391
million, or $20.82 per diluted share. This compares with
non-GAAP net income of $7,255 million, or $16.02 per
diluted share, in fiscal year 2017.
Fiscal Year 2018
Non-GAAP Results
|
|
|
|
|
|
|
(Dollars in millions,
except per share
data)
|
|
2018
|
|
2017
|
|
Change
|
Net
revenue
|
|
$
20,862
|
|
$
17,665
|
|
+18%
|
Gross
margin
|
|
66.8%
|
|
63.0%
|
|
+380bps
|
Operating
expenses
|
|
$
3,507
|
|
$
3,126
|
|
+$
381
|
Net income
|
|
$
9,391
|
|
$
7,255
|
|
+$
2,136
|
Earnings per share -
diluted
|
|
$
20.82
|
|
$
16.02
|
|
+$
4.81
|
Fiscal Year 2019 Business Outlook
Based on current business trends and conditions, the outlook for
continuing operations for fiscal year 2019, ending November 3, 2019, including contributions from
CA, is expected to be as follows:
|
|
|
GAAP
|
|
Reconciling
Items
|
|
Non-GAAP
|
|
Net
revenue
|
|
$
24,500M
|
|
-
|
|
$
24,500M
|
|
Operating
margin
|
|
20%
|
|
$ 7,580M
|
|
51%
|
|
Net interest expense
and other
|
|
$
1,250M
|
|
-
|
|
$
1,250M
|
|
Provision for income
taxes
|
|
13%
|
|
2%
|
|
11%
|
- Non-GAAP operating margin excludes $4,700 million of amortization of
acquisition-related intangible assets, $2,100 million of stock-based compensation
expense, $570 million of
restructuring charges, and $210
million of acquisition-related costs; and
- Non-GAAP tax provision is 2% lower than GAAP due to the tax
effects of the projected reconciling items noted above.
Capital expenditures for the fiscal year are expected to be
approximately $550 million. For the
fiscal year, depreciation is expected to be $600 million and amortization is expected to be
approximately $4,700 million.
The guidance provided above is only an estimate of what the
Company believes is realizable as of the date of this release.
Among other things, this guidance is based on an initial estimate
of purchase accounting adjustments and allocations, all of which
are subject to revision. The guidance excludes the impact of any
mergers, acquisitions, divestiture and stock repurchase activity
that may occur during fiscal year 2019. Actual results will vary
from the guidance and the variations may be material. The Company
undertakes no intent or obligation to publicly update or revise any
of these projections, whether as a result of new information,
future events or otherwise, except as required by law.
Quarterly Dividend
The Company's Board of Directors has approved a quarterly cash
dividend of $2.65 per share.
The dividend is payable on December 28, 2018 to
stockholders of record at the close of business (5:00 p.m.) Eastern Time on December 19, 2018.
Financial Results Conference Call
Broadcom Inc. will host a conference call to review its
financial results for the fourth quarter of fiscal year 2018, ended
November 4, 2018, and to provide
guidance for fiscal year 2019, today at 2:00
p.m. Pacific Time. Those wishing to access the call should
dial (866) 310-8712; International +1 (720) 634-2946. The passcode
is 8281408. A replay of the call will be accessible for one week
after the call. To access the replay dial (855) 859-2056;
International +1 (404) 537-3406; and reference the passcode:
8281408. A webcast of the conference call will also be available in
the "Investors" section of Broadcom's website at
www.broadcom.com.
Basis of Presentation
Broadcom Inc. is the successor to Broadcom Limited for financial
reporting purposes effective as of the close of trading on
April 4, 2018. Information provided
for fiscal periods beginning with the fiscal quarter ended
May 6, 2018, relates to Broadcom Inc.
and for prior fiscal periods relates to Broadcom Limited. Unless
the context otherwise requires, references in this press release to
"Broadcom," "the Company," "we," "our," "us" and similar terms are
to Broadcom Inc. from and after the effective time of the
redomiciliation and, prior to that time, are to our predecessor,
Broadcom Limited.
The Company's financial results include contributions from
Brocade Communication Systems' continuing operations starting in
the first fiscal quarter of 2018. The financial results from
businesses that have been classified as discontinued operations in
the Company's financial statements are not included in the results
presented below, unless otherwise stated.
