Financial News

Broadcom Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results and Quarterly Dividend
  • Revenue of $9,295 million for the fourth quarter, up 4 percent from the prior year period
  • Cash from operations of $4,828 million for the fourth quarter, less capital expenditures of $105 million, resulted in $4,723 million of free cash flow, or 51 percent of revenue
  • Quarterly common stock dividend increased by 14 percent from the prior quarter to $5.25
  • Adjusted EBITDA of $6,048 million for the fourth quarter, or 65 percent of revenue
  • Non-GAAP diluted EPS of $11.06 for the fourth quarter; GAAP diluted EPS of $8.25 for the fourth quarter
  • Fiscal 2024 annual revenue guidance of approximately $50.0 billion including contribution from VMware, an increase of 40 percent from the prior year period
  • Fiscal 2024 annual Adjusted EBITDA guidance of approximately 60 percent of projected revenue (1)

PALO ALTO, Calif., Dec. 7, 2023 /PRNewswire/ -- Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its fourth quarter and fiscal year ended October 29, 2023, provided guidance for its fiscal year 2024 and announced its quarterly dividend.

"Broadcom's fiscal year 2023 revenue grew 8% year-over-year to a record $35.8 billion, driven by investments in accelerators and network connectivity for AI by hyperscalers," said Hock Tan, President and CEO of Broadcom Inc. "The acquisition of VMware is transformational. In fiscal year 2024 we expect semiconductor to sustain its mid to high single digit revenue growth rate, with the contribution of VMware driving consolidated revenue to $50 billion, and adjusted EBITDA to $30 billion."

"In fiscal year 2023 we achieved record adjusted EBITDA margin of 65%, generating $17.6 billion in free cash flow or 49% of revenue, demonstrating our stable and diversified business model," said Kirsten Spears, CFO of Broadcom Inc. "With this transformational acquisition and expected increase in cash flows, we are increasing our quarterly common stock dividend by 14% to $5.25 per share for fiscal year 2024. The target fiscal 2024 annual common stock dividend of $21.00 per share is a record, and the thirteenth consecutive increase in annual dividends since we initiated dividends in fiscal 2011."

Fourth Quarter Fiscal Year 2023 Financial Highlights    

   

GAAP

 

Non-GAAP

(Dollars in millions, except per share data)

Q4 23

 

Q4 22

 

Change 

   

Q4 23

 

Q4 22

 

Change 

Net revenue

 

$

9,295

 

$

8,930

 

+

4

%

$

9,295

 

$

8,930

 

+

4

%

Net income

 

$

3,524

 

$

3,359

 

+$

165

   

$

4,810

 

$

4,544

 

+$

266

 

Earnings per common share - diluted

 

$

8.25

 

$

7.83

 

+$

0.42

   

$

11.06

 

$

10.45

 

+$

0.61

 
 

(Dollars in millions)

     

Q4 23

 

Q4 22

 

Change  

Cash flow from operations

     

$

4,828

 

$

4,583

 

+$

245

Adjusted EBITDA

     

$

6,048

 

$

5,722

 

+$

326

Free cash flow

     

$

4,723

 

$

4,461

 

+$

262

 

Net revenue by segment

                                 

(Dollars in millions)

     

Q4 23

 

Q4 22

 

Change   

Semiconductor solutions

     

$

7,326

 

79

%

$

7,092

 

79

%

+3

%

Infrastructure software

       

1,969

 

21

     

1,838

 

21

   

+7

%

Total net revenue

     

$

9,295

 

100

%

 

$

8,930

 

100

%

     
 

The Company's cash and cash equivalents at the end of the fiscal quarter were $14,189 million, compared to $12,055 million at the end of the prior quarter.

During the fourth fiscal quarter, the Company generated $4,828 million in cash from operations and spent $105 million on capital expenditures.

On September 29, 2023, the Company paid a cash dividend of $4.60 per share, totaling $1,904 million.

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.

