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FINANCIAL NEWS RELEASE

Broadcom Inc. Announces Third Quarter Fiscal Year 2021 Financial Results and Quarterly Dividends
- Revenue of $6,778 million for the third quarter, up 16 percent from the prior year period
- GAAP net income of $1,876 million for the third quarter; Adjusted EBITDA of $4,123 million for the third quarter
- GAAP diluted EPS of $4.20 for the third quarter; Non-GAAP diluted EPS of $6.96 for the third quarter
- $3,426 million of free cash flow from operations for the third quarter, defined as cash from operations of $3,541 million less capital expenditures of $115 million
- Quarterly common stock dividend of $3.60 per share
- Fourth quarter revenue guidance of approximately $7.35 billion, an expected increase of 14 percent from the prior year period
- Fourth quarter Adjusted EBITDA guidance of approximately 61 percent of projected revenue(1)

SAN JOSE, Calif., Sept. 2, 2021 /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 third quarter of fiscal year 2021, ended August 1, 2021, provided guidance for the fourth quarter of its fiscal year 2021 and announced its quarterly dividends.

"Broadcom delivered record revenues in the third quarter reflecting our product and technology leadership across multiple secular growth markets in cloud, 5G infrastructure, broadband, and wireless," said Hock Tan, President and CEO of Broadcom Inc. "We are projecting the momentum to continue in the fourth quarter."

"Our business model continues to perform. Consolidated revenue grew 16% year-over-year to $6.8 billion and operating profit increased 24% with adjusted EBITDA margin a record 61%," said Kirsten Spears, CFO of Broadcom Inc. "We generated $3.4 billion in free cash flow or 51% of revenue in the quarter, and we expect free cash flow to remain strong in the fourth quarter."

 

Third Quarter Fiscal Year 2021 Financial Highlights

   

GAAP

 

Non-GAAP

(Dollars in millions, except per share data)

 

Q3 21

 

Q3 20

 

Change

 

Q3 21

 

Q3 20

 

Change

Net revenue

 

$

6,778

 

$

5,821

   

+16%

 

$

6,778

 

$

5,821

   

+16%

Net income

 

$

1,876

 

$

688

 

+$

1,188

 

$

3,124

 

$

2,435

 

+$

689

Earnings per common share - diluted

 

$

4.20

 

$

1.45

 

+$

2.75

 

$

6.96

 

$

5.40

 

+$

1.56

 

(Dollars in millions)

                     

Q3 21

 

Q3 20

 

Change

Cash flow from operations

                     

$

3,541

 

$

3,178

 

+$

363

Adjusted EBITDA

                     

$

4,123

 

$

3,342

 

+$

781

Free cash flow

                     

$

3,426

 

$

3,073

 

+$

353

 

Net revenue by segment

                                                   

(Dollars in millions)

                       

Q3 21

 

Q3 20

 

Change

Semiconductor solutions

                       

$

5,021

 

74%

 

$

4,219

 

72%

 

+19%

Infrastructure software

                         

1,757

 

26

   

1,602

 

28

 

+10%

   Total net revenue

                       

$

6,778

 

100%

 

$

5,821

 

100%

     

 

The Company's cash and cash equivalents at the end of the fiscal quarter were $11,105 million, compared to $9,518 million at the end of the prior quarter.

During the third fiscal quarter, the Company generated $3,541 million in cash from operations and spent $115 million on capital expenditures.

On June 30, 2021, the Company paid a cash dividend of $3.60 per share of common stock, totaling $1,482 million and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $74 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.

Fourth Quarter Fiscal Year 2021 Business Outlook

Based on current business trends and conditions, the outlook for the fourth quarter of fiscal year 2021, ending October 31, 2021, is expected to be as follows: 

  • Fourth quarter revenue guidance of approximately $7.35 billion; and
  • Fourth quarter Adjusted EBITDA guidance of approximately 61 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 on its common stock of $3.60 per share. The common stock dividend is payable on September 30, 2021 to common stockholders of record at the close of business (5:00 p.m. Eastern Time) on September 22, 2021.