Due to the Company's 52/53 week reporting cycle, fiscal year
2018 included an extra week in the first quarter, compared to
fiscal year 2017.
Non-GAAP Financial Measures
In addition to GAAP reporting, Broadcom provides
investors with net revenue, net income, operating income, gross
margin, operating expenses, cash flow and other data on a non-GAAP
basis. This non-GAAP information includes the effect, where
applicable, of purchase accounting on revenue, and excludes
amortization of acquisition-related intangible assets, stock-based
compensation expense, restructuring, impairment and disposal
charges, acquisition-related costs, including integration costs,
purchase accounting effect on inventory, litigation settlements,
impairment on investment, debt-related costs, gain (loss) on
extinguishment of debt, gain (loss) on acquisition-related assets,
income (loss) from discontinued operations and non-GAAP tax
reconciling adjustments. Management does not believe that these
items are reflective of the Company's underlying performance.
Internally, these non-GAAP measures are significant measures used
by management for purposes of evaluating the core operating
performance of the Company, establishing internal budgets,
calculating return on investment for development programs and
growth initiatives, comparing performance with internal forecasts
and targeted business models, strategic planning, evaluating and
valuing potential acquisition candidates and how their operations
compare to the Company's operations, and benchmarking performance
externally against the Company's competitors. The exclusion of
these and other similar items from Broadcom's non-GAAP financial
results should not be interpreted as implying that these items are
non-recurring, infrequent or unusual. Free cash flow measures have
limitations as they omit certain components of the overall cash
flow statement and do not represent the residual cash flow
available for discretionary expenditures. Investors should not
consider presentation of free cash flow measures as implying that
stockholders have any right to such cash. Broadcom's free cash flow
may not be calculated in a manner comparable to similarly named
measures used by other companies.
Broadcom believes this non-GAAP financial information
provides additional insight into the Company's on-going
performance. Therefore, Broadcom provides this information to
investors for a more consistent basis of comparison and to help
them evaluate the results of the Company's on-going operations and
enable more meaningful period to period comparisons. These non-GAAP
measures are provided in addition to, and not as a substitute for,
or superior to, measures of financial performance prepared in
accordance with GAAP. A reconciliation between GAAP and non-GAAP
financial data is included in the supplemental financial data
attached to this press release.
About Broadcom Inc.
Broadcom Inc. (NASDAQ: AVGO), a Delaware corporation headquartered in
San Jose, CA, is a global
technology leader that designs, develops and supplies a broad range
of semiconductor and infrastructure software solutions. Broadcom's
category-leading product portfolio serves critical markets
including data center, networking, software, broadband, wireless,
storage and industrial.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements (including
within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended, and Section 27A
of the United States Securities Act of 1933, as amended) concerning
Broadcom. These statements include, but are not limited to,
statements that address our expected future business and financial
performance and other statements identified by words such as
"will", "expect", "believe", "anticipate", "estimate", "should",
"intend", "plan", "potential", "predict" "project", "aim", and
similar words, phrases or expressions. These forward-looking
statements are based on current expectations and beliefs of the
management of Broadcom, as well as assumptions made by, and
information currently available to, such management, current market
trends and market conditions and involve risks and uncertainties,
many of which are outside the Company's and management's control,
and which may cause actual results to differ materially from those
contained in forward-looking statements. Accordingly, you should
not place undue reliance on such statements.