Fiscal Year 2023 Financial Highlights  

   

GAAP

 

Non-GAAP

(Dollars in millions, except per share data)

 

FY 23

 

FY 22

 

Change

 

FY 23

 

FY 22

 

Change 

Net revenue

 

$

35,819

 

$

33,203

 

+

8

%

 

$

35,819

 

$

33,203

 

+

8

%

Net income

 

$

14,082

 

$

11,495

 

+$

2,587

   

$

18,378

 

$

16,526

 

+$

1,852

 

Earnings per common share - diluted

 

$

32.98

 

$

26.53

 

+$

6.45

   

$

42.25

 

$

37.64

 

+$

4.61

 
 

(Dollars in millions)

       

FY 23

   

FY 22

 

 Change  

Cash flow from operations

     

$

18,085

 

$

16,736

 

+$

1,349

Adjusted EBITDA

     

$

23,213

 

$

21,029

 

+$

2,184

Free cash flow

     

$

17,633

 

$

16,312

 

+$

1,321

 

Net revenue by segment

                                 

(Dollars in millions)

     

FY 23

 

FY 22

 

Change   

Semiconductor solutions

     

$

28,182

 

79

%

$

25,818

 

78

%

+9

%

Infrastructure software

       

7,637

 

21

     

7,385

 

22

   

+3

%

Total net revenue

     

$

35,819

 

100

%

 

$

33,203

 

100

%

     
 

Fiscal Year 2024 Business Outlook

Based on current business trends and conditions, the outlook for continuing operations for fiscal year 2024, ending November 3, 2024, including contributions from VMware, is expected to be as follows: 

  • Fiscal year 2024 revenue guidance of approximately $50.0 billion; and
  • Fiscal year 2024 adjusted EBITDA guidance of approximately 60 percent of projected revenue.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. 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 Dividends

The Company's Board of Directors has approved a quarterly cash dividend of $5.25 per share. The dividend is payable on December 29, 2023 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on December 20, 2023.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the fourth quarter fiscal year 2023 and to discuss the business outlook, today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

To Listen via Telephone: Preregistration is required by the conference call operator. Please preregister at https://register.vevent.com/register/BIacd438722e7946a58b1c10d35c792d79. Upon registering, you will be emailed a link to the dial-in number and unique PIN.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom's website at https://investors.broadcom.com/.

Non-GAAP Financial Measures

The non-GAAP measures should not be considered 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. Broadcom believes 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. 

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other 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.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com

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, our plans and expectations with regard to our share repurchases, 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 Broadcom's management, 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 control of Broadcom and its management, that 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: global economic conditions and concerns; government regulations and administrative proceedings, trade restrictions and trade tensions; global political and economic conditions; our acquisition of VMware, Inc., including employee retention, unexpected costs, charges or expenses, and our ability to successfully integrate VMware's business and realize the expected benefits; any acquisitions we may make, including our acquisition of VMware, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; dependence on and risks associated with distributors and resellers of our products; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; dependence on senior management and our ability to attract and retain qualified personnel; our ability to protect against cyber security threats and a breach of security systems; cyclicality in the semiconductor industry or in our target markets; 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; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; our 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, warehouses or other significant operations; our ability to improve our manufacturing efficiency and quality; involvement in legal proceedings; demand for our data center virtualization products; customer and market acceptance of our products and services; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; availability of third-party software used in our products; use of open source software in our products; ability of our software products to manage and secure IT infrastructures and environments; sales to government customers; our ability to manage products and services lifecycles; quarterly and annual fluctuations in operating results; our competitive performance; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our ability to sell to new types of customers and to keep pace with technological advances; our compliance with privacy and data security laws; the amount and frequency of our share repurchase programs; fluctuations in foreign exchange rates; our provision for income taxes and overall cash tax costs, legislation that may impact our overall cash tax costs, our ability to maintain tax concessions in certain jurisdictions and potential tax liabilities as a result of acquiring VMware; and other events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase programs may be suspended or terminated at any time.

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:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com

(AVGO-Q)

 

(1) The Company is not readily able to provide a reconciliation of the projected non-GAAP financial information presented to the relevant projected GAAP measure without unreasonable effort.

 

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(IN MILLIONS, EXCEPT PER SHARE DATA)

                               
                               
   

Fiscal Quarter Ended

 

Fiscal Year Ended

   

October 29,

 

July 30,

 

October 30,

 

October 29,

 

October 30,

   

2023

 

2023

 

2022

 

2023

 

2022

                               

Net revenue

 

$

9,295

 

$

8,876

 

$

8,930

 

$

35,819

 

$

33,203

Cost of revenue:

                             

Cost of revenue

   

2,449

   

2,272

   

2,298

   

9,272

   

8,256

Amortization of acquisition-related intangible assets

   

438

   

439

   

705

   

1,853

   

2,847

Restructuring charges

   

1

   

1

   

1

   

4

   

5

Total cost of revenue

   

2,888

   

2,712

   

3,004

   

11,129

   

11,108

Gross margin

   

6,407

   