The Company's Board of Directors has also approved a quarterly cash dividend on its 8.00% Mandatory Convertible Preferred Stock, Series A, of $20.00 per share. This dividend is payable on September 30, 2021 to preferred stockholders of record at the close of business (5:00 p.m. Eastern Time) on September 15, 2021.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the third quarter fiscal year 2021 and to discuss the business outlook, 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 1962853. 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: 1962853. A webcast of the conference call will also be available in the "Investors" section of Broadcom's website at https://www.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 revenue, 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, impairment and disposal charges, acquisition-related costs, including integration costs, purchase accounting effect on inventory, litigation settlements, loss on debt extinguishment, gains (losses) on investments, income (loss) from discontinued operations, 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 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, enterprise software, broadband, wireless, storage and industrial. Our solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation. For more information, go to https://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 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: the COVID-19 pandemic, which has disrupted, and will likely continue to disrupt, normal business activity, and which may have an adverse effect on our results of operations; 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; government regulations and administrative proceedings, trade restrictions and trade tensions; global economic conditions and concerns; global political and economic conditions; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; dependence on and risks associated with distributors and resellers of our products; dependence on senior management and our ability to attract and retain qualified personnel; any acquisitions we may make, 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; involvement in legal proceedings; quarterly and annual fluctuations in operating results; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; 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, warehouses 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; 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; market acceptance of the end products into which our products are designed; our ability to sell to new types of customers and to keep pace with technological advances; our compliance with privacy and data security laws; our ability to protect against a breach of security systems; fluctuations in foreign exchange rates; our provision for income taxes and 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. Many of the foregoing risks and uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. 

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
408-433-8000
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

 

Three Fiscal Quarters Ended

   

August 1,

 

May 2,

 

August 2,

 

August 1,

 

August 2,

   

2021

 

2021

 

2020

 

2021

 

2020

                               

Net revenue

 

$

6,778

 

$

6,610

 

$

5,821

 

$

20,043

 

$

17,421

Cost of revenue:

                             

Cost of revenue

   

1,729

   

1,699

   

1,537

   

5,242

   

4,765

Amortization of acquisition-related intangible assets

   

851

   

853

   

953

   

2,578

   

2,857

Restructuring charges

   

1

   

1

   

15

   

17

   

30

Total cost of revenue

   

2,581

   

2,553

   

2,505

   

7,837

   

7,652

Gross margin

   

4,197

   

4,057

   

3,316

   

12,206

   

9,769

Research and development

   

1,205

   

1,238

   

1,228

   

3,654

   

3,786

Selling, general and administrative

   

346

   

325

   

428

   

1,010

   

1,530

Amortization of acquisition-related intangible assets

   

494

   

494

   

600

   

1,482

   

1,802

Restructuring, impairment and disposal charges

   

26

   

25

   

52

   

122

   

163

Total operating expenses

   

2,071

   

2,082

   

2,308

   

6,268

   

7,281

Operating income

   

2,126

   

1,975

   

1,008

   

5,938

   

2,488

Interest expense

   

(415)

   

(466)

   

(464)

   

(1,451)

   

(1,357)

Other income (expense), net

   

15

   

(23)

   

49

   

109

   

175

Income from continuing operations before income taxes

   

1,726

   

1,486

   

593

   

4,596

   

1,306

Benefit from income taxes

   

(150)

   

(7)

   

(96)

   

(151)

   

(331)

Income from continuing operations

   

1,876

   

1,493

   

689

   

4,747

   

1,637

Loss from discontinued operations, net of income taxes

   

-

   

-

   

(1)

   

-

   

(1)

Net income

   

1,876

   

1,493

   

688

   

4,747

   

1,636

Dividends on preferred stock

   

(74)

   

(76)

   

(74)

   