Particular uncertainties that could materially affect future
results include risks associated with: our acquisition of CA,
including (1) potential difficulties in employee retention, (2)
unexpected costs, charges or expenses, and (3) our ability to
successfully integrate CA's business and achieve the anticipated
benefits of the transaction; any loss of our significant customers
and fluctuations in the timing and volume of significant customer
demand; our dependence on contract manufacturing and outsourced
supply chain; our dependency on a limited number of suppliers; any
other acquisitions we may make, including integrating acquired
companies with our existing businesses and our ability to achieve
the benefits, growth prospects and synergies expected by such
acquisitions; our ability to accurately estimate customers' demand
and adjust our manufacturing and supply chain accordingly; our
significant indebtedness, including the additional indebtedness
that we incurred in connection with the CA acquisition and the need
to generate sufficient cash flows to service and repay such debt;
dependence on and risks associated with distributors of our
products; dependence on senior management; quarterly and annual
fluctuations in operating results; global economic conditions and
concerns; the amount and frequency of our stock repurchases;
cyclicality in the semiconductor industry or in our target markets;
our competitive performance and ability to continue achieving
design wins with our customers, as well as the timing of any design
wins; prolonged disruptions of our or our contract manufacturers'
manufacturing facilities or other significant operations; our
ability to improve our manufacturing efficiency and quality; our
dependence on outsourced service providers for certain key business
services and their ability to execute to our requirements; our
ability to maintain or improve gross margin; our ability to protect
our intellectual property and the unpredictability of any
associated litigation expenses; compatibility of our software
products with operating environments, platforms or third-party
products; our ability to enter into satisfactory software license
agreements; sales to our government clients; availability of third
party software used in our products; use of open source code
sources in our products; any expenses or reputational damage
associated with resolving customer product warranty and
indemnification claims; our ability to sell to new types of
customers and to keep pace with technological advances; market
acceptance of the end products into which our products are
designed; our ability to protect against a breach of security
systems; fluctuations in foreign exchange rates; our overall cash
tax costs, legislation that may impact our overall cash tax costs
and our ability to maintain tax concessions in certain
jurisdictions; and other events and trends on a national, regional
and global scale, including those of a political, economic,
business, competitive and regulatory nature.
Our filings with the SEC, which you may obtain for free at the
SEC's website at http://www.sec.gov, discuss some of the important
risk factors that may affect our business, results of operations
and financial condition. Actual results may vary from the estimates
provided. We undertake no intent or obligation to publicly update
or revise any of the estimates and other forward-looking statements
made in this announcement, whether as a result of new information,
future events or otherwise, except as required by law.
Contact:
Beatrice F.
Russotto
Investor Relations
408-433-8000
investor.relations@broadcom.com
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
|
(IN MILLIONS,
EXCEPT PER SHARE DATA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter Ended
|
|
Fiscal Year
Ended
|
|
|
November
4,
|
|
August
5,
|
|
October
29,
|
|
November
4,
|
|
October
29,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
$
5,444
|
|
$
5,063
|
|
$
4,844
|
|
$
20,848
|
|
$
17,636
|
Cost of products
sold:
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
|
1,746
|
|
1,680
|