6,164

   

5,926

   

24,690

   

22,095

Research and development

   

1,388

   

1,358

   

1,197

   

5,253

   

4,919

Selling, general and administrative

   

418

   

388

   

370

   

1,592

   

1,382

Amortization of acquisition-related intangible assets

   

348

   

350

   

358

   

1,394

   

1,512

Restructuring and other charges

   

13

   

212

   

15

   

244

   

57

Total operating expenses

   

2,167

   

2,308

   

1,940

   

8,483

   

7,870

Operating income

   

4,240

   

3,856

   

3,986

   

16,207

   

14,225

Interest expense

   

(405)

   

(406)

   

(406)

   

(1,622)

   

(1,737)

Other income (expense), net

   

132

   

124

   

40

   

512

   

(54)

Income before income taxes

   

3,967

   

3,574

   

3,620

   

15,097

   

12,434

Provision for income taxes

   

443

   

271

   

261

   

1,015

   

939

Net income

   

3,524

   

3,303

   

3,359

   

14,082

   

11,495

Dividends on preferred stock

   

-

   

-

   

(48)

   

-

   

(272)

Net income attributable to common stock

 

$

3,524

 

$

3,303

 

$

3,311

 

$

14,082

 

$

11,223

                               

Net income per share attributable to common stock:

                             

Basic

 

$

8.53

 

$

8.00

 

$

8.06

 

$

33.93

 

$

27.44

Diluted (1)

 

$

8.25

 

$

7.74

 

$

7.83

 

$

32.98

 

$

26.53

                               

Weighted-average shares used in per share calculations:

                           

Basic

   

413

   

413

   

411

   

415

   

409

Diluted (1)

   

427

   

427

   

429

   

427

   

423

                               

Stock-based compensation expense:

                             

Cost of revenue

 

$

62

 

$

61

 

$

38

 

$

210

 

$

147

Research and development

   

448

   

444

   

260

   

1,513

   

1,048

Selling, general and administrative

   

128

   

124

   

89

   

448

   

338

Total stock-based compensation expense

 

$

638

 

$

629

 

$

387

 

$

2,171

 

$

1,533

 

(1) Excludes the potentially dilutive effect of Mandatory Convertible Preferred Stock as the impact was
antidilutive for the fiscal year ended October 30, 2022. All outstanding shares of Mandatory Convertible

Preferred Stock were converted into our common stock during the fiscal quarter ended October 30, 2022.

           
           

 

BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

                               
                               
   

Fiscal Quarter Ended

 

Fiscal Year Ended

   

October 29,

 

July 30,

 

October 30,

 

October 29,

 

October 30,

   

2023

 

2023

 

2022

 

2023

 

2022

                               

Gross margin on GAAP basis

 

$

6,407

 

$

6,164

 

$

5,926

 

$

24,690

 

$

22,095

Amortization of acquisition-related intangible assets

   

438

   

439

   

705

   

1,853

   

2,847

Stock-based compensation expense

   

62

   

61

   

38

   

210

   

147

Restructuring charges

   

1

   

1

   

1

   

4

   

5

Acquisition-related costs

   

-

   

-

   

3

   

-

   

13

Gross margin on non-GAAP basis

 

$

6,908

 

$

6,665

 

$

6,673

 

$

26,757

 

$

25,107

                               

Research and development on GAAP basis

 

$

1,388

 

$

1,358

 

$

1,197

 

$

5,253

 

$

4,919

Stock-based compensation expense

   

448

   

444

   

260

   

1,513

   

1,048

Acquisition-related costs

   

-

   

1

   

-

   

-

   

-

Research and development on non-GAAP basis

 

$

940

 

$

913

 

$

937

 

$

3,740

 

$

3,871

                               

Selling, general and administrative expense on GAAP basis

 

$

418

 

$

388

 

$

370

 

$

1,592

 

$

1,382

Stock-based compensation expense

   

128

   

124

   

89

   

448

   

338

Acquisition-related costs

   

69

   

48

   

45

   

252

   

102

Selling, general and administrative expense on non-GAAP basis

 

$

221

 

$

216

 

$

236

 

$

892

 

$

942

                               

Total operating expenses on GAAP basis

 

$

2,167

 

$

2,308

 

$

1,940

 

$

8,483

 

$

7,870

Amortization of acquisition-related intangible assets

   

348

   

350

   

358

   

1,394

   

1,512

Stock-based compensation expense

   

576

   

568

   

349

   

1,961

   