(224)

   

(223)

Net income attributable to common stock

 

$

1,802

 

$

1,417

 

$

614

 

$

4,523

 

$

1,413

                               

Basic income per share attributable to common stock:

                             

Income per share from continuing operations

 

$

4.38

 

$

3.46

 

$

1.53

 

$

11.06

 

$

3.53

Loss per share from discontinued operations

   

-

   

-

   

(0.01)

   

-

   

(0.01)

Net income per share

 

$

4.38

 

$

3.46

 

$

1.52

 

$

11.06

 

$

3.52

                               

Diluted income per share attributable to common stock(1):

                             

Income per share from continuing operations

 

$

4.20

 

$

3.30

 

$

1.46

 

$

10.54

 

$

3.37

Loss per share from discontinued operations

   

-

   

-

   

(0.01)

   

-

   

(0.01)

Net income per share

 

$

4.20

 

$

3.30

 

$

1.45

 

$

10.54

 

$

3.36

                               

Weighted-average shares used in per share calculations:

                             

Basic

   

411

   

409

   

403

   

409

   

401

Diluted

   

429

   

429

   

422

   

429

   

420

                               

Stock-based compensation expense included in continuing operations:

                             

Cost of revenue

 

$

36

 

$

38

 

$

37

 

$

106

 

$

121

Research and development

   

285

   

307

   

337

   

920

   

1,101

Selling, general and administrative

   

100

   

80

   

91

   

264

   

305

Total stock-based compensation expense

 

$

421

 

$

425

 

$

465

 

$

1,290

 

$

1,527

                               
 

(1) Excludes the potentially dilutive effect of Mandatory Convertible Preferred Stock as the impact was antidilutive.

 

 

BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

                               
                               
   

Fiscal Quarter Ended

 

Three Fiscal Quarters Ended

   

August 1,

 

May 2,

 

August 2,

 

August 1,

 

August 2,

   

2021

 

2021

 

2020

 

2021

 

2020

                               

Gross margin on GAAP basis

 

$

4,197

 

$

4,057

 

$

3,316

 

$

12,206

 

$

9,769

Purchase accounting effect on inventory

   

-

   

-

   

-

   

-

   

11

Amortization of acquisition-related intangible assets

   

851

   

853

   

953

   

2,578

   

2,857

Stock-based compensation expense

   

36

   

38

   

37

   

106

   

121

Restructuring charges

   

1

   

1

   

15

   

17

   

30

Acquisition-related costs

   

3

   

3

   

-

   

9

   

6

Gross margin on non-GAAP basis

 

$

5,088

 

$

4,952

 

$

4,321

 

$

14,916

 

$

12,794

                               

Research and development on GAAP basis

 

$

1,205

 

$

1,238

 

$

1,228

 

$

3,654

 

$

3,786

Stock-based compensation expense

   

285

   

307

   

337

   

920

   

1,101

Acquisition-related costs

   

1

   

1

   

1

   

3

   

13

Research and development on non-GAAP basis

 

$

919

 

$

930

 

$

890

 

$

2,731

 

$

2,672

                               

Selling, general and administrative expense on GAAP basis

 

$

346

 

$

325

 

$

428

 

$

1,010

 

$

1,530

Stock-based compensation expense

   

100

   

80

   

91

   

264

   

305

Acquisition-related costs

   

22

   

25

   

66

   

88

   

336

Litigation settlements

   

1

   

-

   

21

   

1

   

63

Selling, general and administrative expense on non-GAAP basis

 

$

223

 

$

220

 

$

250

 

$

657

 

$

826

                               

Total operating expenses on GAAP basis

 

$

2,071

 

$

2,082

 

$

2,308

 

$

6,268

 

$

7,281

Amortization of acquisition-related intangible assets

   

494

   

494

   

600

   

1,482

   

1,802

Stock-based compensation expense

   

385

   

387

   

428

   

1,184

   