|
1,798
|
|
7,021
|
|
6,593
|
Purchase accounting
effect on inventory
|
|
-
|
|
-
|
|
2
|
|
70
|
|
4
|
Amortization of
acquisition-related intangible assets
|
|
762
|
|
762
|
|
658
|
|
3,004
|
|
2,511
|
Restructuring
charges
|
|
1
|
|
2
|
|
3
|
|
20
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of
products sold
|
|
2,509
|
|
2,444
|
|
2,461
|
|
10,115
|
|
9,127
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
2,935
|
|
2,619
|
|
2,383
|
|
10,733
|
|
8,509
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
948
|
|
959
|
|
828
|
|
3,768
|
|
3,292
|
Selling, general and
administrative
|
|
237
|
|
234
|
|
194
|
|
1,056
|
|
787
|
Amortization of
acquisition-related intangible assets
|
|
67
|
|
68
|
|
441
|
|
541
|
|
1,764
|
Restructuring,
impairment and disposal charges
|
|
17
|
|
19
|
|
55
|
|
219
|
|
161
|
Litigation
settlements
|
|
14
|
|
-
|
|
110
|
|
14
|
|
122
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
1,283
|
|
1,280
|
|
1,628
|
|
5,598
|
|
6,126
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
1,652
|
|
1,339
|
|
755
|
|
5,135
|
|
2,383
|
Interest
expense
|
|
(148)
|
|
(149)
|
|
(119)
|
|
(628)
|
|
(454)
|
Impairment on
investment
|
|
(106)
|
|
-
|
|
-
|
|
(106)
|
|
-
|
Loss on debt
extinguishment
|
|
-
|
|
-
|
|
(7)
|
|
-
|
|
(166)
|
Other income,
net
|
|
24
|
|
39
|
|
16
|
|
144
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
1,422
|
|
1,229
|
|
645
|
|
4,545
|
|
1,825
|
Provision for
(benefit from) income taxes
|
|
307
|
|
32
|
|
89
|
|
(8,084)
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
1,115
|
|
1,197
|
|
556
|
|
12,629
|
|
1,790
|
Income (loss) from
discontinued operations, net of income taxes
|
|
-
|
|
(1)
|
|
5
|
|
(19)
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,115
|
|
1,196
|
|
561
|
|
12,610
|
|
1,784
|
Net income
attributable to noncontrolling interest (1)
|
|
-
|
|
-
|
|
29
|
|
351
|
|
92
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock
|
|
$
1,115
|
|
$
1,196
|
|
$
532
|
|
$
12,259
|
|
$
1,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share:
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
2.71
|
|
$
2.78
|
|
$
1.29
|
|
$
29.37
|
|
$
4.19
|
Income (loss) per
share from discontinued operations
|
|
-
|
|
-
|
|
0.01
|
|
(0.04)
|
|
(0.01)
|
Net income per
share
|
|
$
2.71
|
|
$
2.78
|
|
$
1.30
|
|
$
29.33
|
|
$
4.18
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share (2):
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
2.64
|
|
$
2.71
|
|
$
1.24
|
|
$
28.48
|
|
$
4.03
|
Income (loss) per
share from discontinued operations
|
|
-
|
|
-
|
|
0.01
|
|
(0.04)
|
|
(0.01)
|
Net income per
share
|
|
$
2.64
|
|
$
2.71
|
|
$
1.25
|
|
$
28.44
|
|
$
4.02
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
412
|
|
430
|
|
408
|
|
418
|
|
405
|
Diluted
|
|
423
|
|
441
|
|
424
|
|
431
|
|
421
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense included in continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
|
$
23
|
|
$
22
|
|
$
17
|
|
$
86
|
|
$
64
|
Research and
development
|
|
225
|
|
222
|
|
171
|
|
855
|
|
636
|
Selling, general and
administrative
|
|
69
|
|
71
|
|
64
|
|
286
|
|
220
|
|
|
|
|
|
|
|
|
|
|
|
Total stock-based
compensation expense
|
|
$
317
|
|
$
315
|
|
$
252
|
|
$
1,227
|
|
$
920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In connection
with the redomiciliation to the United States on April 4, 2018, or
the Redomiciliation, all outstanding exchangeable limited
partnership units, or LP Units, in Broadcom Cayman L.P. were
exchanged for common stock of Broadcom on a one-for-one basis and
the noncontrolling interest, or NCI, was eliminated. Net income
attributable to NCI prior to the Redomiciliation represents
approximately 5% of net income attributable to LP Units.
|
(2) For the fiscal
year ended November 4, 2018 and for each fiscal year 2017 period
presented, diluted income per share excluded the potentially
dilutive effect of the exchange of LP Units as their effect was
antidilutive. There were no LP Units outstanding during the fiscal
quarters ended November 4, 2018 and August 5, 2018 due to the
Redomiciliation.