1,386

Restructuring and other charges

   

13

   

212

   

15

   

244

   

57

Acquisition-related costs

   

69

   

49

   

45

   

252

   

102

Total operating expenses on non-GAAP basis

 

$

1,161

 

$

1,129

 

$

1,173

 

$

4,632

 

$

4,813

                               

Operating income on GAAP basis

 

$

4,240

 

$

3,856

 

$

3,986

 

$

16,207

 

$

14,225

Amortization of acquisition-related intangible assets

   

786

   

789

   

1,063

   

3,247

   

4,359

Stock-based compensation expense

   

638

   

629

   

387

   

2,171

   

1,533

Restructuring and other charges

   

14

   

213

   

16

   

248

   

62

Acquisition-related costs

   

69

   

49

   

48

   

252

   

115

Operating income on non-GAAP basis

 

$

5,747

 

$

5,536

 

$

5,500

 

$

22,125

 

$

20,294

                               

Interest expense on GAAP basis

 

$

(405)

 

$

(406)

 

$

(406)

 

$

(1,622)

 

$

(1,737)

Loss on debt extinguishment

   

-

   

-

   

-

   

-

   

112

Interest expense on non-GAAP basis

 

$

(405)

 

$

(406)

 

$

(406)

 

$

(1,622)

 

$

(1,625)

                               

Other income (expense), net on GAAP basis

 

$

132

 

$

124

 

$

40

 

$

512

 

$

(54)

(Gains) losses on investments

   

24

   

(2)

   

29

   

(11)

   

169

Other

   

(1)

   

-

   

-

   

(1)

   

(5)

Other income, net on non-GAAP basis

 

$

155

 

$

122

 

$

69

 

$

500

 

$

110

                               

Provision for income taxes on GAAP basis

 

$

443

 

$

271

 

$

261

 

$

1,015

 

$

939

Non-GAAP tax reconciling adjustments

   

244

   

385

   

358

   

1,610

   

1,314

Provision for income taxes on non-GAAP basis

 

$

687

 

$

656

 

$

619

 

$

2,625

 

$

2,253

                               

Net income on GAAP basis

 

$

3,524

 

$

3,303

 

$

3,359

 

$

14,082

 

$

11,495

Amortization of acquisition-related intangible assets

   

786

   

789

   

1,063

   

3,247

   

4,359

Stock-based compensation expense

   

638

   

629

   

387

   

2,171

   

1,533

Restructuring and other charges

   

14

   

213

   

16

   

248

   

62

Acquisition-related costs

   

69

   

49

   

48

   

252

   

115

Loss on debt extinguishment

   

-

   

-

   

-

   

-

   

112

(Gains) losses on investments

   

24

   

(2)

   

29

   

(11)

   

169

Other

   

(1)

   

-

   

-

   

(1)

   

(5)

Non-GAAP tax reconciling adjustments

   

(244)

   

(385)

   

(358)

   

(1,610)

   

(1,314)

Net income on non-GAAP basis

 

$

4,810

 

$

4,596

 

$

4,544

 

$

18,378

 

$

16,526

                               
                               

Weighted-average shares used in per share calculations - diluted on GAAP basis

   

427

   

427

   

429

   

427

   

423

Non-GAAP adjustment (1)

   

8

   

9

   

6

   

8

   

16

Weighted-average shares used in per share calculations - diluted on non-GAAP basis

   

435

   

436

   

435

   

435

   

439

                               
                               

Net income on non-GAAP basis

 

$

4,810

 

$

4,596

 

$

4,544

 

$

18,378

 

$

16,526

Interest expense

   

405

   

406

   

406

   

1,622

   

1,625

Provision for income taxes on non-GAAP basis

   

687

   

656

   

619

   

2,625

   

2,253

Depreciation

   

124

   

122

   

129

   

502

   

529

Amortization of purchased intangibles and right-of-use assets

   

22

   

21

   

24

   

86

   

96

Adjusted EBITDA

 

$

6,048

 

$

5,801

 

$

5,722

 

$

23,213

 

$

21,029

                               

Net cash provided by operating activities

 

$

4,828

 

$

4,719

 

$

4,583

 

$

18,085

 

$

16,736

Purchases of property, plant and equipment

   

(105)

   

(122)

   

(122)

   

(452)

   

(424)

Free cash flow

 

$

4,723

 

$

4,597

 

$

4,461

 

$

17,633

 

$

16,312

                               
                               
   

 Fiscal Year
  Ending 

                       
   

November 3,

                       

Expected average diluted share count (2)

 

2024

                       
                               

Weighted-average shares used in per share calculation - diluted on GAAP basis

 

480

                       

Non-GAAP adjustment (1)

 

14

                       

Weighted-average shares used in per share calculation - diluted on non-GAAP basis

 

494

                       
 

(1) Non-GAAP adjustment for the 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. In addition, the non-GAAP adjustment includes the impact of Mandatory
Convertible Preferred Stock that is antidilutive on a GAAP basis for the fiscal year ended October 30, 2022.