1,406

Restructuring, impairment and disposal charges

   

26

   

25

   

52

   

122

   

163

Litigation settlements

   

1

   

-

   

21

   

1

   

63

Acquisition-related costs

   

23

   

26

   

67

   

91

   

349

Total operating expenses on non-GAAP basis

 

$

1,142

 

$

1,150

 

$

1,140

 

$

3,388

 

$

3,498

                               

Operating income on GAAP basis

 

$

2,126

 

$

1,975

 

$

1,008

 

$

5,938

 

$

2,488

Purchase accounting effect on inventory

   

-

   

-

   

-

   

-

   

11

Amortization of acquisition-related intangible assets

   

1,345

   

1,347

   

1,553

   

4,060

   

4,659

Stock-based compensation expense

   

421

   

425

   

465

   

1,290

   

1,527

Restructuring, impairment and disposal charges

   

27

   

26

   

67

   

139

   

193

Litigation settlements

   

1

   

-

   

21

   

1

   

63

Acquisition-related costs

   

26

   

29

   

67

   

100

   

355

Operating income on non-GAAP basis

 

$

3,946

 

$

3,802

 

$

3,181

 

$

11,528

 

$

9,296

                               

Interest expense on GAAP basis

 

$

(415)

 

$

(466)

 

$

(464)

 

$

(1,451)

 

$

(1,357)

Loss on debt extinguishment

   

-

   

50

   

55

   

222

   

153

Interest expense on non-GAAP basis

 

$

(415)

 

$

(416)

 

$

(409)

 

$

(1,229)

 

$

(1,204)

                               

Other income (expense), net on GAAP basis

 

$

15

 

$

(23)

 

$

49

 

$

109

 

$

175

Gain from lapse of indemnification

   

-

   

-

   

-

   

-

   

(116)

(Gains) losses on investments

   

4

   

25

   

(31)

   

(90)

   

(21)

Gain from sale of business

   

-

   

-

   

(23)

   

-

   

(23)

Acquisition-related gain

   

-

   

(1)

   

-

   

(3)

   

(7)

Other income (expense), net on non-GAAP basis

 

$

19

 

$

1

 

$

(5)

 

$

16

 

$

8

                               

Benefit from income taxes on GAAP basis

 

$

(150)

 

$

(7)

 

$

(96)

 

$

(151)

 

$

(331)

Non-GAAP tax reconciling adjustments

   

576

   

414

   

428

   

1,389

   

1,303

Provision for income taxes on non-GAAP basis

 

$

426

 

$

407

 

$

332

 

$

1,238

 

$

972

                               

Net income on GAAP basis

 

$

1,876

 

$

1,493

 

$

688

 

$

4,747

 

$

1,636

Purchase accounting effect on inventory

   

-

   

-

   

-

   

-

   

11

Amortization of acquisition-related intangible assets

   

1,345

   

1,347

   

1,553

   

4,060

   

4,659

Stock-based compensation expense

   

421

   

425

   

465

   

1,290

   

1,527

Restructuring, impairment and disposal charges

   

27

   

26

   

67

   

139

   

193

Litigation settlements

   

1

   

-

   

21

   

1

   

63

Acquisition-related costs

   

26

   

28

   

67

   

97

   

348

Loss on debt extinguishment

   

-

   

50

   

55

   

222

   

153

Gain from lapse of indemnification

   

-

   

-

   

-

   

-

   

(116)

(Gains) losses on investments

   

4

   

25

   

(31)

   

(90)

   

(21)

Gain from sale of business

   

-

   

-

   

(23)

   

-

   

(23)

Non-GAAP tax reconciling adjustments

   

(576)

   

(414)

   

(428)

   

(1,389)

   

(1,303)

Loss from discontinued operations, net of income taxes

   

-

   

-

   

1

   

-

   

1

Net income on non-GAAP basis

 

$

3,124

 

$

2,980

 

$

2,435

 

$

9,077

 