|
BROADCOM
INC.
|
FINANCIAL
RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED
|
(IN MILLIONS,
EXCEPT DAYS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter Ended
|
|
Fiscal Year
Ended
|
|
|
November
4,
|
|
August
5,
|
|
October
29,
|
|
November
4,
|
|
October
29,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue on GAAP
basis
|
|
$
5,444
|
|
$
5,063
|
|
$
4,844
|
|
$
20,848
|
|
$
17,636
|
Acquisition-related
purchase accounting revenue adjustment (1)
|
|
4
|
|
3
|
|
4
|
|
14
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue on
non-GAAP basis
|
|
$
5,448
|
|
$
5,066
|
|
$
4,848
|
|
$
20,862
|
|
$
17,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin on GAAP
basis
|
|
$
2,935
|
|
$
2,619
|
|
$
2,383
|
|
$
10,733
|
|
$
8,509
|
Acquisition-related
purchase accounting revenue adjustment (1)
|
|
4
|
|
3
|
|
4
|
|
14
|
|
29
|
Purchase accounting
effect on inventory
|
|
-
|
|
-
|
|
2
|
|
70
|
|
4
|
Amortization of
acquisition-related intangible assets
|
|
762
|
|
762
|
|
658
|
|
3,004
|
|
2,511
|
Stock-based
compensation expense
|
|
23
|
|
22
|
|
17
|
|
86
|
|
64
|
Restructuring
charges
|
|
1
|
|
2
|
|
3
|
|
20
|
|
19
|
Acquisition-related
costs
|
|
-
|
|
2
|
|
1
|
|
4
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin on
non-GAAP basis
|
|
$
3,725
|
|
$
3,410
|
|
$
3,068
|
|
$
13,931
|
|
$
11,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
|
$
948
|
|
$
959
|
|
$
828
|
|
$
3,768
|
|
$
3,292
|
Stock-based
compensation expense
|
|
225
|
|
222
|
|
171
|
|
855
|
|
636
|
Acquisition-related
costs
|
|
1
|
|
-
|
|
-
|
|
4
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development on non-GAAP basis
|
|
$
722
|
|
$
737
|
|
$
657
|
|
$
2,909
|
|
$
2,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense on GAAP basis
|
|
$
237
|
|
$
234
|
|
$
194
|
|
$
1,056
|
|
$
787
|
Stock-based
compensation expense
|
|
69
|
|
71
|
|
64
|
|
286
|
|
220
|
Acquisition-related
costs
|
|
27
|
|
26
|
|
12
|
|
172
|
|
91
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense on non-GAAP basis
|
|
$
141
|
|
$
137
|
|
$
118
|
|
$
598
|
|
$
476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses on GAAP basis
|
|
$
1,283
|
|
$
1,280
|
|
$
1,628
|
|
$
5,598
|
|
$
6,126
|
Amortization of
acquisition-related intangible assets
|
|
67
|
|
68
|
|
441
|
|
541
|
|
1,764
|
Stock-based
compensation expense
|
|
294
|
|
293
|
|
235
|
|
1,141
|
|
856
|
Restructuring,
impairment and disposal charges
|
|
17
|
|
19
|
|
55
|
|
219
|
|
161
|
Litigation
settlements
|
|
14
|
|
-
|
|
110
|
|
14
|
|
122
|
Acquisition-related
costs
|
|
28
|
|
26
|
|
12
|
|
176
|
|
97
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses on non-GAAP basis
|
|
$
863
|
|
$
874
|
|
$
775
|
|
$
3,507
|
|
$
3,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income on
GAAP basis
|
|
$
1,652
|
|
$
1,339
|
|
$
755
|
|
$
5,135
|
|
$
2,383
|
Acquisition-related
purchase accounting revenue adjustment (1)
|
|
4
|
|
3
|
|
4
|
|
14
|
|
29
|
Purchase accounting
effect on inventory
|
|
-
|
|
-
|
|
2
|
|
70
|
|
4
|
Amortization of
acquisition-related intangible assets
|
|
829
|
|
830
|
|
1,099
|
|
3,545
|
|
4,275
|
Stock-based
compensation expense
|
|
317
|
|
315
|
|
252
|
|
1,227
|
|
920
|
Restructuring,
impairment and disposal charges
|
|
18
|
|
21
|
|
58
|
|
239
|
|
180
|
Litigation
settlements
|
|
14
|
|
-
|
|
110
|
|
14
|
|
122
|
Acquisition-related
costs
|
|
28
|
|
28
|
|
13
|
|
180
|
|
98
|
|
|
|
|
|
|
|
|
|
|
|
Operating income on
non-GAAP basis
|
|
$
2,862
|
|
$
2,536
|
|
$
2,293
|
|
$
10,424
|
|
$
8,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on
GAAP basis
|
|
$
(148)
|
|
$
(149)
|
|
$
(119)
|
|
$
(628)
|
|
$
(454)
|
Debt-related
costs
|
|
-
|
|
-
|
|
-
|
|
32
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on
non-GAAP basis
|
|
$
(148)
|
|
$
(149)
|
|
$
(119)
|
|
$
(596)
|
|
$
(453)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net on
GAAP basis
|
|
$
24
|
|
$
39
|
|
$
16
|
|
$
144
|
|
$
62
|
(Gains) losses on
acquisition-related assets
|
|
-
|
|
1
|
|
-
|
|
(3)
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net on
non-GAAP basis
|
|