(2) Excludes the effects of potential share repurchases.

           
           
           
           
           

 

BROADCOM INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(IN MILLIONS)

               
               
   

October 29,

 

October 30,

 
   

2023

 

2022

 
               

ASSETS

             
               

Current assets:

             

Cash and cash equivalents

 

$

14,189

 

$

12,416

 

Trade accounts receivable, net

   

3,154

   

2,958

 

Inventory

   

1,898

   

1,925

 

Other current assets

   

1,606

   

1,205

 

Total current assets

   

20,847

   

18,504

 
               

Long-term assets:

             

Property, plant and equipment, net

   

2,154

   

2,223

 

Goodwill

   

43,653

   

43,614

 

Intangible assets, net

   

3,867

   

7,111

 

Other long-term assets

   

2,340

   

1,797

 

Total assets

 

$

72,861

 

$

73,249

 
               
               

LIABILITIES AND EQUITY

             
               

Current liabilities:

             

Accounts payable

 

$

1,210

 

$

998

 

Employee compensation and benefits

   

935

   

1,202

 

Current portion of long-term debt

   

1,608

   

440

 

Other current liabilities

   

3,652

   

4,412

 

Total current liabilities

   

7,405

   

7,052

 
               

Long-term liabilities:

             

Long-term debt

   

37,621

   

39,075

 

Other long-term liabilities

   

3,847

   

4,413

 

Total liabilities

   

48,873

   

50,540

 
               

Stockholders' equity:

             

Preferred stock

   

-

   

-

 

Common stock

   

-

   

-

 

Additional paid-in capital

   

21,099

   

21,159

 

Retained earnings

   

2,682

   

1,604

 

Accumulated other comprehensive income (loss)

   

207

   

(54)

 

Total stockholders' equity

   

23,988

   

22,709

 

  Total liabilities and equity

 

$

72,861

 

$

73,249

 

 

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(IN MILLIONS)

                               
   

Fiscal Quarter Ended

 

Fiscal Year Ended

   

October 29,

 

July 30,

 

October 30,

 

October 29,

 

October 30,

   

2023

 

2023

 

2022

 

2023

 

2022

Cash flows from operating activities:

                             

Net income

 

$

3,524

 

$

3,303

 

$

3,359

 

$

14,082

 

$

11,495

Adjustments to reconcile net income to net cash provided by operating activities:

                           

Amortization of intangible and right-of-use assets

   

808

   

810

   

1,087

   

3,333

   

4,455

Depreciation

   

124

   

122

   

129

   

502

   

529

Stock-based compensation

   

638

   

629

   

387

   

2,171

   

1,533

Deferred taxes and other non-cash taxes

   

639

   

(251)

   

(89)

   

(501)

   

(34)

Loss on debt extinguishment

   

-

   

-

   

-

   

-

   

100

Non-cash interest expense

   

34

   

33

   

32

   

132

   

129

Other

   

27

   

-

   

31

   

9

   

183

Changes in assets and liabilities, net of acquisitions and disposals:

                             

  Trade accounts receivable, net

   

(231)

   

135

   

(241)

   

(187)

   

(870)

  Inventory

   

(56)

   

44

   

(87)

   

27

   

(627)

  Accounts payable

   

215

   

188

   

304

   

209

   

(79)

  Employee compensation and benefits

   

103

   

184

   

128

   

(279)

   

136

  Other current assets and current liabilities

   

(694)

   

(339)

   

(388)

   

(628)

   

222

  Other long-term assets and long-term liabilities

   

(303)

   

(139)

   

(69)

   

(785)

   

(436)

Net cash provided by operating activities

   

4,828

   

4,719

   

4,583

   

18,085

   

16,736

                               

Cash flows from investing activities:

                             

Acquisitions of businesses, net of cash acquired

   

(36)

   

(17)

   

(7)

   

(53)

   

(246)

Purchases of property, plant and equipment

   

(105)

   

(122)