$

7,128

                               
                               

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

   

429

   

429

   

422

   

429

   

420

Non-GAAP adjustment (1)

   

20

   

21

   

29

   

20

   

32

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

 

449

   

450

   

451

   

449

   

452

                               
                               

Net income on non-GAAP basis

 

$

3,124

 

$

2,980

 

$

2,435

 

$

9,077

 

$

7,128

Interest expense on non-GAAP basis

   

415

   

416

   

409

   

1,229

   

1,204

Provision for income taxes on non-GAAP basis

   

426

   

407

   

332

   

1,238

   

972

Depreciation

   

134

   

133

   

138

   

405

   

431

Amortization of purchased intangibles and right-of-use assets

   

24

   

24

   

28

   

75

   

81

Adjusted EBITDA

 

$

4,123

 

$

3,960

 

$

3,342

 

$

12,024

 

$

9,816

                               

Net cash provided by operating activities

 

$

3,541

 

$

3,569

 

$

3,178

 

$

10,223

 

$

8,713

Purchases of property, plant and equipment

   

(115)

   

(126)

   

(105)

   

(355)

   

(361)

Free cash flow

 

$

3,426

 

$

3,443

 

$

3,073

 

$

9,868

 

$

8,352

                               
                               
   

 Fiscal Quarter
Ending 

                       
   

October 31,

                       

Expected average diluted share count:

 

2021

                       
                               

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

 

429

                       

Non-GAAP adjustment (1)

 

19

                       

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

448

                       
                               

(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 quarter ending October 31, 2021, the non-GAAP adjustment includes the impact of Mandatory Convertible Preferred Stock that is expected to be antidilutive on a GAAP basis.

 

BROADCOM INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(IN MILLIONS)

               
               
   

August 1,

 

November 1,

 
   

2021

 

2020

 
               

ASSETS

             
               

Current assets:

             

Cash and cash equivalents

 

$

11,105

 

$

7,618

 

Trade accounts receivable, net

   

2,234

   

2,297

 

Inventory

   

1,160

   

1,003

 

Other current assets

   

1,137

   

977

 

Total current assets

   

15,636

   

11,895

 
               

Long-term assets:

             

Property, plant and equipment, net

   

2,370

   

2,509

 

Goodwill

   

43,457

   

43,447

 

Intangible assets, net

   

12,719

   

16,782

 

Other long-term assets

   

1,698

   

1,300

 

Total assets

 

$

75,880

 

$

75,933

 
               
               

LIABILITIES AND EQUITY

             
               

Current liabilities:

             

Accounts payable

 

$

968

 

$

836

 

Employee compensation and benefits

   

893

   

877

 

Current portion of long-term debt

   

279

   

827

 

Other current liabilities

   

4,361

   

3,831

 

Total current liabilities

   

6,501

   

6,371

 
               

Long-term liabilities:

             

Long-term debt

   

40,178

   

40,235

 

Other long-term liabilities

   

4,834

   

5,426

 

Total liabilities

   

51,513

   

52,032

 
               

Preferred stock dividend obligation

   

27

   

27

 
               

Stockholders' equity:

             

Preferred stock

   

-

   

-

 

Common stock

   

-

   

-

 

Additional paid-in capital

   

24,126

   

23,982

 

Retained earnings

   

320

   

-

 

Accumulated other comprehensive loss

   

(106)

   

(108)

 

Total stockholders' equity

   

24,340

   

23,874

 

  Total liabilities and equity

 

$

75,880

 

$

75,933

 

 

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(IN MILLIONS)

                               
   

Fiscal Quarter Ended

 

Three Fiscal Quarters Ended

   

August 1,

 

May 2,

 

August 2,

 

August 1,

 

August 2,

   

2021

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities:

                             

Net income

 

$

1,876

 

$

1,493

 

$

688

 

$

4,747

 

$

1,636

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

                             

Amortization of intangible and right-of-use assets

   