$
24
|
|
$
40
|
|
$
16
|
|
$
141
|
|
$
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes on GAAP basis
|
|
$
1,422
|
|
$
1,229
|
|
$
645
|
|
$
4,545
|
|
$
1,825
|
Acquisition-related
purchase accounting revenue adjustment (1)
|
|
4
|
|
3
|
|
4
|
|
14
|
|
29
|
Purchase accounting
effect on inventory
|
|
-
|
|
-
|
|
2
|
|
70
|
|
4
|
Amortization of
acquisition-related intangible assets
|
|
829
|
|
830
|
|
1,099
|
|
3,545
|
|
4,275
|
Stock-based
compensation expense
|
|
317
|
|
315
|
|
252
|
|
1,227
|
|
920
|
Restructuring,
impairment and disposal charges
|
|
18
|
|
21
|
|
58
|
|
239
|
|
180
|
Litigation
settlements
|
|
14
|
|
-
|
|
110
|
|
14
|
|
122
|
Acquisition-related
costs
|
|
28
|
|
28
|
|
13
|
|
180
|
|
98
|
Impairment on
investment
|
|
106
|
|
-
|
|
-
|
|
106
|
|
-
|
Debt-related
costs
|
|
-
|
|
-
|
|
-
|
|
32
|
|
1
|
Loss on debt
extinguishment
|
|
-
|
|
-
|
|
7
|
|
-
|
|
166
|
(Gains) losses on
acquisition-related assets
|
|
-
|
|
1
|
|
-
|
|
(3)
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes on non-GAAP basis
|
|
$
2,738
|
|
$
2,427
|
|
$
2,190
|
|
$
9,969
|
|
$
7,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes on GAAP basis
|
|
$
307
|
|
$
32
|
|
$
89
|
|
$
(8,084)
|
|
$
35
|
Non-GAAP tax
reconciling adjustments
|
|
(115)
|
|
138
|
|
10
|
|
8,662
|
|
307
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes on non-GAAP basis
|
|
$
192
|
|
$
170
|
|
$
99
|
|
$
578
|
|
$
342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income on GAAP
basis
|
|
$
1,115
|
|
$
1,196
|
|
$
561
|
|
$
12,610
|
|
$
1,784
|
Acquisition-related
purchase accounting revenue adjustment (1)
|
|
4
|
|
3
|
|
4
|
|
14
|
|
29
|
Purchase accounting
effect on inventory
|
|
-
|
|
-
|
|
2
|
|
70
|
|
4
|
Amortization of
acquisition-related intangible assets
|
|
829
|
|
830
|
|
1,099
|
|
3,545
|
|
4,275
|
Stock-based
compensation expense
|
|
317
|
|
315
|
|
252
|
|
1,227
|
|
920
|
Restructuring,
impairment and disposal charges
|
|
18
|
|
21
|
|
58
|
|
239
|
|
180
|
Litigation
settlements
|
|
14
|
|
-
|
|
110
|
|
14
|
|
122
|
Acquisition-related
costs
|
|
28
|
|
28
|
|
13
|
|
180
|
|
98
|
Impairment on
investment
|
|
106
|
|
-
|
|
-
|
|
106
|
|
-
|
Debt-related
costs
|
|
-
|
|
-
|
|
-
|
|
32
|
|
1
|
Loss on debt
extinguishment
|
|
-
|
|
-
|
|
7
|
|
-
|
|
166
|
(Gains) losses on
acquisition-related assets
|
|
-
|
|
1
|
|
-
|
|
(3)
|
|
(23)
|
Non-GAAP tax
reconciling adjustments
|
|
115
|
|
(138)
|
|
(10)
|
|
(8,662)
|
|
(307)
|
Discontinued
operations, net of income taxes
|
|
-
|
|
1
|
|
(5)
|
|
19
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
Net income on
non-GAAP basis
|
|
$
2,546
|
|
$
2,257
|
|
$
2,091
|
|
$
9,391
|
|
$
7,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation - diluted on GAAP basis
|
|
423
|
|
441
|
|
424
|
|
431
|
|
421
|
Non-GAAP adjustment
(2)
|
|
12
|
|
12
|
|
32
|
|
20
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation - diluted on non-GAAP basis
|
|
435
|
|
453
|
|
456
|
|
451
|
|
453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory days on
hand on GAAP basis
|
|
59
|
|
66
|
|
73
|
|
|
|
|
Non-GAAP adjustment
(3)
|
|
-
|
|
1
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory days on
hand on non-GAAP basis
|
|
59
|
|
67
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income on
non-GAAP basis
|
|
$
2,546
|
|
$
2,257
|
|
$
2,091
|
|
|
|
|
Interest expense on
non-GAAP basis
|
|
148
|
|
149
|
|
119
|
|
|
|
|
Provision for income
taxes on non-GAAP basis
|
|
192
|
|
170
|
|
99
|
|
|
|
|
Depreciation
|
|
132
|
|
129
|
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
3,018
|
|
$
2,705
|
|
$
2,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
2,635
|
|
$
2,247
|
|
$
1,959
|
|
$
8,880
|
|
$
6,551
|
Purchases of
property, plant and equipment
|
|
(106)
|
|
(120)
|
|
(233)
|
|
(635)
|
|
(1,069)
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
$
2,529
|
|
$
2,127
|
|
$
1,726
|
|
$
8,245
|
|
$
5,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts represent
licensing revenue not included in GAAP net revenue as a result of
the effect of purchase accounting for acquisitions.
|
(2) Non-GAAP
adjustment for number of shares used in the diluted per share
calculations excludes the impact of stock-based compensation
expense expected to be incurred in future periods and not yet
recognized in the financial statements, which would otherwise be
assumed to be used to repurchase shares under the GAAP treasury
stock method. Non-GAAP adjustment also includes the impact of LP
Units that are anti-dilutive on a GAAP basis for the fiscal year
ended November 4, 2018 and for each fiscal year 2017 period
presented.
|
(3) Non-GAAP
adjustment for inventory days on hand represents the impact of
purchase accounting on inventory, stock-based compensation expense,
and acquisition-related costs.
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November
4,
|
|
October
29,
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
4,292
|
|
$
11,204
|
|
Trade accounts
receivable, net
|
|
3,325
|
|
2,448
|
|
Inventory
|
|
1,124
|
|
1,447
|
|
Other current
assets
|
|
366
|
|
724
|
|
|
|
|
|
|
|
Total current
assets
|
|
9,107
|
|
15,823
|
|
|
|
|
|
|
|
Long-term
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,635
|
|
2,599
|
|
Goodwill
|
|
26,913
|
|
24,706
|
|
Intangible assets,
net
|
|
10,762
|
|
10,832
|
|
Other long-term
assets
|
|
707
|
|
458
|
|
|
|
|
|
|
|
Total
assets
|
|
$
50,124
|
|
$
54,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
811
|
|
$
1,105
|
|
Employee compensation
and benefits
|
|
715
|
|
626
|
|
Current portion of
long-term debt
|
|
-
|
|
117
|
|
Other current
liabilities
|
|
812
|
|
681
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
2,338
|
|
2,529
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
Long-term
debt
|
|
17,493
|
|
17,431
|
|
Other long-term
liabilities
|
|
3,636
|
|
11,272
|
|
|
|
|
|
|
|
Total
liabilities
|
|
23,467
|
|
31,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Broadcom Inc.
stockholders' equity:
|
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
23,285
|
|
20,505
|
|
Retained earnings
(accumulated deficit)
|
|
3,487
|
|
(129)
|
|
Accumulated other
comprehensive loss
|
|
(115)
|
|
(91)
|
|
|
|
|
|
|
|
Total Broadcom Inc.