1,369

   

1,371

   

1,581

   

4,135

   

4,746

Depreciation

   

134

   

133

   

138

   

405

   

431

Stock-based compensation

   

421

   

425

   

465

   

1,290

   

1,527

Deferred taxes and other non-cash taxes

   

(436)

   

(177)

   

(436)

   

(762)

   

(683)

Loss on debt extinguishment

   

-

   

26

   

55

   

198

   

153

(Gains) losses on investments

   

4

   

25

   

-

   

(90)

   

-

Non-cash restructuring, impairment and disposal charges

   

8

   

12

   

15

   

35

   

32

Non-cash interest expense

   

24

   

21

   

22

   

67

   

83

Other

   

-

   

(3)

   

(54)

   

(8)

   

(43)

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

                             

  Trade accounts receivable, net

   

191

   

106

   

542

   

50

   

590

  Inventory

   

(156)

   

(52)

   

(128)

   

(157)

   

(98)

  Accounts payable

   

156

   

(58)

   

(123)

   

142

   

227

  Employee compensation and benefits

   

254

   

135

   

231

   

14

   

75

  Other current assets and current liabilities

   

(227)

   

182

   

(2)

   

363

   

462

  Other long-term assets and long-term liabilities

   

(77)

   

(70)

   

184

   

(206)

   

(425)

Net cash provided by operating activities

   

3,541

   

3,569

   

3,178

   

10,223

   

8,713

                               

Cash flows from investing activities:

                             

Acquisitions of businesses, net of cash acquired

   

-

   

-

   

(2)

   

(8)

   

(10,872)

Proceeds from sales of businesses

   

-

   

-

   

50

   

-

   

218

Purchases of property, plant and equipment

   

(115)

   

(126)

   

(105)

   

(355)

   

(361)

Proceeds from disposals of property, plant and equipment

   

1

   

3

   

10

   

4

   

10

Proceeds from sale of investment

   

67

   

-

   

-

   

67

   

-

Other

   

-

   

(3)

   

1

   

(3)

   

(4)

Net cash used in investing activities

   

(47)

   

(126)

   

(46)

   

(295)

   

(11,009)

                               

Cash flows from financing activities:

                             

Proceeds from long-term borrowings

   

-

   

-

   

7,953

   

9,904

   

27,802

Payments on debt obligations

   

-

   

(1,533)

   

(6,825)

   

(10,733)

   

(15,814)

Other borrowings, net

   

-

   

-

   

(3,028)

   

-

   

(1,285)

Payments of dividends

   

(1,556)

   

(1,552)

   

(1,386)

   

(4,651)

   

(4,139)

Shares repurchased for tax withholdings on vesting of equity awards

   

(347)

   

(461)

   

(192)

   

(1,033)

   

(580)

Issuance of common stock

   

7

   

71

   

46

   

113

   

174

Other

   

(11)

   

(2)

   

(50)

   

(41)

   

(60)

Net cash provided by (used in) financing activities

   

(1,907)

   

(3,477)

   

(3,482)

   

(6,441)

   

6,098

                               

Net change in cash and cash equivalents

   

1,587

   

(34)

   

(350)

   

3,487

   

3,802

Cash and cash equivalents at beginning of period

   

9,518

   

9,552

   

9,207

   

7,618

   

5,055

Cash and cash equivalents at end of period

 

$

11,105

 

$

9,518

 

$

8,857

 

$

11,105

 

$

8,857

                               

Supplemental disclosure of cash flow information:

                             

Cash paid for interest

 

$

253

 

$

369

 

$

269

 

$

994

 

$

1,025

Cash paid for income taxes

 

$

167

 

$

293

 

$

44

 

$

607

 

$

299

 

Cision View original content:https://www.prnewswire.com/news-releases/broadcom-inc-announces-third-quarter-fiscal-year-2021-financial-results-and-quarterly-dividends-301368766.html

SOURCE Broadcom Inc.