stockholders' equity
|
|
26,657
|
|
20,285
|
|
Noncontrolling
interest
|
|
-
|
|
2,901
|
|
Total
equity
|
|
26,657
|
|
23,186
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$
50,124
|
|
$
54,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter Ended
|
|
Fiscal Year
Ended
|
|
|
November
4,
|
|
August
5,
|
|
October
29,
|
|
November
4,
|
|
October
29,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
1,115
|
|
$
1,196
|
|
$
561
|
|
$
12,610
|
|
$
1,784
|
Adjustments to
reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
836
|
|
836
|
|
1,102
|
|
3,566
|
|
4,286
|
Depreciation
|
|
132
|
|
129
|
|
117
|
|
515
|
|
451
|
Stock-based
compensation
|
|
317
|
|
315
|
|
252
|
|
1,227
|
|
921
|
Deferred taxes and
other non-cash taxes
|
|
242
|
|
22
|
|
(74)
|
|
(8,270)
|
|
(173)
|
Impairment on
investment
|
|
106
|
|
-
|
|
-
|
|
106
|
|
-
|
Non-cash portion of
debt extinguishment loss
|
|
-
|
|
-
|
|
7
|
|
-
|
|
166
|
Non-cash
restructuring, impairment and
disposal charges
|
|
8
|
|
3
|
|
17
|
|
21
|
|
71
|
Amortization of debt
issuance costs and accretion of debt discount
|
|
6
|
|
6
|
|
5
|
|
24
|
|
24
|
Other
|
|
15
|
|
5
|
|
9
|
|
37
|
|
7
|
Changes in assets and
liabilities, net of
acquisitions and disposals:
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
(312)
|
|
(262)
|
|
(31)
|
|
(652)
|
|
(267)
|
Inventory
|
|
92
|
|
19
|
|
(16)
|
|
417
|
|
(39)
|
Accounts
payable
|
|
28
|
|
(41)
|
|
(63)
|
|
(325)
|
|
(97)
|
Employee
compensation and benefits
|
|
93
|
|
205
|
|
80
|
|
6
|
|
109
|
Contributions
to defined benefit pension plans
|
|
-
|
|
(1)
|
|
(345)
|
|
(130)
|
|
(361)
|
Other current
assets and current liabilities
|
|
163
|
|
(148)
|
|
80
|
|
369
|
|
(490)
|
Other
long-term assets and long-term
liabilities
|
|
(206)
|
|
(37)
|
|
258
|
|
(641)
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
2,635
|
|
2,247
|
|
1,959
|
|
8,880
|
|
6,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
(7)
|
|
(7)
|
|
-
|
|
(4,800)
|
|
(40)
|
Business sale
proceeds (repayments)
|
|
(9)
|
|
-
|
|
-
|
|
773
|
|
10
|
Purchases of
property, plant and equipment
|
|
(106)
|
|
(120)
|
|
(233)
|
|
(635)
|
|
(1,069)
|
Proceeds from
disposals of property, plant and
equipment
|
|
1
|
|
-
|
|
440
|
|
239
|
|
441
|
Purchases of
investments
|
|
-
|
|
-
|
|
(7)
|
|
(249)
|
|
(207)
|
Proceeds from sale
and maturity of investments
|
|
-
|
|
-
|
|
200
|
|
54
|
|
200
|
Other
|
|
3
|
|
(47)
|
|
(4)
|
|
(56)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) investing
activities
|
|
(118)
|
|
(174)
|
|
396
|
|
(4,674)
|
|
(674)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of long-term debt
|
|
-
|
|
-
|
|
3,980
|
|
-
|
|
17,426
|
Repayment of
debt
|
|
(117)
|
|
-
|
|
-
|
|
(973)
|
|
(13,668)
|
Payment of debt
issuance costs
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
(24)
|
Dividend and
distribution payments
|
|
(723)
|
|
(754)
|
|
(439)
|
|
(2,998)
|
|
(1,745)
|
Repurchases of common
stock
|
|
(1,533)
|
|
(5,378)
|
|
-
|
|
(7,258)
|
|
-
|
Issuance of common
stock, net of shares
withheld for employee taxes
|
|
38
|
|
6
|
|
66
|
|
156
|
|
257
|
Payment of capital
lease obligations
|
|
-
|
|
-
|
|
(6)
|
|
(21)
|
|
(16)
|
Other
|
|
(26)
|
|
2
|
|
-
|
|
(24)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) financing
activities
|
|
(2,361)
|
|
(6,124)
|
|
3,600
|
|
(11,118)
|
|
2,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
156
|
|
(4,051)
|
|
5,955
|
|
(6,912)
|
|
8,107
|
Cash and cash
equivalents at the beginning of
period
|
|
4,136
|
|
8,187
|
|
5,249
|
|
11,204
|
|
3,097
|
Cash and cash
equivalents at end of period
|
|
$
4,292
|
|
$
4,136
|
|
$
11,204
|
|
$
4,292
|
|
$
11,204
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow
information:
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
2
|
|
$
312
|
|
$
1
|
|
$
547
|
|
$
310
|
Cash paid for income
taxes
|
|
$
189
|
|
$
127
|
|
$
96
|
|
$
512
|
|
$
349
|
View original
content:http://www.prnewswire.com/news-releases/broadcom-inc-announces-fourth-quarter-and-fiscal-year-2018-financial-results-and-quarterly-dividend-300761627.html
SOURCE Broadcom Inc.